BRYN MAWR, Pa., April 28, 2011 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today announced diluted earnings per share of $0.38 for the three months ended March 31, 2011, an increase of $0.13 per share, or 52%, as compared to diluted earnings per share of $0.25 for the same period in 2010. Net income for the three months ended March 31, 2011 was $4.7 million, an increase of $2.5 million, or 112.1%, as compared to net income of $2.2 million for the same period in 2010. Total assets as of March 31, 2011 were $1.71 billion as compared to $1.73 billion and $1.22 billion as of December 31, 2010 and March 31, 2010, respectively.
On April 27, 2011, the Board of Directors of the Corporation declared a quarterly dividend of $0.15 per share. The dividend is payable June 1, 2011, to shareholders of record as of May 10, 2011.
The merger with First Keystone Financial, Inc., (the "Merger"), which was completed on July 1, 2010, is the primary cause of the increases in assets and liabilities between March 31, 2011 and March 31, 2010. In addition, the Merger, which included the acquisition of $275 million of loans, $101 million of investment securities, $321 million of deposits and $106 million of borrowings, as well as eight full-service branch locations, accounts for a significant portion of the increases in both income and expense items for the three months ended March 31, 2011, as compared to the same period in 2010.
Ted Peters, Chairman and Chief Executive Officer, commented, "We are very pleased with our first quarter earnings which were a result of lower credit costs, an improved net interest margin, a healthy increase in our Wealth division's revenue, and the successful integration of the First Keystone branches." Mr. Peters added, "Loan demand is starting to pick up, and we are optimistic about maintaining this positive momentum for the remainder of 2011."
On February 18, 2011, the Corporation entered into a definitive agreement to acquire the Private Wealth Management Group of the Hershey Trust Company. The acquisition, which is anticipated to close in the second quarter of 2011, subject to certain conditions and regulatory approvals, is expected to increase the assets under management of the Corporation's Wealth Management Division by approximately $1.1 billion. Mr. Peters commented, "We are very excited about the pending Hershey transaction," adding that, "it steers us firmly in the direction of attaining our goal of $5 billion in wealth assets under management." As of March 31, 2011, Wealth Management Division assets under management, administration, brokerage and supervision were $3.6 billion.
SIGNIFICANT ITEMS OF NOTE
- Net income for the three months ended March 31, 2011 increased $2.5 million, as compared to the same period in 2010. The increase is attributable to a $4.3 million increase in net interest income, a $1.8 million decrease in the provision for loan and lease losses, a $359 thousand increase in fees for wealth management services, a $209 thousand decrease in professional fees and a $466 thousand increase in other operating income. These increases were partially offset by a $1.1 million decrease in the gain on sale of available for sale securities, a $127 thousand decrease in the gain on sale of residential mortgage loans and a $543 thousand increase in other operating expenses. In addition, directly related to the operation of the newly-acquired First Keystone branches, were increases of $1.2 million in salaries and benefits expenses and $603 thousand in occupancy-related expenses for the three months ended March 31, 2011, as compared to the same period in 2010.
- Revenue from the Wealth Management Division for the three months ended March 31, 2011 was $4.2 million, an increase of 9.4% from the $3.8 million generated in the same period in 2010. Wealth Management Division assets under management, administration, supervision and brokerage as of March 31, 2011 were $3.6 billion, an increase of $187.8 million, or 5.5%, from December 31, 2010, and a $491.1 million, or 15.8%, increase from March 31, 2010. These increases are due largely to the continued successes of new initiatives within the division as well as asset appreciation resulting from improvements in the financial markets.
- Net gain on the sale of residential mortgage loans for the three months ended March 31, 2011 was $398 thousand as compared to $525 thousand for the same period in 2010. The 24.2% decrease is attributable to the Corporation's decision to retain a larger portion of originated residential mortgage loans in its portfolio, rather than sell them, thus decreasing the net gain on their sales.
- The allowance for loan and lease losses (the "Allowance"), as of March 31, 2011, of $10.6 million, was 0.87% of portfolio loans and leases, as compared to $10.3 million or 0.86% of portfolio loans and leases and $9.7 million or 1.09% of portfolio loans and leases as of December 31, 2010 and March 31, 2010, respectively. In calculating the Allowance as a percentage of portfolio loans and leases, portfolio loans and leases include loans and leases originated by the Bank ("originated loans and leases"), as well as loans acquired in the Merger. In accordance with accounting principles generally accepted in the United States ("GAAP"), the loan portfolio acquired in the Merger was recorded at its fair value without its previously recorded Allowance. The Allowance related to originated loans and leases, as a percentage of originated loans and leases (a non-GAAP measure*), was 1.08%, as of both March 31, 2011 and December 31, 2010.
*see table under Non-GAAP Financial Measures shown below.
- Asset quality as of March 31, 2011 remained relatively stable, with nonperforming loans and leases comprising 0.88%, 0.79% and 0.82% of total portfolio loans as of March 31, 2011, December 31, 2010 and September 30, 2010, respectively. Net loan and lease charge-offs for the three months ended March 31, 2011 totaled $911 thousand, as compared to net loan and lease charge-offs of $1.5 million and $3.8 million for the three month periods ended December 31, 2010 and March 31, 2010, respectively. This reduction in net charge-offs, along with the relatively stable loan quality, resulted in a $226 thousand decrease, to $1.3 million, in the provision for loan and lease losses (the "Provision") for the three months ended March 31, 2011, as compared to the $1.5 million Provision recorded for the three months ended December 31, 2010, and a $1.8 million decrease from the $3.1 million Provision recorded for the three months ended March 31, 2010.
- Total portfolio loans and leases of $1.22 billion, as of March 31, 2011, increased $22.7 million, or 1.9%, as compared to $1.20 billion as of December 31, 2010. The growth was concentrated in the residential mortgage, commercial mortgage and construction loan categories of the portfolio.
- Deposits of $1.32 billion, as of March 31, 2011, decreased $25.4 million, or 1.89%, from $1.34 billion as of December 31, 2010. Significantly contributing to this decline was a $17.1 million decrease in wholesale deposits, as the Corporation has reduced its dependence on these higher-cost funding sources. In addition, declines in other deposit types, which have been observed in prior years, and are considered seasonal, are due to the reduction, during the three months ended March 31, 2011, of temporary year-end deposit inflows.
- The tax equivalent net interest margin of 4.03%, for the three months ended March 31, 2011, was an increase of 30 basis points from the 3.73% tax equivalent net interest margin for the three months ended December 31, 2010. The primary cause of this increase was the utilization, during the three months ended March 31, 2011, of lower-yielding cash balances to originate higher-yielding loans and to pay off maturing Federal Home Loan Bank advances, along with a continued decline in the cost of interest-bearing liabilities. As compared to the three months ended March 31, 2010, the tax equivalent net interest margin for the three months ended March 31, 2011 remained relatively unchanged, with a 3 basis point decline to 4.03%.
- Gains on the sale of available for sale investment securities for the three months ended March 31, 2011 were $448 thousand, a decrease of $1.1 million from the $1.5 million recognized in the same period in 2010. The gains recorded during the current quarter resulted primarily from the sale of $26 million of long-term municipal obligations, which helped reduce the credit risk and interest rate risk exposure in the investment portfolio. The municipal sector of the investment portfolio decreased from 10.1% of investment portfolio assets as of December 31, 2010, to 2.2%, as of March 31, 2011.
- The capital ratios for the Bank and the Corporation, as shown below in Capital Ratios table, indicate levels well above those deemed to be considered "well capitalized". The Corporation's tangible common equity ratio, as of March 31, 2011, increased 64 basis points, to 8.65%, as compared to 8.01% as of December 31, 2010. The increase was largely due to the $2.9 million increase in retained earnings, along with the $5.7 million in additional capital raised through the Corporation's Dividend Reinvestment and Stock Purchase Plan during the first quarter of 2011.
EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, April 29, 2011. Interested parties may participate by calling 1-877-317-6789, conference number 449967. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through May 16, 2011. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 449967.
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 . 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 or by calling Aaron Strenkoski, Vice President – Finance/Investor Relations at 610-581-4822.
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FORWARD LOOKING STATEMENTS AND SAFE HARBOR
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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" and "believe" or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation's actual future results or performance may be materially different.
Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisition of First Keystone Financial, Inc. and First Keystone Bank and the anticipated acquisition of the Private Wealth Management Group of the Hershey Trust Company; 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.
CONTACT: Ted Peters, Chairman 610-581-4800 J. Duncan Smith, CFO 610-526-2466