Printer Friendly

BRYN MAWR BANK CORPORATION RESTORES DIVIDEND, ANNOUNCES EARNINGS

 BRYN MAWR, Pa., Jan. 21 /PRNewswire/ -- Based on the improving condition of the economy, the fifth consecutive quarter of solid earnings, and the improvement in the quality of the bank's assets, the board of directors of Bryn Mawr Bank Corporation (NASDAQ: BMTC) today declared a $.10 per share dividend, payable March 1, 1993, to shareholders of record at the close of business on Feb. 5. The corporation last paid a dividend on Aug. 1, 1991.
 Net Income
 Bryn Mawr Bank Corporation today reported net income of $779,000 for the fourth quarter of 1992, an increase of 5.6 percent over $738,000 in net income reported for fourth quarter 1991. Net income for the quarter was $.72 per share, based in 1,085,840 average shares outstanding, compared to $.68 per share for fourth quarter 1991, based on 1,085,110 average shares outstanding.
 The corporation also reported net income of $3,223,000 or $2.97 per share, for the 12 months ended Dec. 31, 1992, in contrast to a net loss of $5,443,000 or $5.02 per share, for 1991, based on 1,085,294 average shares outstanding in 1992 and 1,085,110 average shares outstanding in 1991. Excluding an extraordinary tax credit of $250,000, included in net income for 1992, which was the result of the use of net operating loss carryforwards that arose in 1991, net income for 1992 amounted to $2,973,000 or $2.74 per share.
 According to corporation President Robert L. Stevens, "The recovery of earnings in 1992, after the losses in 1991, resulted from a number of positive trends. First, as interest rates continued to decline, the bank lowered deposit interest rates more quickly than it decreased earning assets rates, which increased the net interest margin in 1992. Second, borrowers took advantage of declining interest rates by refinancing home mortgages, which brought additional fee income to the bank. And finally, nonperforming assets were reduced from $13,342,000 at year-end 1991 to $9,177,000 at year-end 1992. With this decrease, the bank maintained sufficient loan loss reserves while lowering its loan loss provision to $725,000 in 1992 from almost $7.5 million in 1991."
 Nonperforming Assets
 Total nonperforming assets, including nonperforming loans and other real estate owned (OREO), decreased 31 percent during 1992, from $13,342,000 at year-end 1991 to $9,177,000 by Dec. 31, 1992. Nonperforming loans decreased 28 percent, from $3,688,000 at year-end 1991 to $2,653,000 by Dec. 31, 1992. Nonperforming loans amounted to 2 percent of total loans at Dec. 31, 1991, and decreased to 1.5 percent by Dec. 31, 1992. OREO also declined during 1992, decreasing 32 percent from $9,654,000 at year-end 1991 to $6,524,000 by Dec. 31, 1992. The bank's loan loss reserve was $6,012,000 or 163 percent of nonperforming loans in 1991, as compared to $3,848,000 or 145 percent of nonperforming loans in 1992.
 Deposits
 Total deposits increased 2 percent to $276,185,000 in 1992 from $269,828,000 in 1991. Demand deposits grew 10 percent from $62,534,000 to $68,551,000. Though the savings and time deposits total remained relatively unchanged, the mix changed dramatically in 1992. As interest rates continued to drop, deposits in maturing certificates of deposit (CDs) were channeled into more liquid savings deposits. CDs decreased 31 percent from $69,337,000 in 1991 to $47,604,000 on 1992. Simultaneously, savings deposits increased 72 percent, from $32,594,000 in 1991 to $56,003,000 in 1992. This change in the mix of deposits combined with declining interest rates is primarily responsible for an increase in the net interest margin, to 4.8 percent in 1992 compared to 4.4 percent in 1991.
 Loans
 The bank's outstanding loans at Dec. 31, 1992, decreased 3 percent to $179,581,000 from $185,278,000 at year-end 1991. This decrease reflects the bank's continued effort to reduce its portfolio of real estate related loans. Real estate loans were reduced 30 percent, from $69,818,000 to $48,927,000 by year-end 1992. Partially offsetting this decrease was an 18 percent increase in commercial loans, from $40,241,000 to $47,541,000 and a 12 percent increase in consumer loans, from $67,523,000 to $75,666,000.
 Offsetting the decrease in the total loan portfolio, investment securities increased 54 percent from $43,320,000 at year-end 1991 to $66,842,000 in 1992. Federal funds sold decreased 37 percent, from $19,788,000 to $12,426,000.
 Income and Expense
 Total interest income decreased 10 percent from $23,785,000 for 1991 to $21,316,000 for 1992. The majority of this decrease resulted from an 11 percent drop in interest and fees on loans from $20,149,000 to $17,962,000. Interest on federal funds sold was reduced 62 percent, from $1,140,000 to $431,000. Interest on investment securities increased 19 percent, from $2,382,000 to $2,831,000. Offsetting the decline in interest income, interest expense on deposits decreased 33 percent, from $11,527,000 to $7,683,000, accounting for an 11 percent increase in net interest income before loan loss provision, to $13,633,000 in 1992 from $12,258,000 in 1991.
 Other income rose 18 percent, from $6,028,000 during 1991 to $7,134,000 during 1992. Trust fees grew 11 percent, from $3,610,000 to $4,016,000. Other operating income grew 29 percent, from $2,418,000 to $3,118,000. Primarily responsible for the increase in other operating income was an increase in mortgage origination activity, which brought about an increase in documentation preparation fees and a decrease in loan sale losses. Also included in other operating income was a $179,000 gain on the sale of investment securities owned by the bank.
 Other expenses decreased 14 percent from $18,965,000 for 1991 to $16,256,000 for 1992. Salaries and employee benefits were down 8 percent, from $8,685,000 to $7,967,000. Other operating expenses were down 25 percent, from $8,022,000 to $6,041,000 primarily due to a $2,471,000 reduction in expenses related to writedowns of OREO in 1992, compared to 1991 levels.
 Capital
 Reflecting the effect of the net income reported for 1992, the corporation's capital to asset ratio grew to 7.1 percent at year-end 1992, compared to 6.2 percent at Dec. 31, 1991. As of Dec. 31, 1992, the bank's total risk based capital ratio amounted to 10.62 percent making the bank a well capitalized bank, as recently defined by the FDIC as a part of its new criteria for risk-related deposit premiums.
 /delval/
 -0- 1/21/93
 /CONTACT: Robert L. Stevens, president, 215-526-2300, or evenings, 215-296-5539, or Joseph W. Rebl, treasurer and assistant secretary, 215-526-2466, or evenings, 215-828-7798/
 (BMTC)


CO: Bryn Mawr Bank Corporation ST: Pennsylvania IN: FIN SU: ERN DIV

JS-LJ -- PH021 -- 7389 01/21/93 12:03 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 21, 1993
Words:1184
Previous Article:TIME WARNER INC. DECLARES DIVIDENDS
Next Article:NEAPOLITAN PIZZA DEBUTS AT LOCAL PIZZA HUT; NEAPOLITAN OPERA MAN COMES TO TOWN TO SING PIZZA'S PRAISES
Topics:


Related Articles
BRYN MAWR TRUST ACQUIRES LOAN PORTFOLIO
BRYN MAWR BANK CORPORATION ANNOUNCES EARNINGS
BRYN MAWR BANK CORPORATION ANNOUNCES EARNINGS
BRYN MAWR BANK CORPORATION REPORTS STRONG FIRST QUARTER EARNINGS
BRYN MAWR BANK CORPORATION ANNOUNCES SECOND QUARTER EARNINGS
BRYN MAWR BANK CORPORATION ANNOUNCES DIVIDEND
BRYN MAWR BANK CORPORATION INCREASES DIVIDEND BASED ON RECORD EARNINGS IN 1995
Community Banks, Inc. and Bryn Mawr Bank Corporation Announce Investment Management Agreement.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters