Attached files
 Second
Quarter 2011
Update
June 30, 2011
Bryn Mawr Bank
Corporation
NASDAQ: BMTC
Strong -
Stable -
Secure
Exhibit 99.3 |
 1
Safe Harbor
This presentation contains statements which, to the extent that they are not
recitations of historical fact may constitute forward-looking statements for
purposes of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended.
Please see the section titled Safe Harbor at the end of the presentation for more
information regarding these types of statements.
The
information
contained
in
this
presentation
is
correct
only
as
of
July
28,
2011
Our
business, financial condition, results of operations and prospects may have changed
since that date, and we do not undertake to update such information.
. |
 2
Bryn Mawr Bank Corporation
Profile
Founded in 1889 –
121 year history
A unique business model with a traditional commercial bank ($1.7
billion)
and a trust company ($4.8 billion) under one roof at June 30, 2011
Wholly
owned
subsidiary
–
The
Bryn
Mawr
Trust
Company
Largest community bank in Philadelphia’s affluent western suburbs
Celebrated 25 years on the NASDAQ in August 2010 |
 3
Southeast PA Footprint
•
17 BMTC Full Service Branch Locations |
 4
Investment
Considerations
Quarterly dividend of $0.15 per share
A great brand & franchise
Solid financial fundamentals and well capitalized
Outstanding target market demographics
New business initiatives driving growth
$4.8 billion wealth management business that provides a significant
source of non-interest income |
 5
Six
Month
Performance
at
June
30,
2011
Closing price on December 31, 2010:
$17.45
Closing price on June 30, 2011:
$20.25
2011 dividends declared per share:
$0.30
Security or Index
YTD 2011 Return
Dividend Yield**
BMTC*
17.71%
2.86%
NASDAQ Bank Index*
-3.88%
1.92%
KBW Bank Index*
-6.76%
1.43%
*Source: Bloomberg
**Trailing 12-month period |
 6
Growth Initiatives |
 7
2011 Strategies
3-5-3 Strategic Plan
$3
billion
in
banking
assets
-
$5
billion
in
wealth
assets
–
3
years
(Spring 2013)
Organic
growth
–
opportunistic
expansion
Inorganic growth: Additional acquisitions accretive to earnings in
first 12 months (excluding merger costs)
The Corporation intends to implement or continuing implementing the following
strategic initiatives over the next few years:
|
 8
2011 Strategies -
continued
Focus on the net interest margin
Continued emphasis on strong credit quality
Raise capital as needed
Lower the efficiency ratio
Complete an additional bank and/or wealth acquisition
|
 9
Financial Review |
 10
Financial Highlights
2
nd
Qtr
2011
1
st
Qtr
2011
4
th
Qtr
2010
3
rd
Qtr
2010
2
nd
Qtr
2010
Portfolio Loans & Leases
($ in millions)
$1,253
$1,219
$1,197
$1,176
$899
Total Deposits
($ in millions)
$1,337
$1,316
$1,341
$1,260
$953
Total Wealth Assets
($ in billions)
$4.83
$3.60
$3.41
$3.29
$3.10
Tangible Book Value Per Share
$10.91
$11.65
$11.21
$11.03
$11.62
Tangible Common Equity Ratio
8.31%
8.65%
8.01%
7.95%
9.66%*
*Tangible common equity ratio at 6/30/2010 includes the net proceeds of the $24.7
million registered direct stock offering and excludes the effect of the
7/1/2010 FKF merger. |
 11
Financial Highlights -
continued
2
nd
Qtr
2011
1
st
Qtr
2011
4
th
Qtr
2010
3
rd
Qtr
2010
2
nd
Qtr
2010
Net Income (Loss)
($ in millions)
$4.81
$4.72
$5.57
$(1.02)*
$2.41
Dividends Declared
$0.15
$0.15
$0.14
$0.14
$0.14
Diluted Earnings (Loss) Per
Common Share
$0.38
$0.38
$0.46
$(0.08)
$0.25
Market Capitalization
($ in millions)
$262.1
$257.9
$212.8
$210.0
$177.0
Efficiency Ratio
62%
63%
60%
89%
71%
* Includes approximately $4.3 million of pretax merger and due diligence related
expenses. |
 12
Quarterly
Net
Interest
Margin
On a tax-equivalent basis |
 13
Quarterly Non-Interest Income
(As a % of Total Revenue) |
 14
Capital Considerations
Maintains a “well capitalized”
capital position
Active Dividend Reinvestment and Stock Purchase Plan with Request for
Waiver program
Selectively
add
capital
as
needed
to
maintain
capital
levels
and
fund
asset
growth and acquisitions |
 15
Capital Position -
Bryn Mawr Bank Corporation
6/30/2011
3/31/2011
12/31/2010
Tier I
11.55%
12.07%
11.30%
Total (Tier II)
14.05%
14.52%
13.71%
Tier I Leverage
9.36%
9.80%
8.85%
Tangible Common
Equity
8.31%
8.65%
8.01% |
 16
Wealth Division Review |
 17
Wealth Assets Under Management, Administration,
Supervision and Brokerage
($ in billions)
Excludes
Community
Bank’s
assets
from
2006
-
2007
$2.18
$2.28
$2.15
$2.87
$3.41
$4.83
$1.2
$2.2
$3.2
$4.2
$5.2
2006
2007
2008
2009
2010
6/30/2011 |
 18
Wealth Management Fees
($ in millions)
Excludes
Community
Bank’s
fees
from
2006
-
2007
$12.4
$13.5
$13.8
$14.2
$15.5
$9.3
$2.0
$6.0
$10.0
$14.0
$18.0
2006
2007
2008
2009
2010
6/30/2011 |
 19
Acquisition of Private Wealth Management
Group of Hershey Trust Company
Completed May 27, 2011
Total purchase price of $18.41 million
$8.15
million
cash
at
closing,
$6.7
million
unregistered
shares,
$3.6
million
in escrow for contingent payments
Added approximately $1.1 billion in assets under management to BMTC
Wealth Division and 500 relationships
Revenue of $776 thousand recorded from May 27, 2011 through June
30,
2011 |
 20
Wealth Division Highlights
Bryn Mawr Asset Management
“Lift out”
strategy
Four investment advisers hired
Approximately $238 million in assets as of June 30, 2011
Additional opportunities being evaluated
Institutional Trust and Escrow Services
Strong pipeline of new business |
 21
BMTC of Delaware
The Delaware Advantage
Directed trusts
$556 million in assets at June 30, 2011
New location –
Greenville, DE
Lau Associates
$627 million in assets at June 30, 2011
New location –
Greenville, DE
Wealth Division Highlights -
continued |
 22
Credit Review |
 23
Portfolio Loan & Lease Growth
($ in millions)
2010 includes the addition of the First Keystone loan portfolio.
$681
$803
$900
$886
$1,197
$1,253
$200
$400
$600
$800
$1,000
$1,200
$1,400
2006
2007
2008
2009
2010
6/30/2011 |
 24
Loan Composition at June 30, 2011
($ in millions)
$404
$258
$222
$280
$56
$33
Commercial Mortgages
Commercial & Industrial
Home Equity Lines & Loans
& Consumer Loans
Residential Mortgages
Construction
Leases |
 25
Asset Quality Data –
as a percentage
2
nd
Qtr
2011
1
st
Qtr
2011
4
th
Qtr
2010
3
rd
Qtr
2010
2
nd
Qtr
2010
Non-Performing Loans as a
% of Portfolio Loans and
Leases
1.29%
0.88%
0.79%
0.82%
1.11%
Allowance for Loan and
Lease Losses
0.90%*
0.87%*
0.86%*
0.88%*
1.09%
Allowance for Originated
Loans and Leases**
1.10%
1.08%
1.08%
1.12%
1.09%
Non-Performing Assets as a
% of Assets
0.97%
0.77%
0.69%
0.63%
0.93%
*Includes the acquired FKF loan portfolio, recorded at fair value, without its
previously recorded allowance for loan and lease loss.
**The presentation of this non-GAAP financial measure provides useful
supplemental information that is essential to a proper understanding of the
financial condition of the Corporation. This non-GAAP measure should not be
viewed as a substitute for the financial measures in accordance with GAAP. See
slide 34 for a reconcilement. |
 26
Asset Quality Data –
in dollars
($ in millions)
2
nd
Qtr
2011
1
st
Qtr
2011
4
th
Qtr
2010
3
rd
Qtr
2010
2
nd
Qtr
2010
Provision for Loan and
Lease Losses
$1,919
$1,285
$1,511
$4,236
$994
Allowance for Loan and
Lease Losses
$11,341
$10,648
$10,275
$10,297
$9,841
Net Charge-Offs
$1,226
$912
$1,533
$3,780
$893
Nonaccrual Loans and
Leases
$16,128
$10,776
$9,497
$8,709
$9,072
Total Non-Performing
Assets
$16,939
$13,122
$12,034
$10,781
$11,934 |
 27
Small Ticket National Leasing Business
Leases outstanding: $33 million at June 30, 2011
Average yield of 10.2% at June 30, 2011
Delinquency rate has fallen 174 basis points over the past 12 months to
0.89% at June 30, 2011
Top 6 States are 53% of outstanding balance: CA, NY, NJ, TX, PA,
FL |
 28
Summary
Outstanding franchise in a stable market
Focus on Wealth Services, Business Banking and Private Banking
Investing in growth opportunities today for earnings growth
tomorrow
Sound business strategy, strong asset quality, well capitalized
and solid risk management procedures serve as a foundation for
potential strategic expansion |
 29
Thank You
Joseph Keefer, EVP
610-581-4869
jkeefer@bmtc.com
Duncan Smith, CFO
610-526 –2466
jdsmith@bmtc.com
Ted Peters, Chairman
610-581-4800
tpeters@bmtc.com
Frank Leto, EVP
610-581-4730
fleto@bmtc.com
Aaron Strenkoski, VP –
Investments / Shareholder Relations –
610-581-4822 –
astrenkoski@bmtc.com |
 30
This presentation contains statements which, to the extent that they are not
recitations of historical fact may constitute forward-looking statements
for purposes of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended. Such forward-looking statements may
include financial and other projections as well as statements regarding Bryn
Mawr Bank Corporation’s (the “Corporation”) that may include future
plans, objectives, performance, revenues, growth, profits, operating
expenses or the Corporation’s underlying assumptions. The words
“may”, “would”, “should”, “could”, “will”, “likely”, “possibly”, “expect,”
“anticipate,”
“intend”, “estimate”, “target”,
“potentially”, “probably”, “outlook”, “predict”,
“contemplate”,
“continue”,
“plan”,
“forecast”,
“project”
and
“believe”
or
other
similar
words,
phrases
or concepts may identify forward-looking statements. Persons reading or present
at this presentation are cautioned that such statements are only
predictions, and that the Corporation’s actual future results or
performance may be materially different. Such forward-looking statements
involve known and unknown risks and uncertainties. A number of factors, many
of which are beyond the Corporation’s control, could cause our actual results,
events or developments, or industry results, to be materially different from any
future results, events
or
developments
expressed,
implied
or
anticipated
by
such
forward-looking
statements,
and so our business and financial condition and results of operations could be
materially and adversely affected.
Safe Harbor |
 31
Safe Harbor (continued)
Such factors include, among others, our need for capital, our ability to control
operating costs and expenses, and to manage loan and lease delinquency
rates; the credit risks of lending activities and overall quality of the
composition of our loan, lease and securities portfolio; the impact of
economic conditions, consumer and business spending habits, and real estate market
conditions on
our
business
and
in
our
market
area;
changes
in
the
levels
of
general
interest
rates,
deposit
interest rates, or net interest margin and funding sources; changes in banking
regulations and policies and the possibility that any banking agency
approvals we might require for certain activities will not be obtained in a
timely manner or at all or will be conditioned in a manner that would impair
our ability to implement our business plans; changes in accounting policies and
practices; the inability of key third-party providers to perform their
obligations to us; our ability to attract and retain key personnel;
competition in our marketplace; war or terrorist activities; material
differences in the actual financial results, cost savings and revenue enhancements
associated with
our
acquisition
of
First
Keystone
Financial,
Inc.
and
First
Keystone
Bank
and
acquisition
of
the Private Wealth Management Group of the Hershey Trust Company; and other factors
as described in our securities filings. All forward-looking statements
and information made herein are based
on
Management’s
current
beliefs
and
assumptions
as
of
July
28,
2011
and
speak
only
as
of that date. The Corporation does not undertake to update forward-looking
statements. |
 32
Safe Harbor (continued)
For a complete discussion of the assumptions, risks and uncertainties related to
our business, you are encouraged to review our filings with the Securities
and Exchange Commission, including our most recent annual report on Form
10-K, as well as any changes in risk factors that we may identify in our
quarterly or other reports filed with the SEC. This
presentation
is
for
discussion
purposes
only,
and
shall
not
constitute
any
offer
to
sell
or
the
solicitation
of
an
offer
to
buy
any
security,
nor
is
it
intended
to
give
rise
to
any
legal
relationship
between
the
Corporation
and
you
or
any
other
person,
nor
is
it
a
recommendation
to
buy
any
securities or enter into any transaction with the Corporation.
The information contained herein is preliminary and material changes to such
information may be made at any time. If any offer of securities is made, it
shall be made pursuant to a definitive offering memorandum or prospectus
(“Offering Memorandum”) prepared by or on behalf of the
Corporation, which would contain material information not contained herein and
which shall supersede, amend and supplement this information in its
entirety. Any decision to invest in the Corporation’s securities
should be made after reviewing an Offering Memorandum, conducting such
investigations as the investor deems necessary or appropriate, and consulting the investor’s
own legal, accounting, tax, and other advisors in order to make an independent
determination of the suitability and consequences of an investment in such
securities. |
 33
Safe Harbor (continued)
No offer to purchase securities of the Corporation will be made or accepted prior
to receipt by an investor of an Offering Memorandum and relevant
subscription documentation, all of which must be reviewed together with the
Corporation’s then-current financial statements and, with respect to
the subscription documentation, completed and returned to the Corporation in its
entirety. Unless purchasing in an offering of securities registered
pursuant to the Securities Act of 1933, as amended,
all
investors
must
be
“accredited
investors”
as
defined
in
the
securities
laws
of
the
United States before they can invest in the Corporation.
|
 34
Non-GAAP Allowance Reconcilement
2011
2011
2010
2010
2010
2Q
1Q
4Q
3Q
2Q
$ in thousands
Allowance for loan and
lease losses (GAAP )
$ 11,341
$ 10,648
$ 10,275
$ 10,297
$ 9,841
Less: allowance for
loan and lease losses
related to acquired
loans
55
28
-
-
-
Allowance for loan and
lease losses related to
originated loans and
leases (non-GAAP)
$ 11,286
$ 10,620
$ 10,275
$ 10,297
$ 9,841
Total portfolio loans and
leases (GAAP )
$ 1,253,448
$ 1,219,449
$ 1,196,717
$ 1,176,438
$ 899,290
Less: acquired loans
223,459
233,435
244,833
259,982
-
Total originated loans
and leases (non-GAAP)
$ 1,029,989
$ 986,014
$ 951,884
$ 916,456
$ 899,290
Allowance for loan and
lease losses -
GAAP
0.90%
0.87%
0.86%
0.88%
1.09%
Allowance for loan and
lease losses (non-
GAAP)
1.10%
1.08%
1.08%
1.12%
1.09% |