Bryn Mawr Bank Corporation Reports Steady Growth in Its Banking and Wealth Management Business Segments for First Six Months Of 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"), reported that the first six months of 2004 was a period of steady growth in earnings for both its Banking and Wealth Management Business Segments. Net interest income was up 5% to $12,918,000 from $12,346,000 reported for the first six months of 2003. Fees for investment management and trust services increased by 12% to $5,198,000 from $4,661,000 for the same period last year. Income from the sale of residential mortgage loans, however, showed a 54% decline of $3,769,000 as mortgage originations and sales subsided in a rising rate environment. Net income for the first six months of 2004 was $5,149,000, up 48% from $3,478,000 reported for the same period in 2003. The first-half 2003 net income included a $2,120,000 loss, net of income tax benefit, from the sale of the assets of the Corporation's family office subsidiary, Joseph W. Roskos & Co. 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 during the first six months of 2004 showed an 8% decline of $449,000, compared to the same six month period in 2003 and a 6 cents decrease in 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 . Second quarter 2004 net income, reflecting the loss, net of income tax benefit, from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in 2003, was up 163% to $2,129,000 from $809,000 reported for the second quarter of 2003, while diluted earnings per share increased to 24 cents from 9 cents for last year's second quarter. Second quarter income from continuing operations showed a 22% decline of $608,000, and diluted earnings per share from continuing operations were down by 23% or 7 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. . The reduction in the volume of residential mortgage loan sales in the second quarter of 2004, compared to the same quarter of 2003, is primarily responsible for this earnings decline. 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, "We continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the Corporation's future earnings potential even though the large gains resulting from residential mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. activity in 2002 and 2003 have significantly decreased. We believe that our other business segments are well positioned to offset the decrease in mortgage banking profits. The traditional banking segment has an asset interest-rate-sensitive balance sheet. As interest rates again rise, the Bank's net interest margin and related net interest income should increase. The wealth management business segment continues to increase its revenue generation. Trust revenues were up 13% for the quarter and 12% for the first six months of 2004 compared to the same periods last year." Peters continued, "Our outlook remains strong. The Corporation's balance sheet grew by 13%, primarily in the loan portfolio, which was up by 15%. Deposits were up by 14%. Asset quality continues to remain strong. 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 .07% and .23%, respectively. Our 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 1.66% and the annualized return on equity was 15.40%." Total other expenses for the first six months of 2004 decreased by 11% compared to the same period in 2003. This was primarily due to a $1,723,000 decrease in 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. , resulting from reduced expenses directly related to the decline in residential mortgage activity and a company-wide focus on expense control. In other business, the Corporation's Board of Directors approved a regular quarterly dividend of 10 cents per share, payable September September: see month. 1, 2004, to shareholders of record as of August 2, 2004. 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
June 30
Consolidated Balance Sheets ($000 omitted)
(unaudited)
Change
2004 2003(b) $ %
--------- --------- -------- -----
Assets
Cash and due from banks $36,254 $39,363 ($3,109) -8%
Interest-bearing deposits with other
banks 7,786 284 7,502 2642%
Federal funds sold 10,000 16,600 (6,600) -40%
Investment securities 31,652 22,776 8,876 39%
Loans held to maturity 552,092 463,827 88,265 19%
Loans held for sale, at fair market
value 4,795 22,106 (17,311) -78%
--------- --------- --------
Loans 556,887 485,933 70,954 15%
Less: Allowance for loan loss (6,965) (6,576) (389) 6%
--------- --------- --------
Net loans 549,922 479,357 70,565 15%
Premises and equipment, net 13,659 12,200 1,459 12%
Accrued interest receivable 2,390 2,190 200 9%
Mortgage servicing rights 3,283 3,569 (286) -8%
Other assets 10,290 7,620 2,670 35%
Assets of discontinued operations - 2,460 (2,460) -100%
--------- --------- --------
Total Assets $665,236 $586,419 $78,817 13%
========= ========= ========
Liabilities and shareholders' equity
Demand deposits $145,830 $153,520 ($7,690) -5%
Savings and time deposits 442,191 360,385 81,806 23%
--------- --------- --------
Total Deposits 588,021 513,905 74,116 14%
Other liabilities 8,644 9,738 (1,094) -11%
Liabilities of discontinued
operations - 12 (12) -100%
Shareholders' equity
Common stock 11,164 5,549 5,615 101%
Surplus 6,965 11,472 (4,507) -39%
Accumulated other
Comprehensive (loss) income,
net of deferred income
taxes (450) (88) (362) 411%
Retained earnings 72,701 65,228 7,473 11%
--------- --------- --------
90,380 82,161 8,219 10%
Less common stock in treasury, at
cost (21,809) (19,397) (2,412) 12%
--------- --------- --------
Total shareholders' equity 68,571 62,764 5,807 9%
--------- --------- --------
Total liabilities and
shareholders' equity $665,236 $586,419 $78,817 13%
========= ========= ========
Outstanding standby letters of
credit $8,848 $10,182 ($1,334) -13%
(b) Reclassified for comparative purposes
Bryn Mawr Bank Corporation
Bryn Mawr, Pennsylvania
Quarter ended
Consolidated Statements of Income June 30 (unaudited)
($000 omitted(a))
Change
2004 2003(b) $ %
---------- ---------- -------- ----
Interest income:
Interest and fees on loans $7,368 $7,012 $356 5%
Interest on federal funds
sold 15 32 (17) -53%
Interest on investment
securities 240 210 30 14%
Dividend income 9 10 (1) -10%
---------- ---------- --------
Total interest
income 7,632 7,264 368 5%
Interest expense 1,083 1,099 (16) -1%
---------- ---------- --------
Net interest income 6,549 6,165 384 6%
Loan loss provision 188 250 (62) -25%
---------- ---------- --------
Net interest income after
loan loss provision 6,361 5,915 446 8%
---------- ---------- --------
Other income:
Fees for trust services 2,644 2,336 308 13%
Loan servicing and late
fees 397 452 (55) -12%
Other commissions and fees 90 97 (7) -7%
Service charges on deposits 478 481 (3) -1%
Gain on sale of loans 775 3,589 (2,814) -78%
Miscellaneous income 455 492 (37) -8%
---------- ---------- --------
Total other income 4,839 7,447 (2,608) -35%
---------- ---------- --------
Other expenses:
Salaries and employee
benefits 4,759 4,768 (9) 0%
Occupancy expense 1,033 938 95 10%
Other operating expenses 2,169 3,465 (1,296) -37%
---------- ---------- --------
Total other
expenses 7,961 9,171 (1,210) -13%
---------- ---------- --------
Income from continuing operations
before income taxes 3,239 4,191 (952) -23%
Applicable income taxes 1,110 1,454 (344) -24%
---------- ---------- --------
Income from continuing operations 2,129 2,737 (608) -22%
Income (loss) from discontinued
operations net of taxes 0 (1,928) 1,928 n/a
---------- ---------- --------
Net income 2,129 809 1,320 163%
========== ========== ========
Basic earnings per common share (c)
Income from continuing operations $0.25 $0.31 ($0.06) -19%
Income (loss) income from
discontinued operations $0.00 ($0.22) $0.22 n/a
-----------------------------------
Total basic earnings per common
share $0.25 $0.09 $0.16 178%
-----------------------------------
Diluted earnings per common share
(c)
Income from continuing operations $0.24 $0.31 ($0.07) -23%
Income (loss) from discontinued
operations $0.00 ($0.22) $0.22 n/a
-----------------------------------
Total diluted earnings per common
share $0.24 $0.09 $0.15 167%
-----------------------------------
Dividends declared per share (c) $0.10 $0.10 $0.000 0%
-----------------------------------
Weighted-average shares
outstanding 8,605,673 8,630,252 (24,579)
Dilutive potential common shares 172,397 132,378 40,019
---------- ---------- --------
Adjusted weighted-average shares 8,778,070 8,762,630 15,440
(a) Except for share and per share data
(b) Reclassified for comparative purposes
(c) Restated for 2 for 1 stock split effective October 01, 2003
Bryn Mawr Bank Corporation
Bryn Mawr, Pennsylvania
Period ended
Consolidated Statements of Income June 30 (unaudited)
($000 omitted(a))
Change
2004 2003(b) $ %
---------- ---------- -------- ----
Interest income:
Interest and fees on loans $14,546 $14,023 $523 4%
Interest on federal funds
sold 33 57 (24) -42%
Interest on investment
securities 487 439 48 11%
Dividend income 18 22 (4) -18%
---------- ---------- --------
Total interest
income 15,084 14,541 543 4%
Interest expense 2,166 2,195 (29) -1%
---------- ---------- --------
Net interest income 12,918 12,346 572 5%
Loan loss provision 375 500 (125) -25%
---------- ---------- --------
Net interest income after
loan loss provision 12,543 11,846 697 6%
---------- ---------- --------
Other income:
Fees for trust services 5,198 4,661 537 12%
Loan servicing and late
fees 911 866 45 5%
Other commissions and fees 157 206 (49) -24%
Service charges on deposits 954 960 (6) -1%
Gain on sale of loans 3,219 6,988 (3,769) -54%
Miscellaneous income 974 1,108 (134) -12%
---------- ---------- --------
Total other income 11,413 14,789 (3,376) -23%
---------- ---------- --------
Other expenses:
Salaries and employee
benefits 9,882 10,157 (275) -3%
Occupancy expense 1,974 1,923 51 3%
Other operating expenses 4,226 5,949 (1,723) -29%
---------- ---------- --------
Total other
expenses 16,082 18,029 (1,947) -11%
---------- ---------- --------
Income from continuing operations
before income taxes 7,874 8,606 (732) -9%
Applicable income taxes 2,725 3,008 (283) -9%
---------- ---------- --------
Income from continuing operations 5,149 5,598 (449) -8%
Income (loss) from discontinued
operations net of taxes 0 (2,120) 2,120 n/a
---------- ---------- --------
Net income 5,149 3,478 1,671 48%
========== ========== ========
Basic earnings per common share (c)
Income from continuing operations $0.60 $0.64 ($0.04) -6%
Income (loss) income from
discontinued operations $0.00 ($0.24) $0.24 n/a
-----------------------------------
Total basic earnings per common
share $0.60 $0.40 $0.20 50%
-----------------------------------
Diluted earnings per common share
(c)
Income from continuing operations $0.58 $0.64 ($0.06) -9%
Income (loss) from discontinued
operations $0.00 ($0.24) $0.24 n/a
-----------------------------------
Total diluted earnings per common
share $0.58 $0.40 $0.18 45%
-----------------------------------
Dividends declared per share (c) $0.20 $0.20 $0.00 0%
-----------------------------------
Weighted-average shares
outstanding 8,624,439 8,657,936 (33,497)
Dilutive potential common shares 186,593 129,184 57,409
---------- ---------- --------
Adjusted weighted-average shares 8,811,032 8,787,120 23,912
(a) Except for share and per share data
(b) Reclassified for comparative purposes
(c) Restated for 2 for 1 stock split effective October 01, 2003
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