BRYN MAWR BANK CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - BRYN MAWR BANK CORP	d666383d8k.htm

Fourth

Quarter 2013

Update

December 31, 2013

(as of January 30, 2014)

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 beginning on slide 31 for more information

regarding these types of statements.

The

information

contained

this

presentation

correct

only

January

30,

2014.

Our business, financial condition, results of operations and prospects may have

changed since that date, and we do not undertake to update such information.

Bryn Mawr Bank Corporation

Profile

Founded in 1889 –

125 year history

unique

business

model

with

traditional

commercial

bank

($2.1

billion)

and a trust company ($7.3 billion) under one roof at December 31, 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

Southeast PA / DE Branch Footprint

•

19 BMTC Full-Service Branch Locations

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)*:

Qtr 2013

Full Year 2013

Full Year 2012

Return on average assets (“ROA”)

1.26%

1.23%

1.15%

Return on average equity (“ROE”)

11.67%

11.53%

10.91%

Return on average tangible equity

(“ROTE”)

15.35%

15.43%

14.55%

Qtr 2013

Full Year 2013

Full Year 2012

ROA, excluding tax-effected due diligence and merger-

related expenses (a non-GAAP measure)*

1.28%

1.29%

1.25%

ROE, excluding tax-effected due diligence and merger-

related expenses (a non-GAAP measure)*

11.86%

12.11%

11.79%

ROTE, excluding tax-effected due diligence and

merger-related expenses (a non-GAAP measure)*

15.58%

16.20%

15.73%

* See Non-GAAP Measures disclosure beginning on slide 35

Comments on BMTC from Bank Analysts

“We believe BMTC is a highly attractive franchise with a strong

commercial banking and wealth management focus.”

(Guggenheim, October 2013)

“The strong get stronger.”

(Keefe, Bruyette & Woods, October 2013)

“Bryn Mawr remains among the Best in Class.”

(Sterne Agee, October 2013)

“Fee income growth and NIM expansion drive substantial EPS beat.”

(Merion Capital Group, July 2013)

Quarter

2013

BMTC

Stock

Performance

Closing price on December 31, 2012:

$22.27

Closing price on December 31, 2013:

$30.18

Dividends declared per share –

Full Year 2013:

$0.69

Security or Index

2013 Total Return

3 Year

Total Return**

Trailing 12-Month

Dividend Yield

BMTC*

39.30%

88.90%

2.29%

NASDAQ Bank Index*

41.69%

50.49%

1.77%

KBW Regional

Bank Index*

46.80%

57.64%

1.89%

*Source: Bloomberg

** 3 Year Total Return -01/01/2011 to 12/31/2013

Consistent BMTC Annual Dividend

Year

Diluted

Earnings

Per Share

Annual

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

$1.80

$0.69

2.29%

38.3%

Growth

Initiatives

2014 Strategic Initiatives

3-8-3 Strategic Plan

$3 billion in Banking assets -

$8 billion in Wealth assets –

3 years

(period-ending December 2014)

Approved by the Board of Directors on May 8, 2012

Organic growth –

opportunistic expansion

Inorganic

growth

criterion

Acquisitions

strategic

and

accretive to earnings in first 12 months (excluding merger costs)

2014 Strategic Initiatives -

continued

Focus on the earnings per share growth

Pursue strategic and accretive merger and acquisitions

Concentrate on growing fee-based income

Continued emphasis on strong credit quality

Continue to upgrade and enhance IT infrastructure throughout the

organization

Financial

Review

Financial Highlights

4 Qtr

2013

3 Qtr

2013

Qtr

2013

Qtr

2013

Qtr

2012

Total assets

($ in billions)

$2.06

$2.01

$2.03

$2.04

Portfolio loans & leases

($ in billions)

$1.55

$1.50

$1.43

$1.41

$1.40

Total deposits

($ in billions)

$1.59

$1.55

$1.61

$1.63

Total wealth assets

($ in billions)

$7.27

$7.08

$6.85

$6.99

$6.66

Market capitalization

($ in millions)

$412

$366

$324

$314

$299

Net income

($ in millions)

$6.47

$6.40

$6.25

$5.32

$5.30

Tax-equivalent net interest

margin

4.03%

4.05%

3.98%

3.85%

3.86%

Non-interest income as a

percentage of total revenue

39.0%

38.1%

41.9%

40.4%

43.8%

Financial Highlights -

continued

4 Qtr

2013

3 Qtr

2013

2 Qtr

2013

1 Qtr

2013

4 Qtr

2012

Diluted earnings per common

$0.47

$0.46

$0.40

Dividends declared

$0.18

$0.17

$0.16

Book value per share, end of

quarter

$16.84

$16.07

$15.71

$15.57

$15.17

Tangible book value per

share, end of quarter

$13.02

$12.17

$11.75

$11.55

$11.08

Tangible common equity ratio,

end of quarter

8.92%

8.30%

8.21%

7.98%

7.60%

Efficiency ratio

65.9%

64.6%

66.5%

69.3%

70.1%

Efficiency ratio, excluding due

diligence and merger-related

expenses

(a non-GAAP measure)*

65.4%

63.5%

64.3%

66.9%

66.2%

* See Non-GAAP Measures Disclosure beginning on slide 35

Quarterly

Net

Interest

Margin

(On a tax-equivalent basis)

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

4.2%

3.86%

3.85%

3.98%

4.05%

4.03%

Quarterly Non-Interest Income

(As a % of Total Revenue)

43.8%

40.4%

41.9%

38.1%

39.0%

25%

35%

45%

55%

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

Capital Position -

Bryn Mawr Bank Corporation

12/31/2013

9/30/2013

6/30/2013

3/31/2013

Tier I

11.57%

11.33%

11.47%

11.33%

Total (Tier II)

12.55%

12.30%

12.44%

12.32%

Tier I Leverage

9.29%

9.22%

9.00%

8.58%

Tangible Common

Equity

8.92%

8.30%

8.21%

7.98%

Capital Position –

Bryn Mawr Trust Company

12/31/2013

9/30/2013

6/30/2013

3/31/2013

Tier I

11.40%

11.36%

11.58%

11.52%

Total (Tier II)

12.38%

12.33%

12.55%

12.51%

Tier I Leverage

9.14%

9.22%

9.07%

8.70%

Tangible Common

Equity

8.78%

8.32%

8.29%

8.11%

Wealth

Division

Review

Wealth

Assets

Under

Management,

Administration,

Supervision

and

Brokerage

(Period-end $ in billions)

2008

2009

2010

2011

2012

2013

$7.5

$6.5

$5.5

$4.5

$3.5

$2.5

$1.5

$2.15

$2.87

$3.41

$4.83

$6.66

$7.27

Wealth Management Fees

($ in millions)

$13.8

$14.2

$15.5

$21.7

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

2008

2009

2010

2011

2012

2013

$35.2

$29.8

Wealth

Division

Highlights

(as

December

31,

2013)

Wealth

Management

(Bryn Mawr, Hershey and Devon, PA)

$4.80 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

Wealth Division Highlights -

continued

Bryn Mawr Asset Management (Bryn Mawr, PA)

$359 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)

$1.49 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)

$614 million in assets

Fee-only, independent multi-family office providing highly personalized

service and sophisticated financial planning

Credit

Review

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.

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2008

2009

2010*

2011

2012**

2013

$900

$886

$1,197

$1,295

$1,398

$1,547

Loan Composition at December 31, 2013

($ in millions)

Total loans and leases of $1.55 billion

$625

$329

$207

$300

$46

$40

Commercial Mortgages (41%)

Commercial & Industrial (21%)

Home Equity & Consumer Loans

(13%)

Residential Mortgages

(19%)

Construction

(3%)

Leases

(3%)

Quarterly Asset Quality Data

4 Qtr

2013

3 Qtr

2013

Qtr

2013

1 Qtr

2013

4 Qtr

2012

Non-performing loans and leases as

a % of portfolio loans and leases

0.68%

0.71%

0.73%

0.91%

1.06%

Allowance as a % of portfolio loans

and leases

1.00%

1.01%

1.03%

Non-performing assets as a % of

total assets

0.55%

0.58%

0.66%

0.77%

Annualized net loan and lease

charge-offs as a % of average

quarterly loans and leases

0.09%

0.10%

0.28%

0.22%

0.07%

Loan

and

Lease

Updates

Current loan pipeline outlook is promising.

Recent hires of experienced lenders coupled with the new team in

Delaware from the acquisition (First Bank of Delaware) has increased new

loan opportunities.

The lease portfolio at December 31, 2013 is $40 million, with an

average

yield of 9.48% and a delinquency rate of 0.46%.

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 39.0% of total revenue for

the three months ended December 31, 2013

Outstanding loan quality

Sound business strategy, strong asset quality, well capitalized at 12/31/13

and solid risk management procedures

Focus on earnings per share growth

Continue to make IT infrastructure investments that should provide

longer-term benefits

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

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”

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

developments

expressed,

implied

anticipated

such

forward-looking

statements,

and so our business and financial condition and results of operations could be materially and

adversely affected.

Safe Harbor

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

our

business

and

our

market

area;

changes

the

levels

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 January 30, 2014 and speak only as of that date. The Corporation does not

undertake to update forward-looking statements.

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 subsequently filed with the SEC.

This

presentation

for

discussion

purposes

only,

and

shall

not

constitute

any

offer

sell

the

solicitation

offer

buy

any

security,

nor

intended

give

rise

any

legal

relationship

between

the

Corporation

and

you

any

other

person,

nor

recommendation

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.

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.

*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:

*Reconciliation

GAAP

Measures

Non-GAAP

Measures

$ in thousands

Qtr 2013

Full Year

2013

Full Year

2012

Net income (a GAAP measure)

$6,471

$24,444

$21,147

Add: Tax-effected due diligence and

merger-related expenses (35% tax

rate)

$101

$1,225

$1,709

Net income, excluding tax-effected

due diligence and merger-related

expenses (a non-GAAP measure)

$6,572

$25,669

$22,856

•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.

*Reconciliation of GAAP Measures to Non-GAAP Measures (cont’d)

$ in thousands

4 Qtr

2013

3 Qtr

2013

Qtr

2013

1 Qtr

2013

4 Qtr

2012

Non-interest expense

(a GAAP measure)

$20,658

$19,323

$20,524

$20,235

$21,089

Less: Diligence and merger-

related expenses

$155

$328

$688

$714

$1,190

Non-interest expense,

excluding due diligence and

merger-related expenses (a

non-GAAP measure)

$20,503

$18,995

$19,836

$19,521

$19,899

•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.

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