 The
Bryn Mawr Trust Company Third
Quarter 2014
Update
September 30, 2014
(October 24, 2014)
Bryn Mawr Bank
Corporation
NASDAQ: BMTC
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 28 for more
information regarding these types of statements.
The
information
contained
in
this
presentation
is
correct
only
as
of
October
24,
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 ($7.6 billion) under one roof as of September 30,
2014
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
Pending acquisition of Continental Bank Holdings, Inc. with approximately
$700 million in assets is expected to close January 1, 2015
|
 3
Southeast PA / DE Branch Footprint
BMTC
Continental
*See Slide 35
•
Pro Forma Branch Map *
•
19 Full-Service Branch Locations
•
7 Limited-Hour Retirement
Community Branch Locations
•
10 Full-Service Branch
Locations*
•
Closing expected on January 1,
2015 |
 4
Investment Considerations
Quarterly dividend of $0.19 per share (Increased 5.6% from $0.18
per
share on July 24, 2014)
Profitability Ratios:
Profitability Ratios, Excluding Tax-Effected Due Diligence and
Merger- Related Expenses (non-GAAP measures)*:
Full Year 2013
2
Qtr 2014
3
Qtr 2014
Return on average assets (“ROAA”)
1.23%
1.45%
1.21%
Return on average equity (“ROAE”)
11.53%
12.80%
10.58%
Return on average tangible equity
(“ROATE”)
15.43%
16.31%
13.35%
Full Year 2013
2
Qtr 2014
3
Qtr 2014
ROAA, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure)*
1.29%
1.50%
1.31%
ROAE, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure)*
12.11%
13.21%
11.40%
ROATE, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure)*
16.20%
16.84%
14.39%
* See Non-GAAP Measures disclosure beginning on slide 32
nd
rd
nd
rd |
 5
Net Income and Diluted Earnings Per Share
(EPS) (for the quarter ended)
($ in thousands) |
 6
3
Quarter
2014
BMTC
Stock
Performance
Closing price on June 30, 2014:
$29.12
Closing price on September 30, 2014:
$28.33
Dividends declared per share –
9 months 2014:
$0.55
Security or Index
Year to Date
2014 Total Return
3
Year
Total Return**
Trailing 12-Month
Dividend Yield
BMTC*
-4.30%
86.16%
2.58%
NASDAQ Bank Index*
-3.21%
90.94%
2.09%
KBW Regional
Bank Index*
-6.65%
98.21%
2.28%
*Source: Bloomberg
** 3 Year Total Return -09/30/2011 to 09/30/2014
rd |
 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%
YTD
9/30/2014
$1.50
$0.55
--
36.7% |
 Growth
Initiatives
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 9
2014 Strategic Initiatives
3-8-3 Strategic Plan
$3 billion in Banking assets -
$8 billion in Wealth assets –
3 years
(period ending December 2014)
Organic growth –
opportunistic expansion
Inorganic growth criterion -
Acquisitions to be strategic and accretive
to earnings in first 12 months (excluding merger costs)
Focus on earnings-per-share growth
Continued emphasis on strong credit quality |
 Financial
Review
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 11
Financial Highlights
9/30/13
12/31/13
3/31/14
6/30/14
9/30/14
Total assets
($ in billions)
$2.06
$2.06
$2.06
$2.13
$2.12
Portfolio loans & leases
($ in billions)
$1.50
$1.55
$1.57
$1.62
$1.65
Total deposits
($ in billions)
$1.55
$1.59
$1.58
$1.62
$1.61
Market capitalization
($ in millions)
$366
$412
$392
$400
$389
Tangible book value per
share, end of quarter
$12.17
$13.02
$13.47
$14.03
$14.37 |
 12
Efficiency Ratio
(GAAP and Non-GAAP)
* See Non-GAAP Measures Disclosure beginning on slide 32
|
 13
Quarterly Net Interest Margin
(On a tax-equivalent basis)
4.05%
4.03%
4.02%
4.03%
3.87%
3.84%
3.83%
3.85%
3.83%
3.76%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
4.10%
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Net Interest Margin
Net Interest Margin Excluding the Effect of Fair Value Mark Accretion
|
 14
Quarterly Non-Interest Income
(As a % of Total Revenue) |
 15
Capital Position -
Bryn Mawr Bank Corporation
12/31/2013
3/31/2014
6/30/2014
9/30/2014
Tier I
11.57%
11.71%
11.85%
12.05%
Total (Tier II)
12.55%
12.69%
12.79%
12.99%
Tier I Leverage
9.29%
9.50%
9.67%
9.77%
Tangible Common
Equity
8.92%
9.23%
9.32%
9.58%
12/31/2013
3/31/2014
6/30/2014
9/30/2014
Tier I
11.40%
11.65%
11.68%
11.60%
Total (Tier II)
12.38%
12.63%
12.62%
12.54%
Tier I Leverage
9.14%
9.43%
9.51%
9.39%
Tangible Common
Equity
8.78%
9.18%
9.18%
9.21%
Capital Position -
Bryn Mawr Trust Company |
 Wealth
Division
Review
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 17
Wealth Assets Under Management, Administration,
Supervision and Brokerage
(Year-end $ in billions) |
 18
Wealth Management Fees
($ in millions) |
 19
Wealth
Division
Highlights
(as
of
September
30,
2014)
Wealth Management
(Bryn Mawr, Hershey and Devon, PA)
$4.88 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 ongoing
|
 20
Wealth Division Highlights -
continued
Bryn Mawr Asset Management (Bryn Mawr, PA)
$380 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)
$1.71 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)
$620 million in assets
Fee-only, independent multi-family office providing highly personalized
service and sophisticated financial planning
Powers Craft Parker & Beard, Inc.
Insurance brokerage, acquired October 1, 2014 |
 Credit
Review
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 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. |
 23
Loan Composition at September 30, 2014
($ in millions)
Total loans and leases of $1.65 billion |
 24
Quarterly Asset Quality Data
As of or for the quarter ended
9/30/13
12/31/13
3/31/14
6/30/14
9/30/14
Non-performing loans and leases as
a % of portfolio loans and leases
0.71%
0.68%
0.65%
0.52%
0.51%
Allowance as a % of portfolio loans
and leases
1.00%
1.00%
1.01%
0.96%
0.95%
Non-performing assets as a % of
total assets
0.58%
0.55%
0.55%
0.43%
0.43%
Annualized net loan and lease
charge-offs as a % of average
quarterly loans and leases
0.10%
0.09%
0.13%
0.05%
0.10% |
 25
Loan and Lease Updates
The addition of Continental Bank’s strong lending team and its loan
portfolio is expected to augment loan growth in 2015
Continuing successful strategy of hiring seasoned professionals with
strong customer ties that wish to affiliate with a reputable bank.
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, including Insurance, and Business Banking
Diversified income base –
non interest income 37.6% of total revenue for
the three months ended September 30, 2014
Outstanding loan quality
Sound business strategy, strong asset quality, well capitalized at
September 30, 2014 and solid risk management procedures
Focus on earnings per share growth
Continue to make IT infrastructure investments that should provide
longer-term benefits |
 27
Ted Peters
Chairman & CEO
610-581-4800
tpeters@bmtc.com
Frank Leto
President & COO
610-581-4730
fleto@bmtc.com
Joseph Keefer
Chief Lending Officer
610-581-4869
jkeefer@bmtc.com
Duncan Smith
Chief Financial Officer
610-526 –2466
jdsmith@bmtc.com
Chad Fortenbaugh –
Shareholder Relations –
610-581-4823 –
cfortenbaugh@bmtc.com
Gary Madeira
EVP -
Wealth
610-581-4791
gmadeira@bmtc.com |
 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 Corporation (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 |
 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 Management’s current beliefs and assumptions
as
of
October
24,
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 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. |
 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
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.
|
 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 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: |
 33
*Reconciliation of GAAP Measures to Non-GAAP Measures
$ in thousands
Full Year
2013
2 Qtr 2014
3
Qtr 2014
Net income (a GAAP measure)
$24,444
$7,604
$6,506
Add: Tax-effected due diligence and
merger-related expenses (35% tax
rate)
$1,225
$245
$504
Net income, excluding tax-effected
due diligence and merger-related
expenses (a non-GAAP measure)
$25,669
$7,849
$7,010
•Return on average assets, excluding tax-effected due diligence and
merger-related expenses (a non-GAAP measure) is calculated by
dividing net income, excluding tax-effected due diligence and merger-related expenses
(a non-GAAP measure) by average assets ($ in thousands) of $1,994,500 for the
full year 2013, $2,096,491 for the 2 quarter 2014,
and $2,127,809 for the 3 quarter 2014. •Return on
average equity, excluding tax-effected due diligence and merger-related expenses (a non-GAAP
measure) is calculated by dividing net income, excluding tax-effected due
diligence and merger-related expenses (a
non-GAAP
measure)
by
average
equity
($
in
thousands)
of
$212,050
for
the
full
year
2013,
$238,274
for
the
2
quarter 2014, and $243,964 for the 3 quarter 2014.
•Return on tangible common equity, excluding tax-effected due diligence
and merger-related expenses (a non- GAAP measure) is calculated by
dividing net income, excluding tax-effected due diligence and merger-related
expenses
(a
non-GAAP
measure)
by
average
tangible
common
equity
($
in
thousands)
of
$158,457
for
the
full
year 2013, $186,972 for the 2 quarter 2014, and $193,300 for the
3 quarter 2014. nd
rd
nd
rd
nd
rd
nd
rd |
 34
*Reconciliation of GAAP Measures to Non-GAAP Measures (cont’d)
$ in thousands
3 Qtr
2013
4 Qtr
2013
1 Qtr
2014
2
Qtr
2014
3
Qtr
2014
Non-interest expense
(a GAAP measure)
$19,323
$20,658
$18,899
$20,626
$19,961
Less: Due diligence and
merger-related expenses
$328
$155
$264
$377
$775
Non-interest expense,
excluding due diligence and
merger-related expenses (a
non-GAAP measure)
$18,995
$20,503
$18,635
$20,249
$19,186
•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.
rd
st
rd
nd
th |
 35
IMPORTANT INFORMATION REGARDING THE CONTINENTAL MERGER
The Corporation has filed with the Securities and Exchange Commission (the “SEC”) a
Registration Statement on Form S-4 concerning the Merger (SEC File No. 333-196916). The
Registration Statement, which includes a prospectus for the offer and sale of the
Corporation’s common stock to CBH’s shareholders as well as a proxy statement for each of the Corporation and
CBH for the solicitation of proxies with respect to approval of the Merger, was declared effective by
the SEC on July 31, 2014 and the definitive combine prospectus and proxy statement was
subsequently sent to shareholders of the Corporation and CBH. The Merger was approved by
shareholders of the Corporation at a special meeting of the Corporation’s shareholders
held on September 23, 2014 and by shareholders of CBH at a special meeting of CBH’s shareholders
on September 16, 2014. The combined prospectus and proxy statement and other documents filed by
the Corporation with the SEC contain important information about the Corporation, CBH and the
Merger. We urge investors and each of the Corporation’s and CBH’s shareholders to
read carefully the combined prospectus and proxy statement and other documents filed with the SEC,
including any amendments or supplements also filed with the SEC. Investors and shareholders may obtain
a free copy of the combined prospectus and proxy statement – along with other filings
containing information about the Corporation – at the SEC’s website at http://www.sec.gov. Copies of the combined prospectus and proxy statement, and the filings with the SEC
incorporated by reference in the combined prospectus and proxy statement, can also be obtained free of
charge by directing a request to Bryn Mawr Bank Corporation, 801 Lancaster Avenue, Bryn Mawr,
PA 19010, attention: Geoffrey L. Halberstadt, Secretary, telephone (610) 581-4873.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any
securities nor shall there be any sale of securities in any jurisdiction in which the offer,
solicitation, or sale is unlawful before registration or qualification of the securities under
the securities laws of the jurisdiction. No offer of securities shall be made except by means of a prospectus
satisfying the requirements of Section 10 of the Securities Act of 1933, as amended.
|