BRYN MAWR, Pa., July 20, 2017 – Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $9.4 million and diluted earnings per share of $0.55 for the three months ended June 30, 2017, as compared to net income of $9.0 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2017 and $8.9 million, or $0.52 diluted earnings per share, for the three months ended June 30, 2016. Included in net income for the three months ended June 30, 2017 and March 31, 2017 were pre-tax due diligence and merger-related expenses of $1.2 million and $511 thousand, respectively, with the 2017 figures primarily related to the pending merger with Royal Bancshares of Pennsylvania, Inc. (“Royal Bank”).
On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was $10.2 million, or $0.59 diluted earnings per share, for the three months ended June 30, 2017 as compared to $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017 and $9.0 million, or $0.53 diluted earnings per share, for the three months ended June 30, 2016. 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 are very pleased with the results for the second quarter,” commented Frank Leto, President and Chief Executive Officer, continuing, “For the first time in the Corporation’s history, our core net income exceeded $10 million for the quarter and our wealth assets have exceeded the $12 billion mark.”
Mr. Leto continued, “Not only is the growth in our loan portfolio strong, increasing 4.4% from March 31, 2017 to June 30, 2017, the credit quality of the portfolio remains stable, as evidenced by the reduced provision for loan and lease losses recorded this quarter. In addition, noninterest income was boosted by the outstanding performance of our newly established capital markets group, which opened for business in May 2017 and has already recorded revenue of $953 thousand for the quarter.”
On the corporate development front, Mr. Leto noted, “The Royal Bank merger preparations are continuing, with the close of the transaction expected in the third quarter of 2017. In addition, the May 2017 acquisition of Hirshorn Boothby, located in Chestnut Hill, Philadelphia, along with the opening of our Princeton wealth management office, positions us well to capitalize on the expanded footprint that will be created by the addition of the Royal Bank branch network.”
The acquisition of Royal Bank is subject to applicable regulatory approvals and is also subject to certain closing conditions.
On July 20, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable September 1, 2017 to shareholders of record as of August 2, 2017. This represents a $0.01, or 4.8%, increase from the previous quarter.
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