Attached files
| file | filename |
|---|---|
| 8-K - THE BANCORP, INC. FORM 8-K - Bancorp, Inc. | bancorp8k.htm |
Exhibit 99.1
The Bancorp, Inc. Reports Second Quarter 2016 Financial Results
Wilmington, DE – July 28, 2016 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for second quarter 2016.
Highlights
| · | Net interest income increased 23% to $20.9 million for the quarter ended June 30, 2016 compared to $17.0 million for the quarter ended June 30, 2015. |
| · | Net interest margin increased to 2.73% for the quarter ended June 30, 2016 compared to 2.23% for the quarter ended June 30, 2015. |
| · | Loans and continuing operations loans held for sale increased 30% to $1.62 billion at June 30, 2016 compared to $1.25 billion at June 30, 2015. |
| · | Small Business Administration ("SBA") loans increased 40% to $334.2 million from $239.2 million at June 30, 2015. |
| · | Security backed lines of credit ("SBLOC") increased 18% to $607.0 million from $512.3 million at June 30, 2015. |
| · | Direct lease financing increased 42% to $315.6 million from $222.2 million at June 30, 2015. |
| · | Prepaid card fee income increased 21% to $13.5 million for the quarter ended June 30, 2016 from $11.1 million for the quarter ended June 30, 2015. |
| · | Gross dollar volume ("GDV") (1) increased 14% to $11.4 billion for Q2 2016 from $10.0 billion for Q2 2015. |
| · | Assets held for sale from discontinued operations decreased 17% from December 31, 2015 and 25% from June 30, 2015. |
| · | The rate payable by us for average deposits and interest bearing liabilities of $3.77 billion in Q2 2016 was 0.32% with a rate of 0.11% for $1.87 billion of average prepaid card deposits. |
| · | Book value per common share at June 30, 2016 of $7.67 per share. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized. |
The Bancorp reported a net loss of $31.4 million, or $0.83 loss per diluted share, for the quarter ended June 30, 2016 compared to net income of $174,000, or $0.00 net income per share, for the quarter ended June 30, 2015. Net loss from continuing operations for the quarter ended June 30, 2016 was $17.8 million or a loss of $0.47 per diluted share compared to net loss from continuing operations of $2.5 million or a loss of $0.07 per diluted share for the quarter ended June 30, 2015. Loss from continuing operations does not include any income which may result from the reinvestment of the proceeds from sales of the remaining $471.1 million of commercial and residential loans 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 6.78%, 12.72%, 12.97% and 12.72% compared to well capitalized minimums of 5%, 8%, 10% and 6.5%.
Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "Upon joining Bancorp, I immediately began a process to create a new business plan that will sustain our revenue growth, lower our expenses, increase productivity and reduce earnings volatility from our portfolio. In addition, the plan will also be squarely focused on resolving any issues with our regulators and managing the overall risk of our institution. We hope to complete the plan by the end of the 3rd quarter and implement many parts of it by the end of 2016. Strong revenue growth continued this quarter, and our core lending businesses drove a 23% increase over prior year quarter net interest income. Our non-interest income reflected 21% growth in prepaid card fees to $13.5 million. Earnings were negatively impacted by continued high regulatory lookback expenses, as expected, and were further negatively impacted by loan charges on discontinued operations and charges relating to our retained interest in an unconsolidated entity. Lookback expenses totaled $13.4 million for the quarter. However, the lookback is substantially complete and we expect that lookback expense will be substantially less in the third quarter. Loan charges on discontinued operations were based on quarterly loan valuations by third party loan review companies and totaled $17 million in the quarter. Additional charges of $15 million against the investment in unconsolidated entity were also taken on the basis of third party review. That entity, in which we have a substantial retained interest, represents the financing of a portion of the sale of certain discontinued loans to an independent investor. Loan charges during the quarter partially reflected strategies to liquidate certain unique collateral and properties to expedite resolution as we continue to pursue sales of other discontinued loans. Credit losses in our continuing operations which we believe to be lower risk lines of business, continue to be very low."
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, July 29, 2016 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 47292256. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, August 5, 2016 by dialing 855.859.2056, access code 47292256.
About The Bancorp
With operations in the US and Europe, 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 chief financial institution, 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 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. Contact
Andres Viroslav
215-861-7990
aviroslav@thebancorp.com
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The Bancorp, Inc.
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|
Financial highlights
|
||||||||||||||||
|
(unaudited)
|
||||||||||||||||
|
Three months ended
|
Six months ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
Condensed income statement
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
(dollars in thousands except per share data)
|
||||||||||||||||
|
Net interest income
|
$
|
20,890
|
$
|
17,037
|
$
|
41,446
|
$
|
33,551
|
||||||||
|
Provision for loan and lease losses
|
1,060
|
510
|
1,060
|
1,175
|
||||||||||||
|
Non-interest income
|
||||||||||||||||
|
Service fees on deposit accounts
|
978
|
1,900
|
1,825
|
3,660
|
||||||||||||
|
Card payment and ACH processing fees
|
1,457
|
1,496
|
2,724
|
2,749
|
||||||||||||
|
Prepaid card fees
|
13,510
|
11,128
|
27,084
|
24,260
|
||||||||||||
|
Gain (loss) on sale of loans
|
1,339
|
5,901
|
(94
|
)
|
7,577
|
|||||||||||
|
Gain on sale of investment securities
|
124
|
193
|
2,150
|
273
|
||||||||||||
|
Change in value of investment in unconsolidated entity
|
(13,936
|
)
|
1,056
|
(13,124
|
)
|
2,101
|
||||||||||
|
Leasing income
|
464
|
656
|
868
|
1,175
|
||||||||||||
|
Debit card income
|
(65
|
)
|
471
|
(157
|
)
|
931
|
||||||||||
|
Affinity fees
|
1,322
|
896
|
2,416
|
1,308
|
||||||||||||
|
Other non-interest income
|
4,347
|
1,027
|
4,536
|
1,467
|
||||||||||||
|
Total non-interest income
|
9,540
|
24,724
|
28,228
|
45,501
|
||||||||||||
|
Non-interest expense
|
||||||||||||||||
|
Bank Secrecy Act and lookback consulting expenses
|
13,421
|
9,212
|
27,736
|
14,956
|
||||||||||||
|
Other non-interest expense
|
43,715
|
37,222
|
84,538
|
72,338
|
||||||||||||
|
Total non-interest expense
|
57,136
|
46,434
|
112,274
|
87,294
|
||||||||||||
|
Loss from continuing operations before income tax expense
|
(27,766
|
)
|
(5,183
|
)
|
(43,660
|
)
|
(9,417
|
)
|
||||||||
|
Income tax benefit
|
(10,004
|
)
|
(2,684
|
)
|
(15,276
|
)
|
(5,111
|
)
|
||||||||
|
Net loss from continuing operations
|
(17,762
|
)
|
(2,499
|
)
|
(28,384
|
)
|
(4,306
|
)
|
||||||||
|
Net income (loss) from discontinued operations, net of tax
|
(13,598
|
)
|
2,673
|
(13,888
|
)
|
4,694
|
||||||||||
|
Net income (loss) available to common shareholders
|
$
|
(31,360
|
)
|
$
|
174
|
$
|
(42,272
|
)
|
$
|
388
|
||||||
|
Net loss per share from continuing operations - basic
|
$
|
(0.47
|
)
|
$
|
(0.07
|
)
|
$
|
(0.75
|
)
|
$
|
(0.11
|
)
|
||||
|
Net income (loss) per share from discontinued operations - basic
|
$
|
(0.36
|
)
|
$
|
0.07
|
$
|
(0.37
|
)
|
$
|
0.12
|
||||||
|
Net income (loss) per share - basic
|
$
|
(0.83
|
)
|
$
|
-
|
$
|
(1.12
|
)
|
$
|
0.01
|
||||||
|
Net loss per share from continuing operations - diluted
|
$
|
(0.47
|
)
|
$
|
(0.07
|
)
|
$
|
(0.75
|
)
|
$
|
(0.11
|
)
|
||||
|
Net income (loss) per share from discontinued operations - diluted
|
$
|
(0.36
|
)
|
$
|
0.07
|
$
|
(0.37
|
)
|
$
|
0.12
|
||||||
|
Net income (loss) per share - diluted
|
$
|
(0.83
|
)
|
$
|
-
|
$
|
(1.12
|
)
|
$
|
0.01
|
||||||
|
Common stock shares outstanding
|
37,945,323
|
37,858,237
|
37,945,323
|
37,858,237
|
||||||||||||
|
(a) For loss periods the weighted averages shares - basic is used in both the basic and diluted computations.
|
||||||||||||||||
|
Balance sheet
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
Assets:
|
||||||||||||||||
|
Cash and cash equivalents
|
||||||||||||||||
|
Cash and due from banks
|
$
|
4,006
|
$
|
8,542
|
$
|
7,643
|
$
|
13,269
|
||||||||
|
Interest earning deposits at Federal Reserve Bank
|
528,094
|
757,773
|
1,147,519
|
936,989
|
||||||||||||
|
Securities sold under agreements to resell
|
39,360
|
10,208
|
-
|
40,068
|
||||||||||||
|
Total cash and cash equivalents
|
571,460
|
776,523
|
1,155,162
|
990,326
|
||||||||||||
|
Investment securities, available-for-sale, at fair value
|
1,328,693
|
1,252,754
|
1,070,098
|
1,370,027
|
||||||||||||
|
Investment securities, held-to-maturity
|
93,537
|
93,550
|
93,590
|
93,649
|
||||||||||||
|
Loans held for sale, at fair value
|
441,593
|
313,595
|
489,938
|
284,501
|
||||||||||||
|
Loans, net of deferred fees and costs
|
1,182,106
|
1,114,053
|
1,078,077
|
968,033
|
||||||||||||
|
Allowance for loan and lease losses
|
(5,398
|
)
|
(4,378
|
)
|
(4,400
|
)
|
(4,352
|
)
|
||||||||
|
Loans, net
|
1,176,708
|
1,109,675
|
1,073,677
|
963,681
|
||||||||||||
|
Federal Home Loan Bank & Atlantic Community Bancshares stock
|
12,289
|
1,063
|
1,062
|
1,063
|
||||||||||||
|
Premises and equipment, net
|
22,429
|
21,692
|
21,631
|
19,271
|
||||||||||||
|
Accrued interest receivable
|
10,271
|
9,172
|
9,471
|
11,526
|
||||||||||||
|
Intangible assets, net
|
6,074
|
4,672
|
4,929
|
5,541
|
||||||||||||
|
Deferred tax asset, net
|
28,870
|
32,462
|
36,207
|
35,874
|
||||||||||||
|
Investment in unconsolidated entity
|
162,275
|
177,211
|
178,520
|
187,186
|
||||||||||||
|
Assets held for sale from discontinued operations
|
487,373
|
536,548
|
583,909
|
651,158
|
||||||||||||
|
Other assets
|
60,203
|
50,802
|
47,629
|
43,804
|
||||||||||||
|
Total assets
|
$
|
4,401,775
|
$
|
4,379,719
|
$
|
4,765,823
|
$
|
4,657,607
|
||||||||
|
Liabilities:
|
||||||||||||||||
|
Deposits
|
||||||||||||||||
|
Demand and interest checking
|
$
|
3,569,669
|
$
|
3,610,003
|
$
|
3,602,376
|
$
|
3,993,393
|
||||||||
|
Savings and money market
|
389,851
|
388,953
|
383,832
|
321,264
|
||||||||||||
|
Time deposits
|
101,160
|
-
|
428,549
|
1,400
|
||||||||||||
|
Total deposits
|
4,060,680
|
3,998,956
|
4,414,757
|
4,316,057
|
||||||||||||
|
Securities sold under agreements to repurchase
|
318
|
671
|
925
|
2,357
|
||||||||||||
|
Subordinated debenture
|
13,401
|
13,401
|
13,401
|
13,401
|
||||||||||||
|
Other liabilities
|
37,093
|
51,102
|
16,739
|
10,038
|
||||||||||||
|
Total liabilities
|
$
|
4,111,492
|
$
|
4,064,130
|
$
|
4,445,822
|
$
|
4,341,853
|
||||||||
|
Shareholders' equity:
|
||||||||||||||||
|
Common stock - authorized, 75,000,000 shares of $1.00 par value; 37,945,323 and 37,858,237 shares issued at June 30, 2016 and 2015, respectively
|
37,945
|
37,945
|
37,861
|
37,858
|
||||||||||||
|
Treasury stock (100,000 shares)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
||||||||
|
Additional paid-in capital
|
301,680
|
301,018
|
300,549
|
298,978
|
||||||||||||
|
Accumulated deficit
|
(57,720
|
)
|
(26,361
|
)
|
(15,449
|
)
|
(27,854
|
)
|
||||||||
|
Accumulated other comprehensive income (loss)
|
9,244
|
3,853
|
(2,094
|
)
|
7,638
|
|||||||||||
|
Total shareholders' equity
|
290,283
|
315,589
|
320,001
|
315,754
|
||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
4,401,775
|
$
|
4,379,719
|
$
|
4,765,823
|
$
|
4,657,607
|
||||||||
|
Average balance sheet and net interest income
|
Three months ended June 30, 2016
|
Three months ended June 30, 2015
|
||||||||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Assets:
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Loans net of unearned fees and costs **
|
$
|
1,458,980
|
$
|
15,080
|
4.13
|
%
|
$
|
1,240,932
|
$
|
11,258
|
3.63
|
%
|
||||||||||||
|
Leases - bank qualified*
|
20,603
|
435
|
8.45
|
%
|
24,023
|
424
|
7.06
|
%
|
||||||||||||||||
|
Investment securities-taxable
|
1,317,902
|
7,900
|
2.40
|
%
|
982,332
|
4,906
|
2.00
|
%
|
||||||||||||||||
|
Investment securities-nontaxable*
|
55,271
|
270
|
1.95
|
%
|
523,843
|
4,674
|
3.57
|
%
|
||||||||||||||||
|
Interest earning deposits at Federal Reserve Bank
|
348,150
|
378
|
0.43
|
%
|
950,019
|
557
|
0.23
|
%
|
||||||||||||||||
|
Federal funds sold and securities purchased under agreement to resell
|
35,297
|
128
|
1.45
|
%
|
44,280
|
158
|
1.43
|
%
|
||||||||||||||||
|
Net interest earning assets
|
3,236,203
|
24,191
|
2.99
|
%
|
3,765,429
|
21,977
|
2.33
|
%
|
||||||||||||||||
|
Allowance for loan and lease losses
|
(4,313
|
)
|
(4,234
|
)
|
||||||||||||||||||||
|
Assets held for sale from discontinued operations
|
537,252
|
5,327
|
3.97
|
%
|
679,581
|
7,397
|
4.35
|
%
|
||||||||||||||||
|
Other assets
|
326,407
|
302,973
|
||||||||||||||||||||||
|
$
|
4,095,549
|
$
|
4,743,749
|
|||||||||||||||||||||
|
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Demand and interest checking
|
$
|
3,264,909
|
$
|
2,397
|
0.29
|
%
|
$
|
4,080,804
|
$
|
2,835
|
0.28
|
%
|
||||||||||||
|
Savings and money market
|
390,889
|
379
|
0.39
|
%
|
313,142
|
374
|
0.48
|
%
|
||||||||||||||||
|
Time
|
27,842
|
39
|
0.56
|
%
|
1,400
|
6
|
1.71
|
%
|
||||||||||||||||
|
Total deposits
|
3,683,640
|
2,815
|
0.31
|
%
|
4,395,346
|
3,215
|
0.29
|
%
|
||||||||||||||||
|
Short-term borrowings
|
71,440
|
110
|
0.62
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
|
Repurchase agreements
|
1,210
|
1
|
0.33
|
%
|
5,167
|
4
|
0.31
|
%
|
||||||||||||||||
|
Subordinated debt
|
13,401
|
128
|
3.82
|
%
|
13,401
|
116
|
3.46
|
%
|
||||||||||||||||
|
Total deposits and interest bearing liabilities
|
3,769,691
|
3,054
|
0.32
|
%
|
4,413,914
|
3,335
|
0.30
|
%
|
||||||||||||||||
|
Other liabilities
|
22,922
|
10,933
|
||||||||||||||||||||||
|
Total liabilities
|
3,792,613
|
4,424,847
|
||||||||||||||||||||||
|
Shareholders' equity
|
302,936
|
318,902
|
||||||||||||||||||||||
|
$
|
4,095,549
|
$
|
4,743,749
|
|||||||||||||||||||||
|
Net interest income on tax equivalent basis*
|
$
|
26,464
|
$
|
26,039
|
||||||||||||||||||||
|
Tax equivalent adjustment
|
247
|
1,784
|
||||||||||||||||||||||
|
Net interest income
|
$
|
26,217
|
$
|
24,255
|
||||||||||||||||||||
|
Net interest margin *
|
2.73
|
%
|
2.23
|
%
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
* Full taxable equivalent basis, using a 35% statutory tax rate.
|
||||||||||||||||||||||||
|
** Includes loans held for sale.
|
||||||||||||||||||||||||
|
Average balance sheet and net interest income
|
Six months ended June 30, 2016
|
Six months ended June 30, 2015
|
||||||||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Assets:
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Loans net of unearned fees and costs **
|
$
|
1,471,327
|
$
|
30,636
|
4.16
|
%
|
$
|
1,227,728
|
$
|
21,765
|
3.55
|
%
|
||||||||||||
|
Leases - bank qualified*
|
20,422
|
916
|
8.97
|
%
|
20,807
|
716
|
6.88
|
%
|
||||||||||||||||
|
Investment securities-taxable
|
1,233,639
|
14,432
|
2.34
|
%
|
1,005,397
|
10,066
|
2.00
|
%
|
||||||||||||||||
|
Investment securities-nontaxable*
|
65,558
|
765
|
2.33
|
%
|
528,060
|
9,680
|
3.67
|
%
|
||||||||||||||||
|
Interest earning deposits at Federal Reserve Bank
|
573,595
|
1,280
|
0.45
|
%
|
1,023,112
|
1,179
|
0.23
|
%
|
||||||||||||||||
|
Federal funds sold and securities purchased under agreement to resell
|
21,360
|
155
|
1.45
|
%
|
45,259
|
322
|
1.42
|
%
|
||||||||||||||||
|
Net interest-earning assets
|
3,385,901
|
48,184
|
2.85
|
%
|
3,850,363
|
43,728
|
2.27
|
%
|
||||||||||||||||
|
Allowance for loan and lease losses
|
(4,356
|
)
|
(3,938
|
)
|
||||||||||||||||||||
|
Assets held for sale
|
562,860
|
11,146
|
3.96
|
%
|
718,630
|
15,931
|
4.43
|
%
|
||||||||||||||||
|
Other assets
|
312,405
|
288,981
|
||||||||||||||||||||||
|
$
|
4,256,810
|
$
|
4,854,036
|
|||||||||||||||||||||
|
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Demand and interest checking
|
$
|
3,373,084
|
$
|
4,839
|
0.29
|
%
|
$
|
4,185,239
|
$
|
5,442
|
0.26
|
%
|
||||||||||||
|
Savings and money market
|
389,270
|
604
|
0.31
|
%
|
315,943
|
860
|
0.54
|
%
|
||||||||||||||||
|
Time
|
117,117
|
343
|
0.59
|
%
|
1,400
|
12
|
1.71
|
%
|
||||||||||||||||
|
Total deposits
|
3,879,471
|
5,786
|
0.30
|
%
|
4,502,582
|
6,314
|
0.28
|
%
|
||||||||||||||||
|
Short-term borrowings
|
35,720
|
110
|
0.62
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
|
Repurchase agreements
|
1,033
|
1
|
0.19
|
%
|
9,135
|
13
|
0.28
|
%
|
||||||||||||||||
|
Subordinated debt
|
13,401
|
252
|
3.76
|
%
|
13,401
|
211
|
3.15
|
%
|
||||||||||||||||
|
Total deposits and interest bearing liabilities
|
3,929,625
|
6,149
|
0.31
|
%
|
4,525,118
|
6,538
|
0.29
|
%
|
||||||||||||||||
|
Other liabilities
|
22,043
|
9,976
|
||||||||||||||||||||||
|
Total liabilities
|
3,951,668
|
4,535,094
|
||||||||||||||||||||||
|
Shareholders' equity
|
305,142
|
318,942
|
||||||||||||||||||||||
|
$
|
4,256,810
|
$
|
4,854,036
|
|||||||||||||||||||||
|
Net interest income on tax equivalent basis*
|
53,181
|
53,121
|
||||||||||||||||||||||
|
Tax equivalent adjustment
|
589
|
3,638
|
||||||||||||||||||||||
|
Net interest income
|
$
|
52,592
|
$
|
49,483
|
||||||||||||||||||||
|
Net interest margin *
|
2.56
|
%
|
2.23
|
%
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
* Full taxable equivalent basis, using a 35% statutory tax rate.
|
||||||||||||||||||||||||
|
** Includes loans held for sale.
|
||||||||||||||||||||||||
|
Allowance for loan and lease losses:
|
Six months ended
|
Year ended
|
||||||||||
|
June 30,
|
June 30,
|
December 31,
|
||||||||||
|
2016
|
2015
|
2015
|
||||||||||
|
(dollars in thousands)
|
||||||||||||
|
Balance in the allowance for loan and lease losses at beginning of period (1)
|
$
|
4,400
|
$
|
3,638
|
$
|
3,638
|
||||||
|
Loans charged-off:
|
||||||||||||
|
SBA non real estate
|
-
|
65
|
111
|
|||||||||
|
Direct lease financing
|
50
|
9
|
30
|
|||||||||
|
Other consumer loans
|
28
|
393
|
1,220
|
|||||||||
|
Total
|
78
|
467
|
1,361
|
|||||||||
|
Recoveries:
|
||||||||||||
|
SBA non real estate
|
1
|
-
|
-
|
|||||||||
|
Direct lease financing
|
10
|
-
|
-
|
|||||||||
|
Other consumer loans
|
5
|
6
|
23
|
|||||||||
|
Total
|
16
|
6
|
23
|
|||||||||
|
Net charge-offs
|
62
|
461
|
1,338
|
|||||||||
|
Provision charged to operations
|
1,060
|
1,175
|
2,100
|
|||||||||
|
Balance in allowance for loan and lease losses at end of period
|
$
|
5,398
|
$
|
4,352
|
$
|
4,400
|
||||||
|
Net charge-offs/average loans
|
0.00
|
%
|
0.04
|
%
|
0.11
|
%
|
||||||
|
Net charge-offs/average loans (annualized)
|
0.01
|
%
|
0.07
|
%
|
0.11
|
%
|
||||||
|
Net charge-offs/average assets
|
0.00
|
%
|
0.01
|
%
|
0.03
|
%
|
||||||
|
(1) Excludes activity from assets held for sale
|
||||||||||||
|
Loan portfolio:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
| 2016 | 2016 | 2015 |
2015
|
|||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
SBA non real estate
|
$
|
71,596
|
$
|
71,220
|
$
|
68,887
|
$
|
63,390
|
||||||||
|
SBA commercial mortgage
|
116,617
|
120,415
|
114,029
|
85,234
|
||||||||||||
|
SBA construction
|
3,751
|
9,736
|
6,977
|
16,977
|
||||||||||||
|
Total SBA loans
|
191,964
|
201,371
|
189,893
|
165,601
|
||||||||||||
|
Direct lease financing
|
315,639
|
240,670
|
231,514
|
222,169
|
||||||||||||
|
SBLOC
|
607,017
|
592,656
|
575,948
|
512,269
|
||||||||||||
|
Other specialty lending
|
40,543
|
48,153
|
48,315
|
32,118
|
||||||||||||
|
Other consumer loans
|
20,005
|
21,782
|
23,180
|
27,044
|
||||||||||||
|
1,175,168
|
1,104,632
|
1,068,850
|
959,201
|
|||||||||||||
|
Unamortized loan fees and costs
|
6,938
|
9,421
|
9,227
|
8,832
|
||||||||||||
|
Total loans, net of deferred loan fees and costs
|
$
|
1,182,106
|
$
|
1,114,053
|
$
|
1,078,077
|
$
|
968,033
|
||||||||
|
Small business lending portfolio:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
| 2016 | 2016 | 2015 | 2015 | |||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
SBA loans, including deferred fees and costs
|
197,544
|
209,605
|
197,966
|
173,357
|
||||||||||||
|
SBA loans included in HFS
|
136,660
|
124,763
|
109,174
|
65,885
|
||||||||||||
|
Total SBA loans
|
$
|
334,204
|
$
|
334,368
|
$
|
307,140
|
$
|
239,242
|
||||||||
|
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 June 30, 2016
|
|||||||
|
The Bancorp, Inc.
|
6.78%
|
12.72%
|
12.97%
|
12.72%
|
|||
|
The Bancorp Bank
|
6.35%
|
11.87%
|
12.12%
|
11.87%
|
|||
|
"Well capitalized" institution (under FDIC regulations)
|
5.00%
|
8.00%
|
10.00%
|
6.50%
|
|||
|
As of December 31, 2015
|
|||||||
|
The Bancorp, Inc.
|
7.17%
|
14.67%
|
14.88%
|
14.67%
|
|||
|
The Bancorp Bank
|
6.90%
|
13.98%
|
14.18%
|
13.98%
|
|||
|
"Well capitalized" institution (under FDIC regulations)
|
5.00%
|
8.00%
|
10.00%
|
6.50%
|
|
Three months ended
|
Six months ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
Selected operating ratios:
|
||||||||||||||||
|
Return on average assets (annualized)
|
nm
|
0.01
|
%
|
nm
|
0.02
|
%
|
||||||||||
|
Return on average equity (annualized)
|
nm
|
0.22
|
%
|
nm
|
nm
|
|||||||||||
|
Net interest margin
|
2.73
|
%
|
2.23
|
%
|
2.56
|
%
|
2.23
|
%
|
||||||||
|
Book value per share
|
$
|
7.67
|
$
|
8.36
|
$
|
7.67
|
$
|
8.36
|
||||||||
|
June 30,
2016
|
March 31,
2016
|
December 31,
2015
|
June 30,
2015
|
|||||||||||||
|
Asset quality ratios:
|
||||||||||||||||
|
Nonperforming loans to total loans (2)
|
0.53
|
%
|
0.24
|
%
|
0.22
|
%
|
0.34
|
%
|
||||||||
|
Nonperforming assets to total assets (2)
|
0.14
|
%
|
0.06
|
%
|
0.05
|
%
|
0.07
|
%
|
||||||||
|
Allowance for loan and lease losses to total loans
|
0.46
|
%
|
0.39
|
%
|
0.41
|
%
|
0.45
|
%
|
||||||||
|
Nonaccrual loans
|
$
|
3,147
|
$
|
1,908
|
$
|
1,927
|
$
|
2,666
|
||||||||
|
Other real estate owned
|
-
|
-
|
-
|
-
|
||||||||||||
|
Total nonperforming assets
|
$
|
3,147
|
$
|
1,908
|
$
|
1,927
|
$
|
2,666
|
||||||||
|
Loans 90 days past due still accruing interest
|
$
|
3,172
|
$
|
787
|
$
|
403
|
$
|
620
|
||||||||
|
(2) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.
|
||||||||||||||||
|
Three months ended
|
||||||||||||||||
|
June 30,
2016
|
March 31,
2016
|
December 31,
2015
|
June 30,
2015
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Gross dollar volume (GDV) (1):
|
||||||||||||||||
|
Prepaid card GDV
|
$
|
11,442,294
|
$
|
13,512,319
|
$
|
9,839,782
|
$
|
10,006,333
|
||||||||
|
(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp.
|
||||||||||||||||