Exhibit 99.1
The Bancorp, Inc. Reports Fourth Quarter and Fiscal 2007 Earnings
Wilmington, DE – February 7, 2008 - The Bancorp, Inc. (“Bancorp”) (Nasdaq NM: TBBK)
Fourth Quarter and Fiscal 2007 Financial highlights:
| • | Closed the Stored Value Solutions transaction in the fourth quarter resulting in an increase in transaction account balances of $159.5 million |
| • | Net income increased 15% over fiscal 2006 to $14.2 million |
| • | Loans increased 20.8 % in fiscal 2007 to $1.287 billion |
Bancorp, a bank holding company, reported net income available to common shareholders for the three months ended December 31, 2007 of $2.9 million, or $0.20 diluted earnings per share, based on 14,382,223 diluted shares, compared to net income available to common shareholders of $3.1 million, or $0.21 diluted earnings per share, based on 14,398,485 diluted shares, for the three months ended December 31, 2006. Bancorp reported net income available to common shareholders for fiscal 2007 of $14.2 million, or $0.98 diluted earnings per share, based on 14,396,069 diluted shares, compared to net income available to common shareholders of $12.3 million, or $0.86 diluted earnings per share, based on 14,304,164 diluted shares, for fiscal 2006.
The provision for loan and lease losses increased to $3.2 million for the fourth quarter of 2007 as compared to $850,000 for the fourth quarter of 2006. Net charge-offs for the fourth quarter of 2007 were $2.4 million of which approximately $2.2 million were for commercial loans and $200,000 was related to a construction loan. The provision for loan and lease losses for the fourth quarter of 2007 increased to $3.2 million from $750,000 for the third quarter of 2007. The allowance for loan and lease losses to total loans was 0.80% at December 31, 2007. Nonperforming assets, which include loans past due 90 days or more still accruing interest, were $9.8 million December 31, 2007 as compared to $668,000 at December 31, 2006.
At December 31, 2007, Bancorp’s total assets were $1.568 billion, an increase of $233 million or 17.5% from December 31, 2006. Loans grew to $1.287 billion, an increase of $221.9 million or 20.8% from those of December 31, 2006, and deposits increased to $1.278 billion, an increase of $209.1 million or 19.5%, from deposits at December 31, 2006. Total common shares outstanding were 14,560,470 at December 31, 2007 and 13,724,023 at December 31, 2006.
Conference Call Webcast
Interested parties can access the LIVE webcast of Bancorp’s Quarterly Earnings Conference Call at 11:00 AM EST on Thursday, February 7, 2008 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 Thursday, February 14, 2008, by dialing 888-286-8010, access code 49214952.
About Bancorp
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 both directly and through private-label affinity partner programs nationwide. The Bancorp Bank’s 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 December 31, | Twelve months ended December 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| (dollars in thousands except per share data) | (dollars in thousands except per share data) | |||||||||||||||
| Condensed income statement | ||||||||||||||||
Net interest income | $ | 13,550 | $ | 11,954 | $ | 52,669 | $ | 44,273 | ||||||||
Provision for loan and lease losses | 3,150 | 850 | 5,400 | 2,975 | ||||||||||||
Non-interest income | 3,272 | 1,216 | 7,614 | 5,038 | ||||||||||||
Non-interest expense | 8,766 | 6,448 | 31,205 | 25,505 | ||||||||||||
Net income before income tax expense | 4,906 | 5,872 | 23,678 | 20,831 | ||||||||||||
Income tax expense | 1,925 | 2,679 | 9,338 | 8,331 | ||||||||||||
Net income | 2,981 | 3,193 | 14,340 | 12,500 | ||||||||||||
Less preferred stock dividends and accretion | (16 | ) | (18 | ) | (68 | ) | (75 | ) | ||||||||
Income allocated to Series A preferred shareholders | (23 | ) | (27 | ) | (115 | ) | (110 | ) | ||||||||
Net income available to common shareholders | $ | 2,942 | $ | 3,148 | $ | 14,157 | $ | 12,315 | ||||||||
Basic earnings per share | $ | 0.21 | $ | 0.22 | $ | 1.02 | $ | 0.90 | ||||||||
Diluted earnings per share | $ | 0.20 | $ | 0.21 | $ | 0.98 | $ | 0.86 | ||||||||
Weighted average shares—basic | 14,068,772 | 13,706,406 | 13,859,066 | 13,673,730 | ||||||||||||
Weighted average shares—diluted | 14,382,223 | 14,398,485 | 14,396,069 | 14,304,164 | ||||||||||||
| December 31, 2007 | September 30, 2007 | June 30, 2007 | December 31, 2006 | |||||||||||||
| Condensed balance sheet | ||||||||||||||||
Assets | ||||||||||||||||
Federal funds sold | $ | 40,783 | $ | 87,394 | $ | 136,290 | $ | 122,048 | ||||||||
Investment securities | 122,215 | 117,790 | 115,810 | 115,946 | ||||||||||||
Loans | 1,286,789 | 1,262,333 | 1,181,391 | 1,064,819 | ||||||||||||
Allowance for loan and lease losses | (10,233 | ) | (9,527 | ) | (9,387 | ) | (8,400 | ) | ||||||||
Other assets | 128,427 | 50,197 | 44,309 | 40,425 | ||||||||||||
Total assets | $ | 1,567,981 | $ | 1,508,187 | $ | 1,468,413 | $ | 1,334,838 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||||||
Transaction accounts | $ | 864,253 | $ | 705,858 | $ | 716,202 | 611,286 | |||||||||
Time deposits | 414,064 | 400,066 | 434,885 | 457,969 | ||||||||||||
Total deposits | 1,278,317 | 1,105,924 | 1,151,087 | 1,069,255 | ||||||||||||
Other borrowings | 93,846 | 233,845 | 152,823 | 108,145 | ||||||||||||
Subordinated debt | 13,000 | — | — | — | ||||||||||||
Other liabilities | 6,558 | 5,834 | 7,579 | 8,530 | ||||||||||||
Shareholder’s equity | 176,260 | 162,584 | 156,924 | 148,908 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,567,981 | $ | 1,508,187 | $ | 1,468,413 | $ | 1,334,838 | ||||||||
| Fourth quarter average 2007 | Third quarter average 2007 | Second quarter average 2007 | Fourth quarter average 2006 | |||||||||||||
| Average condensed balance sheet | ||||||||||||||||
Assets | ||||||||||||||||
Federal funds sold | $ | 31,880 | $ | 30,536 | $ | 70,432 | $ | 61,665 | ||||||||
Investment securities | 118,313 | 114,361 | 112,343 | 114,406 | ||||||||||||
Loans | 1,269,324 | 1,213,002 | 1,132,682 | 990,788 | ||||||||||||
Allowance for loan and lease losses | (9,863 | ) | (9,748 | ) | (9,221 | ) | (7,915 | ) | ||||||||
Other assets | 60,842 | 43,868 | 37,405 | 37,514 | ||||||||||||
Total assets | $ | 1,470,496 | $ | 1,392,019 | $ | 1,343,641 | $ | 1,196,458 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||||||
Transaction accounts | $ | 731,571 | $ | 725,666 | $ | 743,402 | $ | 503,019 | ||||||||
Time deposits | 423,617 | 385,387 | 404,912 | 495,311 | ||||||||||||
Total deposits | 1,155,188 | 1,111,053 | 1,148,314 | 998,330 | ||||||||||||
Total borrowings | 144,937 | 116,144 | 30,512 | 42,505 | ||||||||||||
Other liabilities | 6,325 | 6,876 | 9,977 | 8,175 | ||||||||||||
Shareholders’ equity | 164,046 | 157,946 | 154,838 | 147,448 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,470,496 | $ | 1,392,019 | $ | 1,343,641 | $ | 1,196,458 | ||||||||
| December 31, 2007 Amount | September 30, 2007 Amount | June 30, 2007 Amount | December 31, 2006 Amount | |||||||||||||
| Loan Portfolio | ||||||||||||||||
Commercial | $ | 325,166 | $ | 282,339 | $ | 256,362 | $ | 199,397 | ||||||||
Commercial mortgage | 369,124 | 383,397 | 355,717 | 327,639 | ||||||||||||
Construction | 307,614 | 314,543 | 297,007 | 275,079 | ||||||||||||
Total commercial loans | 1,001,904 | 980,279 | 909,086 | 802,115 | ||||||||||||
Direct financing leases, net | 89,519 | 89,564 | 88,076 | 92,947 | ||||||||||||
Residential mortgage | 50,193 | 50,553 | 53,743 | 62,413 | ||||||||||||
Consumer loans and others | 144,882 | 142,221 | 130,598 | 108,374 | ||||||||||||
| 1,286,498 | 1,262,617 | 1,181,503 | 1,065,849 | |||||||||||||
Unamortized costs (fees) | 291 | (284 | ) | (112 | ) | (1,030 | ) | |||||||||
Total loans, net of unamortized fees and costs | $ | 1,286,789 | $ | 1,262,333 | $ | 1,181,391 | $ | 1,064,819 | ||||||||
| Three months ended December 31, | Twelve Months ended December 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Selected operating ratios | ||||||||||||||||
Return on average assets | 0.81 | % | 1.07 | % | 1.04 | % | 1.19 | % | ||||||||
Return on average equity | 7.27 | % | 8.66 | % | 9.15 | % | 8.90 | % | ||||||||
Net interest margin | 3.80 | % | 4.09 | % | 3.90 | % | 4.32 | % | ||||||||
Efficiency ratio | 52.11 | % | 50.11 | % | 51.76 | % | 51.72 | % | ||||||||
Book value per share | $ | 12.01 | $ | 10.76 | $ | 12.01 | $ | 10.76 | ||||||||
Tangible book value per share | $ | 7.78 | $ | 10.48 | $ | 7.78 | $ | 10.48 | ||||||||
| As of or for the period ended December 31, | ||||||||
| 2007 | 2006 | |||||||
| Asset quality ratios | ||||||||
Nonperforming loans to total loans | 0.76 | % | 0.06 | % | ||||
Nonperforming assets to total assets | 0.63 | % | 0.05 | % | ||||
Allowance for loan and lease losses to total loans | 0.80 | % | 0.79 | % | ||||
Nonaccrual loans | $ | 1,169 | $ | — | ||||
Loans 90 days past due still accruing interest | $ | 8,673 | $ | 668 | ||||