The Bancorp, Inc. Reports First Quarter 2017 Financial Results
Wilmington, DE – April 27, 2017 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for first quarter 2017.
Highlights
| | Net income of $8.0 million and diluted earnings per share of $0.14. |
| | Net interest income increased 21% to $24.9 million for the quarter ended March 31, 2017 compared to $20.6 million for the quarter ended March 31, 2016. |
| | Non-interest income increased 30% to $24.2 million for the quarter ended March 31, 2017 compared to $18.7 million for the quarter ended March 31, 2016. |
| | Net interest margin increased to 2.70% for the quarter ended March 31, 2017 compared to 2.56% for the quarter ended March 31, 2016. |
| | Loans and loans held for sale from continuing operations increased 22% to $1.75 billion at March 31, 2017 compared to $1.43 billion at March 31, 2016. |
| | Direct lease financing increased 51% to $363.2 million at March 31, 2017 from $240.7 million at March 31, 2016, reflecting the impact of organic growth and the purchase of lease receivables. |
| | Small Business Administration ("SBA") loans increased 11% to $369.8 million at March 31, 2017 from $334.4 million at March 31, 2016. |
| | The rate on our average deposits and interest bearing liabilities of $4.10 billion in Q1 2017 was 0.35% with a rate of 0.27% for $2.18 billion of average prepaid card deposits. |
| | Assets held for sale from discontinued operations decreased 36% to $341.3 million at March 31, 2017 from $536.5 million at March 31, 2016. |
| | Non-interest expense was reduced by $3.0 million, to $37.8 million for the quarter ended March 31, 2017 compared to $40.8 million for the quarter ended March 31, 2016, excluding BSA lookback expense for 2016. |
| | Book value per common share at March 31, 2017 of $5.57 per share. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized. |
The Bancorp reported net income of $8.0 million, or $0.14 earnings per diluted share, for the quarter ended March 31, 2017 compared to a net loss of $10.9 million, or $0.29 loss per diluted share for the quarter ended March 31, 2016. Net income from continuing operations for the quarter ended March 31, 2017 was $6.3 million, or $0.11 earnings per diluted share, compared to a net loss of $10.6 million from continuing operations, or $0.28 loss per diluted share, for the quarter ended March 31, 2016. Income from continuing operations does not include any income which may result from the reinvestment of the proceeds from sales or repayment of the remaining assets in The Bancorp's discontinued operations. Tier one capital to assets, tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 ratios were 6.96%, 14.74%, 15.09% and 14.74% respectively, compared to well capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.
Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "While 2016 was a very difficult year for our Company, first quarter 2017 financial results reflected the planned return to profitability. While we did incur financial losses in 2016, it did set the stage to make progress on many key issues that faced the company. I believe that the actions taken in 2016 have resulted in a much stronger platform and the first quarter was the start of what we believe will be a year of improving performance. In the first quarter, The Bancorp earned $8.0 million in net income or 14 cents a share off of $49 million of total revenue, less interest expense. Our earnings showed substantial improvement and revenue momentum continues, while expense cuts and restructuring had a noticeable impact on profitability. I believe this first quarter is a turning point. We have a long way to go to fully implement our integrated business plan but we are on track to deliver better results for all the constituencies that comprise the Bancorp community."
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, April 28, 2017 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 6292817. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, May 5, 2017 by dialing 855.859.2056, access code 6292817.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK) is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500. The company's chief financial institution, The Bancorp Bank (Member FDIC, Equal Housing Lender), has been repeatedly recognized in the payments industry as the Top Issuer of Prepaid Cards (US), a top merchant sponsor bank and a top ACH originator. Specialized lending distinctions include National Preferred SBA Lender, a leading provider of securities-backed lines of credit, and one of the few bank-owned commercial leasing groups in the nation. For more information please visit www.thebancorp.com.
Forward-Looking Statements
Statements in this earnings release regarding Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. These statements may be identified by the use of forward-looking terminology, including but not limited to the words "may," "believe," "will," "expect," "look," "anticipate," "estimate," "continue," or similar words. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see Bancorp's filings with the SEC, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those filings. These risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law.
The Bancorp, Inc. Contact
Andres Viroslav
215-861-7990
aviroslav@thebancorp.com
| The Bancorp, Inc. | |
| Financial highlights | |
| (unaudited) | |
| | | Three months ended | | | Year ended | |
| | | March 31, | | | December 31, | |
| Condensed income statement | | 2017 | | | 2016 | | | 2016 | |
| | | (dollars in thousands except per share data) | |
| | | | | | | | | | |
| Net interest income | | $ | 24,877 | | | $ | 20,556 | | | $ | 89,966 | |
| Provision for loan and lease losses | | | 1,000 | | | | - | | | | 3,360 | |
| Non-interest income | | | | | | | | | | | | |
| Service fees on deposit accounts | | | 1,675 | | | | 847 | | | | 5,124 | |
| Card payment and ACH processing fees | | | 1,528 | | | | 1,267 | | | | 5,526 | |
| Prepaid card fees | | | 13,547 | | | | 13,574 | | | | 51,326 | |
| Gain (loss) on sale of loans | | | 5,383 | | | | (1,433 | ) | | | 2,901 | |
| Gain on sale of investment securities | | | 503 | | | | 2,026 | | | | 3,171 | |
| Change in value of investment in unconsolidated entity | | | (19 | ) | | | 812 | | | | (37,533 | ) |
| Leasing income | | | 551 | | | | 404 | | | | 2,007 | |
| Affinity fees | | | 1,021 | | | | 1,094 | | | | 4,563 | |
| Other non-interest income | | | 30 | | | | 97 | | | | 5,401 | |
| Total non-interest income | | | 24,219 | | | | 18,688 | | | | 42,486 | |
| Non-interest expense | | | | | | | | | | | | |
| Bank Secrecy Act and lookback consulting expenses | | | - | | | | 14,315 | | | | 29,081 | |
| Other non-interest expense | | | 37,783 | | | | 40,823 | | | | 169,492 | |
| Total non-interest expense | | | 37,783 | | | | 55,138 | | | | 198,573 | |
| Income (loss) from continuing operations before income tax expense | | | 10,313 | | | | (15,894 | ) | | | (69,481 | ) |
| Income tax expense (benefit) | | | 4,011 | | | | (5,272 | ) | | | (12,664 | ) |
| Net income (loss) from continuing operations | | | 6,302 | | | | (10,622 | ) | | | (56,817 | ) |
| Net income (loss) from discontinued operations, net of tax | | | 1,661 | | | | (290 | ) | | | (39,675 | ) |
| Net income (loss) available to common shareholders | | $ | 7,963 | | | $ | (10,912 | ) | | $ | (96,492 | ) |
| | | | | | | | | | | | | |
| Net income (loss) per share from continuing operations - basic | | $ | 0.11 | | | $ | (0.28 | ) | | $ | (1.28 | ) |
| Net income (loss) per share from discontinued operations - basic | | $ | 0.03 | | | $ | (0.01 | ) | | $ | (0.89 | ) |
| Net income (loss) per share - basic | | $ | 0.14 | | | $ | (0.29 | ) | | $ | (2.17 | ) |
| | | | | | | | | | | | | |
| Net income (loss) per share from continuing operations - diluted | | $ | 0.11 | | | $ | (0.28 | ) | | $ | (1.28 | ) |
| Net income (loss) per share from discontinued operations - diluted | | $ | 0.03 | | | $ | (0.01 | ) | | $ | (0.89 | ) |
| Net income (loss) per share - diluted | | $ | 0.14 | | | $ | (0.29 | ) | | $ | (2.17 | ) |
| Weighted average shares - basic | | | 55,534,279 | | | | 37,804,741 | | | | 44,567,357 | |
| Weighted average shares - diluted | | | 55,752,496 | | | | 37,860,665 | | | | 44,776,138 | |
| | | | | | | | | | | | | |
| For loss periods the weighted averages shares - basic is used in both the basic and diluted computations. | |
| Balance sheet | | March 31, | | | December 31, | | | September 30, | | | March 31, | |
| | | 2017 | | | 2016 | | | 2016 | | | 2016 | |
| | | (dollars in thousands) | |
| Assets: | | | | | | | | | | | | |
| Cash and cash equivalents | | | | | | | | | | | | |
| Cash and due from banks | | $ | 4,671 | | | $ | 4,127 | | | $ | 4,061 | | | $ | 8,542 | |
| Interest earning deposits at Federal Reserve Bank | | | 669,042 | | | | 955,733 | | | | 312,605 | | | | 757,773 | |
| Securities sold under agreements to resell | | | 65,248 | | | | 39,199 | | | | 39,463 | | | | 10,208 | |
| Total cash and cash equivalents | | | 738,961 | | | | 999,059 | | | | 356,129 | | | | 776,523 | |
| | | | | | | | | | | | | | | | | |
| Investment securities, available-for-sale, at fair value | | | 1,215,892 | | | | 1,248,614 | | | | 1,334,927 | | | | 1,252,754 | |
| Investment securities, held-to-maturity | | | 93,443 | | | | 93,467 | | | | 93,495 | | | | 93,550 | |
| Loans held for sale, at fair value | | | 480,913 | | | | 663,140 | | | | 562,957 | | | | 313,595 | |
| Loans, net of deferred fees and costs | | | 1,264,127 | | | | 1,222,911 | | | | 1,198,237 | | | | 1,114,053 | |
| Allowance for loan and lease losses | | | (7,294 | ) | | | (6,332 | ) | | | (6,058 | ) | | | (4,378 | ) |
| Loans, net | | | 1,256,833 | | | | 1,216,579 | | | | 1,192,179 | | | | 1,109,675 | |
| Federal Home Loan Bank & Atlantic Community Bancshares stock | | | 2,589 | | | | 1,613 | | | | 11,014 | | | | 1,063 | |
| Premises and equipment, net | | | 22,993 | | | | 24,125 | | | | 21,797 | | | | 21,692 | |
| Accrued interest receivable | | | 10,296 | | | | 10,589 | | | | 10,496 | | | | 9,172 | |
| Intangible assets, net | | | 5,844 | | | | 6,906 | | | | 5,682 | | | | 4,672 | |
| Other real estate owned | | | 104 | | | | 104 | | | | - | | | | - | |
| Deferred tax asset, net | | | 54,155 | | | | 55,666 | | | | 29,765 | | | | 32,462 | |
| Investment in unconsolidated entity | | | 125,982 | | | | 126,930 | | | | 157,396 | | | | 177,211 | |
| Assets held for sale from discontinued operations | | | 341,286 | | | | 360,711 | | | | 386,155 | | | | 536,548 | |
| Other assets | | | 55,351 | | | | 50,611 | | | | 55,519 | | | | 50,802 | |
| Total assets | | $ | 4,404,642 | | | $ | 4,858,114 | | | $ | 4,217,511 | | | $ | 4,379,719 | |
| | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | |
| Demand and interest checking | | $ | 3,607,076 | | | $ | 3,816,524 | | | $ | 3,364,103 | | | $ | 3,610,003 | |
| Savings and money market | | | 428,723 | | | | 421,780 | | | | 402,832 | | | | 388,953 | |
| Total deposits | | | 4,035,799 | | | | 4,238,304 | | | | 3,766,935 | | | | 3,998,956 | |
| | | | | | | | | | | | | | | | | |
| Securities sold under agreements to repurchase | | | 273 | | | | 274 | | | | 353 | | | | 671 | |
| Short-term borrowings | | | - | | | | - | | | | 70,000 | | | | - | |
| Subordinated debenture | | | 13,401 | | | | 13,401 | | | | 13,401 | | | | 13,401 | |
| Long-term borrowings | | | - | | | | 263,099 | | | | - | | | | - | |
| Other liabilities | | | 45,400 | | | | 44,073 | | | | 27,744 | | | | 51,102 | |
| Total liabilities | | $ | 4,094,873 | | | $ | 4,559,151 | | | $ | 3,878,433 | | | $ | 4,064,130 | |
| | | | | | | | | | | | | | | | | |
| Shareholders' equity: | | | | | | | | | | | | | | | | |
| Common stock - authorized, 75,000,000 shares of $1.00 par value; 55,757,559 and 37,945,153 shares issued at March 31, 2017 and 2016, respectively | | | 55,758 | | | | 55,419 | | | | 55,419 | | | | 37,945 | |
| Treasury stock (100,000 shares) | | | (866 | ) | | | (866 | ) | | | (866 | ) | | | (866 | ) |
| Additional paid-in capital | | | 360,801 | | | | 360,564 | | | | 359,793 | | | | 301,018 | |
| Accumulated deficit | | | (103,978 | ) | | | (111,941 | ) | | | (83,169 | ) | | | (26,361 | ) |
| Accumulated other comprehensive income (loss) | | | (1,946 | ) | | | (4,213 | ) | | | 7,901 | | | | 3,853 | |
| Total shareholders' equity | | | 309,769 | | | | 298,963 | | | | 339,078 | | | | 315,589 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 4,404,642 | | | $ | 4,858,114 | | | $ | 4,217,511 | | | $ | 4,379,719 | |
| Average balance sheet and net interest income | | Three months ended March 31, 2017 | | | Three months ended March 31, 2016 | |
| | | (dollars in thousands) | |
| | | Average | | | | | | Average | | | Average | | | | | | Average | |
| Assets: | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Loans net of unearned fees and costs ** | | $ | 1,634,136 | | | $ | 17,371 | | | | 4.25 | % | | $ | 1,476,112 | | | $ | 15,556 | | | | 4.22 | % |
| Leases - bank qualified* | | | 21,180 | | | | 396 | | | | 7.48 | % | | | 27,798 | | | | 482 | | | | 6.94 | % |
| Investment securities-taxable | | | 1,325,247 | | | | 9,005 | | | | 2.72 | % | | | 1,149,101 | | | | 6,532 | | | | 2.27 | % |
| Investment securities-nontaxable* | | | 15,423 | | | | 111 | | | | 2.88 | % | | | 75,846 | | | | 493 | | | | 2.60 | % |
| Interest earning deposits at Federal Reserve Bank | | | 771,529 | | | | 1,516 | | | | 0.79 | % | | | 799,398 | | | �� | 902 | | | | 0.45 | % |
| Federal funds sold and securities purchased under agreement to resell | | | 49,829 | | | | 227 | | | | 1.82 | % | | | 7,422 | | | | 27 | | | | 1.46 | % |
| Net interest earning assets | | | 3,817,344 | | | | 28,626 | | | | 3.00 | % | | | 3,535,677 | | | | 23,992 | | | | 2.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | | | (6,221 | ) | | | | | | | | | | | (4,399 | ) | | | | | | | | |
| Assets held for sale from discontinued operations | | | 335,929 | | | | 3,361 | | | | 4.00 | % | | | 588,685 | | | | 5,819 | | | | 3.95 | % |
| Other assets | | | 276,597 | | | | | | | | | | | | 299,551 | | | | | | | | | |
| | | $ | 4,423,649 | | | | | | | | | | | $ | 4,419,514 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities and Shareholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand and interest checking | | $ | 3,653,505 | | | $ | 2,787 | | | | 0.31 | % | | $ | 3,471,909 | | | $ | 2,441 | | | | 0.28 | % |
| Savings and money market | | | 429,713 | | | | 647 | | | | 0.60 | % | | | 387,651 | | | | 225 | | | | 0.23 | % |
| Time | | | - | | | | - | | | | 0.00 | % | | | 206,393 | | | | 305 | | | | 0.59 | % |
| Total deposits | | | 4,083,218 | | | | 3,434 | | | | 0.34 | % | | | 4,065,953 | | | | 2,971 | | | | 0.29 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Repurchase agreements | | | 275 | | | | - | | | | 0.00 | % | | | 856 | | | | - | | | | 0.00 | % |
| Subordinated debt | | | 13,401 | | | | 138 | | | | 4.12 | % | | | 13,401 | | | | 124 | | | | 3.70 | % |
| Total deposits and interest bearing liabilities | | | 4,096,894 | | | | 3,572 | | | | 0.35 | % | | | 4,080,210 | | | | 3,095 | | | | 0.30 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Other liabilities | | | 20,234 | | | | | | | | | | | | 21,329 | | | | | | | | | |
| Total liabilities | | | 4,117,128 | | | | | | | | | | | | 4,101,539 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders' equity | | | 306,521 | | | | | | | | | | | | 317,975 | | | | | | | | | |
| | | $ | 4,423,649 | | | | | | | | | | | $ | 4,419,514 | | | | | | | | | |
| Net interest income on tax equivalent basis* | | | | | | $ | 28,415 | | | | | | | | | | | $ | 26,716 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent adjustment | | | | | | | 177 | | | | | | | | | | | | 341 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 28,238 | | | | | | | | | | | $ | 26,375 | | | | | |
| Net interest margin * | | | | | | | | | | | 2.70 | % | | | | | | | | | | | 2.56 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| * Full taxable equivalent basis, using a 35% statutory tax rate. | |
| ** Includes loans held for sale. | |
| Allowance for loan and lease losses: | | Three months ended | | | Year ended | | | | |
| | | March 31, | | | March 31, | | | December 31, | | | | |
| | | 2017 | | | 2016 | | | 2016 | | | | |
| | | (dollars in thousands) | | | | | | | |
| | | | | | | | | | | | | |
| Balance in the allowance for loan and lease losses at beginning of period (1) | | $ | 6,332 | | | $ | 4,400 | | | $ | 4,400 | | | | |
| | | | | | | | | | | | | | | | |
| Loans charged-off: | | | | | | | | | | | | | | | |
| SBA non real estate | | | - | | | | - | | | | 128 | | | | |
| Direct lease financing | | | 35 | | | | 20 | | | | 119 | | | | |
| Other consumer loans | | | 12 | | | | 12 | | | | 1,211 | | | | |
| Total | | | 47 | | | | 32 | | | | 1,458 | | | | |
| | | | | | | | | | | | | | | | |
| Recoveries: | | | | | | | | | | | | | | | |
| SBA non real estate | | | - | | | | - | | | | 1 | | | | |
| Direct lease financing | | | - | | | | 6 | | | | 17 | | | | |
| Other consumer loans | | | 9 | | | | 4 | | | | 12 | | | | |
| Total | | | 9 | | | | 10 | | | | 30 | | | | |
| Net charge-offs | | | 38 | | | | 22 | | | | 1,428 | | | | |
| Provision charged to operations | | | 1,000 | | | | - | | | | 3,360 | | | | |
| | | | | | | | | | | | | | | | |
| Balance in allowance for loan and lease losses at end of period | | $ | 7,294 | | | $ | 4,378 | | | $ | 6,332 | | | | |
| Net charge-offs/average loans | | | 0.00 | % | | | 0.00 | % | | | 0.09 | % | | | |
| Net charge-offs/average loans (annualized) | | | 0.01 | % | | | 0.01 | % | | | 0.09 | % | | | |
| Net charge-offs/average assets | | | 0.00 | % | | | 0.00 | % | | | 0.03 | % | | | |
| (1) Excludes activity from assets held for sale | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Loan portfolio: | | March 31, | | | December 31, | | | September 30, | | | March 31, | |
| | | 2017 | | | 2016 | | | 2016 | | | 2016 | |
| | | (dollars in thousands) | |
| | | | | | | | | | | | | | | | | |
| SBA non real estate | | $ | 75,800 | | | $ | 74,644 | | | $ | 74,262 | | | $ | 71,220 | |
| SBA commercial mortgage | | | 114,703 | | | | 126,159 | | | | 117,053 | | | | 120,415 | |
| SBA construction | | | 12,985 | | | | 8,826 | | | | 6,317 | | | | 9,736 | |
| Total SBA loans | | | 203,488 | | | | 209,629 | | | | 197,632 | | | | 201,371 | |
| Direct lease financing | | | 363,172 | | | | 346,645 | | | | 332,632 | | | | 240,670 | |
| SBLOC | | | 660,423 | | | | 630,400 | | | | 621,456 | | | | 592,656 | |
| Other specialty lending | | | 12,443 | | | | 11,073 | | | | 20,076 | | | | 48,153 | |
| Other consumer loans | | | 16,318 | | | | 17,374 | | | | 19,375 | | | | 21,782 | |
| | | | 1,255,844 | | | | 1,215,121 | | | | 1,191,171 | | | | 1,104,632 | |
| Unamortized loan fees and costs | | | 8,283 | | | | 7,790 | | | | 7,066 | | | | 9,421 | |
| Total loans, net of deferred loan fees and costs | | $ | 1,264,127 | | | $ | 1,222,911 | | | $ | 1,198,237 | | | $ | 1,114,053 | |
| | | | | | | | | | | | | | | | | |
| Small business lending portfolio: | | March 31, | | | December 31, | | | September 30, | | | March 31, | |
| | | 2017 | | | 2016 | | | 2016 | | | 2016 | |
| | | (dollars in thousands) | |
| | | | | | | | | | | | | | | | | |
| SBA loans, including deferred fees and costs | | | 209,980 | | | | 215,786 | | | | 203,196 | | | | 209,605 | |
| SBA loans included in HFS | | | 159,831 | | | | 154,016 | | | | 146,450 | | | | 124,763 | |
| Total SBA loans | | $ | 369,811 | | | $ | 369,802 | | | $ | 349,646 | | | $ | 334,368 | |
| Capital ratios: | | | | | Tier 1 capital to risk-weighted assets ratio | | | Total capital to risk-weighted assets ratio | | | Common equity tier 1 to risk weighted assets | |
| As of March 31, 2017 | | | | | | | | | | | | |
| The Bancorp, Inc. | | | 6.96 | % | | | 14.74 | % | | | 15.09 | % | | | 14.74 | % |
| The Bancorp Bank | | | 6.74 | % | | | 14.28 | % | | | 14.63 | % | | | 14.28 | % |
| "Well capitalized" institution (under FDIC regulations) | | | 5.00 | % | | | 8.00 | % | | | 10.00 | % | | | 6.50 | % |
| | | | | | | | | | | | | | | | | |
| As of December 31, 2016 | | | | | | | | | | | | | | | | |
| The Bancorp, Inc. | | | 6.90 | % | | | 13.34 | % | | | 13.63 | % | | | 13.34 | % |
| The Bancorp Bank | | | 6.84 | % | | | 13.24 | % | | | 13.53 | % | | | 13.24 | % |
| "Well capitalized" institution (under FDIC regulations) | | | 5.00 | % | | | 8.00 | % | | | 10.00 | % | | | 6.50 | % |
| | | Three months ended | | | Year ended | | | | |
| | | March 31, | | | December 31, | | | | |
| | | 2017 | | | 2016 | | | 2016 | | | | |
| Selected operating ratios: | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.73 | % | | nm | | | nm | | | | |
| Return on average equity (annualized) | | | 10.54 | % | | nm | | | nm | | | | |
| Net interest margin | | | 2.70 | % | | | 2.56 | % | | | 2.74 | % | | | |
| Book value per share | | $ | 5.57 | | | $ | 8.34 | | | $ | 5.40 | | | | |
| | | | | | | | | | | | | | | | |
| | | March 31, | | | December 31, | | | September 30, | | | March 31, | |
| | | 2017 | | | 2016 | | �� | 2016 | | | 2016 | |
| Asset quality ratios: | | | | | | | | | | | | | | | | |
Nonperforming loans to total loans (1) | | | 0.55 | % | | | 0.30 | % | | | 0.58 | % | | | 0.24 | % |
Nonperforming assets to total assets (1) | | | 0.16 | % | | | 0.08 | % | | | 0.16 | % | | | 0.06 | % |
| Allowance for loan and lease losses to total loans | | | 0.58 | % | | | 0.52 | % | | | 0.51 | % | | | 0.39 | % |
| | | | | | | | | | | | | | | | | |
| Nonaccrual loans | | $ | 5,369 | | | $ | 2,972 | | | $ | 4,021 | | | $ | 1,908 | |
| Other real estate owned | | | 104 | | | | 104 | | | | - | | | | - | |
| Total nonperforming assets | | $ | 5,473 | | | $ | 3,076 | | | $ | 4,021 | | | $ | 1,908 | |
| | | | | | | | | | | | | | | | | |
| Loans 90 days past due still accruing interest | | $ | 1,534 | | | $ | 661 | | | $ | 2,933 | | | $ | 787 | |
| | | | | | | | | | | | | | | | | |
(1) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest. | |
| | | | | | | | | | | | | | | | | |
| | | Three months ended | |
| | | March 31, | | | December 31, | | | September 30, | | | March 31, | |
| | | 2017 | | | 2016 | | | 2016 | | | 2016 | |
| | | (in thousands) | |
Gross dollar volume (GDV) (1): | | | | | | | | | | | | | | | | |
| Prepaid card GDV | | $ | 13,342,180 | | | $ | 10,647,520 | | | $ | 10,459,097 | | | $ | 13,512,318 | |
| | | | | | | | | | | | | | | | | |
(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp. | |
| Analysis of Walnut Street marks: | | | | | | |
| | | | | | | |
| | | Loan activity | | | Marks | |
| | | (dollars in millions) | |
| | | | | | | |
| Original Walnut Street loan balance 12/31/14 | | $ | 267 | | | | |
| Marks through 12/31/14 sale date | | | (58 | ) | | $ | (58 | ) |
| Sales price of Walnut Street | | | 209 | | | | | |
| Equity investment from independent investor | | | (16 | ) | | | | |
| 12/31/14 Bancorp book value | | | 193 | | | | | |
| Additional marks 2015 and 2016 | | | (42 | ) | | | (42 | ) |
| Payments received | | | (25 | ) | | | | |
| 3/31/17 Bancorp book value* | | $ | 126 | | | | | |
| | | | | | | | | |
| Total marks | | | | | | $ | (100 | ) |
| Divided by: | | | | | | | | |
| Original Walnut Street loan balance | | | | | | $ | 267 | |
| Percentage of total mark to original balance | | | | | | | 37 | % |
| | | | | | | | | |
| * Approximately 21% of expected principal recoveries were classified as non performing as of 3/31/17 | |
| | | | | | | | | |
| Walnut Street portfolio composition 3/31/17: | | | | | | | | |
| | | | | | | | | |
| Collateral type | | % of Portfolio | | | | | |
| Commercial real estate non-owner occupied | | | | | | | | |
| Retail | | | 26.7 | % | | | | |
| Office | | | 20.9 | % | | | | |
| Other | | | 19.4 | % | | | | |
| Construction and land | | | 21.0 | % | | | | |
| Commercial non real estate and industrial | | | 5.0 | % | | | | |
| First mortgage residential owner occupied | | | 3.4 | % | | | | |
| First mortgage residential non-owner occupied | | | 3.2 | % | | | | |
| Other | | | 0.4 | % | | | | |
| Total | | | 100.0 | % | | | | |
| Cumulative analysis of marks on discontinued commercial loan principal as of 3/31/17 | |
| | | | | | | | |
| | Discontinued loan principal | | | | | % to original principal | |
| | (dollars in millions) | |
| | | | | | | | |
| Commercial loan discontinued principal before marks | | $ | 269 | | | | | | | |
| Florida mall held in discontinued OREO | | | 42 | | | | 24 | | | | | |
| Previous mark charges | | | 20 | | | | 20 | | | | | |
| Mark at 3/31/17 | | | | | | | 27 | | | | | |
| Total | | $ | 331 | | | $ | 71 | | | | 21 | % |
| Analysis of large loan relationship principal, non performing loans and distribution of marks as of 3/31/17 | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | Performing | | | Non performing | | | Total | | | Performing | | | Non performing | | | Total | |
| | | loan principal | | | loan principal | | | loan principal | | | loan marks | | | loan marks | | | marks | |
| | | (in millions) | |
| | | | | | | | | | | | | | | | | | | |
| 12 loan relationships > $8 million | | $ | 160 | | | $ | 30 | | | $ | 190 | | | $ | 4 | | | $ | 12 | | | $ | 16 | |
| Loan relationships < $8 million | | | 32 | | | | 20 | | | | 52 | | | | 5 | | | | 6 | | | | 11 | |
| | | $ | 192 | | | $ | 50 | | | $ | 242 | | | $ | 9 | | | $ | 18 | | | $ | 27 | |
| Quarterly activity for commercial loan discontinued principal | |
| | | | |
| | | Commercial | |
| | | loan principal | |
| | | (in millions) | |
| | | | |
| Commercial loan discontinued principal 12/31/16 before marks | | $ | 324 | |
| Transfer of Florida mall to other real estate owned | | | (42 | ) |
| Net paydowns | | | (13 | ) |
| Commercial loan discontinued principal 3/31/17 before marks | | $ | 269 | |
| Marks at 3/31/17 | | | (27 | ) |
| Net commercial loan exposure 3/31/17 | | $ | 242 | |
| Residential mortgages | | | 66 | |
| Net loans | | $ | 308 | |
| Florida mall in other real estate owned | | | 18 | |
| Other 28 properties in other real estate owned | | | 15 | |
| Total discontinued assets at 3/31/17 | | $ | 341 | |
| Discontinued commercial loan composition as of 3/31/17 | | | | | | | |
| | | | | | | | | | |
| Collateral type | | Unpaid principal balance | | | Mark 3/31/17 | | | Mark as % of portfolio | |
| | | (dollars in millions) | |
| Commercial real estate - non-owner occupied: | | | | | | | | | |
| Retail | | $ | 14 | | | $ | 0.7 | | | | 5 | % |
| Office | | | 14 | | | | 0.2 | | | | 1 | % |
| Other | | | 50 | | | | 0.2 | | | | - | |
| Construction and land | | | 82 | | | | 3.3 | | | | 4 | % |
| Commercial non-real estate and industrial | | | 38 | | | | 15.9 | | | | 42 | % |
| 1 to 4 family construction | | | 29 | | | | 1.1 | | | | 4 | % |
| First mortgage residential non-owner occupied: | | | 20 | | | | 5.1 | | | | 25 | % |
| Commercial real estate owner occupied: | | | | | | | | | | | | |
| Retail | | | 10 | | | | 0.1 | | | | 1 | % |
| Office | | | - | | | | - | | | | - | |
| Other | | | 2 | | | | 0.1 | | | | 5 | % |
| First mortgage residential owner occupied | | | 4 | | | | 0.2 | | | | 5 | % |
| Residential junior mortgage | | | 3 | | | | 0.1 | | | | 3 | % |
| Other | | | 3 | | | | - | | | | - | |
| Total | | $ | 269 | | | $ | 27.0 | | | | 10 | % |
