Bryn Mawr Bank Corporation Reports Fourth Quarter and Full Year 2008 Financial Results.

Board Declares $0.14 per Share Quarterly Dividend

BRYN MAWR, Pa. -- Bryn Mawr Bank Corporation (NASDAQ:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today announced financial results for the fourth quarter and fiscal year ended December 31, 2008. The Corporation reported fourth quarter 2008 diluted earnings per share of $0.12 and net income of $1.0 million compared to fourth quarter 2007 results of $0.36 and $3.1 million respectively. The Corporation reported twelve month 2008 diluted earnings per share of $1.08 compared to $1.58 for 2007. Net income for the year ended December 31, 2008 was $9.3 million compared to $13.6 million one year ago. Excluding a real estate gain recognized in the first quarter of 2007, diluted earnings per share were $1.48 and net income was $12.7 million.

Ted Peters, Chairman and Chief Executive Officer, stated, "Bryn Mawr Bank Corporation and Bryn Mawr Trust Company are both 'well-capitalized for regulatory capital purposes'. During 2008 Bryn Mawr has grown both its loan and lease portfolio and the number of new deposit accounts opened in the quarter, despite a weak economy and unprecedented disruption in the financial markets. However, bottom line results in the fourth quarter reflect the impact of lower financial market values on our wealth management revenues, an impairment to the value of our mortgage servicing portfolio, and an increase in the loan and lease loss provision, primarily related to our leasing portfolio."

Mr. Peters continued, "We successfully opened our West Chester Regional Office and The Bryn Mawr Trust Company of Delaware, completing a year of progress towards our long-term growth strategy. These openings expanded our footprint into two attractive geographic markets and provide us with a broader portfolio of products to serve the affluent markets we target. We are confident that our disciplined strategies to maintain a strong financial position and to build our brand have strengthened Bryn Mawr's banking and wealth management services leadership, the foundation of our growth and prosperity for over 100 years."

Significant items:

* Total quarter end portfolio loans and leases were up 12.0% to $899.6 million compared to $802.9 million at December 31, 2007, led by strong growth in commercial mortgages, commercial and industrial loans, residential mortgages and home equity loans.

* Year-end deposit levels were $869.5 million, up $20.0 million from a year ago, and fourth quarter 2008 average deposit balances of $845.1 million increased 11.5% from the fourth quarter 2007.

* Revenue from Wealth Management services for the year 2008 were $13.8 million, up $340 thousand from a year ago, and fourth quarter 2008 revenue of $3.7 million increased 6.1% from the fourth quarter of 2007, reflecting the acquisition of Lau Associates. However, fees in our core wealth business decreased due to a down-turn in the fair value of financial markets.

* The rapid decline in long-term conforming mortgage rates in the fourth quarter of 2008 resulted in a decline in the value of our mortgage servicing portfolio due to projected increases in mortgage refinancing. The outcome was a write-down in the value of our mortgage servicing assets by approximately $640 thousand to $2.2 million.

* The net interest margin was 3.63% for the fourth quarter and 3.84% for the full year of 2008, down from the comparable year earlier periods.

* The provision for loan and lease losses for the year ended December 31, 2008 was $5.6 million, including a fourth quarter provision of $2.9 million, primarily due to the performance of our leasing portfolio.

* At December 31, 2008, the allowance for loan and lease losses of $10.33 million was 1.15% of portfolio loans and leases, compared with $8.12 million or 1.01% of portfolio loans and leases at December 31, 2007.

* Regulatory capital levels at December 31, 2008 exceed the regulatory minimum for "well capitalized" at both the Bank and Corporate level by over $10 million. These ratios have declined from the prior year-end due to asset growth and the acquisition of Lau Associates.

* The opening of The Bryn Mawr Trust Company of Delaware in the fourth quarter and the recent opening of our West Chester, Pennsylvania Regional Banking Center provides further opportunities for growth in the coming years.

DIVIDEND DECLARED

On January 21, 2009, the Corporation's Board of Directors declared a quarterly dividend of $0.14 per share, payable March 1, 2009 to shareholders of record as of February 9, 2009.

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, January 30, 2009. Interested parties may participate by calling 888-694-4641 at 8:25 a.m. EDT and referencing conference PIN #79869786. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Friday, February 13, 2009. The number to call for the taped replay is 800-642-1687 and the conference PIN is 79869786.

The conference call will be simultaneously broadcast live over the Internet through a web cast 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 web cast will be available within two hours 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.

This release contains non-GAAP measures. A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). To supplement the Corporation's financial statements presented in accordance with GAAP, we report certain key financial measurements without the impact of a material real estate transaction.

The Corporation's management uses these non-GAAP measures in its analysis of the Corporation's performance. These non-GAAP measures consist of adjusting net income, non-interest income, diluted earnings per share, ROE, and ROA determined in accordance with GAAP to exclude the effects of the real estate gain in the first quarter of 2007 (i.e. year to date).

The Corporation's Management believes that the inclusion of these non-GAAP financial measures provides useful supplemental information essential to the proper understanding of the operating results of the Corporation's core business. These measures should be considered in addition to results prepared in accordance with GAAP, and are not substitutes for, or superior to, GAAP results. The non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance. These non-GAAP measures have been reconciled to the nearest GAAP measure in the accompanying schedule.

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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", "could", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" 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, 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; the impact of economic conditions on our business; changes in banking regulation 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; our ability to attract and retain key personnel; competition in our marketplace; and other factors as described in our securities filings. All forward-looking statements and information made herein are based on our current expectations 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.

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