Attached files
| file | filename |
|---|---|
| 8-K - BRYN MAWR BANK CORPORATION -- FORM 8-K - BRYN MAWR BANK CORP | d385170d8k.htm |
| EX-99.2 - SCRIPT FOR JULY 27, 2012 EARNINGS CONFERENCE CALL - BRYN MAWR BANK CORP | d385170dex992.htm |
 Second Quarter
2012
Update
June 30, 2012
Bryn Mawr Bank
Corporation
NASDAQ: BMTC
Strong -
Stable -
Secure
Exhibit 99.1 |
 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
26,
2012.
Our
business, financial condition, results of operations and prospects may have changed
since that date, and we do not undertake to update such information.
1 |
 2
Bryn
Mawr
Bank
Corporation
Profile
Founded in 1889 –
122 year history
A unique business model with a traditional commercial bank ($1.9
billion)
and a trust company ($6.3 billion) under one roof at June 30, 2012
Wholly owned subsidiary –
The Bryn Mawr Trust Company
Largest community bank in Philadelphia’s affluent western suburbs
3 wealth acquisitions and 1 bank acquisition completed since 2008
|
 Southeast PA / DE Branch Footprint
3 |
 4
Investment Considerations
Quarterly dividend of $0.16 per share
Year to Date at June 30, 2012:
Return on Average Assets (ROA):
1.17%
Return on Average Equity (ROE):
11.11%
The Corporation’s shareholders’
equity grew $11.7 million or 6.3% from
December 31, 2011 to June 30, 2012
New business initiatives driving growth
$6.3 billion wealth management business that provides a significant
source of non-interest income |
 Comments on BMTC from
Bank Analysts Well Positioned to Outperform in Sustained Low Rate Environment –
BMTC
(Sterne Agee, April 2012)
Advocate an overweight position in BMTC given its strong growth
prospects, benign credit costs, and positive operating leverage
potential
(Keefe, Bruyette & Woods, February 2012)
Bryn Mawr continues to be an attractive name, given its premium
profitability and substantial franchise value
(Stifel Nicolaus, April 2012)
The Company has better profitability compared to peers, manageable
credit issues and a healthy capital base
(Sandler O’Neill + Partners, February 2012)
5 |
 Second Quarter 2012 BMTC
Stock Performance
Closing price on December 30, 2011:
$19.49
Closing price on June 30, 2012:
$21.07
Dividends declared per share –
6 months 2012:
$0.32
Security or Index
Year to Date
2012 Return
Dividend Yield**
BMTC*
9.84%
2.94%
NASDAQ Bank Index*
11.52%
2.05%
KBW Bank Index*
17.48%
2.00%
*Source: Bloomberg
**Trailing 12-month period
6 |
 Consistent BMTC Annual Dividend
Year
Annual
Dividend
Dividend Yield
Year-End
Dividend Payout
Ratio
2008
$0.54
2.69%
50.0%
2009
$0.56
3.71%
47.5%
2010
$0.56
3.21%
65.9%*
2011
$0.60
3.08%
39.0%
2012
$0.64**
---
---
*Excluding the $5.7 million of merger related and due diligence
expense, the dividend payout ratio was 46.0%.
** Expected annualized 2012 dividend.
7 |
 Growth
Initiatives |
 2012
Strategic Initiatives 3-8-3 Strategic Plan
$3 billion in Banking assets -
$8 billion in Wealth assets –
3 years
(December 2014)
Approved by the Board of Directors on May 8, 2012
Organic growth –
opportunistic expansion
Inorganic
growth
criterion
-
Acquisitions
to
be
strategic
and
accretive to earnings per share in first 12 months (excluding merger
costs)
9 |
 2012
Strategic Initiatives - continued
Focus on the net interest margin
Concentrate on growing fee based income
Continued emphasis on strong credit quality
Integrate, streamline and assimilate recent acquisitions into more
effective and efficient wealth operations
Close the First Bank of Delaware acquisition
10 |
 Purchase of Deposits and Loans from First
Bank of Delaware
Announced May 2, 2012
Purchasing approximately $100 million of deposits and $100 million of loans
Loan Composition:
Commercial Mortgages:
60%
Commercial and Industrial:
15%
Construction and Land:
20%
Consumer and Other:
5%
Deposits:
Core transaction deposits:
25%
Other transaction deposits:
15%
Certificates of Deposit:
60%
11
($14 million at a discount of 14%; balance at par)
(effective deposit premium of 1%) |
 Purchase of Deposits and Loans from First
Bank of Delaware -
continued
Opportunity to enter an attractive market with an established loan portfolio
After-tax transaction costs estimated at $1.2 million
Establishing
a
branch
location
in
Wilmington,
DE
–
within
7
miles
of
BMTC
of Delaware and Lau Associates
Expected
to
close
in
the
4
th
quarter
of
2012
pending
certain
conditions
and
regulatory approvals
12 |
 13
Purchase of Deposits and Loans from First
Bank of Delaware -
continued
Branch is located along heavily traveled Wilmington Pike (Route 202)
Compliments Lau Associates and Bryn Mawr Trust Company of Delaware
First Bank of Delaware branch presents a market penetrating opportunity to obtain
an established local presence
Branch will serve as a launching pad for additional branches in the market
Strategically
Compelling
Low Risk
Transaction
Detailed due diligence completed with detailed underwriting (approx. 86% coverage
of loan portfolio)
Acquired loans are performing and loan marks conservative
Substantial protection via Purchase and Assumption Agreement
Financially
Attractive
Nearly 100% loan / deposit ratio acquired
Material EPS accretion
Nominal tangible book value dilution
Internal rate of return in excess of internal thresholds
13 |
 Financial
Review |
 15
Financial Highlights
2
Qtr
2012
1
Qtr
2012
4
Qtr
2011
3
Qtr
2011
2
Qtr
2011
Total Assets
($ in billions)
$1.85
$1.84
$1.78
$1.76
$1.74
Portfolio Loans & Leases
($ in billions)
$1.30
$1.30
$1.29
$1.28
$1.25
Total Deposits
($ in billions)
$1.43
$1.43
$1.38
$1.35
$1.34
Total Wealth Assets
($ in billions)
$6.28
$5.15
$4.83
$4.50
$4.83
Market Capitalization
($ in millions)
$280.1
$297.4
$253.2
$215.0
$262.1
Net Income
($ in millions)
$5.26
$5.24
$5.17
$5.02
$4.81
nd
st
th
rd
nd |
 16
Financial Highlights -
continued
2 Qtr
2012
1 Qtr
2012
4 Qtr
2011
3 Qtr
2011
2 Qtr
2011
Diluted Earnings Per
Common Share
$0.40
$0.40
$0.40
$0.39
$0.38
Dividends Declared
$0.16
$0.16
$0.15
$0.15
$0.15
Book Value Per Share
$14.75
$14.43
$14.09
$14.30
$14.17
Tangible Book Value Per
Share
$10.82
$11.25
$10.82
$11.11
$10.91
Tangible Common Equity
Ratio
8.14%
8.30%
8.27%
8.48%
8.31%
Efficiency Ratio
66.9%
64.7%
64.8%
64.1%
62.0%
Efficiency Ratio
(excluding merger/due diligence costs)
63.5%
63.9%
65.1%
63.6%
54.4%
nd
st
th
rd
nd |
 17
Quarterly Net Interest Margin
On a tax-equivalent basis |
 18
Quarterly Non-Interest Income
(As a % of Total Revenue) |
 19
Capital Considerations
Maintain a “well capitalized”
capital position including a target tangible
common equity to tangible asset ratio of 8.00%
Selectively
add
capital
as
needed
to
maintain
capital
levels
and
fund
asset
growth and acquisitions. Place more emphasis on retained earnings.
Reviewing proposed Basel III capital rules
Shelf Registration (Form S-3) of $150 million renewed on April 11, 2012
Dividend
Reinvestment
and
Direct
Stock
Purchase
Plan
with
Waiver
was
renewed on April 27, 2012 with 1.5 million shares |
 Capital Position
- Bryn Mawr Bank Corporation
**On 12/19/2011 the Corporation prepaid $12 million of junior subordinated debt acquired
during the First Keystone Bank acquisition which had a rate of 9.7%. The prepayment
reduced Tier I capital by $12 million with no effect on the tangible common equity
ratio. *June
30,
2012
figures
reflect
the
acquisition
of
Davidson
Trust
Company
and
intangible
assets
of
$11.0
million.
20
6/30/2012*
12/31/2011**
6/30/2011
Tier I
11.38%
11.26%
11.55%
Total (Tier II)
13.98%
13.83%
14.05%
Tier I Leverage
8.87%
8.97%
9.36%
Tangible Common
Equity
8.14%
8.27%
8.31% |
 2007
2008
2009
2010
2011
2nd Qtr
2012**
21
Return on Average Equity and Average Tangible
Equity (a Non-GAAP Measure*)
-----
Return on Average Tangible
Equity
-----
Return on Average Equity
*Tangible
equity
equals
equity
minus
goodwill
and
other
intangible
assets
** Annualized
18.5%
16.5%
14.5%
12.5%
10.5%
8.5%
6.5%
4.5% |
 22
Return on Average Equity and Average Tangible Equity
Excluding Tax-Effected Due Diligence and Merger-Related
Expenses (a Non-GAAP Measure*)
*The returns on average tangible equity and average equity were calculated by
adding back to reported net income (a GAAP measure), the tax-effected
due diligence and merger-related expenses for the years referenced above. These non-GAAP ratios provide useful
supplemental information that is essential to understanding the Corporation’s
financial results. ** Annualized
----
Return on Average Tangible Equity
18.5%
16.5%
14.5%
12.5%
10.5%
8.5%
6.5%
4.5%
2007
2008
2009
2010
2011
2nd Qtr
2012**
Return on Average Equity
----
22 |
 Wealth
Division
Review |
 24
Wealth Assets Under Management, Administration,
Supervision and Brokerage
($ in billions)
Excludes Community Bank’s assets in 2007
2007
2008
2009
2010
2011
2nd Qtr
2012
$6.5
$5.5
$4.5
$3.5
$2.5
$1.5
$2.28
$2.15
$2.87
$3.41
$4.83
$ 6.28 |
 25
Wealth Management Fees
($ in millions)
*
$25.0
$20.0
$15.0
$10.0
$5.0
$0.0
2007
$13.5
$13.8
$14.2
$15.5
$21.7
$13.4
2008
2009
2010
2011
2nd Qtr
2012 |
 Wealth Division Highlights
Wealth Management
$4.6 billion in assets
Integrated solutions to protect and preserve wealth
Estate Planning
Retirement Planning
Investment Management
Custody Services
Philanthropic Services
Fiduciary Trust Services
Long standing client relationships
Completed Davidson Trust Company acquisition on May 15, 2012
26 |
 Wealth Division Highlights -
continued
Bryn Mawr Asset Management (Bryn Mawr, PA)
$293 million in assets
Brokerage services, asset allocation, objective advice
“Lift Out”
strategy with other opportunities being continuously evaluated
BMTC of Delaware (Greenville, DE)
$860 million in assets
Provides
corporate
fiduciary
and
administrative trustee services under
Delaware law and the full spectrum of tax advantaged strategies
Lau Associates (Greenville, DE)
$586 million in assets
Fee-only, independent multi-family office providing highly personalized
service and sophisticated financial planning
27 |
 Credit
Review |
 Portfolio Loan & Lease Growth
($ in millions)
* From 2010 forward, includes the addition of the First Keystone
loan portfolio.
29
2nd Qtr 2012
2011
2010*
2009
2008
2007
$500
$700
$900
$1,100
$1,300
$1,500
$1,297
$1,295
$1,197
$886
$900
$803 |
 30
Loan Composition at June 30, 2012
($ in millions)
Total loans and leases of $1.297 billion
$304
$219
$264
$445
Commercial Mortgages
(35%)
Commercial & Industrial
(20%)
Home Equity & Consumer
Loans (17%)
Residential
Mortgages
(23%)
Construction
(3%)
Leases
(2%)
$34
$31
30 |
 Quarterly Asset Quality Data
2
Qtr
2012
1
Qtr
2012
4
Qtr
2011
3
Qtr
2011
2
Qtr
2011
Non-Performing Loans as a % of
Portfolio Loans and Leases
1.41%
1.73%
1.11%
1.11%
1.29%
Allowance as a % of Portfolio
Loans and Leases
1.01%
1.00%
0.98%
0.91%
0.90%
Non-Performing Assets as a % of
Assets
1.03%
1.25%
0.84%
0.88%
0.97%
Annualized Net Charge-Offs as a
% of average quarterly loans and
leases
0.28%
0.23%
-0.01%
0.49%
0.40%
31
rd
th
st
nd
nd |
 Loan
and Lease Updates Second quarter 2012 loan pipeline looks promising
Recent hires of experienced lenders has been beneficial as they have
brought increased business to the Bank
The First Bank of Delaware transaction will add approximately $100 million
of quality loans
The lease portfolio at June 30, 2012 is $31 million, has an average yield of
10.06% and a delinquency rate of 0.28%
32 |
 Summary
Outstanding franchise in a stable market
Focus on Wealth Services, Business Banking and Private Banking
Investing
in
growth
opportunities
today
for
anticipated
earnings
growth
tomorrow
Sound business strategy, strong asset quality, well capitalized and solid
risk management procedures serve as a foundation for potential strategic
expansion
33 |
 Ted
Peters, Chairman 610-581-4800
tpeters@bmtc.com
Frank Leto, EVP
610-581-4730
fleto@bmtc.com
Joseph Keefer, EVP
610-581-4869
jkeefer@bmtc.com
Duncan Smith, CFO
610-526 –2466
jdsmith@bmtc.com
Aaron Strenkoski, VP –
Investments & Shareholder Relations –
610-581-4822 –
astrenkoski@bmtc.com
34 |
 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
35 |
 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 acquisitions including our contemplated acquisition of
the First Bank of Delaware; 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 26, 2012
and speak only as of that date. The Corporation does not undertake to update
forward-looking statements.
36 |
 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. 37 |
 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.
38
Safe Harbor (continued) |