BRYN MAWR BANK CORP - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - BRYN MAWR BANK CORP	d291208d8k.htm

Exhibit 99.1

LOGO

Bryn Mawr Bank Corporation


FOR RELEASE: IMMEDIATELY		Ted Peters, Chairman
FOR MORE INFORMATION CONTACT:		610-581-4800
		J. Duncan Smith, CFO
		610-526-2466

Bryn Mawr Bank Corporation Reports Record Annual Earnings, Increases Wealth

Management Assets by 41.5%, Raises Dividend

BRYN MAWR, Pa., January 30, 2012 - Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $5.2 million and diluted earnings per share of $0.40 for the three months ended December 31, 2011, as compared to net income of $5.6 million and diluted earnings per share of $0.46 for the same period in 2010. Net income for the twelve months ended December 31, 2011 was $19.7 million, or $1.54 per diluted share, as compared to net income of $9.2 million, or $0.85 per diluted share for the same period in 2010. Net income for the twelve months ended December 31, 2011 included pre-tax, due diligence and merger-related expenses of $537 thousand as compared to pre-tax, due diligence and merger-related expenses of $5.7 million for the same period in 2010.

The Corporation reported strong loan growth for the twelve months ended December 31, 2011, with portfolio loans and leases totaling $1.30 billion as of December 31, 2011, an increase of $98.7 million, or 8.2%, from total portfolio loans and leases of $1.20 billion as of December 31, 2010. Ted Peters, Chairman and Chief Executive Officer, commented, “Our record earnings, which are primarily attributed to steady loan growth and enhanced Wealth Management revenue, made 2011 a very good year for the Corporation.”

On January 26, 2012, the Board of Directors of the Corporation declared a quarterly dividend of $0.16 per share, an increase of $0.01, or 6.7%, from the previous quarter’s dividend. The dividend is payable March 1, 2012 to shareholders of record as of February 13, 2012. Mr. Peters

continued, “We are very proud of the Corporation’s sustained, strong performance, as well as the Board of Directors’ decision to increase our quarterly dividend,” adding that, “the merger with First Keystone Financial in 2010, along with our acquisition of the Private Wealth Management Group of The Hershey Trust Company (“PWMG”) in 2011, have proven to be sound business decisions, as both transactions continue to be accretive to earnings.”

Mr. Peters noted, “Unlike many financial institutions, we have made it through the recession fairly well. However, the current low level of interest rates and the continued softness in the economy provide challenges for all banks, including Bryn Mawr Trust.”

SIGNIFICANT ITEMS OF NOTE

•

Net income of $5.2 million for the three months ended December 31, 2011 decreased $395 thousand from $5.6 million for the same period in 2010. The Corporation experienced decreases in the net gain on sale of residential mortgage loans and the net gain on sale of available for sale investment securities, as well as increases in salaries and employee benefits, impairment of mortgage servicing rights and other operating expenses during the three months ended December 31, 2011, as compared to the same period in 2010. These decreases in non-interest income and expense were partially offset by increases in net interest income and fees for wealth management services and decreases in the provision for loan and lease losses, due diligence and merger-related expenses and FDIC insurance for the three months ended December 31, 2011, as compared to the same period in 2010.

•

Total assets as of December 31, 2011 were $1.77 billion, as compared to $1.73 billion as of December 31, 2010. Total portfolio loans and leases of $1.30 billion, as of December 31, 2011, increased $98.7 million, or 8.2%, as compared to $1.20 billion as of December 31, 2010. Loan growth was concentrated in the commercial and industrial, commercial mortgage, construction and residential mortgage categories of the portfolio.

•

Revenue from the Wealth Management Division for the three months ended December 31, 2011 was $6.3 million, an increase of 54.5% from the $4.1 million generated in the

same period in 2010. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2011 were $4.83 billion, an increase of $1.42 billion, or 41.5%, from December 31, 2010, and a $330.2 million, or 7.3%, increase from September 30, 2011. The increases are primarily due to the May 27, 2011 acquisition of PWMG.

•

Net interest income for the three months ended December 31, 2011 was $15.9 million, an increase of $718 thousand, or 4.7%, from $15.2 million for the same period in 2010. The primary reasons for the increase were an 8.0% increase in average portfolio loans along with a 21.4% decrease in average Federal Home Loan Bank (“FHLB”) advances and other borrowings for the three months ended December 30, 2011, as compared to the same period in 2010.

•

Non-interest income for the three months ended December 31, 2011 was $9.5 million as compared to $9.3 million for the same period in 2010, an increase of $225 thousand or 2.4%. The increase in non-interest income was attributable to the $2.2 million increase in fees for wealth management services mentioned above, partially offset by decreases of $1.7 million in the gain on sale of residential mortgage loans and $296 thousand in the gain on sale of available for sale investment securities for the three months ended December 31, 2011, as compared to the same period in 2010. The volume of residential mortgage loan originations for the three months ended December 31, 2011 declined $47.4 million from the same period in 2010, during which the Corporation had experienced an extraordinary influx of refinancing requests. In addition, the Corporation elected to retain a larger portion of the originated residential mortgage loans in its portfolio. As a result, the volume of residential mortgage loans originated for resale for the three months ended December 31, 2011 declined $56.1 million from the same period in 2010.

•

Non-interest expense for the three months ended December 31, 2011 increased $1.7 million, to $16.5 million as compared to $14.8 million for the same period in 2010. Contributing to the increase was a $473 thousand increase in employee benefits, a $247 thousand increase in occupancy related to the acquired PWMG offices and a $694 thousand increase in other operating expenses. The increase in other operating expense was partially attributed to sold-loan

recourse claims and the timing of the receipt of Pennsylvania bank-shares tax credits. In addition, the impairment of mortgage servicing rights of $114 thousand for the three months ended December 31, 2011, was an increase of $470 thousand as compared to the $356 thousand recovery of mortgage servicing rights recorded for the same period in 2010. These increases were partially offset by decreases of $304 thousand and $516 thousand in FDIC insurance and due diligence and merger-related expenses, respectively, for the three months ended December 31, 2011, as compared to the same period in 2010.

•

The tax-equivalent net interest margin of 3.91% for the three months ended December 31, 2011 was an 18 basis point increase from the 3.73% tax-equivalent net interest margin for the same period in 2010. The increase was the result of the Corporation’s use of its low-yielding cash balances, along with proceeds from investment security maturities and sales, to originate higher-yielding loans. In addition, a $54.2 million decrease in average interest-bearing liabilities, coupled with a 16 basis point decline in average rate paid on those liabilities, between the periods, contributed to the improvement.

•

Deposits of $1.4 billion, as of December 31, 2011, increased $40.9 million from December 31, 2010. The 3.1% increase was the result of a $65.9 million increase in money market accounts and a $44.1 million increase in non-interest-bearing accounts, partially offset by decreases of $28.6 million in wholesale deposits and $36.3 million in time deposits between the respective dates.

•

Nonperforming loans and leases as of December 31, 2011 were 1.11% of total portfolio loans and leases, as compared to 0.79% as of December 31, 2010. For the three months ended December 31, 2011, the Corporation recorded net loan and lease recoveries of $43 thousand, as compared to net loan and lease charge-offs of $1.5 million for the same period in 2010. The provision for loan and lease losses for the three months ended December 31, 2011 was $1.1 million, a decrease of $455 thousand from the $1.5 million for the same period in 2010.

•

The allowance for loan and lease losses (the “Allowance”), as of December 31, 2011, of $12.8 million, was 0.98% of portfolio loans and leases, as compared to $10.3 million or 0.86% of portfolio loans and leases as of December 31, 2010. The $2.5 million increase

in the Allowance is primarily reflective of the growth of the Corporation’s loan portfolio, the increase in nonperforming loans and leases, as well as management’s analysis of qualitative factors affecting the loan portfolio.

Other items of note:

•

On December 19, 2011, the Corporation prepaid $12.0 million of 9.7% junior subordinated debentures to its unconsolidated subsidiary, First Keystone Capital Trust I (the “Trust”). Simultaneously, the Trust redeemed $11.2 million of its 9.7% capital securities. Funding for the prepayment was obtained through an adjustable-rate term loan indexed to LIBOR. The prepayment reduced the Corporation’s tier one capital by $12.0 million.

•

On December 31, 2011, the final earn-out payment to Lau Associates, acquired in 2008, was recorded, increasing goodwill related to the acquisition by $1.9 million.

•

In connection with the annual actuarial review of the Corporation’s qualified defined benefit pension plan (the “Pension Plan”), which was frozen in 2008, the Corporation recorded a $7.1 million increase in its pension obligation. This actuarial loss was related to a decrease in the discount rate used to value the Pension Plan obligation, along with lower-than-expected performance of the Pension Plan’s investments for the twelve months ended December 31, 2011. The increase in pension obligation negatively impacted the Corporation’s tangible equity by increasing other comprehensive loss by $4.7 million for the twelve months ended December 31, 2011. On December 31, 2011, the Corporation made a $10.0 million tax-deductible contribution to the Pension Plan.

•

The capital ratios for the Bank and the Corporation, as of December 31, 2011, as shown in the table on page 15, indicate levels above those deemed to be considered “well capitalized.” The Corporation’s tangible equity ratio, as of December 31, 2011, increased 24 basis points, to 8.25%, as compared to 8.01% as of December 31, 2010. This increase in the tangible equity ratio was the result of a 4.4% increase in tangible equity, which was amplified by a smaller increase in tangible assets of 1.5%. The tangible equity increase was largely attributable to the increase in retained earnings and the stock issued through the Corporation’s Dividend Reinvestment and Stock Purchase Plan,

partially offset by an increase in accumulated other comprehensive losses related to the increase in pension obligation mentioned above, and increases in goodwill and other intangibles related to the PWMG acquisition and the final earn-out payment to Lau Associates.

EARNINGS CONFERENCE CALL

Due to scheduling conflicts, the earnings conference call will not occur on the date immediately following the Corporation’s earning release, as it has in the past. The Corporation will hold an earnings conference call at 8:30 a.m. ET on Wednesday, February 1, 2012. Interested parties may participate by calling 1-877-317-6789, conference number 10007999. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through February 16, 2012. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10007999.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation’s website. To access the call, please visit the website at http://www.bmtc.com/investor_01.cfm. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation or by calling Aaron Strenkoski, Vice President – Investments & Shareholder Relations at 610-581-4822.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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”, “estimate”, “target”, “potentially”, “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, 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 including our acquisition of the Private Wealth Management Group of the Hershey Trust Company; 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 well as any changes in risk factors that we may identify in our quarterly or other reports filed with the SEC.

# # # #

Bryn Mawr Bank Corporation

Consolidated Statements of Income - (unaudited)

(Dollars in thousands, except per share data)


	For The Three Months Ended
	Dec 31, 2011			Sept 30, 2011			June 30, 2011			Mar 31, 2011			Dec 31, 2010

Interest income	$	18,690		$	18,672		$	18,851		$	18,226		$	18,605
Interest expense		2,772			3,018			3,052			2,819			3,405


Net interest income		15,918			15,654			15,799			15,407			15,200
Provision for loan and lease losses		1,056			1,828			1,919			1,285			1,511

Net interest income after provision for loan and lease losses		14,862			13,826			13,880			14,122			13,689

Fees for wealth management services		6,306			6,098			5,075			4,190			4,081
Loan servicing and other fees		454			449			460			461			443
Service charges on deposits		654			646			615			580			645
Net gain on sale of residential mortgage loans		699			764			656			398			2,398
Net gain on sale of available for sale investments		373			343			577			490			669
Net gain (loss) on sale of other real estate owned (“OREO”)		(38	)		70			(110	)		(19	)		—
BOLI income		114			115			118			115			135
Other operating income		937			791			774			995			902

Non-interest income		9,499			9,276			8,165			7,210			9,273

Salaries and wages		7,404			7,639			6,700			6,341			7,150
Employee benefits		1,889			1,674			1,591			1,735			1,416
Occupancy and bank premises		1,424			1,225			1,241			1,286			1,177
Furniture fixtures and equipment		938			865			810			896			931
Advertising		257			204			441			264			321
Net impairment (recovery) of mortgage servicing rights		114			468			196			8			(356	)
Amortization of mortgage servicing rights		225			197			158			169			301
Intangible asset amortization		522			541			266			161			164
FDIC insurance		218			238			250			480			522
Merger related / due diligence expense		(79	)		135			174			307			437
Impairment of OREO		124			—			—			127			—
Professional fees		647			516			738			410			603
Other operating expenses		2,792			2,283			2,304			2,013			2,098

Non-interest expense		16,475			15,985			14,869			14,197			14,764

Income before income taxes		7,886			7,117			7,176			7,135			8,198
Income tax expense		2,716			2,095			2,371			2,419			2,633

Net income	$	5,170		$	5,022		$	4,805		$	4,716		$	5,565


Per share data:
Weighted average shares outstanding		12,989,355			12,948,979			12,693,782			12,344,710			12,192,260
Dilutive common shares		37,827			36,306			24,491			14,401			10,742

Adjusted weighted average dilutive shares		13,027,182			12,985,285			12,718,273			12,359,111			12,203,002


Basic earnings per common share	$	0.40		$	0.39		$	0.38		$	0.38		$	0.46

Diluted earnings per common share	$	0.40		$	0.39		$	0.38		$	0.38		$	0.46

Dividend declared per share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.14

Effective tax rate		34.4	%		29.4	%		33.0	%		33.9	%		32.1	%

Bryn Mawr Bank Corporation

Consolidated Statements of Income - (unaudited)

(Dollars in thousands, except per share data)


	For The Twelve Months Ended
	Dec 31, 2011			Dec 31, 2010

Interest income	$	74,439		$	64,796
Interest expense		11,661			12,646


Net interest income		62,778			52,150
Provision for loan and lease losses		6,088			9,854

Net interest income after provision for loan and lease losses		56,690			42,296

Fees for wealth management services		21,669			15,499
Loan servicing and other fees		1,824			1,626
Service charges on deposits		2,495			2,307
Net gain on sale of residential mortgage loans		2,517			4,718
Net gain on sale of available for sale investments		1,783			2,472
BOLI income		462			266
Net loss on sale of other real estate owned (“OREO”)		(97	)		(114	)
Other operating income		3,497			2,601

Non-interest income		34,150			29,375

Salaries and wages		28,084			24,829
Employee benefits		6,889			5,984
Occupancy and bank premises		5,176			4,257
Furniture fixtures and equipment		3,509			2,778
Advertising		1,166			1,142
Net impairment of mortgage servicing rights		786			30
Amortization of mortgage servicing rights		749			923
Intangible asset amortization		1,490			484
FDIC insurance		1,186			1,551
Merger related / due diligence expense		537			5,714
Impairment of OREO		251			381
Professional fees		2,311			2,140
Other operating expenses		9,392			7,772

Non-interest expense		61,526			57,985

Income before income taxes		29,314			13,686
Income tax expense		9,601			4,512

Net income	$	19,713		$	9,174


Per share data:
Weighted average shares outstanding		12,746,534			10,765,657
Dilutive common shares		35,767			12,312

Adjusted weighted average shares		12,782,301			10,777,969


Basic earnings per common share	$	1.55		$	0.85

Diluted earnings per common share	$	1.54		$	0.85

Dividend declared per share	$	0.60		$	0.56

Effective tax rate		32.8	%		33.0	%

Bryn Mawr Bank Corporation

Consolidated Balance Sheets - (unaudited)

(Dollars in thousands)


	Dec 31, 2011			Sept 30, 2011			June 30, 2011			Mar 31, 2011			Dec 31, 2010
Assets

Interest bearing deposits with banks	$	57,265		$	52,205		$	34,780		$	68,568		$	78,410
Money market funds		104			106			113			401			113
Investment securities - AFS		272,317			275,729			289,762			289,491			317,052

Loans held for sale		1,588			4,857			5,923			1,554			4,838

Portfolio loans:
Consumer		11,429			12,235			12,116			11,594			12,200
Commercial & industrial		267,204			271,228			257,771			240,313			239,366
Commercial mortgages		419,130			414,656			404,000			391,642			385,615
Construction		52,844			59,303			55,804			55,823			45,303
Residential mortgages		306,478			279,696			280,093			277,571			261,983
Home equity lines & loans		207,917			209,687			210,477			208,107			216,853
Leases		30,390			31,552			33,187			34,399			35,397

Total portfolio loans and leases		1,295,392			1,278,357			1,253,448			1,219,449			1,196,717

Earning assets		1,626,666			1,611,254			1,584,026			1,579,463			1,597,130

Cash and due from banks		11,771			10,801			20,620			11,609			10,961
Allowance for loan and lease losses		(12,753	)		(11,654	)		(11,341	)		(10,649	)		(10,275	)
Premises and equipment		29,328			29,615			29,469			28,996			29,158
Accrued interest receivable		6,061			6,075			6,103			6,151			6,470
Mortgage servicing rights		4,041			4,206			4,662			4,879			4,925
Goodwill		25,097			23,169			23,169			17,659			17,660
Other intangible assets		18,014			18,536			19,077			6,902			7,064
Bank owned life insurance (“BOLI”)		19,434			19,321			19,205			19,087			18,972
FHLB stock		11,588			12,198			12,840			13,516			14,227
Deferred income taxes		13,720			13,781			13,400			14,527			14,551
Other investments		5,612			4,982			5,229			5,203			5,156
Other assets		16,328			14,835			14,268			16,598			15,769


Total assets	$	1,774,907		$	1,757,119		$	1,740,727		$	1,713,941		$	1,731,768


Liabilities and shareholders’ equity

Interest-bearing checking	$	233,562		$	224,609		$	222,128		$	227,256		$	234,107
Money market		393,729			384,463			350,285			345,703			327,824
Savings		130,613			130,910			129,684			131,671			134,163
Other wholesale deposits		65,173			65,428			65,185			65,574			80,112
Wholesale time deposits		23,550			28,992			31,818			34,639			37,201
Time deposits		209,333			224,331			242,683			240,207			245,669

Interest-bearing deposits		1,055,960			1,058,733			1,041,783			1,045,050			1,059,076

Non-interest bearing deposits		326,409			292,415			295,656			271,010			282,356

Total deposits		1,382,369			1,351,148			1,337,439			1,316,060			1,341,432

Subordinated debentures		22,500			22,500			22,500			22,500			22,500
Junior subordinated debentures		—			11,992			12,004			12,017			12,029
Short-term borrowings		12,863			22,535			9,541			23,326			10,051
FHLB advances and other borrowings		147,795			140,532			152,501			147,238			160,144
Other liabilities		23,467			21,278			23,359			22,161			24,194
Shareholders’ equity		185,913			187,134			183,383			170,639			161,418


Total liabilities and shareholders’ equity	$	1,774,907		$	1,757,119		$	1,740,727		$	1,713,941		$	1,731,768

Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets - (unaudited)

(Dollars in thousands)


	2011 4Q			2011 3Q			2011 2Q			2011 1Q			2010 4Q
Assets

Interest bearing deposits with banks	$	56,570		$	57,855		$	47,159		$	47,203		$	108,278
Money market funds		109			108			217			177			138
Trading securities		—			—			—			—			—
Investment securities		277,946			281,567			292,097			311,181			334,252
Loans held for sale		3,888			6,060			4,347			2,315			5,981
Portfolio loans and leases		1,282,916			1,253,804			1,244,140			1,201,797			1,185,456

Earning assets		1,621,429			1,599,394			1,587,960			1,562,673			1,634,105

Cash and due from banks		11,516			11,905			12,224			12,627			13,583
Allowance for loan and lease losses		(12,110	)		(11,790	)		(11,091	)		(10,577	)		(10,403	)
Premises and equipment		29,586			29,706			29,335			29,120			29,159
Goodwill		23,190			23,169			19,745			17,659			16,682
Other intangible assets		18,319			18,860			11,669			7,001			7,164
Bank owned life insurance		19,359			19,246			19,128			19,011			18,885
Deferred income taxes		13,878			13,200			14,105			14,566			15,143
Other assets		39,884			40,266			42,805			44,651			43,817


Total assets	$	1,765,051		$	1,743,956		$	1,725,880		$	1,696,731		$	1,768,135


Liabilities and shareholders’ equity

Interest-bearing checking	$	224,648		$	225,569		$	229,451		$	227,703		$	237,776
Money market		394,150			367,276			355,740			338,565			329,601
Savings		132,617			131,421			132,046			131,610			142,434
Other wholesale deposits		65,127			65,177			65,129			75,884			74,330
Wholesale deposits		27,749			29,187			34,106			30,723			38,863
Time deposits		214,684			234,645			237,771			241,503			253,631

Interest-bearing deposits		1,058,975			1,053,275			1,054,243			1,045,988			1,076,635

Non-interest bearing deposits		304,883			290,468			279,210			275,295			280,944

Total deposits		1,363,858			1,343,743			1,333,453			1,321,283			1,357,579

Subordinated debentures		22,500			22,500			22,500			22,500			22,500
Junior subordinated debentures		10,294			12,000			12,012			12,025			12,037
Short-term borrowings		15,147			10,908			9,260			10,155			11,827
FHLB advances and other borrowings		140,177			148,963			149,215			143,327			178,372
Other liabilities		24,991			21,481			24,562			23,259			26,601
Shareholders’ equity		188,084			184,361			174,878			164,182			159,219


Total liabilities and shareholders’ equity	$	1,765,051		$	1,743,956		$	1,725,880		$	1,696,731		$	1,768,135

Bryn Mawr Bank Corporation

Consolidated Average Balance Sheets - (unaudited)

(Dollars in thousands)


	2011 Year-to-date			2010 Year-to-date
Assets

Interest bearing deposits with banks	$	52,238		$	73,046
Money market funds		152			475
Investment securities		290,582			276,887
Loans held for sale		4,196			3,951
Portfolio loans and leases		1,245,875			1,037,158

Earning assets		1,593,043			1,391,517

Cash and due from banks		12,065			11,750
Allowance for loan and lease losses		(11,397	)		(10,248	)
Premises and equipment		29,439			25,603
Goodwill		20,962			11,531
Intangible assets		14,007			6,307
Bank owned life insurance		19,187			9,486
FHLB stock		12,595			10,838
Deferred tax asset		13,933			9,535
Other assets		29,288			27,051


Total assets	$	1,733,122		$	1,493,370


Liabilities and shareholders’ equity

Interest-bearing checking	$	226,831		$	187,376
Money market		364,094			285,963
Savings		131,925			121,417
Other wholesale deposits		67,793			62,875
Wholesale deposits		30,429			38,379
Time deposits		232,084			201,947

Interest-bearing deposits		1,053,156			897,957

Non-interest bearing deposits		287,553			222,715

Total deposits		1,340,709			1,120,672

Subordinated debentures		22,500			22,500
FHLB advances and other borrowings		145,421			175,972
Junior subordinated debentures		11,580			8,108
Short-term borrowings		11,380			5,715
Other liabilities		23,573			24,602
Shareholders’ equity		177,959			135,801


Total liabilities and shareholders’ equity	$	1,733,122		$	1,493,370

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

December 31, 2011


For the period end:	2011 4Q			2011 3Q			2011 2Q			2011 1Q			2010 4Q
Asset Quality Data

Nonaccrual loans and leases	$	14,315		$	14,208		$	16,128		$	10,776		$	9,497
90 + days past due loans - still accruing		—			—			—			5			10

Nonperforming loans and leases		14,315			14,208			16,128			10,781			9,507
Other real estate owned		549			1,301			811			2,341			2,527

Total nonperforming assets	$	14,864		$	15,509		$	16,939		$	13,122		$	12,034


Troubled debt restructurings included in nonperforming	$	4,300		$	901		$	1,478		$	2,229		$	1,879
Troubled debt restructurings in compliance with modified terms		7,166			7,182			5,469			4,766			4,693

Total troubled debt restructurings	$	11,466		$	8,083		$	6,947		$	6,995		$	6,572

Nonperforming loans and leases / portfolio loans		1.11	%		1.11	%		1.29	%		0.88	%		0.79	%
Nonperforming assets / assets		0.84	%		0.88	%		0.97	%		0.77	%		0.69	%

Net loan (recoveries) charge-offs (annualized)/ average loans		-0.02	%		0.49	%		0.36	%		0.22	%		0.46	%
Net lease charge-offs (annualized)/ average leases		0.22	%		0.37	%		1.81	%		3.26	%		2.16	%
Net loan and lease (recoveries) charge-offs (annualized)/ average loans and leases		-0.01	%		0.49	%		0.40	%		0.30	%		0.52	%

Delinquency rate - loans and leases >30 days		1.37	%		1.33	%		1.35	%		1.14	%		1.28	%

Delinquent loans and leases - 30-89 days	$	5,311		$	4,480		$	3,492		$	2,604		$	5,570

Delinquency rate - loans and leases 30-89 days		0.29	%		0.35	%		0.28	%		0.22	%		0.48	%

Changes in the Allowance for loan and lease losses

Balance, beginning of period	$	11,654		$	11,341		$	10,648		$	10,275		$	10,297

Charge-offs		(466	)		(1,817	)		(1,325	)		(1,040	)		(1,743	)

Recoveries		509			302			99			128			210


Net (charge-offs) / recoveries		43			(1,515	)		(1,226	)		(912	)		(1,533	)

Provision for loan and lease losses		1,056			1,828			1,919			1,285			1,511


Balance, end of period	$	12,753		$	11,654		$	11,341		$	10,648		$	10,275


Allowance for loan and lease losses / loans and leases		0.98	%		0.91	%		0.90	%		0.87	%		0.86	%
Allowance for loan and lease losses / nonperforming loans and leases		89.1	%		82.0	%		70.3	%		98.8	%		108.1	%

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

December 31, 2011


For the period and period end:	2011 4Q			2011 3Q			2011 2Q			2011 1Q			2010 4Q
Selected ratios (annualized):

Return on average assets		1.16	%		1.14	%		1.12	%		1.13	%		1.25	%
Return on average shareholders’ equity		10.91	%		10.81	%		11.02	%		11.65	%		13.87	%
Return on average tangible equity (a non-GAAP measure)⁽²⁾		14.00	%		14.00	%		13.44	%		13.71	%		16.31	%
Yield on loans and leases*		5.46	%		5.52	%		5.63	%		5.65	%		5.70	%
Yield on interest earning assets*		4.59	%		4.65	%		4.78	%		4.76	%		4.56	%
Cost of interest bearing funds		0.88	%		0.96	%		0.98	%		0.93	%		1.04	%
Net interest margin*		3.91	%		3.90	%		4.01	%		4.03	%		3.73	%
Book value per share	$	14.09		$	14.30		$	14.17		$	13.61		$	13.24
Tangible book value per share	$	10.82		$	11.11		$	10.91		$	11.65		$	11.21
Period end shares outstanding		13,194,439			13,086,770			12,941,320			12,538,926			12,195,240

Selected data:

Mortgage loans originated	$	60,467		$	38,998		$	31,072		$	38,144		$	107,905

Mortgage loans sold - servicing retained	$	20,883		$	26,090		$	14,957		$	13,302		$	77,448
Mortgage loans sold - servicing released		1,164			1,922			2,196			948			677

Total mortgage loans sold	$	22,047		$	28,012		$	17,153		$	14,250		$	78,125

Basis point yield on loans sold		317			273			382			279			307

Mortgage loans serviced for others	$	574,422		$	593,125		$	595,196		$	596,655		$	605,485

Total Wealth assets under management / administration / supervision / brokerage⁽¹⁾	$	4,831,631		$	4,501,433		$	4,830,417		$	3,600,649		$	3,412,890

*	Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax equivalent basis.

⁽¹⁾	Brokerage Assets represent assets held at a registered broker dealer under a networking agreement.

⁽²⁾	Tangible equity equals shareholders’ equity minus goodwill and other intangible assets.

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

December 31, 2011


	2011 Year-to-date			2010 Year-to-date
Selected ratios (annualized):

Return on average assets		1.14	%		0.61	%
Return on average shareholders’ equity		11.08	%		6.76	%
Return on average tangible equity (a non-GAAP measure)⁽²⁾		13.79	%		7.78	%
Yield on loans and leases*		5.56	%		5.72	%
Yield on interest earning assets*		4.69	%		4.70	%
Cost of interest bearing funds		0.94	%		1.14	%
Net interest margin*		3.96	%		3.79	%

Selected data:

Mortgage loans originated	$	168,681		$	227,904

Mortgage loans sold - servicing retained	$	75,232		$	148,417
Mortgage loans sold - servicing released		6,230			8,028

Total mortgage loans sold	$	81,462		$	156,445

*	Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax equivalent basis.

⁽²⁾	Tangible equity equals shareholders’ equity minus goodwill and other intangible assets.


Investment Portfolio	As of Dec 31, 2011							As of December 31, 2010
($’s in thousands) SECURITY DESCRIPTION	Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)			Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)

U. S. treasury obligations	$	—	$	—	$	—		$	5,011	$	5,145	$	134

Obligations of U. S. government and agencies		90,686		90,942		256			156,301		156,638		337

State & political subdivisions		8,210		8,366		156			32,013		32,272		259

Mortgage backed securities		109,280		111,462		2,182			72,907		73,527		620

Collateralized mortgage obligations		32,418		32,624		206			2,068		2,098		30

Equity securities		—		—		—			243		256		13

Other debt securities		1,900		1,882		(18	)		1,750		1,750		—

Bond - mutual funds		12,091		11,904		(187	)		34,491		34,722		231

Investment CD’s		2,410		2,419		9			—		—		—

Corporate bonds		12,616		12,718		102			10,803		10,644		(159	)


Total Investment Portfolio	$	269,611	$	272,317	$	2,706		$	315,587	$	317,052	$	1,465

Capital Ratios


	Regulatory Minimum To Be Well Capitalized			12/31/2011			9/30/2011			6/30/2011			3/31/2011			12/31/2010
Bryn Mawr Trust Company Consolidated

Tier I Capital to Risk Weighted Assets (RWA)		6.00	%		11.75	%		11.32	%		11.05	%		11.45	%		11.05	%
Total (Tier II) Capital to RWA		10.00	%		14.34	%		13.82	%		13.56	%		13.91	%		13.47	%
Tier I Leverage Ratio		5.00	%		9.34	%		9.15	%		8.94	%		9.29	%		8.62	%
Tangible Equity Ratio					8.65	%		8.79	%		8.54	%		8.78	%		8.42	%

Bryn Mawr Bank Corporation

Tier I Capital to Risk Weighted Assets (RWA)		6.00	%		11.23	%		11.71	%		11.55	%		12.07	%		11.30	%
Total (Tier II) Capital to RWA		10.00	%		13.80	%		14.19	%		14.05	%		14.52	%		13.71	%
Tier I Leverage Ratio		5.00	%		8.94	%		9.47	%		9.36	%		9.80	%		8.85	%
Tangible Equity Ratio					8.25	%		8.48	%		8.31	%		8.65	%		8.01	%

Bryn Mawr Bank Corporation

Quarterly Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields - (unaudited)


	4th Quarter 2011								3rd Quarter 2011								2nd Quarter 2011								1st Quarter 2011								4th Quarter 2010
(dollars in thousands)	Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid

Assets:
Interest-bearing deposits with other banks	$	56,570		$	27		0.19	%	$	57,855		$	29		0.20	%	$	47,159		$	27		0.23	%	$	47,203		$	32		0.27	%	$	108,208		$	66		0.24	%
Money market funds		109			—		—			108			—		—			217			—		—			177			—		—			138			—		—
Investment securities available for sale:
Taxable		271,410			998		1.46	%		277,634			1,159		1.66	%		287,007			1,357		1.90	%		285,506			1,312		1.86	%		305,281			1,315		1.71	%
Tax-exempt		6,536			32		1.94	%		3,933			18		1.82	%		5,090			25		1.97	%		25,675			244		3.85	%		28,971			273		3.74	%

Investment securities available for sale		277,946			1,030		1.47	%		281,567			1,177		1.66	%		292,097			1,382		1.90	%		311,181			1,556		2.03	%		334,252			1,588		1.88	%

Loans and leases*		1,286,804			17,699		5.46	%		1,259,864			17,529		5.52	%		1,248,487			17,516		5.63	%		1,204,112			16,771		5.65	%		1,191,437			17,110		5.70	%


Total interest earning assets		1,621,429			18,756		4.59	%		1,599,394			18,735		4.65	%		1,587,960			18,925		4.78	%		1,562,673			18,359		4.76	%		1,634,035			18,764		4.56	%

Cash and due from banks		11,516								11,905								12,224								12,627								13,583
Less allowance for loan and lease losses		(12,110	)							(11,790	)							(11,091	)							(10,577	)							(10,403	)
Other assets		144,216								144,447								136,787								132,008								130,920


Total assets	$	1,765,051							$	1,743,956							$	1,725,880							$	1,696,731							$	1,768,135


Liabilities:

Savings, NOW and market rate deposits	$	751,415		$	711		0.38	%	$	724,266		$	772		0.42	%	$	717,237		$	759		0.42	%	$	697,878		$	718		0.42	%	$	709,811		$	793		0.44	%
Other wholesale deposits		65,127			50		0.30	%		65,177			51		0.31	%		65,129			52		0.32	%		75,884			70		0.37	%		74,331			88		0.47	%
Wholesale deposits		27,749			73		1.04	%		29,187			86		1.17	%		34,106			87		1.02	%		30,723			75		0.99	%		38,862			145		1.48	%
Time deposits		214,684			520		0.96	%		234,645			585		0.99	%		237,771			620		1.05	%		241,503			560		0.94	%		253,631			626		0.98	%

Total interest-bearing deposits		1,058,975			1,354		0.51	%		1,053,275			1,494		0.56	%		1,054,243			1,518		0.58	%		1,045,988			1,423		0.55	%		1,076,635			1,652		0.61	%

Subordinated debentures		22,500			287		5.06	%		22,500			279		4.92	%		22,500			279		4.97	%		22,500			277		4.99	%		22,500			282		4.97	%
Junior subordinated debentures		10,294			236		9.10	%		12,000			271		8.96	%		12,012			271		9.05	%		12,024			271		9.14	%		12,037			272		8.97	%
Short-term borrowings		15,147			6		0.16	%		10,908			6		0.22	%		9,260			6		0.26	%		10,155			6		0.24	%		11,827			7		0.23	%
FHLB advances and other borrowings		140,177			889		2.52	%		148,963			968		2.58	%		149,215			978		2.63	%		143,328			842		2.38	%		178,309			1,192		2.65	%

Total interest-bearing liabilities		1,247,093			2,772		0.88	%		1,247,646			3,018		0.96	%		1,247,230			3,052		0.98	%		1,233,995			2,819		0.93	%		1,301,308			3,405		1.04	%

Noninterest-bearing deposits		304,883								290,468								279,210								275,295								280,944
Other liabilities		24,991								21,481								24,562								23,259								26,601

Total noninterest-bearing liabilities		329,874								311,949								303,772								298,554								307,545

Total liabilities		1,576,967								1,559,595								1,551,002								1,532,549								1,608,853

Shareholders’ equity		188,084								184,361								174,878								164,182								159,219


Total liabilities and shareholders’ equity	$	1,765,051							$	1,743,956							$	1,725,880							$	1,696,731							$	1,768,072


Interest income to earning assets							4.59	%							4.65	%							4.78	%							4.76	%							4.56	%

Net interest spread							3.71	%							3.69	%							3.80	%							3.83	%							3.52	%
Effect of noninterest-bearing sources							0.20	%							0.21	%							0.21	%							0.20	%							0.21	%


Net interest income/ margin on earning assets				$	15,984		3.91	%				$	15,717		3.90	%				$	15,873		4.01	%				$	15,540		4.03	%				$	15,359		3.73	%


Tax equivalent adjustment				$	66		0.02	%				$	64		0.02	%				$	74		0.02	%				$	133		0.04	%				$	159		0.04	%

*	Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.

Bryn Mawr Bank Corporation

Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields

For the twelve months ended December 31,


	2011								2010
(dollars in thousands)	Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid

Assets:
Interest-bearing deposits with other banks	$	52,238			115		0.22	%	$	73,046		$	178		0.24	%
Federal funds sold		—			—		—			—			—		—	%
Money market funds		152			—			%		475			1		0.21	%
Investment securities available for sale:
Taxable		280,343			4,787		1.71	%		249,714			4,555		1.82	%
Tax-exempt		10,239			319		3.12	%		27,173			1,094		4.03	%


Investment securities available for sale		290,582			5,106		1.76	%		276,887			5,649		2.04	%

Loans and leases*		1,250,071			69,554		5.56	%		1,041,109			59,579		5.72	%


Total interest earning assets		1,593,043			74,775		4.69	%		1,391,517			65,407		4.70	%

Cash and due from banks		12,065								11,750
Less allowance for loan and lease losses		(11,397	)							(10,248	)
Other assets		139,411								100,351


Total assets	$	1,733,122							$	1,493,370


Liabilities:

Savings, NOW and market rate deposits	$	722,850		$	2,958		0.41	%	$	594,756		$	2,957		0.50	%
IND / IDC deposits		67,793			224		0.33	%		62,875			301		0.48	%
Wholesale deposits		30,429			321		1.05	%		38,379			651		1.70	%
Time deposits		232,084			2,285		0.98	%		201,947			2,192		1.09	%

Total interest-bearing deposits		1,053,156			5,788		0.55	%		897,957			6,101		0.68	%

Subordinated debt		22,500			1,123		4.99	%		22,500			1,129		5.02	%
Junior subordinated debentures		11,580			1,049		9.06	%		6,076			494		8.13
Short-term borrowings		11,380			24		0.21	%		5,715			16		0.28
FHLB advances and other borrowings		145,421			3,677		2.53	%		178,005			4,906		2.76	%

Total interest-bearing liabilities		1,244,037			11,661		0.94	%		1,110,253			12,646		1.14	%

Noninterest-bearing deposits		287,553								222,715
Other liabilities		23,573								24,601

Total noninterest-bearing liabilities		311,126								247,316

Total liabilities		1,555,163								1,357,569

Shareholders’ equity		177,959								135,801


Total liabilities and shareholders’ equity	$	1,733,122							$	1,493,370


Interest income to earning assets							4.69	%							4.70	%

Net interest spread							3.75	%							3.56	%
Effect of noninterest-bearing sources							0.21	%							0.23	%


Net interest income/ margin on earning assets				$	63,114		3.96	%				$	52,761		3.79	%


Tax equivalent adjustment				$	336		0.02	%				$	611		0.04	%

*	Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.

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BRYN MAWR BANK CORP Reports