[April 26, 2018] |
|
The Bancorp, Inc. Reports First Quarter 2018 Financial Results
The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding
company, today reported financial results for the first quarter of 2018.
Highlights
-
Net income from continuing operations rose 122% to $14.0 million for
the quarter ended March 31, 2018 compared to the quarter ended March
31, 2017 and net income overall rose 78% to $14.1 million between
those periods.
-
Return on Average Equity annualized for the quarter was 17.54% and
Return on Average Assets was 1.30%.
-
Net interest income increased 21% to $30.1 million for the quarter
ended March 31, 2018, compared to $24.9 million for the quarter ended
March 31, 2017.
-
Interest income on security backed lines of credit ("SBLOC") loans
increased 48% to $6.5 million for the quarter ended March 31, 2018,
compared to $4.4 million for the quarter ended March 31, 2017.
-
Net interest margin increased to 3.12% for the quarter ended March 31,
2018, compared to 2.70% for the quarter ended March 31, 2017.
-
Prepaid fees for the quarter ended March 31, 2018 increased to $14.3
million, or 5%, compared to the quarter ended March 31, 2017. Card
payment and ACH processing fees increased 11% to $1.7 million during
the same period.
-
Loans increased 16% to $1.46 billion at March 31, 2018, compared to
$1.26 billion at March 31, 2017.
-
SBLOC loans increased 15% to $759.4 million at March 31, 2018,
compared to $660.4 million at March 31, 2017.
-
Small Business Administration ("SBA") loans increased 15% to $424.5
million at March 31, 2018, compared to $369.8 million at March 31,
2017.
-
Direct lease financing increased 6% to $385.5 million at March 31,
2018, compared to $362.7 million at March 31, 2017.
-
The rate on $4.06 billion of average deposits and interest bearing
liabilities in the first quarter of 2018 was 0.52% with a rate of
0.66% for $2.22 billion of average prepaid card deposits.
-
Consolidated leverage ratio was 7.69% at March 31, 2018. The Bancorp
and its subsidiary, The Bancorp Bank, remain well capitalized.
-
Book value per common share at March 31, 2018 was $5.87 per share.
Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "The
first quarter was a great start to a new year. Bancorp earned $0.25
cents a share on net revenue of $59.0 million and expenses of $39.0
million. The commitment of our team to execute on our business plan is
having an impact on our operating performance and we continue to show
momentum in our results. Along with revenue and client progress in each
of our business lines, we have continued to strengthen our overall
platform with the goal of greater efficiency and productivity enhanced
by a higher level of risk management across our enterprise."
The Bancorp reported net income of $14.1 million, or $0.25 earnings per
diluted share, for the quarter ended March 31, 2018, compared to net
income of $8.0 million, or $0.14 income per diluted share, for the
quarter ended March 31, 2017. Income from continuing operations does not
include any income which may result from the reinvestment of the
proceeds from sales or repayment of the remaining assets in The
Bancorp's discontinued operations. Tier one capital to assets, tier one
capital to risk-weighted assets, total capital to risk-weighted assets
and common equity-tier 1 ratios were 7.69%, 18.43%, 18.82% and 18.43%,
respectively, compared to well capitalized minimums of 5%, 8%, 10% and
6.5%, respectively.
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings
Conference Call at 8:00 AM ET Friday, April 27, 2018 by clicking on the
webcast link on Bancorp's homepage at www.thebancorp.com.
Or, you may dial 844.775.2543, access code 4846178. You may listen to
the replay of the webcast following the live call on The Bancorp's
investor relations website or telephonically until Friday, May 4, 2018
by dialing 855.859.2056, access code 4846178.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK) is dedicated to serving the unique
needs of non-bank financial service companies, ranging from
entrepreneurial start-ups to those on the Fortune 500. The company's
only subsidiary, The Bancorp Bank (Member FDIC, Equal Housing Lender),
has been repeatedly recognized in the payments industry as the Top
Issuer of Prepaid Cards (US), a top merchant sponsor bank and a top ACH
originator. Specialized lending distinctions include National Preferred
SBA Lender, a leading provider of securities-backed lines of credit, and
one of the few bank-owned commercial vehicle leasing groups in the
nation. For more information please visit www.thebancorp.com.
Forward-Looking Statements
Statements in this earnings release regarding Bancorp's business which
are not historical facts are "forward-looking statements" that involve
risks and uncertainties. These statements may be identified by the use
of forward-looking terminology, including but not limited to the words
"may," "believe," "will," "expect," "look," "anticipate," "estimate,"
"continue," or similar words. For further discussion of the risks and
uncertainties to which these forward-looking statements may be subject,
see Bancorp's filings with the SEC, including the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" sections of those filings. These risks and uncertainties
could cause actual results to differ materially from those projected in
the forward-looking statements. The forward-looking statements speak
only as of the date of this press release. The Bancorp does not
undertake to publicly revise or update forward-looking statements in
this press release to reflect events or circumstances that arise after
the date of this presentation, except as may be required under
applicable law.
|
The Bancorp, Inc.
|
Financial highlights
|
(unaudited)
|
|
|
Three months ended
|
|
Year ended
|
|
|
March 31,
|
|
December 31,
|
Condensed income statement
|
|
2018
|
|
2017
|
|
2017
|
|
|
(dollars in thousands except per share data)
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
30,074
|
|
|
$
|
24,877
|
|
|
$
|
106,680
|
|
Provision for loan and lease losses
|
|
|
700
|
|
|
|
1,000
|
|
|
|
2,920
|
|
Non-interest income
|
|
|
|
|
|
|
Service fees on deposit accounts
|
|
|
1,576
|
|
|
|
1,675
|
|
|
|
6,788
|
|
Card payment and ACH processing fees
|
|
|
1,692
|
|
|
|
1,528
|
|
|
|
6,318
|
|
Prepaid card fees
|
|
|
14,282
|
|
|
|
13,547
|
|
|
|
53,367
|
|
Gain on sale of loans
|
|
|
11,729
|
|
|
|
5,383
|
|
|
|
17,919
|
|
Gain on sale of investment securities
|
|
|
26
|
|
|
|
503
|
|
|
|
2,231
|
|
Change in value of investment in unconsolidated entity
|
|
|
(1,171
|
)
|
|
|
(19
|
)
|
|
|
(20
|
)
|
Leasing income
|
|
|
487
|
|
|
|
551
|
|
|
|
2,663
|
|
Affinity fees
|
|
|
102
|
|
|
|
1,021
|
|
|
|
1,545
|
|
Gain on sale of health savings accounts
|
|
|
-
|
|
|
|
-
|
|
|
|
2,538
|
|
Loss from sale of European prepaid card operations
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,437
|
)
|
Other non-interest income
|
|
|
372
|
|
|
|
30
|
|
|
|
1,636
|
|
Total non-interest income
|
|
|
29,095
|
|
|
|
24,219
|
|
|
|
91,548
|
|
Non-interest expense
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
21,073
|
|
|
|
18,006
|
|
|
|
75,832
|
|
Data processing expense
|
|
|
2,005
|
|
|
|
3,480
|
|
|
|
10,159
|
|
One time fee to exit data processing contract
|
|
|
-
|
|
|
|
-
|
|
|
|
1,136
|
|
Legal expense
|
|
|
2,431
|
|
|
|
1,738
|
|
|
|
8,072
|
|
FDIC Insurance
|
|
|
2,219
|
|
|
|
2,065
|
|
|
|
10,097
|
|
Software
|
|
|
3,291
|
|
|
|
3,228
|
|
|
|
12,597
|
|
Losses and write downs on other real estate owned
|
|
|
45
|
|
|
|
-
|
|
|
|
-
|
|
Civil money penalty
|
|
|
(290
|
)
|
|
|
-
|
|
|
|
2,290
|
|
Other non-interest expense
|
|
|
8,275
|
|
|
|
9,266
|
|
|
|
34,731
|
|
Total non-interest expense
|
|
|
39,049
|
|
|
|
37,783
|
|
|
|
154,914
|
|
Income from continuing operations before income tax expense
|
|
|
19,420
|
|
|
|
10,313
|
|
|
|
40,394
|
|
Income tax expense
|
|
|
5,399
|
|
|
|
4,011
|
|
|
|
23,056
|
|
Net income from continuing operations
|
|
|
14,021
|
|
|
|
6,302
|
|
|
|
17,338
|
|
Discontinued operations
|
|
|
|
|
|
|
Income from discontinued operations before income taxes
|
|
|
156
|
|
|
|
2,667
|
|
|
|
4,059
|
|
Income tax expense (benefit)
|
|
|
37
|
|
|
|
1,006
|
|
|
|
(276
|
)
|
Net income from discontinued operations, net of tax
|
|
|
119
|
|
|
|
1,661
|
|
|
|
4,335
|
|
Net income available to common shareholders
|
|
$
|
14,140
|
|
|
$
|
7,963
|
|
|
$
|
21,673
|
|
|
|
|
|
|
|
|
Net income per share from continuing operations - basic
|
|
$
|
0.25
|
|
|
$
|
0.11
|
|
|
$
|
0.31
|
|
Net income per share from discontinued operations - basic
|
|
$
|
-
|
|
|
$
|
0.03
|
|
|
$
|
0.08
|
|
Net income per share - basic
|
|
$
|
0.25
|
|
|
$
|
0.14
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
Net income per share from continuing operations - diluted
|
|
$
|
0.25
|
|
|
$
|
0.11
|
|
|
$
|
0.31
|
|
Net income per share from discontinued operations - diluted
|
|
$
|
-
|
|
|
$
|
0.03
|
|
|
$
|
0.08
|
|
Net income per share - diluted
|
|
$
|
0.25
|
|
|
$
|
0.14
|
|
|
$
|
0.39
|
|
Weighted average shares - basic
|
|
|
56,141,830
|
|
|
|
55,534,279
|
|
|
|
55,686,507
|
|
Weighted average shares - diluted
|
|
|
57,023,121
|
|
|
|
55,752,496
|
|
|
|
56,176,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
|
(dollars in thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
1,999
|
|
|
$
|
3,152
|
|
|
$
|
5,813
|
|
|
$
|
4,671
|
|
Interest earning deposits at Federal Reserve Bank
|
|
|
508,847
|
|
|
|
841,471
|
|
|
|
328,023
|
|
|
|
669,042
|
|
Securities sold under agreements to resell
|
|
|
64,312
|
|
|
|
64,312
|
|
|
|
65,095
|
|
|
|
65,248
|
|
Total cash and cash equivalents
|
|
|
575,158
|
|
|
|
908,935
|
|
|
|
398,931
|
|
|
|
738,961
|
|
|
|
|
|
|
|
|
|
|
Investment securities, available-for-sale, at fair value
|
|
|
1,381,020
|
|
|
|
1,294,484
|
|
|
|
1,196,956
|
|
|
|
1,215,892
|
|
Investment securities, held-to-maturity
|
|
|
86,370
|
|
|
|
86,380
|
|
|
|
86,402
|
|
|
|
93,443
|
|
Loans held for sale, at fair value
|
|
|
349,806
|
|
|
|
503,316
|
|
|
|
380,272
|
|
|
|
480,913
|
|
Loans, net of deferred fees and costs
|
|
|
1,463,064
|
|
|
|
1,392,228
|
|
|
|
1,374,060
|
|
|
|
1,264,127
|
|
Allowance for loan and lease losses
|
|
|
(7,285
|
)
|
|
|
(7,096
|
)
|
|
|
(7,283
|
)
|
|
|
(7,294
|
)
|
Loans, net
|
|
|
1,455,779
|
|
|
|
1,385,132
|
|
|
|
1,366,777
|
|
|
|
1,256,833
|
|
Federal Home Loan Bank & Atlantic Community Bancshares stock
|
|
|
991
|
|
|
|
991
|
|
|
|
991
|
|
|
|
2,589
|
|
Premises and equipment, net
|
|
|
19,052
|
|
|
|
20,051
|
|
|
|
21,087
|
|
|
|
22,993
|
|
Accrued interest receivable
|
|
|
11,778
|
|
|
|
10,900
|
|
|
|
10,131
|
|
|
|
10,296
|
|
Intangible assets, net
|
|
|
4,995
|
|
|
|
5,377
|
|
|
|
5,185
|
|
|
|
5,844
|
|
Other real estate owned
|
|
|
405
|
|
|
|
450
|
|
|
|
-
|
|
|
|
104
|
|
Deferred tax asset, net
|
|
|
38,139
|
|
|
|
34,802
|
|
|
|
53,017
|
|
|
|
54,155
|
|
Investment in unconsolidated entity
|
|
|
70,016
|
|
|
|
74,473
|
|
|
|
107,711
|
|
|
|
125,982
|
|
Assets held for sale from discontinued operations
|
|
|
289,038
|
|
|
|
304,313
|
|
|
|
314,994
|
|
|
|
341,286
|
|
Other assets
|
|
|
86,553
|
|
|
|
78,543
|
|
|
|
51,164
|
|
|
|
55,351
|
|
Total assets
|
|
$
|
4,369,100
|
|
|
$
|
4,708,147
|
|
|
$
|
3,993,618
|
|
|
$
|
4,404,642
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
Demand and interest checking
|
|
$
|
3,461,881
|
|
|
$
|
3,806,965
|
|
|
$
|
3,113,212
|
|
|
$
|
3,607,076
|
|
Savings and money market
|
|
|
493,288
|
|
|
|
453,877
|
|
|
|
452,183
|
|
|
|
428,723
|
|
Total deposits
|
|
|
3,955,169
|
|
|
|
4,260,842
|
|
|
|
3,565,395
|
|
|
|
4,035,799
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase
|
|
|
182
|
|
|
|
217
|
|
|
|
180
|
|
|
|
273
|
|
Subordinated debenture
|
|
|
13,401
|
|
|
|
13,401
|
|
|
|
13,401
|
|
|
|
13,401
|
|
Long-term borrowings
|
|
|
42,157
|
|
|
|
42,323
|
|
|
|
42,482
|
|
|
|
-
|
|
Other liabilities
|
|
|
28,299
|
|
|
|
67,215
|
|
|
|
32,699
|
|
|
|
45,400
|
|
Total liabilities
|
|
$
|
4,039,209
|
|
|
$
|
4,383,998
|
|
|
$
|
3,654,157
|
|
|
$
|
4,094,873
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
Common stock - authorized, 75,000,000 shares of $1.00 par value;
56,307,088 and 55,757,559 shares issued at March 31, 2018 and 2017,
respectively
|
|
|
56,307
|
|
|
|
55,861
|
|
|
|
55,860
|
|
|
|
55,758
|
|
Treasury stock (100,000 shares)
|
|
|
(866
|
)
|
|
|
(866
|
)
|
|
|
(866
|
)
|
|
|
(866
|
)
|
Additional paid-in capital
|
|
|
363,605
|
|
|
|
363,196
|
|
|
|
362,340
|
|
|
|
360,801
|
|
Accumulated deficit
|
|
|
(75,345
|
)
|
|
|
(89,485
|
)
|
|
|
(77,850
|
)
|
|
|
(103,978
|
)
|
Accumulated other comprehensive loss
|
|
|
(13,809
|
)
|
|
|
(4,557
|
)
|
|
|
(23
|
)
|
|
|
(1,946
|
)
|
Total shareholders' equity
|
|
|
329,891
|
|
|
|
324,149
|
|
|
|
339,461
|
|
|
|
309,769
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
4,369,100
|
|
|
$
|
4,708,147
|
|
|
$
|
3,993,618
|
|
|
$
|
4,404,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance sheet and net interest income
|
|
|
Three months ended March 31, 2018
|
|
Three months ended March 31, 2017
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
Assets:
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans net of unearned fees and costs **
|
|
$
|
1,947,320
|
|
$
|
23,039
|
|
4.73
|
%
|
$
|
1,634,136
|
|
$
|
17,371
|
|
4.25
|
%
|
|
Leases - bank qualified*
|
|
|
21,036
|
|
|
334
|
|
6.35
|
%
|
|
21,180
|
|
|
396
|
|
7.48
|
%
|
|
Investment securities-taxable
|
|
|
1,375,568
|
|
|
9,699
|
|
2.82
|
%
|
|
1,325,247
|
|
|
9,005
|
|
2.72
|
%
|
|
Investment securities-nontaxable*
|
|
|
9,893
|
|
|
75
|
|
3.03
|
%
|
|
15,423
|
|
|
111
|
|
2.88
|
%
|
|
Interest earning deposits at Federal Reserve Bank
|
|
|
502,233
|
|
|
1,832
|
|
1.46
|
%
|
|
771,529
|
|
|
1,516
|
|
0.79
|
%
|
|
Federal funds sold and securities purchased under agreement to resell
|
|
|
64,216
|
|
|
414
|
|
2.58
|
%
|
|
49,829
|
|
|
227
|
|
1.82
|
%
|
Net interest earning assets
|
|
|
3,920,266
|
|
|
35,393
|
|
3.61
|
%
|
|
3,817,344
|
|
|
28,626
|
|
3.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
|
(6,976
|
)
|
|
|
|
|
|
(6,221
|
)
|
|
|
|
|
Assets held for sale from discontinued operations
|
|
|
294,708
|
|
|
2,527
|
|
3.43
|
%
|
|
335,929
|
|
|
3,361
|
|
4.00
|
%
|
Other assets
|
|
|
203,095
|
|
|
|
|
|
|
280,505
|
|
|
|
|
|
|
|
|
$
|
4,411,093
|
|
|
|
|
|
$
|
4,427,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking
|
|
$
|
3,535,791
|
|
$
|
4,301
|
|
0.49
|
%
|
$
|
3,657,413
|
|
$
|
2,787
|
|
0.30
|
%
|
|
Savings and money market
|
|
|
487,380
|
|
|
668
|
|
0.55
|
%
|
|
429,713
|
|
|
647
|
|
0.60
|
%
|
Total deposits
|
|
|
4,023,171
|
|
|
4,969
|
|
0.49
|
%
|
|
4,087,126
|
|
|
3,434
|
|
0.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
24,844
|
|
|
104
|
|
1.67
|
%
|
|
-
|
|
|
-
|
|
0.00
|
%
|
Securities sold under agreements to repurchase
|
|
|
205
|
|
|
-
|
|
0.00
|
%
|
|
275
|
|
|
-
|
|
0.00
|
%
|
Subordinated debentures
|
|
|
13,401
|
|
|
160
|
|
4.78
|
%
|
|
13,401
|
|
|
138
|
|
4.12
|
%
|
Total deposits and interest bearing liabilities
|
|
|
4,061,621
|
|
|
5,233
|
|
0.52
|
%
|
|
4,100,802
|
|
|
3,572
|
|
0.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
22,452
|
|
|
|
|
|
|
20,234
|
|
|
|
|
|
Total liabilities
|
|
|
4,084,073
|
|
|
|
|
|
|
4,121,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
327,020
|
|
|
|
|
|
|
306,521
|
|
|
|
|
|
|
|
|
$
|
4,411,093
|
|
|
|
|
|
$
|
4,427,557
|
|
|
|
|
|
|
Net interest income on tax equivalent basis*
|
|
|
|
$
|
32,687
|
|
|
|
|
$
|
28,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment
|
|
|
|
|
86
|
|
|
|
|
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
$
|
32,601
|
|
|
|
|
$
|
28,238
|
|
|
|
Net interest margin *
|
|
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
2.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Full taxable equivalent basis, using a 21% statutory tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Includes loans held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses:
|
|
Three months ended
|
|
Year ended
|
|
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Balance in the allowance for loan and lease losses at beginning of
period (1)
|
|
$
|
7,096
|
|
|
$
|
6,332
|
|
|
$
|
6,332
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
SBA non-real estate
|
|
|
388
|
|
|
|
-
|
|
|
|
1,171
|
|
|
|
SBA commercial mortgage
|
|
|
157
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Direct lease financing
|
|
|
56
|
|
|
|
35
|
|
|
|
926
|
|
|
|
Other consumer loans
|
|
|
13
|
|
|
|
12
|
|
|
|
110
|
|
|
|
Total
|
|
|
614
|
|
|
|
47
|
|
|
|
2,207
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
SBA non-real estate
|
|
|
40
|
|
|
|
-
|
|
|
|
18
|
|
|
|
SBA commercial mortgage
|
|
|
5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Direct lease financing
|
|
|
58
|
|
|
|
-
|
|
|
|
7
|
|
|
|
Other consumer loans
|
|
|
-
|
|
|
|
9
|
|
|
|
26
|
|
|
|
Total
|
|
|
103
|
|
|
|
9
|
|
|
|
51
|
|
|
|
Net charge-offs
|
|
|
511
|
|
|
|
38
|
|
|
|
2,156
|
|
|
|
Provision charged to operations
|
|
|
700
|
|
|
|
1,000
|
|
|
|
2,920
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance in allowance for loan and lease losses at end of period
|
|
$
|
7,285
|
|
|
$
|
7,294
|
|
|
$
|
7,096
|
|
|
|
Net charge-offs/average loans
|
|
|
0.03
|
%
|
|
|
0.00
|
%
|
|
|
0.12
|
%
|
|
|
Net charge-offs/average loans (annualized)
|
|
|
0.11
|
%
|
|
|
0.01
|
%
|
|
|
0.12
|
%
|
|
|
Net charge-offs/average assets
|
|
|
0.01
|
%
|
|
|
0.00
|
%
|
|
|
0.05
|
%
|
|
|
(1) Excludes activity from assets held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio:
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
SBA non-real estate
|
|
$
|
75,225
|
|
|
$
|
70,379
|
|
|
$
|
71,094
|
|
|
$
|
74,699
|
SBA commercial mortgage
|
|
|
149,227
|
|
|
|
142,086
|
|
|
|
132,997
|
|
|
|
114,703
|
SBA construction
|
|
|
20,143
|
|
|
|
16,740
|
|
|
|
14,205
|
|
|
|
12,985
|
Total SBA loans
|
|
|
244,595
|
|
|
|
229,205
|
|
|
|
218,296
|
|
|
|
202,387
|
Direct lease financing
|
|
|
385,467
|
|
|
|
377,660
|
|
|
|
368,661
|
|
|
|
362,688
|
SBLOC
|
|
|
759,369
|
|
|
|
730,462
|
|
|
|
720,279
|
|
|
|
660,423
|
Other specialty lending
|
|
|
45,729
|
|
|
|
30,720
|
|
|
|
36,664
|
|
|
|
12,443
|
Other consumer loans
|
|
|
17,416
|
|
|
|
14,133
|
|
|
|
20,107
|
|
|
|
16,318
|
|
|
|
1,452,576
|
|
|
|
1,382,180
|
|
|
|
1,364,008
|
|
|
|
1,254,259
|
Unamortized loan fees and costs
|
|
|
10,488
|
|
|
|
10,048
|
|
|
|
10,052
|
|
|
|
9,868
|
Total loans, net of deferred loan fees and costs
|
|
$
|
1,463,064
|
|
|
$
|
1,392,228
|
|
|
$
|
1,374,060
|
|
|
$
|
1,264,127
|
|
|
|
|
|
|
|
|
|
Small business lending portfolio:
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
SBA loans, including deferred fees and costs
|
|
|
252,457
|
|
|
|
236,724
|
|
|
|
225,909
|
|
|
|
209,980
|
SBA loans included in HFS
|
|
|
172,030
|
|
|
|
165,177
|
|
|
|
160,855
|
|
|
|
159,831
|
Total SBA loans
|
|
$
|
424,487
|
|
|
$
|
401,901
|
|
|
$
|
386,764
|
|
|
$
|
369,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios:
|
|
Tier 1 capital
|
|
Tier 1 capital
|
|
Total capital
|
|
Common equity
|
|
|
to average
|
|
to risk-weighted
|
|
to risk-weighted
|
|
tier 1 to risk
|
|
|
assets ratio
|
|
assets ratio
|
|
assets ratio
|
|
weighted assets
|
As of March 31, 2018
|
|
|
|
|
|
|
|
|
The Bancorp, Inc.
|
|
7.69
|
%
|
|
18.43
|
%
|
|
18.82
|
%
|
|
18.43
|
%
|
The Bancorp Bank
|
|
7.31
|
%
|
|
17.84
|
%
|
|
18.23
|
%
|
|
17.84
|
%
|
"Well capitalized" institution (under FDIC regulations)
|
|
5.00
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
The Bancorp, Inc.
|
|
7.90
|
%
|
|
16.73
|
%
|
|
17.09
|
%
|
|
16.73
|
%
|
The Bancorp Bank
|
|
7.61
|
%
|
|
16.23
|
%
|
|
16.59
|
%
|
|
16.23
|
%
|
"Well capitalized" institution (under FDIC regulations)
|
|
5.00
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
|
Selected operating ratios:
|
|
|
|
|
|
|
|
|
Return on average assets (1)
|
|
|
1.30
|
%
|
|
|
0.73
|
%
|
|
|
0.52
|
%
|
|
|
Return on average equity (1)
|
|
|
17.54
|
%
|
|
|
10.54
|
%
|
|
|
6.96
|
%
|
|
|
Net interest margin
|
|
|
3.12
|
%
|
|
|
2.70
|
%
|
|
|
3.04
|
%
|
|
|
Book value per share
|
|
$
|
5.87
|
|
|
$
|
5.57
|
|
|
$
|
5.81
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
Nonperforming loans to total loans (2)
|
|
|
0.42
|
%
|
|
|
0.30
|
%
|
|
|
0.39
|
%
|
|
|
0.55
|
%
|
Nonperforming assets to total assets (2)
|
|
|
0.15
|
%
|
|
|
0.10
|
%
|
|
|
0.13
|
%
|
|
|
0.16
|
%
|
Allowance for loan and lease losses to total loans
|
|
|
0.50
|
%
|
|
|
0.51
|
%
|
|
|
0.53
|
%
|
|
|
0.58
|
%
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
$
|
3,516
|
|
|
$
|
3,996
|
|
|
$
|
4,953
|
|
|
$
|
5,369
|
|
Other real estate owned
|
|
|
405
|
|
|
|
450
|
|
|
|
-
|
|
|
|
104
|
|
Total nonperforming assets
|
|
$
|
3,921
|
|
|
$
|
4,446
|
|
|
$
|
4,953
|
|
|
$
|
5,473
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days past due still accruing interest (3)
|
|
$
|
2,643
|
|
|
$
|
227
|
|
|
$
|
354
|
|
|
$
|
1,534
|
|
(2)
|
|
Nonperforming loan and asset ratios include nonaccrual loans and
loans 90 days past due still accruing interest.
|
(3)
|
|
An uptick in delinquencies less than 90 days delinquent at March
31, 2018 reflected the maturity of a note for an $8 million loan
in New York City which matured in January 2018. We are in the
process of accumulating information for potential renewal or to
otherwise address disposition. The estimated loan to value for
this loan is 78% based upon a first quarter 2018 appraisal.
|
|
|
|
|
|
Three months ended
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
|
(in thousands)
|
Gross dollar volume (GDV) (4):
|
|
|
|
|
|
|
|
|
Prepaid card GDV
|
|
$
|
13,402,496
|
|
$
|
10,963,456
|
|
$
|
10,970,085
|
|
$
|
13,342,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Gross dollar volume represents the total dollar amount spent on
prepaid and debit cards issued by The Bancorp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business line quarterly summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances
|
|
Non interest income
|
|
|
|
|
|
|
% Growth
|
|
|
|
% Growth
|
Major business lines
|
|
Average approximate rates
|
|
Balances*
|
|
Year over year
|
|
Linked quarter annualized
|
|
Current quarter
|
|
Year over year
|
|
Linked quarter annualized
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional banking**
|
|
3.50
|
%
|
|
$
|
759
|
|
15
|
%
|
|
16
|
%
|
|
$
|
1.5
|
|
16
|
%
|
|
nm
|
SBA
|
|
5.10
|
%
|
|
|
424
|
|
15
|
%
|
|
22
|
%
|
|
|
-
|
|
-
|
|
|
-
|
|
Leasing
|
|
5.80
|
%
|
|
|
385
|
|
6
|
%
|
|
8
|
%
|
|
|
0.5
|
|
-12
|
%
|
|
nm
|
Commercial real estate securitization
|
|
5.65
|
%
|
|
|
178
|
|
nm
|
|
nm
|
|
|
11.7
|
|
118
|
%
|
|
nm
|
Weighted average yield
|
|
4.61
|
%
|
|
$
|
1,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment solutions (primarily prepaid)
|
0.66
|
%
|
|
$
|
2,216
|
|
2
|
%
|
|
12
|
%
|
|
$
|
14.3
|
|
5
|
%
|
|
5
|
%
|
Card payment and ACH processing
|
|
0.33
|
%
|
|
|
900
|
|
3
|
%
|
|
28
|
%
|
|
|
1.7
|
|
11
|
%
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Loan categories based on period end balance and deposit categories
based on average quarterly balances.
|
** Includes SBLOC loans and IRA fees.
|
|
|
|
|
|
|
Analysis of Walnut Street* marks:
|
|
|
|
|
|
|
|
|
|
|
|
Loan activity
|
|
Marks
|
|
|
(dollars in millions)
|
|
|
|
|
|
Original Walnut Street loan balance, December 31, 2014
|
|
$
|
267
|
|
|
|
Marks through December 31, 2014 sale date
|
|
|
(58
|
)
|
|
$
|
(58
|
)
|
Sales price of Walnut Street
|
|
|
209
|
|
|
|
Equity investment from independent investor
|
|
|
(16
|
)
|
|
|
December 31, 2014 Bancorp book value
|
|
|
193
|
|
|
|
Additional marks 2015 and 2016
|
|
|
(42
|
)
|
|
|
(42
|
)
|
2018 marks
|
|
|
(1
|
)
|
|
|
(1
|
)
|
Payments received
|
|
|
(80
|
)
|
|
|
March 31, 2018 Bancorp book value**
|
|
$
|
70
|
|
|
|
|
|
|
|
|
Total marks
|
|
|
|
$
|
(101
|
)
|
Divided by:
|
|
|
|
|
Original Walnut Street loan balance
|
|
|
|
$
|
267
|
|
Percentage of total mark to original balance
|
|
|
|
|
38
|
%
|
|
|
|
|
|
|
|
* Walnut Street is the investment in unconsolidated entity on the
balance sheet which reflects the Bank's investment in a
securitization of certain loans from the Bank's discontinued loan
portfolio.
|
** Approximately 26% of expected principal recoveries were from
loans and properties pending liquidation or other resolutions.
|
|
Walnut Street portfolio composition as of March 31, 2018
|
|
|
|
|
|
Collateral type
|
|
|
|
% of Portfolio
|
Commercial real estate non-owner occupied
|
|
|
|
|
Retail
|
|
|
|
47.2
|
%
|
Office
|
|
|
|
15.1
|
%
|
Other
|
|
|
|
3.5
|
%
|
Construction and land
|
|
|
|
23.1
|
%
|
Commercial non real estate and industrial
|
|
|
|
0.5
|
%
|
First mortgage residential owner occupied
|
|
|
|
5.6
|
%
|
First mortgage residential non-owner occupied
|
|
|
|
4.2
|
%
|
Other
|
|
|
|
0.8
|
%
|
Total
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Cumulative analysis of marks on discontinued commercial loan
principal as of March 31, 2018
|
|
|
|
|
|
|
|
|
|
Discontinued
|
|
Cumulative
|
|
% to original
|
|
|
loan principal
|
|
marks
|
|
principal
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
Commercial loan discontinued principal before marks
|
|
$
|
210
|
|
|
|
|
Florida mall held in discontinued other real estate owned
|
|
|
42
|
|
|
27
|
|
|
Previous mark charges
|
|
|
33
|
|
|
33
|
|
|
Mark at March 31, 2018
|
|
|
|
|
15
|
|
|
Total
|
|
$
|
285
|
|
$
|
75
|
|
26
|
%
|
Analysis of discontinued loan relationships of March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
|
loan principal(1)
|
|
loan principal(2)
|
|
loan principal
|
|
loan marks
|
|
loan marks
|
|
marks
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 loan relationships > $8 million
|
|
$
|
100
|
|
$
|
45
|
|
$
|
145
|
|
$
|
5
|
|
$
|
-
|
|
$
|
5
|
Loan relationships < $8 million
|
|
|
40
|
|
|
10
|
|
|
50
|
|
|
4
|
|
|
6
|
|
|
10
|
|
|
$
|
140
|
|
$
|
55
|
|
$
|
195
|
|
$
|
9
|
|
$
|
6
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Performing discontinued loans included a $17 million loan which
was delinquent 60 days as of March 31, 2018. The loan is secured
by multiple commercial real estate properties which cumulatively
have a 95% loan to value.
|
|
(2)
|
|
The vast majority of the increase to $55 million in non-performing
discontinued loans at March 31, 2018 from $16 million at year end
2017 resulted from the Bank's largest credit exposure. The loan
has unpaid principal of $36.9 million and is collateralized by a
hotel under construction and parking lot in the southeastern
United States. Based upon an independent first quarter 2018
appraisal, the loan to value is approximately 80% on an as is
basis, with personal guarantees of certain of the borrower's
principals. The loan became delinquent in the first quarter of
2018 and the borrower, a development corporation, subsequently
declared bankruptcy. The Bank is pursuing collection and we
currently believe that there will be no loss of principal.
|
|
|
Quarterly activity for commercial loan discontinued principal
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
loan principal
|
|
|
|
(in millions)
|
|
|
|
|
Commercial loan discontinued principal December 31, 2017 before marks
|
|
$
|
225
|
|
2018 net paydowns
|
|
|
|
(15
|
)
|
Commercial loan discontinued principal March 31, 2018 before marks
|
|
$
|
210
|
|
Marks March 31, 2018
|
|
|
|
(15
|
)
|
Net commercial loan exposure March 31, 2018
|
|
|
$
|
195
|
|
Residential mortgages
|
|
|
|
59
|
|
Net loans
|
|
|
$
|
254
|
|
Florida mall in other real estate owned
|
|
|
|
15
|
|
Other 29 properties in other real estate owned
|
|
|
|
19
|
|
Other assets related to discontinued operations
|
|
|
|
1
|
|
Total discontinued assets at March 31, 2018
|
|
|
$
|
289
|
|
|
|
|
|
|
|
Discontinued commercial loan composition March 31, 2018
|
|
|
|
|
|
|
|
Collateral type
|
|
Unpaid principal balance
|
|
Mark March 31, 2018
|
|
Mark as % of portfolio
|
|
|
(dollars in millions)
|
Commercial real estate - non-owner occupied:
|
|
|
|
|
|
|
Retail
|
|
$
|
11
|
|
|
$
|
0.7
|
|
6
|
%
|
Office
|
|
|
8
|
|
|
|
0.7
|
|
9
|
%
|
Other
|
|
|
42
|
|
|
|
0.7
|
|
2
|
%
|
Construction and land
|
|
|
80
|
|
|
|
1.3
|
|
2
|
%
|
Commercial non-real estate and industrial
|
|
|
14
|
|
|
|
1.9
|
|
13
|
%
|
1 to 4 family construction
|
|
|
25
|
|
|
|
4.4
|
|
18
|
%
|
First mortgage residential non-owner occupied
|
|
|
18
|
|
|
|
4.5
|
|
25
|
%
|
Commercial real estate owner occupied:
|
|
|
|
|
|
|
Retail
|
|
|
9
|
|
|
|
0.4
|
|
4
|
%
|
Office
|
|
|
-
|
|
|
|
-
|
|
-
|
|
Other
|
|
|
1
|
|
|
|
-
|
|
0
|
%
|
Residential junior mortgage
|
|
|
1
|
|
|
|
-
|
|
0
|
%
|
Other
|
|
|
1
|
|
|
|
-
|
|
0
|
%
|
Total
|
|
$
|
210
|
|
|
|
|
|
Less: mark
|
|
|
(15
|
)
|
|
|
|
|
Net commercial loan exposure March 31, 2018
|
|
$
|
195
|
|
|
$
|
14.6
|
|
7
|
%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180426006655/en/
[ Back To TMCnet.com's Homepage ]
|