Bryn Mawr Bank Corp. has a market cap of $230.2 million; its shares were traded at around $18.88 with a P/E ratio of 16.4 and P/S ratio of 2.4. The dividend yield of Bryn Mawr Bank Corp. stocks is 3.2%. Bryn Mawr Bank Corp. had an annual average earning growth of 4.9% over the past 10 years. GuruFocus rated Bryn Mawr Bank Corp. the business predictability rank of 3-star.
Highlight of Business Operations:On July 1, 2010, the merger of First Keystone Financial, Inc. (FKF) with and into the Corporation (the Merger), and the two step merger of FKFs wholly-owned subsidiary, First Keystone Bank (FKB) with and into the Bank, were completed. In accordance with the terms of the Agreement and Plan of Merger, dated November 3, 2009, by and between the Corporation and FKF (the Merger Agreement), shareholders of FKF received 0.6973 shares of the Corporations common stock plus $2.06 per share cash consideration for each share of FKF common stock they owned as of the effective date of the Merger. The 85% stock and 15% cash transaction was valued at $31.3 million, based on FKFs June 30, 2010, closing share price of $13.35 as listed on NASDAQ.
The aggregate consideration paid to FKF shareholders consisted of approximately 1.6 million shares of the Corporations common stock, valued at approximately $26.4 million, and approximately $4.8 million in cash. FKF employee stock options, valued at approximately $102 thousand, which were fully vested and converted to options to purchase the Corporations common stock upon the closing of the Merger, were also included in the total consideration paid.
On February 18, 2011, the Corporation entered into a definitive stock purchase agreement (the Stock Purchase Agreement) with Hershey Trust Company (HTC) pursuant to which the Corporation will acquire the private wealth management business of HTC (the PWMG Business) for a total purchase price of $18.25 million, of which $8.15 million is to be paid at closing in cash, $6.5 million is to be issued at closing in unregistered shares of the Corporations common stock (the Stock Consideration), and the final $3.6 million is to be placed in escrow and paid in cash installments on the 6-, 12- and 18-month anniversaries of the date of signing, subject to certain post-closing contingencies relating to the assets under management of the PWMG Business (the Holdback Amount).
In connection with the acquisition of FKF, the Corporation acquired FKF Capital Trust I (the Trust), a trust formed under Delaware law that became an unconsolidated subsidiary of the Corporation. The Corporation owns all of the common shares of the Trust which are recorded in other investments in the Corporations Consolidated Balance Sheet. On August 21, 1997, the Trust issued $16.2 million of preferred securities (the Preferred Securities) at an interest rate of 9.7%, with a scheduled maturity of August 15, 2027. Simultaneously, the proceeds from the issue, along with $502 thousand of cash were invested in junior subordinated debentures (the Debentures) that have been assumed by the Corporation. The Debentures are unsecured and rank subordinate and junior in right of payment to all indebtedness, liabilities and obligations of the Corporation. The Trust has no employees as of December 31, 2010.
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