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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Quarterly Report Under Section 13 or 15 (d)

of the Securities and Exchange Act of 1934.

Bryn Mawr Bank Corporation

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code     (610) 525-1700

Not Applicable

Former name, former address and fiscal year, if changed since last report.

Indicate by check whether the registrant (1) has filed all reports to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes     X                 No              

Indicate by check whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)

Yes     X                 No              

Indicate the number of shares outstanding of each of the issuer’s class of common stock, as of the latest practicable date.

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BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

FORM 10-Q

QUARTER ENDED March 31, 2003

INDEX

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars In Thousands*)

Unaudited

The accompanying notes are an integral part of the consolidated financial statements.

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BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

The accompanying notes are an integral part of the consolidated financial statements.

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BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars In Thousands)

Unaudited

The accompanying notes are an integral part of the consolidated financial statements.

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BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands) Unaudited

The accompanying notes are an integral part of the consolidated financial statements.

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BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2003 AND 2002

(Unaudited)

1. Unaudited Interim Results:

The consolidated balance sheets of Bryn Mawr Bank Corporation (the “Corporation”) as of March 31, 2003 and 2002, the related consolidated statements of cash flows for the three month periods ended March 31, 2003 and 2002, the related consolidated statements of income for the three month periods ended March 31, 2003 and 2002 and the related consolidated statements of comprehensive income for the three month periods ended March 31, 2003 and 2002 are all unaudited.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of related revenue and expense during the reporting period. Actual results could differ from those estimates. Management believes that all adjustments, accruals and elimination entries necessary for the fair presentation of the consolidated financial position and results of operations for the interim periods presented have been made. All such adjustments were of a normal recurring nature. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles. The financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in the Corporation’s 2002 Annual Report incorporated in the 2002 Form 10-K (Exhibit #13).

2. Earnings Per Common Share:

Reference is made to Note #12, Stock Option Plan (the “Plan”), in the Notes to Consolidated Financial Statements in the Corporation’s 2002 Annual Report incorporated in the 2002 Form 10-K (Exhibit #13). Shares under option under the Plan did not have a dilutive impact on net income per share for the three-month period ended March 31, 2003 and had a dilutive impact on net income per share for the three-month period ended March 31, 2002. No options were issued in 2003; therefore no 123 comparison is required.

3. Disclosure of Accounting Policy:

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, interest-bearing deposits with banks and federal funds sold.

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4. Adoption of Financial Accounting Standards:

Accounting standards, recently issued as of December 31, 2002, are discussed in Note 2 “Summary of Significant Accounting Policies” in the Corporation’s Annual Report, incorporated in the 2002 Form 10-K (Exhibit #13).

There have been no new additional accounting standards issued by the Financial Accounting Standards Board during the first three months of 2003.

As a result of the implementation of Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets” (“SFAS No. 142”), issued in September 2001, the amortization of goodwill was discontinued, beginning in 2002. This asset will be tested at least annually for impairment. An impairment analysis will be completed during 2003.

As a part of the acquisition of Joseph W. Roskos & Co. (“JWR&Co.”) in 1999, the Corporation recorded goodwill of $3,300,000. In compliance with SFAS No. 142, the amortization of the balance of goodwill as of December 31, 2001 of $2,805,000 was discontinued. During 2002, for various reasons, including the need to grow professional staff to accommodate planned future growth, as well as reduced revenues, due primarily to a decrease in estate fees because of the settlement of certain client estates, JWR&Co. reported a net loss of $74,000, compared to a net profit of $292,000 for 2001. Based on a discounted cash flow analysis, completed during the fourth quarter of 2002, reflecting lower projected revenue streams for JWR&Co. in future periods, it was determined that goodwill had an impairment of $400,000. Therefore, the balance of goodwill was written down by $400,000 during the fourth quarter of 2002 to $2,405,000. JWR&Co. reported a loss of $102,000 for the first three months of 2003, which included an after tax bad debt expense of $52,000, necessary to charge off accounts receivable identified as potentially uncollectable. Corporation management is reviewing its available strategies regarding JWR&Co., one of which is the potential sale of JWR&Co. to its current principal officer. (the “Principal Officer”). The Corporation has retained an independent firm having expertise in business valuations (the “Valuation Firm”). After the Corporation receives a valuation report from the Valuation Firm, negotiations will begin for the sale of JWR&Co to the Principal Officer. Management will continue to monitor the situation and as future events unfold, should any impairment in goodwill result, said impairment will be written-off against the then current quarter’s earnings. The amount of impairment could be material to the results of operation, however, it is not expected to be material to the financial condition or the liquidity of the Corporation.

5. Loans:

Interest income on loans performing satisfactorily is recognized on

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the accrual method of accounting by the Bryn Mawr Trust Company (the “Bank”). Nonperforming loans are loans on which scheduled principal and/or interest is past due 90 days or more or loans less than 90 days past due which are deemed to be problem loans by management. All nonperforming loans, except consumer loans, which maybe considered for charge-off when greater than 90 days past due, are placed on nonaccrual status, and any outstanding interest receivable at the time the loan is deemed nonperforming is deducted from interest income. Smaller balance, homogeneous loans, exclusively consumer loans, when included in nonperforming loans, for practical consideration, are not put on a nonaccrual status nor is the current accrued interest receivable reversed from income. The charge-off policy for all loans, including nonperforming and impaired loans, considers such factors as the type and size of the loan, the quality of the collateral, and historical creditworthiness of the borrower in management’s assessment of the collectability of such loans.

As a part of its internal loan review process, management, when considering classifying a loan as an impaired loan, considers the ability of the borrower to continue to meet the original contractual terms of a loan. A loan is not considered impaired if there is merely an insignificant delay or shortfall in the amounts of payments that is a temporary delay in the payment process of a loan. Under these circumstances, the Corporation’s subsidiary, the Bank, expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of the delay.

When a borrower is deemed to be unable to meet the original terms of a loan, a loan may be considered impaired or could be restructured. While all impaired loans are not necessarily considered nonperforming loans, if a loan is delinquent for 90 days or more, it is considered both a nonperforming and an impaired loan. All of the Bank’s impaired loans, which amounted to $80,000, $209,000 and $21,000 at March 31, 2003, December 31, 2002 and March 31, 2002, respectively, were placed on nonaccrual status when they were delinquent for greater than 90 days, and any outstanding accrued interest receivable on such loans at the time they were placed on nonaccrual status, was reversed from income.

Impaired loans are required to be measured based upon the present value of expected future cash flows, discounted at the loan’s initial effective interest rate or at the loan’s market price or fair value of the collateral, if the loan is collateral dependent. As of March 31, 2003, December 31, 2002 and March 31, 2002, no impaired loans were measured using the present value of expected future cash flows or the loan’s market price because all impaired loans were collateral dependent at these respective dates. Impaired loans measured by the value of the loan’s collateral amounted to $80,000, $209,000, and $21,000, as of March 31, 2003, December 31, 2002 and March 31, 2002, respectively.

If the loan valuation is less than the recorded value of the loan, an impairment reserve must be established for the difference. As of March 31, 2003, December 31, 2002 and March 31, 2002, there were no impaired loans

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for which it was necessary to establish an impairment reserve. Impaired loans for which no loan loss allowance was allocated amounted to $80,000, at March 31, 2003 and $209,000 at December 31, 2002 and $21,000 at March 31, 2002. Average impaired loans for the three-month period ended March 31, 2003, year ended December 31, 2002 and March 31, 2002 amounted to $79,000, $90,000 and $21,000, respectively.

When a loan is put on a nonaccrual status, any loan payment subsequently collected is credited to reduce the outstanding principal balance. Therefore, no interest income was reported on nonaccrual loans during either three-month period ended March 31, 2003 or 2002. Loans may be removed from nonaccrual status and returned to accrual status when all principal and interest amounts contractually due are reasonably assured of repayment within an acceptable period of time and there is a sustained period of repayment performance by the borrower, with a minimum repayment of at least six months, in accordance with the contractual terms of interest and principal. Subsequent income recognition would be recorded under the existing terms of the loan. Based on the above criteria, no nonaccrual loans were removed from nonaccrual status, during the first three months of 2002 or 2001.

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6.    Allowance for Loan Losses:

The summary of changes in the allowance is as follows:

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7. Segment Information:

The Corporation's principal operating segments are structured around the financial services provided its customers. The Banking segment gathers deposits and makes funds available for loans to its customers. The Bank's Investment Management and Trust segment ("Wealth") provides both corporate and individual investment management and trust products and services. The Bank's Mortgage Banking segment originates and sells residential mortgage loans to the secondary mortgage market. Bryn Mawr Bank Corporation and all other subsidiaries are aggregated under the "All Other" heading.

Segment information for the three months ended March 31, 2003 and 2002 is as follows:

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Item 2.

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The following is a discussion of the consolidated results of operations of Bryn Mawr Bank Corporation and its subsidiaries (the “Corporation”) for the three months ended March 31, 2003 and 2002, as well as the financial condition of the Corporation as of March 31, 2003, December 31, 2002 and March 31, 2002. The Bryn Mawr Trust Company (the “Bank”) and Joseph W. Roskos & Co., Inc. (“JWR&Co”) are wholly-owned subsidiaries of the Corporation, Insurance Counsellors of Bryn Mawr, Inc. (“ICBM”) and Bryn Mawr Settlement Services, Inc (“BMSS”) are wholly-owned subsidiaries of the Bank and Bryn Mawr Finance, Inc (“BMF”) is a wholly-owned subsidiary of Joseph W. Roskos & Co., Inc.

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements contained in this Report and the documents incorporated by reference herein, may constitute forward-looking statements for the purposes of the Securities Exchange act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and may involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements include statements with respect to the Corporation’s financial goals, business plans, business prospects, credit quality, credit risk, reserve adequacy, liquidity, origination and sale of residential mortgage loans, impairment of goodwill, the effect of changes in accounting standards, and market and pricing trends. The words “expect,” “anticipate,” “intended,” “plan,” “believe,” “seek,” “estimate,” and similar expressions are intended to identify such forward-looking statements. The Corporation’s actual results may differ materially from the results anticipated by the forward looking statement due to a variety of factors, including without limitations:

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