Delaware
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23-3016517
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(State or other jurisdiction of
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(IRS Employer
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incorporation)
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Identification No.)
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Exhibit No.
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Description
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EX-99.1
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The Bancorp, Inc.
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Date: July 26, 2018
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By:
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/s/Paul Frenkiel
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Paul Frenkiel
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Chief Financial Officer and Secretary
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· |
Pretax income from continuing operations increased 9% to $8.4 million for the quarter ended June 30, 2018 compared to $7.7 million for the quarter ended June 30, 2017.
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· |
Net interest income increased 9% to $29.5 million for the quarter ended June 30, 2018, compared to $27.2 million for the quarter ended June 30, 2017.
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· |
Interest income on security backed lines of credit (“SBLOC”) loans increased 43% to $7.4 million for the quarter ended June 30, 2018, compared to $5.2 million for the quarter ended June 30, 2017.
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· |
Net interest margin increased to 3.11% for the quarter ended June 30, 2018, compared to 3.10% for the quarter ended June 30, 2017.
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· |
Total prepaid and other payments revenue for the quarter ended June 30, 2018 increased to $16.1 million, or 9%, compared to the quarter ended June 30, 2017. Of that total, prepaid fees for the quarter ended June 30, 2018 increased to $14.1 million, or 6%, and card payment and ACH processing fees increased to $2.0 million, or 34% compared to the quarter ended June 30, 2017, respectively.
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· |
Loans increased 10% to $1.51 billion at June 30, 2018, compared to $1.37 billion at June 30, 2017.
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· |
SBLOC loans increased 11% to $795.8 million at June 30, 2018, compared to $718.7 million at June 30, 2017.
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· |
Small Business Administration (“SBA”) loans increased 17% to $439.5 million at June 30, 2018, compared to $376.6 million at June 30, 2017.
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· |
Direct lease financing increased 5% to $389.4 million at June 30, 2018, compared to $370.6 million at June 30, 2017.
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· |
The rate on $3.96 billion of average deposits and interest-bearing liabilities in the second quarter of 2018 was 0.59% with a rate of 0.8% for $2.14 billion of average prepaid card deposits.
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· |
Consolidated leverage ratio was 8.06% at June 30, 2018. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.
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· |
Book value per common share at June 30, 2018 was $5.91 per share.
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The Bancorp, Inc.
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||||||||||||||||
Financial highlights
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three months ended
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Six months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
Condensed income statement
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2018
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2017
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2018
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2017
|
||||||||||||
(dollars in thousands except per share data)
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||||||||||||||||
Net interest income
|
$
|
29,534
|
$
|
27,215
|
$
|
59,608
|
$
|
52,092
|
||||||||
Provision for loan and lease losses
|
900
|
350
|
1,600
|
1,350
|
||||||||||||
Non-interest income
|
||||||||||||||||
Service fees on deposit accounts
|
1,646
|
1,520
|
3,222
|
3,195
|
||||||||||||
Card payment and ACH processing fees
|
2,014
|
1,504
|
3,706
|
3,032
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||||||||||||
Prepaid card fees
|
14,073
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13,234
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28,355
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26,781
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||||||||||||
Gain (loss) on sale of loans
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(454
|
)
|
758
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11,275
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6,141
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|||||||||||
Gain on sale of investment securities
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-
|
586
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26
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1,089
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||||||||||||
Change in value of investment in unconsolidated entity
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(1,732
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)
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3
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(2,903
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)
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(16
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)
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|||||||||
Leasing income
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1,108
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832
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1,595
|
1,383
|
||||||||||||
Affinity fees
|
85
|
149
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187
|
1,170
|
||||||||||||
Gain on sale of health savings accounts
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-
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2,538
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-
|
2,538
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||||||||||||
Loss from sale of European prepaid card operations
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-
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(3,437
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)
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-
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(3,437
|
)
|
||||||||||
Other non-interest income
|
300
|
486
|
672
|
516
|
||||||||||||
Total non-interest income
|
17,040
|
18,173
|
46,135
|
42,392
|
||||||||||||
Non-interest expense
|
||||||||||||||||
Salaries and employee benefits
|
18,897
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18,108
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39,970
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36,114
|
||||||||||||
Data processing expense
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1,356
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2,641
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3,361
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6,121
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||||||||||||
Legal expense
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1,770
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1,427
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4,201
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3,165
|
||||||||||||
FDIC Insurance
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2,929
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3,458
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5,148
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5,523
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||||||||||||
Software
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2,995
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3,012
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6,286
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6,240
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||||||||||||
Losses and write downs on other real estate owned
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-
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19
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45
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19
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||||||||||||
Civil money penalty
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-
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-
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(290
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)
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-
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|||||||||||
Lease termination expense
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395
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-
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395
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-
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||||||||||||
Other non-interest expense
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8,968
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8,698
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17,243
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17,964
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||||||||||||
Total non-interest expense
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37,310
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37,363
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76,359
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75,146
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||||||||||||
Income from continuing operations before income taxes
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8,364
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7,675
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27,784
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17,988
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||||||||||||
Income tax expense (benefit)
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2,209
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(9,923
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)
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7,608
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(5,912
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)
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||||||||||
Net income from continuing operations
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6,155
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17,598
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20,176
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23,900
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||||||||||||
Discontinued operations
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||||||||||||||||
Income (loss) from discontinued operations before income taxes
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(50
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)
|
1,992
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106
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4,659
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|||||||||||
Income tax expense (benefit)
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(36
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)
|
726
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1
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1,732
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|||||||||||
Net income (loss) from discontinued operations, net of tax
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(14
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)
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1,266
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105
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2,927
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|||||||||||
Net income available to common shareholders
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$
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6,141
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$
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18,864
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$
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20,281
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$
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26,827
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||||||||
Net income per share from continuing operations - basic
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$
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0.11
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$
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0.32
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$
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0.36
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$
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0.43
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||||||||
Net income per share from discontinued operations - basic
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$
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-
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$
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0.02
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$
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-
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$
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0.05
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||||||||
Net income per share - basic
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$
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0.11
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$
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0.34
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$
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0.36
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$
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0.48
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||||||||
Net income per share from continuing operations - diluted
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$
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0.11
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$
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0.32
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$
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0.36
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$
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0.43
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||||||||
Net income per share from discontinued operations - diluted
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$
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-
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$
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0.02
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$
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-
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$
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0.05
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||||||||
Net income per share - diluted
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$
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0.11
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$
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0.34
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$
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0.36
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$
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0.48
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||||||||
Weighted average shares - basic
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56,340,816
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55,689,439
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56,241,873
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55,612,288
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||||||||||||
Weighted average shares - diluted
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57,141,219
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56,030,035
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57,083,297
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55,889,985
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Balance sheet
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June 30,
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March 31,
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December 31,
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June 30,
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||||||||||||
2018
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2018
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2017
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2017
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|||||||||||||
(dollars in thousands)
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||||||||||||||||
Assets:
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||||||||||||||||
Cash and cash equivalents
|
||||||||||||||||
Cash and due from banks
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$
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3,052
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$
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1,999
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$
|
3,152
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$
|
6,458
|
||||||||
Interest earning deposits at Federal Reserve Bank
|
373,782
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508,847
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841,471
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475,387
|
||||||||||||
Securities sold under agreements to resell
|
64,216
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64,312
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64,312
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65,076
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||||||||||||
Total cash and cash equivalents
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441,050
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575,158
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908,935
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546,921
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||||||||||||
Investment securities, available-for-sale, at fair value
|
1,305,494
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1,381,020
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1,294,484
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1,149,116
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||||||||||||
Investment securities, held-to-maturity
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86,354
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86,370
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86,380
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93,419
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||||||||||||
Loans held for sale, at fair value
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447,997
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349,806
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503,316
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542,819
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||||||||||||
Loans, net of deferred fees and costs
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1,506,812
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1,463,064
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1,392,228
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1,370,263
|
||||||||||||
Allowance for loan and lease losses
|
(8,014
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)
|
(7,285
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)
|
(7,096
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)
|
(7,353
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)
|
||||||||
Loans, net
|
1,498,798
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1,455,779
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1,385,132
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1,362,910
|
||||||||||||
Federal Home Loan Bank & Atlantic Community Bancshares stock
|
1,113
|
991
|
991
|
6,211
|
||||||||||||
Premises and equipment, net
|
18,275
|
19,052
|
20,051
|
22,004
|
||||||||||||
Accrued interest receivable
|
11,810
|
11,778
|
10,900
|
10,880
|
||||||||||||
Intangible assets, net
|
4,612
|
4,995
|
5,377
|
5,515
|
||||||||||||
Other real estate owned
|
405
|
405
|
450
|
-
|
||||||||||||
Deferred tax asset, net
|
39,779
|
38,139
|
34,802
|
53,226
|
||||||||||||
Investment in unconsolidated entity
|
67,994
|
70,016
|
74,473
|
120,862
|
||||||||||||
Assets held for sale from discontinued operations
|
241,694
|
289,038
|
304,313
|
336,246
|
||||||||||||
Other assets
|
56,499
|
86,553
|
78,543
|
53,888
|
||||||||||||
Total assets
|
$
|
4,221,874
|
$
|
4,369,100
|
$
|
4,708,147
|
$
|
4,304,017
|
||||||||
Liabilities:
|
||||||||||||||||
Deposits
|
||||||||||||||||
Demand and interest checking
|
$
|
3,287,682
|
$
|
3,461,881
|
$
|
3,806,965
|
$
|
3,437,482
|
||||||||
Savings and money market
|
511,598
|
493,288
|
453,877
|
438,602
|
||||||||||||
Total deposits
|
3,799,280
|
3,955,169
|
4,260,842
|
3,876,084
|
||||||||||||
Securities sold under agreements to repurchase
|
161
|
182
|
217
|
273
|
||||||||||||
Subordinated debenture
|
13,401
|
13,401
|
13,401
|
13,401
|
||||||||||||
Long-term borrowings
|
42,000
|
42,157
|
42,323
|
42,680
|
||||||||||||
Other liabilities
|
34,485
|
28,299
|
67,215
|
40,560
|
||||||||||||
Total liabilities
|
$
|
3,889,327
|
$
|
4,039,208
|
$
|
4,383,998
|
$
|
3,972,998
|
||||||||
Shareholders' equity:
|
||||||||||||||||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,410,525 and 55,757,559 shares issued at June 30, 2018 and 2017, respectively
|
56,411
|
56,307
|
55,861
|
55,858
|
||||||||||||
Treasury stock (100,000 shares)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
||||||||
Additional paid-in capital
|
364,460
|
363,605
|
363,196
|
361,478
|
||||||||||||
Accumulated deficit
|
(69,213
|
)
|
(75,345
|
)
|
(89,485
|
)
|
(85,114
|
)
|
||||||||
Accumulated other comprehensive loss
|
(18,245
|
)
|
(13,809
|
)
|
(4,557
|
)
|
(337
|
)
|
||||||||
Total shareholders' equity
|
332,547
|
329,892
|
324,149
|
331,019
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
4,221,874
|
$
|
4,369,100
|
$
|
4,708,147
|
$
|
4,304,017
|
||||||||
Average balance sheet and net interest income
|
Three months ended June 30, 2018
|
Three months ended June 30, 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 **
|
$
|
1,828,398
|
$
|
21,704
|
4.75
|
%
|
$
|
1,770,226
|
$
|
19,748
|
4.46
|
%
|
||||||||||||
Leases - bank qualified*
|
20,214
|
337
|
6.67
|
%
|
21,539
|
415
|
7.71
|
%
|
||||||||||||||||
Investment securities-taxable
|
1,435,598
|
10,770
|
3.00
|
%
|
1,249,890
|
9,138
|
2.92
|
%
|
||||||||||||||||
Investment securities-nontaxable*
|
8,702
|
63
|
2.90
|
%
|
14,632
|
107
|
2.93
|
%
|
||||||||||||||||
Interest earning deposits at Federal Reserve Bank
|
458,695
|
2,095
|
1.83
|
%
|
480,417
|
1,255
|
1.04
|
%
|
||||||||||||||||
Federal funds sold and securities purchased under agreement to resell
|
64,300
|
475
|
2.95
|
%
|
65,355
|
333
|
2.04
|
%
|
||||||||||||||||
Net interest earning assets
|
3,815,907
|
35,444
|
3.72
|
%
|
3,602,059
|
30,996
|
3.44
|
%
|
||||||||||||||||
Allowance for loan and lease losses
|
(7,168
|
)
|
(7,190
|
)
|
||||||||||||||||||||
Assets held for sale from discontinued operations
|
281,476
|
2,066
|
2.94
|
%
|
348,452
|
3,135
|
3.60
|
%
|
||||||||||||||||
Other assets
|
212,397
|
274,335
|
||||||||||||||||||||||
$
|
4,302,612
|
$
|
4,217,656
|
|||||||||||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand and interest checking
|
$
|
3,439,265
|
$
|
5,022
|
0.58
|
%
|
$
|
3,437,845
|
$
|
2,912
|
0.34
|
%
|
||||||||||||
Savings and money market
|
502,783
|
617
|
0.49
|
%
|
434,792
|
520
|
0.48
|
%
|
||||||||||||||||
Total deposits
|
3,942,048
|
5,639
|
0.57
|
%
|
3,872,637
|
3,432
|
0.35
|
%
|
||||||||||||||||
Short-term borrowings
|
1,648
|
9
|
2.18
|
%
|
6,516
|
22
|
1.35
|
%
|
||||||||||||||||
Securities sold under agreements to repurchase
|
171
|
-
|
0.00
|
%
|
273
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
13,401
|
178
|
5.31
|
%
|
13,401
|
144
|
4.30
|
%
|
||||||||||||||||
Total deposits and liabilities
|
3,957,268
|
5,826
|
0.59
|
%
|
3,892,827
|
3,598
|
0.37
|
%
|
||||||||||||||||
Other liabilities
|
14,124
|
4,434
|
||||||||||||||||||||||
Total liabilities
|
3,971,392
|
3,897,261
|
||||||||||||||||||||||
Shareholders' equity
|
331,220
|
320,395
|
||||||||||||||||||||||
$
|
4,302,612
|
$
|
4,217,656
|
|||||||||||||||||||||
Net interest income on tax equivalent basis*
|
$
|
31,684
|
$
|
30,533
|
||||||||||||||||||||
Tax equivalent adjustment
|
84
|
183
|
||||||||||||||||||||||
Net interest income
|
$
|
31,600
|
$
|
30,350
|
||||||||||||||||||||
Net interest margin *
|
3.11
|
%
|
3.10
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
* Full taxable equivalent basis, using a statutory rate of 21% for 2018 and 35% for 2017, respectively.
|
||||||||||||||||||||||||
** Includes loans held for sale.
|
Average balance sheet and net interest income
|
Six months ended June 30, 2018
|
Six months ended June 30, 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 **
|
$
|
1,887,511
|
$
|
44,743
|
4.74
|
%
|
$
|
1,700,508
|
$
|
37,119
|
4.37
|
%
|
||||||||||||
Leases - bank qualified*
|
20,623
|
671
|
6.51
|
%
|
21,361
|
811
|
7.59
|
%
|
||||||||||||||||
Investment securities-taxable
|
1,405,749
|
20,469
|
2.91
|
%
|
1,287,360
|
18,143
|
2.82
|
%
|
||||||||||||||||
Investment securities-nontaxable*
|
9,294
|
138
|
2.97
|
%
|
15,025
|
218
|
2.90
|
%
|
||||||||||||||||
Interest earning deposits at Federal Reserve Bank
|
480,343
|
3,927
|
1.64
|
%
|
616,345
|
2,771
|
0.90
|
%
|
||||||||||||||||
Federal funds sold and securities purchased under agreement to resell
|
64,258
|
889
|
2.77
|
%
|
57,635
|
560
|
1.94
|
%
|
||||||||||||||||
Net interest earning assets
|
3,867,778
|
70,837
|
3.66
|
%
|
3,698,234
|
59,622
|
3.22
|
%
|
||||||||||||||||
Allowance for loan and lease losses
|
(7,076
|
)
|
(6,708
|
)
|
||||||||||||||||||||
Assets held for sale from discontinued operations
|
288,050
|
4,593
|
3.19
|
%
|
340,900
|
6,496
|
3.81
|
%
|
||||||||||||||||
Other assets
|
199,981
|
285,428
|
||||||||||||||||||||||
$
|
4,348,733
|
$
|
4,317,854
|
|||||||||||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand and interest checking
|
$
|
3,487,205
|
$
|
9,323
|
0.53
|
%
|
$
|
3,547,820
|
$
|
5,699
|
0.32
|
%
|
||||||||||||
Savings and money market
|
495,124
|
1,285
|
0.52
|
%
|
432,267
|
1,167
|
0.54
|
%
|
||||||||||||||||
Total deposits
|
3,982,329
|
10,608
|
0.53
|
%
|
3,980,087
|
6,866
|
0.35
|
%
|
||||||||||||||||
Short-term borrowings
|
13,182
|
113
|
1.71
|
%
|
3,276
|
22
|
1.34
|
%
|
||||||||||||||||
Securities sold under agreements to repurchase
|
188
|
-
|
0.00
|
%
|
274
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
13,401
|
338
|
5.04
|
%
|
13,401
|
282
|
4.21
|
%
|
||||||||||||||||
Total deposits and liabilities
|
4,009,100
|
11,059
|
0.55
|
%
|
3,997,038
|
7,170
|
0.36
|
%
|
||||||||||||||||
Other liabilities
|
11,285
|
5,824
|
||||||||||||||||||||||
Total liabilities
|
4,020,385
|
4,002,862
|
||||||||||||||||||||||
Shareholders' equity
|
328,348
|
314,992
|
||||||||||||||||||||||
$
|
4,348,733
|
$
|
4,317,854
|
|||||||||||||||||||||
Net interest income on tax equivalent basis*
|
$
|
64,371
|
$
|
58,948
|
||||||||||||||||||||
Tax equivalent adjustment
|
170
|
360
|
||||||||||||||||||||||
Net interest income
|
$
|
64,201
|
$
|
58,588
|
||||||||||||||||||||
Net interest margin *
|
3.11
|
%
|
2.90
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
* Full taxable equivalent basis, using a statutory rate of 21% for 2018 and 35% for 2017.
|
||||||||||||||||||||||||
** Includes loans held for sale.
|
Allowance for loan and lease losses:
|
Six months ended
|
Year ended
|
||||||||||||||
June 30,
|
June 30,
|
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
|
136
|
1,171
|
|||||||||||||
SBA commercial mortgage
|
157
|
-
|
-
|
|||||||||||||
Direct lease financing
|
244
|
202
|
926
|
|||||||||||||
Other consumer loans
|
15
|
16
|
110
|
|||||||||||||
Total
|
804
|
354
|
2,207
|
|||||||||||||
Recoveries:
|
||||||||||||||||
SBA non-real estate
|
47
|
2
|
18
|
|||||||||||||
SBA commercial mortgage
|
11
|
-
|
-
|
|||||||||||||
Direct lease financing
|
64
|
-
|
7
|
|||||||||||||
Other consumer loans
|
-
|
23
|
26
|
|||||||||||||
Total
|
122
|
25
|
51
|
|||||||||||||
Net charge-offs
|
682
|
329
|
2,156
|
|||||||||||||
Provision charged to operations
|
1,600
|
1,350
|
2,920
|
|||||||||||||
Balance in allowance for loan and lease losses at end of period
|
$
|
8,014
|
$
|
7,353
|
$
|
7,096
|
||||||||||
Net charge-offs/average loans
|
0.04
|
%
|
0.02
|
%
|
0.12
|
%
|
||||||||||
Net charge-offs/average loans (annualized)
|
0.07
|
%
|
0.04
|
%
|
0.12
|
%
|
||||||||||
Net charge-offs/average assets
|
0.02
|
%
|
0.01
|
%
|
0.05
|
%
|
||||||||||
(1) Excludes activity from assets held for sale from discontinued operations.
|
||||||||||||||||
Loan portfolio:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
2018
|
2018
|
2017
|
2017
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
SBA non-real estate
|
$
|
75,141
|
$
|
75,225
|
$
|
70,379
|
$
|
73,476
|
||||||||
SBA commercial mortgage
|
156,268
|
149,227
|
142,086
|
126,224
|
||||||||||||
SBA construction
|
17,781
|
20,143
|
16,740
|
11,057
|
||||||||||||
Total SBA loans
|
249,190
|
244,595
|
229,205
|
210,757
|
||||||||||||
Direct lease financing
|
389,387
|
385,467
|
377,660
|
370,556
|
||||||||||||
SBLOC
|
795,823
|
759,369
|
730,462
|
718,707
|
||||||||||||
Other specialty lending
|
48,253
|
45,729
|
30,720
|
44,389
|
||||||||||||
Other consumer loans
|
13,174
|
17,416
|
14,133
|
15,858
|
||||||||||||
1,495,827
|
1,452,576
|
1,382,180
|
1,360,267
|
|||||||||||||
Unamortized loan fees and costs
|
10,985
|
10,488
|
10,048
|
9,996
|
||||||||||||
Total loans, net of deferred loan fees and costs
|
$
|
1,506,812
|
$
|
1,463,064
|
$
|
1,392,228
|
$
|
1,370,263
|
||||||||
Small business lending portfolio:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
2018
|
2018
|
2017
|
2017
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
SBA loans, including deferred fees and costs
|
257,412
|
252,457
|
236,724
|
218,253
|
||||||||||||
SBA loans included in HFS
|
182,072
|
172,030
|
165,177
|
158,389
|
||||||||||||
Total SBA loans
|
$
|
439,484
|
$
|
424,487
|
$
|
401,901
|
$
|
376,642
|
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, 2018
|
||||||||||||||||
The Bancorp, Inc.
|
8.06
|
%
|
18.60
|
%
|
19.02
|
%
|
18.60
|
%
|
||||||||
The Bancorp Bank
|
7.69
|
%
|
18.11
|
%
|
18.54
|
%
|
18.11
|
%
|
||||||||
"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
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Selected operating ratios:
|
||||||||||||||||
Return on average assets (1)
|
0.57
|
%
|
1.79
|
%
|
0.94
|
%
|
1.25
|
%
|
||||||||
Return on average equity (1)
|
7.44
|
%
|
23.62
|
%
|
12.46
|
%
|
17.17
|
%
|
||||||||
Net interest margin
|
3.11
|
%
|
3.10
|
%
|
3.11
|
%
|
2.90
|
%
|
||||||||
Book value per share
|
-
|
-
|
$
|
5.91
|
$
|
5.94
|
||||||||||
(1) Annualized
|
||||||||||||||||
June 30,
|
March 31,
|
December 31,
|
June 30,
|
|||||||||||||
2018
|
2018
|
2017
|
2017
|
|||||||||||||
Nonperforming loans to total loans (2)
|
0.42
|
%
|
0.42
|
%
|
0.30
|
%
|
0.41
|
%
|
||||||||
Nonperforming assets to total assets (2)
|
0.16
|
%
|
0.15
|
%
|
0.10
|
%
|
0.13
|
%
|
||||||||
Allowance for loan and lease losses to total loans
|
0.53
|
%
|
0.50
|
%
|
0.51
|
%
|
0.54
|
%
|
||||||||
Nonaccrual loans
|
$
|
4,915
|
$
|
3,516
|
$
|
3,996
|
$
|
5,115
|
||||||||
Other real estate owned
|
405
|
405
|
450
|
104
|
||||||||||||
Total nonperforming assets
|
$
|
5,320
|
$
|
3,921
|
$
|
4,446
|
$
|
5,219
|
||||||||
Loans 90 days past due still accruing interest
|
$
|
1,458
|
$
|
2,643
|
$
|
227
|
$
|
494
|
||||||||
(2) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.
|
||||||||||||||||
Three months ended
|
||||||||||||||||
June 30,
|
March 31,
|
December 31,
|
June 30,
|
|||||||||||||
2018
|
2017
|
2017
|
2017
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Gross dollar volume (GDV) (3):
|
||||||||||||||||
Prepaid card GDV
|
$
|
12,799,531
|
$
|
13,402,496
|
$
|
10,963,456
|
$
|
11,894,601
|
||||||||
(3) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp.
|
Business line quarterly summary:
|
||||||||||||||||||||||||
Quarter ended June 30, 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
|
||||||||||||||||||
Loans
|
||||||||||||||||||||||||
Institutional banking **
|
3.8
|
%
|
$
|
796
|
11
|
%
|
19
|
%
|
$
|
1.6
|
nm
|
|||||||||||||
SBA
|
5.2
|
%
|
439
|
17
|
%
|
14
|
%
|
-
|
-
|
|||||||||||||||
Leasing
|
6.1
|
%
|
389
|
5
|
%
|
4
|
%
|
1.1
|
33
|
%
|
||||||||||||||
Commercial real estate securitization ***
|
5.6
|
%
|
266
|
nm
|
nm
|
-
|
nm
|
|||||||||||||||||
Weighted average yield
|
4.8
|
%
|
$
|
1,890
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Payment solutions (primarily prepaid)
|
0.8
|
%
|
$
|
2,138
|
4
|
%
|
-4
|
%
|
$
|
14.1
|
6
|
%
|
||||||||||||
Card payment and ACH processing
|
0.4
|
%
|
905
|
3
|
%
|
1
|
%
|
2.0
|
34
|
%
|
||||||||||||||
* Loan categories based on period end balance and deposit categories based on average quarterly balances.
|
||||||||||||||||||||||||
** Includes SBLOC loans; includes safe harbor individual retirement fee income prior to sale.
|
||||||||||||||||||||||||
*** Balances reflect timing of related sales.
|
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 - 2017
|
(42
|
)
|
(42
|
)
|
||||
2018 Marks
|
(3
|
)
|
(3
|
)
|
||||
Payments received
|
(80
|
)
|
||||||
June 30, 2018 Bancorp book value**
|
$
|
68
|
||||||
Total marks
|
$
|
(103
|
)
|
|||||
Divided by:
|
||||||||
Original Walnut Street loan balance
|
$
|
267
|
||||||
Percentage of total mark to original balance
|
39
|
%
|
||||||
* Walnut Street is the “investment in unconsolidated entity” on the balance sheet and is comprised of notes from the sale of certain loans from the discontinued loan portfolio to a third party.
|
||||||||
** Approximately 47% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of June 30, 2018.
|
||||||||
Walnut Street portfolio composition as of June 30, 2018
|
||||||||
Collateral type
|
% of Portfolio
|
|||||||
Commercial real estate non-owner occupied
|
||||||||
Retail
|
47.4
|
%
|
||||||
Office
|
12.7
|
%
|
||||||
Other
|
4.4
|
%
|
||||||
Construction and land
|
23.4
|
%
|
||||||
Commercial non real estate and industrial
|
1.3
|
%
|
||||||
First mortgage residential owner occupied
|
5.6
|
%
|
||||||
First mortgage residential non-owner occupied
|
4.4
|
%
|
||||||
Other
|
0.8
|
%
|
||||||
Total
|
100.0
|
%
|
Cumulative analysis of marks on discontinued commercial loan principal as of June 30, 2018
|
|||||||||
Discontinued
|
Cumulative
|
% to original
|
|||||||
loan principal
|
marks
|
principal
|
|||||||
(dollars in millions)
|
|||||||||
Commercial loan discontinued principal before marks
|
$
|
167
|
$
|
-
|
|||||
Florida mall held in discontinued other real estate owned
|
42
|
27
|
|||||||
Previous mark charges
|
10
|
10
|
|||||||
Commercial loan mark at June 30, 2018
|
-
|
14
|
|||||||
Total
|
$
|
219
|
$
|
51
|
23%
|
Analysis of discontinued commercial loan relationships as of June 30, 2018
|
||||||||||||||||||||||||
Performing
|
Nonperforming
|
Total
|
Performing
|
Nonperforming
|
Total
|
|||||||||||||||||||
loan principal
|
loan principal
|
loan principal
|
loan marks
|
loan marks
|
marks
|
|||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||
7 loan relationships > $8 million
|
$
|
82
|
$
|
25
|
$
|
107
|
$
|
4
|
$
|
-
|
$
|
4
|
||||||||||||
Loan relationships < $8 million
|
37
|
9
|
46
|
4
|
6
|
10
|
||||||||||||||||||
$
|
119
|
$
|
34
|
$
|
153
|
$
|
8
|
$
|
6
|
$
|
14
|
Quarterly activity for discontinued commercial loan principal
|
||||
Commercial
|
||||
loan principal
|
||||
(in millions)
|
||||
Commercial loan discontinued principal March 31, 2018 before marks
|
$
|
210
|
||
Quarterly paydowns
|
(41
|
)
|
||
Quarterly charge downs
|
(2
|
)
|
||
Commercial loan discontinued principal June 30, 2018 before marks
|
$
|
167
|
||
Mark June 30, 2018
|
(14
|
)
|
||
Net commercial loan exposure June 30, 2018
|
$
|
153
|
||
Residential mortgages
|
57
|
|||
Net loans
|
$
|
210
|
||
Florida mall in other real estate owned
|
15
|
|||
Other 25 properties in other real estate owned
|
16
|
|||
Other assets related to discontinued operations
|
1
|
|||
Total discontinued assets at June 30, 2018
|
$
|
242
|
Discontinued commercial loan composition June 30, 2018
|
||||||||||||
Collateral type
|
Unpaid
principal
balance
|
Mark June 30, 2018
|
Mark as %
of portfolio
|
|||||||||
(dollars in millions)
|
||||||||||||
Commercial real estate - non-owner occupied:
|
||||||||||||
Retail
|
$
|
10
|
$
|
0.7
|
6
|
%
|
||||||
Office
|
8
|
0.7
|
9
|
%
|
||||||||
Other
|
41
|
0.6
|
1
|
%
|
||||||||
Construction and land
|
43
|
1.2
|
3
|
%
|
||||||||
Commercial non-real estate and industrial
|
12
|
1.6
|
13
|
%
|
||||||||
1 to 4 family construction
|
25
|
4.7
|
19
|
%
|
||||||||
First mortgage residential non-owner occupied
|
17
|
4.5
|
27
|
%
|
||||||||
Commercial real estate owner occupied:
|
||||||||||||
Retail
|
9
|
0.3
|
-
|
|||||||||
Office
|
-
|
-
|
-
|
|||||||||
Other
|
-
|
-
|
-
|
|||||||||
Residential junior mortgage
|
1
|
-
|
-
|
|||||||||
Other
|
1
|
-
|
-
|
|||||||||
Total
|
$
|
167
|
||||||||||
Less: mark
|
(14
|
)
|
||||||||||
Net commercial loan exposure June 30, 2018
|
$
|
153
|
$
|
14.3
|
9
|
%
|