Bryn Mawr Bank Corp. : BMTC-US: Dividend Analysis : November 01st, 2017 (record date) : By the numbers : November 1, 2017

Our analysis is based on comparing Bryn Mawr Bank Corp. with the following peers – Univest Corporation of Pennsylvania, S&T Bancorp, Inc., Fulton Financial Corporation, CNB Financial Corporation, Citizens & Northern Corporation, Penns Woods Bancorp, Inc., Norwood Financial Corp., F.N.B. Corporation, Royal Bancshares of Pennsylvania, Inc. Class A and TriState Capital Holdings, Inc. (UVSP-US, STBA-US, FULT-US, CCNE-US, CZNC-US, PWOD-US, NWFL-US, FNB-US, RBPAA-US and TSC-US).

Bryn Mawr Bank Corp.’s dividend yield is 2.44 percent and its dividend payout is 37.78 percent. This compares to a peer average dividend yield of 2.73 percent and a payout level of 51.91 percent. This relatively lagging dividend performance would normally spur the company to consider some dividend action going forward – but for the fact that the current dividend quality score of 33 out of a possible score of 100 looks weak.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), BMTC-US paid a low quality dividend, which represents a yield of 1.94% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were medium quality and 3 were low quality.
  • The ending cash balance, with a dividend coverage of 1.93x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), BMTC-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.80x), investing cash flow (coverage of -35.55x), issuance cash flow (coverage of 26.13x) and twelve-month prior cash (coverage of 3.46x), for a total dividend coverage of 1.62x.

BMTC-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.42x). Thus, the total coverage including share buybacks is 3.36x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 2.86 2.26 2.36 2.82 1.96 2.44
Dividend Payout (%) 40 38.33 36.82 82.98 38.68 37.78

A complete list of metrics and analysis is available on the company page.

Company Profile

Bryn Mawr Bank Corp. engages in the provision of a full range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation. It operates through Wealth Management, and Banking segments. The Wealth Management segment provides trust administration and other related fiduciary services, custody services, investment management and advisory services, employee benefit account and individual retirement account administration, estate settlement, tax services, financial planning, and brokerage services. The Banking segment is comprised of commercial and retail banking. The company was founded in 1986 and is headquartered in Bryn Mawr, PA.

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