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Bryn Mawr Bank Corporation
June 23, 2000
Dear Fellow Shareholder:
I write to you to make you aware of, and to give you the reasons for, an
earnings decrease I expect in the second quarter 2000. Diluted earnings per
share are expected to be about 37c, down 7c or about $330,000 from 44c in 1999's
second quarter. The expected decrease in net income, comparing second quarter
2000 earnings to second quarter 1999, is the result of two unusual occurrences
affecting the Corporation's earnings.
In the second quarter last year the Corporation realized $261,000 in after
tax interest income from an impaired loan which was restored to a fully accruing
status. This quarter, the Chief Executive Officer of CDC Capital Management,
Inc., an investment advisory company the Corporation acquired in early 1999, was
replaced and given a contractually required after tax severance payment of
$58,000. CDC has been but nominally profitable, so because of that and the
management change, we are eliminating the $155,000 of goodwill booked when CDC
was acquired.
The combined effect of the $261,000 accrual income in the second quarter of
1999 and the severance payment and goodwill write off in the second quarter of
2000, will cause a $474,000 difference, on a comparative basis, with the
Corporation's second quarter 1999 net income, or about $.10 per diluted share.
This more than accounts for the $.07 per diluted share, or $330,000, decrease
expected in this quarter's net income compared to the same quarter last year.
On an ongoing basis for the second quarter 2000, excluding these unusual
occurrences, the Corporation expects diluted earnings per share to be about 8%
ahead of the second quarter 1999.
I'd be happy to explain any of this further to you, and can be reached at
610-526-2300 during business hours, or at 610-296-5539 at home.
Sincerely,
/s/ Robert L. Stevens
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Robert L. Stevens
Chairman
The statements I have made in this letter including those relating to
expectations of income and earnings are forward looking and made pursuant to the
safe harbor provisions of the Securities Reform Act of 1995. These statements
involve risks and uncertainties which may cause operating results to differ
materially from those set forth in this letter. In addition to the foregoing
factors, economic, competitive, governmental regulations and other factors
identified in the Corporation's filings with the Securities and Exchange
Commission could affect the forward looking statements contained in this letter.
Exhibit B
