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

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8-K - FORM 8-K - BRYN MAWR BANK CORP	d573498d8k.htm
EX-99.2 - EX-99.2 - BRYN MAWR BANK CORP	d573498dex992.htm

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 Earnings Led By Wealth

Revenue and Improved Margin

BRYN MAWR, Pa., July 25, 2013 - Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $6.3 million and diluted earnings per share of $0.46 for the three months ended June 30, 2013, as compared to net income of $5.3 million and diluted earnings per share of $0.40 for the same period in 2012. Net income for the three months ended June 30, 2013 included pre-tax due diligence and merger-related expenses of $688 thousand as compared to $914 thousand for the same period in 2012.

Significant factors contributing to the results for the three months ended June 30, 2013, as compared to the same period in 2012, included increases in wealth management revenues and net interest income, which were partially offset by increases in salaries and benefits expense, occupancy costs and other operating expenses.

For the six months ended June 30, 2013, net income of $11.6 million was a $1.2 million increase from the $10.4 million recorded for the same period in 2012. Diluted earnings per share for the six months ended June 30, 2013 increased $0.07, to $0.86, as compared to $0.79 for the same period last year.

Ted Peters, Chairman and Chief Executive Officer, commented, “We are pleased with our continued strong quarterly results. The uptick in our net interest margin and the steady increase in wealth management revenues are encouraging signs.” Mr. Peters added, “The acquisition of Davidson Trust and the First Bank of Delaware transaction, both in 2012, have been nicely accretive to earnings.”

On July 25, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.17 per share. The dividend is payable September 1, 2013 to shareholders of record as of August 6, 2013.

SIGNIFICANT ITEMS OF NOTE

Results of Operations

The overall results for the three months ended June 30, 2013, as compared to the same period in 2012, were affected by the May 2012 acquisition of the Davidson Trust Company (“DTC”) and the November 2012 purchase of deposits, loans and a branch location from First Bank of Delaware (“FBD”).

•

Net income of $6.3 million for the three months ended June 30, 2013 increased $907 thousand, or 17.0%, from $5.3 million for the same period in 2012.

•

Net interest income for the three months ended June 30, 2013 was $17.9 million, an increase of $2.0 million, or 12.7%, from $15.9 million for the same period in 2012. The increase in net interest income between the periods was largely the result of a $134.3 million, or 10.4%, increase in average portfolio loans. This increase was partially related to loans acquired from FBD, which totaled $65.9 million as of June 30, 2013. In addition, the Corporation’s decisions to prepay $22.5 million of subordinated debt during the third and fourth quarters of 2012 and $20.0 million of Federal Home Loan Bank (“FHLB”) borrowings in the first quarter of 2013, along with the 16 basis point decline in rate paid on deposits, contributed significantly to the $991 thousand decrease in interest expense for the three months ended June 30, 2013, as compared to the same period in 2012.

•

Revenue from wealth management services for the three months ended June 30, 2013 was $9.1 million, a $1.9 million increase, or 26.1%, from the $7.2 million generated in the same period in 2012. Wealth Management Division assets under management, administration, supervision and brokerage as of June 30, 2013 were $6.9 billion, an increase of $579 million, or 9.2%, from June 30, 2012. Organic growth due to the success of the division’s strategic initiatives was supplemented by market appreciation and other new business between the dates.

•

In addition to the increase in revenue for wealth management services mentioned above, non-interest income was also impacted by a $369 thousand increase in other operating income and a $188 thousand increase in gain on sale of residential mortgage loans for the three months ended June 30, 2013 as compared to the same period in 2012. The volume of residential mortgage loans sold for the three months ended June 30, 2013 increased slightly to $46.6 million as compared $44.2 million for the same period in 2012, with a 25 basis point increase in rate of gain on sale. Partially offsetting these improvements in non-interest income was a $716 thousand decrease in gain on sale of available for sale investment securities and a $141 thousand increase in loss on sale of other real estate owned between the periods.

•

Non-interest expense for the three months ended June 30, 2013 increased $2.4 million, to $20.5 million, as compared to $18.1 million for the same period in 2012. Contributing to this increase were a $1.2 million increase in salaries and benefits, a $614 thousand increase in occupancy costs and an $889 thousand increase in other operating expenses between the periods. Salaries and benefits increased primarily as a result of the addition of the branch and lending staff from FBD, the staffing related to the DTC acquisition, new personnel for our newly-opened full-service branch in Bala Cynwyd, Pennsylvania, which opened at the end of 2012, as well as annual salary increases. In addition to these new facilities, increased compliance requirements have necessitated the hiring of several new staff positions within our headquarters. The increased occupancy costs were also

related to the additions of DTC, FBD, and our new branch in Bala Cynwyd. The increase in other operating expenses was largely related to IT infrastructure improvements. Partially offsetting these cost increases were a $226 thousand decrease in due diligence and merger-related costs and a $178 thousand decrease in the impairment of mortgage servicing rights for the three months ended June 30, 2013, as compared to the same period in 2012. Recent residential mortgage rate increases has lengthened the average life of our serviced-mortgage portfolio, resulting in a $91 thousand net recovery of prior impairments of our mortgage servicing rights, for the second quarter of 2013.

•

The tax-equivalent net interest margin of 3.98% for the three months ended June 30, 2013 was a 14 basis point increase from the 3.84% tax-equivalent net interest margin for the same period in 2012. The increase was the result of a $141.2 million increase in average interest-earning assets, partially offset by a $61.9 million increase in average interest-bearing liabilities between the periods. While the tax-equivalent yield earned on average interest-earning assets declined by 12 basis points between periods, the tax-equivalent rate paid on average interest-bearing liabilities dropped by 34 basis points. This significant reduction in rate paid on interest-bearing liabilities was largely related to the prepayment of $22.5 million of subordinated debt during the third and fourth quarters of 2012, as well as the prepayment of $20.0 million of Federal Home Loan Bank (“FHLB”) advances during the first quarter of 2013.

•

Nonperforming loans and leases of $10.5 million as of June 30, 2013 were 0.73% of total portfolio loans and leases, as compared $14.8 million, or 1.06% of total portfolio loans and leases as of December 31, 2012. This $4.3 million decrease in nonperforming loans was concentrated in the construction, small business and home equity segments of the portfolio and was partially the result of $1.8 million of charge-offs of impaired loans, as well as additions of $566 thousand to other real estate owned related to three residential properties. For the three months ended June 30, 2013, the Corporation recorded net loan and lease charge-offs of $1.0 million, as compared to $903 thousand for the same period in 2012. The provision for loan and lease losses for each of the three month periods ended June 30, 2013 and 2012 was $1.0 million.

Financial Condition – June 30, 2013 Compared to December 31, 2012

•

Deposits of $1.55 billion, as of June 30, 2013, decreased $85.0 million from December 31, 2012. The 5.2% decrease was primarily comprised of decreases of $57.4 million and $15.1 million in time deposits and wholesale deposits, respectively, between the dates. The Corporation has continued its planned run-off of its higher-rate certificates of deposit.

•

The allowance for loan and lease losses as of June 30, 2013 was $14.4 million, or 1.01% of portfolio loans and $14.4 million, or 1.03% of portfolio loans and leases as of December 31, 2012.

•

The capital ratios for the Bank and the Corporation, as shown in the table at page 15 below, indicate levels well above the regulatory minimum to be considered “well capitalized.” In particular, the tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2012 levels of 7.72% and 7.60%, to 8.29% and 8.21%, respectively, at June 30, 2013. These increases were primarily the result of increases in retained earnings and issuance of common stock, along with a slight decline in total assets between the dates.

•

Total assets as of June 30, 2013 of $2.01 billion declined slightly from $2.04 billion as of December 31, 2012.

•

Total portfolio loans and leases of $1.43 billion as of June 30, 2013 increased by $32.5 million from December 31, 2012 as increases in commercial mortgages were partially offset by declines in residential mortgages and home equity lines and loans.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, July 26, 2013. Interested parties may participate by calling 1-888-317-6016. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through August 12, 2013. The number to call for the taped replay is 1-877-344-7529 and the conference number is 10030504.

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://services.choruscall.com/links/bmtc130726.html. 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.

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; 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
	Jun 30, 2013			Mar 31, 2013			Dec 31, 2012			Sep 30, 2012			Jun 30, 2012
Interest income	$	19,217		$	18,855		$	18,682		$	18,081		$	18,188
Interest expense		1,294			1,446			1,786			2,130			2,285

Net interest income		17,923			17,409			16,896			15,951			15,903
Provision for loan and lease losses		1,000			804			1,000			1,000			1,003

Net interest income after provision for loan and lease losses		16,923			16,605			15,896			14,951			14,900

Fees for wealth management services		9,094			8,349			8,365			7,993			7,211
Loan servicing and other fees		448			451			473			432			436
Service charges on deposits		596			584			654			634			609
Net gain on sale of residential mortgage loans		1,492			1,518			2,424			1,837			1,304
Net gain on sale of invertment securities available for sale		—			2			283			416			716
Net loss on sale of other real estate owned		(141	)		(52	)		—			(45	)		—
Bank owned life insurance income		85			113			98			108			105
Other operating income		1,369			825			873			873			1,000

Non-interest income		12,943			11,790			13,170			12,248			11,381

Salaries and wages		9,086			8,810			8,848			8,703			8,075
Employee benefits		2,212			2,325			2,041			1,903			2,023
Net gain on curtailment of nonqualified pension plan		(120	)		(570	)		—			—			—
Occupancy and bank premises		1,728			1,750			1,616			1,488			1,395
Furniture fixtures and equipment		1,221			819			961			935			940
Advertising		380			412			363			267			359
Net (recovery) impairment of mortgage servicing rights		(91	)		71			81			105			87
Amortization of mortgage servicing rights		218			212			248			243			256
Amortization of intangible assets		660			661			673			669			560
FDIC insurance		275			258			255			262			234
Due diligence and merger-related expenses		688			714			1,190			316			914
Professional fees		664			575			1,031			609			571
Early extinguishment of debt - costs and premiums		—			347			338			188			—
Other operating expenses		3,603			3,851			3,444			3,201			2,714

Non-interest expense		20,524			20,235			21,089			18,889			18,128

Income before income taxes		9,342			8,160			7,977			8,310			8,153
Income tax expense		3,090			2,840			2,673			2,885			2,808

Net income	$	6,252		$	5,320		$	5,304		$	5,425		$	5,345


Per share data:
Weighted average shares outstanding		13,280,624			13,205,538			13,157,295			13,149,050			13,072,963
Dilutive common shares		227,150			230,413			205,545			146,377			158,570

Adjusted weighted average dilutive shares		13,507,774			13,435,951			13,362,840			13,295,427			13,231,533

Basic earnings per common share	$	0.47		$	0.40		$	0.40		$	0.41		$	0.41
Diluted earnings per common share	$	0.46		$	0.40		$	0.40		$	0.41		$	0.40
Dividend declared per share	$	0.17		$	0.17		$	0.16		$	0.16		$	0.16
Effective tax rate		33.1	%		34.8	%		33.5	%		34.7	%		34.4	%

Bryn Mawr Bank Corporation

Consolidated Statements of Income - (unaudited)

(Dollars in thousands, except per share data)


	For The Six Months Ended June 30,
	2013			2012
Interest income	$	38,072		$	36,560
Interest expense		2,740			4,672

Net interest income		35,332			31,888
Provision for loan and lease losses		1,804			2,003

Net interest income after provision for loan and lease losses		33,528			29,885
Fees for wealth management services		17,443			13,440
Loan servicing and other fees		899			871
Service charges on deposits		1,180			1,189
Net gain on sale of residential mortgage loans		3,010			2,474
Net gain on sale of investment securities available for sale		2			716
Bank owned life insurance income		198			223
Net loss on sale of other real estate owned		(193	)		(41	)
Other operating income		2,194			2,096

Non-interest income		24,733			20,968
Salaries and wages		17,896			15,580
Employee benefits		4,537			4,183
Net gain on curtailment of nonqualified pension plan		(690	)		—
Occupancy and bank premises		3,478			2,769
Furniture fixtures and equipment		2,040			1,831
Advertising		792			679
Net recovery of mortgage servicing rights		(20	)		(23	)
Amortization of mortgage servicing rights		430			475
Amortization of intangible assets		1,321			1,069
FDIC insurance		533			453
Due diligence and merger-related expenses		1,402			1,123
Professional fees		1,239			1,228
Early extinguishment of debt - costs and premiums		347			—
Other operating expenses		7,454			5,555

Non-interest expense		40,759			34,922
Income before income taxes		17,502			15,931
Income tax expense		5,930			5,512

Net income	$	11,572		$	10,419

Per share data:
Weighted average shares outstanding		13,243,289			13,026,354
Dilutive common shares		228,782			127,510

Adjusted weighted average shares		13,472,071			13,153,864

Basic earnings per common share	$	0.87		$	0.80
Diluted earnings per common share	$	0.86		$	0.79
Dividend declared per share	$	0.34		$	0.32
Effective tax rate		33.9	%		34.6	%

Bryn Mawr Bank Corporation

Consolidated Balance Sheets - (unaudited)

(Dollars in thousands)


	Jun 30, 2013			Mar 31, 2013			Dec 31, 2012			Sep 30, 2012			June 30, 2012
Assets
Interest-bearing deposits with banks	$	95,903		$	136,534		$	159,483		$	23,559		$	68,324
Investment securities - available for sale		322,961			327,799			316,614			316,644			331,407
Investment securities - trading		2,180			2,168			1,447			1,399			1,342
Loans held for sale		2,207			3,233			3,412			3,420			1,668
Portfolio loans:
Consumer		18,404			18,725			17,666			17,342			15,920
Commercial & industrial		296,073			293,171			291,620			274,351			264,116
Commercial mortgages		587,261			563,431			546,358			472,354			445,254
Construction		28,718			26,135			26,908			22,161			33,815
Residential mortgages		280,687			284,819			288,212			301,054			304,249
Home equity lines & loans		183,006			183,984			194,861			195,315			202,676
Leases		36,770			34,974			32,831			31,136			30,549

Total portfolio loans and leases		1,430,919			1,405,239			1,398,456			1,313,713			1,296,579
Earning assets		1,854,170			1,874,973			1,879,412			1,658,735			1,699,320
Cash and due from banks		14,208			12,013			16,203			13,526			13,147
Allowance for loan and lease losses		(14,444	)		(14,447	)		(14,424	)		(13,638	)		(13,140	)
Premises and equipment		30,947			31,072			31,170			29,238			28,911
Accrued interest receivable		6,097			6,168			5,955			5,963			6,009
Mortgage servicing rights		4,790			4,593			4,491			4,257			4,220
Goodwill		32,843			32,897			32,897			29,588			29,752
Other intangible assets		20,677			21,337			21,998			22,351			22,855
Bank owned life insurance		20,060			19,975			19,862			19,765			19,658
FHLB stock		13,028			10,663			10,761			10,717			10,746
Deferred income taxes		11,788			10,854			12,303			11,478			11,432
Other investments		4,378			4,347			4,346			4,438			4,424
Other assets		10,980			15,718			10,911			18,111			16,021

Total assets	$	2,009,522		$	2,030,163		$	2,035,885		$	1,814,529		$	1,853,355

Liabilities and shareholders’ equity
Interest-bearing deposits:
Interest-bearing checking	$	262,316		$	263,820		$	270,279		$	226,206		$	237,126
Money market		551,750			588,478			559,470			493,829			468,314
Savings		136,307			135,124			129,091			132,402			133,204
Wholesale non-maturity deposits		30,315			32,879			45,162			37,458			35,365
Wholesale time deposits		12,139			11,325			12,421			9,942			22,505
Time deposits		161,146			171,575			218,586			171,498			193,081

Total interest-bearing deposits		1,153,973			1,203,201			1,235,009			1,071,335			1,089,595
Non-interest bearing deposits		395,742			407,453			399,673			327,214			336,972

Total deposits		1,549,715			1,610,654			1,634,682			1,398,549			1,426,567
Long-term FHLB advances and other borrowings		152,642			148,636			161,315			155,416			169,589
Short-term borrowings		71,768			38,362			9,402			19,029			14,675
Subordinated debentures		—			—			—			15,000			22,500
Other liabilities		22,929			22,343			26,921			25,280			23,956
Shareholders’ equity		212,468			210,168			203,565			201,255			196,068

Total liabilities and shareholders’ equity	$	2,009,522		$	2,030,163		$	2,035,885		$	1,814,529		$	1,853,355

Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets - (unaudited)

(Dollars in thousands)


	For The Three Months Ended
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			June 30,
	2013			2013			2012			2012			2012
Assets
Interest-bearing deposits with banks	$	59,981		$	117,372		$	91,234		$	53,767		$	57,734
Investment securities - available for sale		325,729			323,247			311,372			328,051			321,420
Investment securities - trading		2,168			1,695			1,400			1,343			1,546
Loans held for sale		2,233			2,645			4,047			2,972			3,810
Portfolio loans and leases		1,425,836			1,401,038			1,341,826			1,300,811			1,290,209

Earning assets		1,815,947			1,845,997			1,749,879			1,686,944			1,674,719
Cash and due from banks		12,876			13,287			14,817			12,922			12,259
Allowance for loan and lease losses		(14,625	)		(14,693	)		(14,063	)		(13,337	)		(13,383	)
Premises and equipment		31,254			31,415			30,189			29,077			28,866
Goodwill		32,896			32,897			29,642			29,751			26,201
Other intangible assets		21,055			21,725			22,084			22,580			21,427
Bank owned life insurance		20,005			19,905			19,800			19,695			19,589
FHLB stock		10,430			10,544			10,572			10,717			10,553
Deferred income taxes		10,997			12,183			11,577			11,179			12,212
Other assets		25,296			21,294			23,800			23,275			24,098

Total assets	$	1,966,131		$	1,994,554		$	1,898,297		$	1,832,803		$	1,816,541

Liabilities and shareholders’ equity
Interest-bearing deposits:
Interest-bearing checking	$	263,842		$	266,900		$	241,730		$	229,853		$	236,131
Money market		571,327			576,422			516,174			486,798			436,717
Savings		134,485			132,142			132,725			133,315			133,105
Wholesale non-maturity deposits		31,124			38,683			38,932			35,956			47,463
Wholesale time deposits		11,610			11,495			10,689			13,809			22,280
Time deposits		164,247			190,937			190,332			178,711			203,344

Total interest-bearing deposits		1,176,635			1,216,579			1,130,582			1,078,442			1,079,040
Non-interest bearing deposits		391,387			386,881			359,008			330,179			323,539

Total deposits		1,568,022			1,603,460			1,489,590			1,408,621			1,402,579
Long-term FHLB advances and other borrowings		150,578			148,699			159,559			167,251			163,908
Short-term borrowings		13,248			11,978			13,243			13,273			13,149
Subordinated debentures		—			—			7,283			21,114			22,500
Other liabilities		23,617			26,123			27,175			25,354			23,158
Shareholders’ equity		210,666			204,294			201,447			197,190			191,247

Total liabilities and shareholders’ equity	$	1,966,131		$	1,994,554		$	1,898,297		$	1,832,803		$	1,816,541

Bryn Mawr Bank Corporation

Consolidated Average Balance Sheets - (unaudited)

(Dollars in thousands)


	For The Six Months Ended June 30,
	2013			2012
Assets
Interest bearing deposits with banks	$	88,518		$	48,144
Investment securities - available for sale		324,495			312,817
Investment securities - trading		1,933			1,492
Loans held for sale		2,438			3,872
Portfolio loans and leases		1,413,506			1,292,914

Earning assets		1,830,890			1,659,239
Cash and due from banks		13,080			11,899
Allowance for loan and lease losses		(14,659	)		(13,236	)
Premises and equipment		31,334			28,981
Goodwill		32,897			25,444
Intangible assets		21,388			19,616
Bank owned life insurance		19,955			19,534
FHLB stock		10,448			11,114
Deferred income taxes		11,586			12,925
Other assets		23,345			24,579

Total assets	$	1,980,264		$	1,800,095

Liabilities and shareholders’ equity
Interest-bearing deposits:
Interest-bearing checking	$	265,363		$	231,975
Money market		573,860			421,844
Savings		133,321			132,778
Wholesale non-maturity deposits		34,882			56,290
Wholesale time deposits		11,553			22,317
Time deposits		177,518			207,158

Total interest-bearing deposits		1,196,497			1,072,362
Non-interest bearing deposits		389,146			314,504

Total deposits		1,585,643			1,386,866
Long-term FHLB advances and other borrowings		151,120			164,943
Short-term borrowings		11,125			13,229
Subordinated debentures		—			22,500
Junior subordinated debentures		—			—
Other liabilities		24,878			24,208
Shareholders’ equity		207,498			188,349

Total liabilities and shareholders’ equity	$	1,980,264		$	1,800,095

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

June 30, 2013


	For The Three Months Ended
	June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Asset Quality Data
Nonaccrual loans and leases	$	10,488		$	12,098		$	14,040		$	13,846		$	14,929
90 days or more past due loans, still accruing		—			728			728			—			3,376

Nonperforming loans and leases		10,488			12,826			14,768			13,846			18,305
Other real estate owned		1,205			545			906			412			865

Total nonperforming assets	$	11,693		$	13,371		$	15,674		$	14,258		$	19,170

Troubled debt restructurings included in nonperforming assets	$	2,869		$	3,686		$	3,106		$	3,740		$	4,005
Troubled debt restructurings in compliance with modified terms		8,157			7,438			8,008			8,379			8,302

Total troubled debt restructurings	$	11,026		$	11,124		$	11,114		$	12,119		$	12,307
Nonperforming loans and leases / portfolio loans		0.73	%		0.91	%		1.06	%		1.05	%		1.41	%
Nonperforming assets / assets		0.58	%		0.66	%		0.77	%		0.78	%		1.03	%
Net loan charge-offs / average loans (annualized)		0.29	%		0.23	%		0.08	%		0.16	%		0.26	%
Net lease charge-offs (recoveries) / average leases (annualized)		0.11	%		-0.13	%		-0.38	%		-0.23	%		0.94	%
Net loan and lease charge-offs / average loans and leases (annualized)		0.28	%		0.22	%		0.07	%		0.16	%		0.28	%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due		0.73	%		1.23	%		1.02	%		1.01	%		1.36	%
Performing loans and leases - 30-89 days past due	$	2,328		$	4,115		$	2,053		$	1,954		$	2,722
Delinquency rate* - Performing loans and leases - 30-89 days past due		0.16	%		0.29	%		0.15	%		0.15	%		0.21	%

* to total loans and leases

Changes in the allowance for loan and lease losses:
Balance, beginning of period	$	14,447		$	14,425		$	13,638		$	13,140		$	13,040
Charge-offs		(1,164	)		(830	)		(450	)		(618	)		(960	)
Recoveries		161			48			237			116			57

Net charge-offs		(1,003	)		(782	)		(213	)		(502	)		(903	)
Provision for loan and lease losses		1,000			804			1,000			1,000			1,003

Balance, end of period	$	14,444		$	14,447		$	14,425		$	13,638		$	13,140

Allowance for loan and lease losses / loans and leases		1.01	%		1.03	%		1.03	%		1.04	%		1.01	%
Allowance for loan and lease losses / nonperforming loans and leases		137.7	%		112.6	%		97.7	%		98.5	%		71.8	%

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

June 30, 2013


	For The Three Months Ended or As Of
	June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Selected ratios (annualized):
Return on average assets		1.28	%		1.08	%		1.11	%		1.18	%		1.18	%
Return on average shareholders’ equity		11.90	%		10.56	%		10.47	%		10.93	%		11.24	%
Return on average tangible equity ⁽²⁾		16.00	%		14.42	%		14.09	%		14.89	%		14.97	%
Yield on loans and leases*		5.13	%		5.16	%		5.24	%		5.21	%		5.31	%
Yield on interest earning assets*		4.27	%		4.16	%		4.27	%		4.28	%		4.39	%
Cost of interest bearing funds		0.39	%		0.43	%		0.54	%		0.66	%		0.72	%
Net interest margin*		3.98	%		3.85	%		3.86	%		3.78	%		3.84	%
Book value per share	$	15.71		$	15.57		$	15.17		$	15.02		$	14.73
Tangible book value per share	$	11.75		$	11.55		$	11.08		$	11.14		$	10.77
Period end shares outstanding		13,528,078			13,500,413			13,414,552			13,399,635			13,316,469
Selected data:
Mortgage loans originated	$	55,066		$	65,105		$	82,458		$	64,455		$	51,427
Mortgage loans sold - servicing retained	$	46,209		$	51,414		$	71,596		$	54,992		$	41,986
Mortgage loans sold - servicing released		347			189			—			—			2,238

Total mortgage loans sold	$	46,556		$	51,603		$	71,596		$	54,992		$	44,224

Yield on loans sold		3.20	%		2.94	%		3.39	%		3.34	%		2.95	%
Mortgage loans serviced for others	$	623,498		$	603,734		$	595,317		$	583,859		$	575,533
Total wealth assets under management, administration, supervision and brokerage ⁽¹⁾	$	6,854,838		$	6,987,974		$	6,663,212		$	6,482,835		$	6,275,940

*	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⁾	Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets.


	For The Six Months Ended June 30,
	2013			2012
Selected ratios (annualized):
Return on average assets		1.18	%		1.17	%
Return on average shareholders’ equity		11.25	%		11.11	%
Return on average tangible equity ⁽¹⁾		15.23	%		14.57	%
Yield on loans and leases*		5.15	%		5.32	%
Yield on interest-earning assets*		4.22	%		4.45	%
Cost of interest-bearing liabilities		0.41	%		0.74	%
Net interest margin*		3.91	%		3.88	%
Selected data:
Mortgage loans originated	$	120,171		$	106,812
Mortgage loans sold - servicing retained	$	97,623		$	74,764
Mortgage loans sold - servicing released		536			3,461

Total mortgage loans sold	$	98,159		$	78,225

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

⁽¹⁾	Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets.

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

June 30, 2013


Investment Portfolio - Available for Sale (dollars in thousands)		As of June 30, 2013							As of December 31, 2012
SECURITY DESCRIPTION	Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)			Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)
U.S. Treasury securities	$	102	$	100	$	(2	)	$	—	$	—	$	—
Obligations of U.S. government and agencies		82,170		81,159		(1,011	)		73,183		73,872		689
State & political subdivisions		39,353		39,055		(298	)		30,243		30,384		141
Mortgage-backed securities		131,860		132,697		837			128,537		131,826		3,289
Collateralized mortgage obligations		51,780		51,937		157			62,116		62,703		587
Other debt securities		2,400		2,398		(2	)		1,900		1,900		—
Bond mutual funds		11,456		11,423		(33	)		11,456		11,527		71
Investment CDs		2,120		2,125		5			2,350		2,364		14
Other investments		1,909		2,067		158			1,962		2,038		76

Total Investment Portfolio	$	323,150	$	322,961	$	(189	)	$	311,747	$	316,614	$	4,867


Capital Ratios	Regulatory Minimum To Be Well Capitalized			June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Bryn Mawr Trust Company
Tier I Capital to Risk Weighted Assets (“RWA”)		6.00	%		11.58	%		11.52	%		11.20	%		11.99	%		11.75	%
Total (Tier II) Capital to RWA		10.00	%		12.55	%		12.51	%		12.20	%		14.09	%		14.36	%
Tier I Leverage Ratio		5.00	%		9.07	%		8.70	%		8.84	%		9.23	%		9.14	%
Tangible Equity Ratio					8.29	%		8.11	%		7.72	%		8.85	%		8.41	%

Bryn Mawr Bank Corporation
Tier I Capital to RWA		6.00	%		11.47	%		11.33	%		11.02	%		11.64	%		11.30	%
Total (Tier II) Capital to RWA		10.00	%		12.44	%		12.32	%		12.02	%		13.74	%		13.90	%
Tier I Leverage Ratio		5.00	%		9.00	%		8.58	%		8.72	%		8.98	%		8.80	%
Tangible Equity Ratio					8.21	%		7.98	%		7.60	%		8.58	%		8.07	%

Bryn Mawr Bank Corporation

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


	For The Three Months Ended
	June 30, 2013								March 31, 2013								December 31, 2012								September 30, 2012								June 30, 2012
(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	$	59,981		$	41		0.27	%	$	117,372		$	69		0.24	%	$	91,234		$	41		0.18	%	$	53,767		$	34		0.25	%	$	57,734		$	30		0.21	%
Investment securities - available for sale:
Taxable		287,287			846		1.18	%		289,097			889		1.25	%		286,889			897		1.24	%		309,570			960		1.23	%		307,371			1,067		1.40	%
Tax-exempt		38,442			146		1.52	%		34,150			125		1.48	%		24,483			102		1.66	%		18,481			82		1.77	%		14,049			66		1.89	%

Investment securities - available for sale		325,729			992		1.22	%		323,247			1,014		1.27	%		311,372			999		1.28	%		328,051			1,042		1.26	%		321,420			1,133		1.42	%
Investment securities - trading		2,168			13		2.41	%		1,695			16		3.83	%		1,400			16		4.55	%		1,343			5		1.48	%		1,546			12		3.12	%
Loans and leases *		1,428,069			18,277		5.13	%		1,403,683			17,854		5.16	%		1,345,873			17,721		5.24	%		1,303,783			17,089		5.21	%		1,294,019			17,094		5.31	%

Total interest-earning assets		1,815,947			19,323		4.27	%		1,845,997			18,953		4.16	%		1,749,879			18,777		4.27	%		1,686,944			18,170		4.28	%		1,674,719			18,269		4.39	%
Cash and due from banks		12,876								13,287								14,817								12,922								12,259
Less allowance for loan and lease losses		(14,625	)							(14,693	)							(14,063	)							(13,337	)							(13,383	)
Other assets		151,933								149,963								147,664								146,274								142,946

Total assets	$	1,966,131							$	1,994,554							$	1,898,297							$	1,832,803							$	1,816,541

Liabilities:
Savings, NOW and market rate deposits	$	969,654		$	445		0.18	%	$	975,464		$	479		0.20	%	$	890,629		$	557		0.25	%	$	849,966		$	567		0.27	%	$	805,953		$	586		0.29	%
Other wholesale deposits		31,124			25		0.32	%		38,683			35		0.37	%		38,932			38		0.39	%		35,956			34		0.38	%		47,463			43		0.36	%
Wholesale deposits		11,610			19		0.66	%		11,495			19		0.67	%		10,689			20		0.74	%		13,809			21		0.60	%		22,280			24		0.43	%
Time deposits		164,247			205		0.50	%		190,937			242		0.51	%		190,332			290		0.61	%		178,711			316		0.70	%		203,344			412		0.81	%

Total interest-bearing deposits		1,176,635			694		0.24	%		1,216,579			775		0.26	%		1,130,582			905		0.32	%		1,078,442			938		0.35	%		1,079,040			1,065		0.40	%
Subordinated debentures		—			—		—	%		—			—		—	%		7,283			79		4.32	%		21,114			271		5.11	%		22,500			291		5.20	%
Junior subordinated debentures		—			—		—	%		—			—		—	%		—			—		—	%		—			—		—	%		—			—		—	%
Short-term borrowings		13,358			4		0.12	%		11,978			4		0.14	%		13,243			3		0.09	%		13,273			4		0.12	%		13,149			5		0.15	%
Long-term FHLB advances and other borrowings		150,468			596		1.59	%		148,699			667		1.82	%		159,559			798		1.99	%		167,251			918		2.18	%		163,908			924		2.27	%

Total Borrowings		163,826			600		1.47	%		160,677			671		1.69	%		180,085			880		1.94	%		201,638			1,193		2.35	%		199,557			1,220		2.46	%
Total interest-bearing liabilities		1,340,461			1,294		0.39	%		1,377,256			1,446		0.43	%		1,310,667			1,785		0.54	%		1,280,080			2,131		0.66	%		1,278,597			2,285		0.72	%
Noninterest-bearing deposits		391,387								386,881								359,008								330,179								323,539
Other liabilities		23,617								26,123								27,175								25,100								23,158

Total noninterest-bearing liabilities		415,004								413,004								386,183								355,279								346,697
Total liabilities		1,755,465								1,790,260								1,696,850								1,635,359								1,625,294
Shareholders’ equity		210,666								204,294								201,447								197,444								191,247

Total liabilities and shareholders’ equity	$	1,966,131							$	1,994,554							$	1,898,297							$	1,832,803							$	1,816,541

Interest income to earning assets							4.27	%							4.16	%							4.27	%							4.28	%							4.39	%
Net interest spread							3.88	%							3.73	%							3.73	%							3.62	%							3.67	%
Effect of noninterest-bearing sources							0.10	%							0.12	%							0.13	%							0.16	%							0.17	%

Tax-equivalent net interest income/ margin on earning assets				$	18,029		3.98	%				$	17,507		3.85	%				$	16,992		3.86	%				$	16,039		3.78	%				$	15,984		3.84	%

Tax-equivalent adjustment				$	106		0.02	%				$	98		0.03	%				$	96		0.02	%				$	88		0.02	%				$	81		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 Interest Income and Expense and Tax-Equivalent Yields


	For The Six Months Ended June 30,
	2013								2012
(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	$	88,518			110		0.25	%	$	48,144			52		0.22	%
Investment securities available for sale:													—			%
Taxable		288,187			1,734		1.21	%		300,982			2,207		1.47	%
Tax-exempt		36,308			269		1.49	%		11,835			116		1.97	%

Investment securities - available for sale		324,495			2,003		1.24	%		312,817			2,323		1.49	%
Investment securities - trading		1,933			15		1.56	%		1,492			16		2.16	%
Loans and leases *		1,415,944			36,147		5.15	%		1,296,786			34,330		5.32	%

Total interest earning assets		1,830,890			38,275		4.22	%		1,659,239			36,721		4.45

Cash and due from banks		13,080								11,899
Less allowance for loan and lease losses		(14,659	)							(13,236	)
Other assets		150,953								142,193

Total assets	$	1,980,264							$	1,800,095

Liabilities:
Savings, NOW and market rate deposits	$	972,544		$	923		0.19	%	$	786,597		$	1,145		0.29	%
Other wholesale deposits		34,882			60		0.35	%		56,290			96		0.34	%
Wholesale deposits		11,553			38		0.66	%		22,317			48		0.43	%
Time deposits		177,518			447		0.51	%		207,158			901		0.87	%

Total interest-bearing deposits		1,196,497			1,468		0.25	%		1,072,362			2,190		0.41	%
Long-term FHLB advances and other borrowings		149,573			1,263		1.70	%		164,943			1,890		2.30	%
Short-term borrowings		12,672			8		0.13	%		13,229			10		0.15	%
Subordinated debt		—			—			%		22,500			582		5.20	%
Junior subordinated debentures		—			—		—			—			—			%

Total Borrowings		162,245			1,271		1.58	%		200,672			2,482		2.49	%
Total interest-bearing liabilities		1,358,742			2,739		0.41	%		1,273,034			4,672		0.74	%
Noninterest-bearing deposits		389,146								314,504
Other liabilities		24,878								24,208

Total noninterest-bearing liabilities		414,024								338,712
Total liabilities		1,772,766								1,611,746
Shareholders’ equity		207,498								188,349

Total liabilities and shareholders’ equity	$	1,980,264							$	1,800,095

Interest income to earning assets							4.22	%							4.45	%
Net interest spread							3.81	%							3.71	%
Effect of noninterest-bearing sources							0.10	%							0.17	%

Tax-equivalent net interest income/ margin on earning assets				$	35,536		3.91	%				$	32,049		3.88	%

Tax-equivalent adjustment				$	204		0.02	%				$	161		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.

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