Attached files
| file | filename |
|---|---|
| 8-K - THE BANCORP, INC. FORM 8-K - Bancorp, Inc. | bancorp8k.htm |
Exhibit 99.1
The Bancorp, Inc. Reports Third Quarter 2016 Financial Results
Wilmington, DE – October 27, 2016 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for third quarter 2016.
Highlights
| · | Net interest income increased 32% to $23.5 million for the quarter ended September 30, 2016 compared to $17.8 million for the quarter ended September 30, 2015. |
| · | Net interest margin increased to 2.69% for the quarter ended September 30, 2016 compared to 2.34% for the quarter ended September 30, 2015. |
| · | Loans and continuing operations loans held for sale increased 31% to $1.76 billion at September 30, 2016 compared to $1.35 billion at September 30, 2015. |
| · | Direct lease financing increased 49% to $332.6 million from $223.9 million at September 30, 2015. |
| · | Small Business Administration ("SBA") loans increased 24% to $349.6 million from $280.9 million at September 30, 2015. |
| · | Security backed lines of credit ("SBLOC") increased 15% to $621.5 million from $539.2 million at September 30, 2015. |
| · | Prepaid card fee income increased 7% to $12.2 million for the quarter ended September 30, 2016 from $11.5 million for the quarter ended September 30, 2015. |
| · | Gross dollar volume ("GDV") (1) increased 11% to $10.5 billion for Q3 2016 from $9.5 billion for Q3 2015. |
| · | Assets held for sale from discontinued operations decreased 34% from December 31, 2015 reflecting a $64 million sale of discontinued loans during the quarter. |
| · | The rate on our average deposits and interest bearing liabilities of $3.83 billion in Q3 2016 was 0.33% with a rate of 0.12% for $1.81 billion of average prepaid card deposits. |
| · | Average prepaid card deposits, which are among the lowest cost of our deposits, grew 18% in third quarter 2016 compared to third quarter 2015. |
| · | Completion of the BSA lookback consultant engagement. |
| · | Reduction in staff positions by approximately 20% at the end of the quarter. |
| · | Consummation of common equity offering of approximately $75 million. |
| · | Book value per common share at September 30, 2016 of $6.13 per share. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized. |
The Bancorp reported a net loss of $25.5 million, or $0.54 loss per diluted share, for the quarter ended September 30, 2016 compared to net loss of $5.6 million, or $0.15 loss per diluted share, for the quarter ended September 30, 2015. Net loss from continuing operations for the quarter ended September 30, 2016 was $1.5 million or a loss of $0.03 per diluted share compared to net loss from continuing operations of $7.6 million or a loss of $0.20 per diluted share for the quarter ended September 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 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 7.81%, 15.12%, 15.40% and 15.12% compared to well capitalized minimums of 5%, 8%, 10% and 6.5%.
1
Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "Last quarter on my first earnings call, I committed to the completion of a business plan which would emphasize continuing revenue growth and expense reductions, and thereby support increased earnings and reduced volatility. We have completed that integrated and comprehensive business plan and are focused on accelerating related expense reductions while supporting continued strong revenue growth. We are moving ahead in multiple areas to achieve the related goal of a 20 to 25% reduction in non interest expense. In the fourth quarter, we should see the impact of the end of third quarter staff reductions. The business plan also comprehensively addresses the completion of resolving regulatory requirements and expectations. We made related progress with our regulatory issues with the completion of the BSA lookback which will no longer impact earnings. Strong revenue growth continued this quarter, and our core lending businesses drove a 32% increase over prior year quarter net interest income. Our non-interest income reflected 7% growth in prepaid card fees to $12.2 million. Credit losses in our continuing operations which we believe to be lower risk lines of business, continue to be low. We were extremely disappointed that an issue arose with a large lending relationship in discontinued operations which resulted in a third quarter loss. The results of the third quarter reflected a fair value mark in connection with a secured commercial real estate loan held in discontinued operations. That loan, in the principal amount of $41.9 million, became non-performing after quarter end due to the failure to make required principal payments. Based on a preliminary estimate of the collateral value by an independent certified appraiser, the fair value was reduced by $23.9 million and that amount was recorded as a charge to earnings. The appraisal estimate is preliminary, possibly subject to change based upon a full appraisal which is in process. The appraiser is considering recent market changes and pending lease renewals."
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 28, 2016 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 96088598. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, November 4, 2016 by dialing 855.859.2056, access code 96088598.
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.
2
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
3
|
The Bancorp, Inc.
|
||||||||||||||||
|
Financial highlights
|
||||||||||||||||
|
(unaudited)
|
||||||||||||||||
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
Condensed income statement
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
(dollars in thousands except per share data)
|
||||||||||||||||
|
Net interest income
|
$
|
23,542
|
$
|
17,798
|
$
|
64,988
|
$
|
51,349
|
||||||||
|
Provision for loan and lease losses
|
750
|
625
|
1,810
|
1,800
|
||||||||||||
|
Non-interest income
|
||||||||||||||||
|
Service fees on deposit accounts
|
1,510
|
1,919
|
3,335
|
5,579
|
||||||||||||
|
Card payment and ACH processing fees
|
1,459
|
1,493
|
4,183
|
4,242
|
||||||||||||
|
Prepaid card fees
|
12,249
|
11,492
|
39,333
|
35,752
|
||||||||||||
|
Gain (loss) on sale of loans
|
903
|
(830
|
)
|
809
|
6,747
|
|||||||||||
|
Gain on sale of investment securities
|
981
|
(335
|
)
|
3,131
|
(62
|
)
|
||||||||||
|
Change in value of investment in unconsolidated entity
|
811
|
1,040
|
(12,313
|
)
|
3,141
|
|||||||||||
|
Leasing income
|
588
|
552
|
1,456
|
1,727
|
||||||||||||
|
Debit card income
|
(45
|
)
|
427
|
(202
|
)
|
1,358
|
||||||||||
|
Affinity fees
|
1,091
|
1,083
|
3,507
|
2,391
|
||||||||||||
|
Other non-interest income
|
886
|
458
|
5,422
|
1,925
|
||||||||||||
|
Total non-interest income
|
20,433
|
17,299
|
48,661
|
62,800
|
||||||||||||
|
Non-interest expense
|
||||||||||||||||
|
Bank Secrecy Act and lookback consulting expenses
|
1,340
|
11,687
|
29,076
|
26,643
|
||||||||||||
|
Other non-interest expense
|
43,370
|
36,108
|
127,908
|
108,446
|
||||||||||||
|
Total non-interest expense
|
44,710
|
47,795
|
156,984
|
135,089
|
||||||||||||
|
Loss from continuing operations before income tax expense
|
(1,485
|
)
|
(13,323
|
)
|
(45,145
|
)
|
(22,740
|
)
|
||||||||
|
Income tax expense (benefit)
|
55
|
(5,706
|
)
|
(15,324
|
)
|
(10,817
|
)
|
|||||||||
|
Net loss from continuing operations
|
(1,540
|
)
|
(7,617
|
)
|
(29,821
|
)
|
(11,923
|
)
|
||||||||
|
Net income (loss) from discontinued operations, net of tax
|
(23,993
|
)
|
2,042
|
(37,984
|
)
|
6,736
|
||||||||||
|
Net loss available to common shareholders
|
$
|
(25,533
|
)
|
$
|
(5,575
|
)
|
$
|
(67,805
|
)
|
$
|
(5,187
|
)
|
||||
|
Net loss per share from continuing operations - basic
|
$
|
(0.03
|
)
|
$
|
(0.20
|
)
|
$
|
(0.73
|
)
|
$
|
(0.32
|
)
|
||||
|
Net income (loss) per share from discontinued operations - basic
|
$
|
(0.51
|
)
|
$
|
0.05
|
$
|
(0.93
|
)
|
$
|
0.18
|
||||||
|
Net loss per share - basic
|
$
|
(0.54
|
)
|
$
|
(0.15
|
)
|
$
|
(1.66
|
)
|
$
|
(0.14
|
)
|
||||
|
Net loss per share from continuing operations - diluted
|
$
|
(0.03
|
)
|
$
|
(0.20
|
)
|
$
|
(0.73
|
)
|
$
|
(0.32
|
)
|
||||
|
Net income (loss) per share from discontinued operations - diluted
|
$
|
(0.51
|
)
|
$
|
0.05
|
$
|
(0.93
|
)
|
$
|
0.18
|
||||||
|
Net loss per share - diluted
|
$
|
(0.54
|
)
|
$
|
(0.15
|
)
|
$
|
(1.66
|
)
|
$
|
(0.14
|
)
|
||||
|
Common stock shares outstanding
|
55,319,204
|
37,758,322
|
55,319,204
|
37,758,322
|
||||||||||||
|
(a) For loss periods the weighted averages shares - basic is used in both the basic and diluted computations.
|
||||||||||||||||
4
|
Balance sheet
|
September 30,
|
June 30,
|
December 31,
|
September 30,
|
||||||||||||
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
Assets:
|
||||||||||||||||
|
Cash and cash equivalents
|
||||||||||||||||
|
Cash and due from banks
|
$
|
4,061
|
$
|
4,006
|
$
|
7,643
|
$
|
4,002
|
||||||||
|
Interest earning deposits at Federal Reserve Bank
|
312,605
|
528,094
|
1,147,519
|
995,441
|
||||||||||||
|
Securities sold under agreements to resell
|
39,463
|
39,360
|
-
|
37,970
|
||||||||||||
|
Total cash and cash equivalents
|
356,129
|
571,460
|
1,155,162
|
1,037,413
|
||||||||||||
|
Investment securities, available-for-sale, at fair value
|
1,334,927
|
1,328,693
|
1,070,098
|
1,316,705
|
||||||||||||
|
Investment securities, held-to-maturity
|
93,495
|
93,537
|
93,590
|
93,604
|
||||||||||||
|
Loans held for sale, at fair value
|
562,957
|
441,593
|
489,938
|
354,600
|
||||||||||||
|
Loans, net of deferred fees and costs
|
1,198,237
|
1,182,106
|
1,078,077
|
994,518
|
||||||||||||
|
Allowance for loan and lease losses
|
(6,058
|
)
|
(5,398
|
)
|
(4,400
|
)
|
(4,194
|
)
|
||||||||
|
Loans, net
|
1,192,179
|
1,176,708
|
1,073,677
|
990,324
|
||||||||||||
|
Federal Home Loan Bank & Atlantic Community Bancshares stock
|
11,014
|
12,289
|
1,062
|
1,063
|
||||||||||||
|
Premises and equipment, net
|
21,797
|
22,429
|
21,631
|
18,893
|
||||||||||||
|
Accrued interest receivable
|
10,496
|
10,271
|
9,471
|
11,232
|
||||||||||||
|
Intangible assets, net
|
5,682
|
6,074
|
4,929
|
5,248
|
||||||||||||
|
Deferred tax asset, net
|
29,765
|
28,870
|
36,207
|
33,857
|
||||||||||||
|
Investment in unconsolidated entity
|
157,396
|
162,275
|
178,520
|
186,656
|
||||||||||||
|
Assets held for sale from discontinued operations
|
386,155
|
487,373
|
583,909
|
611,729
|
||||||||||||
|
Other assets
|
55,435
|
60,203
|
47,629
|
53,123
|
||||||||||||
|
Total assets
|
$
|
4,217,427
|
$
|
4,401,775
|
$
|
4,765,823
|
$
|
4,714,447
|
||||||||
|
Liabilities:
|
||||||||||||||||
|
Deposits
|
||||||||||||||||
|
Demand and interest checking
|
$
|
3,364,103
|
$
|
3,569,669
|
$
|
3,602,376
|
$
|
4,002,638
|
||||||||
|
Savings and money market
|
402,832
|
389,851
|
383,832
|
376,577
|
||||||||||||
|
Time deposits
|
-
|
101,160
|
428,549
|
-
|
||||||||||||
|
Total deposits
|
3,766,935
|
4,060,680
|
4,414,757
|
4,379,215
|
||||||||||||
|
Securities sold under agreements to repurchase
|
353
|
318
|
925
|
1,034
|
||||||||||||
|
Short-term borrowings
|
70,000
|
-
|
-
|
-
|
||||||||||||
|
Subordinated debenture
|
13,401
|
13,401
|
13,401
|
13,401
|
||||||||||||
|
Other liabilities
|
27,744
|
37,094
|
16,739
|
7,100
|
||||||||||||
|
Total liabilities
|
$
|
3,878,433
|
$
|
4,111,493
|
$
|
4,445,822
|
$
|
4,400,750
|
||||||||
|
Shareholders' equity:
|
||||||||||||||||
|
Common stock - authorized, 75,000,000 shares of $1.00 par value; 55,419,204 and 37,858,237 shares issued at September 30, 2016 and 2015, respectively
|
55,419
|
37,945
|
37,861
|
37,858
|
||||||||||||
|
Treasury stock (100,000 shares)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
||||||||
|
Additional paid-in capital
|
359,793
|
301,680
|
300,549
|
299,470
|
||||||||||||
|
Accumulated deficit
|
(83,253
|
)
|
(57,721
|
)
|
(15,449
|
)
|
(33,429
|
)
|
||||||||
|
Accumulated other comprehensive income (loss)
|
7,901
|
9,244
|
(2,094
|
)
|
10,664
|
|||||||||||
|
Total shareholders' equity
|
338,994
|
290,282
|
320,001
|
313,697
|
||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
4,217,427
|
$
|
4,401,775
|
$
|
4,765,823
|
$
|
4,714,447
|
||||||||
5
|
Average balance sheet and net interest income
|
Three months ended September 30, 2016
|
Three months ended September 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 **
|
$
|
1,661,807
|
$
|
17,425
|
4.19
|
%
|
$
|
1,292,533
|
$
|
12,466
|
3.86
|
%
|
||||||||||||
|
Leases - bank qualified*
|
21,006
|
418
|
7.96
|
%
|
30,091
|
530
|
7.05
|
%
|
||||||||||||||||
|
Investment securities-taxable
|
1,373,776
|
8,350
|
2.43
|
%
|
940,590
|
4,562
|
1.94
|
%
|
||||||||||||||||
|
Investment securities-nontaxable*
|
48,683
|
218
|
1.79
|
%
|
518,691
|
4,765
|
3.67
|
%
|
||||||||||||||||
|
Interest earning deposits at Federal Reserve Bank
|
324,179
|
397
|
0.49
|
%
|
957,078
|
580
|
0.24
|
%
|
||||||||||||||||
|
Federal funds sold and securities purchased under agreement to resell
|
39,392
|
146
|
1.48
|
%
|
40,705
|
143
|
1.41
|
%
|
||||||||||||||||
|
Net interest earning assets
|
3,468,843
|
26,954
|
3.11
|
%
|
3,779,688
|
23,046
|
2.44
|
%
|
||||||||||||||||
|
Allowance for loan and lease losses
|
(5,267
|
)
|
(4,385
|
)
|
||||||||||||||||||||
|
Assets held for sale from discontinued operations
|
459,400
|
3,891
|
3.39
|
%
|
627,806
|
6,343
|
4.04
|
%
|
||||||||||||||||
|
Other assets
|
259,375
|
286,839
|
||||||||||||||||||||||
|
$
|
4,182,351
|
$
|
4,689,948
|
|||||||||||||||||||||
|
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Demand and interest checking
|
$
|
3,249,801
|
$
|
2,379
|
0.29
|
%
|
$
|
3,998,798
|
$
|
2,850
|
0.29
|
%
|
||||||||||||
|
Savings and money market
|
392,045
|
423
|
0.43
|
%
|
337,793
|
426
|
0.50
|
%
|
||||||||||||||||
|
Time
|
76,931
|
104
|
0.54
|
%
|
410
|
1
|
0.98
|
%
|
||||||||||||||||
|
Total deposits
|
3,718,777
|
2,906
|
0.31
|
%
|
4,337,001
|
3,277
|
0.30
|
%
|
||||||||||||||||
|
Short-term borrowings
|
102,243
|
153
|
0.60
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
|
Repurchase agreements
|
376
|
-
|
0.00
|
%
|
1,606
|
1
|
0.25
|
%
|
||||||||||||||||
|
Subordinated debt
|
13,401
|
131
|
3.91
|
%
|
13,401
|
117
|
3.49
|
%
|
||||||||||||||||
|
Total deposits and interest bearing liabilities
|
3,834,797
|
3,190
|
0.33
|
%
|
4,352,008
|
3,395
|
0.31
|
%
|
||||||||||||||||
|
Other liabilities
|
19,670
|
12,957
|
||||||||||||||||||||||
|
Total liabilities
|
3,854,467
|
4,364,965
|
||||||||||||||||||||||
|
Shareholders' equity
|
327,884
|
324,983
|
||||||||||||||||||||||
|
$
|
4,182,351
|
$
|
4,689,948
|
|||||||||||||||||||||
|
Net interest income on tax equivalent basis*
|
$
|
27,655
|
$
|
25,994
|
||||||||||||||||||||
|
Tax equivalent adjustment
|
222
|
1,853
|
||||||||||||||||||||||
|
Net interest income
|
$
|
27,433
|
$
|
24,141
|
||||||||||||||||||||
|
Net interest margin *
|
2.69
|
%
|
2.34
|
%
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
* Full taxable equivalent basis, using a 35% statutory tax rate.
|
||||||||||||||||||||||||
|
** Includes loans held for sale.
|
||||||||||||||||||||||||
6
|
Average balance sheet and net interest income
|
Nine months ended September 30, 2016
|
Nine months ended September 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 **
|
$
|
1,543,448
|
$
|
48,061
|
4.15
|
%
|
$
|
1,192,939
|
$
|
34,231
|
3.83
|
%
|
||||||||||||
|
Leases - bank qualified*
|
20,618
|
1,334
|
8.63
|
%
|
23,936
|
1,247
|
6.95
|
%
|
||||||||||||||||
|
Investment securities-taxable
|
1,280,692
|
22,782
|
2.37
|
%
|
983,557
|
14,628
|
1.98
|
%
|
||||||||||||||||
|
Investment securities-nontaxable*
|
59,892
|
983
|
2.19
|
%
|
524,913
|
14,443
|
3.67
|
%
|
||||||||||||||||
|
Interest earning deposits at Federal Reserve Bank
|
490,037
|
1,677
|
0.46
|
%
|
1,001,027
|
1,759
|
0.23
|
%
|
||||||||||||||||
|
Federal funds sold and securities purchased under agreement to resell
|
27,414
|
301
|
1.46
|
%
|
43,724
|
465
|
1.42
|
%
|
||||||||||||||||
|
Net interest-earning assets
|
3,422,101
|
75,138
|
2.93
|
%
|
3,770,096
|
66,773
|
2.36
|
%
|
||||||||||||||||
|
Allowance for loan and lease losses
|
(4,538
|
)
|
(4,089
|
)
|
||||||||||||||||||||
|
Assets held for sale
|
528,168
|
15,037
|
3.80
|
%
|
743,594
|
22,275
|
3.99
|
%
|
||||||||||||||||
|
Other assets
|
291,973
|
293,561
|
||||||||||||||||||||||
|
$
|
4,237,704
|
$
|
4,803,162
|
|||||||||||||||||||||
|
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Demand and interest checking
|
$
|
3,325,047
|
$
|
7,217
|
0.29
|
%
|
$
|
4,122,409
|
$
|
8,293
|
0.27
|
%
|
||||||||||||
|
Savings and money market
|
390,202
|
1,028
|
0.35
|
%
|
323,307
|
1,286
|
0.53
|
%
|
||||||||||||||||
|
Time
|
103,624
|
447
|
0.58
|
%
|
1,066
|
12
|
1.50
|
%
|
||||||||||||||||
|
Total deposits
|
3,818,873
|
8,692
|
0.30
|
%
|
4,446,782
|
9,591
|
0.29
|
%
|
||||||||||||||||
|
Short-term borrowings
|
58,056
|
263
|
0.60
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
|
Repurchase agreements
|
812
|
1
|
0.16
|
%
|
6,598
|
14
|
0.28
|
%
|
||||||||||||||||
|
Subordinated debt
|
13,401
|
383
|
3.81
|
%
|
13,401
|
328
|
3.26
|
%
|
||||||||||||||||
|
Total deposits and interest bearing liabilities
|
3,891,142
|
9,339
|
0.32
|
%
|
4,466,781
|
9,933
|
0.30
|
%
|
||||||||||||||||
|
Other liabilities
|
21,306
|
9,702
|
||||||||||||||||||||||
|
Total liabilities
|
3,912,448
|
4,476,483
|
||||||||||||||||||||||
|
Shareholders' equity
|
325,256
|
326,679
|
||||||||||||||||||||||
|
$
|
4,237,704
|
$
|
4,803,162
|
|||||||||||||||||||||
|
Net interest income on tax equivalent basis*
|
80,836
|
79,115
|
||||||||||||||||||||||
|
Tax equivalent adjustment
|
811
|
5,491
|
||||||||||||||||||||||
|
Net interest income
|
$
|
80,025
|
$
|
73,624
|
||||||||||||||||||||
|
Net interest margin *
|
2.57
|
%
|
2.32
|
%
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
* Full taxable equivalent basis, using a 35% statutory tax rate.
|
||||||||||||||||||||||||
|
** Includes loans held for sale.
|
||||||||||||||||||||||||
7
|
Allowance for loan and lease losses:
|
Nine months ended
|
Year ended
|
||||||||||||||
|
September 30,
|
September 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
|
|||||||||||||
|
SBA commercial mortgage
|
76
|
-
|
-
|
|||||||||||||
|
Direct lease financing
|
63
|
9
|
30
|
|||||||||||||
|
Other consumer loans
|
39
|
1,177
|
1,220
|
|||||||||||||
|
Total
|
178
|
1,251
|
1,361
|
|||||||||||||
|
Recoveries:
|
||||||||||||||||
|
SBA non real estate
|
1
|
-
|
-
|
|||||||||||||
|
Direct lease financing
|
17
|
-
|
-
|
|||||||||||||
|
Other consumer loans
|
8
|
7
|
23
|
|||||||||||||
|
Total
|
26
|
7
|
23
|
|||||||||||||
|
Net charge-offs
|
152
|
1,244
|
1,338
|
|||||||||||||
|
Provision charged to operations
|
1,810
|
1,800
|
2,100
|
|||||||||||||
|
Balance in allowance for loan and lease losses at end of period
|
$
|
6,058
|
$
|
4,194
|
$
|
4,400
|
||||||||||
|
Net charge-offs/average loans
|
0.01
|
%
|
0.10
|
%
|
0.11
|
%
|
||||||||||
|
Net charge-offs/average loans (annualized)
|
0.01
|
%
|
0.14
|
%
|
0.11
|
%
|
||||||||||
|
Net charge-offs/average assets
|
0.00
|
%
|
0.03
|
%
|
0.03
|
%
|
||||||||||
|
(1) Excludes activity from assets held for sale
|
||||||||||||||||
|
Loan portfolio:
|
September 30,
|
June 30,
|
December 31,
|
September 30,
|
||||||||||||
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
SBA non real estate
|
$
|
74,262
|
$
|
71,596
|
$
|
68,887
|
$
|
64,988
|
||||||||
|
SBA commercial mortgage
|
117,053
|
116,617
|
114,029
|
116,545
|
||||||||||||
|
SBA construction
|
6,317
|
3,751
|
6,977
|
5,191
|
||||||||||||
|
Total SBA loans
|
197,632
|
191,964
|
189,893
|
186,724
|
||||||||||||
|
Direct lease financing
|
332,632
|
315,639
|
231,514
|
223,929
|
||||||||||||
|
SBLOC
|
621,456
|
607,017
|
575,948
|
539,240
|
||||||||||||
|
Other specialty lending
|
20,076
|
40,543
|
48,315
|
12,119
|
||||||||||||
|
Other consumer loans
|
19,375
|
20,005
|
23,180
|
23,502
|
||||||||||||
|
1,191,171
|
1,175,168
|
1,068,850
|
985,514
|
|||||||||||||
|
Unamortized loan fees and costs
|
7,066
|
6,938
|
9,227
|
9,004
|
||||||||||||
|
Total loans, net of deferred loan fees and costs
|
$
|
1,198,237
|
$
|
1,182,106
|
$
|
1,078,077
|
$
|
994,518
|
||||||||
|
Small business lending portfolio:
|
September 30,
|
June 30,
|
December 31,
|
September 30,
|
||||||||||||
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||
|
(dollars in thousands)
|
||||||||||||||||
|
SBA loans, including deferred fees and costs
|
203,196
|
197,544
|
197,966
|
194,612
|
||||||||||||
|
SBA loans included in HFS
|
146,450
|
136,660
|
109,174
|
86,245
|
||||||||||||
|
Total SBA loans
|
$
|
349,646
|
$
|
334,204
|
$
|
307,140
|
$
|
280,857
|
||||||||
8
|
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 September 30, 2016
|
||||||||||||||||
|
The Bancorp, Inc.
|
7.81
|
%
|
15.12
|
%
|
15.40
|
%
|
15.12
|
%
|
||||||||
|
The Bancorp Bank
|
7.41
|
%
|
14.56
|
%
|
14.83
|
%
|
14.56
|
%
|
||||||||
|
"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
|
Nine months ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
Selected operating ratios:
|
||||||||||||||||
|
Return on average assets (annualized)
|
nm
|
nm
|
nm
|
nm
|
||||||||||||
|
Return on average equity (annualized)
|
nm
|
nm
|
nm
|
nm
|
||||||||||||
|
Net interest margin
|
2.69
|
%
|
2.34
|
%
|
2.57
|
%
|
2.32
|
%
|
||||||||
|
Book value per share
|
$
|
6.13
|
$
|
8.31
|
$
|
6.13
|
$
|
8.31
|
||||||||
|
September 30,
|
June 30,
|
December 31,
|
September 30,
|
|||||||||||||
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||
|
Asset quality ratios:
|
||||||||||||||||
|
Nonperforming loans to total loans (2)
|
0.58
|
%
|
0.53
|
%
|
0.22
|
%
|
0.25
|
%
|
||||||||
|
Nonperforming assets to total assets (2)
|
0.16
|
%
|
0.14
|
%
|
0.05
|
%
|
0.05
|
%
|
||||||||
|
Allowance for loan and lease losses to total loans
|
0.51
|
%
|
0.46
|
%
|
0.41
|
%
|
0.42
|
%
|
||||||||
|
Nonaccrual loans
|
$
|
4,021
|
$
|
3,147
|
$
|
1,927
|
$
|
2,157
|
||||||||
|
Other real estate owned
|
-
|
-
|
-
|
-
|
||||||||||||
|
Total nonperforming assets
|
$
|
4,021
|
$
|
3,147
|
$
|
1,927
|
$
|
2,157
|
||||||||
|
Loans 90 days past due still accruing interest
|
$
|
2,933
|
$
|
3,172
|
$
|
403
|
$
|
294
|
||||||||
|
(2) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.
|
||||||||||||||||
|
Three months ended
|
||||||||||||||||
|
September 30,
|
June 30,
|
December 31,
|
September 30,
|
|||||||||||||
|
2016
|
2016
|
2015
|
2015
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Gross dollar volume (GDV) (1):
|
||||||||||||||||
|
Prepaid card GDV
|
$
|
10,459,097
|
$
|
11,442,294
|
$
|
9,839,782
|
$
|
9,465,687
|
||||||||
|
(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp.
|
||||||||||||||||
9
|
Cumulative Analysis of Marks on Discontinued Commercial Loan Principal
|
||||||||||||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||
|
Commercial
|
Mark
|
|||||||||||||||||||||||
|
Loan Principal
|
Cumulative
|
Chargedowns
|
Cumulative
|
|||||||||||||||||||||
|
9.30.16
|
Marks
|
6.30.16
|
Marks
|
% to Principal
|
||||||||||||||||||||
|
16 Largest relationships
|
$
|
248
|
$
|
248
|
||||||||||||||||||||
|
Add back mark chargedowns to principal
|
35
|
|||||||||||||||||||||||
|
Total principal to compare to cumulative marks
|
$
|
283
|
$
|
38
|
$
|
35
|
$
|
73
|
26
|
%
|
||||||||||||||
|
Other loans
|
92
|
7
|
-
|
7
|
8
|
%
|
||||||||||||||||||
|
Total discontinued loan principal
|
$
|
340
|
$
|
45
|
$
|
35
|
$
|
80
|
||||||||||||||||
10