Bryn Mawr Bank Corporation Announces Earnings for 2004.BRYN MAWR Bryn Mawr (brĭn mär), uninc. town (1990 est. pop. 10,000), Montgomery co., SE Pa., a residential suburb of Philadelphia. It is the seat of Bryn Mawr College (for women), opened in 1885 by the Society of Friends. , Pa. -- Bryn Mawr Bank Corporation, (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BMTC BMTC Bremerton Metal Trades Council BMTC Bureau of Meteorology Training Centre BMTC Ballistic Missile Technical Collection BMTC Bangalore Metropolitian Transport Corporation BMTC Burning Man Travel Center ), (the "Corporation"), parent of The Bryn Mawr Trust Company, (the "Bank"), announced that income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the year 2004 decreased 17% to $9,345,000 from $11,272,000 for the same period in 2003. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations stood at $1.06, a 17% decrease from $1.28 reported for the twelve months ended December December: see month. 31, 2003. The reduction in the volume of residential mortgage loan sales and costs associated with the implementation of Section 404 of the Sarbanes-Oxley Act See SOX. of 2002 were primarily responsible for this decline. Due to a net loss resulting from the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of the Corporation's family office subsidiary in 2003, both net income and diluted earnings per share remained level with 2003, at $9,345,000 or $1.06 per share for 2004 compared to $9,356,000 or $1.06 per share for 2003. Net income for the fourth quarter of 2004 decreased 25% to $2,087,000 from $2,795,000 for the fourth quarter of 2003, and diluted earnings per share decreased 23% to 24 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. from 31 cents per share. Income from continuing operations for the fourth quarter of 2004 declined 24% to $2,087,000 from $2,741,000 reported for fourth quarter 2003. Diluted earnings per share from continuing operations declined 23% from 31 cents reported for the fourth quarter of 2003 to 24 cents for fourth quarter 2004. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Corporation Chairman Ted Peters, "While our earnings are down, our net interest income for the year increased 8% to $26,828,000 from $24,931,000 reported for 2003. Net interest income for the fourth quarter was up 14% to $7,096,000 from $6,236,000 for fourth quarter 2003, demonstrating the positive effect of the recent increases in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. ." Peters also said: "Continued increases in interest rates will have a positive effect on the profitability of the Corporation." Salaries and other benefit expenses remained level from year to year. Fourth quarter 2004 salary expenses show an increase of 26% over fourth quarter 2003. This 26% increase in salary expenses is a result of two factors. In the fourth quarter of 2003, there was a marked decrease in salaries and other benefit expenses related to employee incentives as a result of a decline in net income in 2003, as compared to 2002. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , in the fourth quarter of 2004, a small corporate bonus pool was established to recognize the efforts of employees during 2004 including the additional work required in implementing the Sarbanes-Oxley Act. The Corporation's balance sheet reported strong growth. Total outstanding loans were up 12%, while total deposits grew by 14% year to year. Though asset quality remained strong, management felt it prudent to increase the loan loss provision due to charge-offs experienced in the second half of 2004. As a percent of total loans, non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. and loans delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. 30 days or more amounted to 0.2 % and 0.41% respectively as of December 31, 2004. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.45% and the annualized return on equity was 13.67% for the same twelve-month period. Fourth quarter occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses increased 10% as a result of the opening of the Newtown Newtown, town (1990 pop. 20,779), Fairfield co., SW Conn., on the Housatonic; inc. 1711. Pressure gauges, plastics, and paper and metal products are made, and dairy and fruit farms are in the area. Square Branch. Though other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the year 2004 showed a 19% decrease primarily due to the decline in mortgage volume, fourth quarter expenses showed a 4% increase due to costs associated with Sarbanes-Oxley Act implementation. In other business, the Corporation's Board of Directors approved a quarterly dividend of 10 cents per share, payable March 1, 2005, to shareholders of record as of January January: see month. 31, 2005. This release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words believe, expect, anticipate, intend, plan, estimate or words of similar meaning. Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond Bryn Mawr Bank Corporation's control could cause actual conditions, events or results to differ significantly from those described in the forward looking statements. Forward-looking statements speak only as of the date they are made. Bryn Mawr Bank Corporation does not undertake to update forward-looking statements.
Bryn Mawr Bank Corporation
Bryn Mawr, Pennsylvania
December 31
Consolidated Balance Sheets (unaudited)
($000 omitted) Change
2004 2003 $ %
--------- --------- -------- ----
Assets
Cash and due from banks $26,526 $32,471 ($5,945) -18%
Interest-bearing deposits with other
banks 15,293 10,524 4,769 45%
Federal funds sold 13,423 3,300 10,123 307%
Investment securities 35,441 31,397 4,044 13%
Loans held to maturity 555,889 498,764 57,125 11%
Loans held for sale, at fair market
value 8,708 3,652 5,056 138%
--------- --------- --------
Loans 564,597 502,416 62,181 12%
Less: Allowance for loan loss (6,927) (6,670) (257) 4%
--------- --------- --------
Net loans 557,670 495,746 61,924 12%
Premises and equipment, net 14,162 13,756 406 3%
Accrued interest receivable 2,579 2,274 305 13%
Mortgage servicing rights 3,172 4,391 (1,219) -28%
Other assets 14,680 10,989 3,691 34%
--------- --------- --------
Total Assets $682,946 $604,848 $78,098 13%
========= ========= ========
Liabilities and shareholders' equity
Demand deposits $147,236 $144,579 $2,657 2%
Savings and time deposits 453,729 382,560 71,169 19%
--------- --------- --------
Total Deposits 600,965 527,139 73,826 14%
Other liabilities 10,743 10,327 416 4%
Shareholders' equity
Common stock 11,172 11,135 37 0%
Surplus 7,112 6,487 625 10%
Accumulated other
Comprehensive (loss) income, net
of deferred income taxes (288) (126) (162) 129%
Retained earnings 75,179 69,280 5,899 9%
--------- --------- --------
93,175 86,776 6,399 7%
Less common stock in treasury, at
cost (21,937) (19,394) (2,543) 13%
--------- --------- --------
Total shareholders' equity 71,238 67,382 3,856 6%
--------- --------- --------
Total liabilities and
shareholders' equity $682,946 $604,848 $78,098 13%
========= ========= ========
Outstanding standby letters of
credit $8,803 $9,182 ($379) -4%
Bryn Mawr Bank Corporation
Bryn Mawr, Pennsylvania
Quarter ended
Consolidated Statements of Income December 31
(unaudited)
($000 omitted(a))
Change
2004 2003 $ %
---------- ---------- --------- ----
Interest income:
Interest and fees on loans $7,936 $7,043 $893 13%
Interest on federal funds
sold 85 29 56 193%
Interest on investment
securities 295 226 69 31%
Dividend income 12 7 5 71%
---------- ---------- ---------
Total interest income 8,328 7,305 1,023 14%
Interest expense 1,232 1,069 163 15%
---------- ---------- ---------
Net interest income 7,096 6,236 860 14%
Loan loss provision 338 83 255 307%
---------- ---------- ---------
Net interest income after
loan loss provision 6,758 6,153 605 10%
---------- ---------- ---------
Other income:
Fees for trust services 2,461 2,412 49 2%
Loan Servicing and late fees 360 523 (163) -31%
Other commissions and fees 52 31 21 68%
Service charges on deposits 429 456 (27) -6%
Gain on sale of loans 352 951 (599) -63%
Other operating income 467 431 36 8%
---------- ---------- ---------
Total other income 4,121 4,804 (683) -14%
---------- ---------- ---------
Other expenses:
Salaries and employee
benefits 4,724 3,757 967 26%
Occupancy expense 1,014 920 94 10%
Other operating expenses 2,077 1,992 85 4%
---------- ---------- ---------
Total other expenses 7,815 6,669 1,146 17%
---------- ---------- ---------
Income from continuing operations
before income taxes 3,064 4,288 (1,224) -29%
Applicable income taxes 977 1,547 (570) -37%
---------- ---------- ---------
Income from continuing operations 2,087 2,741 (654) -24%
Income (loss) from discontinued
operations net of taxes - 54 (54) n/a
---------- ---------- ---------
Net income 2,087 2,795 (708) -25%
========== ========== =========
Earnings per common share
Income from continuing operations $0.24 $0.32 ($0.08) -25%
Loss from discontinued operations $0.00 $0.00 $0.00 n/a
------------------------------------
Total earnings per common share $0.24 $0.32 ($0.08) -25%
------------------------------------
Diluted earnings per common share
Income from continuing operations $0.24 $0.31 ($0.07) -23%
Loss from discontinued operations $0.00 $0.00 $0.00 n/a
------------------------------------
Total diluted earnings per common
share $0.24 $0.31 ($0.07) -23%
------------------------------------
Dividends declared per share $0.10 $0.095 $0.005 5%
------------------------------------
Weighted-average shares
outstanding 8,596,888 8,667,900 (71,012)
Dilutive potential common shares 153,372 211,166 (57,794)
---------- ---------- ---------
Adjusted weighted-average shares 8,750,260 8,879,066 (128,806)
(a) Except for share and per share data
Bryn Mawr Bank Corporation
Bryn Mawr, Pennsylvania
Period ended
Consolidated Statements of Income December 31
(unaudited)
($000 omitted(a))
Change
2004 2003 $ %
---------- ---------- -------- ----
Interest income:
Interest and fees on loans $30,123 $28,285 $1,838 6%
Interest on federal funds sold 191 110 81 74%
Interest on investment
securities 1,033 833 200 24%
Dividend income 34 33 1 3%
---------- ---------- --------
Total interest income 31,381 29,261 2,120 7%
Interest expense 4,553 4,330 223 5%
---------- ---------- --------
Net interest income 26,828 24,931 1,897 8%
Loan loss provision 900 750 150 20%
---------- ---------- --------
Net interest income after loan
loss provision 25,928 24,181 1,747 7%
---------- ---------- --------
Other income:
Fees for trust services 10,087 9,484 603 6%
Loan Servicing and late fees 1,632 1,863 (231) -12%
Other commissions and fees 247 557 (310) -56%
Service charges on deposits 1,827 1,896 (69) -4%
Gain on sale of loans 4,065 10,650 (6,585) -62%
Other operating income 1,936 2,127 (191) -9%
---------- ---------- --------
Total other income 19,794 26,577 (6,783) -26%
---------- ---------- --------
Other expenses:
Salaries and employee benefits 19,310 19,387 (77) 0%
Occupancy expense 3,946 3,767 179 5%
Other operating expenses 8,369 10,283 (1,914) -19%
---------- ---------- --------
Total other expenses 31,625 33,437 (1,812) -5%
---------- ---------- --------
Income from continuing operations
before income taxes 14,097 17,321 (3,224) -19%
Applicable income taxes 4,752 6,049 (1,297) -21%
---------- ---------- --------
Income from continuing operations 9,345 11,272 (1,927) -17%
Income (loss) from discontinued
operations net of taxes - (1,916) 1,916 n/a
---------- ---------- --------
Net income 9,345 9,356 (11) 0%
========== ========== ========
Earnings per common share
Income from continuing operations $1.09 $1.30 ($0.21) -17%
Loss from discontinued operations $0.00 ($0.22) $0.22 n/a
-----------------------------------
Total earnings per common share $1.09 $1.08 $0.01 1%
-----------------------------------
Diluted earnings per common share
Income from continuing operations $1.06 $1.28 ($0.22) -17%
Loss from discontinued operations $0.00 ($0.22) $0.22 n/a
-----------------------------------
Total diluted earnings per common
share $1.06 $1.06 $0.00 0%
-----------------------------------
Dividends declared per share $0.40 $0.40 $0.00 0%
-----------------------------------
Weighted-average shares
outstanding 8,610,171 8,657,527 (47,356)
Dilutive potential common shares 170,545 158,543 12,002
---------- ---------- --------
Adjusted weighted-average shares 8,780,716 8,816,070 (35,354)
(a) Except for share and per share data
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