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Section 1: 8-K (8-K)

Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.   20549
__________________
 
FORM 8-K
__________________
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
 
Date of Report (date of earliest event reported): January 17, 2019
__________________
 
Bryn Mawr Bank Corporation
(Exact Name of Registrant as specified in its charter) 

__________________
 
Pennsylvania
001-35746
23-2434506
(State or other jurisdiction
(Commission File Number)
(I.R.S. Employer
of incorporation)
 
Identification No.) 
 
801 Lancaster Avenue, Bryn Mawr, PA   19010
 
Registrant's telephone number, including area code: 610-525-1700
 
None
(Former name or former address, if changed since last report)
 
__________________
 
Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
 
Emerging growth company      ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02 Results of Operations and Financial Condition.
 
On January 17, 2019, Bryn Mawr Bank Corporation (the “Corporation”), the parent of The Bryn Mawr Trust Company, issued a Press Release announcing the results of operations for the quarter ended December 31, 2018. The Press Release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
 
The information furnished in this Item 2.02, including Exhibit 99.1 attached hereto and incorporated by reference herein, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including such Exhibit, shall not be deemed incorporated by reference into any of the Corporation’s reports or filings with the Securities and Exchange Commission, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing.

Item 9.01. Financial Statements and Exhibits
 
(d) Exhibit 99.1 – Press Release announcing the results of operations for the quarter ended December 31, 2018



SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
 
BRYN MAWR BANK CORPORATION
 
 
 
 
 
 
By:
/s/ Michael W. Harrington
 
 
 
Michael W. Harrington
 
 
 
Chief Financial Officer
 
               
 
Date:     January 18, 2019







EXHIBIT INDEX
 
Exhibit 99.1


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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1
396413749_bmtclogoa01.jpg
FOR RELEASE: IMMEDIATELY
 
Frank Leto, President, CEO
FOR MORE INFORMATION CONTACT:
 
610-581-4730
 
 
Mike Harrington, CFO
 
 
610-526-2466

Bryn Mawr Bank Corporation Reports
Record Quarterly Earnings of $17.1 Million
and Record Annual Earnings of $63.8 Million
in First Full Fiscal Year with Royal Bank,
Declares $0.25 Dividend

BRYN MAWR, Pa., January 17, 2019 - Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $17.1 million, or $0.84 diluted earnings per share for the three months ended December 31, 2018, as compared to net income of $16.7 million, or $0.82 diluted earnings per share, for the three months ended September 30, 2018, and a net loss of $6.2 million, or ($0.35) diluted earnings per share, for the three months ended December 31, 2017.

On a non-GAAP basis, core net income, which excludes Tax Cuts and Jobs Act ("Tax Reform") related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $17.2 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, as compared to $17.1 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2018, and $11.3 million, or $0.63 diluted earnings per share, for the three months ended December 31, 2017. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We were pleased to conclude 2018 on a positive note, with fourth quarter and annual net income reaching all-time highs,” commented Frank Leto, President and Chief Executive Officer, continuing, “Contributions from our Royal Bank acquisition, continued momentum in our wealth division and capital markets area, and solid organic growth are reflected in our year-end results. During 2018 and early 2019 we have welcomed several key additions to our senior leadership team. The depth of knowledge and innovative ideas these new team members bring to BMT will enhance our customer experience, bring greater efficiencies to existing business processes and have us well positioned to execute our strategy as we enter 2019.”

The Board of Directors of the Corporation declared a quarterly dividend of $0.25 per share, payable March 1, 2019 to shareholders of record as of February 1, 2019.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Fourth Quarter 2018 Compared to Third Quarter 2018

Net income for the three months ended December 31, 2018 was $17.1 million, as compared to net income of $16.7 million for the three months ended September 30, 2018. Net interest income for the three months ended December 31, 2018 was $38.0 million, an increase of $1.3 million over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended December 31, 2018 increased $1.7 million as compared to the third quarter of 2018. Total noninterest income decreased $177 thousand, total noninterest

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expense increased $1.3 million, and income tax expense decreased $2.3 million for the three months ended December 31, 2018, as compared to the three months ended September 30, 2018.

On a non-GAAP basis, core net income, which excludes Tax Reform related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $17.2 million, or $0.84 per diluted share, for the three months ended December 31, 2018, as compared to $17.1 million or $0.84 per diluted share, for the three months ended September 30, 2018. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

Net interest income for the three months ended December 31, 2018 was $38.0 million, an increase of $1.3 million over the linked quarter. Items contributing to the increase included increases of $2.1 million and $228 thousand in interest and fees on loans and leases and interest on investment securities, respectively, and a decrease of $415 thousand in interest expense on short-term borrowings, partially offset by a $1.5 million increase in interest on deposits for the three months ended December 31, 2018 as compared to the linked quarter ended September 30, 2018.

Tax-equivalent net interest income for the three months ended December 31, 2018 was $38.1 million, an increase of $1.3 million over the linked quarter. Tax-equivalent net interest income for the fourth quarter 2018 was positively impacted by the accretion of purchase accounting fair value marks of $2.7 million as compared to $1.7 million for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended December 31, 2018 was $35.4 million, an increase of $269 thousand over the linked quarter.

Tax-equivalent interest and fees on loans and leases for the three months ended December 31, 2018 increased $2.1 million over the linked quarter. Average loans and leases for the three months ended December 31, 2018 increased $19.8 million over the linked quarter and experienced a 21 basis point increase in tax-equivalent yield.

Tax-equivalent interest income on available for sale investment securities increased $156 thousand for the fourth quarter of 2018 as compared to the linked quarter. Average available for sale investment securities increased by $6.9 million over the linked quarter and experienced an eight basis point tax-equivalent yield increase.

Interest expense on deposits for the three months ended December 31, 2018 increased $1.5 million over the linked quarter. Average interest-bearing deposits increased $109.2 million coupled with a 19 basis point increase in the rate paid on deposits as compared to the linked quarter.

Interest expense on short-term borrowings for the three months ended December 31, 2018 decreased $415 thousand over the linked quarter primarily due to a $79.8 million decrease in average short-term borrowings for the three months ended December 31, 2018 as compared to the linked quarter.

The tax-equivalent net interest margin was 3.79% for the three months ended December 31, 2018 as compared to 3.69% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.52% for both the three months ended December 31, 2018 and the linked quarter.

Noninterest income of $18.1 million for the three months ended December 31, 2018 decreased $177 thousand as compared to the linked quarter. Contributing to the decrease was a decrease in other operating income of $2.2 million partially offset by increases of $975 thousand, $674 thousand, and $657 thousand in net gain on sale of loans, fees for wealth management services and capital markets revenue, respectively. The $2.2 million decrease in other operating income was primarily due to an $859 thousand loss on trading securities recorded in the fourth quarter of 2018 due to market fluctuations affecting the Corporation's executive and director supplemental retirement plan assets. Recoveries of purchase accounting fair value marks resulting from pay-offs of previously acquired credit impaired loans decreased $1.1 million over the linked quarter.

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Noninterest expense of $34.8 million for the three months ended December 31, 2018 increased $1.2 million as compared to $33.6 million for the third quarter of 2018. The increase on a linked quarter basis was primarily due to increases of $1.4 million, $529 thousand, $418 thousand, and $300 thousand in salaries and wages, professional fees, occupancy and bank premises expenses and furniture, fixtures and equipment expense, respectively, partially offset by decreases of $1.1 million, $389 thousand, and $379 thousand in other operating expenses, due diligence, merger-related and merger integration expenses and employee benefits, respectively. The linked quarter increase in salaries and wages expense was largely driven by recruiting efforts of certain key leadership positions and increases in our incentive accruals which, combined, approximated $1.3 million for the fourth quarter of 2018.

The Provision increased $1.7 million for the three months ended December 31, 2018 to $2.4 million, as compared the third quarter of 2018. During the third quarter of 2018, the effect of sustained improving qualitative factors associated with the economy resulted in a decrease in the needed allowance for loan and leases losses (the “Allowance”) and reduced the Provision recorded in the third quarter of 2018. During the fourth quarter of 2018, the additional Allowance was primarily associated with the increased loan volume. Net loan and lease charge-offs for the fourth quarter of 2018 totaled $1.6 million, as compared to $1.4 million for the third quarter of 2018. Nonperforming loans and leases as of December 31, 2018 totaled $12.8 million, an increase of $3.8 million from September 30, 2018. The increase in nonperforming loans was comprised primarily of real estate collateralized loans for which management performs an impairment analysis. All nonperforming loans are carried at their net realizable value.

The effective tax rate for the fourth quarter of 2018 decreased to 9.3% from 19.6% for the third quarter of 2018. The decrease in the effective tax rate was primarily due to a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return that was filed during the fourth quarter of 2018. The effective tax rate for the year ended December 31, 2018 excluding discrete income tax benefits was 21.7%.

Results of Operations – Fourth Quarter 2018 Compared to Fourth Quarter 2017

Net income for the three months ended December 31, 2018 was $17.1 million, or $0.84 diluted earnings per share, as compared to a net loss of $6.2 million, or diluted earnings per share of ($0.35) for the same period in 2017. The $23.3 million increase was primarily due to an $18.2 million decrease in income tax expense. Contributing to the decrease in income tax expense was the absence of the $15.2 million one-time income tax charge related to the re-measurement of the Corporation’s net deferred tax asset, triggered by Tax Reform, during the fourth quarter of 2017, and a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return that was filed during the fourth quarter of 2018.

Also contributing to the net income increase were increases of $6.4 million and $2.6 million in net interest income after Provision and noninterest income, respectively, partially offset by a $3.8 million increase in noninterest expense.

On a non-GAAP basis, core net income, which excludes Tax Reform related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $17.2 million, or $0.84 per diluted share, for the three months ended December 31, 2018 as compared to $11.3 million, or $0.63 per diluted share, for the same period in 2017. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

Net interest income for the three months ended December 31, 2018 was $38.0 million, an increase of $7.7 million as compared to the same period in 2017. Items contributing to the increase included increases of $11.9 million and $778 thousand in interest and fees on loans and leases and interest on investment securities, respectively, partially offset by increases of $4.3 million and $627 thousand in interest on deposits and interest on subordinated notes for the three months ended December 31, 2018 as compared to the same period in 2017.


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Tax-equivalent net interest income for the three months ended December 31, 2018 was $38.1 million, an increase of $7.6 million as compared to the same period in 2017. Tax-equivalent net interest income for the fourth quarter 2018 was positively impacted by the accretion of purchase accounting fair value marks of $2.7 million as compared to $320 thousand for the same period in 2017. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended December 31, 2018 was $35.4 million, an increase of $5.2 million as compared to the same period in 2017.

Tax-equivalent interest and fees on loans and leases increased $11.9 million for the three months ended December 31, 2018 as compared to the same period in 2017. Average loans and leases for the fourth quarter of 2018 increased $594.2 million from the same period in 2017 and experienced a 59 basis point increase in tax-equivalent yield. The increase in average loans and leases was primarily related to the loans and leases acquired in the merger with Royal Bancshares of Pennsylvania, Inc. (the “Royal Bank merger”) in December 2017 which initially increased loans and leases by $566.2 million, as well as organic loan growth between the periods.

Average available for sale investment securities increased by $49.3 million for the three months ended December 31, 2018 as compared to the same period in 2017 and experienced a 31 basis point tax-equivalent yield increase. The increase in average balances and yield on available for sale investment securities resulted in a $678 thousand increase in tax-equivalent interest income on available for sale investment securities for the fourth quarter of 2018 as compared to the same period in 2017.

Partially offsetting the effect on net interest income associated with the increase in average loans and leases and available for sale investment securities was a $4.3 million increase in interest expense on deposits for the three months ended December 31, 2018 as compared to the same period in 2017. Average interest-bearing deposits increased by $571.2 million, coupled with a 54 basis point increase in rate paid for the fourth quarter of 2018 as compared to the same period in 2017. The increase in average interest-bearing deposits for the fourth quarter of 2018 as compared to the same period in 2017 was largely related to the interest-bearing deposits assumed in the Royal Bank merger, which initially totaled $494.8 million.

In addition to the increased interest expense on deposits, interest expense on subordinated debt and junior subordinated debt increased $627 thousand and $296 thousand, respectively, for the three months ended December 31, 2018 as compared to the same period in 2017. Average subordinated notes for the three months ended December 31, 2018 increased $54.7 million as compared to the same period in 2017 with the rate paid decreasing by eight basis points to 4.61% for the three months ended December 31, 2018. The volume increase in subordinated notes was the result of the December 13, 2017 issuance of $70 million ten-year, 4.25% fixed-to-floating subordinated notes. Average junior subordinated debentures for the three months ended December 31, 2018 increased $17.6 million as compared to the same period in 2017 as the Corporation acquired $21.4 million of floating rate junior subordinated debentures, currently at a 6.30% rate, in the Royal Bank merger.

The tax-equivalent net interest margin was 3.79% for the three months ended December 31, 2018 as compared to 3.62% for the same period in 2017. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.52% and 3.58% for three months ended December 31, 2018 and 2017, respectively.

Noninterest income of $18.1 million for the three months ended December 31, 2018 increased by $2.6 million as compared to the same period in 2017. Contributing to this increase were increases of $1.1 million, $1.0 million, and $767 thousand in net gain on sale of loans, fees for wealth management services and capital markets revenue, respectively. The increase in fees for wealth management services related to the $460.8 million increase in wealth assets under management, administration, supervision and brokerage between December 31, 2018 and December 31, 2017. Partially offsetting the increase in noninterest income was a decrease of $539 thousand in other operating income which was primarily due to an $859 thousand loss on trading securities recorded in the fourth quarter of 2018 due to market fluctuations affecting the Corporation's executive and director supplemental retirement plan assets.




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Noninterest expense of $34.8 million for the three months ended December 31, 2018 increased $3.8 million as compared to the same period in 2017. Contributing to the $3.8 million increase were increases of $4.3 million, $757 thousand, $554 thousand, and $487 thousand in salaries and wages, professional fees, furniture, fixtures and equipment expense and occupancy and bank premises expenses, respectively. A majority of these increases were related to the additional expenses associated with the staff and facilities assumed in the Royal Bank merger. Partially offsetting the increase in noninterest expense were decreases of $3.5 million and $425 thousand in due diligence, merger-related and merger integration expenses and other operating expenses, respectively, for the three months ended December 31, 2018 as compared to the same period in 2017.

The Provision increased $1.3 million for the three months ended December 31, 2018 to $2.4 million, as compared the same period in 2017. The primary contributors to the increased Provision were the $1.1 million increase in charge-offs for the fourth quarter of 2018 as compared to the same period in 2017 as well as the additional Allowance associated with the increased loan volume. Net loan and lease charge-offs for the fourth quarter of 2018 were $1.6 million as compared to $556 thousand for the same period in 2017. Nonperforming loans and leases as of December 31, 2018 totaled $12.8 million, an increase of $4.2 million from December 31, 2017. The increase in nonperforming loans was comprised primarily of real estate collateralized loans for which management performs an impairment analysis. All nonperforming loans are carried at their net realizable value.

The effective tax rate for the fourth quarter of 2018 decreased significantly as compared to the fourth quarter of 2017. The decrease in effective tax rate was primarily related to the $15.2 million one-time income tax charge related to the re-measurement of the Corporation’s net deferred tax asset, triggered by Tax Reform, during the fourth quarter of 2017, and a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return that was filed during the fourth quarter of 2018. The effective tax rates for the years-ended December 31, 2018 and 2017 excluding discrete income tax benefits were 21.7% and 35.1%, respectively.

Financial Condition – December 31, 2018 Compared to December 31, 2017

Total assets as of December 31, 2018 were $4.65 billion, an increase of $202.8 million from December 31, 2017. The increase is primarily due to the increases in portfolio loans and leases and available for sale investment securities discussed in the bullet points below.

Available for sale investment securities as of December 31, 2018 totaled $737.4 million, an increase of $48.2 million from December 31, 2017. Increases of $44.8 million, $14.9 million, and $2.6 million in U.S. government and agency securities, mortgage-backed securities, and collateralized mortgage obligations, respectively, were partially offset by decreases of $10.0 million and $3.5 million in state & political subdivision securities and other investments, respectively.

Total portfolio loans and leases of $3.43 billion as of December 31, 2018 increased by $141.3 million from December 31, 2017, an increase of 4.3%. Increases of $134.1 million, $35.5 million, $29.1 million and $8.7 million in commercial mortgages, residential mortgages, leases and consumer loans, respectively, were offset by decreases of $31.4 million, $23.7 million and $10.9 million in construction loans, commercial and industrial loans and home equity loans and lines, respectively.

The Allowance as of December 31, 2018 was $19.4 million, or 0.57% of portfolio loans and leases, as compared to $17.5 million, or 0.53% of portfolio loans and leases as of December 31, 2017. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.67% as of December 31, 2018, as compared to 0.70% as of December 31, 2017, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.08% as of December 31, 2018, as compared to 1.58% as of December 31, 2017. The 50 basis point decrease in the Allowance plus the remaining loan mark as a percentage of gross loans non-GAAP measure is primarily related to the decrease in the remaining loan mark from $34.8 million as of December 31, 2017 to $17.8 million as of December 31, 2018 coupled with the increase in portfolio loans between the respective dates. The decrease in the remaining loan mark was primarily attributable to normal amortization and accelerated amortization related to pre-payments. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

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Deposits of $3.60 billion as of December 31, 2018 increased $225.3 million from December 31, 2017. Increases of $183.4 million, $153.3 million, and $10.5 million in interest-bearing demand accounts, wholesale time deposits, and retail time deposits, respectively, were partially offset by decreases of $91.5 million, $23.2 million, and $7.2 million in savings accounts, noninterest-bearing demand accounts, and wholesale non-maturity deposits, respectively.

Borrowings of $427.8 million as of December 31, 2018, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $69.0 million from December 31, 2017. The decrease was comprised of an $83.8 million decrease in long-term FHLB advances, partially offset by a $14.5 million increase in short-term borrowings.

Wealth assets under management, administration, supervision and brokerage totaled $13.43 billion as of December 31, 2018, an increase of $460.8 million from December 31, 2017.

The capital ratios for the Bank and the Corporation, as of December 31, 2018, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.”

During 2018, in accordance with the 2015 Stock Repurchase Plan, 149,284 shares of the Corporation’s common stock were repurchased at an average price of $39.76.  All share repurchases were accomplished in open market transactions.


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

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

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

# # # #

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Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)


 
As of or For the Three Months Ended
 
For the Twelve Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
Consolidated Balance Sheet (selected items)
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits with banks
$
34,357

 
$
35,233

 
$
39,924

 
$
24,589

 
$
48,367

 
 
 
 
Investment securities
753,628

 
545,320

 
547,088

 
550,199

 
701,744

 
 
 
 
Loans held for sale
1,749

 
4,111

 
4,204

 
5,522

 
3,794

 
 
 
 
Portfolio loans and leases
3,427,154

 
3,381,475

 
3,389,501

 
3,305,795

 
3,285,858

 
 
 
 
Allowance for loan and lease losses ("ALLL")
(19,426
)
 
(18,684
)
 
(19,398
)
 
(17,662
)
 
(17,525
)
 
 
 
 
Goodwill and other intangible assets
207,467

 
208,165

 
208,139

 
207,287

 
205,855

 
 
 
 
Total assets
4,652,485

 
4,388,442

 
4,394,203

 
4,300,376

 
4,449,720

 
 
 
 
Deposits - interest-bearing
2,697,468

 
2,522,863

 
2,466,529

 
2,452,421

 
2,448,954

 
 
 
 
Deposits - non-interest-bearing
901,619

 
834,363

 
892,386

 
863,118

 
924,844

 
 
 
 
Short-term borrowings
252,367

 
226,498

 
227,059

 
173,704

 
237,865

 
 
 
 
Long-term FHLB advances
55,374

 
72,841

 
87,808

 
107,784

 
139,140

 
 
 
 
Subordinated notes
98,526

 
98,482

 
98,491

 
98,448

 
98,416

 
 
 
 
Jr. subordinated debentures
21,580

 
21,538

 
21,497

 
21,456

 
21,416

 
 
 
 
Total liabilities
4,087,781

 
3,837,017

 
3,851,700

 
3,767,315

 
3,921,601

 
 
 
 
Total shareholders' equity
564,704

 
551,425

 
542,503

 
533,061

 
528,119

 
 
 
 
Average Balance Sheet (selected items)
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits with banks
38,957

 
37,467

 
37,215

 
38,044

 
43,962

 
37,550

 
34,122

Investment securities
554,265

 
546,998

 
549,249

 
535,471

 
499,968

 
546,549

 
446,681

Loans held for sale
2,005

 
4,932

 
4,413

 
2,848

 
3,966

 
3,551

 
3,945

Portfolio loans and leases
3,397,479

 
3,374,767

 
3,348,926

 
3,288,364

 
2,801,289

 
3,352,744

 
2,660,999

Total interest-earning assets
3,992,706

 
3,964,164

 
3,939,803

 
3,864,727

 
3,349,185

 
3,940,394

 
3,145,747

Goodwill and intangible assets
207,893

 
207,880

 
208,039

 
205,529

 
142,652

 
207,343

 
130,791

Total assets
4,413,000

 
4,376,148

 
4,344,541

 
4,246,180

 
3,640,667

 
4,352,122

 
3,416,146

Deposits - interest-bearing
2,602,412

 
2,493,213

 
2,489,296

 
2,435,491

 
2,031,170

 
2,506,557

 
1,902,536

Short-term borrowings
128,429

 
208,201

 
205,323

 
172,534

 
180,650

 
178,582

 
128,008

Long-term FHLB advances
67,363

 
81,460

 
102,023

 
123,920

 
134,605

 
93,503

 
161,004

Subordinated notes
98,497

 
98,457

 
98,463

 
98,430

 
43,844

 
98,462

 
33,153

Jr. subordinated debentures
21,553

 
21,511

 
21,470

 
21,430

 
3,957

 
21,491

 
997

Total interest-bearing liabilities
2,918,254

 
2,902,842

 
2,916,575

 
2,851,805

 
2,394,226

 
2,898,595

 
2,225,698

Total liabilities
3,856,694

 
3,828,241

 
3,810,640

 
3,719,746

 
3,213,349

 
3,810,537

 
3,016,876

Total shareholders' equity
556,306

 
547,907

 
533,901

 
526,434

 
427,318

 
541,585

 
399,270



8

Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)

 
As of or For the Three Months Ended
 
For the Twelve Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
37,987

 
$
36,729

 
$
37,316

 
$
37,439

 
$
30,321

 
$
149,471

 
$
115,127

Provision for loan and lease losses
2,362

 
664

 
3,137

 
1,030

 
1,077

 
7,193

 
2,618

Noninterest income
18,097

 
18,274

 
20,075

 
19,536

 
15,536

 
75,982

 
59,132

Noninterest expense
34,845

 
33,592

 
35,836

 
36,030

 
31,056

 
140,303

 
114,395

Income tax expense
1,746

 
4,066

 
3,723

 
4,630

 
19,924

 
14,165

 
34,230

Net income
17,131

 
16,681

 
14,695

 
15,285

 
(6,200
)
 
63,792

 
23,016

Net (loss) income attributable to noncontrolling interest
(5
)
 
(1
)
 
7

 
(1
)
 

 

 

Net income (loss) attributable to Bryn Mawr Bank Corporation
17,136

 
16,682

 
14,688

 
15,286

 
(6,200
)
 
63,792

 
23,016

Basic earnings (loss) per share
0.85

 
0.82

 
0.73

 
0.76

 
(0.35
)
 
3.15

 
1.34

Diluted earnings (loss) per share
0.84

 
0.82

 
0.72

 
0.75

 
(0.35
)
 
3.13

 
1.32

Net income (core) (1)
17,167

 
17,140

 
17,031

 
19,282

 
11,255

 
70,620

 
42,111

Basic earnings per share (core) (1)
0.85

 
0.85

 
0.84

 
0.95

 
0.64

 
3.49

 
2.46

Diluted earnings per share (core) (1)
0.84

 
0.84

 
0.83

 
0.94

 
0.63

 
3.46

 
2.42

Dividends paid or accrued per share
0.25

 
0.25

 
0.22

 
0.22

 
0.22

 
0.94

 
0.86

Profitability Indicators
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.54
%
 
1.51
%
 
1.36
%
 
1.46
%
 
(0.68
)%
 
1.47
%
 
0.67
%
Return on average equity
12.22
%
 
12.08
%
 
11.03
%
 
11.78
%
 
(5.76
)%
 
11.78
%
 
5.76
%
Return on tangible equity(1)
20.37
%
 
20.25
%
 
18.90
%
 
20.15
%
 
(8.02
)%
 
19.91
%
 
9.23
%
Return on tangible equity (core)(1)
20.40
%
 
20.78
%
 
21.78
%
 
25.19
%
 
16.29
 %
 
21.95
%
 
21.86
%
Return on average assets (core)(1)
1.54
%
 
1.55
%
 
1.57
%
 
1.84
%
 
1.23
 %
 
1.62
%
 
1.23
%
Return on average equity (core)(1)
12.24
%
 
12.41
%
 
12.79
%
 
14.85
%
 
10.45
 %
 
13.04
%
 
10.55
%
Tax-equivalent net interest margin
3.79
%
 
3.69
%
 
3.81
%
 
3.94
%
 
3.62
 %
 
3.80
%
 
3.69
%
Efficiency ratio(1)
60.35
%
 
58.75
%
 
55.57
%
 
54.12
%
 
58.64
 %
 
57.17
%
 
60.61
%
Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing share price
$
34.40

 
$
46.90

 
$
46.30

 
$
43.95

 
$
44.20

 
 
 
 
Book value per common share
$
28.01

 
$
27.18

 
$
26.80

 
$
26.35

 
$
26.19

 
 
 
 
Tangible book value per common share
$
17.75

 
$
16.95

 
$
16.55

 
$
16.14

 
$
16.02

 
 
 
 
Price / book value
122.81
%
 
172.55
%
 
172.76
%
 
166.79
%
 
168.74
 %
 
 
 
 
Price / tangible book value
193.80
%
 
276.70
%
 
279.74
%
 
272.35
%
 
275.94
 %
 
 
 
 
Weighted average diluted shares outstanding
20,321,283

 
20,438,376

 
20,413,578

 
20,450,494

 
17,844,672

 
20,390,167

 
17,398,923

Shares outstanding, end of period
20,163,816

 
20,291,416

 
20,242,893

 
20,229,896

 
20,161,395

 
 
 
 
Wealth Management Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
Wealth assets under mgmt, administration, supervision and brokerage (2)
$
13,429,544

 
$
13,913,265

 
$
13,404,723

 
$
13,146,926

 
$
12,968,738

 
 
 
 
Fees for wealth management services
$
11,017

 
$
10,343

 
$
10,658

 
$
10,308

 
$
9,974

 
 
 
 







9

Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)

 
As of or For the Three Months Ended
 
For the Twelve Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
Capital Ratios(3)
 
 
 
 
 
 
 
 
 
 
 
 
 
Bryn Mawr Trust Company ("BMTC")
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier I capital to risk weighted assets ("RWA")
11.44
%
 
11.55
%
 
11.34
%
 
11.29
%
 
11.10
%
 
 
 
 
Total capital to RWA
12.00
%
 
12.10
%
 
11.91
%
 
11.82
%
 
11.65
%
 
 
 
 
Tier I leverage ratio
9.48
%
 
9.47
%
 
9.49
%
 
9.39
%
 
10.76
%
 
 
 
 
Tangible equity ratio (1)
8.95
%
 
9.29
%
 
9.27
%
 
9.19
%
 
8.67
%
 
 
 
 
Common equity Tier I capital to RWA
11.44
%
 
11.55
%
 
11.34
%
 
11.29
%
 
11.10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bryn Mawr Bank Corporation ("BMBC")
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier I capital to RWA
10.94
%
 
10.90
%
 
10.46
%
 
10.46
%
 
10.42
%
 
 
 
 
Total capital to RWA
14.32
%
 
14.33
%
 
13.87
%
 
13.93
%
 
13.92
%
 
 
 
 
Tier I leverage ratio
9.06
%
 
8.94
%
 
8.75
%
 
8.71
%
 
10.10
%
 
 
 
 
Tangible equity ratio (1)
8.05
%
 
8.23
%
 
8.00
%
 
7.98
%
 
7.61
%
 
 
 
 
Common equity Tier I capital to RWA
10.34
%
 
10.29
%
 
9.86
%
 
9.85
%
 
9.87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Indicators
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loan and lease charge-offs ("NCO"s)
$
1,620

 
$
1,378

 
$
1,401

 
$
893

 
$
556

 
$
5,292

 
$
2,579

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans and leases ("NPL"s)
$
12,820

 
$
8,990

 
$
9,448

 
$
7,533

 
$
8,579

 
 
 
 
Other real estate owned ("OREO")
417

 
529

 
531

 
300

 
304

 
 
 
 
Total nonperforming assets ("NPA"s)
$
13,237

 
$
9,519

 
$
9,979

 
$
7,833

 
$
8,883

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans and leases 30 or more days past due
$
7,765

 
$
4,906

 
$
6,749

 
$
5,775

 
$
6,983

 
 
 
 
Performing loans and leases 30 to 89 days past due
5,464

 
9,145

 
10,378

 
6,547

 
7,958

 
 
 
 
Performing loans and leases 90 or more days past due

 

 

 

 

 
 
 
 
Total delinquent loans and leases
$
13,229

 
$
14,051

 
$
17,127

 
$
12,322

 
$
14,941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Delinquent loans and leases to total loans and leases
0.39
%
 
0.42
%
 
0.50
%
 
0.37
%
 
0.45
%
 
 
 
 
Delinquent performing loans and leases to total loans and leases
0.16
%
 
0.27
%
 
0.31
%
 
0.20
%
 
0.24
%
 
 
 
 
NCOs / average loans and leases (annualized)
0.19
%
 
0.16
%
 
0.17
%
 
0.11
%
 
0.08
%
 
0.16
%
 
0.10
%
NPLs / total portfolio loans and leases
0.37
%
 
0.27
%
 
0.28
%
 
0.23
%
 
0.26
%
 
 
 
 
NPAs / total loans and leases and OREO
0.39
%
 
0.28
%
 
0.29
%
 
0.24
%
 
0.27
%
 
 
 
 
NPAs / total assets
0.28
%
 
0.22
%
 
0.23
%
 
0.18
%
 
0.20
%
 
 
 
 
ALLL / NPLs
151.53
%
 
207.83
%
 
205.31
%
 
234.46
%
 
204.28
%
 
 
 
 
ALLL / portfolio loans
0.57
%
 
0.55
%
 
0.57
%
 
0.53
%
 
0.53
%
 
 
 
 
ALLL for originated loans and leases / Originated loans and leases (1)
0.67
%
 
0.68
%
 
0.71
%
 
0.69
%
 
0.70
%
 
 
 
 
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1)
1.08
%
 
1.28
%
 
1.35
%
 
1.50
%
 
1.58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Troubled debt restructurings ("TDR"s) included in NPLs
$
1,217

 
$
1,208

 
$
1,044

 
$
1,125

 
$
3,289

 
 
 
 
TDRs in compliance with modified terms
9,745

 
4,316

 
4,117

 
5,235

 
5,800

 
 
 
 
Total TDRs
$
10,962

 
$
5,524

 
$
5,161

 
$
6,360

 
$
9,089

 
 
 
 
(1)
Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.
(2)
Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(3)
Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

10

Bryn Mawr Bank Corporation
Detailed Balance Sheets (unaudited)
(dollars in thousands)

 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Assets
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
14,099

 
$
10,121

 
$
7,318

 
$
7,804

 
$
11,657

Interest-bearing deposits with banks
34,357

 
35,233

 
39,924

 
24,589

 
48,367

  Cash and cash equivalents
48,456

 
45,354

 
47,242

 
32,393

 
60,024

Investment securities, available for sale
737,442

 
528,064

 
531,075

 
534,103

 
689,202

Investment securities, held to maturity
8,684

 
8,916

 
7,838

 
7,885

 
7,932

Investment securities, trading
7,502

 
8,340

 
8,175

 
8,211

 
4,610

Loans held for sale
1,749

 
4,111

 
4,204

 
5,522

 
3,794

Portfolio loans and leases, originated
2,885,251

 
2,752,160

 
2,700,815

 
2,564,827

 
2,487,296

Portfolio loans and leases, acquired
541,903

 
629,315

 
688,686

 
740,968

 
798,562

  Total portfolio loans and leases
3,427,154

 
3,381,475

 
3,389,501

 
3,305,795

 
3,285,858

Less: Allowance for losses on originated loan and leases
(19,329
)
 
(18,612
)
 
(19,181
)
 
(17,570
)
 
(17,475
)
Less: Allowance for losses on acquired loan and leases
(97
)
 
(72
)
 
(217
)
 
(92
)
 
(50
)
  Total allowance for loan and lease losses
(19,426
)
 
(18,684
)
 
(19,398
)
 
(17,662
)
 
(17,525
)
    Net portfolio loans and leases
3,407,728

 
3,362,791

 
3,370,103

 
3,288,133

 
3,268,333

Premises and equipment
65,648

 
63,281

 
54,185

 
54,986

 
54,458

Accrued interest receivable
12,585

 
13,232

 
13,115

 
12,521

 
14,246

Mortgage servicing rights
5,047

 
5,328

 
5,511

 
5,706

 
5,861

Bank owned life insurance
57,844

 
57,543

 
57,243

 
56,946

 
56,667

Federal Home Loan Bank ("FHLB") stock
14,530

 
14,678

 
16,678

 
15,499

 
20,083

Goodwill
184,012

 
183,864

 
183,162

 
182,200

 
179,889

Intangible assets
23,455

 
24,301

 
24,977

 
25,087

 
25,966

Other investments
16,526

 
16,529

 
16,774

 
11,720

 
12,470

Other assets
61,277

 
52,110

 
53,921

 
59,464

 
46,185

      Total assets
$
4,652,485

 
$
4,388,442

 
$
4,394,203

 
$
4,300,376

 
$
4,449,720

 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
  Noninterest-bearing
$
901,619

 
$
834,363

 
$
892,386

 
$
863,118

 
$
924,844

  Interest-bearing
2,697,468

 
2,522,863

 
2,466,529

 
2,452,421

 
2,448,954

    Total deposits
3,599,087

 
3,357,226

 
3,358,915

 
3,315,539

 
3,373,798

Short-term borrowings
252,367

 
226,498

 
227,059

 
173,704

 
237,865

Long-term FHLB advances
55,374

 
72,841

 
87,808

 
107,784

 
139,140

Subordinated notes
98,526

 
98,482

 
98,491

 
98,448

 
98,416

Jr. subordinated debentures
21,580

 
21,538

 
21,497

 
21,456

 
21,416

Accrued interest payable
6,652

 
7,193

 
5,230

 
4,814

 
3,527

Other liabilities
54,195

 
53,239

 
52,700

 
45,570

 
47,439

      Total liabilities
4,087,781

 
3,837,017

 
3,851,700

 
3,767,315

 
3,921,601

 
 
 
 
 
 
 
 
 
 
Shareholders' equity
 
 
 
 
 
 
 
 
 
Common stock
24,545

 
24,533

 
24,453

 
24,439

 
24,360

Paid-in capital in excess of par value
374,010

 
373,205

 
372,227

 
371,319

 
371,486

Less: common stock held in treasury, at cost
(75,883
)
 
(70,437
)
 
(68,943
)
 
(68,787
)
 
(68,179
)
Accumulated other comprehensive (loss) income, net of tax
(7,513
)
 
(13,402
)
 
(11,191
)
 
(9,664
)
 
(4,414
)
Retained earnings
250,230

 
238,204

 
226,634

 
216,438

 
205,549

    Total Bryn Mawr Bank Corporation shareholders' equity
565,389

 
552,103

 
543,180

 
533,745

 
528,802

Noncontrolling interest
(685
)
 
(678
)
 
(677
)
 
(684
)
 
(683
)
    Total shareholders' equity
564,704

 
551,425

 
542,503

 
533,061

 
528,119

      Total liabilities and shareholders' equity
$
4,652,485

 
$
4,388,442

 
$
4,394,203

 
$
4,300,376

 
$
4,449,720


11

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)

 
Portfolio Loans and Leases as of
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Commercial mortgages
$
1,657,436

 
$
1,618,493

 
$
1,613,721

 
$
1,541,457

 
$
1,523,377

Home equity loans and lines
207,351

 
207,806

 
206,429

 
211,469

 
218,275

Residential mortgages
494,355

 
467,402

 
449,060

 
453,655

 
458,886

Construction
181,078

 
178,493

 
190,874

 
202,168

 
212,454

  Total real estate loans
2,540,220

 
2,472,194

 
2,460,084

 
2,408,749

 
2,412,992

Commercial & Industrial
695,584

 
722,999

 
745,306

 
727,231

 
719,312

Consumer
46,814

 
47,809

 
51,462

 
48,423

 
38,153

Leases
144,536

 
138,473

 
132,649

 
121,392

 
115,401

  Total non-real estate loans and leases
886,934

 
909,281

 
929,417

 
897,046

 
872,866

    Total portfolio loans and leases
$
3,427,154

 
$
3,381,475

 
$
3,389,501

 
$
3,305,795

 
$
3,285,858

 
Nonperforming Loans and Leases as of
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Commercial mortgages
$
2,568

 
$
735

 
$
1,011

 
$
138

 
$
872

Home equity loans and lines
3,616

 
1,933

 
2,323

 
1,949

 
1,481

Residential mortgages
3,452

 
2,770

 
2,647

 
2,603

 
4,417

Construction

 
291

 

 

 

  Total nonperforming real estate loans
9,636

 
5,729

 
5,980

 
4,690

 
6,770

Commercial & Industrial
2,101

 
1,782

 
1,585

 
2,499

 
1,706

Consumer
108

 
117

 

 

 

Leases
975

 
1,362

 
1,882

 
344

 
103

  Total nonperforming non-real estate loans and leases
3,184

 
3,261

 
3,468

 
2,843

 
1,809

    Total nonperforming portfolio loans and leases
$
12,820

 
$
8,990

 
$
9,448

 
$
7,533

 
$
8,579

 
Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Commercial mortgage
$
249

 
$
56

 
$
13

 
$
(3
)
 
$
51

Home equity loans and lines
107

 

 
199

 
25

 
(5
)
Residential
304

 
(12
)
 
(1
)
 

 
88

Construction

 

 
(1
)
 
(1
)
 
(1
)
  Total net charge-offs of real estate loans
660

 
44

 
210

 
21

 
133

Commercial & Industrial
298

 
304

 
467

 
283

 
125

Consumer
147

 
71

 
41

 
48

 
55

Leases
515

 
959

 
683

 
541

 
243

  Total net charge-offs of non-real estate loans and leases
960

 
1,334

 
1,191

 
872

 
423

    Total net charge-offs
$
1,620

 
$
1,378

 
$
1,401

 
$
893

 
$
556


12

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)

 
Investment Securities Available for Sale, at Fair Value
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
U.S. Treasury securities
$
200,013

 
$
100

 
$
100

 
$
100

 
$
200,088

Obligations of the U.S. Government and agencies
195,855

 
190,453

 
183,256

 
175,107

 
151,044

State & political subdivisions - tax-free
11,162

 
15,629

 
17,254

 
19,746

 
21,138

State & political subdivisions - taxable
170

 
170

 
171

 
171

 
172

Mortgage-backed securities
289,890

 
284,421

 
292,563

 
303,902

 
274,990

Collateralized mortgage obligations
39,252

 
36,193

 
36,634

 
33,980

 
36,662

Other debt securities
1,100

 
1,098

 
1,097

 
1,097

 
1,599

Other investments

 

 

 

 
3,509

  Total investment securities available for sale, at fair value
$
737,442

 
$
528,064

 
$
531,075

 
$
534,103

 
$
689,202

 
Unrealized Gain (Loss) on Investment Securities Available for Sale
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
U.S. Treasury securities
$
(13
)
 
$

 
$

 
$

 
$
11

Obligations of the U.S. Government and agencies
(2,749
)
 
(5,881
)
 
(4,594
)
 
(3,756
)
 
(1,984
)
State & political subdivisions - tax-free
(39
)
 
(90
)
 
(57
)
 
(74
)
 
(42
)
State & political subdivisions - taxable
(1
)
 
(1
)
 
(1
)
 
(1
)
 

Mortgage-backed securities
(4,186
)
 
(7,584
)
 
(6,141
)
 
(5,169
)
 
(968
)
Collateralized mortgage obligations
(898
)
 
(1,618
)
 
(1,443
)
 
(1,322
)
 
(934
)
Other debt securities

 
(2
)
 
(3
)
 
(3
)
 
(1
)
Other investments

 

 

 

 
296

  Total unrealized losses on investment securities available for sale
$
(7,886
)
 
$
(15,176
)
 
$
(12,239
)
 
$
(10,325
)
 
$
(3,622
)
 
Deposits
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
  Interest-bearing demand
$
664,749

 
$
578,243

 
$
617,258

 
$
529,478

 
$
481,336

  Money market
862,644

 
812,027

 
814,530

 
856,072

 
862,639

  Savings
247,081

 
286,266

 
291,858

 
308,925

 
338,572

  Retail time deposits
542,702

 
561,123

 
536,287

 
523,138

 
532,202

  Wholesale non-maturity deposits
55,031

 
24,040

 
36,826

 
63,449

 
62,276

  Wholesale time deposits
325,261

 
261,164

 
169,770

 
171,359

 
171,929

    Total interest-bearing deposits
2,697,468

 
2,522,863

 
2,466,529

 
2,452,421

 
2,448,954

  Noninterest-bearing deposits
901,619

 
834,363

 
892,386

 
863,118

 
924,844

      Total deposits
$
3,599,087

 
$
3,357,226

 
$
3,358,915

 
$
3,315,539

 
$
3,373,798



13

Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)

 
For the Three Months Ended
 
For the Twelve Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
44,157

 
$
42,103

 
$
41,689

 
$
40,689

 
$
32,245

 
$
168,638

 
$
120,762

Interest on cash and cash equivalents
83

 
64

 
64

 
53

 
37

 
264

 
174

Interest on investment securities
3,294

 
3,066

 
3,001

 
2,792

 
2,516

 
12,153

 
8,623

  Total interest income
47,534

 
45,233

 
44,754

 
43,534

 
34,798

 
181,055

 
129,559

Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
7,048

 
5,533

 
4,499

 
3,472

 
2,739

 
20,552

 
8,748

Interest on short-term borrowings
681

 
1,096

 
985

 
630

 
579

 
3,392

 
1,390

Interest on FHLB advances
331

 
394

 
490

 
562

 
595

 
1,777

 
2,620

Interest on jr. subordinated debentures
342

 
337

 
321

 
288

 
46

 
1,288

 
46

Interest on subordinated notes
1,145

 
1,144

 
1,143

 
1,143

 
518

 
4,575

 
1,628

Total interest expense
9,547

 
8,504

 
7,438

 
6,095

 
4,477

 
31,584

 
14,432

  Net interest income
37,987

 
36,729

 
37,316