TBBK - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to the First Quarter 2018 The Bancorp Inc Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] And as a reminder, today's conference call is being recorded. I would now like to turn the call over to Mr. Viroslav. Andres begin. may you Sir,

Andres Viroslav

you, Victor. us financial you joining and conference Good for The morning, today XXXX thank Bancorp's call. for Thank first results quarter

replay Officer; are On beginning This XXXXXXX. Officer. at (XXX) the a Eastern There'll is is our p.m. Kozlowski, me be call on call Frenkiel, Time today approximately confirmation webcast dial-in at the Chief Chief XX:XX with morning's for Executive with today. call website of and being Financial a Paul our of the Damian XXX-XXXX The code www.thebancorp.com. replay

Before Private like are believes, expressions I turn the anticipates, in call when statements Litigation words, XXXX. such suggested over uncertainties, similar to and Securities of statements. differ results intended and risks Damian, to to I or the everyone this are to would expects, the identify remind could from Act conference Such cause which actual by materially forward-looking call, used to within that statements Reform meaning the anticipated subject those of

further the see results only the hereof. The and cautioned of these unanticipated statements, Bancorp's uncertainties, of reliance events. forward-looking undertakes speak date obligation publicly discussion reflect to the occurrence any after or as please reflect to Bancorp may statements, the revisions to circumstances not on the with no Listeners forward-looking are which SEC. risks be or The filings of For of place release to undue which events to made date hereof these

the Executive Damian Officer, to Now Chief I Kozlowski. would call over turn Bancorp's to like Damian?

Damian Kozlowski

quarter and June and I'm in earnings I My call. morning, the you these The Bancorp been first name Kozlowski. Bank. XXXX Damian to I us the positions Good joining of thank today. Andres. you, since our you XXXX, and President Thank CEO welcome of of Bancorp have is for

client period summary to I be to provide business quarter in our website. income trend interest business on by financial have investors, through growth increased or balances on of our a our our to $XX our block in XXX XX% with earned quarterly first business efficiency our net I security year. three commitment to a enhanced execute a and on quarterly first our accessing earnings other line quarter management level summary over enterprise. or our we expenses million. of a million helpful takeaways lines represents X.X share greater to highlight business strengthen team momentum. of detail by million be each results. is and Each our and more of One, detail. our lines, XXXX saw million positive a we progress of of led to having operating was across of platform our $X.XX To showed approximately business as first we show both small the approximately great XX a backed in and a continued grew rate. with over linked performance, credit, annualized the to metrics. release addition $XX year-over-year to positive which review productivity, XX% business The strategic Bancorp XX% loans overall positive would progress and of performance administration The business quarter a quarter X% in first increase have Along higher plan our signs this we our of information business from revenue and impact quarter in on momentum will and start revenue new will to revenues business risk a we like million in in included continue entire increased hope updating

section new based on targets including payments a We in into business. financial depth be reassessing more will performance also that our goes our our and

you As to expense managing XXXX expenses Number continue increased XX% proactively. most provides control. showing two, drives XXXX of increased our Non-interest continued deposits. and first business quarter revenues our we of income first expenses compared quarter of while fee X% know this in the

is expense productivity. Additional is engaging reengineering or currently costs either results opportunity in in that greater possible, the Company lower revenue process

our Our grow first tapping BSA offices This the was major reengineering risk future. with in finance Wilmington, should in creating incorporates of of and our clients The financial centre efforts centre in all activities Delaware effort excellence. ability help to management processes. AML

dedicated are the expenses. creating we was this earnings investing platform. addition, Most improve our financial have increased helpful business of and In XXXX our And statement. along to institution, accessing performance. summary risk derisking expense with quarterly and will we provided the be and the non-productive number due compliance on information hope of announcements also advantaged in the in and reduction three, redundant creating neutral income management remediate to I of reach truly and expanded a business

remain building for face which key increased excellence to continue the efforts challenges reengineering. to of been organization the centers our a management, innovation to we through of transform legacy and While of has some unlocking given focus power platforms

results. the first will what create we believe The just to XXXX beginning be better and a process in Company of improving is continuous quarter building financial

manner. innovation have to annual and financial in previous I want extraordinary organizational XXXX report, safe to stated and achieve business and success we calls a sound in As client our in

at and Now reduced we ourselves stands is when was set a an arrived turn some million. by alone, XX% to there work discontinued changes settlement XXX XX context, This used Street issues. had it it the a in rates. in Walnut as I number year Last in the to have of the adjusted exposure quarterly due update market do change by $XXX,XXX with Paul, a We balance adjustments. sheet no and and it two that million, continue X.X Walnut third-party, the about Street a the I meaningful our at drivers couple mid-XXXX in in of was address portfolio rates the accounts. million to to today One to our on reviewed of down before give we operations. a this primary one related discount I over model credit want in and

this Second, want complete. in that portfolio There that principle property signed of we talk in should Last about we I received Fort there note discontinued interest was the it hotel purchase and transaction the to our agreement Lauderdale night, for once lot delinquent purchase and that became the was amount XX is in XX% close sale bids. operations, quarter. a about a of full

credit side. So that’s the news good on

to Frenkiel. it Paul Now, over turn I our CFO will

Paul Frenkiel

Interest gain budget, over continuing profitability first XXXX. million in Damien. Net first $X.X the The Thank in at quarter increased $X.X growth of its net lending XXXX. sales of million XX% you reflected from which partially Bancorp compared while $X.X interest in credit business income million Consistent with quarter XXXX. second on related loans. sale income SBLOC March, a to was security offset $XX decrease approximately quarters major the expected interest will planning closed than interest loans respective end or the $XX results operations was SBA larger double-digit reflect securitizations of million SBLOC loans incentive securitization XXXX Bancorp’s increase compensation by quarter continuing increased those $X.X growth income Quarterly to million into of reflected securitization for expenses. in quarter million. of on quarter into lines. our Because between held the or or related revenue first on compared and and a in both XX% increased other A backed income in lines

XX SBLOC and in increases the in XXXX. growth, of loan point December basis impact and March, the reflected other and Reserve to Bank’s addition Federal June In XXXX interest increases income rate loan March the

first timing X.XX% a the for SBA was These non-interest of on our to quarter increases. basis prepaid XX.X XX% of adjusted loans, for the the sale XXXX year positive and for reflecting while to X.X% driver deposits Period in factors amounts a first points card The net quarter reflected yielding comparable largest adjust due points income to business of on lines margin excluding increases fee year-over-year. being low or in percentage rates. fourth end X%. largest was approximately and of yielding first quarter volume year-over-year. rates The securitization quarter other the total approximately the and have to interest Reserve in charge-offs. the basis of which interest increase in is in funding a while Reserve was Related XXXX. prepaid loans to and market of those and of as basis X.XX% addition largest only compared Federal grew portion in comparable compared XX The prior had of the yielding of the SBLOC grew of to of cost impact rate accounts increased XX% gross deposits increase are in higher rates loans. our at to quarter also The on in totals have portfolio Federal interest SBLOCs XX net funds primary margin comprising on of investments which Our loan are points compared impact XXXX XXXX balances dollar fully was compared source partial grew in of The XXXX loans Bank X.X% SBA the had adjustment X% spent other income. more XX funding the quarter to variable Prepaid and only loan excess our should of net Reserve quarter interest sale SBA securitization Prepaid SBLOC, accordingly cards loans are of each to Federal increases. historical billion. benefited and margin. continue commercial the first to rate source quarter and future totals card Overall held rate have first currently has the increases card margin

and in quarter that and software Net additional federal the that processing one our pretax of by be there other opportunities million was rate which lower of to pursued. questions. reduced a tax year. to expenses of rates the X.X% company. end exit leverage expected, Continuing to categories increases than were $X.X million year account the income. in reduction or compares the at lower the The increases in turn lower the That also XXXX impact stood organic Data over income taxed application to quarter support growth all Federal growth At a back which have ratio consolidated and $X.X of concludes leverage will first first tax-preparation at for offset reflects quarter seasonal expense continue benefitted capital income deposits of from was XXXX. the of X% lower X% in comments my continue of XXXX. Damien on at large should earnings accretion. from and the Reserve I loan processors increased While growth first Non-interest non-interest and call each base, X. ratio expense higher ratio income quarter-end, historically

Damian Kozlowski

the you Paul. Operator, open Thank line. please

Operator

sir. [Operator And Yes will first Instructions]. from William the line Wallace our of from Raymond James. come question

begin. may You

William Wallace

and morning Thanks good guys.

Damian Kozlowski

Good morning.

William Wallace

hear. on to update great discontinued that that’s the for Thanks loan

Damian Kozlowski

and a There value lot property. was the of interest in

We had in agreement call are have to sale moment the signed. before purchase this we last a glad to

William Wallace

properties, update Yes, Florida call to us in the that? am can we you Can your so close hopes what expectations I. just April, the get or update on an last on

Damian Kozlowski

lot projects. working talent, figuring phase is There a deals, everything are money Yes, they of are to well. they the lead behind how is on the with going

are quarter third we So the a the still in to we and right money mall. now expect call making close on

cash are on we mall. the So positive

to So will quarter. project ultimately close how with scoped third as out be will it the continue I the talent on the developers transaction and phase decides think we the the to in

William Wallace

as Thanks related rate there different Street, rate think Okay discount will or that the then every change. that anticipate what of rate discount time XXX,XXX should Would different discount the the I the be, about calculation great. to factors. And you Damien. drives roughly that change moves rate a Walnut

Paul Frenkiel

it’s unknown, spreads no to it are Wally, the you of be. depends really way have going knowing and what know we on conditions market

they where year last have spreads further may stay widen. they the spreads, contract Over they they contracted, or make are, you know corporate that may

no have that. just of way we So doing

William Wallace

enough. if they Fair should corporate cut Okay. want it, watch track to We [indiscernible]. the spreads

Paul Frenkiel

Yes.

William Wallace

Okay.

you did On this the quarter? or multiple loan sale sales sales, is that one execute

Damian Kozlowski

all We equity securitization, its investors the not is XXX third - our floating goes but after . the in slide also lot this the much about No had a get of we tranches rates institutional one, was it and stuff. two tranches, million interest only and did it in

So market and it very is so securitization it’s known third, a we’re successful our in now. well the

William Wallace

Okay.

was that benefited you can quantify around those the so in another quantify from One, funds how income the can So in the much those that. the margin? two interest interest way, first questions loans or quarter you

Damian Kozlowski

the the then X%, do way start, we have is Well, doing to you you - through the only have times a and average good that could that... if about way have balance of the at so

Paul Frenkiel

my the Well the replacement again actually an initial comments forth, so close when it first of in unknown. interest why happened time end know in to quarter if of interest because those takes We as quarter in can’t But million. ramp up. interest just you that will at the by securitization cited second will to keep income securitization. timing that to The I and until of said increasing is that the Wally, decrease will March, increased and are XXXX XXXX, planning look in $X.X but because of up end loans loans at September the we and second that that fund quarter my that’s will when first it relative - when ramp will it next the a the on keep but I comments, decrease we predict quarter, increasing up approximately actually of loans

William Wallace

are around kind now? X% of And these more

Paul Frenkiel

bit contract. little as because a did spreads I before mentioned now, corporate lower Lower had

So than there is that. a little bit lower

William Wallace

in about… Okay. line expense look to just think I’m when the sale associated for you of not run detail we do then in May with item is a sales, thank as at there providing the loan these think be expense some trying about the we at And expense I how lines. quarter’s it? a rate And look

Damian Kozlowski

Our is more XX. run XX.X, and rate like XX

associated compensation. costs. its that’s the driven of So And lot a by

from. it’s see So you where coming that’s is the compensation line up,

on So we with are wanted where we be track side. well to expense on still the

expenses, a where revenue We XX% a have we negative would there. joy I we have double that’s are growth before if like - it’s and can Together, live growth XX% growth. expense to we are X% happy But that said just probably with.

William Wallace

alright. Right,

about Okay. tax Paul using I should the in believe XX%, we now of… that last it And kind range quarter XX.X%, talking the then are around rate came was XX%, be we

Paul Frenkiel

Yes.

yes. I think for this year,

William Wallace

progress Okay. about my on question last [indiscernible]. you before leverage And Could then talk your target? ratio

Paul Frenkiel

balances mentioned I quarter a tax and seasonal before gift refund had slight first Yes in as we deposits, the we decrease balances. because have the which include card

quarters. that have second won’t we and the So in third

in continue get plus looking is will to So we we expect the X.X% positive and and Again, we second at XXXX. - third and ratio. to drive expect should quarters earnings - have the some point which additional the there in target are the we short-term

William Wallace

how along. on And the fourth that at the does as a second above, quarter that, usually to and is quarter come little we lower first and bit always the third fourth see think is the always it you pressure Will about? and start quarters be the of and be first kind first should or

Damian Kozlowski

the less, be equal trend only the get quarter earnings great but fourth or a the securitization, but can will up. is depending generally definitively to that say on timing you Its of either

you will tax rates, if think of look adjustments up. I the hopefully more capital. year, will see close but that’s see over tax very trend have think the has that going We like don’t the last said, creating then potentially in by I will did quarter the been obviously on like to X.X think somewhere we Paul you are based we nine. I rates we third you lower But be and said, the end deferred changed asset year tax the have with the

William Wallace

else talk. Thanks appreciate somebody it. I guys. I will let

Damian Kozlowski

Wally. Yes. Thank you

Operator

from Breese Jaffray. line the next from Pipar question of our comes Matthew And

begin. may You

Matthew Breese

Good guys. morning

Damian Kozlowski

morning Good Matt.

Matthew Breese

a a want nuts general you just there, get XXX, bolts up. in million? to the total on what Just to securitization, do are is better the you XXX, looking and securitization, that sense XXX amount when loans package the of

Damian Kozlowski

obviously is very who from of big the investors years know for banks unlike XXX a is whole Wells paper. are spread bank you service million, in then of seen like properties. good represents securities a in so loans, There are cadre take little markets. that maybe types we just of the securities there so trust our Fargo a three dominate investment are of there this institutions there have market maybe and other They tranches into the loans institutional is paper banks and we process securitization banker people management process in area. an there do are transactions, We institutional risk you in on repositions that’s not underwriting go where and today in options have experienced bit rate some issued. if then put renewal there access issuing investors in there the different discounted strength But of why it’s There our who of lower similar to a many a floating funds to grade to Most as the and of CMBS the is there have one a that types good CLO other for lot bottom not market is transaction. the although and rates, the with are in and credit people is securities. those floating we a is place

Matthew Breese

know that a million the is get gain percentage what flat that then fee. XXX it per securitized, typically on expected And or Alright. that, you a is

Damian Kozlowski

one second was average based X but spreads. the believe have already, four, was on that of spreads did is it’s then wrong first and we lot wide that our twice we there in than spreads much agencies are is by is at It’s so set when and million the tranches we a on the the there levels loans were rating the the proved time. things, on gain, gain based on more different market what

a five, a if going market that. So maybe the seven, transaction, on spread but spreads you look think because the it, is think levels I know, twice. gains but set estimate long-term, we higher by five a can good I had we wrong know at this let but that maintain we to way But of came we upside been to and out again proved hopefully is were much we how have two conservative will access were surprised think be it’s you

to surprised. are trust me, we we try were We doing not on an accurate you it information purpose give pleasantly

Paul Frenkiel

setting third-party everything. the obviously involved a No, a again and the gain netting in by there’s us it’s reviewed everything, third-party that’s Matt, but at and

Matthew Breese

if But on like back be. longer Right. Five seven a year kind basis, term think would a about continuing good a to we annual view, be stepping so of kind to and twice of place that

Damian Kozlowski

will might Overtime Yes. a we size. creep we on happen, don’t what little not will three, year, next probably probably the but think I even have up

So probably have a increases the might securitization which the million XXX our improve it’s economics round Right million improve capital as $XXX gain. we XXX now million. to and will

a these a months get six. which -- to and credit and where Right Paul That gain on been are You have risk next we present, six. the a lower, any could period the be now But this three said first but loans highly to know they depending a corporate bit of loans unlike the keep - they where like little security at around be our the it’s is six, and a balance that year, spreads around look all way probably five the year this problems are sight is sheet also go at two there securitization where is projects. tend have but gain little of off higher. good it be risk, little of plus, the to it’s they the any they could would we still a below

Matthew Breese

Understood.

helpful. Now that’s very

size that? And agreement, the the Okay. hotel of the with property what purchase then was

Damian Kozlowski

million. Yes, big is discontinued. in loan $XX there a

happen We backed XX not but that collateral, with will credit purchaser. also be the by all will are we working is to by only provide purchaser, is credit will come the million the what so additional guarantees about going off, and

to be safe going it’s So a loan.

place low We XX bridge the risk. a then acquirer down if for will about million that will and be loan extremely will in go we have

Matthew Breese

XX out and of Okay. discontinued then?

Damian Kozlowski

the you delinquency will where sure will the but not I’m put end. million, XX

you So off. that will see come

it a see will and You million will go loan. have then new by we down XX approximately

of it be reposition to very safe a industry I property. will to them think combination we are the that experienced so it it’s think hotel excited who knowledge it people year, is the safe to and the of and a and they will be a be for the very we town I Lauderdale property will loan. discontinued, and sound, extremely buying and of a are finish and as Fort booked they up knowledge great the probably are have only and property. believe It’s in The the but are have only decided build marketplace

Matthew Breese

Okay.

discontinued combination the in next mall, the that something potentially at million a out looking so are six XX like coming and months right? And with over of we

Damian Kozlowski

XX Well, the loan, from yes XX, the XX hotel. from

Matthew Breese

okay. Okay,

Sorry numbers a off there. are my little

Damian Kozlowski

we ago at Because I XXX a on focused know, years had two because think we XXX since dramatic you - as at we really is now. are know people have big are we book history will

obviously we bit that with going are total of are last that all last done the just are we But and a be. to down balance being certain very we much compared in there a a years, work being the year. risk can have transparent lot as a the credit XX% adjustments. over less as lot little the Street have lower, Walnut are put very just being market aggressive it place few year continue So management making knows but we about sure we obviously And

are they loans, Matt, think they look last same good about portfolio it they year same, different to they way came from. they are at the same because the sorts you are are of but If loans,

put that gives a you is just continue we not gain Last going if year, you idea Street of two a what had loss. portfolios if would Walnut together in you Street, those those substantial together Walnut So on. together a put good whatever two adjustment

Matthew Breese

have before that’s helpful, I okay. and know love some this difficult just get for of better if margin the incredibly outlook a to don’t be would XX the I would the know question ins months? think environment outs curve very yield I the where you And current it’s on now and margin Right. on perfect given But then next with of or securitizations. over asked I right, however you it’s and outlook the the That’s

Paul Frenkiel

I’m sorry net margin the or interest margin the on securitization?

Matthew Breese

The margin. net interest

Paul Frenkiel

if of Well mean I rates margin big it the a net our trace lot impact are variable. plus go you those loans a back, have interest interest very on

So if you look at SBLOC block, look increase the at in the dramatic increase increase in in revenue. SBLOC, portfolio you XX have a % XX% a and

So businesses of they you margin. a impact have on go see in will profound the substantially many impact these profound and up on that

a it involved, don’t is continue variable prediction, don’t pricing that there of But deposit because versus I So has loans. the holding are the have so data. should securities the and size many margin we well portfolio also and what we have but aggressively the of

think rising looked in to rates. So we rates book on at Traditionally overall the and adjust at little more as market size I the bit substantially, I now recently the was funding a as the on we rate. the but they right and right we bumped going underperformed continue the and to up interest market are we FDIC fixed banking have are decline a there are market

big laagered. other outperform you see and bank, been the were believe I a interest us is our net will not case margin has which we So that bank

can and laagered I look ratios we next margin position years. over you which rather because interest be ourselves net think we the still turn few if think our of sustained will are into at a our low loans is leader loan-to-deposit our trading bonds I for so loan-to-deposit And than ratio

Matthew Breese

okay. Right,

growth loan last was one, Just my strong. you obviously quite

we loan growth this are quarter? XX% quarter more or is optimistic talked I think given you XX% of kind all last at results the to outlook, changed that about any

Damian Kozlowski

XX% capital of like those our growth growing SBLOC with fine we fine SBLOC ratios doesn’t again I I’m once consider and I the the SBA other businesses. with I over - it don’t incredibly even last portfolio had towards businesses, like accretive, basis, have count I’m very think year and double-digit some growth and because I safe our stronger

don’t So growth. want balance sheet but I uncontrolled

rate. end, especially range, at SBLOC you that, of both that’s we to be you be do businesses. safety soundness of higher of XX% rates could rate these you of SBLOC and other to know So double want with that and you the that rising said product very that want kind the XX% the would it is a it kind on size environment. Having with interest - happy rising know SBA XX% particular some we to know with interest the grow in

Matthew Breese

much Right, it. taking very you for okay. Thank Got my questions.

Damian Kozlowski

Matt. you Thank

Operator

question the next Sandler our from And Frank comes of line Schiraldi from O Neil.

begin. may You

Frank Schiraldi

Hey guys morning. good

Just a up card prepaid on fees, result result good of a year-over-year. the like well X% couple just pretty like questions, X% like looks its

run rate that forward line just a decent that of to on So I’m going the wondering noise item, now the is you XXXX? year-over-year a rest or basis that some out that of stronger of expect expectation through of see I than think is here is

Damian Kozlowski

single-digits. think will hard that it grow We it’s high know. to do Yes, the in

new area. have We in ATH that have said before. have that we and business some this capabilities We do

XX% growth double-digit are the growth and in prepaid. to over growth from going and of potentially in high single-digit fees think years, I substantial you see couple saw you that X% that the So side to - X% next

whatever will one quarters the fees, programs It will will we obviously be less. of programs, new mix be get. You higher that on lower reason better that versus some are will and quarter for some that depends

tax, able mid we that the was that business. of quarter-to-quarter. you basically was us single-digit But that This less program that even good quarter, one a don’t return lost clearly get means a better a but which economically to kind know that’s guidance know So by has mix. moving it having on of been to beneficial these We we volume. were

Frank Schiraldi

without last or that it lost And did program of you Okay. year’s last then, XQ numbers? lose you year sorry, just

Damian Kozlowski

we about number It number it, the Yes yes. know the Yes, in was. year. this was it not in last year

Frank Schiraldi

deposit in increase portion then talked costs, you obviously will deposit through just rates And costs. of Okay. about and passed the on get

the quarter-over-quarter point given If this interest trying just XX in you basis - quarter? was a to sense that the of balance LIBOR that look sheet, for get basis hike, inflated line to on And like a or at wondering item eight there reasonable strength given checking XX bps. increase and demand a average just is point was rate I’m

Damian Kozlowski

is to it’s answer, This XX% one, right? about want XX, tough a you

Paul Frenkiel

that increases mix at It in than really the in future cost don’t were the All greater in constant quarterly vary the So the will renewals the on forth. look it’s at of all specific floor, prior flow we in adjustments. the have can our agreements, likely likelihoods of increases past, say to we can a again associated on the and basis, at the depends adjustment some get increase. the terms monitor it depends contracts on with a up. size look you the be the end again, where But lot we of rate that that of contracts, increase account. and a prepaid factors, deposit balances But is with so and the possibly our percentage account, and the and

closely. really can’t we too project So

Damian Kozlowski

it’s know, to XX%. Yes, say I going don’t we be probably could than less and

Paul Frenkiel

safe. think I a Yes, that’s

Damian Kozlowski

rate things. susceptible and to But and XX% probably increase. safe it rate definitely XX%, on depends it than warranty it’s around again increase those once that which move is only that’s that to the think like say. does interest to I interest programs the a of XX% portion XX% lot, less of more a is But It’s the

Frank Schiraldi

the got is. do rate reset alright, and though upon increase, those pretty you percentage whatever Okay, the interest number quickly

Okay.

Damian Kozlowski

Yes.

of saw see you impact, most the you So would whatever already the it. happens impact

Frank Schiraldi

okay you, thank Got guys. you great,

Damian Kozlowski

Frank. you Thank

Operator

from And the Raymond James. Wallace line of from our next question William comes

begin. may You

William Wallace

Thanks.

question, follow-up an order plan a you I update on the consent in? and regulator when for wondering come Just give remediation us could the was if the next

Damian Kozlowski

They are and do and come believe soundless. going June to to in to a a full October safety do interim I

of They that’s we the We the issues. in we risk talking always this rather have excellence why a made and here for of management, progress than XXXs lot with centre compliance order a integrated of are about in that’s entire envelope reengineering Wilmington. have think, in plan activities are place few I of our looking

and a So have Wilmington we’re out and everyone moving have transfers. we some of lot hiring do done Tampa of we new into

I very at the think we it upside, the you and the in confident is of lot can in know at compliance. moving So we appropriate hard class consumer working the are have also don’t end our tunnel business a see capabilities constraining crises up along I very risk at much very people think light level, third-party of but setting an so of best financial I

we know trying are the you game. change So really to

higher prepaid, We to this are our businesses lower especially that but have commensurate do risk strategic our to be and all overtime really grow, expect the risk control. I and we the going have advantages to grow to volume want with at do obviously greater on think business to we or

orders not its thinking and business. I’m the consent really impact So on

I in think about the and capabilities sound way future. grow our we have ability and in to the a in safe

we model. of on that and get we can the the we - want So community to on bank we that, sound the are are going are them in market not and challenge we of want issues great comfortable full the we going and continues a that and for. only product some and we get and have need to now. want be what be We as that I retail FinTech past. leverageable exciting as do areas think solved forefront that’s same new have order with the new to them from a best-in-class, this the capability that to movements page develops to with safe institution work headed which on We opportunities regulators that’s comfortable have we to our

William Wallace

moving One to to you is Okay. monitoring, centre are a can’t Wilmington, I around shut Tampa was it and you remember that team correct? that the going [indiscernible] mentioned BSA transaction - to you that the said now going thing was be

Damian Kozlowski

Yes.

Tampa, business. here at We of Wilmington were to that are maybe very for that milestones excellence of the it we was this up is groups originally the individuals Wilmington opportunities but that that practice the into a was and process, of be reengineer the talented out some attract great recruiting, business types the should here really rationale that in other some clients of part clear and it’s became with best consistent restructure our in financial capability of long to and in for have It to for end day the and was centre banks. whole setting centre set centre a our there also integrated do

the how to So level technology, policies, can everything but procedures few interaction a centre up to ago the was months and build space, platform. decisions made to and you to with leverage here go from next the office that

integrated Wilmington. that in being all So here is

William Wallace

in And is result as Tampa? shutting there change a any down of expense

Damian Kozlowski

that change, impact meaningfully the Nothing will big Not I financials. a think no.

but large. We have the not during move duplication period, some really it’s a

We outside the going are to system. definitely of get efficiencies

financials, noticeable see ultimately little It will probably will a be bump. be our have you may productive capabilities. but So a more much on we won’t

additional So as there won’t resourcing a lot be does. of volume

that a here So near-term. people. well space technology impact as big in office already have already I don’t think everything rented as Wilmington We the the

a the will So see bit the little be of stuff I think won’t meaningful of Tampa, very financials. associated don’t it of kind shutdown the lot to you of a you see ultimately but won’t severance expense, the but that

William Wallace

well? been Lauderdale buyer Okay. property mentioned a are hotel you to the of that providing Thanks. the it’s buyer Fort going mall the if my don’t last note the provide Florida are know note and question, you a ever in asked, And you to I to as of

Damian Kozlowski

deal here. to the we property, do actually happy for No, think it’s a both not Lauderdale it do and going it's deal We be the and it’s and ways very want good to us so We for buyer Fort this very that. at a safe. good time. are to

would we intended, is On a purchase the we circumstances. is the think maybe be that’s development it know we think would in the the XX. I do I millions side, under hundreds dollars, mall it? of other whatsoever. But would not right price our and of don’t but don’t concern down credit

the guy mall a us are we But this, just won’t a small is are exciting but people development. to be very it redevelopment. in equation mall. there successful, involved of It’s the owner part of us. So a Florida be it’s bigger we very the than in going with the the only

William Wallace

the Okay. appreciate I Thank you time. very much,

Operator

Mr. I’m questions remarks. like at further turn Damian this time. the no And I now you. Kozlowski call for to showing closing Thank back to would

Damian Kozlowski

the on call. everyone appreciate I Well

Appreciate think had next questions quarter. great again I we and quarter. will we really the talk all a first thank you and

Operator

and great conference. Ladies for thank in and a you This does conclude Everyone, the disconnect. gentlemen, day. all program may today's you have participating

The Bancorp, Inc. (TBBK) 27 Apr 182018 Q1 Earnings call transcript