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	d429839d8k.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 Strong Third Quarter 2012 Earnings, Led By

Robust Wealth Management Revenues and Residential Mortgage Gains

BRYN MAWR, Pa., October 25, 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 September 30, 2012 of $5.4 million, an increase of $195 thousand, or 3.7%, as compared to net income of $5.2 million for the same period in 2011. Diluted earnings per share of $0.41 for the three months ended September 30, 2012 remain unchanged from the same period in 2011. Included in the net income for the quarter were due diligence and merger-related expenses of $316 thousand and $188 thousand in prepayment penalties related to the early extinguishment of $9.4 million of debt. Contributing significantly to the Corporation’s solid performance for the quarter was a $1.9 million increase in revenue for Wealth Management services along with a $1.1 million increase in gain on sale of mortgage loans for the three months ended September 30, 2012, as compared to the same period in 2011.

On October 25, 2012, the Board of Directors of the Corporation declared a quarterly dividend of $0.16 per share. The dividend is payable December 1, 2012, to shareholders of record as of November 6, 2012.

Ted Peters, Chairman and Chief Executive Officer commented, “The Corporation has posted yet another excellent quarter driven by strong non-interest revenue, which was able to offset increases in non-interest expense during the quarter. The revenue from Wealth Management services reported during the quarter demonstrated the impact of the May 15, 2012 acquisition of the Davidson Trust Company.” Mr. Peters added, “The continuing low-interest- rate environment has helped sustain the residential mortgage refinancing trend, allowing the Corporation to record

its third consecutive quarterly increase in gain on sale of residential mortgage loans. We are pleased that these sources of non-interest income have more than compensated for the continuing pressure on our net interest margin.”

The previously announced acquisition of consumer and business deposit and loan accounts, as well as a branch location in Wilmington, Delaware, from the First Bank of Delaware, which is anticipated to increase loans by approximately $90 million and deposits by approximately $60 million, is expected to close during the fourth quarter of 2012. An amendment to the original purchase agreement between the Corporation and the First Bank of Delaware was filed on Form 8-K on October 18, 2012 with the Securities and Exchange Commission.

Mr. Peters continued, “We are looking forward to completing the First Bank of Delaware transaction. The acquisition will expand our footprint in Delaware, complementing Lau Associates and the Bryn Mawr Trust Company of Delaware, and enable us to establish a commercial banking foothold in the attractive Delaware market.”

SIGNIFICANT ITEMS OF NOTE

•

Net income for the three months ended September 30, 2012 increased $195 thousand, or 3.7%, as compared to the same period in 2011. The Corporation experienced significant increases in revenue for Wealth Management services and gain on sale of residential mortgage loans, as well as a substantial decrease in the provision for loan and lease losses for the three months ended September 30, 2012, as compared to the same period in 2011. These improvements were partially offset by increases in salaries and employee benefits, occupancy, intangible asset amortization, due diligence and merger-related expense and other operating expenses.

•

Non-interest income of $12.2 million for the three months ended September 30, 2012, represented 43.4% of total revenue (net interest income plus non-interest income) and was a $3.0 million, or 32.2%, increase from the same period in 2011. Non-interest income represented 37.1% of total revenue for the three months ended September 30, 2011.

•

Comprising a significant portion of non-interest income, revenue from Wealth Management services for the three months ended September 30, 2012 was $8.0 million,

an increase of 31.1% from the $6.1 million generated during the same period in 2011, reflecting the effects of the May 15, 2012 acquisition of the Davidson Trust Company (“DTC”). Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2012 were $6.5 billion, an increase of $1.7 billion, or 34.2 %, from December 31, 2011, and a $2.0 billion, or 44.0% increase, from September 30, 2011. A significant portion of this increase was the result of the DTC acquisition, along with additional organic growth from within the Wealth Management division.

•

Non-interest expense for the three months ended September 30, 2012 totaled $18.9 million, an increase of $3.2 million from the same period in 2011. Factors contributing to this increase included a $1.3 million increase in salaries and employee benefits and a $333 thousand increase in occupancy-related costs, largely related to the acquisition of DTC. In addition, due diligence and merger-related expenses increased by $180 thousand related to the pending First Bank of Delaware transaction. Other increases in non-interest expense between the periods included a $433 thousand increase in deferred compensation expense which totaled $120 thousand for the three months ended September 30, 2012 as compared to a credit of $313 thousand for the same period in 2011. This deferred compensation expense is discussed below under the heading, “Correction of an Immaterial Accounting Error.” In addition the Corporation incurred a $188 thousand prepayment penalty resulting from the early extinguishment of $9.4 million of debt.

•

Tax-equivalent net interest income of $16.0 million for the three months ended September 30, 2012 increased $278 thousand, or 1.8%, from the $15.7 million of tax-equivalent net interest income for the same period in 2011.

•

The tax-equivalent net interest margin of 3.78% for the three months ended September 30, 2012 declined 12 basis points from 3.90% for the same period in 2011. The effect of this decline in tax-equivalent net interest margin was more than offset by an $84.5 million increase in average interest-earning assets, relative to a $32.4 million increase in average interest-bearing liabilities, between the two periods. In addition, the average balance of non-interest-bearing deposits increased by $39.7 million between the two periods.

•

The Corporation took strategic steps during the quarter to reduce certain of its higher rate interest-bearing liabilities. In particular, at the end of the third quarter, the Corporation prepaid $7.5 million of subordinated debt in addition to a $1.9 million commercial mortgage. These early extinguishments of debt generated a prepayment penalty of $188 thousand.

•

Net gain on sale of residential mortgage loans for the three months ended September 30, 2012 was $1.8 million as compared to $764 thousand for the same period in 2011. The 140.4% increase was attributable to a significant increase in residential mortgage loan originations between the periods as the low-rate environment continued to spur refinancing activity.

•

Deposits of $1.40 billion as of September 30, 2012 increased $16.2 million, or 1.2%, from $1.38 billion as of December 31, 2011. Primarily contributing to this slight increase was a $100.1 million increase in money market accounts, offset by decreases of $27.7 million in wholesale non-maturity deposits, $13.6 million in wholesale time deposits and $37.8 million in time deposits. Non-interest-bearing deposits continue to be strong, representing 23.4% of total deposits as of September 30, 2012.

•

Total portfolio loans and leases of $1.31 billion as of September 30, 2012 increased by $18.3 million from December 31, 2011. Loan growth was primarily concentrated in the commercial mortgage segment of the portfolio, partially offset by decreases in the construction and home equity segments of the portfolio.

•

Nonperforming loans and leases as of September 30, 2012 totaled $13.8 million, or 1.05% of portfolio loans and leases, as compared to $14.3 million, or 1.11% of portfolio loans and leases as of December 31, 2011. More recently, however, nonperforming loans and leases have declined significantly from $22.6 million at March 31, 2012 and $18.3 million at June 30, 2012.

•

The provision for loan and lease losses (the “Provision”) for the three months ended September 30, 2012 was $1.0 million, a decrease of $828 thousand as compared to the same period in 2011. The decrease in the Provision between periods was primarily due to a $1.0 million reduction in net charge-offs for the three months ended September 30, 2012, as compared to the same period in 2011.

•

The allowance for loan and lease losses, as of September 30, 2012, of $13.6 million, was 1.04% 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 September 30, 2012 totaled $316.6 million, as compared to $273.8 million as of December 31, 2011. The net gain on sale of available for sale investment securities for the three months ended September 30, 2012 was $416 thousand, as compared to a gain of $343 thousand for the same period in 2011.

•

The capital ratios for the Bank and the Corporation, as shown in the table at page 15, indicate levels well above the regulatory minimum to be considered “well capitalized”.

•

Construction is well underway on our full-service branch in Bala Cynwyd, Pennsylvania, just outside Philadelphia. The branch is projected to be completed and open for business before the end of the year. The Corporation is continuing to look for additional opportunities to expand in the state of Delaware in order to complement the Lau Associates and Bryn Mawr Trust of Delaware offices and the soon-to-be-acquired First Bank of Delaware branch location.

OTHER INFORMATION

Correction of an Immaterial Accounting Error

In September 2012, the Corporation identified an immaterial accounting error related to two of its deferred compensation plans. The provisions of the deferred compensation plans enabled certain executives and directors to have bonus payments and director fees deferred, and allowed the participants to direct the investment of these deferred amounts. Because one of the investment choices offered to the participants was the Corporation’s common stock, this stock was placed in a trust owned by the Corporation whose fair market value was periodically adjusted to reflect changes in the stock’s price. The portion of this trust that contained the Corporation’s common stock was incorrectly reported as an asset on the Corporation’s balance sheet. Changes in the fair market value of the asset were reflected as increases or decreases in the value of the asset, as well as increases or decreases in the value of the liability to the participants. The stock held in the trust should have been classified as treasury stock and should have been reported in the stockholders’ equity section of the Corporation’s balance sheet, at cost. The resulting corrections involved adjustments to assets and stockholders’ equity, as well as adjustments to other operating expense, as changes in the fair market value of the Corporation’s common stock held in the trust are charged to deferred compensation expense, a component of other operating expense. All periods presented in the tables accompanying this earnings release have been revised to reflect this correction. In addition, a reconciliation of net income, basic and diluted earnings per common share, total assets, retained earnings, and number of shares and cost of treasury stock, indicating their originally reported amounts and their corrected amounts, is included at page 18 below.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, October 26, 2012. Interested parties may participate by calling 1-877-317-6789, conference number 10018204. A taped replay of the conference call will be available within one hour after the conclusion of the call and will remain available through November 12, 2012. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10018204.

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 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
	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sept 30, 2011
Interest income	$	18,081		$	18,188		$	18,372		$	18,727		$	18,691
Interest expense		2,130			2,285			2,387			2,772			3,018

Net interest income		15,951			15,903			15,985			15,955			15,673
Provision for loan and lease losses		1,000			1,003			1,000			1,056			1,828

Net interest income after provision for loan and lease losses		14,951			14,900			14,985			14,899			13,845
Fees for wealth management services		7,993			7,211			6,229			6,306			6,098
Loan servicing and other fees		432			436			435			454			449
Service charges on deposits		634			609			580			654			646
Net gain on sale of residential mortgage loans		1,837			1,304			1,170			699			764
Net gain on sale of available for sale investments		416			716			—			373			343
Net (loss) gain on sale of other real estate owned (“OREO”)		(45	)		—			(41	)		(38	)		70
BOLI income		107			105			118			114			115
Other operating income		874			1,000			1,096			909			779

Non-interest income		12,248			11,381			9,587			9,471			9,264
Salaries and wages		8,703			8,075			7,505			7,404			7,639
Employee benefits		1,903			2,023			2,160			1,889			1,674
Occupancy and bank premises		1,488			1,395			1,375			1,424			1,225
Furniture fixtures and equipment		935			940			891			938			865
Advertising		267			359			320			257			204
Net impairment (recovery) of mortgage servicing rights		105			87			(110	)		114			468
Amortization of mortgage servicing rights		243			256			219			225			197
Intangible asset amortization		669			560			509			522			541
FDIC insurance		262			234			219			218			238
Merger related / due diligence expense		316			914			209			(79	)		135
Professional fees		609			571			657			647			516
Other operating expenses		3,389			2,714			2,841			3,180			1,970

Non-interest expense		18,889			18,128			16,795			16,739			15,672
Income before income taxes		8,310			8,153			7,777			7,631			7,437
Income tax expense		2,885			2,808			2,704			2,627			2,207

Net income	$	5,425		$	5,345		$	5,073		$	5,004		$	5,230

Per share data:
Weighted average shares outstanding		13,149,050			13,072,963			12,979,746			12,901,266			12,861,926
Dilutive common shares		146,377			158,570			147,502			99,964			36,306

Adjusted weighted average dilutive shares		13,295,427			13,231,533			13,127,248			13,001,230			12,898,232

Basic earnings per common share	$	0.41		$	0.41		$	0.39		$	0.39		$	0.41
Diluted earnings per common share	$	0.41		$	0.40		$	0.39		$	0.38		$	0.41
Dividend declared per share	$	0.16		$	0.16		$	0.16		$	0.15		$	0.15
Effective tax rate		34.7	%		34.4	%		34.8	%		34.4	%		29.7	%

Bryn Mawr Bank Corporation

Consolidated Statements of Income—(unaudited)

(Dollars in thousands, except per share data)


	For The Nine Months Ended
	Sep 30, 2012			Sep 30, 2011
Interest income	$	54,641		$	55,836
Interest expense		6,802			8,889

Net interest income		47,839			46,947
Provision for loan and lease losses		3,003			5,032

Net interest income after provision for loan and lease losses		44,836			41,915
Fees for wealth management services		21,433			15,363
Loan servicing and other fees		1,303			1,370
Service charges on deposits		1,823			1,841
Net gain on sale of residential mortgage loans		4,311			1,818
Net gain on sale of available for sale investments		1,132			1,410
BOLI income		330			348
Net loss on sale of other real estate owned (“OREO”)		(86	)		(59	)
Other operating income		2,970			2,497

Non-interest income		33,216			24,588
Salaries and wages		24,283			20,680
Employee benefits		6,086			5,000
Occupancy and bank premises		4,258			3,752
Furniture fixtures and equipment		2,766			2,571
Advertising		946			909
Net impairment of mortgage servicing rights		82			672
Amortization of mortgage servicing rights		718			524
Intangible asset amortization		1,738			968
FDIC insurance		715			968
Merger expense		1,410			457
Due diligence		29			159
Merger related / due diligence expense		1,439			616
Professional fees		1,837			1,664
Other operating expenses		8,944			6,666

Non-interest expense		53,812			44,990
Income before income taxes		24,240			21,513
Income tax expense		8,397			6,915

Net income	$	15,843		$	14,598

Per share data:
Weighted average shares outstanding		13,067,551			12,578,460
Dilutive common shares		133,799			22,512

Adjusted weighted average shares		13,201,350			12,600,972

Basic earnings per common share	$	1.21		$	1.16
Diluted earnings per common share	$	1.20		$	1.16
Dividend declared per share	$	0.48		$	0.45
Effective tax rate		34.6	%		32.1	%

Bryn Mawr Bank Corporation

Consolidated Balance Sheets—(unaudited)

(Dollars in thousands)


	Sep 30,			June 30,			Mar 31,			Dec 31,			Sept 30,
	2012			2012			2012			2011			2011
Assets
Interest bearing deposits with banks	$	23,455		$	68,133		$	55,548		$	57,265		$	52,205
Money market funds		104			191			211			104			106
Investment securities—available for sale		316,644			331,407			328,215			273,822			277,187
Investment securities—trading		1,399			1,342			1,556			1,436			1,318
Loans held for sale		3,420			1,668			5,784			1,588			4,857
Portfolio loans:
Consumer		17,342			15,920			13,644			11,429			12,235
Commercial & industrial		274,351			264,116			270,766			267,204			271,228
Commercial mortgages		472,354			445,254			430,896			419,130			414,656
Construction		22,161			33,815			51,274			52,844			59,303
Residential mortgages		301,054			304,249			306,911			306,478			279,696
Home equity lines & loans		195,315			202,676			202,015			207,917			209,687
Leases		31,136			30,549			28,974			30,390			31,552

Total portfolio loans and leases		1,313,713			1,296,579			1,304,480			1,295,392			1,278,357
Earning assets		1,658,735			1,699,320			1,695,794			1,629,607			1,614,030
Cash and due from banks		13,526			13,147			11,939			11,771			10,801
Allowance for loan and lease losses		(13,638	)		(13,140	)		(13,040	)		(12,753	)		(11,654	)
Premises and equipment		29,238			28,911			28,680			29,328			29,615
Accrued interest receivable		5,963			6,009			6,037			6,061			6,075
Mortgage servicing rights		4,257			4,220			4,217			4,041			4,206
Goodwill		29,588			29,752			24,689			24,689			23,169
Other intangible assets		22,351			22,855			17,504			18,014			18,536
Bank owned life insurance (“BOLI”)		19,765			19,658			19,552			19,434			19,321
FHLB stock		10,717			10,746			11,009			11,588			12,198
Net Deferred income tax asset		11,478			11,432			12,991			13,845			13,874
Other investments		4,438			4,424			4,095			4,107			3,524
Other assets		18,111			16,021			12,944			13,641			12,075

Total assets	$	1,814,529		$	1,853,355		$	1,836,411		$	1,773,373		$	1,755,770

Liabilities and shareholders’ equity
Interest-bearing checking	$	226,206		$	237,126		$	235,841		$	233,562		$	224,609
Money market		493,829			468,314			418,503			393,729			384,463
Savings		132,402			133,204			135,912			130,613			130,910
Wholesale non-maturity deposits		37,458			35,365			66,518			65,173			65,428
Wholesale time deposits		9,942			22,505			22,062			23,550			28,992
Time deposits		171,498			193,081			212,003			209,333			224,331

Interest-bearing deposits		1,071,335			1,089,595			1,090,839			1,055,960			1,058,733
Non-interest bearing deposits		327,214			336,972			334,918			326,409			292,415

Total deposits		1,398,549			1,426,567			1,425,757			1,382,369			1,351,148
Subordinated debentures		15,000			22,500			22,500			22,500			22,500
Junior subordinated debentures		—			—			—			—			11,992
Short-term borrowings		11,629			14,675			13,254			12,863			22,535
FHLB advances and other borrowings		162,816			169,589			164,697			147,795			140,532
Other liabilities		25,280			23,956			20,538			23,466			21,278
Shareholders’ equity		201,255			196,068			189,665			184,380			185,785

Total liabilities and shareholders’ equity	$	1,814,529		$	1,853,355		$	1,836,411		$	1,773,373		$	1,755,770

Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets—(unaudited)

(Dollars in thousands)


	2012			2012			2012			2011			2011
	3Q			2Q			1Q			4Q			3Q
Assets
Interest bearing deposits with banks	$	53,576		$	57,542		$	38,337		$	56,570		$	57,855
Money market funds		191			192			219			109			108
Investment securities—available for sale		328,051			321,420			304,215			279,405			283,254
Investment securities—trading		1,343			1,546			1,437			1,319			1,338
Loans held for sale		2,972			3,810			3,935			3,888			6,060
Portfolio loans and leases		1,300,811			1,290,209			1,295,617			1,282,916			1,253,804

Earning assets		1,686,944			1,674,719			1,643,760			1,624,207			1,602,419
Cash and due from banks		12,922			12,259			11,539			11,516			11,905
Allowance for loan and lease losses		(13,337	)		(13,383	)		(13,089	)		(12,110	)		(11,790	)
Premises and equipment		29,077			28,866			29,095			29,586			29,706
Goodwill		29,751			26,201			24,688			23,186			23,169
Other intangible assets		22,580			21,427			17,804			18,319			18,860
Bank owned life insurance		19,695			19,589			19,480			19,359			19,246
Deferred income taxes		11,179			12,212			13,637			13,972			13,404
Other assets		33,992			34,651			36,735			35,665			35,501

Total assets	$	1,832,803		$	1,816,541		$	1,783,649		$	1,763,700		$	1,742,420

Liabilities and shareholders’ equity
Interest-bearing checking	$	229,853		$	236,131		$	227,817		$	224,648		$	225,569
Money market		486,798			436,717			406,972			394,150			367,276
Savings		133,315			133,105			132,451			132,617			131,421
Wholesale non-maturity deposits		35,956			47,463			65,117			65,127			65,177
Wholesale time deposits		13,809			22,280			22,354			27,749			29,187
Time deposits		178,711			203,344			210,973			214,684			234,645

Interest-bearing deposits		1,078,442			1,079,040			1,065,684			1,058,975			1,053,275
Non-interest bearing deposits		330,179			323,539			305,468			304,883			290,468

Total deposits		1,408,621			1,402,579			1,371,152			1,363,858			1,343,743
Subordinated debentures		21,114			22,500			22,500			22,500			22,500
Junior subordinated debentures		—			—			—			10,294			12,000
Short-term borrowings		13,273			13,149			13,885			15,147			10,908
FHLB advances and other borrowings		167,251			163,908			165,402			140,177			148,963
Other liabilities		25,100			23,158			25,259			24,991			21,482
Shareholders’ equity		197,444			191,247			185,451			186,733			182,824

Total liabilities and shareholders’ equity	$	1,832,803		$	1,816,541		$	1,783,649		$	1,763,700		$	1,742,420

Bryn Mawr Bank Corporation

Consolidated Average Balance Sheets—(unaudited)

(Dollars in thousands)


	2012			2011
	Year-to-Date			Year-to-Date
Assets
Interest bearing deposits with banks	$	49,832		$	50,778
Money market funds		201			167
Investment securities—available for sale		317,932			296,524
Investment securities—trading		1,442			1,345
Loans held for sale		3,435			4,299
Portfolio loans and leases		1,295,700			1,233,393

Earning assets		1,668,542			1,586,506
Cash and due from banks		12,242			12,249
Allowance for loan and lease losses		(13,270	)		(11,157	)
Premises and equipment		29,013			29,389
Goodwill		26,890			20,211
Intangible assets		20,611			12,554
Bank owned life insurance		19,588			19,130
FHLB stock		10,824			12,851
Deferred tax asset		12,339			14,133
Other assets		24,298			25,013

Total assets	$	1,811,077		$	1,720,879

Liabilities and shareholders’ equity
Interest-bearing checking	$	231,262		$	227,566
Money market		443,654			353,965
Savings		132,958			131,692
Wholesale non-maturity deposits		49,462			68,691
Wholesale time deposits		19,460			31,333
Time deposits		197,607			237,948

Interest-bearing deposits		1,074,403			1,051,195
Non-interest bearing deposits		319,767			281,714

Total deposits		1,394,170			1,332,909
Subordinated debentures		22,035			22,500
FHLB advances and other borrowings		165,717			147,189
Junior subordinated debentures		—			12,012
Short-term borrowings		13,244			10,110
Other liabilities		24,508			23,095
Shareholders’ equity		191,403			173,064

Total liabilities and shareholders’ equity	$	1,811,077		$	1,720,879

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data—(unaudited)

(Dollars in thousands, except per share data )

September 30, 2012


	2012			2012			2012			2011			2011
For the period end:	3Q			2Q			1Q			4Q			3Q
Asset Quality Data
Nonaccrual loans and leases	$	13,816		$	14,929		$	22,570		$	14,315		$	14,208
90 + days past due loans—still accruing		—			3,376			—			—			—

Nonperforming loans and leases		13,816			18,305			22,570			14,315			14,208
Other real estate owned		412			865			404			549			1,301

Total nonperforming assets	$	14,228		$	19,170		$	22,974		$	14,864		$	15,509

Troubled debt restructurings included in nonperforming	$	3,740		$	4,005		$	4,223		$	4,300		$	901
Troubled debt restructurings in compliance with modified terms		8,379			8,302			7,970			7,166			7,182

Total troubled debt restructurings	$	12,119		$	12,307		$	12,193		$	11,466		$	8,083
Nonperforming loans and leases / portfolio loans		1.05	%		1.41	%		1.73	%		1.11	%		1.11	%
Nonperforming assets / assets		0.78	%		1.03	%		1.25	%		0.84	%		0.88	%
Net loan charge-offs (recoveries) (annualized) / average loans		0.16	%		0.26	%		0.21	%		-0.02	%		0.49	%
Net lease (recoveries) charge-offs (annualized) / average leases		-0.23	%		0.94	%		0.67	%		0.22	%		0.37	%
Net loan and lease charge-offs (recoveries) (annualized) / average loans and leases		0.16	%		0.28	%		0.23	%		-0.01	%		0.49	%
Delinquency rate—loans and leases >30days		1.01	%		1.36	%		1.52	%		1.37	%		1.33	%
Delinquent loans and leases—30-89 days	$	1,954		$	2,722		$	5,468		$	5,311		$	4,480
Delinquency rate—loans and leases 30-89 days		0.15	%		0.21	%		0.28	%		0.29	%		0.35	%
Changes in the allowance for loan and lease losses
Balance, beginning of period	$	13,140		$	13,040		$	12,753		$	11,654		$	11,341
Charge-offs		(618	)		(960	)		(839	)		(466	)		(1,817	)
Recoveries		116			57			126			509			302

Net (charge-offs) / recoveries		(502	)		(903	)		(713	)		43			(1,515	)
Provision for loan and lease losses		1,000			1,003			1,000			1,056			1,828

Balance, end of period	$	13,638		$	13,140		$	13,040		$	12,753		$	11,654

Allowance for loan and lease losses / loans and leases		1.04	%		1.01	%		1.00	%		0.98	%		0.91	%
Allowance for loan and lease losses / nonperforming loans and leases		98.7	%		71.8	%		57.8	%		89.1	%		82.0	%

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data—(unaudited)

(Dollars in thousands, except per share data )

September 30, 2012


	2012			2012			2012			2011			2011
For the period and period end:	3Q			2Q			1Q			4Q			3Q
Selected ratios (annualized):
Return on average assets		1.18	%		1.18	%		1.14	%		1.13	%		1.14	%
Return on average shareholders’ equity		10.93	%		11.24	%		11.00	%		10.63	%		11.35	%
Return on average tangible equity (a non-GAAP measure) ⁽²⁾		14.87	%		14.97	%		14.27	%		13.67	%		14.74	%
Yield on loans and leases*		5.21	%		5.31	%		5.33	%		5.45	%		5.52	%
Yield on interest earning assets*		4.28	%		4.39	%		4.51	%		4.59	%		4.64	%
Cost of interest bearing funds		0.66	%		0.72	%		0.76	%		0.88	%		0.96	%
Net interest margin*		3.78	%		3.84	%		3.93	%		3.91	%		3.90	%
Book value per share	$	15.02		$	14.73		$	14.40		$	14.07		$	14.29
Tangible book value per share	$	11.14		$	10.77		$	11.20		$	10.78		$	11.08
Period end shares outstanding		13,399,635			13,316,469			13,168,555			13,106,353			12,999,712
Selected data:
Mortgage loans originated	$	64,455		$	51,427		$	55,385		$	60,467		$	38,998
Mortgage loans sold—servicing retained	$	54,992		$	41,986		$	32,778		$	20,883		$	26,090
Mortgage loans sold—servicing released		—			2,238			1,223			1,164			1,922

Total mortgage loans sold	$	54,992		$	44,224		$	34,001		$	22,047		$	28,012
Yield on loans sold		3.34	%		2.95	%		3.44	%		3.17	%		2.73	%
Mortgage loans serviced for others	$	583,859		$	575,533		$	571,440		$	574,422		$	593,125
Total Wealth assets under management / administration / supervision / brokerage ⁽¹⁾	$	6,482,835		$	6,275,940		$	5,152,965		$	4,831,631		$	4,501,433

*	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 )

September 30, 2012


	2012			2011
	Year-to-date			Year-to-date
Selected ratios (annualized):
Return on average assets		1.17	%		1.13	%
Return on average shareholders’ equity		11.06	%		11.28	%
Return on average tangible equity (a non-GAAP measure) ⁽²⁾		14.71	%		13.91	%
Yield on loans and leases*		5.29	%		5.60	%
Yield on interest earning assets*		4.40	%		4.74	%
Cost of interest bearing funds		0.71	%		0.96	%
Net interest margin*		3.85	%		3.99	%
Selected data:
Mortgage loans originated	$	171,267		$	108,214
Mortgage loans sold—servicing retained	$	129,756		$	54,349
Mortgage loans sold—servicing released		3,461			5,066

Total mortgage loans sold	$	133,217		$	59,415

*	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 - AFS
($’s in thousands)	As of September 30, 2012						As of December 31, 2011							As of Sept, 2011
SECURITY DESCRIPTION	Amortized Cost		Fair Value		Net Unrealized Gain/(Loss)		Amortized Cost		Fair Value		Net Unrealized Gain/(Loss)			Amortized Cost		Fair Value		Net Unrealized Gain/(Loss)
Obligations of U. S. government and agencies	$	83,472	$	84,354	$	882	$	104,252	$	104,570	$	318			$ 114,072	$	114,509	$	437
State & political subdivisions		19,240		19,445		205		8,210		8,366		156			3,428		3,467		39
Mortgage backed securities		125,573		129,411		3,838		95,713		97,834		2,121			104,783		107,097		2,314
Collateralized mortgage obligations		65,168		65,621		453		32,418		32,623		205			21,695		21,920		225
Equity securities		—		—		—		—		—		—			243		284		41
Other debt securities		1,900		1,900		—		1,900		1,882		(18	)		1,400		1,400		—
Bond—mutual funds		11,456		11,504		48		12,091		11,904		(187	)		11,940		11,860		(80	)
Investment CD’s		2,365		2,382		17		2,411		2,420		9			2,425		2,430		5
Other investments		1,798		2,027		229		1,454		1,505		51			1,463		1,458		(5	)
Corporate bonds		—		—		—		12,616		12,718		102			12,664		12,762		98

Total Investment Portfolio	$	310,972	$	316,644	$	5,672	$	271,065	$	273,822	$	2,757			$ 274,113	$	277,187	$	3,074


Capital Ratios
	Regulatory Minimum
	To Be
	Well Capitalized			9/30/2012			6/30/2012			3/31/2012			12/31/2011			9/30/2011
Bryn Mawr Trust Company Consolidated
Tier I Capital to Risk Weighted Assets (RWA)		6.00	%		11.99	%		11.75	%		12.17	%		11.76	%		11.31	%
Total (Tier II) Capital to RWA		10.00	%		14.09	%		14.36	%		14.78	%		14.35	%		13.81	%
Tier I Leverage Ratio		5.00	%		9.23	%		9.14	%		9.56	%		9.35	%		9.14	%
Tangible Equity Ratio					8.85	%		8.41	%		8.70	%		8.66	%		8.78	%
Bryn Mawr Bank Corporation
Tier I Capital to Risk Weighted Assets (RWA)		6.00	%		11.64	%		11.30	%		11.52	%		11.16	%		11.62	%
Total (Tier II) Capital to RWA		10.00	%		13.74	%		13.90	%		14.23	%		13.74	%		14.11	%
Tier I Leverage Ratio		5.00	%		8.98	%		8.80	%		9.07	%		8.89	%		9.40	%
Tangible Equity Ratio					8.58	%		8.07	%		8.22	%		8.19	%		8.41	%

Bryn Mawr Bank Corporation

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


	3rd Quarter 2012								2nd Quarter 2012								1st Quarter 2012								4th Quarter 2011								3rd 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	$	53,576		$	34		0.25	%	$	57,542		$	30		0.21	%	$	38,337		$	23		0.24	%	$	56,570		$	27		0.19	%	$	57,855		$	29		0.20	%
Money market funds		191			—		—			192			—		—			219			—		—			109			—		—			108			—		—
Investment securities available for sale:
Taxable		309,570			960		1.23	%		307,371			1,067		1.40	%		294,593			1,136		1.55	%		272,869			1,055		1.53	%		279,321			1,171		1.66	%
Tax-exempt		18,481			82		1.77	%		14,049			66		1.89	%		9,622			53		2.22	%		6,536			31		1.88	%		3,933			18		1.82	%

Investment securities available for sale		328,051			1,042		1.26	%		321,420			1,133			%		304,215			1,189		1.57	%		279,405			1,086		1.54	%		283,254			1,189		1.67	%
Investment securities —trading		1,343			5		1.48	%		1,546			12		1.42	%		1,437			4		1.12	%		1,319			8		2.41	%		1,338			8		2.37	%
Loans and leases *		1,303,783			17,089		5.21	%		1,294,019			17,094		5.31	%		1,299,552			17,234		5.33	%		1,286,804			17,672		5.45	%		1,259,864			17,529		5.52	%

Total interest earning assets		1,686,944			18,170		4.28	%		1,674,719			18,269		4.39	%		1,643,760			18,450		4.51	%		1,624,207			18,793		4.59	%		1,602,419			18,755		4.64	%
Cash and due from banks		12,922								12,259								11,539								11,516								11,905
Less allowance for loan and lease losses		(13,337	)							(13,383	)							(13,089	)							(12,110	)							(11,790	)
Other assets		146,274								142,946								141,439								140,087								139,886

Total assets	$	1,832,803							$	1,816,541							$	1,783,649							$	1,763,700							$	1,742,420

Liabilities:
Savings, NOW and market rate deposits	$	849,966		$	567		0.27	%	$	805,953		$	586		0.29	%	$	767,240		$	559		0.29	%	$	751,415		$	711		0.38	%	$	724,266		$	772		0.42	%
Other wholesale deposits		35,956			34		0.38	%		47,463			43		0.36	%		65,117			53		0.33	%		65,127			50		0.30	%		65,177			51		0.31	%
Wholesale deposits		13,809			21		0.60	%		22,280			24		0.43	%		22,354			24		0.43	%		27,749			73		1.04	%		29,187			86		1.17	%
Time deposits		178,711			316		0.70	%		203,344			412		0.81	%		210,973			490		0.93	%		214,684			520		0.96	%		234,645			585		0.99	%

Total interest-bearing deposits		1,078,442			938		0.35	%		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	%
Subordinated debentures		21,114			271		5.11	%		22,500			291		5.20	%		22,500			291		5.20	%		22,500			287		5.06	%		22,500			279		4.92	%
Junior subordinated debentures		—			—		—	%		—			—		—	%		—			—		—	%		10,294			236		9.10	%		12,000			271		8.96	%
Short-term borrowings		13,273			4		0.12	%		13,149			5		0.15	%		13,885			6		0.17	%		15,147			6		0.16	%		10,908			6		0.22	%
FHLB advances and other borrowings		167,251			918		2.18	%		163,908			924		2.27	%		165,402			964		2.34	%		140,177			889		2.52	%		148,963			968		2.58	%

Total Borrowings		201,638			1,193		2.35	%		199,557			1,220		2.46	%		201,787			1,261		2.51	%		188,118			1,418		2.99	%		194,371			1,524		3.11	%
Total interest-bearing liabilities		1,280,080			2,131		0.66	%		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	%
Noninterest-bearing deposits		330,179								323,539								305,468								304,883								290,468
Other liabilities		25,100								23,158								25,259								24,991								21,482

Total noninterest-bearing liabilities		355,279								346,697								330,727								329,874								311,950
Total liabilities		1,635,359								1,625,294								1,598,198								1,576,967								1,559,596
Shareholders’ equity		197,444								191,247								185,451								186,733								182,824

Total liabilities and shareholders’ equity	$	1,832,803							$	1,816,541							$	1,783,649							$	1,763,700							$	1,742,420

Interest income to earning assets							4.28	%							4.39	%							4.51	%							4.59	%							4.64	%
Net interest spread							3.62	%							3.67	%							3.75	%							3.71	%							3.68	%
Effect of noninterest-bearing sources							0.16	%							0.17	%							0.18	%							0.20	%							0.22	%

Net interest income/ margin on earning assets				$	16,039		3.78	%				$	15,984		3.84	%				$	16,063		3.93	%				$	16,021		3.91	%				$	15,737		3.90	%

Tax equivalent adjustment				$	88		0.02	%				$	81		0.02	%				$	79		0.02	%				$	66		0.02	%				$	64		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 Nine Months ended September 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	$	49,832			86		0.23	%	$	50,778		$	88		0.23	%
Federal funds sold		—			—		—			—			—		—	%
Money market funds		201			—			%		167			1		0.80	%
Investment securities available for sale:
Taxable		303,865			3,166		1.39	%		283,354			3,824		1.80	%
Tax-exempt		14,067			224		2.13	%		11,486			287		3.34	%

Investment securities—available for sale		317,932			3,390		1.42	%		294,840			4,111		1.86	%
Investment securities—trading		1,442			21		1.95	%		1,345			24		2.39	%
Loans and leases *		1,299,135			51,473		5.29	%		1,237,692			51,882		5.60	%

Total interest earning assets		1,668,542			54,949		4.40	%		1,583,477			56,106		4.74	%
Cash and due from banks		12,242								12,249
Less allowance for loan and lease losses		(13,270	)							(11,157	)
Other assets		143,563								137,793

Total assets	$	1,811,077							$	1,722,362

Liabilities:
Savings, NOW and market rate deposits	$	807,874		$	1,712		0.28	%	$	713,223		$	2,247		0.42	%
Other wholesale deposits		49,463			131		0.35	%		68,691			174		0.34	%
Wholesale deposits		19,459			68		0.47	%		31,333			248		1.06	%
Time deposits		197,607			1,217		0.82	%		237,948			1,765		0.99	%

Total interest-bearing deposits		1,074,403			3,128		0.39	%		1,051,195			4,434		0.56	%
Subordinated debt		22,035			852		5.16	%		22,500			835		4.96	%
Junior subordinated debentures		—			—		—			12,012			814		9.06	%
Short-term borrowings		13,244			14		0.14	%		10,110			19		0.25	%
FHLB advances and other borrowings		165,717			2,808		2.26	%		147,189			2,787		2.53	%

Total Borrowings		200,996			3,674		2.44	%		191,811			4,455		3.11	%
Total interest-bearing liabilities		1,275,399			6,802		0.71	%		1,243,006			8,889		0.96	%
Noninterest-bearing deposits		319,767								281,714
Other liabilities		24,508								23,095

Total noninterest-bearing liabilities		344,275								304,809
Total liabilities		1,619,674								1,547,815
Shareholders’ equity		191,403								174,547

Total liabilities and shareholders’ equity	$	1,811,077							$	1,722,362

Interest income to earning assets							4.40	%							4.74	%
Net interest spread							3.69	%							3.78	%
Effect of noninterest-bearing sources							0.16	%							0.21	%

Net interest income/ margin on earning assets				$	48,147		3.85	%				$	47,217		3.99	%

Tax equivalent adjustment				$	307		0.02	%				$	270		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.

Effect of Immaterial Correction of Accounting Error


Income Statement Effect	For The Three Months Ended June 30, 2012							For The Three Months Ended March 31, 2012							For The Three Months Ended December 31, 2011							For The Three Months Ended September 30, 2011
(dollars in thousands except share data)	Originally Reported		Corrected		Difference			Originally Reported		Corrected		Difference			Originally Reported		Corrected		Difference			Originally Reported		Corrected		Difference
Net Income	$	5,261	$	5,345	$	84		$	5,235	$	5,074	$	(161	)	$	5,170	$	5,004	$	(166	)	$	5,022	$	5,230	$	208
Basic earnings per common share	$	0.40	$	0.41	$	0.01		$	0.40	$	0.39	$	(0.01	)	$	0.40	$	0.39	$	(0.01	)	$	0.39	$	0.41	$	0.02
Diluted earnings per common share	$	0.40	$	0.40	$	—		$	0.40	$	0.39	$	(0.01	)	$	0.39	$	0.39	$	—		$	0.39	$	0.41	$	0.02

	For The Nine Months Ended September 30, 2011
	Originally Reported		Corrected		Difference
Net Income	$	14,543	$	14,598	$	55
Basic earnings per common share	$	1.15	$	1.16	$	0.01
Diluted earnings per common share	$	1.15	$	1.16	$	0.01

Balance Sheet Effect	As of June 30, 2012							As of March 31, 2012							As of December 31, 2011							As of September 30, 2011
(dollars in thousands except share data)	Originally Reported		Corrected		Difference			Originally Reported		Corrected		Difference			Originally Reported		Corrected		Difference			Originally Reported		Corrected		Difference
Total assets	$	1,854,885	$	1,853,355	$	(1,530	)	$	1,838,075	$	1,836,411	$	(1,664	)	$	1,774,907	$	1,773,373	$	(1,534	)	$	1,757,119	$	1,755,770	$	(1,349	)
Retained earnings	$	132,837	$	132,420	$	(417	)	$	129,702	$	129,201	$	(501	)	$	126,582	$	126,242	$	(340	)	$	123,377	$	123,203	$	(174	)
Cost of treasury stock	$	29,789	$	30,901	$	1,112		$	29,833	$	30,995	$	1,162		$	29,833	$	31,027	$	1,194		$	29,833	$	31,008	$	1,175
Shares of treasury stock		2,905,293		2,988,561		83,268			2,909,542		2,995,681		86,139			2,909,542		2,997,628		88,086			2,909,542		2,996,600		87,058

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BRYN MAWR BANK CORP Reports