NasdaqGS:BMTC

Stock Analysis Report

Executive Summary

Bryn Mawr Bank Corporation operates as the bank holding company for The Bryn Mawr Trust Company that provides commercial and retail banking services to individual and business customers.

Rewards

Trading at 4% below its fair value

Earnings are forecast to grow 5.45% per year

Pays a high and reliable dividend of 2.59%

Risk Analysis

No risks detected for BMTC from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Bryn Mawr Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BMTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

BMTC

-0.3%

US Banks

1.7%

US Market


1 Year Return

4.9%

BMTC

15.3%

US Banks

23.2%

US Market

Return vs Industry: BMTC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: BMTC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BMTCIndustryMarket
7 Day-1.0%-0.3%1.7%
30 Day-3.0%-2.0%4.2%
90 Day7.0%9.1%11.9%
1 Year7.8%4.9%18.6%15.3%25.8%23.2%
3 Year6.3%-0.7%34.3%24.8%52.8%42.9%
5 Year50.6%33.0%85.7%64.8%75.2%55.8%

Price Volatility Vs. Market

How volatile is Bryn Mawr Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bryn Mawr Bank undervalued compared to its fair value and its price relative to the market?

5.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BMTC ($40.21) is trading below our estimate of fair value ($41.89)

Significantly Below Fair Value: BMTC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BMTC is poor value based on its PE Ratio (13.5x) compared to the Banks industry average (12.8x).

PE vs Market: BMTC is good value based on its PE Ratio (13.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BMTC is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BMTC is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bryn Mawr Bank forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMTC's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BMTC's earnings (5.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: BMTC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BMTC's revenue is expected to decline over the next 3 years (-5.4% per year).

High Growth Revenue: BMTC's revenue is forecast to decline over the next 3 years (-5.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BMTC's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Bryn Mawr Bank performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMTC has high quality earnings.

Growing Profit Margin: BMTC's current net profit margins (26.8%) are lower than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: BMTC's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: BMTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BMTC had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Banks industry average (26.3%).


Return on Equity

High ROE: BMTC's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bryn Mawr Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BMTC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BMTC's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: BMTC's level of assets compared to its equity is low.

Allowance for Bad Loans: BMTC has a sufficient allowance for bad loans.

Low Risk Liabilities: BMTC's liabilities are made up of primarily low risk sources of funding.

Loan Level: BMTC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BMTC's loans are broadly funded by customer deposits.

Level of Bad Loans: BMTC has an appropriate level of bad loans (0.4%)


Next Steps

Dividend

What is Bryn Mawr Bank's current dividend yield, its reliability and sustainability?

2.61%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: BMTC's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BMTC's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: BMTC's dividends per share have been stable in the past 10 years.

Growing Dividend: BMTC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), BMTC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BMTC's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Next Steps

Management

What is the CEO of Bryn Mawr Bank's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Frank Leto (59yo)

5yrs

Tenure

US$1,729,087

Compensation

Mr. Francis J. Leto, also known as Frank, has been the Chief Executive Officer and President of Bryn Mawr Bank Corporation (“Holding”) and Bryn Mawr Trust Company (“Bank”) since January 1, 2015 and May 1,  ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD1.73M) is below average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

54yo

Average Age

Experienced Management: BMTC's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: BMTC's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joe Keefer (60yo)

    Executive VP of Corporate Banking Group of The Bryn Mawr Trust Co.

    • Tenure: 1.8yrs
    • Compensation: US$736.79k
  • F. Tylus (64yo)

    President of Banking Division & Director

    • Tenure: 2.1yrs
    • Compensation: US$904.27k
  • Frank Leto (59yo)

    President

    • Tenure: 5yrs
    • Compensation: US$1.73m
  • Mike Harrington (56yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$824.16k
  • Linda Sanchez

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Jen Fox (48yo)

    President of Wealth Management Division

    • Compensation: US$767.05k
  • Adam Bonanno (41yo)

    Senior VP & Chief Technology Officer

    • Tenure: 1yrs
  • Lori A. Goldman (38yo)

    Senior VP

    • Michael LaPlante (47yo)

      Chief Accounting Officer & Controller

      • Tenure: 2.5yrs
    • Tina McDonald (54yo)

      Senior Vice President of Marketing


      Board Members

      • Wendell Holland (67yo)

        Independent Director

        • Tenure: 23yrs
        • Compensation: US$75.39k
      • A. May (63yo)

        Independent Director

        • Tenure: 5yrs
        • Compensation: US$75.39k
      • Britt Murdoch (61yo)

        Chairman of the Board

        • Tenure: 5yrs
        • Compensation: US$126.60k
      • F. Tylus (64yo)

        President of Banking Division & Director

        • Tenure: 2.1yrs
        • Compensation: US$904.27k
      • Scott Jenkins (64yo)

        Independent Director

        • Tenure: 13.6yrs
        • Compensation: US$85.64k
      • Frank Leto (59yo)

        President

        • Tenure: 5yrs
        • Compensation: US$1.73m
      • Lynn McKee (64yo)

        Independent Director

        • Tenure: 7yrs
        • Compensation: US$66.89k
      • Diego Calderin (57yo)

        Independent Director

        • Tenure: 2yrs
        • Compensation: US$67.30k
      • Andrea Gilbert (66yo)

        Independent Director

        • Tenure: 16yrs
        • Compensation: US$66.14k
      • Michael Clement (69yo)

        Independent Director

        • Tenure: 5yrs
        • Compensation: US$74.89k

      Company Information

      Bryn Mawr Bank Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Bryn Mawr Bank Corporation
      • Ticker: BMTC
      • Exchange: NasdaqGS
      • Founded: 1889
      • Industry: Regional Banks
      • Sector: Banks
      • Market Cap: US$809.999m
      • Shares outstanding: 20.12m
      • Website: https://www.bmt.com

      Number of Employees


      Location

      • Bryn Mawr Bank Corporation
      • 801 Lancaster Avenue
      • Bryn Mawr
      • Pennsylvania
      • 19010
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      BMTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1975

      Biography

      Bryn Mawr Bank Corporation operates as the bank holding company for The Bryn Mawr Trust Company that provides commercial and retail banking services to individual and business customers. It operates in two segments, Wealth Management and Banking. The company accepts deposit products, including interest-bearing demand accounts, wholesale time deposits, retail time deposits, savings accounts, noninterest-bearing demand accounts, and wholesale non-maturity deposits, as well as NOW and market rate accounts. It also provides loan and lease portfolio of products, such as commercial mortgages, home equity lines and loans, and residential mortgages, as well as construction, and commercial and industrial consumer loans and leases; and leasing services. In addition, the company offers wealth management services comprising trust administration and other related fiduciary, custody, investment management and advisory, employee benefit account and IRA administration, estate settlement, financial planning, and brokerage services, as well as estate administration, retirement planning, and tax planning and preparation services. Further, it provides insurance and related products and services that include casualty, property, and allied insurance lines, as well as life insurance, annuities, medical insurance, and accident and health insurance for groups and individuals. Additionally, the company offers a small-ticket equipment financing services. It provides its services through 43 banking locations, 6 wealth management offices, and 2 insurance and risk management locations in the Montgomery, Chester, Delaware, Philadelphia, and Dauphin Counties in Pennsylvania; New Castle County in Delaware; and Mercer and Camden Counties in New Jersey. The company was founded in 1889 and is headquartered in Bryn Mawr, Pennsylvania. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 23:33
      End of Day Share Price2020/01/17 00:00
      Earnings2019/12/31
      Annual Earnings2019/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.