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

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8-K - BRYN MAWR BANK CORPORATION -- FORM 8-K - BRYN MAWR BANK CORP	d385831d8k.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 Second Quarter Net Income Increase of 9.5% Despite $914 Thousand in Merger Costs, Completes Davidson Trust Acquisition

BRYN MAWR, Pa., July 26, 2012 - Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today announced net income for the three months ended June 30, 2012 of $5.3 million, an increase of $456 thousand, or 9.5%, from net income of $4.8 million for the same period in 2011. Diluted earnings per share of $0.40 for the three months ended June 30, 2012 was an increase of $0.02 per share as compared to diluted earnings per share of $0.38 for the same period in 2011. Included in the net income for the three months ended June 30, 2012 are tax-effected due diligence and merger-related expenses of $599 thousand, as compared to tax-effected due diligence and merger-related expenses of $117 thousand for the same period in 2011, an increase of $482 thousand.

On July 26, 2012, the Board of Directors of the Corporation declared a quarterly dividend of $0.16 per share. The dividend is payable September 1, 2012, to shareholders of record as of August 7, 2012.

On May 15, 2012, the Corporation announced the completion of its acquisition of Davidson Trust Company (“DTC”). The acquisition increased the Wealth Management Division’s assets under management by approximately $1.0 billion.

Ted Peters, Chairman and Chief Executive Officer commented, “We are pleased with our strong performance for the first half of the year and confident that our recent acquisition of the Davidson Trust Company will have a positive effect on our bottom line.” Frank Leto, Executive Vice President and head of the Wealth Management Division added, “The acquisition has expanded our talented and experienced Wealth staff, helping secure our position as a premier wealth services provider in the area.”

As announced, on May 2, 2012, the Corporation entered into a definitive agreement to acquire certain consumer and business deposit and loan accounts, as well as a branch location in Wilmington, Delaware, from the First Bank of Delaware. The purchase is expected to increase both loans and deposits by approximately $100 million each and is expected to close in the fourth quarter of 2012.

Mr. Peters continued, “Like all banks, the current low interest rate environment continues to exert pressure on our net interest margin as we strive to competitively price our loan and deposit products. However, we anticipate considerable opportunities from the First Bank of Delaware transaction as we expect to add $100 million in earning assets and to leverage our already established wealth management presence within Delaware.” Joe Keefer, Executive Vice President and Chief Lending Officer added, “We look forward to working with our new customers in Delaware and welcoming them to Bryn Mawr Trust.”

SIGNIFICANT ITEMS OF NOTE

•

The financial results for the three months ended June 30, 2012 as compared to the same period in 2011 reflect both the impact of the May 27, 2011 acquisition of the Private Wealth Management Group of the Hershey Trust Company (“PWMG”) and, to a lesser extent, the May 15, 2012 acquisition of DTC.

•

Net income for the three months ended June 30, 2012 increased $456 thousand, or 9.5%, as compared to the same period in 2011. The Corporation experienced substantial increases in revenue for wealth management services and gain on sale of residential mortgage loans, as well as a decrease in the provision for loan and lease losses for the three months ended June 30, 2012, as compared to the same period in 2011. These improvements were partially offset by an increase in due diligence and merger-related expenses, salaries and employee benefits, intangible asset amortization and other operating expenses between the periods.

•

Tax-equivalent net interest income of $16.0 million for the three months ended June 30, 2012 increased $127 thousand or 0.8% from the $15.9 million of tax-equivalent net interest income for the same period in 2011. This increase was

due to a $767 thousand reduction in the interest paid on interest-bearing liabilities, partially offset by a $647 thousand decrease in the interest earned on interest-earning assets as a result of the continued low-rate environment.

•

The tax-equivalent net interest margin of 3.85%, for the three months ended June 30, 2012 was a 16 basis point decline from the 4.01% tax-equivalent net interest margin for the same period in 2011, as the yield on interest-earning assets decreased 38 basis points as compared to the same period in 2011. This decrease was partially offset by a 26 basis point decrease in the rate paid on interest-bearing liabilities between the periods.

•

Revenue for wealth management services for the three months ended June 30, 2012 was $7.2 million, an increase of 42.1% from the $5.1 million generated during the same period in 2011. Wealth Management Division assets under management, administration, supervision and brokerage as of June 30, 2012 were $6.3 billion, an increase of $1.4 billion, or 30.0%, from June 30, 2011. This increase was the result of the May 15, 2012 acquisition of DTC, along with organic growth resulting from the continued successes of the division’s strategic initiatives.

•

Net gain on sale of residential mortgage loans for the three months ended June 30, 2012 was $1.3 million as compared to $656 thousand for the same period in 2011. The 98.8% increase was attributable to a $20.4 million, or 65.5%, increase in residential mortgage loan originations between the periods, coupled with the Corporation’s decision to sell a larger portion of these loans, rather than hold them in portfolio. During the three months ended June 30, 2012, the Corporation sold $44.2 million of residential mortgage loans, representing 86.0% of originations, as compared to $17.2 million, or 55.2% of originations, during the same period in 2011.

•

Non-interest income of $11.4 million, representing 41.6% of total revenue (net interest income plus non-interest income), for the three months ended June 30, 2012, increased $3.2 million, or 39.0%, from the same period in 2011. Non-interest income was 34.1% of total revenue for the three months ended June 30, 2011.

•

Salaries and employee benefits for the three months ended June 30, 2012 of $10.1 million increased $1.8 million, or 21.8%, as compared to the same period in 2011. The increase between the periods was related to the staffing increases resulting from the PWMG and DTC acquisitions, annual salary increases, along with increases in health insurance costs.

•

Amortization of intangible assets for the three months ended June 30, 2012 increased $294 thousand, or 110.5%, as compared to the same period in 2011, primarily due to the amortization expense associated with the $12.4 million of amortizable intangible assets acquired in the May 27, 2011 acquisition of PWMG and, to a lesser extent, the amortization expense associated with the $4.9 million of amortizable intangible assets acquired in the May 15, 2012 acquisition of DTC.

•

Deposits of $1.43 billion, as of June 30, 2012, increased $44.2 million, or 3.2%, from $1.38 billion as of December 31, 2011. Primarily contributing to this increase was a $74.6 million, or 18.9%, increase in money market deposits, partially offset by a $29.8 million, or 45.7%, decrease in wholesale non-maturity deposits between the dates. Non-interest-bearing deposits continue to be strong, representing 23.6% of total deposits as of both June 30, 2012 and December 31, 2011.

•

Total portfolio loans and leases of $1.30 billion, as of June 30, 2012, remained relatively unchanged from $1.29 billion as of December 31, 2011. Loan growth was primarily concentrated in the commercial mortgage and consumer loan segments of the portfolio, partially offset by decreases in the commercial and industrial, construction, residential mortgage and home equity segments of the portfolio.

•

Nonperforming loans and leases, as of June 30, 2012, totaled $18.3 million, or 1.41% of portfolio loans and leases, as compared to $14.3 million, or 1.11% of portfolio loans and leases as of December 31, 2011. However, nonperforming loans and leases declined $4.3 million during the three months ended June 30, 2012, from $22.6 million as of March 31, 2012, a decrease of 18.9%. Included in the $18.3 million of nonperforming loans and leases as of June 30, 2012 is a $1.0 million commercial and industrial loan which paid off, in full, on July 2, 2012.

•

The provision for loan and lease losses (the “Provision”) for the three months ended June 30, 2012 was $1.0 million, a decrease of $916 thousand as compared to the same period in 2011. The decrease in the Provision between periods was primarily due to reduced charge-off activity, as impairments of non-performing loans declined for the three months ended June 30, 2012, as compared to the same period in 2011.

•

The allowance for loan and lease losses, as of June 30, 2012, of $13.1 million, was 1.01% of portfolio loans and leases, as compared to $12.8 million, or 0.98% of portfolio loans and leases as of December 31, 2011.

•

Available for sale investment securities as of June 30, 2012 totaled $329.9 million, as compared to $272.3 million as of December 31, 2011, as cash inflows from deposit increases as well as Federal Home Loan Bank advances were utilized to fund investment purchases. The net gain on sale of available for sale investment securities for the three months ended June 30, 2012 was $716 thousand, as compared to a net gain on sale of $577 thousand for the same period in 2011.

•

The capital ratios for the Bank and the Corporation, as shown in the table below, indicate levels well above the regulatory minimum to be considered “well capitalized”. The Corporation’s equity grew $11.7 million, or 6.3%, from December 31, 2011 to June 30, 2012. However, the Corporation’s tangible equity ratio, as of June 30, 2012, decreased 13 basis points to 8.14%, as compared to 8.27% as of December 31, 2011. This decrease was directly related to the $11.0 million of goodwill and intangible assets recorded in connection with the DTC acquisition.

•

Construction has begun on our full-service branch in Bala Cynwyd, Pennsylvania, just outside Philadelphia. The branch is projected to be completed and open for business during the fourth quarter of 2012.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, July 27, 2012. Interested parties may participate by calling 1-877-317-6789, conference number 10015161. A taped replay of the conference call will be available within one hour after the conclusion of the call and will remain available through August 13, 2012. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10015161.

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 – Finance/Investor 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 Davidson Trust Company and

the anticipated acquisition of First Bank of Delaware; 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 more 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
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sept 30, 2011			Jun 30, 2011

Interest income	$	18,204		$	18,353		$	18,690		$	18,672		$	18,851
Interest expense		2,285			2,387			2,772			3,018			3,052


Net interest income		15,919			15,966			15,918			15,654			15,799
Provision for loan and lease losses		1,003			1,000			1,056			1,828			1,919

Net interest income after provision for loan and lease losses		14,916			14,966			14,862			13,826			13,880

Fees for wealth management services		7,211			6,229			6,306			6,098			5,075
Loan servicing and other fees		436			435			454			449			460
Service charges on deposits		609			580			654			646			615
Net gain on sale of residential mortgage loans		1,304			1,170			699			764			656
Net gain on sale of available for sale investments		716			—			373			343			577
Net gain (loss) on sale of other real estate owned (“OREO”)		—			(41	)		(38	)		70			(110	)
BOLI income		105			118			114			115			118
Other operating income		972			1,111			937			791			774

Non-interest income		11,353			9,602			9,499			9,276			8,165

Salaries and wages		8,075			7,505			7,404			7,639			6,700
Employee benefits		2,023			2,160			1,889			1,674			1,591
Occupancy and bank premises		1,395			1,375			1,424			1,225			1,241
Furniture fixtures and equipment		940			891			938			865			810
Advertising		359			320			257			204			441
Net (recovery) impairment of mortgage servicing rights		87			(110	)		114			468			196
Amortization of mortgage servicing rights		256			219			225			197			158
Intangible asset amortization		560			509			522			541			266
FDIC insurance		234			219			218			238			250
Merger related / due diligence expense		914			209			(79	)		135			174
Professional fees		571			657			647			516			738
Other operating expenses		2,831			2,588			2,916			2,283			2,304

Non-interest expense		18,245			16,542			16,475			15,985			14,869

Income before income taxes		8,024			8,026			7,886			7,117			7,176
Income tax expense		2,763			2,791			2,716			2,095			2,371

Net income	$	5,261		$	5,235		$	5,170		$	5,022		$	4,805


Per share data:
Weighted average shares outstanding		13,156,231			13,065,885			12,989,352			12,948,979			12,693,782
Dilutive common shares (est)		158,570			147,502			99,464			36,306			24,491

Adjusted weighted average dilutive shares		13,314,801			13,213,387			13,088,816			12,985,285			12,718,273


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

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

Dividend declared per share	$	0.16		$	0.16		$	0.15		$	0.15		$	0.15

Effective tax rate		34.4	%		34.8	%		34.4	%		29.4	%		33.0	%

Bryn Mawr Bank Corporation

Consolidated Statements of Income - (unaudited)

(Dollars in thousands, except per share data)


	For The Six Months Ended
	Jun 30, 2012			Jun 30, 2011

Interest income	$	36,557		$	37,077
Interest expense		4,672			5,871


Net interest income		31,885			31,206
Provision for loan and lease losses		2,003			3,204

Net interest income after provision for loan and lease losses		29,882			28,002

Fees for wealth management services		13,440			9,265
Loan servicing and other fees		871			921
Service charges on deposits		1,189			1,195
Net gain on sale of residential mortgage loans		2,474			1,054
Net gain on sale of available for sale investments		716			1,067
BOLI income		223			233
Net loss on sale of other real estate owned (“OREO”)		(41	)		(129	)
Other operating income		2,083			1,769

Non-interest income		20,955			15,375

Salaries and wages		15,580			13,041
Employee benefits		4,183			3,326
Occupancy and bank premises		2,770			2,527
Furniture fixtures and equipment		1,831			1,706
Advertising		679			705
Net (recovery) impairment of mortgage servicing rights		(23	)		204
Amortization of mortgage servicing rights		475			327
Intangible asset amortization		1,069			427
FDIC insurance		453			730
Merger related / due diligence expense		1,123			481
Professional fees		1,228			1,148
Other operating expenses		5,419			4,444

Non-interest expense		34,787			29,066

Income before income taxes		16,050			14,311
Income tax expense		5,554			4,790

Net income	$	10,496		$	9,521


Per share data:
Weighted average shares outstanding		13,111,058			12,520,211
Dilutive common shares (est)		153,036			19,446

Adjusted weighted average shares		13,264,094			12,539,657


Basic earnings per common share	$	0.80		$	0.76

Diluted earnings per common share	$	0.79		$	0.76

Dividend declared per share	$	0.32		$	0.30

Effective tax rate		34.6	%		33.5	%

Bryn Mawr Bank Corporation

Consolidated Balance Sheets - (unaudited)

(Dollars in thousands)


	June 30, 2012			Mar 31, 2012			Dec 31, 2011			Sept 30, 2011			June 30, 2011
Assets

Interest bearing deposits with banks	$	68,133		$	55,548		$	57,265		$	52,205		$	34,780
Money market funds		191			211			104			106			113
Investment securities - AFS		329,876			326,601			272,317			275,729			289,762

Loans held for sale		1,668			5,784			1,588			4,857			5,923

Portfolio loans:
Consumer		15,920			13,644			11,429			12,235			12,116
Commercial & industrial		264,116			270,766			267,204			271,228			257,771
Commercial mortgages		445,254			430,896			419,130			414,656			404,000
Construction		33,815			51,274			52,844			59,303			55,804
Residential mortgages		304,249			306,911			306,478			279,696			280,093
Home equity lines & loans		202,676			202,015			207,917			209,687			210,477
Leases		30,549			28,974			30,390			31,552			33,187

Total portfolio loans and leases		1,296,579			1,304,480			1,295,392			1,278,357			1,253,448

Earning assets		1,696,447			1,692,624			1,626,666			1,611,254			1,584,026

Cash and due from banks		13,147			11,939			11,771			10,801			20,620
Allowance for loan and lease losses		(13,140	)		(13,040	)		(12,753	)		(11,654	)		(11,341	)
Premises and equipment		28,911			28,680			29,328			29,615			29,469
Accrued interest receivable		6,009			6,037			6,061			6,075			6,103
Mortgage servicing rights		4,220			4,217			4,041			4,206			4,662
Goodwill		29,752			24,689			24,689			23,169			23,169
Other intangible assets		22,855			17,505			18,014			18,536			19,077
Bank owned life insurance (“BOLI”)		19,658			19,552			19,434			19,321			19,205
FHLB stock		10,746			11,009			11,588			12,198			12,840
Net Deferred income tax asset		11,208			12,721			13,662			13,781			13,400
Other investments		5,955			5,710			5,612			4,982			5,229
Other assets		19,117			16,432			16,794			14,835			14,268


Total assets	$	1,854,885		$	1,838,075		$	1,774,907		$	1,757,119		$	1,740,727


Liabilities and shareholders’ equity

Interest-bearing checking	$	237,126		$	235,841		$	233,562		$	224,609		$	222,128
Money market		468,314			418,503			393,729			384,463			350,285
Savings		133,204			135,912			130,613			130,910			129,684
Wholesale non-maturity deposits		35,365			66,518			65,173			65,428			65,185
Wholesale time deposits		22,505			22,062			23,550			28,992			31,818
Time deposits		193,081			212,003			209,333			224,331			242,683

Interest-bearing deposits		1,089,595			1,090,839			1,055,960			1,058,733			1,041,783

Non-interest bearing deposits		336,972			334,918			326,409			292,415			295,656

Total deposits		1,426,567			1,425,757			1,382,369			1,351,148			1,337,439

Subordinated debentures		22,500			22,500			22,500			22,500			22,500
Junior subordinated debentures		—			—			—			11,992			12,004
Short-term borrowings		14,675			13,254			12,863			22,535			9,541
FHLB advances and other borrowings		169,588			164,698			147,795			140,532			152,501
Other liabilities		23,957			20,537			23,467			21,278			23,359
Shareholders’ equity		197,598			191,329			185,913			187,134			183,383


Total liabilities and shareholders’ equity	$	1,854,885		$	1,838,075		$	1,774,907		$	1,757,119		$	1,740,727

Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets - (unaudited)

(Dollars in thousands)


	2012 2Q			2012 1Q			2011 4Q			2011 3Q			2011 2Q
Assets

Interest bearing deposits with banks	$	57,542		$	38,337		$	56,570		$	57,855		$	47,159
Money market funds		192			219			109			108			217
Investment securities		319,806			302,708			277,946			281,567			292,097
Loans held for sale		3,810			3,935			3,888			6,060			4,347
Portfolio loans and leases		1,290,209			1,295,617			1,282,916			1,253,804			1,244,140

Earning assets		1,671,559			1,640,816			1,621,429			1,599,394			1,587,960

Cash and due from banks		12,259			11,539			11,516			11,905			12,224
Allowance for loan and lease losses		(13,383	)		(13,089	)		(12,110	)		(11,790	)		(11,091	)
Premises and equipment		28,866			29,095			29,586			29,706			29,335
Goodwill		26,201			24,688			23,190			23,169			19,745
Other intangible assets		21,427			17,804			18,319			18,860			11,669
Bank owned life insurance		19,589			19,480			19,359			19,246			19,128
Deferred income taxes		11,943			13,454			13,878			13,200			14,105
Other assets		39,742			41,397			39,884			40,266			42,805


Total assets	$	1,818,203		$	1,785,184		$	1,765,051		$	1,743,956		$	1,725,880


Liabilities and shareholders’ equity

Interest-bearing checking	$	236,131		$	227,817		$	224,648		$	225,569		$	229,451
Money market		436,717			406,972			394,150			367,276			355,740
Savings		133,105			132,451			132,617			131,421			132,046
Wholesale non-maturity deposits		47,463			65,117			65,127			65,177			65,129
Wholesale time deposits		22,280			22,354			27,749			29,187			34,106
Time deposits		203,344			210,973			214,684			234,645			237,771

Interest-bearing deposits		1,079,040			1,065,684			1,058,975			1,053,275			1,054,243

Non-interest bearing deposits		323,539			305,468			304,883			290,468			279,210

Total deposits		1,402,579			1,371,152			1,363,858			1,343,743			1,333,453

Subordinated debentures		22,500			22,500			22,500			22,500			22,500
Junior subordinated debentures		—			—			10,294			12,000			12,012
Short-term borrowings		13,149			13,885			15,147			10,908			9,260
FHLB advances and other borrowings		163,908			165,402			140,177			148,963			149,215
Other liabilities		23,159			25,258			24,991			21,481			24,562
Shareholders’ equity		192,908			186,987			188,084			184,361			174,878


Total liabilities and shareholders’ equity	$	1,818,203		$	1,785,184		$	1,765,051		$	1,743,956		$	1,725,880

Bryn Mawr Bank Corporation

Consolidated Average Balance Sheets - (unaudited)

(Dollars in thousands)


	2012 Year-to-date			2011 Year-to-date
Assets

Interest bearing deposits with banks	$	47,939		$	47,180
Money market funds		205			197
Investment securities		311,257			301,586
Loans held for sale		3,872			3,418
Portfolio loans and leases		1,292,914			1,223,004

Earning assets		1,656,187			1,575,385

Cash and due from banks		11,899			12,424
Allowance for loan and lease losses		(13,236	)		(10,835	)
Premises and equipment		28,981			29,228
Goodwill		25,444			18,708
Intangible assets		19,616			9,348
Bank owned life insurance		19,534			19,070
FHLB stock		11,114			13,178
Deferred tax asset		12,699			14,334
Other assets		29,456			30,546


Total assets	$	1,801,694		$	1,711,386


Liabilities and shareholders’ equity

Interest-bearing checking	$	231,975		$	228,582
Money market		421,844			347,200
Savings		132,778			131,829
Wholesale non-maturity deposits		56,290			70,478
Wholesale time deposits		22,317			32,423
Time deposits		207,158			239,626

Interest-bearing deposits		1,072,362			1,050,138

Non-interest bearing deposits		314,504			277,264

Total deposits		1,386,866			1,327,402

Subordinated debentures		22,500			22,500
FHLB advances and other borrowings		164,943			146,287
Junior subordinated debentures		—			12,019
Short-term borrowings		13,229			9,705
Other liabilities		24,209			23,914
Shareholders’ equity		189,947			169,559


Total liabilities and shareholders’ equity	$	1,801,694		$	1,711,386

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

March 31, 2012


For the period end:	2012 2Q			2012 1Q			2011 4Q			2011 3Q			2011 2Q
Asset Quality Data

Nonaccrual loans and leases	$	14,929		$	22,570		$	14,315		$	14,208		$	16,128
90 + days past due loans - still accruing		3,376			—			—			—			—

Nonperforming loans and leases		18,305			22,570			14,315			14,208			16,128
Other real estate owned		865			404			549			1,301			811

Total nonperforming assets	$	19,170		$	22,974		$	14,864		$	15,509		$	16,939


Troubled debt restructurings included in nonperforming	$	4,005		$	4,223		$	4,300		$	901		$	1,478
Troubled debt restructurings in compliance with modified terms		8,302			7,970			7,166			7,182			5,469

Total troubled debt restructurings	$	12,307		$	12,193		$	11,466		$	8,083		$	6,947

Nonperforming loans and leases / portfolio loans		1.41	%		1.73	%		1.11	%		1.11	%		1.29	%
Nonperforming assets / assets		1.03	%		1.25	%		0.84	%		0.88	%		0.97	%

Net loan (recoveries) charge-offs (annualized)/ average loans		0.26	%		0.21	%		-0.02	%		0.49	%		0.36	%
Net lease charge-offs (annualized)/ average leases		0.94	%		0.67	%		0.22	%		0.37	%		1.81	%
Net loan and lease (recoveries) charge-offs (annualized)/ average loans and leases		0.28	%		0.23	%		-0.01	%		0.49	%		0.40	%

Delinquency rate - loans and leases >30days		1.36	%		1.52	%		1.37	%		1.33	%		1.35	%

Delinquent loans and leases - 30-89 days	$	2,722		$	5,468		$	5,311		$	4,480		$	3,492

Delinquency rate - loans and leases 30-89 days		0.21	%		0.28	%		0.29	%		0.35	%		0.28	%

Changes in the allowance for loan and lease losses

Balance, beginning of period	$	13,040		$	12,753		$	11,654		$	11,341		$	10,648

Charge-offs		(960	)		(839	)		(466	)		(1,817	)		(1,325	)

Recoveries		57			126			509			302			99


Net (charge-offs) / recoveries		(903	)		(713	)		43			(1,515	)		(1,226	)

Provision for loan and lease losses		1,003			1,000			1,056			1,828			1,919


Balance, end of period	$	13,140		$	13,040		$	12,753		$	11,654		$	11,341


Allowance for loan and lease losses / loans and leases		1.01	%		1.00	%		0.98	%		0.91	%		0.90	%
Allowance for loan and lease losses / nonperforming loans and leases		71.8	%		57.8	%		89.1	%		82.0	%		70.3	%

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

March 31, 2012


For the period and period end:	2012 2Q			2012 1Q			2011 4Q			2011 3Q			2011 2Q
Selected ratios (annualized):

Return on average assets		1.16	%		1.18	%		1.16	%		1.14	%		1.12	%
Return on average shareholders’ equity		10.97	%		11.26	%		10.91	%		10.81	%		11.02	%
Return on average tangible equity (a non-GAAP measure) ⁽²⁾		14.57	%		14.57	%		14.00	%		14.00	%		13.44	%
Yield on loans and leases*		5.32	%		5.33	%		5.46	%		5.52	%		5.63	%
Yield on interest earning assets*		4.40	%		4.52	%		4.59	%		4.65	%		4.78	%
Cost of interest bearing funds		0.72	%		0.76	%		0.88	%		0.96	%		0.98	%
Net interest margin*		3.85	%		3.93	%		3.91	%		3.90	%		4.01	%
Book value per share	$	14.75		$	14.43		$	14.09		$	14.30		$	14.17
Tangible book value per share	$	10.82		$	11.25		$	10.82		$	11.11		$	10.91
Period end shares outstanding		13,398,237			13,254,694			13,194,439			13,086,770			12,941,320

Selected data:

Mortgage loans originated	$	51,427		$	55,385		$	60,467		$	38,998		$	31,072

Mortgage loans sold - servicing retained	$	41,986		$	32,778		$	20,883		$	26,090		$	14,957
Mortgage loans sold - servicing released		2,238			1,223			1,164			1,922			2,196

Total mortgage loans sold	$	44,224		$	34,001		$	22,047		$	28,012		$	17,153

Yield on loans sold		2.95	%		3.44	%		3.17	%		2.73	%		3.82	%

Mortgage loans serviced for others	$	575,533		$	571,440		$	574,422		$	593,125		$	595,196

Total Wealth assets under management / administration / supervision / brokerage ⁽¹⁾	$	6,275,940		$	5,152,965		$	4,831,631		$	4,501,433		$	4,830,417

*	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)

March 31, 2012


	2012 Year-to-date			2011 Year-to-date
Selected ratios (annualized):

Return on average assets		1.17	%		1.12	%
Return on average shareholders’ equity		11.11	%		11.32	%
Return on average tangible equity (a non-GAAP measure) ⁽²⁾		14.57	%		13.57	%
Yield on loans and leases*		5.33	%		5.63	%
Yield on interest earning assets*		4.46	%		4.77	%
Cost of interest bearing funds		0.74	%		0.95	%
Net interest margin*		3.89	%		4.02	%

Selected data:

Mortgage loans originated	$	106,812		$	69,216

Mortgage loans sold - servicing retained	$	74,764		$	28,259
Mortgage loans sold - servicing released		3,461			3,145

Total mortgage loans sold	$	78,225		$	31,404

*	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 ($’s in thousands)	As of June 30, 2012							As of December 31, 2011							As of June 30, 2011
	Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)			Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)			Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)
SECURITY DESCRIPTION

Obligations of U. S. government and agencies	$	88,859	$	89,473	$	614		$	104,252	$	104,570	$	318		$	124,933	$	125,594	$	661

State & political subdivisions		16,411		16,533		123			8,210		8,366		156			4,528		4,575		47

Mortgage backed securities		133,529		136,240		2,711			95,713		97,834		2,121			109,468		111,217		1,749

Collateralized mortgage obligations		60,805		61,139		334			32,418		32,623		205			21,418		21,537		119

Equity securities		—		—		—			—		—		—			243		295		52

Other debt securities		1,900		1,900		—			1,900		1,882		(18	)		1,400		1,400		—

Bond - mutual funds		11,456		11,411		(45	)		12,091		11,904		(187	)		11,900		11,953		53

Investment CD’s		2,380		2,398		18			2,411		2,420		9			2,441		2,439		(2	)

Corporate bonds		10,492		10,782		289			12,616		12,718		102			10,708		10,752		44


Total Investment Portfolio	$	325,832	$	329,876	$	4,044		$	269,611	$	272,317	$	2,706		$	287,039	$	289,762	$	2,723

Capital Ratios


	Regulatory Minimum To Be Well Capitalized			6/30/2012			3/31/2012			12/31/2011			9/30/2011			6/30/2011

Bryn Mawr Trust Company Consolidated

Tier I Capital to Risk Weighted Assets (RWA)		6.00	%		11.78	%		12.19	%		11.78	%		11.32	%		11.05	%
Total (Tier II) Capital to RWA		10.00	%		14.38	%		14.80	%		14.37	%		13.82	%		13.56	%
Tier I Leverage Ratio		5.00	%		9.15	%		9.58	%		9.37	%		9.15	%		8.94	%
Tangible Equity Ratio					8.42	%		8.72	%		8.67	%		8.79	%		8.54	%

Bryn Mawr Bank Corporation

Tier I Capital to Risk Weighted Assets (RWA)		6.00	%		11.38	%		11.63	%		11.26	%		11.71	%		11.55	%
Total (Tier II) Capital to RWA		10.00	%		13.98	%		14.23	%		13.83	%		14.19	%		14.05	%
Tier I Leverage Ratio		5.00	%		8.87	%		9.16	%		8.97	%		9.47	%		9.36	%
Tangible Equity Ratio					8.14	%		8.30	%		8.27	%		8.48	%		8.31	%

Bryn Mawr Bank Corporation

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


	2nd Quarter 2012								1st Quarter 2012								4th Quarter 2011								3rd Quarter 2011								2nd Quarter 2011
(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	$	57,542		$	30		0.21	%	$	38,337		$	23		0.24	%	$	56,570		$	27		0.19	%	$	57,855		$	29		0.20	%	$	47,159		$	27		0.23	%
Money market funds		192			—		—			219			—		—			109			—		—			108			—		—			217			—		—
Investment securities available for sale:
Taxable		305,757			1,064		1.40	%		293,086			1,122		1.54	%		271,410			998		1.46	%		277,634			1,159		1.66	%		287,007			1,357		1.90	%
Tax-exempt		14,049			66		1.89	%		9,622			53		2.22	%		6,536			32		1.94	%		3,933			18		1.82	%		5,090			25		1.97	%

Investment securities available for sale		319,806			1,130		1.42	%		302,708			1,175		1.56	%		277,946			1,030		1.47	%		281,567			1,177		1.66	%		292,097			1,382		1.90	%

Loans and leases *		1,294,019			17,125		5.32	%		1,299,552			17,234		5.33	%		1,286,804			17,699		5.46	%		1,259,864			17,529		5.52	%		1,248,487			17,516		5.63	%


Total interest earning assets		1,671,559			18,285		4.40	%		1,640,816			18,432		4.52	%		1,621,429			18,756		4.59	%		1,599,394			18,735		4.65	%		1,587,960			18,925		4.78	%

Cash and due from banks		12,259								11,539								11,516								11,905								12,224
Less allowance for loan and lease losses		(13,383	)							(13,089	)							(12,110	)							(11,790	)							(11,091	)
Other assets		147,768								145,918								144,216								144,447								136,787


Total assets	$	1,818,203							$	1,785,184							$	1,765,051							$	1,743,956							$	1,725,880


Liabilities:

Savings, NOW and market rate deposits	$	805,953		$	586		0.29	%	$	767,240		$	559		0.29	%	$	751,415		$	711		0.38	%	$	724,266		$	772		0.42	%	$	717,237		$	759		0.42	%
Other wholesale deposits		47,463			43		0.36	%		65,117			53		0.33	%		65,127			50		0.30	%		65,177			51		0.31	%		65,129			52		0.32	%
Wholesale deposits		22,280			24		0.43	%		22,354			24		0.43	%		27,749			73		1.04	%		29,187			86		1.17	%		34,106			87		1.02	%
Time deposits		203,344			412		0.81	%		210,973			490		0.93	%		214,684			520		0.96	%		234,645			585		0.99	%		237,771			620		1.05	%

Total interest-bearing deposits		1,079,040			1,065		0.40	%		1,065,684			1,126		0.42	%		1,058,975			1,354		0.51	%		1,053,275			1,494		0.56	%		1,054,243			1,518		0.58	%

Subordinated debentures		22,500			291		5.20	%		22,500			291		5.20	%		22,500			287		5.06	%		22,500			279		4.92	%		22,500			279		4.97	%
Junior subordinated debentures		—			—		—	%		—			—		—	%		10,294			236		9.10	%		12,000			271		8.96	%		12,012			271		9.05	%
Short-term borrowings		13,149			5		0.15	%		13,885			6		0.17	%		15,147			6		0.16	%		10,908			6		0.22	%		9,260			6		0.26	%
FHLB advances and other borrowings		163,908			924		2.27	%		165,402			964		2.34	%		140,177			889		2.52	%		148,963			968		2.58	%		149,215			978		2.63	%

Total interest-bearing liabilities		1,278,597			2,285		0.72	%		1,267,471			2,387		0.76	%		1,247,093			2,772		0.88	%		1,247,646			3,018		0.96	%		1,247,230			3,052		0.98	%

Noninterest-bearing deposits		323,539								305,468								304,883								290,468								279,210
Other liabilities		23,159								25,258								24,991								21,481								24,562

Total noninterest-bearing liabilities		346,698								330,726								329,874								311,949								303,772

Total liabilities		1,625,295								1,598,197								1,576,967								1,559,595								1,551,002

Shareholders’ equity		192,908								186,987								188,084								184,361								174,878


Total liabilities and shareholders’ equity	$	1,818,203							$	1,785,184							$	1,765,051							$	1,743,956							$	1,725,880


Interest income to earning assets							4.40	%							4.52	%							4.59	%							4.65	%							4.78	%

Net interest spread							3.68	%							3.76	%							3.71	%							3.69	%							3.80	%
Effect of noninterest-bearing sources							0.17	%							0.17	%							0.20	%							0.21	%							0.21	%


Net interest income/ margin on earning assets				$	16,000		3.85	%				$	16,045		3.93	%				$	15,984		3.91	%				$	15,717		3.90	%				$	15,873		4.01	%


Tax equivalent adjustment				$	81		0.02	%				$	79		0.02	%				$	66		0.02	%				$	64		0.02	%				$	74		0.02	%

*	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 Six Months ended June 30,


	2012								2011
(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	$	47,939			52		0.22	%	$	47,180		$	178		0.76	%
Federal funds sold		—			—		—			—			—		—	%
Money market funds		205			—			%		197			1		1.02	%
Investment securities available for sale:
Taxable		299,422			2,153		1.45	%		286,260			2,602		1.83	%
Tax-exempt		11,835			116		1.97	%		15,326			269		3.54	%


Investment securities available for sale		311,257			2,269		1.47	%		301,586			2,871		1.92	%

Loans and leases *		1,296,786			34,397		5.33	%		1,226,422			34,233		5.63	%


Total interest earning assets		1,656,187			36,718		4.46	%		1,575,385			37,283		4.77	%

Cash and due from banks		11,899								12,424
Less allowance for loan and lease losses		(13,236	)							(10,835	)
Other assets		146,844								134,412


Total assets	$	1,801,694							$	1,711,386


Liabilities:

Savings, NOW and market rate deposits	$	786,597		$	1,145		0.29	%	$	707,611		$	1,476		0.42	%
IND / IDC deposits		56,290			96		0.34	%		70,478			123		0.35	%
Wholesale deposits		22,317			48		0.43	%		32,423			162		1.01	%
Time deposits		207,158			901		0.87	%		239,626			1,180		0.99	%

Total interest-bearing deposits		1,072,362			2,190		0.41	%		1,050,138			2,941		0.56	%

Subordinated debt		22,500			582		5.20	%		22,500			556		4.98	%
Junior subordinated debentures		—			—			%		12,019			543		9.11	%
Short-term borrowings		13,229			10		0.15	%		9,705			12		0.25	%
FHLB advances and other borrowings		164,943			1,890		2.30	%		146,287			1,819		2.51	%

Total interest-bearing liabilities		1,273,034			4,672		0.74	%		1,240,649			5,871		0.95	%

Noninterest-bearing deposits		314,504								277,264
Other liabilities		24,209								23,914

Total noninterest-bearing liabilities		338,713								301,178

Total liabilities		1,611,747								1,541,827

Shareholders’ equity		189,947								169,559


Total liabilities and shareholders’ equity	$	1,801,694							$	1,711,386


Interest income to earning assets							4.46	%							4.77	%

Net interest spread							3.72	%							3.82	%
Effect of noninterest-bearing sources							0.17	%							0.20	%


Net interest income/ margin on earning assets				$	32,046		3.89	%				$	31,412		4.02	%


Tax equivalent adjustment				$	161		0.02	%				$	207		0.03	%

*	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