BRYN MAWR, Pa., April 18, 2019 – Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $10.7 million, or $0.53 diluted earnings per share for the three months ended March 31, 2019, as compared to net income of $17.1 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, and $15.3 million, or $0.75 diluted earnings per share, for the three months ended March 31, 2018.
On a non-GAAP basis, core net income, which excludes one-time costs associated with our voluntary Years of Service Incentive Program (the “Incentive Program”), income tax charges incurred in connection with the Tax Cuts and Jobs Act (“Tax Reform”), due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 diluted earnings per share, for the three months ended March 31, 2019, as compared to $17.2 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, and $19.3 million, or $0.94 diluted earnings per share, for the three months ended March 31, 2018. 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 excited with the start of 2019 as we continue to execute upon our long-term strategic goals,” commented Frank Leto, President and Chief Executive Officer, continuing, “Part of our long-term plan is ensuring BMT’s sustainability through proper succession planning. To facilitate the execution of this goal, the Board and executive management team created a one-time, voluntary Years of Service Incentive Program to reward certain long-tenured employees with enhanced benefits while providing BMT with the ability to manage a controlled transition process related to the leadership and knowledge held by individuals who chose to participate. We are proud to have been able to offer this Incentive Program, recognizing that it is our people who have laid the foundation on which we have succeeded for the past 130 years, and it is our people who will enable us to continue to grow and succeed in the future.”
Mr. Leto then continued, “Our first quarter financials remained strong with loan growth of $96 million, or 11% on an annualized basis from year-end, and wealth assets under management approaching $15 billion. Our capital markets team also continues to provide strong fee-based revenue, while credit quality remains strong with the first quarter provision expense primarily impacted by a single credit. With regard to the Incentive Program, we expect to realize long-term savings and recoup the cost of the Incentive Program in approximately three years. I am also pleased to announce that the Board of Directors has authorized a new stock repurchase program under which the Corporation can repurchase up to 1,000,000 shares from time to time at an aggregate purchase price not to exceed $45 million (the “New Repurchase Program”). The New Repurchase Program will become effective upon the completion of the Corporation’s existing 2015 stock repurchase program.”
The Board of Directors of the Corporation declared a quarterly dividend of $0.25 per share, payable June 1, 2019 to shareholders of record as of May 1, 2019.