(Source: PrimeNewswire)
BRYN MAWR, Pa., April 28, 2009 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today announced financial results for the first quarter ended March 31, 2009. The Corporation reported first quarter 2009 diluted earnings per share of $0.31 and net income of $2.6 million compared to fourth quarter 2008 results of $0.12 and $1.0 million. The Corporation had an increase of $0.19 per diluted share or 160% over fourth quarter 2008 results.
On April 20, 2009, the Corporation sold 150,061 shares of its common stock in a private placement to an accredited investor. The aggregate purchase price for the shares sold was $2.5 million. The shares sold constitute 1.7% of the number of outstanding shares of the Corporation's common stock, as determined immediately after the closing of the sale.
Additionally, the Bank raised $7.5 million in subordinated debt on April 20, 2009 which is intended to qualify as Tier II capital to enhance the Tier II regulatory capital ratios of the Corporation and the Bank.
The Corporation and Bank intend to use the proceeds of the stock sale and subordinated debt issuance to support earning asset growth and for other corporate purposes.
For more information on these transactions refer to the 8-K filed with the SEC on April 21, 2009.
Ted Peters, Chairman and Chief Executive Officer, stated, "We are pleased with the results for the first quarter of 2009, and look forward to the balance of the year. Deposit growth and revenue from mortgage refinance activity were among the highlights for the quarter, partially offset by continued weakness in our small ticket national leasing company and an additional market value adjustment of our mortgage servicing rights due to strong refinance activity."
Mr. Peters continued, "We are also pleased to report the sale of $2.5 million of common shares and the issuance of $7.5 million in subordinated debt which serve to further enhance our capital position, all without government assistance."
HIGHLIGHTS FOR THE QUARTER
* First quarter 2009 deposit levels were $886.8 million, up $129.8 million or 17.2% from March 31, 2008 and up $17.3 million or 2.0% from December 31, 2008. * Total quarter end portfolio loans and leases were down less than 1% to $893.5 million compared to $899.6 million at December 31, 2008 as construction loans decreased $14.7 million or 25% and leases declined $1.6 million or 3%. * Revenue from Wealth Management services (which includes Lau Associates revenue) for the first quarter 2009 was $3.5 million, compared with fourth quarter 2008 revenue of $3.7 million reflecting the impact of further declines in the market value of financial assets in the first quarter of 2009. * Mortgage originations for the first quarter of 2009 were $96.5 million compared with $25.8 million in the fourth quarter of 2008 and $28.8 million in the first quarter of 2008. The net gain on the sale of residential mortgage loans of approximately $1.9 million was up significantly from approximately $300 thousand in the fourth quarter of 2008. Operating expenses include variable costs associated with this revenue of approximately 40%. * The value of our Mortgage Servicing Rights (MSR's) increased to $2.7 million, up from $2.2 million on December 31, 2008. This increase is the result of mortgage refinancing activity during the first quarter of 2009 due to the current low rate environment. However, this increase was partially offset by the continued decline in the market value of MSR's on the higher rate mortgages in the mortgage servicing portfolio. As a result of the continued decline in conforming mortgage rates, a market value adjustment of approximately $200 thousand was recognized in the first quarter of 2009. * The net interest margin was 3.62% for the first quarter 2009, down one basis point from the fourth quarter 2008. * The provision for loan and lease losses for the quarter ended March 31, 2009 was $1.59 million, primarily due to the continued weakness of our small-ticket national leasing portfolio. * At March 31, 2009, the allowance for loan and lease losses of $10.14 million was 1.13% of portfolio loans and leases, compared with $10.33 million or 1.15% of portfolio loans and leases at December 31, 2008. The allowance as a percentage of non-performing loans and leases increased to 254% at March 31, 2009 from 178% at December 31, 2008, due to the foreclosure of a site development loan and its transfer into other real estate owned at its estimated net realizable value. * First quarter 2009 non-interest expense increased approximately $1.0 million or 9.8% over the fourth quarter of 2008 due in part to the variable costs associated with higher residential mortgage activity, the MSR market value adjustment, an approximate 130% increase in the FDIC insurance base rate and increased pension costs, primarily related to the decrease in the market value of the qualified retirement plan's assets. * Receipt of approximately $15.6 million in cash relating to the bank- owned life insurance contracts that were surrendered in August 2008. * Regulatory capital levels at March 31, 2009 exceed the regulatory minimum for "well capitalized" at both the Bank and Corporate level by over $10 million ($20 million proforma). Proforma capital ratios are presented below to reflect the issuance of 150,061 shares of common stock and $7.5 million in subordinated debt on April 20, 2009: Regulatory Minimum to be Actual Proforma Well Capitalized 3/31/09 3/31/09 ---------------- ------- ------- Bryn Mawr Trust Company Consolidated ----------------------- Tier I Capital to Risk Weighted Assets (RWA) 6.00% 8.56% 8.56% Total (Tier II) Capital to RWA 10.00% 11.01% 11.75% Tier I Leverage Ratio 5.00% 7.68% 7.68% Bryn Mawr Bank Corporation -------------------------- Tier I Capital to Risk Weighted Assets (RWA) 6.00% 8.91% 9.17% Total (Tier II) Capital to RWA 10.00% 11.36% 12.34% Tier I Leverage Ratio 5.00% 8.01% 8.24% Tangible Common Equity to Assets 7.20% 7.34%
DIVIDEND DECLARED
On April 22, 2009, the Corporation's Board of Directors declared a quarterly dividend of $0.14 per share, payable June 1, 2009 to shareholders of record as of May 7, 2009.
The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Wednesday, April 29, 2009. Interested parties may participate by calling 800-860-2442 at 8:30 a.m. EDT. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Thursday, May 7, 2009. The number to call for the taped replay is 877-344-7529 and the Replay Passcode is 429460.
The conference call will be simultaneously broadcast live over the Internet through a web cast on the investor relations portion of the Bryn Mawr Bank Corporation's website. To access the call, please visit the website at http://www.bmtc.com/investor_01.cfm. An online archive of the web cast will be available within two hours 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.
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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", "could", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" 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; the impact of economic conditions on our business; changes in banking regulation 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; our ability to attract and retain key personnel; competition in our marketplace; and other factors as described in our securities filings. All forward-looking statements and information made herein are based on our current expectations 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.
