Kroll Bond Rating Agency Comments on Bryn Mawr Bank Corporation and Royal Bancshares of Pennsylvania, Inc. Merger

Kroll Bond Rating Agency (KBRA) comments on Bryn Mawr Bank Corporation and Royal Bancshares of Pennsylvania, Inc. merger. The report makes the following key points:

  • Bryn Mawr Bank Corporation (NASDAQ:BMTC, “Bryn Mawr”) and Royal Bancshares of Pennsylvania, Inc. (NASDAQ:RBPAA, “Royal Bancshares”) announced a definitive agreement and plan of merger with Bryn Mawr Bank Corporation as the surviving entity.
  • The deal is expected to close in the third quarter of 2017, and Bryn Mawr anticipates the merger to be accretive in the first full year of operation, excluding the effects of non-recurring merger-related expenses.
  • After completion of the merger, Bryn Mawr’s branch network will expand to 47 locations throughout Pennsylvania, Delaware, and New Jersey with pro-forma total assets of approximately $4.25 billion.
  • In July 2016, KBRA affirmed the senior unsecured debt rating of A-, subordinated debt rating of BBB+, and short-term debt rating of K2 for Bryn Mawr Bank Corporation. In addition, KBRA affirmed the senior unsecured debt and deposit rating of A and short-term deposit rating of K1, as well as assigned a subordinated debt rating of A- and short-term debt rating of K1 for the subsidiary bank, Bryn Mawr Trust. The Outlook on all long-term ratings is Stable.
  • Royal Bancshares appears to have sound overall financial condition. As of third quarter 2016 data, KBRA’s Subscription Rating Service rated Royal Bancshares’ lead subsidiary, Royal Bank America, B- on the financial strength rating scale.
  • In KBRA’s view, the transaction is viewed as neutral to the ratings of Bryn Mawr Bank Corporation in the short term and potentially positive in the medium and long term as it further enhances its market presence within its existing operating footprint, while extending its reach into the attractive adjacent markets.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.

Please click here to view the report.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts:

Analytical Contacts:
Kroll Bond Rating Agency
M Scott Durant, 301-969-3248
Associate Director
sdurant@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com

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