Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”),
parent of The Bryn Mawr Trust Company (the “Bank”), today announced
that it has completed an underwritten public offering of $70
million in aggregate principal amount of 4.25% Fixed-to-Floating
Rate Subordinated Notes (the “Notes”). The Notes have a stated
maturity date of December 15, 2027. The Corporation may
redeem the Notes on December 22, 2022 or any interest payment date
thereafter, as well as upon certain earlier events. The Notes will
bear interest at a fixed rate of 4.25% per year from the date of
issuance through December 14, 2022, and thereafter will bear
interest, until maturity or earlier redemption, at a variable
annual rate that will reset quarterly to a level equal to the then
current 3-month LIBOR plus 205.0 basis points.
The Notes were issued at the holding company
level, and have been structured to qualify as Tier 2 capital under
regulatory guidelines. The Corporation intends to use the proceeds
from the sale for working capital and general corporate purposes,
which may include, but not be limited to, investments in the Bank
and our other subsidiaries for regulatory capital purposes.
“We are very pleased with the execution of this
subordinated debt offering and proud that the market has again
signaled a strong vote of confidence in our institution by setting
an initial interest rate on the Notes of 4.25%, which to our
knowledge is among the lowest coupons achieved to-date in a
subordinated debt issuance by a community bank,” said Frank Leto,
President and CEO. He continued, “This successful capital raise
reflects the soundness of our business strategy and positions us
well to support future growth.”
Keefe, Bruyette & Woods acted as Sole
Book-Running Manager, with Boenning & Scattergood, Inc. as
Co-Manager for the Notes offering.
The Notes have been issued pursuant to an
effective shelf registration statement (File No. 333-202805)
(including base prospectus), a preliminary prospectus supplement
filed with the Securities and Exchange Commission (the "SEC"), and
a final prospectus supplement filed with the SEC.
Copies of the final prospectus supplement and
accompanying base prospectus relating to the Notes offering can be
obtained without charge by visiting the SEC's website at
www.sec.gov, or may be obtained from: Keefe, Bruyette & Woods,
A Stifel Company at 787 Seventh Avenue, Fourth Floor, New York, NY
10019 or by calling 1-800-966-1559.
This press release is for informational purposes
only and is not an offer to buy or the solicitation of an offer to
sell any security of the Corporation, nor will there be any sale of
such security in any jurisdiction in which such offer, sale or
solicitation would be unlawful. The offering may be made only by
means of a prospectus supplement and related base prospectus.
Bryn Mawr Bank Corporation (NASDAQ:BMTC),
including its principal subsidiary, The Bryn Mawr Trust Company
(founded in 1889; headquartered in Bryn Mawr, Pa.), is a locally
managed financial services company providing retail and commercial
banking, trust administration and wealth management, and insurance
solutions. Bryn Mawr Bank Corporation has $3.5 billion in corporate
assets and $12.4 billion in wealth assets under management,
administration, supervision, and brokerage (as of 9/30/2017). BMT
operates 25 full service retail bank locations in Montgomery,
Chester, Delaware and Philadelphia Counties in Pennsylvania and New
Castle County in Delaware. For more information please visit
bmtc.com.
FORWARD LOOKING STATEMENTS This press
release 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 the Corporation’s
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,” “indicate,”
“estimate,” “target,” “potentially,” “promising,” “probably,”
“outlook,” “predict,” “contemplate,” “continue,” “plan,”
“forecast,” “project,” “are optimistic,” “are looking,” “are
looking forward” and “believe” or other similar words and phrases
may identify forward-looking statements. Persons reading this press
release 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. Such factors include, among others, that the
integration of acquired businesses with the Corporation may take
longer than anticipated or be more costly to complete and that the
anticipated benefits, including any anticipated cost savings or
strategic gains may be significantly harder to achieve or take
longer than anticipated or may not be achieved, 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 set forth herein are based on management’s current
beliefs and assumptions as of the date hereof and speak only as of
the date they are made. The Corporation does not undertake to
update forward-looking statements. 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 updated by our quarterly or other reports
subsequently filed with the SEC.
Frank Leto, President,
CEO |
610-581-4730 |
Michael Harrington,
CFO |
610-526-2466 |
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