The Bancorp, Inc. Reports Third Quarter 2005 Earnings
Wilmington, Del. — October 25, 2005 — The Bancorp, Inc. (“Bancorp”) (Nasdaq NM: TBBK)
Financial highlights:
| • | Return on average assets for the three months ended September 30, 2005 increased to 1.22% from 0.66% at September 30, 2004 |
| • | Loans increased $265.4 million or 76.4% from September 30, 2004 |
| • | Total assets grew to $838.8 million an increase of $306.5 million from September 30, 2004 |
Bancorp, a financial holding company, reported net income available to common shareholders for the three months ended September 30, 2005 of $1.7 million, or $0.12 diluted earnings per share, including a non-recurring expense of $459,000 ($0.04 per diluted share) related to a preferred stock conversion dividend, compared to net income available to common shareholders of $609,000, or $0.05 diluted earnings per share, for the three months ended September 30, 2004. Bancorp reported net income available to common shareholders for the nine months ended September 30, 2005 of $3.7 million, or $0.28 diluted earnings per share, including non-recurring expenses of $1.3 million ($0.06 per diluted share) related to the early redemption of trust preferred subordinated debt and $459,000 ($0.04 per diluted share) related to preferred stock conversion dividends, compared to net income available to common shareholders for the nine months ended September 30, 2004 of $1.0 million, or $0.10 diluted earnings per share.
At September 30, 2005, Bancorp’s total assets were $838.8 million, an increase of $262.6 million or 45.6% from December 31, 2004. Loans grew to $612.7 million an increase of $184.8 million or 43.2% from those of December 31, 2004, and deposits grew to $657.7 million, an increase of $269.6 million or 69.5% during the same period. Total common shares outstanding were 13,588,935 at September 30, 2005 and 11,888,061 at December 31, 2004.
Conference Call Webcast
Interested parties can access the LIVE webcast of Bancorp’s Quarterly Earnings Conference Call at 8:30 AM EDT on Wednesday, October 26, 2005 by clicking on the webcast link on Bancorp’s homepage atwww.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, November 2, 2005 by dialing 888-286-8010, access code 93639922.
About The Bancorp, Inc.
The Bancorp, Inc. is 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
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The Bancorp, Inc.
Financial highlights
(unaudited)
| Three months ended | Nine months ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||||
| (dollars in thousands except per share data) | ||||||||||||||||||||||||
Condensed income statement | ||||||||||||||||||||||||
| Net interest income | $ | 8,755 | $ | 4,766 | $ | 22,587 | $ | 12,150 | ||||||||||||||||
| Provision for loan and lease losses | 550 | 250 | 1,600 | 982 | ||||||||||||||||||||
| Non-interest income | 970 | 744 | 3,275 | 2,163 | ||||||||||||||||||||
| Non-interest expense | 5,670 | 4,431 | 15,790 | 11,555 | ||||||||||||||||||||
| Net income from operations | 3,505 | 829 | 8,472 | 1,776 | ||||||||||||||||||||
| Payment expense from redemption of trust preferred | ||||||||||||||||||||||||
| subordinated debt | — | — | (1,285 | ) | — | |||||||||||||||||||
| Net income before income tax expense | 3,505 | 829 | 7,187 | 1,776 | ||||||||||||||||||||
| Income tax expense | 1,199 | — | 2,433 | — | ||||||||||||||||||||
| Net income | 2,306 | 829 | 4,754 | 1,776 | ||||||||||||||||||||
| Less preferred stock dividends and accretion | (171 | ) | (149 | ) | (579 | ) | (600 | ) | ||||||||||||||||
| Income allocated to Series A preferred shareholders | (21 | ) | (71 | ) | (45 | ) | (152 | ) | ||||||||||||||||
| Less preferred stock conversion dividend | (459 | ) | — | (459 | ) | — | ||||||||||||||||||
| Net income available to common shareholders | $ | 1,655 | $ | 609 | (1) | $ | 3,671 | $ | 1,024 | (1) | ||||||||||||||
| Basic earnings per share net of preferred stock | ||||||||||||||||||||||||
| conversion dividend | $ | 0.16 | $ | 0.05 | $ | 0.33 | $ | 0.10 | ||||||||||||||||
| Basic earnings per share from preferred stock | ||||||||||||||||||||||||
| conversion dividend | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | — | ||||||||||||||
| Basic earnings per share | $ | 0.12 | $ | 0.05 | $ | 0.29 | $ | 0.10 | ||||||||||||||||
| Diluted earnings per share net of preferred stock | ||||||||||||||||||||||||
| conversion dividend | $ | 0.16 | $ | 0.05 | $ | 0.32 | $ | 0.10 | ||||||||||||||||
| Diluted earnings per share from preferred stock | ||||||||||||||||||||||||
| conversion dividend | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | — | ||||||||||||||
| Diluted earnings per share | $ | 0.12 | $ | 0.05 | $ | 0.28 | $ | 0.10 | ||||||||||||||||
| Weighted average shares — basic | 12,917,879 | 11,617,580 | (2) | 12,540,093 | 9,774,875 | (2) | ||||||||||||||||||
| Weighted average shares — diluted | 13,426,497 | 11,712,362 | (2) | 12,948,421 | 9,823,047 | (2) | ||||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | |||||||||||||
| 2005 | 2005 | 2004 | 2004 | |||||||||||||
Condensed balance sheet | ||||||||||||||||
| Assets | ||||||||||||||||
| Federal funds sold | $ | 85,811 | $ | 4,858 | $ | 8,291 | $ | 53,604 | ||||||||
| Investment securities | 105,888 | 107,860 | 120,252 | 113,810 | ||||||||||||
| Loans | 612,712 | 556,421 | 427,881 | 347,275 | ||||||||||||
| Allowance for loan and lease losses | (5,075 | ) | (4,610 | ) | (3,593 | ) | (2,955 | ) | ||||||||
| Other assets | 39,493 | 72,437 | 23,448 | 20,561 | ||||||||||||
| Total assets | $ | 838,829 | $ | 736,966 | $ | 576,279 | $ | 532,295 | ||||||||
| Liabilities and shareholders’ equity | ||||||||||||||||
| Transaction accounts | 381,941 | $ | 323,972 | $ | 205,249 | $ | 221,942 | |||||||||
| Time deposits | 275,762 | 233,094 | 182,832 | 137,109 | ||||||||||||
| Total deposits | 657,703 | 557,066 | 388,081 | 359,051 | ||||||||||||
| Other borrowings | 45,546 | 45,252 | 60,052 | 47,372 | ||||||||||||
| Trust preferred subordinated debt | — | — | 5,413 | 5,413 | ||||||||||||
| Other liabilities | 2,487 | 3,964 | 1,331 | 1,119 | ||||||||||||
| Shareholder’s equity | 133,093 | 130,684 | 121,402 | 119,340 | (3) | |||||||||||
| Total liabilities and shareholders’ equity | $ | 838,829 | $ | 736,966 | $ | 576,279 | $ | 532,295 | ||||||||
| Third | Second | Fourth | Third | |||||||||||||
| quarter | quarter | quarter | quarter | |||||||||||||
| average 2005 | average 2005 | average 2004 | average 2004 | |||||||||||||
Average condensed balance sheet | ||||||||||||||||
| Assets | ||||||||||||||||
| Federal funds sold | $ | 43,474 | $ | 65,345 | $ | 36,749 | $ | 35,422 | ||||||||
| Investment securities | 107,112 | 105,558 | 116,518 | 113,523 | ||||||||||||
| Loans | 583,119 | 530,003 | 383,800 | 332,736 | ||||||||||||
| Allowance for loan and lease losses | (4,805 | ) | (4,278 | ) | (3,050 | ) | (2,844 | ) | ||||||||
| Other assets | 28,398 | 37,173 | 18,839 | 20,117 | ||||||||||||
| Total assets | $ | 757,298 | $ | 733,801 | $ | 552,856 | $ | 498,954 | ||||||||
| Liabilities and shareholders’ equity | ||||||||||||||||
| Transaction accounts | $ | 335,499 | $ | 347,151 | $ | 228,990 | $ | 208,366 | ||||||||
| Time deposits | 239,013 | 212,781 | 150,291 | 132,192 | ||||||||||||
| Total deposits | 574,512 | 559,932 | 379,281 | 340,558 | ||||||||||||
| Other borrowings | 48,178 | 43,322 | 47,769 | 38,883 | ||||||||||||
| Trust preferred | 5,413 | |||||||||||||||
| Guaranteed preferred interest in Company’s | ||||||||||||||||
| subordinated debt | — | — | — | 5,250 | ||||||||||||
| Other liabilities | 2,109 | 3,324 | 392 | 968 | ||||||||||||
| Shareholders’ equity | 132,499 | 127,223 | 120,001 | 113,295 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 757,298 | $ | 733,801 | $ | 552,856 | $ | 498,954 | ||||||||
| September 30, 2005 | June 30, 2005 | December 31, 2004 | September 30, 2004 | |||||||||||||
| Amount | Amount | Amount | Amount | |||||||||||||
Loan Portfolio | ||||||||||||||||
| Commercial | $ | 98,067 | $ | 96,775 | $ | 89,327 | $ | 58,082 | ||||||||
| Commercial mortgage | 187,040 | 167,185 | 140,755 | 122,731 | ||||||||||||
| Construction | 156,442 | 133,962 | 97,239 | 78,461 | ||||||||||||
| Total commercial loans | 441,549 | 397,922 | 327,321 | 259,274 | ||||||||||||
| Direct financing leases, net | 74,895 | 73,863 | 44,795 | 42,860 | ||||||||||||
| Residential mortgage | 46,183 | 47,115 | 31,388 | 26,980 | ||||||||||||
| Consumer loans and others | 50,928 | 38,205 | 24,894 | 18,198 | ||||||||||||
| 613,555 | 557,105 | 428,398 | 347,312 | |||||||||||||
| Unamortized costs | (843 | ) | (684 | ) | (517 | ) | (37 | ) | ||||||||
| Total loans, net of unamortized fees and costs | $ | 612,712 | $ | 556,421 | $ | 427,881 | $ | 347,275 | ||||||||
| Three months ended | Nine Months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
Selected operating ratios | ||||||||||||||||
| Return on average assets | 1.22 | % | 0.66 | % | 0.90 | % | 0.54 | % | ||||||||
| Return on average equity | 6.96 | % | 2.93 | % | 5.16 | % | 2.47 | % | ||||||||
| Net interest margin | 4.77 | % | 3.95 | % | 4.47 | % | 3.79 | % | ||||||||
| Efficiency ratio | 58.3 | % | 80.4 | % | 61.1 | % | 80.7 | % | ||||||||
| Book value per share | $ | 9.70 | $ | 9.18 | $ | 9.70 | $ | 9.18 | ||||||||
| As of or for the period ended | ||||||||
| September 30, | ||||||||
| 2005 | 2004 | |||||||
Asset quality ratios | ||||||||
| Nonperforming loans to total loans | 0.04 | % | 0.06 | % | ||||
| Nonperforming assets to total assets | 0.03 | % | 0.04 | % | ||||
| Allowance for loan and lease losses to total loans | 0.83 | % | 0.85 | % | ||||
| Nonaccrual loans | $ | — | $ | — | ||||
| Loans 90 days past due still accruing interest | $ | 247 | $ | 205 | ||||
| (1) The September 30, 2004 net income reflects the December 2004 reorganization by eliminating the minority interest previously presented. |
| (2) The September 30, 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. |
| (3) The September 30, 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. |
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