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8-K - FORM 8-K - BRYN MAWR BANK CORP | d719574d8k.htm |
EX-99.1 - EX-99.1 - BRYN MAWR BANK CORP | d719574dex991.htm |
The
Bryn Mawr Trust Company First
Quarter 2014
Update
March 31, 2014
(April 30, 2014)
Bryn Mawr Bank
Corporation
NASDAQ: BMTC
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 beginning on slide 28 for more
information regarding these types of statements.
The information contained in this presentation is correct only as of April 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. |
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 ($7.4 billion) under one roof at March 31, 2014
Wholly-owned subsidiary
The Bryn Mawr Trust Company
Largest community bank in Philadelphias 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 $0.17
per
share on October 24, 2013)
Profitability Ratios:
Profitability Ratios, Excluding Tax-Effected Due Diligence and
Merger- Related Expenses (non-GAAP measures)*:
Full Year 2012
Full Year 2013
1
st
Qtr 2014
Return on average assets (ROA)
1.15%
1.23%
1.32%
Return on average equity (ROE)
10.91%
11.53%
11.71%
Return on average tangible equity
(ROTE)
14.55%
15.43%
15.10%
Full Year 2012
Full Year 2013
1
st
Qtr2014
ROA, excluding tax-effected due diligence and merger-
related expenses (a non-GAAP measure)*
1.25%
1.29%
1.36%
ROE, excluding tax-effected due diligence and merger-
related expenses (a non-GAAP measure)*
11.79%
12.11%
12.01%
ROTE, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure)*
15.73%
16.20%
15.48%
* See Non-GAAP Measures disclosure beginning on slide 32
|
Net
Income and Diluted Earnings Per Share (EPS)
(for the quarter ended)
($ in thousands)
5 |
6
1
Quarter 2014 BMTC Stock Performance
Closing price on December 31, 2013:
$30.18
Closing price on March 31, 2014:
$28.73
Dividends declared per share
1
Qtr 2014:
$0.18
Security or Index
1
Qtr 2014
Total Return
3
Year
Total Return**
Trailing 12-Month
Dividend Yield
BMTC*
-4.20%
52.46%
2.44%
NASDAQ Bank Index*
3.01%
55.93%
1.76%
KBW Regional
Bank Index*
1.42%
57.77%
1.96%
*Source: Bloomberg
** 3 Year Total Return -03/31/2011 to 03/31/2014
st
st
st |
7
Consistent BMTC Annual Dividend
Year
Diluted
Earnings
Per Share
Annual
Dividend
Dividend
Yield Year-
End
Dividend
Payout Ratio
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%
1
st
Qtr
2014
$0.49
$0.72*
--
--
*Annualized |
Growth
Initiatives |
9
2014 Strategic Initiatives
3-8-3 Strategic Plan
$3 billion in Banking assets -
$8 billion in Wealth assets
3 years
(period ending December 2014)
Approved by the Board of Directors on May 8, 2012
Organic growth
opportunistic expansion
Inorganic
growth
criterion
-
Acquisitions
to
be
strategic
and
accretive
to earnings in first 12 months (excluding merger costs)
Focus on the earnings-per-share growth
Continued emphasis on strong credit quality |
Financial
Review |
11
Financial Highlights
3/31/13
6/30/13
9/30/13
12/31/13
3/31/14
Total assets
($ in billions)
$2.03
$2.01
$2.06
$2.06
$2.06
Portfolio loans & leases
($ in billions)
$1.41
$1.43
$1.50
$1.55
$1.57
Total deposits
($ in billions)
$1.61
$1.55
$1.55
$1.59
$1.58
Market capitalization
($ in millions)
$314
$324
$366
$412
$392
Book value per share, end of
quarter
$15.57
$15.71
$16.07
$16.84
$17.24
Tangible book value per
share, end of quarter
$11.55
$11.75
$12.17
$13.02
$13.47 |
12
Efficiency Ratio
(GAAP and Non-GAAP)
* See Non-GAAP Measures Disclosure beginning on slide 32
69.3%
66.5%
64.6%
65.9%
63.3%
66.9%
64.3%
63.5%
65.4%
62.4%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Efficiency ratio
Efficiency ratio excluding due diligence and merger-related expenses (a
non-GAAP measure) |
Quarterly Net Interest Margin
(On a tax-equivalent basis)
3.85%
3.98%
4.05%
4.03%
4.02%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
4.10%
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
13 |
40.4%
41.9%
38.1%
39.0%
37.3%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Quarterly Non-Interest Income
(As a % of Total Revenue)
14 |
15
Capital Position -
Bryn Mawr Bank Corporation
6/30/2013
9/30/2013
12/31/2013
3/31/2014
Tier I
11.47%
11.33%
11.57%
11.71%
Total (Tier II)
12.44%
12.30%
12.55%
12.69%
Tier I Leverage
9.00%
9.22%
9.29%
9.50%
Tangible Common
Equity
8.21%
8.30%
8.92%
9.23%
6/30/2013
9/30/2013
12/31/2013
3/31/2014
Tier I
11.58%
11.36%
11.40%
11.65%
Total (Tier II)
12.55%
12.33%
12.38%
12.63%
Tier I Leverage
9.07%
9.22%
9.14%
9.43%
Tangible Common
Equity
8.29%
8.32%
8.78%
9.18%
Capital Position -
Bryn Mawr Trust Company |
Wealth
Division
Review |
Wealth Assets Under Management, Administration,
Supervision and Brokerage
$3.41
$4.83
$6.66
$7.27
$7.36
-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2010
2011
2012
2013
1Q 2014
$
17
(Period-end $ in billions) |
Wealth Management Fees
($ in millions)
$15.5
$21.7
$29.8
$35.2
$8.9
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
2010
2011
2012
2013
1Q 2014
18 |
19
Wealth
Division
Highlights
(as
of
March
31,
2014)
Wealth Management
(Bryn Mawr, Hershey and Devon, PA)
$4.86 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
|
20
Wealth Division Highlights -
continued
Bryn Mawr Asset Management (Bryn Mawr, PA)
$369 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)
$1.53 billion in assets
Provides
corporate
fiduciary
and
administrative
trustee
services
under
Delaware law and the full spectrum of tax advantaged strategies
Lau Associates (Greenville, DE)
$608 million in assets
Fee-only, independent multi-family office providing highly personalized
service and sophisticated financial planning |
Credit
Review |
22
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. $1,197
$1,295
$1,398
$1,547
$1,566
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2010*
2011
2012**
2013
1Q 2014 |
23
Loan Composition at March 31, 2014
($ in millions)
Total loans and leases of $1.57 billion |
24
Quarterly Asset Quality Data
As of or for the Quarter Ended
3/31/13
6/30/13
9/30/13
12/31/13
3/31/14
Non-performing loans and leases as
a % of portfolio loans and leases
0.91%
0.73%
0.71%
0.68%
0.65%
Allowance as a % of portfolio loans
and leases
1.03%
1.01%
1.00%
1.00%
1.01%
Non-performing assets as a % of
total assets
0.66%
0.58%
0.58%
0.55%
0.55%
Annualized net loan and lease
charge-offs as a % of average
quarterly loans and leases
0.22%
0.28%
0.10%
0.09%
0.13% |
25
Loan and Lease Updates
Current loan pipeline outlook is promising.
Recent hires of experienced lenders coupled with the team in Delaware
from the acquisition (First Bank of Delaware) has increased new loan
opportunities.
The lending group continues to take advantage of market opportunities
which should continue to deliver solid quality loan growth
|
26
Summary
We believe we are an outstanding franchise in a stable market
Focus on Wealth Services and Business Banking
Diversified income base
non interest income 37.3% of total revenue for
the three months ended March 31, 2014
Outstanding loan quality
Sound business strategy, strong asset quality, well capitalized at March
31, 2014 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
27 |
28
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 Corporations (the Corporation) that may include future
plans, objectives, performance, revenues, growth, profits, operating
expenses or the Corporations 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 Corporations 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 Corporations 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 |
29
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 Managements current beliefs and assumptions
as
of
April
30,
2014
and
speak
only
as
of
that
date.
The
Corporation
does
not
undertake to update forward-looking statements. |
30
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
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 Corporations securities
should be made after reviewing an Offering Memorandum, conducting such
investigations as the investor deems necessary or appropriate, and consulting the investors
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. |
31
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
Corporations 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.
|
32
*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 investors understanding of Bryn Mawr
Bank Corporations 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: |
33
*Reconciliation of GAAP Measures to Non-GAAP Measures
$ in thousands
Full Year
2012
Full Year
2013
1
st
Qtr 2014
Net income (a GAAP measure)
$21,147
$24,444
$6,689
Add: Tax-effected due diligence and
merger-related expenses (35% tax
rate)
$1,709
$1,225
$172
Net income, excluding tax-effected
due diligence and merger-related
expenses
(a
non-GAAP
measure)
$22,856
$25,669
$6,861
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.
|
34
*Reconciliation of GAAP Measures to Non-GAAP Measures (contd)
$ in thousands
1
st
Qtr
2013
2
nd
Qtr
2013
3
rd
Qtr
2013
4
th
Qtr
2013
1
st
Qtr
2014
Non-interest expense
(a GAAP measure)
$20,235
$20,524
$19,323
$20,658
$18,899
Less: Due diligence and
merger-related expenses
$714
$688
$328
$155
$264
Non-interest expense,
excluding due diligence and
merger-related expenses (a
non-GAAP measure)
$19,521
$19,836
$18,995
$20,503
$18,635
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.
|