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| 8-K - 8-K - BRYN MAWR BANK CORP | bmtc8-kx3q2018investorslid.htm |
NASDAQ: BMTC Bryn Mawr Trust is synonymous with relationship-driven banking, money management and wealth preservation for individuals, families, businesses and institutions in and around the Delaware Valley. Bryn Mawr Bank Corporation’s subsidiaries provide some of the most sophisticated private banking, wealth management and middle-market commercial banking solutions available to clients in the Greater Philadelphia, Eastern Pennsylvania and Southern New Jersey markets today. INVESTMENT THESIS 21% Total 9% Total • Revenue mix diversified by substantial fee income platform assets CAGR revenue CAGR • Consistent, disciplined cost control with sub-60% efficiency - 4 years - 4 years • Seasoned leadership with proven record of execution • Unique, relationship-based client focus and credit discipline 12% GAAP pre- 34% Operating • Attractive geographic market with opportunity for growth tax income CAGR revenue from • Top quartile profitability among peers - 4 years non-interest income DIVERSE REVENUE MIX LTM Ended September 30, 2018 SUPERIOR PROFITABILITY Non-interest Income to Core Core �� 10� 2Q18 Operating Revenue ROATCE ROAA 3� ��� �������� ������ BMTC 35.00% 21.78% 1.57% ������ ���������� ���� 19� ��������� ������� Peers 26.42% 16.60% 1.38% ������� ������� ������� ��� $3-$5B 20.58% 14.31% 1.32% O���� ������������ ������ Commercial Banks ANNUAL GROWTH A PREMIER REGIONAL BANKING BRAND ($000) With a Nationwide Client Base 2������ 9� 49 banking locations in and CAGR around the Delaware Valley 15����� 1������ 1�� Princeton CAGR Hers�ey 5����� Bryn Ma�r � P�ila�elp�ia 2�13 2�1� 2�15 2�1� 2�1� �TM Wilmin�ton ����� ��3��18 T���� ������� �AA� ������� ������ BRYN MAWR TRUST | 1 | 3Q2018
DIFFERENTIATED NON-INTEREST REVENUE PLATFORM WEALTH MANAGEMENT STRATEGY BMT’s wealth management offering sets it apart from both larger and smaller competitors. Through a personalized and rigorous advice-driven approach, we meet clients’ financial needs across the spectrum of personal and business solutions. This “One BMT” strategy allows us to offer a highly sophisticated suite of products and services that the typical independent advisor can’t offer, with a client experience unmatched by larger institutions. GROWING ASSETS UNDER MANAGEMENT WEALTH AND INSURANCE REVENUE ($ billions) ($ millions) 78% �1� $13.91 �5� 73% 75% 73% $12.97 66% $11.33 1�� ��� �12 $8.37 CAGR $7.70 $7.27 �3� �8 �2� �� �1� � � �� 2�1� 2�15 2�1� 2�1� �TM ����� 2�13 2�1� 2�15 2�1� 2�1� 3Q18 ��3��18 ���� ��� ����������� � �� ����������� ������ DISTINCT OFFERING ANTICIPATES HIGH-NET-WORTH CLIENT NEEDS Wealth Management • Delaware trust and other trust and custody solutions, alongside investment management services, through dedicated client service teams. MANAGEMENT Insurance INVESTMENT ADVICE AND • Built for and around Bryn Mawr Trust wealth management PLANNING business and its clients, with about half of annual premium dollars generated by personal lines. TRUST HIGH NETWORTH INDIVIDUALS INSURANCE BUSINESS OWNERS � UNIQUE CLIENT RELATIONSHIPS DRIVE CAPITAL � � � MARKETS T � � � PROFITABILITY AND OPPORTUNITY � � � ONE � B INSTITUTIONS T A � � • ”One BMT” culture aspires to find every opportunity A BMT TREASURY � to anticipate, meet and exceed clients’ multi-faceted MANAGEMENT needs as a single, seamless team. MIDDLE MARKET • Ample opportunity to increase wallet share and BUSINESSES BUSINESS market share in and around the Delaware Valley. LOANS NONPROFITS RESIDENTIAL MORTGAGE BANKING PERSONAL BRYN MAWR TRUST | 2 | 3Q2018
BANKING OPPORTUNITY IN A PREMIER MARKET COMMERCIAL BANKING STRATEGY BMT provides expert business banking, commercial banking and capital markets solutions in and around the Delaware Valley, home to hundreds of thousands of businesses. Through our “One BMT” approach, we aim to execute on the abundant opportunity to grow the bank’s balance sheet and relationships with non-profit, institutional, privately-held and family-owned business clients and their principals. TOTAL LOANS LOAN COMPOSITION ($ billions) 3Q18 - $3.38B ���� ���� ������ $3.38 Residential ����� � ����� �3�5 $3.29 Commercial Mort�a�e �� �1� 14� �3�� $2.54 CAGR � In�ustrial $2.27 �1� Construction 11% YTD �2�5 $1.65 5� �2�� $1.55 ������ originated �1�5 �� �������� loan growth �1�� Commercial 2� Mort�a�e ���5 48� �� 2�13 2�1� 2�15 2�1� 2�1� 3Q18 CONSISTENT, LOW-COST DEPOSIT FRANCHISE ATTRACTIVE IN-MARKET DEPOSITS FUND LOAN GROWTH 29% ������ ����� � ��� �������� M����� 27% 28% 27% 3�� 26% 25% 5��� Recent expansion in Philadelphia market through the 3.98% 3.69% ���� Royal Bank acquisition in 4Q17 is already generating 25� additional deposit growth opportunities. Commercial 3.81% 3.52% 3��� 2�� accounts represent ~50% of total deposits and ~80% 2��� of non-interest DDAs, providing funding for commercial 15� 1.16% loan growth. 0.40% 1��� �������� B������ �������� � T���� �������� T���� � �������� B������ �������� 1�� ���� DEPOSIT MARKET SHARE OPPORTUNITY � 2�13 2�1� 2�15 2�1� 2�1� 3Q18 1 ��� PHILADELPHIA MSA ��B� � �� T���� �������� �O� 3 ��M NIM ex. Purchase Accounting HoldCo Branches Deposits Share 1 TD 143 $118.9 44.6% Client relationship focus, pricing discipline, 2 WFC 192 $30.2 11.3% and success in maintaining low cost of 3 PNC 163 $21.9 8.2% funds drive consistent NIM performance 4 CFG 178 $19.2 7.2% 5 BAC 85 $15.1 5.7% 6 WSFS2 109 $9.0 3.4% CAPITAL MARKETS 7 MTB 59 $8.2 3.1% BMT is a premier provider of a full range of capital 8 BBT 93 $5.0 1.9% markets products and services, thanks to talent and 9 SAN 71 $4.8 1.8% infrastructure investments made in 2016 and 2017, 10 UVSP 39 $3.5 1.3% allowing the company to expand the breadth and depth of its commercial banking relationships with middle- 1,132 $235.8 88.3% market customers requiring sophisticated interest 11 BMTC 43 $3.4 1.3% rate hedging and derivatives, foreign exchange and 1,175 $239.2 89.6% international payments, and trade finance products. 1Excludes non-retail competitors (≤2 branches in MSA) | 2Pro forma for pending BNCL acquisition by Wilmington’s WSFS | 3Billions | Source: SPGMI data from FDIC 6/30/2018 Summary of Deposits report BRYN MAWR TRUST | 3 | 3Q2018
INVESTING FOR THE FUTURE UNIQUELY POSITIONED TO SUCCEED CONSISTENT DIVIDEND GROWTH IN COMPETITIVE ENVIRONMENT Enhancing near-term shareholder return with 14% AMID MARKET DISRUPTION increase to quarterly dividend in 3Q18, to $0.25. Maintaining superior efficiency ratio while using a portion of excess earnings from recently QUARTERLY CASH DIVIDENDS 9/30/18 lowered tax rates to accelerate investments: Consecutive years with increase Eight • Talent and technology investments designed to enhance long-term growth trajectory Five-year growth 47.1% • Adding experienced, local producers and managers to drive business Yield 2.13% • Implementing CRM system to facilitate and enhance sales culture Payout 30.5% • Enhancing digital and mobile offerings to provide a more seamless customer experience across all BMT commercial, INVESTMENT PROFILE wealth and retail accounts September 28, 2018 BMTC $3B-$5B Banks1 Closing price $46.90 STRATEGIC OBJECTIVES 52-week high $49.90 • Continue to diversify business activities 52-week low $42.10 (interest and non-interest income sources) to strengthen predictability of financial Av daily vol (3 month) 48,398 performance • Leverage technology to drive process Market cap (millions) 951.67 736.07 innovation and increased productivity • Accelerate investment in risk management P/E 14.3 14.6 capabilities to further strengthen operational capacity and drive scale P/TBV 276.7 201.8 • Use organic growth, supplemented by hires Float as % 97.5 91.4 of teams and individuals with strong books of outstanding shares business, and selective fee-based-business Institutional ownership acquisitions to capture greater market share, 74.2 55.5 continue profitable expansion, and leverage the as % outstanding shares BMT brand across our footprint 1 Publicly traded commercial banks with MRQ assets of $3 billion to $5 billion IMPORTANT INFORMATION CONTACT INFO Non-GAAP Reconciliations: Please refer to the company’s latest quarterly financial results news release for a calculation and Frank Leto reconciliation of any non-GAAP financial measures contained herein. President & CEO Safe Harbor Disclosure: This document may contain “forward-looking statements,” within the meaning of the Securities Act 610-581-4730 of 1933, Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995, each as amended, which fleto@bmtc.com involve risks and uncertainties that could cause actual results to differ materially from those discussed in these statements. Mike Harrington These risks are detailed in the company’s latest Form 10-Q and 10-K filed with the Securities and Exchange Commission. EVP & CFO All forward-looking statements and information set forth herein are based on management’s beliefs and assumptions as of 610-526-2466 September 30, 2018 and speak only as of such date. The company does not undertake to update forward-looking statements. mharrington@bmtc.com Peer Group: The peer group used for comparison purposes in the company’s IR materials may be found at bmtc.com/peers. Chad Fortenbaugh Investor Relations Member FDIC. Equal Housing Lender. Securities, insurance, foreign exchange, and derivatives products are not a deposit, not 610-581-4823 FDIC insured, not bank guaranteed, not insured by any federal government agency, and may lose value. cfortenbaugh@bmtc.com BRYN MAWR TRUST | 4 | 3Q2018