Exhibit 99
The Bancorp, Inc. Reports First Quarter 2005 Earnings
Wilmington, DE – April 25, 2005 – The Bancorp, Inc. (“Bancorp”) (NASDAQ NM: TBBK)
Financial highlights:
| - | Loans increased $69.9 million or 16.3% from December 31, 2004 |
| - | Deposits increased $96.0 million or 24.7% from December 31, 2004 |
| - | Net income from operations (income before payment expense from the redemption of the trust preferred subordinated debt and income taxes) increased $1.2 million from the fourth quarter of 2004 |
Bancorp, a financial holding company that operates The Bancorp Bank, reported total assets of $658.6 million at March 31, 2005, an increase of $82.3 million or 14.3% from December 31, 2004. Loans grew to $497.8 million an increase of $69.9 million or 16.3% from those of December 31, 2004, and deposits grew to $484.1 million, an increase of $96.0 million or 24.7% during the same period. Total common shares outstanding were 12,238,499 at March 31, 2005 and 11,888,061 at December 31, 2004.
Net income available to common shareholders for the first quarter of 2005 was $317,000, which reflects non-recurring expenses of $1.3 million related to the early redemption of trust preferred subordinated debt, compared to net income of $11,000 for the first quarter of 2004.
Net interest income for the first quarter of 2005 was $6.5 million compared to $5.4 million for the fourth quarter of 2004, an increase of $1.0 million or 18.8% and net interest margin for the first quarter of 2005 was 4.44% compared to 4.05% for the fourth quarter of 2004.
“The redemption of the trust preferred subordinated debt in the first quarter of 2005 was our initial step in simplifying our capital structure and reducing our cost of capital,” said Betsy Z. Cohen, CEO of The Bancorp, Inc.
Conference Call Webcast
Interested parties can access the LIVE webcast of Bancorp’s Quarterly Earnings Conference Call at 9:30 AM EDT on Wednesday, April 27, 2005 by clicking on the webcast link on Bancorp’s homepage at www.thebancorp.com. For those who are not available to listen to the live broadcast, the replay of the webcast will be available following the live call on Bancorp’s investor relations website and telephonically until Wednesday, May 4, 2005 by dialing 888-286-8010, access code 54221396.
About The Bancorp, Inc.
The Bancorp, Inc. is a financial holding company that operates The Bancorp Bank an FDIC insured commercial bank that delivers a full array of financial services and products through private-label affinity partner programs nationwide. Bancorp, through Philadelphia Private Bank (www.philadelphiaprivatebank.com), its regional community bank division, serves the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.
The Bancorp, Inc. Contact
Andres Viroslav
215-861-7990
andres.viroslav@thebancorp.com
| | Three months ended March 31, | |
| |
| |
| | 2005 | | 2004 | |
| |
|
| |
|
| |
| | (dollars in thousands except per share data) | |
Condensed income statement | | | | | | | |
Net interest income | | $ | 6,470 | | $ | 3,290 | |
Provision for loan and lease losses | | | 500 | | | 332 | |
Non-interest income | | | 4,075 | | | 1,884 | |
Non-interest expense | | | 7,933 | | | 4,584 | |
| |
|
| |
|
| |
Net income from operations | | | 2,112 | | | 258 | |
Payment expense from redemption of trust preferred subordinated debt | | | (1,285 | ) | | — | |
| |
|
| |
|
| |
Net income before income tax expense | | | 827 | | | 258 | |
Income tax expense | | | 261 | | | — | |
| |
|
| |
|
| |
Net income | | | 566 | | | 258 | |
Less preferred stock dividends and accretion | | | (204 | ) | | (223 | ) |
Income allocated to Series A preferred shareholders | | | (45 | ) | | (24 | ) |
| |
|
| |
|
| |
Net income available to common shareholders | | $ | 317 | | $ | 11 | |
| |
|
| |
|
| |
Basic earnings per share excluding loss from early redemption of trust preferred securities net of tax expense of $436,000 | | $ | 0.09 | | $ | — | |
| |
|
| |
|
| |
Basic earnings per share from early redemption of trust preferred securities net of tax expense of $436,000 | | $ | (0.06 | ) | $ | — | |
| |
|
| |
|
| |
Basic earnings per share | | $ | 0.03 | | $ | — | |
| |
|
| |
|
| |
Diluted earnings per share excluding loss from early redemption of trust preferred securities net of tax expense of $436,000 | | $ | 0.09 | | $ | — | |
| |
|
| |
|
| |
Diluted earnings per share from early redemption of trust preferred securities net of tax expense of $436,000 | | $ | (0.06 | ) | $ | — | |
| |
|
| |
|
| |
Diluted earnings per share | | $ | 0.03 | | $ | — | |
| |
|
| |
|
| |
Weighted average shares - basic | | | 12,195,521 | | | 7,059,894 (1 | ) |
Weighted average shares - diluted | | | 12,642,681 | | | 7,286,282 (1 | ) |
| | March 31, 2005 | | December 31, 2004 | | March 31, 2004 | |
| |
|
| |
|
| |
|
| |
Condensed balance sheet | | | | | | | | | | |
Assets | | | | | | | | | | |
Federal funds sold | | $ | 34,055 | | $ | 8,291 | | $ | 32,827 | |
Investment securities | | | 98,675 | | | 120,252 | | | 130,812 | |
Loans | | | 497,782 | | | 427,881 | | | 274,843 | |
Allowance for loan and lease losses | | | (4,101 | ) | | (3,593 | ) | | (2,323 | ) |
Other assets | | | 32,193 | | | 23,448 | | | 19,325 | |
| |
|
| |
|
| |
|
| |
Total assets | | $ | 658,604 | | $ | 576,279 | | $ | 455,484 | |
| |
|
| |
|
| |
|
| |
Liabilities and shareholders’ equity | | $ | 268,820 | | $ | 205,249 | | $ | 194,618 | |
Transaction accounts | | | | | | | | | | |
Time deposits | | | 215,270 | | | 182,832 | | | 125,513 | |
| |
|
| |
|
| |
|
| |
Total deposits | | | 484,090 | | | 388,081 | | | 320,131 | |
Other borrowings | | | 46,837 | | | 60,052 | | | 20,003 | |
Trust preferred subordinated debt | | | — | | | 5,413 | | | 5,413 | |
Other liabilities | | | 2,559 | | | 1,331 | | | 5,374 | |
Shareholder’s equity | | | 125,118 | | | 121,402 | | | 104,563 | (2) |
| |
|
| |
|
| |
|
| |
Total liabilities and shareholders’ equity | | $ | 658,604 | | $ | 576,279 | | $ | 455,484 | |
| |
|
| |
|
| |
|
| |
| | | First quarter average 2005 | | | Fourth quarter average 2004 | | | First quarter average 2004 | |
| |
|
| |
|
| |
|
| |
Average condensed balance sheet | | | | | | | | | | |
Assets | | | | | | | | | | |
Federal funds sold | | $ | 20,066 | | $ | 36,749 | | $ | 39,481 | |
Investment securities | | | 109,260 | | | 116,518 | | | 62,285 | |
Loans | | | 453,158 | | | 383,800 | | | 245,261 | |
Allowance for loan and lease losses | | | (3,671 | ) | | (3,050 | ) | | (2,037 | ) |
Other assets | | | 24,914 | | | 18,839 | | | 16,813 | |
| |
|
| |
|
| |
|
| |
Total assets | | $ | 603,727 | | $ | 552,856 | | $ | 361,803 | |
| |
|
| |
|
| |
|
| |
Liabilities and shareholders’ equity | | | | | | | | | | |
Transaction accounts | | $ | 232,419 | | $ | 228,990 | | $ | 163,999 | |
Time deposits | | | 193,436 | | | 150,291 | | | 115,924 | |
| |
|
| |
|
| |
|
| |
Total deposits | | | 425,855 | | | 379,281 | | | 279,923 | |
Other borrowings | | | 54,337 | | | 47,769 | | | 7,915 | |
Trust preferred | | | — | | | 5,413 | | | — | |
Guaranteed preferred interest in Company’s subordinated debt | | | — | | | — | | | 5,250 | |
Other liabilities | | | 747 | | | 392 | | | 83 | |
Shareholders’ equity | | | 122,788 | | | 120,001 | | | 68,632 | (2) |
| |
|
| |
|
| |
|
| |
Total liabilities and shareholders’ equity | | $ | 603,727 | | $ | 552,856 | | $ | 361,803 | |
| |
|
| |
|
| |
|
| |
Loan Portfolio
| | March 31, 2005 Amount | | December 31, 2004 Amount | | March 31, 2004 Amount | |
| |
|
| |
|
| |
|
| |
Commercial | | $ | 90,264 | | $ | 89,327 | | $ | 57,078 | |
Commercial mortgage | | | 149,883 | | | 140,755 | | | 106,534 | |
Construction | | | 116,014 | | | 97,239 | | | 49,624 | |
| |
|
| |
|
| |
|
| |
Total commercial loans | | | 356,161 | | | 327,321 | | | 213,236 | |
Direct financing leases, net | | | 72,566 | | | 44,795 | | | 38,729 | |
Residential mortgage | | | 43,148 | | | 31,388 | | | 6,231 | |
Consumer loans and others | | | 26,488 | | | 24,894 | | | 16,501 | |
| |
|
| |
|
| |
|
| |
| | | 498,363 | | | 428,398 | | | 274,697 | |
Unamortized costs | | | (581 | ) | | (517 | ) | | 146 | |
| |
|
| |
|
| |
|
| |
Total loans, net of unamortized fees and costs | | $ | 497,782 | | $ | 427,881 | | $ | 274,843 | |
| |
|
| |
|
| |
|
| |
| | Three months ended March 31, | |
| |
| |
| | 2005 | | 2004 | |
| |
|
| |
|
| |
Selected operating ratios | | | | | | | |
Return on average assets | | | 0.38 | % | | 0.29 | % |
Return on average assets excluding redemption of trust preferred subordinated debt (3) | | | 0.94 | % | | 0.29 | % |
Return on average equity | | | 1.85 | % | | 1.50 | % |
Return on average equity excluding redemption of trust preferred subordinated debt (3) | | | 4.61 | % | | 1.50 | % |
Net interest margin | | | 4.44 | % | | 3.75 | % |
Book value per share | | $ | 9.42 | | $ | 8.98 | (1) |
| | As of or for the period ended March 31, | |
| |
| |
| | 2005 | | 2004 | |
| |
|
| |
|
| |
Asset quality ratios | | | | | | | |
Nonperforming loans to total loans | | | 0.18 | % | | 0.01 | % |
Nonperforming assets to total assets | | | 0.14 | % | | 0.00 | % |
Allowance for loan and lease losses to total loans | | | 0.82 | % | | 0.85 | % |
Nonaccrual loans | | $ | 205 | | $ | — | |
Loans 90 days past due still accruing interest | | $ | 703 | | $ | 14 | |
(1) The March 31, 2004 earnings per share and book value calculations include the shares issued in The Bancorp Bank’s public offering in February 2004. These shares were issued by The Bancorp, Inc. in December 2004 upon the completion of our reorganization.
(2) The March 31, 2004 shareholders’ equity includes the funds raised from The Bancorp Bank’s public offering in February 2004. These funds were contributed in December 2004 to The Bancorp, Inc. upon completion of our reorganization.
(3) The return on average assets and return on average equity from the payment expense from the redemption of trust preferred subordinated debt at March 31, 2005 was (.56%) and (2.76%), respectively.