The Bancorp, Inc. 8K Reports Fourth Quarter and Fiscal 2017 Financial Results | TBBK 25 Jan 18

Exhibit 99.1

The Bancorp, Inc. Reports Fourth Quarter and Fiscal 2017 Financial Results

Wilmington, DE – January 25, 2018 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the fourth quarter and full year 2017.

Highlights

·	Fourth quarter and full year pre tax income of $10.2 million and $40.4 million , respectively, from continuing operations

·	Net interest income increased 7% to $26.7 million for the quarter ended December 31, 2017, compared to $25.0 million for the quarter ended December 31, 2016.

·	Net interest margin increased to 3.11% for the quarter ended December 31, 2017, compared to 2.84% for the quarter ended December 31, 2016.

·	Prepaid fees for the quarter ended December 31, 2017 increased to $14.1 million, or 18%, compared to fourth quarter 2016.

·	Loans increased 14% to $1.39 billion at December 31, 2017, compared to $1.22 billion at December 31, 2016.

·	Security backed lines of credit ("SBLOC") increased 16% to $730.5 million at December 31, 2017, compared to $630.4 million at December 31, 2016.

·	Direct lease financing increased 9% to $378.0 million at December 31, 2017 compared to $346.6 million at December 31, 2016.

·	Small Business Administration ("SBA") loans increased 9% to $401.9 million at December 31, 2017, compared to $369.8 million at December 31, 2016.

·	The rate on average deposits and interest bearing liabilities of $3.71 billion in the fourth quarter of 2017 was 0.45% with a rate of 0.56% for $2.05 billion of average prepaid card deposits.

·	Assets held for sale from discontinued operations decreased 16% to $304.2 million at December 31, 2017, compared to $360.7 million at December 31, 2016.

·	Consolidated leverage ratio was 7.9% at December 31, 2017, after the deferred tax adjustment relating to the tax reform reduction in the corporate tax rate.

·	Book value per common share at December 31, 2017 was $5.81 per share. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.

Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "2017 was a year of accomplishments and transition for The Bancorp. We made significant progress in reducing the risk of the institution and greatly enhancing productivity and efficiency while setting the necessary conditions for future success."

While fourth quarter income before tax for continuing operations amounted to $10.2 million, a fourth quarter 2017 loss resulted from an additional tax provision of approximately $18 million resulting from the legislative change in tax rates applied to deferred tax assets. While the statutory federal rate was reduced from 34% to 21%, which reduced the carrying value of deferred tax assets, future income will be taxed at the 21% rate. The Bancorp reported net loss of $12.4 million, or $0.22 loss per diluted share, for the quarter ended December 31, 2017, compared to a net loss of $28.7 million, or $0.52 loss per diluted share for the quarter ended December 31, 2016. For full year 2017, Bancorp reported net income of $21.7 million, or $0.39 earnings per diluted share, compared to a net loss of $96.5 million, or $2.17 loss per diluted share, in full year 2016. The impact of deferred tax adjustments which reduced net income in 2017 is shown in the footnotes for return on assets and return on equity in the table section of this release. 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 7.90%, 16.75%, 17.11% and 16.75%, respectively, compared to well capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. In connection with the pending sale of a Florida mall property, a charge of $3.0 million was recorded in discontinued operations in the fourth quarter of 2017. The following is a reconciliation of pre tax income to adjusted operating earnings, a non-GAAP measure which reflects the financial impact of that charge:

	Three months ended
	December 31, 2017
	(in thousands)
Pretax income (loss):
Continuing operations	$	10,181
Discontinued operations		(1,429	)
Total		8,752
Add back:
Loss on mall		3,000
Pretax income excluding loss on mall (1)	$	11,752

(1)

As a supplement to GAAP, Bancorp has provided this non-GAAP performance measure. Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance. Management utilizes adjusted operating earnings to measure the combined impact of changes in net interest income, non-interest income and certain other expenses. Other companies may calculate adjusted operating earnings differently. Although this non-GAAP financial measure is intended to enhance investors' understanding of Bancorp's business and performance, it should not be considered, and is not intended to be, a substitute for net income calculated pursuant to GAAP.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, January 26, 2018 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 5485438. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, February 2, 2018 by dialing 855.859.2056, access code 5485438.

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 only subsidiary, 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 vehicle 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
	December 31,						December 31,
Condensed income statement	2017			2016			2017			2016
	(dollars in thousands except per share data)

Net interest income	$	26,687		$	24,978		$	106,680		$	89,966
Provision for loan and lease losses		770			1,550			2,920			3,360
Non-interest income
Service fees on deposit accounts		1,893			1,789			6,788			5,124
Card payment and ACH processing fees		1,722			1,343			6,318			5,526
Prepaid card fees		14,095			11,993			53,367			51,326
Gain on sale of loans		384			2,092			17,919			2,901
Gain on sale of investment securities		636			40			2,231			3,171
Change in value of investment in unconsolidated entity		-			(25,220	)		(20	)		(37,533	)
Leasing income		575			551			2,663			2,007
Affinity fees		100			1,056			1,545			4,563
Gain on sale of health savings accounts		-			-			2,538			-
Loss from sale of European prepaid card operations		-			-			(3,437	)		-
Other non-interest income		744			710			1,636			5,401
Total non-interest income		20,149			(5,646	)		91,548			42,486
Non-interest expense
Losses and write downs on other real estate owned		-			-			19			-
Bank Secrecy Act and lookback consulting expenses		-			5			-			29,081
One time fee to exit data processing contract		-			-			1,136			-
Civil money penalty		(210	)		-			2,290			-
Other non-interest expense		36,095			42,123			151,469			169,492
Total non-interest expense		35,885			42,128			154,914			198,573
Income (loss) from continuing operations before income tax expense		10,181			(24,346	)		40,394			(69,481	)
Income tax expense (benefit)		23,513			2,557			23,056			(12,664	)
Net income (loss) from continuing operations		(13,332	)		(26,903	)		17,338			(56,817	)
Discontinued operations
Income (loss) from discontinued operations before income taxes		(1,429	)		(5,044	)		4,059			(43,117	)
Income tax benefit		(2,326	)		(3,278	)		(276	)		(3,442	)
Net income (loss) from discontinued operations, net of tax		897			(1,766	)		4,335			(39,675	)
Net income (loss) available to common shareholders	$	(12,435	)	$	(28,669	)	$	21,673		$	(96,492	)

Net income (loss) per share from continuing operations - basic	$	(0.24	)	$	(0.49	)	$	0.31		$	(1.28	)
Net income (loss) per share from discontinued operations - basic	$	0.02		$	(0.03	)	$	0.08		$	(0.89	)
Net income (loss) per share - basic	$	(0.22	)	$	(0.52	)	$	0.39		$	(2.17	)

Net income (loss) per share from continuing operations - diluted	$	(0.24	)	$	(0.49	)	$	0.31		$	(1.28	)
Net income (loss) per share from discontinued operations - diluted	$	0.02		$	(0.03	)	$	0.08		$	(0.89	)
Net income (loss) per share - diluted	$	(0.22	)	$	(0.52	)	$	0.39		$	(2.17	)
Weighted average shares - basic		55,759,372			55,419,204			55,686,507			44,567,357
Weighted average shares - diluted		56,656,710			55,790,543			56,176,269			44,776,138

For loss periods the weighted averages shares - basic is used in both the basic and diluted computations.

Balance sheet	December 31,			September 30,			June 30,			December 31,
	2017			2017			2017			2016
	(dollars in thousands)
Assets:
Cash and cash equivalents
Cash and due from banks	$	3,152		$	5,813		$	6,458		$	4,127
Interest earning deposits at Federal Reserve Bank		841,471			328,023			475,387			955,733
Securities sold under agreements to resell		64,312			65,095			65,076			39,199
Total cash and cash equivalents		908,935			398,931			546,921			999,059

Investment securities, available-for-sale, at fair value		1,294,484			1,196,956			1,149,116			1,248,614
Investment securities, held-to-maturity		86,380			86,402			93,419			93,467
Loans held for sale, at fair value		503,316			380,272			542,819			663,140
Loans, net of deferred fees and costs		1,392,228			1,374,060			1,370,263			1,222,911
Allowance for loan and lease losses		(7,096	)		(7,283	)		(7,353	)		(6,332	)
Loans, net		1,385,132			1,366,777			1,362,910			1,216,579
Federal Home Loan Bank & Atlantic Community Bancshares stock		991			991			6,211			1,613
Premises and equipment, net		20,051			21,087			22,004			24,125
Accrued interest receivable		10,900			10,131			10,880			10,589
Intangible assets, net		5,377			5,185			5,515			6,906
Other real estate owned		593			-			-			104
Deferred tax asset, net		34,802			53,017			53,226			55,666
Investment in unconsolidated entity		74,473			107,711			120,862			126,930
Assets held for sale from discontinued operations		304,170			314,994			336,246			360,711
Other assets		78,543			51,164			53,888			50,611
Total assets	$	4,708,147		$	3,993,618		$	4,304,017		$	4,858,114

Liabilities:
Deposits
Demand and interest checking	$	3,806,965		$	3,113,212		$	3,437,482		$	3,816,524
Savings and money market		453,877			452,183			438,602			421,780
Total deposits		4,260,842			3,565,395			3,876,084			4,238,304

Securities sold under agreements to repurchase		217			180			273			274
Subordinated debenture		13,401			13,401			13,401			13,401
Long-term borrowings		42,323			42,482			42,680			263,099
Other liabilities		67,214			32,699			40,560			44,073
Total liabilities	$	4,383,997		$	3,654,157		$	3,972,998		$	4,559,151

Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value; 55,861,150 and 55,419,204 shares issued at December 31, 2017 and 2016, respectively		55,861			55,860			55,858			55,419
Treasury stock (100,000 shares)		(866	)		(866	)		(866	)		(866	)
Additional paid-in capital		363,196			362,340			361,478			360,564
Accumulated deficit		(89,484	)		(77,850	)		(85,114	)		(111,941	)
Accumulated other comprehensive loss		(4,557	)		(23	)		(337	)		(4,213	)
Total shareholders' equity		324,150			339,461			331,019			298,963

Total liabilities and shareholders' equity	$	4,708,147		$	3,993,618		$	4,304,017		$	4,858,114

Average balance sheet and net interest income	Three months ended December 31, 2017								Three months ended December 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 **	$	1,749,644		$	19,764		4.52	%	$	1,717,927		$	18,374		4.28	%
Leases - bank qualified*		19,510			383		7.85	%		21,018			414		7.88	%
Investment securities-taxable		1,329,508			9,132		2.75	%		1,371,209			8,437		2.46	%
Investment securities-nontaxable*		13,119			119		3.63	%		37,529			156		1.66	%
Interest earning deposits at Federal Reserve Bank		386,796			1,241		1.28	%		403,834			560		0.55	%
Federal funds sold and securities purchased under agreement to resell		64,839			379		2.34	%		39,485			151		1.53	%
Net interest earning assets		3,563,416			31,018		3.48	%		3,591,002			28,092		3.13	%

Allowance for loan and lease losses		(7,079	)							(5,781	)
Assets held for sale from discontinued operations		311,005			3,062		3.94	%		377,044			3,238		3.44	%
Other assets		190,465								257,469
	$	4,057,807							$	4,219,734

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	3,205,273		$	3,319		0.41	%	$	3,405,296		$	2,182		0.26	%
Savings and money market		454,038			545		0.48	%		407,039			498		0.49	%
Total deposits		3,659,311			3,864		0.42	%		3,812,335			2,680		0.28	%

Short-term borrowings		38,250			138		1.44	%		55,913			96		0.69	%
Securities sold under agreements to repurchase		219			-		0.00	%		304			-		0.00	%
Subordinated debentures		13,401			153		4.57	%		13,401			137		4.09	%
Total deposits and interest bearing liabilities		3,711,181			4,155		0.45	%		3,881,953			2,913		0.30	%

Other liabilities		14,820								18,896
Total liabilities		3,726,001								3,900,849

Shareholders' equity		331,806								318,885
	$	4,057,807							$	4,219,734
Net interest income on tax equivalent basis*				$	29,925							$	28,417

Tax equivalent adjustment					176								200

Net interest income				$	29,749							$	28,217
Net interest margin *							3.11	%							2.84	%

* Full taxable equivalent basis, using a 35% statutory tax rate.
** Includes loans held for sale.

Average balance sheet and net interest income	Year ended December 31, 2017								Year ended December 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 **	$	1,763,392		$	78,033		4.43	%	$	1,587,306		$	66,436		4.19	%
Leases - bank qualified*		20,750			1,613		7.77	%		20,718			1,748		8.44	%
Investment securities-taxable		1,284,941			36,121		2.81	%		1,303,445			31,219		2.40	%
Investment securities-nontaxable*		14,094			470		3.33	%		54,271			1,139		2.10	%
Interest earning deposits at Federal Reserve Bank		495,568			5,202		1.05	%		466,728			2,237		0.48	%
Federal funds sold and securities purchased under agreement to resell		61,309			1,310		2.14	%		30,448			450		1.48	%
Net interest-earning assets		3,640,054			122,749		3.37	%		3,462,916			103,229		2.98	%

Allowance for loan and lease losses		(6,865	)							(4,741	)
Assets held for sale		310,058			12,655		4.08	%		490,115			18,275		3.73	%
Other assets		221,097								266,777
	$	4,164,344							$	4,215,067

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	3,371,969		$	12,155		0.36	%	$	3,347,191		$	9,399		0.28	%
Savings and money market		439,625			2,263		0.51	%		394,434			1,526		0.39	%
Time		-			-		0.00	%		77,576			447		0.58	%
Total deposits		3,811,594			14,418		0.38	%		3,819,201			11,372		0.30	%

Short-term borrowings		24,224			336		1.39	%		57,517			359		0.62	%
Securities sold under agreements to repurchase		239			-		0.00	%		685			2		0.29	%
Subordinated debentures		13,401			586		4.37	%		13,401			520		3.88	%
Total deposits and interest bearing liabilities		3,849,458			15,340		0.40	%		3,890,804			12,253		0.31	%

Other liabilities		3,329								14,916
Total liabilities		3,852,787								3,905,720

Shareholders' equity		311,557								309,347
	$	4,164,344							$	4,215,067
Net interest income on tax equivalent basis*				$	$120,064							$	$109,251

Tax equivalent adjustment					729								1,010

Net interest income				$	119,335							$	108,241
Net interest margin *							3.04	%							2.74	%

* Full taxable equivalent basis, using a 35% statutory tax rate.
** Includes loans held for sale.

Allowance for loan and lease losses:	Year ended			Year ended
	December 31,			December 31,
	2017			2016
	(dollars in thousands)

Balance in the allowance for loan and lease losses at beginning of period (1)	$	6,332		$	4,400

Loans charged-off:
SBA non real estate		1,171			128
SBA commercial mortgage		-			-
Direct lease financing		926			119
Other consumer loans		110			1,211
Total		2,207			1,458

Recoveries:
SBA non real estate		18			1
Direct lease financing		7			17
Other consumer loans		26			12
Total		51			30
Net charge-offs		2,156			1,428
Provision charged to operations		2,920			3,360

Balance in allowance for loan and lease losses at end of period	$	7,096		$	6,332
Net charge-offs/average loans		0.12	%		0.09	%
Net charge-offs/average assets		0.05	%		0.03	%
(1) Excludes activity from assets held for sale.

Loan portfolio:	December 31,			September 30,			June 30,		December 31,
	2017			2017			2017		2016
	(dollars in thousands)

SBA non real estate	$	71,263		$	72,055		$	74,511	$	74,644
SBA commercial mortgage		142,086			132,997			126,224		126,159
SBA construction		16,740			14,205			11,057		8,826
Total SBA loans		230,089			219,257			211,792		209,629
Direct lease financing		378,029			369,069			371,002		346,645
SBLOC		730,462			720,279			718,707		630,400
Other specialty lending		30,720			36,664			44,389		11,073
Other consumer loans		14,133			20,107			15,858		17,374
		1,383,433			1,365,376			1,361,748		1,215,121
Unamortized loan fees and costs		8,795			8,684			8,515		7,790
Total loans, net of deferred loan fees and costs	$	1,392,228		$	1,374,060		$	1,370,263	$	1,222,911

Small business lending portfolio:	December 31,			September 30,			June 30,		December 31,
	2017			2017			2017		2016
	(dollars in thousands)

SBA loans, including deferred fees and costs		236,724			225,909			218,253		215,786
SBA loans included in HFS		165,177			160,855			158,389		154,016
Total SBA loans	$	401,901		$	386,764		$	376,642	$	369,802

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 December 31, 2017
The Bancorp, Inc.	7.90%	16.75%	17.11%	16.75%
The Bancorp Bank	7.61%	16.22%	16.58%	16.22%
"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
	December 31,		December 31,
	2017	2016	2017	2016
Selected operating ratios:
Return on average assets (annualized) ⁽¹⁾	nm	nm	0.52%	nm
Return on average equity (annualized) ⁽¹⁾	nm	nm	6.96%	nm
Net interest margin	3.11%	2.84%	3.04%	2.74%
Book value per share	$ 5.81	$ 5.40	$ 5.81	$ 5.40

	Three months ended			Year ended
	December 31, 2017			December 31, 2017

Net income (loss) available to common shareholders	$	(12,435	)	$	21,673
Add:
Q4 deferred tax adjustment: change in rate due to tax reform		18,000			18,000
Subtract:
Q2 reversal of deferred tax valuation allowance		-			(10,940	)
Adjusted net income available to common shareholders	$	5,565		$	28,733
Divided by:
Average assets		4,057,807			4,164,344
Adjusted ROA ⁽¹⁾		0.55	%		0.69	%

	Three months ended			Year ended
	December 31, 2017			December 31, 2017

Net income (loss) available to common shareholders	$	(12,435	)	$	21,673
Add:
Q4 deferred tax adjustment: change in rate due to tax reform		18,000			18,000
Subtract:
Q2 reversal of deferred tax valuation allowance		-			(10,940	)
Adjusted net income available to common shareholders	$	5,565		$	28,733
Divided by:
Average equity		331,806			311,557
Adjusted ROE⁽¹⁾		6.71	%		9.22	%

⁽¹⁾As a supplement to GAAP, Bancorp has provided this non-GAAP performance measure. Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance. Management utilizes adjusted operating earnings to measure the combined impact of changes in net interest income, non-interest income and certain other expenses. Other companies may calculate adjusted operating earnings differently. Although this non-GAAP financial measure is intended to enhance investors' understanding of Bancorp's business and performance, it should not be considered, and is not intended to be, a substitute for net income calculated pursuant to GAAP.

	December 31,			September 30,			June 30,			December 31,
	2017			2017			2017			2016
Asset quality ratios:
Nonperforming loans to total loans⁽²⁾		0.30	%		0.39	%		0.41	%		0.30	%
Nonperforming assets to total assets ⁽²⁾		0.10	%		0.13	%		0.13	%		0.08	%
Allowance for loan and lease losses to total loans		0.51	%		0.53	%		0.54	%		0.52	%

Nonaccrual loans	$	3,996		$	4,953		$	5,115		$	2,972
Other real estate owned		593			-			104			104
Total nonperforming assets	$	4,589		$	4,953		$	5,219		$	3,076

Loans 90 days past due still accruing interest	$	227		$	354		$	494		$	661

⁽²⁾ Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.

	Three months ended
	December 31,			September 30,			June 30,			December 31,
	2017			2017			2017			2016
	(in thousands)
Gross dollar volume (GDV) ⁽¹⁾:
Prepaid card GDV	$	10,963,456		$	10,970,085		$	11,894,601		$	10,647,520

⁽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, 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 and 2016		(42	)		(42	)
Payments received		(77	)
December 31, 2017 Bancorp book value*	$	74

Total marks				$	(100	)
Divided by:
Original Walnut Street loan balance				$	267
Percentage of total mark to original balance					37	%

* Approximately 28% of expected principal recoveries were classified as nonperforming as of December 31, 2017.

Walnut Street portfolio composition as of December 31, 2017

Collateral type	% of Portfolio
Commercial real estate non-owner occupied
Retail	44.6%
Office	14.2%
Other	3.3%
Construction and land	23.5%
Commercial non real estate and industrial	4.6%
First mortgage residential owner occupied	4.8%
First mortgage residential non-owner occupied	3.9%
Other	1.1%
Total	100.0%

Cumulative analysis of marks on discontinued commercial loan principal as of December 31, 2017

	Discontinued			Cumulative			% to original
	loan principal			marks			principal
	(dollars in millions)

Commercial loan discontinued principal before marks		$	225		$	-
Florida mall held in discontinued OREO			42			27
Previous mark charges			33			33
Mark at December 31, 2017						16
Total		$	300		$	76		25	%

Analysis of large loan relationship principal, nonperforming loans and distribution of marks as of December 31, 2017

	Performing		Nonperforming		Total		Performing		Nonperforming		Total
	loan principal		loan principal		loan principal		loan marks		loan marks		marks
	(in millions)

9 loan relationships > $8 million	$	153	$	5	$	158	$	6	$	-	$	6
Loan relationships < $8 million		40		11		51		4		6		10
	$	193	$	16	$	209	$	10	$	6	$	16

Quarterly activity for commercial loan discontinued principal

	Commercial
	loan principal
	(in millions)

Commercial loan discontinued principal December 31, 2016 before marks	$	324
Transfer of Florida mall to other real estate owned		(42	)
2017 net paydowns		(44	)
2017 chargedowns of loans from marks taken in prior years		(13	)
Commercial loan discontinued principal December 31, 2017 before marks		225
Marks at December 31, 2017		(16	)
Net commercial loan exposure December 31, 2017		209
Residential mortgages		61
Net loans		270
Florida mall in other real estate owned prior to Q4 write down		18
Write down of Florida mall in Q4		(3	)
Other 29 properties in other real estate owned		19
Total discontinued assets at December 31, 2017	$	304

Discontinued commercial loan composition as of December 31, 2017

Collateral type	Unpaid principal balance			Mark December 31, 2017		Mark as % of portfolio
	(dollars in millions)
Commercial real estate - non-owner occupied:
Retail	$	13		$	0.8		6	%
Office		8			0.2		3	%
Other		43			0.2		0	%
Construction and land		85			1.8		2	%
Commercial non-real estate and industrial		16			3.3		21	%
1 to 4 family construction		26			4.3		17	%
First mortgage residential non-owner occupied		19			4.9		26	%
Commercial real estate owner occupied:
Retail		10			-		0	%
Office		-			-		-
Other		2			-		0	%
Residential junior mortgage		1			-		0	%
Other		2			-		0	%
Total	$	225
Less: mark		(16	)
Net commercial loan exposure December 31, 2017	$	209		$	15.5		7	%

The Bancorp, Inc. (TBBK) 8-KThe Bancorp, Inc. Reports Fourth Quarter and Fiscal 2017 Financial Results