The Bancorp, Inc. Reports Second Quarter 2006 Earnings
Wilmington, De – July 31, 2006 — The Bancorp, Inc. (“Bancorp”) (Nasdaq NM: TBBK)
Second Quarter 2006 Financial highlights:
•
Diluted earnings per share for the three months ended June 30, 2006 increased 83.3% to $0.22 compared to $0.12 for the three months ended June 30, 2005
•
Total loans increased 23.7% to $842.8 million at June 30, 2006 from $681.6 million at December 31, 2005
•
Efficiency ratio decreased to 53.04% for the three months ended June 30, 2006 from 58.87% for the three months ended June 30, 2005
•
Net interest margin increased to 4.43% for the three months ended June 30, 2006 from 4.20% for the three months ended June 30, 2005
Bancorp, a bank holding company, reported net income available to common shareholders for the three months ended June 30, 2006 of $3.1 million, or $0.22 diluted earnings per share compared to net income available to common shareholders of $1.5 million, or $0.12 diluted earnings per share, for the three months ended June 30, 2005. On January 1, 2006, Bancorp adopted Statement of Financial Accounting Standards (FAS) 123 ®, “Share-Based Payments”, requiring the expensing of our stock compensation plans based on the fair value of the awards. The impact of the adoption of FAS 123® is included in the financial results for the second quarter of 2006 ($92,000 of non-interest expense). The second quarter of 2005 is shown on a pro forma basis in the condensed income statement, as a result of the adoption of the modified prospective method.
Bancorp reported net income available to common shareholders for the six months ended June 30, 2006 of $5.9 million, or $0.42 diluted earnings per share compared to net income available to common shareholders of $1.8 million, or $0.15 diluted earnings per share, for the six months ended June 30, 2005. The impact of the adoption of FAS 123® is included in the financial results for the six months ended June 30, 2006 ($184,000 of non-interest expense). The six months ended June 30, 2005 is shown on a pro forma basis in the condensed income statement.
At June 30, 2006, Bancorp’s total assets were $1.1 billion, an increase of $187.9 million or 20.5% from December 31, 2005. Loans grew to $842.8 million, an increase of $161.2 million or 23.7% from those of December 31, 2005, and deposits grew to $896.9 million, an increase of $164.3 million or 22.2%, from deposits at December 31, 2005. Total common shares outstanding were 13,673,823 at June 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 11:30 AM EDT on Tuesday, August 1, 2006 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 Tuesday, August 8, 2006 by dialing 888-286-8010, access code 51925918.
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
1
The Bancorp, Inc. Financial highlights (unaudited)
Three months ended
Six months ended
June 30,
June 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
$
10,808
$
7,362
$
21,034
$
13,832
Provision for loan and lease losses
700
550
1,300
1,050
Non-interest income
1,433
1,291
2,733
2,305
Non-interest expense
6,493
5,094
12,866
9,858
Net income from operations
5,048
3,009
9,601
5,229
Payment expense from redemption of trust preferred
subordinated debt
—
—
—
(1,285
)
Net income before income tax expense
5,048
3,009
9,601
3,944
Income tax expense
1,880
1,127
3,578
1,496
Net income
3,168
1,882
6,023
2,448
Less preferred stock dividends and accretion
(27
)
(204
)
(54
)
(408
)
Income allocated to Series A preferred shareholders
(20
)
(141
)
(40
)
(186
)
Net income available to common shareholders
$
3,121
$
1,537
$
5,929
$
1,854
Basic earnings per share excluding loss from early redemption
of trust preferred securities net of tax expense of $436,000
$
0.23
$
0.12
$
0.43
$
0.21
Basic earnings per share from early redemption
of trust preferred securities net of tax expense of $436,000
$
—
$
—
$
—
$
(0.06
)
Basic earnings per share
$
0.23
$
0.12
$
0.43
$
0.15
Diluted earnings per share excluding loss from early redemption
of trust preferred securities net of tax expense of $436,000
$
0.22
$
0.12
$
0.42
$
0.21
Diluted earnings per share from early redemption
of trust preferred securities net of tax expense of $436,000
$
—
$
—
$
—
$
(0.06
)
Diluted earnings per share
$
0.22
$
0.12
$
0.42
$
0.15
Weighted average shares — basic
13,666,113
12,414,366
13,651,127
12,305,548
Weighted average shares — diluted
14,302,418
12,849,131
14,242,107
12,699,731
Pro forma calculation of net income and
earnings per share for FAS 123® (1)
Net income as reported
$
1,882
$
2,448
Less stock-based compensation costs under fair value
method for all awards
—
(1,769
)
Pro forma net (loss) income
1,882
679
Less preferred stock dividends and accretion
(204
)
(408
)
Less preferred stock dividends and accretion
(141
)
(51
)
Net loss available to common shareholders
1,537
220
Basic earnings per share, pro forma
$
0.12
$
0.02
Diluted earnings per share, pro forma
$
0.12
$
0.02
June 30,
March 31,
December 31,
June 30,
2006
2006
2005
2005
Condensed balance sheet
Assets
Federal funds sold
$
118,918
$
129,623
$
89,437
$
4,858
Investment securities
113,725
113,603
103,596
107,860
Loans
842,822
761,783
681,582
556,421
Allowance for loan and lease losses
(6,751
)
(6,074
)
(5,513
)
(4,610
)
Other assets
36,645
33,554
48,369
72,437
Total assets
$
1,105,359
$
1,032,489
$
917,471
$
736,966
Liabilities and shareholders’ equity
Transaction accounts
$
479,691
$
510,151
$
467,826
$
323,972
Time deposits
417,164
335,911
264,762
233,094
Total deposits
896,855
846,062
732,588
557,066
Other borrowings
64,569
44,985
46,908
45,252
Other liabilities
3,210
4,025
3,028
3,964
Shareholder’s equity
140,725
137,417
134,947
130,684
Total liabilities and shareholders’ equity
$
1,105,359
$
1,032,489
$
917,471
$
736,966
Second
First
Fourth
Second
quarter
quarter
quarter
quarter
average 2006
average 2006
average 2005
average 2005
Average condensed balance sheet
Assets
Federal funds sold
$
57,762
$
67,130
$
63,742
$
65,345
Investment securities
112,885
110,689
104,888
105,558
Loans
803,704
701,090
631,554
530,003
Allowance for loan and lease losses
(6,359
)
(5,775
)
(5,268
)
(4,278
)
Other assets
35,614
38,092
42,237
37,173
Total assets
$
1,003,606
$
911,226
$
837,153
$
733,801
Liabilities and shareholders’ equity
Transaction accounts
$
474,392
$
452,304
$
413,473
$
347,151
Time deposits
348,607
271,170
259,073
212,781
Total deposits
822,999
723,474
672,546
559,932
Other borrowings
37,130
48,700
28,492
43,322
Trust preferred
—
—
—
—
Guaranteed preferred interest in Company’s
subordinated debt
—
—
—
Other liabilities
4,972
3,344
2,176
3,324
Shareholders’ equity
138,505
135,708
133,939
127,223
Total liabilities and shareholders’ equity
$
1,003,606
$
911,226
$
837,153
$
733,801
June 30,
March 31,
December 31,
June 30,
2006
2006
2005
2005
Amount
Amount
Amount
Amount
Loan Portfolio
Commercial
$
136,892
$
121,756
$
119,654
$
96,775
Commercial mortgage
238,406
222,746
190,153
167,185
Construction
227,842
199,292
168,149
133,962
Total commercial loans
603,140
543,794
477,956
397,922
Direct financing leases, net
92,729
90,145
81,162
73,863
Residential mortgage
67,823
64,658
62,378
47,115
Consumer loans and others
79,867
63,961
61,017
38,205
843,559
762,558
682,513
557,105
Unamortized costs
(737
)
(775
)
(931
)
(684
)
Total loans, net of unamortized fees and costs
$
842,822
$
761,783
$
681,582
$
556,421
Three months ended
Six months ended
June 30,
June 30,
2006
2005
2006
2005
Selected operating ratios
Return on average assets
1.26
%
1.03
%
1.26
%
0.73
%
Return on average equity
9.15
%
5.92
%
8.80
%
3.91
%
Net interest margin
4.43
%
4.20
%
4.53
%
4.31
%
Efficiency ratio
53.04
%
58.87
%
54.13
%
69.05
%
Book value per share
$
10.20
$
9.61
$
10.20
$
9.61
As of or for the period ended
June 30,
2006
2005
Asset quality ratios
Nonperforming loans to total loans
0.04
%
0.20
%
Nonperforming assets to total assets
0.03
%
0.15
%
Allowance for loan and lease losses to total loans
0.80
%
0.83
%
Nonaccrual loans
$
—
$
205
Loans 90 days past due still accruing interest
$
313
$
1,087
(1) As disclosed in Form 10-Q for the three months ended June 30, 2005
2
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