The Bancorp, Inc. Reports Third Quarter 2006 Earnings
Wilmington, De -- October 30, 2006 - The Bancorp, Inc. ("Bancorp") (Nasdaq NM: TBBK)
Third Quarter 2006 Financial highlights:
- Diluted earnings per share for the three months ended September 30, 2006 increased 91.7% to $0.23 compared to $0.12 for the three months ended September 30, 2005
- Total loans increased 54.6% to $947.5 million at September 30, 2006 from $612.7 million at September 30, 2005
- Efficiency ratio improved to 50.04% for the three months ended September 30, 2006 from 57.74% for the three months ended September 30, 2005
Bancorp, a bank holding company, reported net income available to common shareholders for the three months ended September 30, 2006 of $3.2 million, or $0.23 diluted earnings per share compared to net income available to common shareholders of $1.7 million, or $0.12 diluted earnings per share, for the three months ended September 30, 2005. Bancorp reported net income available to common shareholders for the nine months ended September 30, 2006 of $9.2 million, or $0.64 diluted earnings per share compared to net income available to common shareholders of $3.7 million, or $0.28 diluted earnings per share, for the nine months ended September 30, 2005.
At September 30, 2006, Bancorp's total assets were $1.3 billion, an increase of $335.6 million or 36.6% from December 31, 2005. Loans grew to $947.5 million, an increase of $265.9 million or 39.0% from those of December 31, 2005, and deposits grew to $1.0 billion, an increase of $288.9 million or 39.4%, from deposits at December 31, 2005. Total common shares outstanding were 13,703,437 at September 30, 2006 and 13,637,148 at December 31, 2005.
Conference Call Webcast
Interested parties can access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 11:00 AM EST on Tuesday, October 31, 2006 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 Tuesday, November 7, 2006 by dialing 888-286-8010, access code 88727911.
About Bancorp
Bancorp, a bank holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity partner programs nationwide. The Bancorp Bank, through Philadelphia Private Bank, 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
The Bancorp, Inc. | |||||||
Financial highlights | |||||||
(unaudited) | |||||||
Three months ended | Nine Months ended | ||||||
September 30, | September 30, | ||||||
2006 | 2005 | 2006 | 2005 | ||||
(dollars in thousands except per share data) | (dollars in thousands except per share data) | ||||||
Condensed income statement | |||||||
Net interest income | $ 11,285 | $ 8,755 | $ 32,319 | $ 22,587 | |||
Provision for loan and lease losses | 825 | 550 | 2,125 | 1,600 | |||
Non-interest income | 1,089 | 970 | 3,822 | 3,275 | |||
Non-interest expense | 6,191 | 5,615 | 19,057 | 15,473 | |||
Net income from operations | 5,358 | 3,560 | 14,959 | 8,789 | |||
Payment expense from redemption of trust preferred | |||||||
subordinated debt | - | - | - | (1,285) | |||
Net income before income tax expense | 5,358 | 3,560 | 14,959 | 7,504 | |||
Income tax expense | 2,074 | 1,254 | 5,652 | 2,750 | |||
Net income | 3,284 | 2,306 | 9,307 | 4,754 | |||
Less preferred stock dividends and accretion | (29) | (170) | (83) | (578) | |||
Less preferred stock conversion premium | - | (459) | - | (459) | |||
Income allocated to Series A preferred shareholders | (17) | (21) | (57) | (45) | |||
Net income available to common shareholders | $ 3,238 | $ 1,656 | $ 9,167 | $ 3,672 | |||
Basic earnings per share excluding the preferred stock | |||||||
conversion premium | $ 0.24 | $ 0.16 | $ 0.67 | $ 0.33 | |||
Basic earnings per share from preferred stock | |||||||
conversion premium | $ - | $ (0.04) | $ - | $ (0.04) | |||
Basic earnings per share | $ 0.24 | $ 0.12 | $ 0.67 | $ 0.29 | |||
Diluted earnings per share excluding the preferred stock | |||||||
conversion premium | $ 0.23 | $ 0.16 | $ 0.64 | $ 0.32 | |||
Diluted earnings per share from the preferred stock | |||||||
conversion premium | $ - | $ (0.04) | $ - | $ (0.04) | |||
Diluted earnings per share | $ 0.23 | $ 0.12 | $ 0.64 | $ 0.28 | |||
Weighted average shares - basic | 13,685,520 | 12,917,879 | 13,662,718 | 12,540,093 | |||
Weighted average shares - diluted | 14,341,277 | 13,426,497 | 14,273,151 | 12,948,421 | |||
Pro forma calculation of net income and | |||||||
earnings per share for FAS 123(R) (1) | |||||||
Net income as reported | $ 2,306 | $ 4,754 | |||||
Add stock-based compensation expense included in reported net | |||||||
income, net of related tax effects | $ 12 | $ 12 | |||||
Less stock-based compensation costs under fair value | |||||||
method for all awards | (55) | (1,838) | |||||
Pro forma net (loss) income | 2,263 | 2,928 | |||||
Less preferred stock dividends and accretion | (170) | (578) | |||||
Less preferred stock conversion premium | (459) | (459) | |||||
Less preferred stock dividends and accretion | (21) | (45) | |||||
Net loss available to common shareholders | 1,613 | 1,846 | |||||
Basic earnings per share, pro forma | $ 0.12 | $ 0.15 | |||||
Diluted earnings per share, pro forma | $ 0.12 | $ 0.14 | |||||
September 30, | June 30, | December 31, | September 30, | ||||
2006 | 2006 | 2005 | 2005 | ||||
Condensed balance sheet | |||||||
Assets | |||||||
Federal funds sold | $ 156,222 | $ 118,918 | $ 89,437 | $ 85,811 | |||
Investment securities | 115,477 | 113,725 | 103,596 | 105,888 | |||
Loans | 947,501 | 842,822 | 681,582 | 612,712 | |||
Allowance for loan and lease losses | (7,583) | (6,751) | (5,513) | (5,075) | |||
Other assets | 41,447 | 36,645 | 48,369 | 39,493 | |||
Total assets | $ 1,253,064 | $ 1,105,359 | $ 917,471 | $ 838,829 | |||
Liabilities and shareholders' equity | |||||||
Transaction accounts | $ 509,868 | $ 479,687 | $ 467,826 | $ 381,941 | |||
Time deposits | 511,600 | 417,164 | 264,762 | 275,762 | |||
Total deposits | 1,021,468 | 896,851 | 732,588 | 657,703 | |||
Other borrowings | 81,181 | 64,569 | 46,908 | 45,546 | |||
Other liabilities | 4,990 | 3,213 | 3,028 | 2,487 | |||
Shareholder's equity | 145,425 | 140,726 | 134,947 | 133,093 | |||
Total liabilities and shareholders' equity | $ 1,253,064 | $ 1,105,359 | $ 917,471 | $ 838,829 | |||
Third | Second | Fourth | Third | ||||
quarter | quarter | quarter | quarter | ||||
Average condensed balance sheet | average 2006 | average 2006 | average 2005 | average 2005 | |||
Assets | |||||||
Federal funds sold | $ 57,148 | $ 57,762 | $ 63,742 | $ 43,474 | |||
Investment securities | 113,337 | 112,885 | 104,888 | 107,112 | |||
Loans | 899,369 | 803,704 | 631,554 | 583,119 | |||
Allowance for loan and lease losses | (7,022) | (6,359) | (5,268) | (4,805) | |||
Other assets | 34,382 | 35,614 | 42,237 | 28,398 | |||
Total assets | $ 1,097,214 | $ 1,003,606 | $ 837,153 | $ 757,298 | |||
Liabilities and shareholders' equity | |||||||
Transaction accounts | $ 464,223 | $ 474,392 | $ 413,473 | $ 335,500 | |||
Time deposits | 443,585 | 348,607 | 259,073 | 239,012 | |||
Total deposits | 907,808 | 822,999 | 672,546 | 574,512 | |||
Other borrowings | 43,765 | 37,130 | 28,492 | 48,178 | |||
Other liabilities | 4,368 | 4,972 | 2,176 | 2,109 | |||
Shareholders' equity | 141,273 | 138,505 | 133,939 | 132,499 | |||
Total liabilities and shareholders' equity | $ 1,097,214 | $ 1,003,606 | $ 837,153 | $ 757,298 | |||
Loan Portfolio | |||||||
September 30, | June 30, | December 31, | September 30, | ||||
2006 | 2006 | 2005 | 2005 | ||||
Amount | Amount | Amount | Amount | ||||
Commercial | $ 154,750 | $ 136,892 | $ 119,654 | $ 98,067 | |||
Commercial mortgage | 287,719 | 238,406 | 190,153 | 187,040 | |||
Construction | 245,338 | 227,842 | 168,149 | 156,442 | |||
Total commercial loans | 687,807 | 603,140 | 477,956 | 441,549 | |||
Direct financing leases, net | 93,447 | 92,729 | 81,162 | 74,895 | |||
Residential mortgage | 62,763 | 67,823 | 62,378 | 46,183 | |||
Consumer loans and others | 104,174 | 79,867 | 61,017 | 50,928 | |||
948,191 | 843,559 | 682,513 | 613,555 | ||||
Unamortized costs | (690) | (737) | (931) | (843) | |||
Total loans, net of unamortized fees and costs | $ 947,501 | $ 842,822 | $ 681,582 | $ 612,712 | |||
Three months ended | Nine months ended | ||||||
September 30 , | September 30, | ||||||
2006 | 2005 | 2006 | 2005 | ||||
Selected operating ratios | |||||||
Return on average assets | 1.20% | 1.22% | 1.24% | 0.90% | |||
Return on average equity | 9.30% | 6.96% | 8.97% | 4.96% | |||
Net interest margin | 4.21% | 4.77% | 4.41% | 4.47% | |||
Efficiency ratio | 50.04% | 57.74% | 52.73% | 59.98% | |||
Book value per share | $ 10.52 | $ 9.70 | $ 10.52 | $ 9.70 | |||
As of or for the period ended | |||||||
September 30, | |||||||
Asset quality ratios | 2006 | 2005 | |||||
Nonperforming loans to total loans | 0.77% | 0.04% | |||||
Nonperforming assets to total assets | 0.58% | 0.03% | |||||
Allowance for loan and lease losses to total loans | 0.80% | 0.83% | |||||
Nonaccrual loans | $ - | $ - | |||||
Loans 90 days past due still accruing interest | $ 7,266 | $ 247 | |||||
(1) As disclosed in Form 10-Q for the three and nine months ended September 30, 2005 |