BMTC: NIM Compression Drives Reduced EPS Estimates, Reduced Target Price; Reiterating Outperform Rating.
Bryn Mawr reported 2Q19 net income of $15.8 million, up $5.1 million or 47.8% compared to the $10.7 million recorded in 1Q19. On a per share basis, 2Q19 EPS was $0.78, up $0.25 from the $0.53 recorded in the prior quarter. The prior quarter included $4.5 million pre-tax expenses stemming from an employee incentive program implemented in 1Q19, which translates to $3.6 million or $0.17 after-tax. The adjusted or “core” 1Q19 results were $0.70. In any case, reported 2Q19 EPS fell $0.04 short of our $0.82 estimate and $0.03 below the median Street estimate of $0.81. Higher-than projected noninterest income and lower noninterest expenses and loan loss provision could not make up for a sharp drop in net interest income due to NIM compression.