Attached files
| file | filename |
|---|---|
| 8-K - BRYN MAWR BANK CORPORATION -- FORM 8-K - BRYN MAWR BANK CORP | d341980d8k.htm |
| EX-99.1 - SCRIPT FOR APRIL 27, 2012 EARNINGS CONFERENCE CALL - BRYN MAWR BANK CORP | d341980dex991.htm |
 First Quarter
2012
Update
March 31, 2012
Bryn Mawr Bank
Corporation
NASDAQ: BMTC
Strong -
Stable -
Secure
Exhibit 99.2 |
 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
April
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. |
 2
Bryn Mawr Bank Corporation
Profile
Founded in 1889 –
122 year history
A unique business model with a traditional commercial bank ($1.8
billion)
and a trust company ($5.2 billion) under one roof at March 31, 2012
Wholly owned subsidiary –
The Bryn Mawr Trust Company
Largest community bank in Philadelphia’s affluent western suburbs
26 years on the NASDAQ |
 3
Southeast PA Footprint
•
17 BMTC Full Service Branch Locations |
 4
Investment Considerations
Quarterly dividend of $0.16 per share
Year to Date at March 31, 2012:
Return on Average Assets (ROA):
1.18%
Return on Average Equity (ROE):
11.26%
Solid financial fundamentals and well capitalized
New business initiatives driving growth
$5.2 billion wealth management business that provides a significant
source of non-interest income |
 5
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) |
 6
First Quarter 2012 BMTC Stock Performance
Closing price on December 30, 2011:
$19.49
Closing price on March 30, 2012:
$22.44
Dividends declared per share –
First Quarter 2012:
$0.16
Security or Index
Year to Date
2012 Return
Dividend Yield**
BMTC*
16.02%
3.02%
NASDAQ Bank Index*
14.14%
1.97%
KBW Bank Index*
26.95%
1.76%
*Source: Bloomberg
**Trailing 12-month period |
 7
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%
*Excluding the $5.7 million of merger related and due diligence expense,
the dividend payout ratio was 46.0%. |
 8
Growth Initiatives |
 9
2012 Strategic Initiatives
3-5-3 Strategic Plan
$3
billion
in
banking
assets
-
$5
billion
in
wealth
assets
–
3
years
(Spring 2015)
Organic
growth
–
opportunistic
expansion
Management requires additional acquisitions to be accretive to
earnings per share in first 12 months (excluding merger costs)
|
 10
2012 Strategic Initiatives -
continued
Focus on the net interest margin
Concentrate on growing fee based income
Continued emphasis on strong credit quality
Integrate, streamline and assimilate recent acquisitions into more
effective and efficient wealth operations
Lower the efficiency ratio |
 11
Financial Review |
 12
Financial Highlights
1
st
Qtr
2012
4
th
Qtr
2011
3
rd
Qtr
2011
2
nd
Qtr
2011
1
st
Qtr
2011
Total Assets
($ in billions)
$1.84
$1.78
$1.76
$1.74
$1.71
Portfolio Loans & Leases
($ in billions)
$1.30
$1.29
$1.28
$1.25
$1.22
Total Deposits
($ in billions)
$1.43
$1.38
$1.35
$1.34
$1.32
Total Wealth Assets
($ in billions)
$5.15
$4.83
$4.50
$4.83
$3.60
Market Capitalization
($ in millions)
$297.4
$253.2
$215.0
$262.1
$257.9
Net Income
($ in millions)
$5.24
$5.17
$5.02
$4.81
$4.72 |
 13
Financial Highlights -
continued
1
st
Qtr
2012
4
th
Qtr
2011
3
rd
Qtr
2011
2
nd
Qtr
2011
1
st
Qtr
2011
Diluted Earnings Per
Common Share
$0.40
$0.40
$0.39
$0.38
$0.38
Dividends Declared
$0.16
$0.15
$0.15
$0.15
$0.15
Book Value Per Share
$14.43
$14.09
$14.30
$14.17
$13.61
Tangible Book Value Per
Share
$11.25
$10.82
$11.11
$10.91
$11.65
Tangible Common Equity
Ratio
8.30%
8.27%
8.48%
8.31%
8.65%
Efficiency Ratio
64.7%
64.8%
64.1%
62.0%
62.8% |
 14
4.03%
4.01%
3.90%
3.91%
3.93%
3.2%
3.4%
3.6%
3.8%
4.0%
4.2%
4.4%
Quarterly Net Interest Margin
On a tax-equivalent basis |
 15
32%
34%
37%
37%
38%
10%
20%
30%
40%
50%
Quarterly Non-Interest Income
(As a % of Total Revenue) |
 16
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.
Active Dividend Reinvestment and Stock Purchase Plan with Request for
Waiver program
The Corporation’s shareholders’
equity grew $5.4 million or 2.9% from
December 31, 2011 to March 31, 2012
Shelf Registration (Form S-3) of $150 million renewed on April 11, 2012
|
 17
Capital Position -
Bryn Mawr Bank Corporation
3/31/2012
12/31/2011
3/31/2011
Tier I
11.63%
11.26%*
12.07%
Total (Tier II)
14.23%
13.83%*
14.52%
Tier I Leverage
9.16%
8.97%*
9.80%
Tangible Common
Equity
8.30%
8.27%
8.65%
*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 $12 million with no
effect on the tangible common equity ratio. |
 18
Return on Average Equity and Average Tangible
Equity (a Non-GAAP Measure*)
-----
Return on Average Tangible
Equity
-----
Return on Average Equity
*Tangible
equity
equals
equity
minus
goodwill
and
other
intangible
assets
** Annualized |
 19
Return
on
Average
Equity
and
Average
Tangible
Equity
Excluding
Tax-Effected
Due
Diligence
and
Merger-Related
Expenses (a Non-GAAP Measure*)
*The returns on average tangible equity and average equity were calculated by
adding back to reported net income (a GAAP measure), the tax-effected
due diligence and merger-related expenses for the years referenced above. These non-GAAP ratios provide useful
supplemental information that is essential to understanding the Corporation’s
financial results. ** Annualized
----
Return on Average Tangible
Equity ----
Return on Average Equity |
 20
Wealth Division Review |
 21
Wealth Assets Under Management, Administration,
Supervision and Brokerage
($ in billions)
Excludes Community Bank’s assets in 2007
$2.28
$2.15
$2.87
$3.41
$4.83
$5.15
$1.5
$2.5
$3.5
$4.5
$5.5
2007
2008
2009
2010
2011
1st Qtr
2012 |
 22
Wealth Management Fees
($ in millions)
*
2007
2008
2009
2010
2011
1st Quarter
2012
$13.5
$13.8
$14.2
$15.5
$21.7
$6.2
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0 |
 23
Acquisition of Davidson Trust Company
Stock Purchase Agreement executed February 3, 2012
Closing
to
occur
after
all
regulatory
approvals,
expected
to
close
in
the
2
nd
Quarter
2012
Purchase price $10.5 Million in cash. Holdback 30% paid over 18 months
Expected to be accretive to earnings per share in the first 12 months, excluding
one time merger costs
Profile:
Approximately $1 Billion in assets under management and supervision
30 year history in market
80% Investment Management; 20% Fiduciary Trust
Long standing relationships
Significant cross selling opportunities |
 24
Wealth Division Highlights
Traditional Trust Activities (Bryn Mawr, PA)
$2.4 billion in assets
Integrated solutions to protect and preserve wealth through estate planning,
retirement planning, investment management and custody services
Long standing client relationships
Private Wealth Management Group (Hershey, PA)
$1.1 billion in assets
Integrated solutions to protect and preserve wealth through estate planning,
retirement planning and investment management
Long standing client relationships –
70% more than 5 years |
 25
Wealth Division Highlights -
continued
Bryn Mawr Asset Management (Bryn Mawr, PA)
$296 million in assets
Brokerage services, asset allocation, objective advice
“Lift Out”
strategy with other opportunities being continuously evaluated
BMTC of Delaware (Greenville, DE)
$726 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)
$613 million in assets
Fee-only, independent multi-family office providing highly personalized
service and sophisticated financial planning |
 26
Credit Review |
 27
Portfolio Loan & Lease Growth
($ in millions)
* From
2010
forward,
includes
the
addition
of
the
First
Keystone
loan
portfolio.
$803
$900
$886
$1,197
$1,295
$1,304
$500
$700
$900
$1,100
$1,300
$1,500
2007
2008
2009
2010*
2011
1st Qtr 2012 |
 28
Loan Composition at March 31, 2012
($ in millions)
Total loans and leases of $1.304 billion
Commercial Mortgages
(33%)
Commercial & Industrial
(21%)
Home Equity & Consumer
Loans (16%)
Residential Mortgages
(24%)
Construction
(4%)
Leases
(2%)
$431
$271
$216
$307
$51
$28 |
 29
Quarterly Asset Quality Data
1
st
Qtr
2012
4
th
Qtr
2011
3
rd
Qtr
2011
2
nd
Qtr
2011
1
st
Qtr
2011
Non-Performing Loans as a % of
Portfolio Loans and Leases
1.73%
1.11%
1.11%
1.29%
0.88%
Allowance as a % of Portfolio
Loans and Leases
1.00%
0.98%
0.91%
0.90%
0.87%
Non-Performing Assets as a % of
Assets
1.25%
0.84%
0.88%
0.97%
0.77%
Annualized Net Charge-Offs as a
% of average quarterly loans and
leases
0.23%
-0.01%
0.49%
0.40%
0.30% |
 30
Small Ticket National Leasing Business
Leases outstanding: $28 million at March 31, 2012
Average yield of 10.18%
Profitable in 2010 and 2011 as asset quality improved significantly
Projections are for 6.5% growth in 2012
Delinquency rate continues to improve:
0.68% at March 31, 2012
1.24% at December 31, 2011
2.05% at December 31, 2010 |
 31
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 |
 32
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 |
 33
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. 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. |
 34
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 Davidson 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
April
26,
2012
and speak only as of that date. The Corporation does not undertake to update
forward-looking statements. |
 35
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. |
 36
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. |