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| 8-K - FORM 8-K - BRYN MAWR BANK CORP | d617992d8k.htm |
 Third Quarter
2013
Update
September 30, 2013
(as of October 25, 2013)
Bryn Mawr Bank
Corporation
NASDAQ: BMTC
Strong -
Stable -
Secure
Exhibit 99.1 |
 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 beginning on slide 32 for more
information regarding these types of statements.
The
information
contained
in
this
presentation
is
correct
only
as
of
October
25,
2013.
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 –
125 year history
A unique business model with a traditional commercial bank ($2.1
billion)
and a trust company ($7.1 billion) under one roof at September 30, 2013
Wholly-owned subsidiary –
The Bryn Mawr Trust Company
Largest community bank in Philadelphia’s affluent western suburbs
Three wealth acquisitions and two bank acquisitions completed since 2008
|
 3
Southeast PA / DE Branch Footprint
•
19 BMTC Full-Service Branch Locations |
 4
Investment Considerations
Quarterly dividend of $0.18 per share (Increased 5.9% from $0.17
per
share on October 24, 2013)
Profitability Ratios:
Profitability Ratios, Excluding Tax-Effected Due Diligence and
Merger- Related Expenses (non-GAAP measures)*:
* See Non-GAAP Measures disclosure beginning on slide 36
|
 5
Comments on BMTC from Bank Analysts
“Fee income growth and NIM expansion drive substantial EPS beat.”
(Merion Capital Group, July 2013)
“Continue to build solid franchise.”
(Janney, July 2013)
“Remains one of our top small-cap ideas.”
(Keefe, Bruyette & Woods, April 2013)
“BMTC surprises to the upside with strong 2Q results.”
(Sterne Agee, July 2013) |
 6
3
rd
Quarter 2013 BMTC Stock Performance
Closing price on December 31, 2012:
$22.27
Closing price on September 30, 2013:
$26.97
Dividends declared per share –
9 months 2013:
$0.52
Security or Index
Year to Date
2013 Return
3 Year Annualized
Return**
Trailing 12-Month
Dividend Yield
BMTC*
23.75%
19.67%
2.48%
NASDAQ Bank Index*
26.00%
14.58%
2.05%
KBW Bank Index*
23.22%
12.50%
1.87%
*Source: Bloomberg
** Annualized return -9/30/2010 to 9/30/2013 |
 7
Consistent BMTC Annual Dividend
Year
Diluted
Earnings
Per Share
Annual
Dividend
Dividend
Yield Year-
End
Dividend
Payout Ratio
2009
$1.18
$0.56
3.71%
47.5%
2010
$0.85
$0.56
3.21%
65.9%
2011
$1.54
$0.60
3.08%
39.0%
2012
$1.60
$0.64
2.87%
40.0%
2013 YTD
$1.33*
$0.52*
--
--
*YTD 9/30/2013 (Dividend increased 5.9% from $0.17 per share per
quarter to
$0.18 per share per quarter on October 24, 2013) |
 Growth
Initiatives |
 9
2013 Strategic Initiatives
3-8-3 Strategic Plan
$3 billion in Banking assets -
$8 billion in Wealth assets –
3 years
(December 2014)
Approved by the Board of Directors on May 8, 2012
Organic growth –
opportunistic expansion
Inorganic growth criterion -
Acquisitions to be strategic and
accretive to earnings in first 12 months (excluding merger costs)
|
 10
2013 Strategic Initiatives -
continued
Focus on the net interest margin
Concentrate on growing fee-based income
Continued emphasis on strong credit quality
Integrate, streamline and assimilate recent acquisitions into more
effective and efficient bank and wealth operations
Upgrade and enhance IT infrastructure throughout the organization
|
 Financial
Review |
 12
Financial Highlights
3
rd
Qtr
2013
2
nd
Qtr
2013
1
st
Qtr
2013
4
th
Qtr
2012
3
rd
Qtr
2012
Total assets
($ in billions)
$2.06
$2.01
$2.03
$2.04
$1.81
Portfolio loans & leases
($ in billions)
$1.50
$1.43
$1.41
$1.40
$1.31
Total deposits
($ in billions)
$1.55
$1.55
$1.61
$1.63
$1.40
Total wealth assets
($ in billions)
$7.08
$6.85
$6.99
$6.66
$6.48
Market capitalization
($ in millions)
$365.5
$323.7
$314.3
$298.7
$296.8
Net income
($ in millions)
$6.40
$6.25
$5.32
$5.30
$5.43
Tax-equivalent net interest
margin
4.05%
3.98%
3.85%
3.86%
3.78%
Non-interest income as a
percentage of total revenue
38%
42%
40%
44%
43% |
 13
Financial Highlights -
continued
3
rd
Qtr
2013
2
nd
Qtr
2013
1
st
Qtr
2013
4
th
Qtr
2012
3
rd
Qtr
2012
Diluted earnings per common
share
$0.47
$0.46
$0.40
$0.40
$0.41
Dividends declared
$0.18
$0.17
$0.17
$0.16
$0.16
Book value per share, end of
quarter
$16.07
$15.71
$15.57
$15.17
$15.02
Tangible book value per
share, end of quarter
$12.17
$11.75
$11.55
$11.08
$11.14
Tangible common equity ratio,
end of quarter
8.30%
8.21%
7.98%
7.60%
8.58%
Efficiency ratio
64.6%
66.5%
69.3%
70.1%
67.0%
Efficiency ratio, excluding due
diligence and merger-related
expenses
(a non-GAAP measure)*
63.5%
64.3%
66.9%
66.2%
65.9%
* See Non-GAAP Measures Disclosure beginning on slide 36
|
 14
Quarterly Net Interest Margin
(On a tax-equivalent basis) |
 15
Quarterly Non-Interest Income
(As a % of Total Revenue) |
 16
Capital Considerations and Objectives
Maintain a “well-capitalized”
capital position including a target tangible
common equity to tangible asset ratio of 8.00%
Selectively add capital to maintain capital levels and fund asset growth and
acquisitions
Strong emphasis on retained earnings going forward
Shelf Registration (Form S-3) of $150 million provides the ability to raise
capital as needed including through a Dividend Reinvestment and Stock
Purchase Plan with Request For Waiver Program |
 17
Capital Position -
Bryn Mawr Bank Corporation
9/30/2013
6/30/2013
3/31/2013
Tier I
11.33%
11.47%
11.33%
Total (Tier II)
12.30%
12.44%
12.32%
Tier I Leverage
9.22%
9.00%
8.58%
Tangible Common
Equity
8.30%
8.21%
7.98% |
 18
Capital Position –
Bryn Mawr Trust Company
9/30/2013
6/30/2013
3/31/2013
Tier I
11.36%
11.58%
11.52%
Total (Tier II)
12.33%
12.55%
12.51%
Tier I Leverage
9.22%
9.07%
8.70%
Tangible Common
Equity
8.32%
8.29%
8.11% |
 Wealth
Division
Review |
 20
Wealth Assets Under Management, Administration,
Supervision and Brokerage
(Period-end $ in billions) |
 21
Wealth Management Fees
($ in millions) |
 22
Wealth Division Highlights
Wealth Management
(Bryn Mawr, Hershey and Devon, PA)
$4.63 billion in assets
Integrated solutions to protect and preserve wealth
Financial Planning
Estate Planning
Retirement Planning
Investment Management
Custody Services
Philanthropic Services
Fiduciary Trust Services
Multi-family Office
Tax Services
Long-standing client relationships
Integration of operations of all three trust entities is underway
(As of September 30, 2013) |
 23
Wealth Division Highlights -
continued
Bryn Mawr Asset Management (Bryn Mawr, PA)
$338 million in assets
Brokerage services, asset allocation, open platform with objective advice
“Lift Out”
strategy with other opportunities being continuously evaluated
BMTC of Delaware (Greenville, DE)
$1.5 billion in assets
Provides
corporate
fiduciary
and
administrative
trustee
services
under
Delaware law and the full spectrum of tax advantaged strategies
Lower margin business with full year profitability expected in 2013
Lau Associates (Greenville, DE)
$613 million in assets
Fee-only, independent multi-family office providing highly personalized
service and sophisticated financial planning |
 Credit
Review |
 25
Portfolio Loan & Lease Growth
(Period-end $ in millions)
* From 2010 forward, includes the addition of the First Keystone
loan portfolio.
** From 2012 forward, includes the addition of the loans acquired from First Bank
of Delaware. |
 26
Loan Composition at December 31, 2012
($ in millions)
Total loans and leases of $1.4 billion |
 27
Loan Composition at September 30, 2013
($ in millions)
Total loans and leases of $1.5 billion |
 28
Quarterly Asset Quality Data
3
rd
Qtr
2013
2
nd
Qtr
2013
1
st
Qtr
2013
4
th
Qtr
2012
3
rd
Qtr
2012
Non-performing loans and leases as
a % of portfolio loans and leases
0.71%
0.73%
0.91%
1.06%
1.05%
Allowance as a % of portfolio loans
and leases
1.00%
1.01%
1.03%
1.03%
1.04%
Non-performing assets as a % of
total assets
0.58%
0.58%
0.66%
0.77%
0.78%
Annualized net loan and lease
charge-offs as a % of average
quarterly loans and leases
0.10%
0.28%
0.22%
0.07%
0.16% |
 29
Loan and Lease Updates
Current loan pipeline outlook is promising.
Recent hires of experienced lenders coupled with the new team in
Delaware from the recent acquisition (First Bank of Delaware) has
increased new loan opportunities.
The
lease
portfolio
at
September
30,
2013
is
$38
million,
with
an
average
yield of 9.58% and a delinquency rate of 0.28%. |
 30
Summary
We believe we are an outstanding franchise in a stable market
Focus on Wealth Services, Business Banking and Residential Mortgage
Diversified income base –
non interest income 38% of total revenue for
the three months ended September 30, 2013
Outstanding loan quality
Sound business strategy, strong asset quality, well capitalized at 9/30/13
and solid risk management procedures serve as a foundation for potential
strategic expansion
Focus on earnings per share growth
Making IT infrastructure investments that will provide longer-term
benefits |
 31
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
Chad Fortenbaugh –
Shareholder Relations –
610-581-4823 –
cfortenbaugh@bmtc.com |
 32
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”,
“strategic”,
“objective”,
“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 |
 33
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; 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
October
25,
2013
and
speak
only
as
of
that
date.
The
Corporation
does
not
undertake to update forward-looking statements. |
 34
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. |
 35
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.
|
 36
*Non GAAP Measures
Our management uses non-GAAP financial measures in their analysis of
our performance and believes that they provide useful supplemental
information that is essential to an investor’s understanding of Bryn Mawr
Bank Corporation’s operating results. These non-GAAP
financial measures should not be viewed as a substitute for financial
measures determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP performance measures that may be presented by
other companies. A reconciliation from GAAP measures to non-GAAP measures
related to the exclusion of due diligence and merger-related expenses or
tax-effected due diligence and merger-related expenses is provided
on the following two slides: |
 37
*Reconciliation
of
GAAP
Measures
to
Non-GAAP
Measures
$ in thousands
3
rd
Qtr 2013
2
nd
Qtr 2013
Net income (a GAAP measure)
$6,401
$6,252
Add: Tax-effected due diligence and
merger-related expenses (35% tax rate)
$213
$447
Net income, excluding tax-effected due
diligence and merger-related expenses
(a non-GAAP measure)
$6,614
$6,699
•Return on average assets, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure) is calculated by
dividing net income, excluding tax-effected due diligence and merger-related expenses
(a non-GAAP measure) by average assets.
•Return on average equity, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure) is calculated by
dividing net income, excluding tax-effected due diligence and merger-related expenses
(a non-GAAP measure) by average equity.
•Return on tangible common equity, excluding tax-effected due diligence
and merger-related expenses (a non- GAAP measure) is calculated by
dividing net income, excluding tax-effected due diligence and merger-related
expenses (a non-GAAP measure) by average tangible common equity.
|
 38
*Reconciliation of GAAP Measures to Non-GAAP Measures (cont’d)
$ in thousands
3
rd
Qtr
2013
2
nd
Qtr
2013
1
st
Qtr
2013
4
th
Qtr
2012
3
rd
Qtr
2012
Non-interest expense
(a GAAP measure)
$19,323
$20,524
$20,235
$21,089
$18,889
Less: Diligence and merger-
related expenses
$328
$688
$714
$1,190
$316
Non-interest expense,
excluding due diligence and
merger-related expenses (a
non-GAAP measure)
$18,995
$19,836
$19,521
$19,899
$18,573
•The efficiency ratio, excluding due diligence and merger-related expenses
(a non-GAAP measure), is calculated by dividing non-interest
expense, excluding due diligence and merger-related expenses (a non-GAAP measure)
by the sum of net interest income and non-interest income.
|