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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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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||
Common Stock, par value $1.00 per share
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TBBK
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Nasdaq Global Select
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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 25, 2019
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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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• |
Reported earnings per share for the quarter ended June 30, 2019 were $0.20, compared to $0.11 for the quarter ended June 30, 2018, an increase of 82%. Adjusted diluted earnings per share increased to $0.21 for
the quarter ended June 30, 2019, after consideration of the $0.01 impact of a $908,000 lease termination expense, which will yield $2.2 million of future savings.
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• |
Net income increased to $11.4 million for the quarter ended June 30, 2019, compared to $6.1 million for the quarter ended June 30, 2018, an increase of 85%.
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• |
Net interest margin increased to 3.41% for the quarter ended June 30, 2019, compared to 3.11% for the quarter ended June 30, 2018.
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• |
Net interest income increased 17% to $34.5 million for the quarter ended June 30, 2019, compared to $29.5 million for the quarter ended June 30, 2018.
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• |
Average loans and leases, including loans held for sale, increased 21% to $2.23 billion for the quarter ended June 30, 2019, compared to $1.85 billion for the quarter ended June 30, 2018.
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• |
Prepaid card and related fees increased 13% to $15.8 million for the quarter ended June 30, 2019, compared to $14.1 million for the quarter ended June 30, 2018.
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• |
ACH (Automated Clearing House), card and other payment processing fees increased 18%, to $2.5 million for the quarter ended June 30, 2019, compared to $2.1 million for the quarter ended June 30, 2018.
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• |
Small Business Administration (“SBA”) loans, including those held-for-sale, increased 18% to $516 million at June 30, 2019, compared to $439 million at June 30, 2018.
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• |
Linked quarter loan growth for SBA, security backed lines of credit (SBLOC) and leasing, respectively, was 5%, 6% and 6%; or 19%, 23% and 24% on an annualized basis.
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• |
The rate on $3.9 billion of average deposits and interest-bearing liabilities in the second quarter of 2019 was 0.96%. Average prepaid card deposits of $2.5 billion for second quarter 2019, reflected an increase of 17% over the
average of $2.1 billion for the quarter ended June 30, 2018.
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• |
Consolidated leverage ratio was 10.04% at June 30, 2019. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.
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• |
Book value per common share at June 30, 2019 was $8.07 per share from $5.91 a year earlier, an increase of 37%.
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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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2019
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2018
|
2019
|
2018
|
||||||||||||
(dollars in thousands except per share data)
|
||||||||||||||||
Net interest income
|
$
|
34,539
|
$
|
29,534
|
$
|
68,549
|
$
|
59,608
|
||||||||
Provision for loan and lease losses
|
600
|
900
|
2,300
|
1,600
|
||||||||||||
Non-interest income
|
||||||||||||||||
Service fees on deposit accounts
|
14
|
1,646
|
61
|
3,222
|
||||||||||||
ACH, card and other payment processing fees
|
2,521
|
2,142
|
4,824
|
3,994
|
||||||||||||
Prepaid card and related fees
|
15,840
|
14,073
|
32,003
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28,355
|
||||||||||||
Net realized and unrealized gains (losses) on commercial
|
||||||||||||||||
loans originated for sale
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(148
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)
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(454
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)
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10,615
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11,275
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||||||||||
Change in value of investment in unconsolidated entity
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-
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(1,732
|
)
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-
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(2,903
|
)
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||||||||||
Leasing income
|
1,027
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1,108
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1,722
|
1,595
|
||||||||||||
Affinity fees
|
-
|
85
|
-
|
187
|
||||||||||||
Other non-interest income
|
495
|
172
|
889
|
410
|
||||||||||||
Total non-interest income
|
19,749
|
17,040
|
50,114
|
46,135
|
||||||||||||
Non-interest expense
|
||||||||||||||||
Salaries and employee benefits
|
21,826
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18,897
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45,666
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39,970
|
||||||||||||
Data processing expense
|
1,223
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1,356
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2,492
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3,361
|
||||||||||||
Legal expense
|
1,534
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1,770
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2,858
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4,201
|
||||||||||||
FDIC Insurance
|
2,095
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2,929
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4,024
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5,148
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||||||||||||
Software
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3,060
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2,995
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5,981
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6,286
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||||||||||||
Civil money penalty
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-
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-
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-
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(290
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)
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|||||||||||
Lease termination expense
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908
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395
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908
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395
|
||||||||||||
Other non-interest expense
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8,873
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8,968
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16,819
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17,288
|
||||||||||||
Total non-interest expense
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39,519
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37,310
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78,748
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76,359
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||||||||||||
Income from continuing operations before income taxes
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14,169
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8,364
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37,615
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27,784
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||||||||||||
Income tax expense
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3,575
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2,209
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9,610
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7,608
|
||||||||||||
Net income from continuing operations
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10,594
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6,155
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28,005
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20,176
|
||||||||||||
Discontinued operations
|
||||||||||||||||
Income (loss) from discontinued operations before income taxes
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919
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(50
|
)
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1,724
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106
|
|||||||||||
Income tax expense (benefit)
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163
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(36
|
)
|
449
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1
|
|||||||||||
Net income (loss) from discontinued operations, net of tax
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756
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(14
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)
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1,275
|
105
|
|||||||||||
Net income
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$
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11,350
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$
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6,141
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$
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29,280
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$
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20,281
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||||||||
Net income per share from continuing operations - basic
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$
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0.19
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$
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0.11
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$
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0.50
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$
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0.36
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||||||||
Net income per share from discontinued operations - basic
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$
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0.01
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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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||||||||
Net income per share - basic
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$
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0.20
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$
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0.11
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$
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0.52
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$
|
0.36
|
||||||||
Net income per share from continuing operations - diluted
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$
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0.19
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$
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0.11
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$
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0.49
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$
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0.36
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||||||||
Net income per share from discontinued operations - diluted
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$
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0.01
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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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||||||||
Net income per share - diluted
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$
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0.20
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$
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0.11
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$
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0.51
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$
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0.36
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||||||||
Weighted average shares - basic
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56,702,182
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56,340,816
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56,612,596
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56,241,873
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||||||||||||
Weighted average shares - diluted
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57,197,433
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57,141,219
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57,031,206
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57,083,297
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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,
|
||||||||||||
2019
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2019
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2018
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2018
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Cash and cash equivalents
|
||||||||||||||||
Cash and due from banks
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$
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27,450
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$
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11,678
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$
|
2,440
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$
|
3,052
|
||||||||
Interest earning deposits at Federal Reserve Bank
|
284,823
|
714,514
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551,862
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373,782
|
||||||||||||
Securities sold under agreements to resell
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-
|
-
|
-
|
64,216
|
||||||||||||
Total cash and cash equivalents
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312,273
|
726,192
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554,302
|
441,050
|
||||||||||||
Investment securities, available-for-sale, at fair value
|
1,361,779
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1,368,602
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1,236,324
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1,305,494
|
||||||||||||
Investment securities, held-to-maturity
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84,414
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84,428
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84,432
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86,354
|
||||||||||||
Commercial loans held for sale, at fair value
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934,452
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570,426
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688,471
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447,997
|
||||||||||||
Loans, net of deferred fees and costs
|
1,561,451
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1,510,395
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1,501,976
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1,503,828
|
||||||||||||
Allowance for loan and lease losses
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(9,989
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)
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(9,954
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)
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(8,653
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)
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(8,014
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)
|
||||||||
Loans, net
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1,551,462
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1,500,441
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1,493,323
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1,495,814
|
||||||||||||
Federal Home Loan Bank & Atlantic Community Bancshares stock
|
6,342
|
1,113
|
1,113
|
1,113
|
||||||||||||
Premises and equipment, net
|
17,380
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18,056
|
18,895
|
18,275
|
||||||||||||
Accrued interest receivable
|
14,567
|
13,907
|
12,753
|
11,810
|
||||||||||||
Intangible assets, net
|
3,081
|
3,463
|
3,846
|
4,612
|
||||||||||||
Other real estate owned
|
-
|
-
|
-
|
405
|
||||||||||||
Deferred tax asset, net
|
14,574
|
18,423
|
21,622
|
39,779
|
||||||||||||
Investment in unconsolidated entity
|
58,012
|
58,258
|
59,273
|
67,994
|
||||||||||||
Assets held for sale from discontinued operations
|
169,109
|
188,025
|
197,831
|
241,694
|
||||||||||||
Other assets
|
76,123
|
75,642
|
65,726
|
59,483
|
||||||||||||
Total assets
|
$
|
4,603,568
|
$
|
4,626,976
|
$
|
4,437,911
|
$
|
4,221,874
|
||||||||
Liabilities:
|
||||||||||||||||
Deposits
|
||||||||||||||||
Demand and interest checking
|
$
|
3,964,905
|
$
|
3,993,828
|
$
|
3,904,638
|
$
|
3,287,682
|
||||||||
Savings and money market
|
26,841
|
31,470
|
31,076
|
511,598
|
||||||||||||
Total deposits
|
3,991,746
|
4,025,298
|
3,935,714
|
3,799,280
|
||||||||||||
Securities sold under agreements to repurchase
|
93
|
93
|
93
|
161
|
||||||||||||
Short-term borrowings
|
45,000
|
-
|
-
|
-
|
||||||||||||
Subordinated debenture
|
13,401
|
13,401
|
13,401
|
13,401
|
||||||||||||
Long-term borrowings
|
41,334
|
41,499
|
41,674
|
42,000
|
||||||||||||
Other liabilities
|
53,862
|
111,905
|
40,253
|
34,485
|
||||||||||||
Total liabilities
|
$
|
4,145,436
|
$
|
4,192,196
|
$
|
4,031,135
|
$
|
3,889,327
|
||||||||
Shareholders' equity:
|
||||||||||||||||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,874,956 and 56,410,525 shares issued and outstanding at June 30, 2019 and 2018, respectively
|
56,875
|
56,568
|
56,446
|
56,411
|
||||||||||||
Treasury stock (100,000 shares)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
||||||||
Additional paid-in capital
|
368,771
|
367,483
|
366,181
|
364,460
|
||||||||||||
Accumulated earnings (deficit)
|
28,463
|
17,113
|
(817
|
)
|
(69,213
|
)
|
||||||||||
Accumulated other comprehensive income (loss)
|
4,889
|
(5,518
|
)
|
(14,168
|
)
|
(18,245
|
)
|
|||||||||
Total shareholders' equity
|
458,132
|
434,780
|
406,776
|
332,547
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
4,603,568
|
$
|
4,626,976
|
$
|
4,437,911
|
$
|
4,221,874
|
Average balance sheet and net interest income
|
Three months ended June 30, 2019
|
Three months ended June 30, 2018
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Assets:
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans net of deferred fees and costs **
|
$
|
2,216,935
|
$
|
29,737
|
5.37
|
%
|
$
|
1,828,398
|
$
|
21,704
|
4.75
|
%
|
||||||||||||
Leases - bank qualified*
|
15,446
|
268
|
6.94
|
%
|
20,214
|
337
|
6.67
|
%
|
||||||||||||||||
Investment securities-taxable
|
1,443,671
|
11,634
|
3.22
|
%
|
1,435,598
|
10,770
|
3.00
|
%
|
||||||||||||||||
Investment securities-nontaxable*
|
6,610
|
54
|
3.27
|
%
|
8,702
|
63
|
2.90
|
%
|
||||||||||||||||
Interest earning deposits at Federal Reserve Bank
|
420,153
|
2,455
|
2.34
|
%
|
458,695
|
2,095
|
1.83
|
%
|
||||||||||||||||
Federal funds sold and securities purchased under agreement to resell
|
-
|
-
|
-
|
64,300
|
475
|
2.95
|
%
|
|||||||||||||||||
Net interest earning assets
|
4,102,815
|
44,148
|
4.30
|
%
|
3,815,907
|
35,444
|
3.72
|
%
|
||||||||||||||||
Allowance for loan and lease losses
|
(9,963
|
)
|
(7,168
|
)
|
||||||||||||||||||||
Loans held for sale from discontinued operations
|
154,057
|
1,659
|
4.31
|
%
|
281,476
|
2,066
|
2.94
|
%
|
||||||||||||||||
Other assets
|
283,036
|
212,397
|
||||||||||||||||||||||
$
|
4,529,945
|
$
|
4,302,612
|
|||||||||||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand and interest checking
|
$
|
3,847,623
|
$
|
8,783
|
0.91
|
%
|
$
|
3,439,265
|
$
|
5,022
|
0.58
|
%
|
||||||||||||
Savings and money market
|
26,497
|
40
|
0.60
|
%
|
502,783
|
617
|
0.49
|
%
|
||||||||||||||||
Total deposits
|
3,874,120
|
8,823
|
0.91
|
%
|
3,942,048
|
5,639
|
0.57
|
%
|
||||||||||||||||
Short-term borrowings
|
80,242
|
526
|
2.62
|
%
|
1,648
|
9
|
2.18
|
%
|
||||||||||||||||
Securities sold under agreements to repurchase
|
92
|
-
|
0.00
|
%
|
171
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
13,401
|
192
|
5.73
|
%
|
13,401
|
178
|
5.31
|
%
|
||||||||||||||||
Total deposits and liabilities
|
3,967,855
|
9,541
|
0.96
|
%
|
3,957,268
|
5,826
|
0.59
|
%
|
||||||||||||||||
Other liabilities
|
115,634
|
14,124
|
||||||||||||||||||||||
Total liabilities
|
4,083,489
|
3,971,392
|
||||||||||||||||||||||
Shareholders' equity
|
446,456
|
331,220
|
||||||||||||||||||||||
$
|
4,529,945
|
$
|
4,302,612
|
|||||||||||||||||||||
Net interest income on tax equivalent basis*
|
$
|
36,266
|
$
|
31,684
|
||||||||||||||||||||
Tax equivalent adjustment
|
68
|
84
|
||||||||||||||||||||||
Net interest income
|
$
|
36,198
|
$
|
31,600
|
||||||||||||||||||||
Net interest margin *
|
3.41
|
%
|
3.11
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
* Full taxable equivalent basis, using a statutory rate of 21% for 2019 and 2018.
|
||||||||||||||||||||||||
** Includes loans held for sale.
|
Average balance sheet and net interest income
|
Six months ended June 30, 2019
|
Six months ended June 30, 2018
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Assets:
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans net of deferred fees and costs **
|
$
|
2,241,746
|
$
|
59,898
|
5.34
|
%
|
$
|
1,887,511
|
$
|
44,743
|
4.74
|
%
|
||||||||||||
Leases - bank qualified*
|
16,613
|
695
|
8.37
|
%
|
20,623
|
671
|
6.51
|
%
|
||||||||||||||||
Investment securities-taxable
|
1,374,019
|
22,164
|
3.23
|
%
|
1,405,749
|
20,469
|
2.91
|
%
|
||||||||||||||||
Investment securities-nontaxable*
|
7,075
|
114
|
3.22
|
%
|
9,294
|
138
|
2.97
|
%
|
||||||||||||||||
Interest earning deposits at Federal Reserve Bank
|
421,580
|
4,957
|
2.35
|
%
|
480,343
|
3,927
|
1.64
|
%
|
||||||||||||||||
Federal funds sold and securities purchased under agreement to resell
|
-
|
-
|
-
|
64,258
|
889
|
2.77
|
%
|
|||||||||||||||||
Net interest earning assets
|
4,061,033
|
87,828
|
4.33
|
%
|
3,867,778
|
70,837
|
3.66
|
%
|
||||||||||||||||
Allowance for loan and lease losses
|
(9,305
|
)
|
(7,076
|
)
|
||||||||||||||||||||
Loans held for sale from discontinued operations
|
163,874
|
3,684
|
4.50
|
%
|
288,050
|
4,593
|
3.19
|
%
|
||||||||||||||||
Other assets
|
272,922
|
199,981
|
||||||||||||||||||||||
$
|
4,488,524
|
$
|
4,348,733
|
|||||||||||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand and interest checking
|
$
|
3,838,868
|
$
|
17,616
|
0.92
|
%
|
$
|
3,487,205
|
$
|
9,323
|
0.53
|
%
|
||||||||||||
Savings and money market
|
28,931
|
77
|
0.53
|
%
|
495,124
|
1,285
|
0.52
|
%
|
||||||||||||||||
Total deposits
|
3,867,799
|
17,693
|
0.91
|
%
|
3,982,329
|
10,608
|
0.53
|
%
|
||||||||||||||||
Short-term borrowings
|
77,330
|
1,029
|
2.66
|
%
|
13,182
|
113
|
1.71
|
%
|
||||||||||||||||
Securities sold under agreements to repurchase
|
91
|
-
|
0.00
|
%
|
188
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
13,401
|
387
|
5.78
|
%
|
13,401
|
338
|
5.04
|
%
|
||||||||||||||||
Total deposits and liabilities
|
3,958,621
|
19,109
|
0.97
|
%
|
4,009,100
|
11,059
|
0.55
|
%
|
||||||||||||||||
Other liabilities
|
97,449
|
11,285
|
||||||||||||||||||||||
Total liabilities
|
4,056,070
|
4,020,385
|
||||||||||||||||||||||
Shareholders' equity
|
432,454
|
328,348
|
||||||||||||||||||||||
$
|
4,488,524
|
$
|
4,348,733
|
|||||||||||||||||||||
Net interest income on tax equivalent basis*
|
$
|
72,403
|
$
|
64,371
|
||||||||||||||||||||
Tax equivalent adjustment
|
170
|
170
|
||||||||||||||||||||||
Net interest income
|
$
|
72,233
|
$
|
64,201
|
||||||||||||||||||||
Net interest margin *
|
3.43
|
%
|
3.11
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
* Full taxable equivalent basis, using a statutory rate of 21% for 2019 and 2018.
|
||||||||||||||||||||||||
** Includes loans held for sale.
|
Allowance for loan and lease losses:
|
Six months ended
|
Year ended
|
||||||||||||||
June 30,
|
June 30,
|
December 31,
|
||||||||||||||
2019
|
2018
|
2018
|
||||||||||||||
(dollars in thousands)
|
||||||||||||||||
Balance in the allowance for loan and lease losses at beginning of period (1)
|
$
|
8,653
|
$
|
7,096
|
$
|
7,096
|
||||||||||
Loans charged-off:
|
||||||||||||||||
SBA non-real estate
|
893
|
388
|
1,348
|
|||||||||||||
SBA commercial mortgage
|
-
|
157
|
157
|
|||||||||||||
Direct lease financing
|
185
|
244
|
637
|
|||||||||||||
Other consumer loans
|
2
|
15
|
21
|
|||||||||||||
Total
|
1,080
|
804
|
2,163
|
|||||||||||||
Recoveries:
|
||||||||||||||||
SBA non-real estate
|
100
|
47
|
57
|
|||||||||||||
SBA commercial mortgage
|
-
|
11
|
13
|
|||||||||||||
Direct lease financing
|
16
|
64
|
64
|
|||||||||||||
Other consumer loans
|
-
|
-
|
1
|
|||||||||||||
Total
|
116
|
122
|
135
|
|||||||||||||
Net charge-offs
|
964
|
682
|
2,028
|
|||||||||||||
Provision charged to operations
|
2,300
|
1,600
|
3,585
|
|||||||||||||
Balance in allowance for loan and lease losses at end of period
|
$
|
9,989
|
$
|
8,014
|
$
|
8,653
|
||||||||||
Net charge-offs/average loans
|
0.04
|
%
|
0.04
|
%
|
0.10
|
%
|
||||||||||
Net charge-offs/average loans (annualized)
|
0.09
|
%
|
0.07
|
%
|
0.10
|
%
|
||||||||||
Net charge-offs/average assets
|
0.02
|
%
|
0.02
|
%
|
0.05
|
%
|
||||||||||
(1) Excludes activity from assets held for sale from discontinued operations.
|
||||||||||||||||
Loan portfolio:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
2019
|
2019
|
2018
|
2018
|
|||||||||||||
(in thousands)
|
||||||||||||||||
SBA non-real estate
|
$
|
75,475
|
$
|
76,112
|
$
|
76,340
|
$
|
75,141
|
||||||||
SBA commercial mortgage
|
189,427
|
179,397
|
165,406
|
156,268
|
||||||||||||
SBA construction
|
29,298
|
23,979
|
21,636
|
17,781
|
||||||||||||
Total SBA loans
|
294,200
|
279,488
|
263,382
|
249,190
|
||||||||||||
Direct lease financing
|
407,907
|
384,930
|
394,770
|
386,403
|
||||||||||||
SBLOC / IBLOC*
|
837,672
|
791,986
|
785,303
|
795,823
|
||||||||||||
Other specialty lending
|
3,432
|
34,425
|
31,836
|
48,253
|
||||||||||||
Other consumer loans
|
7,898
|
9,301
|
16,302
|
13,174
|
||||||||||||
1,551,109
|
1,500,130
|
1,491,593
|
1,492,843
|
|||||||||||||
Unamortized loan fees and costs
|
10,342
|
10,265
|
10,383
|
10,985
|
||||||||||||
Total loans, net of deferred fees and costs
|
$
|
1,561,451
|
$
|
1,510,395
|
$
|
1,501,976
|
$
|
1,503,828
|
||||||||
* Securities Backed Lines of Credit (SBLOC), are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC), are collateralized by the cash
surrender value of insurance policies.
|
||||||||||||||||
Small business lending portfolio:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||||||||||
2019
|
2019
|
2018
|
2018
|
|||||||||||||
(in thousands)
|
||||||||||||||||
SBA loans, including deferred fees and costs
|
301,502
|
286,814
|
270,860
|
257,412
|
||||||||||||
SBA loans included in held-for-sale
|
215,064
|
206,901
|
199,977
|
182,072
|
||||||||||||
Total SBA loans
|
$
|
516,566
|
$
|
493,715
|
$
|
470,837
|
$
|
439,484
|
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, 2019
|
|||||||
The Bancorp, Inc.
|
10.04%
|
20.57%
|
21.03%
|
20.57%
|
|||
The Bancorp Bank
|
9.76%
|
20.16%
|
20.62%
|
20.16%
|
|||
"Well capitalized" institution (under FDIC regulations)
|
5.00%
|
8.00%
|
10.00%
|
6.50%
|
|||
As of December 31, 2018
|
|||||||
The Bancorp, Inc.
|
10.11%
|
20.64%
|
21.07%
|
20.64%
|
|||
The Bancorp Bank
|
9.70%
|
20.18%
|
20.61%
|
20.18%
|
|||
"Well capitalized" institution (under FDIC regulations)
|
5.00%
|
8.00%
|
10.00%
|
6.50%
|
Three months ended
|
Six months ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2019
|
2018
|
2019
|
2018
|
|||||
Selected operating ratios:
|
||||||||
Return on average assets (1)
|
1.00%
|
0.57%
|
1.32%
|
0.94%
|
||||
Return on average equity (1)
|
10.20%
|
7.44%
|
13.65%
|
12.46%
|
||||
Net interest margin
|
3.41%
|
3.11%
|
3.43%
|
3.11%
|
||||
(1) Annualized
|
||||||||
Book value per share table:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||
2019
|
2019
|
2018
|
2018
|
|||||
Book value per share
|
$ 8.07
|
$ 7.70
|
$ 7.22
|
$ 5.91
|
||||
Loan quality table:
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
||||
2019
|
2019
|
2018
|
2018
|
|||||
Nonperforming loans to total loans
|
0.57%
|
0.55%
|
0.36%
|
0.42%
|
||||
Nonperforming assets to total assets
|
0.19%
|
0.18%
|
0.12%
|
0.16%
|
||||
Allowance for loan and lease losses to total loans
|
0.64%
|
0.66%
|
0.58%
|
0.53%
|
||||
Nonaccrual loans
|
$ 6,456
|
$ 5,863
|
$ 4,516
|
$ 4,915
|
||||
Loans 90 days past due still accruing interest
|
2,373
|
2,483
|
954
|
1,459
|
||||
Other real estate owned
|
-
|
-
|
-
|
405
|
||||
Total nonperforming assets
|
$ 8,829
|
$ 8,346
|
$ 5,470
|
$ 6,779
|
||||
Three months ended
|
||||||||
June 30,
|
March 31,
|
December 31,
|
June 30,
|
|||||
2019
|
2019
|
2018
|
2018
|
|||||
(in thousands)
|
||||||||
Gross dollar volume (GDV) (3):
|
||||||||
Prepaid card GDV
|
$ 16,611,551
|
$ 16,937,325
|
$ 13,526,647
|
$ 12,799,531
|
||||
(3) Gross dollar volume represents the total dollar amount spent on prepaid cards issued by The Bancorp Bank.
|
||||||||
Business line quarterly summary:
|
||||||||||||||||||||||||
Quarter ended June 30, 2019
|
||||||||||||||||||||||||
(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 **
|
4.4
|
%
|
$
|
838
|
5
|
%
|
23
|
%
|
na
|
na
|
||||||||||||||
SBA
|
5.7
|
%
|
517
|
18
|
%
|
19
|
%
|
na
|
na
|
|||||||||||||||
Leasing
|
6.4
|
%
|
408
|
6
|
%
|
24
|
%
|
$
|
1.0
|
nm
|
||||||||||||||
Commercial real estate securitization
|
5.9
|
%
|
719
|
nm
|
nm
|
nm
|
nm
|
|||||||||||||||||
Weighted average yield
|
5.5
|
%
|
$
|
2,482
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Payment solutions (primarily prepaid)
|
1.2
|
%
|
$
|
2,511
|
17
|
%
|
nm
|
$
|
15.8
|
13
|
%
|
|||||||||||||
Card payment and ACH processing
|
0.9
|
%
|
885
|
-2
|
%
|
nm
|
2.5
|
18
|
%
|
|||||||||||||||
* Loan categories based on period end balance and Payment Solutions based on average quarterly balances.
|
||||||||||||||||||||||||
** Comprised of Securities Backed Lines of Credit (SBLOC), collateralized by marketable securities and Insurance Backed Lines of Credit (IBLOC),
collateralized by the cash surrender value of insurance policies.
|
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 - 2018
|
(46
|
)
|
(46
|
)
|
||||
2019 Marks
|
-
|
|||||||
Payments received
|
(89
|
)
|
||||||
June 30, 2019 Bancorp book value**
|
$
|
58
|
||||||
Total marks
|
$
|
(104
|
)
|
|||||
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 which reflects the Bank's investment in a securitization of certain loans from the banks
discontinued loan portfolio.
|
||||||||
** Approximately 44% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of June 30, 2019.
|
||||||||
Walnut Street portfolio composition as of June 30, 2019
|
||||||||
Collateral type
|
% of Portfolio
|
|||||||
Commercial real estate non-owner occupied
|
||||||||
Retail
|
52.2
|
%
|
||||||
Office
|
13.2
|
%
|
||||||
Other
|
5.9
|
%
|
||||||
Construction and land
|
18.4
|
%
|
||||||
Commercial non real estate and industrial
|
0.5
|
%
|
||||||
First mortgage residential owner occupied
|
6.1
|
%
|
||||||
First mortgage residential non-owner occupied
|
2.8
|
%
|
||||||
Other
|
0.9
|
%
|
||||||
Total
|
100.0
|
%
|
||||||
Cumulative analysis of marks on discontinued commercial loan principal as of June 30, 2019
|
|||||||||
Discontinued
|
Cumulative
|
% to original
|
|||||||
loan principal
|
marks
|
principal
|
|||||||
(dollars in millions)
|
|||||||||
Commercial loan discontinued principal before marks
|
$
|
99
|
|||||||
Florida mall held in discontinued other real estate owned
|
42
|
$
|
(27
|
)
|
|||||
Previous mark charges
|
14
|
(14
|
)
|
||||||
Mark at June 30, 2019
|
(7
|
)
|
|||||||
Total
|
$
|
155
|
$
|
(48
|
)
|
31%
|
Performing
|
Nonperforming
|
Total
|
Performing
|
Nonperforming
|
Total
|
|||||||||||||||||||
loan principal
|
loan principal
|
loan principal
|
loan marks
|
loan marks
|
marks
|
|||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||
6 loan relationships > $6 million
|
$
|
49
|
$
|
14
|
$
|
63
|
$
|
(3
|
)
|
$
|
(2
|
)
|
$
|
(5
|
)
|
|||||||||
Loan relationships < $6 million
|
27
|
2
|
29
|
(2
|
)
|
-
|
(2
|
)
|
||||||||||||||||
$
|
76
|
$
|
16
|
$
|
92
|
$
|
(5
|
)
|
$
|
(2
|
)
|
$
|
(7
|
)
|
Quarterly activity for discontinued commercial loan principal
|
||||
Commercial
|
||||
loan principal
|
||||
(in millions)
|
||||
Commercial loan discontinued principal March 31, 2019 before mark
|
$
|
115
|
||
Quarterly paydowns
|
(16
|
)
|
||
Commercial loan discontinued principal June 30, 2019 before marks
|
$
|
99
|
||
Marks June 30, 2019
|
(7
|
)
|
||
Net commercial loan exposure June 30, 2019
|
$
|
92
|
||
Residential mortgages
|
50
|
|||
Net loans
|
$
|
142
|
||
Florida Mall in other real estate owned
|
15
|
|||
17 Properties in other real estate owned
|
12
|
|||
Total discontinued assets at June 30, 2019
|
$
|
169
|
||
Discontinued commercial loan composition June 30, 2019
|
||||||||||||
Collateral type
|
Unpaid principal balance
|
Mark
June 30, 2019 |
Mark as % of portfolio
|
|||||||||
(dollars in millions)
|
||||||||||||
Commercial real estate - non-owner occupied:
|
||||||||||||
Retail
|
$
|
4
|
(0.6
|
)
|
13
|
%
|
||||||
Office
|
3
|
-
|
-
|
|||||||||
Other
|
37
|
(3.0
|
)
|
8
|
%
|
|||||||
Construction and land
|
12
|
(0.1
|
)
|
0
|
%
|
|||||||
Commercial non-real estate and industrial
|
10
|
(0.2
|
)
|
2
|
%
|
|||||||
1 to 4 family construction
|
11
|
(2.6
|
)
|
24
|
%
|
|||||||
First mortgage residential non-owner occupied
|
12
|
(0.5
|
)
|
4
|
%
|
|||||||
Commercial real estate owner occupied:
|
||||||||||||
Retail
|
8
|
-
|
-
|
|||||||||
Office
|
-
|
-
|
-
|
|||||||||
Other
|
-
|
-
|
-
|
|||||||||
Residential junior mortgage
|
1
|
-
|
-
|
|||||||||
Other
|
1
|
-
|
-
|
|||||||||
Total
|
$
|
99
|
||||||||||
Less: mark
|
(7
|
)
|
||||||||||
Net commercial loan exposure June 30, 2019
|
$
|
92
|
$
|
(7.0
|
)
|
7
|
%
|