10-Q 1 tbbk-20150331x10q.htm 10-Q 20150331 Q1

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

(Mark One)

 

 

 

 

[X]

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

 

 

SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended:     March 31, 2015

 

OR

 

 

 

 

 

 

[  ]

 

TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE

 

 

SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from: _____ to _____

 

Commission file number: 51018

 

THE BANCORP, INC.

 

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

 

23-3016517

(State or other jurisdiction of

 

(IRS Employer

incorporation or organization)

 

Identification No.)

 

 

 

 

409 Silverside Road

 

 

Wilmington, DE 

 

19809

(Address of principal

 

(Zip code)

executive offices)

 

 

 

 

 

 

Registrant's telephone number, including area code:  (302) 385-5000

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

 

Yes [X]   No [ ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Yes [X]   No [ ]

 

 


 

 

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

(Check one):  

 

 

 

 

 

Large accelerated filer [ ]   

 

Accelerated filer [X]    

 

Non-accelerated filer [ ] 

 

Smaller reporting company [ ]

 

(Do not check if a smaller

 

 

 

   reporting company)

 

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

 

Yes [ ]  No [X]

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

As of September 24, 2015 there were 37,758,237  outstanding shares of common stock, $1.00 par value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

THE BANCORP, INC

 

Form 10-Q Index

 

 

 

 

 

Page

Part I Financial Information

Item 1

Financial Statements:

3

 

 

 

 

Unaudited Consolidated Balance Sheets – March 31, 2015 and December 31, 2014

3

 

 

 

 

Unaudited Consolidated Statement of Operations – Three months ended March 31, 2015 and 2014

4

 

 

 

 

Unaudited Consolidated Statements of Comprehensive Income – Three  months ended March 31, 2015 and 2014

6

 

 

 

 

Unaudited Consolidated Statement of Changes in Shareholders’ Equity – Three months ended March 31, 2015

7

 

 

 

 

Unaudited Consolidated Statements of Cash Flows – Three months ended March 31, 2015 and 2014

8

 

 

 

 

Notes to Unaudited Consolidated Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

48

 

 

 

Item 4.

Controls and Procedures

48

 

 

 

Part II Other Information

 

 

 

Item 1.

Legal proceedings

50

Item 1A.

Risk Factors

50

Item 6.

Exhibits

51

 

 

 

Signatures 

 

53

 

 

 

 

 

 

 

2

 


 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

THE BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2015

 

2014

 

 

(in thousands)

ASSETS

 

 

 

 

Cash and cash equivalents

 

 

 

 

Cash and due from banks

 

$               18,636 

 

$                 8,665 

Interest earning deposits at Federal Reserve Bank

 

994,400 

 

1,059,320 

Securities purchased under agreements to resell

 

46,250 

 

46,250 

Total cash and cash equivalents

 

1,059,286 

 

1,114,235 

 

 

 

 

 

Investment securities, available-for-sale, at fair value

 

1,442,665 

 

1,493,639 

Investment securities, held-to-maturity (fair value $91,675 and $91,914, respectively)

 

93,662 

 

93,765 

Commercial loans held for sale

 

239,820 

 

217,080 

Loans, net of deferred loan fees and costs

 

870,901 

 

874,593 

Allowance for loan and lease losses

 

(4,243)

 

(3,638)

Loans, net

 

866,658 

 

870,955 

Federal Home Loan and Atlantic Central Bankers Bank stock

 

1,003 

 

1,002 

Premises and equipment, net

 

19,158 

 

17,697 

Accrued interest receivable

 

11,290 

 

11,251 

Intangible assets, net

 

5,791 

 

6,228 

Deferred tax asset, net

 

32,025 

 

33,673 

Investment in unconsolidated entity, at fair value

 

190,783 

 

193,595 

Assets held for sale

 

842,574 

 

887,929 

Other assets

 

43,734 

 

45,268 

Total assets

 

$          4,848,449 

 

$          4,986,317 

 

 

 

 

 

LIABILITIES

 

 

 

 

Deposits

 

 

 

 

Demand and interest checking

 

$          4,182,656 

 

$          4,289,586 

Savings and money market

 

307,988 

 

330,798 

Time deposits

 

1,400 

 

1,400 

Total deposits

 

4,492,044 

 

4,621,784 

 

 

 

 

 

Securities sold under agreements to repurchase

 

7,959 

 

19,414 

Subordinated debenture

 

13,401 

 

13,401 

Other liabilities

 

12,992 

 

12,695 

Total liabilities

 

4,526,396 

 

4,667,294 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Common stock - authorized, 50,000,000 shares of $1.00 par value; 37,858,152 and 37,808,777

 

 

 

 

shares issued at March 31, 2015 and December 31, 2014, respectively

 

37,858 

 

37,809 

Treasury stock, at cost (100,000 shares)

 

(866)

 

(866)

Additional paid-in capital

 

298,402 

 

297,987 

Retained earnings

 

(28,029)

 

(28,242)

Accumulated other comprehensive income

 

14,688 

 

12,335 

Total shareholders' equity

 

322,053 

 

319,023 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$          4,848,449 

 

$          4,986,317 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

 

3

 


 

THE BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31,

 

 

2015

 

2014

 

 

 

 

(restated)

 

 

(in thousands, except per share data)

Interest income

 

 

 

 

Loans, including fees

 

$                     10,697 

 

$                         8,464 

Interest on investment securities:

 

 

 

 

Taxable interest

 

5,060 

 

5,137 

Tax-exempt interest

 

3,174 

 

2,084 

Federal funds sold/securities purchased under agreements to resell

 

164 

 

106 

Interest earning deposits

 

622 

 

764 

 

 

19,717 

 

16,555 

Interest expense

 

 

 

 

Deposits

 

3,099 

 

2,777 

Securities sold under agreements to repurchase

 

 

12 

Subordinated debenture

 

95 

 

115 

 

 

3,203 

 

2,904 

Net interest income

 

16,514 

 

13,651 

Provision for loan and lease losses

 

665 

 

1,275 

Net interest income after provision for loan and lease losses

 

15,849 

 

12,376 

 

 

 

 

 

Non-interest income

 

 

 

 

Service fees on deposit accounts

 

1,760 

 

1,210 

Card payment and ACH processing fees

 

1,253 

 

1,303 

Prepaid card fees

 

13,132 

 

13,468 

Gain on sale of loans

 

1,676 

 

5,484 

Gain on sale of investment securities

 

80 

 

241 

Leasing income

 

519 

 

381 

Debit card income

 

460 

 

426 

Affinity fees

 

412 

 

534 

Other

 

1,485 

 

631 

Total non-interest income

 

20,777 

 

23,678 

 

 

 

 

 

Non-interest expense

 

 

 

 

Salaries and employee benefits

 

15,525 

 

15,145 

Depreciation and amortization

 

1,202 

 

1,050 

Rent and related occupancy cost

 

1,385 

 

1,027 

Data processing expense

 

3,228 

 

3,255 

Printing and supplies

 

615 

 

556 

Audit expense

 

426 

 

376 

Legal expense

 

1,405 

 

630 

Amortization of intangible assets

 

297 

 

304 

FDIC insurance

 

2,853 

 

1,689 

Software

 

1,350 

 

1,168 

Insurance

 

458 

 

451 

Telecom and IT network communications

 

550 

 

521 

Securitization and servicing expense

 

479 

 

578 

Consulting

 

1,488 

 

696 

Bank Secrecy Act and lookback consulting expenses

 

5,744 

 

 -

Other

 

3,855 

 

3,759 

Total non-interest expense

 

40,860 

 

31,205 

Income (loss) from continuing operations before income taxes

 

(4,234)

 

4,849 

Income tax (benefit) provision

(2,427)

 

1,623 

Net income (loss) from continuing operations

 

$                     (1,807)

 

$                         3,226 

Discontinued operations

 

 

 

 

Income (loss) from discontinued operations

 

3,099 

 

(2,475)

Income tax provision (benefit)

1,078 

 

(876)

4

 


 

Income (loss) from discontinued operations, net of tax

 

2,021 

 

(1,599)

Net income available to common shareholders

 

$                          214 

 

$                         1,627 

 

 

 

 

 

Net income (loss) per share from continuing operations - basic

 

$                       (0.05)

 

$                           0.08 

Net income (loss) per share from discontinued operations - basic

 

$                         0.05 

 

$                         (0.04)

Net income per share - basic

 

$                               - 

 

$                           0.04 

 

 

 

 

 

Net income (loss) per share from continuing operations - diluted

 

$                       (0.05)

 

$                           0.08 

Net income (loss) per share from discontinued operations - diluted

 

$                         0.05 

 

$                         (0.04)

Net income per share - diluted

 

$                               - 

 

$                           0.04 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

 

5

 


 

 

 

 

THE BANCORP INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

For the three months

 

ended March 31,

 

2015

 

2014

 

 

 

(restated)

 

(in thousands)

Net income

 

 

 

Other comprehensive income, net of reclassifications into net income:

$                      214 

 

$                  1,627 

 

 

 

 

Other comprehensive income

 

 

 

Change in net unrealized gain during the period

4,522 

 

8,583 

Reclassification adjustments for losses included in income

(80)

 

(241)

Reclassification adjustments for foreign currency translation losses

(552)

 

 -

Amortization of losses previously held as available-for-sale

28 

 

Net unrealized gain on investment securities

3,918 

 

8,347 

 

 

 

 

Deferred tax expense

 

 

 

 Securities available-for-sale:

 

 

 

Change in net unrealized gain during the period

1,583 

 

3,004 

Reclassification adjustments for losses included in income

(28)

 

(84)

Amortization of losses previously held as available-for-sale

10 

 

Income tax expense related to items of other comprehensive income

1,565 

 

2,922 

 

 

 

 

Other comprehensive income net of tax and reclassifications into net income

2,353 

 

5,425 

Comprehensive income

$                   2,567 

 

$                  7,052 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

6

 


 

 

 

THE BANCORP INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

Common

 

 

 

 

 

Additional

 

 

 

other

 

 

 

 

stock

 

Common

 

Treasury

 

paid-in

 

Retained

 

comprehensive

 

 

 

 

shares

 

stock

 

stock

 

capital

 

earnings

 

income

 

Total

 

 

 

 

 

Balance at January 1, 2015

 

37,808,777 

 

$     37,809 

 

$      (866)

 

$   297,987 

 

$     (28,242)

 

$           12,335 

 

$       319,023 

Net income

 

 

 

 

 

 

 

 

 

213 

 

 

 

213 

Common stock issued as restricted shares,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

net of tax benefits

 

49,375 

 

49 

 

 

 

(49)

 

 -

 

 

 

 -

Stock-based compensation

 

 -

 

 -

 

 -

 

464 

 

 -

 

 -

 

464 

Other comprehensive income net of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

reclassification adjustments and tax

 

 -

 

 -

 

 -

 

 -

 

 -

 

2,353 

 

2,353 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2015

 

37,858,152 

 

$     37,858 

 

$      (866)

 

$   298,402 

 

$     (28,029)

 

$           14,688 

 

$       322,053 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

7

 


 

 

 

THE BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

 

 

 

 

 

For the three months

 

 

ended March 31,

 

 

2015

 

2014

 

 

 

 

(restated)

Operating activities

 

 

 

 

Net income (loss) from continuing operations

 

$         (1,807)

 

$          3,226 

Net income (loss) from discontinued operations, net of tax

 

2,021 

 

(1,599)

Adjustments to reconcile net income to net cash

 

 

 

 

provided by operating activities

 

 

 

 

Depreciation and amortization

 

1,499 

 

1,354 

Provision for loan and lease losses

 

665 

 

1,275 

Net amortization of investment securities discounts/premiums

 

3,573 

 

3,441 

Stock-based compensation expense

 

464 

 

772 

Loans originated for sale

 

(125,923)

 

(218,587)

Sale of loans originated for resale

 

104,859 

 

75,441 

Gain on sales of loans originated for resale

 

(1,676)

 

(5,484)

Gain on sale of fixed assets

 

(2)

 

(2)

Gain on sales of investment securities

 

(80)

 

(241)

Increase in accrued interest receivable

 

(39)

 

(1,928)

Decrease in other assets

 

1,203 

 

36,401 

Increase in discontinued assets held for sale

 

(20,392)

 

(43,923)

Increase (decrease) in other liabilities

 

297 

 

(1,552)

 Net cash used in operating activities

 

(35,338)

 

(151,407)

 

 

 

 

 

Investing activities

 

 

 

 

Purchase of investment securities available-for-sale

 

(30,401)

 

(222,550)

Proceeds from sale of investment securities available-for-sale

 

35,226 

 

24,173 

Proceeds from redemptions and prepayments of securities held-to-maturity

 

89 

 

38 

Proceeds from redemptions and prepayments of securities available-for-sale

 

47,140 

 

64,004 

Net decrease (increase) in loans

 

3,632 

 

(103,103)

Net decrease in discontinued loans held for sale

 

65,747 

 

19,098 

Proceeds from sale of fixed assets

 

144 

 

11 

Purchases of premises and equipment

 

(2,805)

 

(1,092)

Investment in unconsolidated entity

 

2,812 

 

 -

 Net cash provided by (used in) investing activities

 

121,584 

 

(219,421)

 

 

 

 

 

Financing activities

 

 

 

 

Net decrease in deposits

 

(129,740)

 

(25,781)

Net decrease in securities sold under agreements to repurchase

 

(11,455)

 

(4,730)

Proceeds from the exercise of options

 

 -

 

71 

Excess tax benefit from share-based payment arrangements

 

 -

 

 -

 Net cash used in financing activities

 

(141,195)

 

(30,440)

 

 

 

 

 

 Net decrease in cash and cash equivalents

 

(54,949)

 

(401,268)

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

1,114,235 

 

1,235,949 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$   1,059,286 

 

$      834,681 

 

 

 

 

 

Supplemental disclosure:

 

 

 

 

Interest paid

 

$          3,129 

 

$          2,911 

Taxes paid

 

$                  - 

 

$          1,129 

 

The accompanying notes are an integral part of these consolidated financial statements.

8

 


 

 

 

THE BANCORP, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLDIATED FINANCIAL STATEMENTS

 

Note 1. Structure of Company

 

The Bancorp, Inc. (the Company) is a Delaware corporation and a registered financial holding company. Its primary subsidiary is a wholly owned subsidiary bank, The Bancorp Bank (the Bank).  The Bank is a Delaware chartered commercial bank located in Wilmington, Delaware and is a Federal Deposit Insurance Corporation (FDIC) insured institution.  In its continuing operations, the Bank has four primary lines of specialty lending: security backed lines of credit (SBLOC), leasing, Small Business Administration (SBA) loans and loans generated for sale into capital markets primarily through commercial mortgage backed securities (CMBS). Through the Bank, the Company also provides banking services nationally, which include prepaid cards, private label banking, institutional banking, card payment and other payment processing and health savings accounts.  European operations are comprised of three operational service subsidiaries, Transact Payment Services Group Limited, Transact Payment Services Limited and Transact Payment Services Group-Bulgaria EOOD and one subsidiary, Transact Payments Limited, which offer prepaid card and electronic money issuing services.

The Company and the Bank are subject to regulation by certain state and federal agencies and, accordingly, they are examined periodically by those regulatory authorities.  As a consequence of the extensive regulation of commercial banking activities, the Company’s and the Bank’s businesses may be affected by state and federal legislation and regulations.

 

Note 2. Significant Accounting Policies

 

Basis of Presentation

The financial statements of the Company, as of March 31, 2015 and for the three month periods ended March 31, 2015 and 2014, are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. However, in the opinion of management, these interim financial statements include all necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Form 10-K report). Note T in those financial statements present restated interim financial statements as described therein. The results of operations for the three month period ended March 31, 2015 may not necessarily be indicative of the results of operations for the full year ending December 31, 2015.

Note 3. Share-based Compensation

 

The Company recognizes compensation expense for stock options in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 718, Stock Based Compensation. The expense of the option is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is usually the vesting period. For grants subject to a service condition, the Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. In accordance with ASC 718, the Company estimates the number of options for which the requisite service is expected to be rendered. At March 31, 2015, the Company had four stock-based compensation plans, which are more fully described in its Annual Report on Form 10-K for the year ended December 31, 2014 and the portions of the Company’s Proxy Statement for the year ended 2014, incorporated therein by reference.

 

The Company did not grant stock options in the first quarter of 2015 or 2014.  There were no common stock options exercised in the three month period ended March 31, 2015 and 59,999 common stock options exercised in the three month period ended March 31, 2014.  The total intrinsic value of the options exercised during the three months ended March 31, 2015 and 2014 was $0 and $594,000, respectively.

 

A summary of the status of the Company’s equity compensation plans is presented below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 


 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

average

 

 

 

 

 

Weighted

 

remaining

 

 

 

 

 

average

 

contractual

 

Aggregate

 

 

 

exercise

 

term

 

intrinsic

 

Shares

 

price

 

(years)

 

value

 

(in thousands, except per share data)

Outstanding at January 1, 2015

2,602,000 

 

$                9.72 

 

5.39 

 

$         5,010,208 

Granted

 -

 

 -

 

 -

 

 -

Exercised

 -

 

 -

 

 -

 

 -

Expired

(232,500)

 

14.24 

 

 -

 

 -

Forfeited

 -

 

 -

 

 -

 

 -

Outstanding at March 31, 2015

2,369,500 

 

$                9.27 

 

5.66 

 

$         1,684,163 

Exercisable at March 31, 2015

2,019,875 

 

$                9.35 

 

5.38 

 

$         1,450,426 

 

The Company granted 86,992 restricted stock units with a vesting period of two years at a fair value of $9.11 in the first three months of 2015.  There were no restricted stock units granted in the first three months of 2014.  The total fair value of restricted stock units vested for the three months ended March 31, 2015 and 2014 was $430,000 and $886,000, respectively.

 

A summary of the status of the Company’s restricted stock units is presented below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

Weighted-

 

remaining

 

 

 

average

 

contractual

 

 

 

grant date

 

term

 

Shares

 

fair value

 

(years)

Outstanding at January 1, 2015

148,381 

 

$             10.46 

 

2.07 

Granted

86,992 

 

9.11 

 

2.00 

Vested

(49,375)

 

10.45 

 

                   -  

Forfeited

 -

 

                   -  

 

                   -  

Outstanding at March 31, 2015

185,998 

 

 

 

1.88 

 

As of March 31, 2015, there was a total of $2.9 million of unrecognized compensation cost related to non-vested awards under share-based plans.  This cost is expected to be recognized over a weighted average period of 1.37 years.  Related compensation expense for the three months ended March 31, 2015 and 2014 was $464,000 and $772,000 million, respectively. 

 

Note 4. Earnings Per Share

 

The Company calculates earnings per share under ASC 260, Earnings Per Share. Basic earnings per share exclude dilution and are computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock.

 

The following tables show the Company’s earnings per share for the periods presented:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 2015

 

 

Income

 

Shares

 

Per share

 

 

(numerator)

 

(denominator)

 

amount

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Basic earnings (loss) per share from continuing operations

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$               (1,807)

 

37,745,619 

 

$                 (0.05)

10

 


 

Effect of dilutive securities

 

 

 

 

 

 

Common stock options

 

 -

 

 -

 

 -

Diluted earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$               (1,807)

 

37,745,619 

 

$                 (0.05)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 2015

 

 

Income

 

Shares

 

Per share

 

 

(numerator)

 

(denominator)

 

amount

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Basic earnings (loss) per share from discontinued operations

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                 2,021

 

37,745,619 

 

$                  0.05

Effect of dilutive securities

 

 

 

 

 

 

Common stock options

 

 -

 

312,782 

 

 -

Diluted earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                 2,021

 

38,058,401 

 

$                  0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 2015

 

 

Income

 

Shares

 

Per share

 

 

(numerator)

 

(denominator)

 

amount

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Basic earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                    214

 

37,745,619 

 

$                      -

Effect of dilutive securities

 

 

 

 

 

 

Common stock options

 

 -

 

312,782 

 

 -

Diluted earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                    214

 

38,058,401 

 

$                      -

 

Stock options for 892,000 shares, exercisable at prices between $9.58 and $25.43 per share, were outstanding at March 31, 2015, but were not included in the dilutive shares because the exercise price per share was greater than the average market price.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 2014

 

 

(restated)

 

 

Income

 

Shares

 

Per share

 

 

(numerator)

 

(denominator)

 

amount

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Basic earnings (loss) per share from continuing operations

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                 3,226

 

37,680,614 

 

$                  0.08

Effect of dilutive securities

 

 

 

 

 

 

Common stock options

 

 -

 

965,034 

 

 -

Diluted earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                 3,226

 

38,645,648 

 

$                  0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 2014

 

 

(restated)

11

 


 

 

 

Income

 

Shares

 

Per share

 

 

(numerator)

 

(denominator)

 

amount

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Basic earnings (loss) per share from discontinued operations

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$               (1,599)

 

37,680,614 

 

$                 (0.04)

Effect of dilutive securities

 

 

 

 

 

 

Common stock options

 

 -

 

 -

 

 -

Diluted earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$               (1,599)

 

37,680,614 

 

$                 (0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 2014

 

 

(restated)

 

 

Income

 

Shares

 

Per share

 

 

(numerator)

 

(denominator)

 

amount

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Basic earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                 1,627

 

37,680,614 

 

$                  0.04

Effect of dilutive securities

 

 

 

 

 

 

Common stock options

 

 -

 

965,034 

 

 -

Diluted earnings (loss) per share

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$                 1,627

 

38,645,648 

 

$                  0.04

 

Stock options for 3,000 shares, exercisable at prices between $20.98 and $25.43 per share, were outstanding at March 31, 2014 but were not included in dilutive earnings per share computation because the exercise price per share was greater than the average market price.

 

Note 5. Investment Securities

 

The amortized cost, gross unrealized gains and losses, and fair values of the Company’s investment securities classified as available-for-sale and held-to-maturity at March 31, 2015 and December 31, 2014 are summarized as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

March 31, 2015

 

 

 

 

Gross

 

Gross

 

 

 

 

Amortized

 

unrealized

 

unrealized

 

Fair

 

 

cost

 

gains

 

losses

 

value

U.S. Government agency securities

 

$                 18,345 

 

$                    62 

 

$                     (26)

 

$             18,381 

Federally insured student loan securities

 

124,124 

 

416 

 

(387)

 

124,153 

Tax-exempt obligations of states and political subdivisions

 

529,820 

 

17,908 

 

(156)

 

547,572 

Taxable obligations of states and political subdivisions

 

58,207 

 

2,742 

 

(55)

 

60,894 

Residential mortgage-backed securities

 

403,145 

 

3,514 

 

(453)

 

406,206 

Commercial mortgage-backed securities

 

107,854 

 

1,129 

 

(1,199)

 

107,784 

Foreign debt securities

 

60,290 

 

520 

 

(76)

 

60,734 

Corporate and other debt securities

 

116,310 

 

723 

 

(92)

 

116,941 

 

 

$            1,418,095 

 

$             27,014 

 

$                (2,444)

 

$        1,442,665 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity

 

March 31, 2015

 

 

 

 

Gross

 

Gross

 

 

 

 

Amortized

 

unrealized

 

unrealized

 

Fair

 

 

cost

 

gains

 

losses

 

value

Other debt securities - single issuers

 

$                 17,895 

 

$                  379 

 

$                (3,834)

 

$             14,440 

Other debt securities - pooled

 

75,767 

 

1,468 

 

 -

 

77,235 

 

 

$                 93,662 

 

$               1,847 

 

$                (3,834)

 

$             91,675 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 


 

Available-for-sale

 

December 31, 2014

 

 

 

 

Gross

 

Gross

 

 

 

 

Amortized

 

unrealized

 

unrealized

 

Fair

 

 

cost

 

gains

 

losses

 

value

U.S. Government agency securities

 

$                 16,519 

 

$                    42 

 

$                        - 

 

$             16,561 

Federally insured student loan securities

 

125,789 

 

613 

 

(390)

 

126,012 

Tax-exempt obligations of states and political subdivisions

 

535,622 

 

16,027 

 

(380)

 

551,269 

Taxable obligations of states and political subdivisions

 

58,868 

 

2,614 

 

(103)

 

61,379 

Residential mortgage-backed securities

 

419,503 

 

3,504 

 

(878)

 

422,129 

Commercial mortgage-backed securities

 

123,519 

 

1,220 

 

(1,500)

 

123,239 

Foreign debt securities

 

67,094 

 

130 

 

(346)

 

66,878 

Corporate and other debt securities

 

126,610 

 

225 

 

(663)

 

126,172 

 

 

$            1,473,524 

 

$             24,375 

 

$               (4,260)

 

$        1,493,639