Press Release

The Bancorp, Inc. Reports Second Quarter 2019 Financial Results

Company Release - 7/25/2019 4:10 PM ET

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the second quarter of 2019.

Highlights

  • Reported earnings per share for the quarter ended June 30, 2019 were $0.20, compared to $0.11 for the quarter ended June 30, 2018, an increase of 82%. Adjusted diluted earnings per share increased to $0.21 for the quarter ended June 30, 2019, after consideration of the $0.01 impact of a $908,000 lease termination expense, which will yield $2.2 million of future savings.
  • Net income increased to $11.4 million for the quarter ended June 30, 2019, compared to $6.1 million for the quarter ended June 30, 2018, an increase of 85%.
  • Net interest margin increased to 3.41% for the quarter ended June 30, 2019, compared to 3.11% for the quarter ended June 30, 2018.
  • Net interest income increased 17% to $34.5 million for the quarter ended June 30, 2019, compared to $29.5 million for the quarter ended June 30, 2018.
  • Average loans and leases, including loans held for sale, increased 21% to $2.23 billion for the quarter ended June 30, 2019, compared to $1.85 billion for the quarter ended June 30, 2018.
  • Prepaid card and related fees increased 13% to $15.8 million for the quarter ended June 30, 2019, compared to $14.1 million for the quarter ended June 30, 2018.
  • ACH (Automated Clearing House), card and other payment processing fees increased 18%, to $2.5 million for the quarter ended June 30, 2019, compared to $2.1 million for the quarter ended June 30, 2018.
  • Small Business Administration (“SBA”) loans, including those held-for-sale, increased 18% to $516 million at June 30, 2019, compared to $439 million at June 30, 2018.
  • Linked quarter loan growth for SBA, security backed lines of credit (SBLOC) and leasing, respectively, was 5%, 6% and 6%; or 19%, 23% and 24% on an annualized basis.
  • The rate on $3.9 billion of average deposits and interest-bearing liabilities in the second quarter of 2019 was 0.96%. Average prepaid card deposits of $2.5 billion for second quarter 2019, reflected an increase of 17% over the average of $2.1 billion for the quarter ended June 30, 2018.
  • Consolidated leverage ratio was 10.04% at June 30, 2019. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.
  • Book value per common share at June 30, 2019 was $8.07 per share from $5.91 a year earlier, an increase of 37%.

Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “Revenue momentum was broad based in the second quarter, equally distributed between fee and net interest income growth. These trends and our underlying pipelines suggest continued improvement in our earnings outlook.”

The Bancorp reported net income of $11.4 million, or $0.20 income per diluted share, for the quarter ended June 30, 2019, compared to net income of $6.1 million, or $0.11 income per diluted share, for the quarter ended June 30, 2018. Tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 to risk-weighted assets ratios were 10.04%, 20.57%, 21.03% and 20.57%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, July 26, 2019 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 1391725. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, August 2, 2019 by dialing 855.859.2056, access code 1391725.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK) is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500. The company’s only subsidiary, The Bancorp Bank (Member FDIC, Equal Housing Lender), has been repeatedly recognized in the payments industry as the Top Issuer of Prepaid Cards (US), a top merchant sponsor bank and a top ACH originator. Specialized lending distinctions include National Preferred SBA Lender, a leading provider of securities-backed lines of credit, and one of the few bank-owned commercial vehicle leasing groups in the nation. For more information please visit www.thebancorp.com.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp’s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. These statements may be identified by the use of forward-looking terminology, including but not limited to the words “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “estimate,” “continue,” or similar words. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp’s filings with the Securities Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those filings. These risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this earnings release, except as may be required under applicable law.

The Bancorp, Inc.

Financial highlights

(unaudited)

 

Three months ended

Six months ended

June 30,

June 30,

Condensed income statement

2019

2018

2019

2018

(dollars in thousands except per share data)

 

Net interest income

$

34,539

$

29,534

$

68,549

$

59,608

Provision for loan and lease losses

 

600

 

900

 

2,300

 

1,600

Non-interest income

Service fees on deposit accounts

 

14

 

1,646

 

61

 

3,222

ACH, card and other payment processing fees

 

2,521

 

2,142

 

4,824

 

3,994

Prepaid card and related fees

 

15,840

 

14,073

 

32,003

 

28,355

Net realized and unrealized gains (losses) on commercial

loans originated for sale

 

(148)

 

(454)

 

10,615

 

11,275

Change in value of investment in unconsolidated entity

 

-

 

(1,732)

 

-

 

(2,903)

Leasing income

 

1,027

 

1,108

 

1,722

 

1,595

Affinity fees

 

-

 

85

 

-

 

187

Other non-interest income

 

495

 

172

 

889

 

410

Total non-interest income

 

19,749

 

17,040

 

50,114

 

46,135

Non-interest expense

Salaries and employee benefits

 

21,826

 

18,897

 

45,666

 

39,970

Data processing expense

 

1,223

 

1,356

 

2,492

 

3,361

Legal expense

 

1,534

 

1,770

 

2,858

 

4,201

FDIC Insurance

 

2,095

 

2,929

 

4,024

 

5,148

Software

 

3,060

 

2,995

 

5,981

 

6,286

Civil money penalty

 

-

 

-

 

-

 

(290)

Lease termination expense

 

908

 

395

 

908

 

395

Other non-interest expense

 

8,873

 

8,968

 

16,819

 

17,288

Total non-interest expense

 

39,519

 

37,310

 

78,748

 

76,359

Income from continuing operations before income taxes

 

14,169

 

8,364

 

37,615

 

27,784

Income tax expense

 

3,575

 

2,209

 

9,610

 

7,608

Net income from continuing operations

 

10,594

 

6,155

 

28,005

 

20,176

Discontinued operations

Income (loss) from discontinued operations before income taxes

 

919

 

(50)

 

1,724

 

106

Income tax expense (benefit)

 

163

 

(36)

 

449

 

1

Net income (loss) from discontinued operations, net of tax

 

756

 

(14)

 

1,275

 

105

Net income

$

11,350

$

6,141

$

29,280

$

20,281

 

Net income per share from continuing operations - basic

$

0.19

$

0.11

$

0.50

$

0.36

Net income per share from discontinued operations - basic

$

0.01

$

-

$

0.02

$

-

Net income per share - basic

$

0.20

$

0.11

$

0.52

$

0.36

 

Net income per share from continuing operations - diluted

$

0.19

$

0.11

$

0.49

$

0.36

Net income per share from discontinued operations - diluted

$

0.01

$

-

$

0.02

$

-

Net income per share - diluted

$

0.20

$

0.11

$

0.51

$

0.36

Weighted average shares - basic

 

56,702,182

 

56,340,816

 

56,612,596

 

56,241,873

Weighted average shares - diluted

 

57,197,433

 

57,141,219

 

57,031,206

57,083,297

Balance sheet

June 30,

March 31,

December 31,

June 30,

2019

2019

2018

2018

(dollars in thousands)

Assets:

Cash and cash equivalents

Cash and due from banks

$

27,450

$

11,678

$

2,440

$

3,052

Interest earning deposits at Federal Reserve Bank

 

284,823

 

714,514

 

551,862

 

373,782

Securities sold under agreements to resell

 

-

 

-

 

-

 

64,216

Total cash and cash equivalents

 

312,273

 

726,192

 

554,302

 

441,050

 

Investment securities, available-for-sale, at fair value

 

1,361,779

 

1,368,602

 

1,236,324

 

1,305,494

Investment securities, held-to-maturity

 

84,414

 

84,428

 

84,432

 

86,354

Commercial loans held for sale, at fair value

 

934,452

 

570,426

 

688,471

 

447,997

Loans, net of deferred fees and costs

 

1,561,451

 

1,510,395

 

1,501,976

 

1,503,828

Allowance for loan and lease losses

 

(9,989)

 

(9,954)

 

(8,653)

 

(8,014)

Loans, net

 

1,551,462

 

1,500,441

 

1,493,323

 

1,495,814

Federal Home Loan Bank & Atlantic Community Bancshares stock

 

6,342

 

1,113

 

1,113

 

1,113

Premises and equipment, net

 

17,380

 

18,056

 

18,895

 

18,275

Accrued interest receivable

 

14,567

 

13,907

 

12,753

 

11,810

Intangible assets, net

 

3,081

 

3,463

 

3,846

 

4,612

Other real estate owned

 

-

 

-

 

-

 

405

Deferred tax asset, net

 

14,574

 

18,423

 

21,622

 

39,779

Investment in unconsolidated entity

 

58,012

 

58,258

 

59,273

 

67,994

Assets held for sale from discontinued operations

 

169,109

 

188,025

 

197,831

 

241,694

Other assets

 

76,123

 

75,642

 

65,726

 

59,483

Total assets

$

4,603,568

$

4,626,976

$

4,437,911

$

4,221,874

 

Liabilities:

Deposits

Demand and interest checking

$

3,964,905

$

3,993,828

$

3,904,638

$

3,287,682

Savings and money market

 

26,841

 

31,470

 

31,076

 

511,598

Total deposits

 

3,991,746

 

4,025,298

 

3,935,714

 

3,799,280

 

Securities sold under agreements to repurchase

 

93

 

93

 

93

 

161

Short-term borrowings

 

45,000

 

-

 

-

 

-

Subordinated debenture

 

13,401

 

13,401

 

13,401

 

13,401

Long-term borrowings

 

41,334

 

41,499

 

41,674

 

42,000

Other liabilities

 

53,862

 

111,905

 

40,253

 

34,485

Total liabilities

$

4,145,436

$

4,192,196

$

4,031,135

$

3,889,327

 

Shareholders' equity:

Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,874,956 and 56,410,525 shares issued and outstanding at June 30, 2019 and 2018, respectively

 

56,875

 

56,568

 

56,446

 

56,411

Treasury stock (100,000 shares)

 

(866)

 

(866)

 

(866)

 

(866)

Additional paid-in capital

 

368,771

 

367,483

 

366,181

 

364,460

Accumulated earnings (deficit)

 

28,463

 

17,113

 

(817)

 

(69,213)

Accumulated other comprehensive income (loss)

 

4,889

 

(5,518)

 

(14,168)

 

(18,245)

Total shareholders' equity

 

458,132

 

434,780

 

406,776

 

332,547

 
Total liabilities and shareholders' equity

$

4,603,568

$

4,626,976

$

4,437,911

$

4,221,874 

Average balance sheet and net interest income

Three months ended June 30, 2019

Three months ended June 30, 2018

(dollars in thousands)

Average

Average

Average

Average

Assets:

Balance

Interest

Rate

Balance

Interest

Rate

Interest earning assets:

Loans net of deferred fees and costs **

$

2,216,935

$

29,737

5.37%

$

1,828,398

$

21,704

4.75%

Leases - bank qualified*

15,446

268

6.94%

20,214

337

6.67%

Investment securities-taxable

1,443,671

11,634

3.22%

1,435,598

10,770

3.00%

Investment securities-nontaxable*

6,610

54

3.27%

8,702

63

2.90%

Interest earning deposits at Federal Reserve Bank

420,153

2,455

2.34%

458,695

2,095

1.83%

Federal funds sold and securities purchased under

agreement to resell

-

-

-

64,300

475

2.95%

Net interest earning assets

4,102,815

44,148

4.30%

3,815,907

35,444

3.72%

 

Allowance for loan and lease losses

(9,963)

(7,168)

Loans held for sale from discontinued operations

154,057

1,659

4.31%

281,476

2,066

2.94%

Other assets

283,036

212,397

$

4,529,945

$

4,302,612

 

Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking

$

3,847,623

$

8,783

0.91%

$

3,439,265

$

5,022

0.58%

Savings and money market

26,497

40

0.60%

502,783

617

0.49%

Total deposits

3,874,120

8,823

0.91%

3,942,048

5,639

0.57%

 

Short-term borrowings

80,242

526

2.62%

1,648

9

2.18%

Securities sold under agreements to repurchase

92

-

0.00%

171

-

0.00%

Subordinated debentures

13,401

192

5.73%

13,401

178

5.31%

Total deposits and liabilities

3,967,855

9,541

0.96%

3,957,268

5,826

0.59%

 

Other liabilities

115,634

14,124

Total liabilities

4,083,489

3,971,392

 

Shareholders' equity

446,456

331,220

$

4,529,945

$

4,302,612

Net interest income on tax equivalent basis*

$

36,266

$

31,684

 

Tax equivalent adjustment

68

84

 

Net interest income

$

36,198

$

31,600

Net interest margin *

3.41%

3.11%

 

 

 

 

 

* Full taxable equivalent basis, using a statutory rate of 21% for 2019 and 2018.

** Includes loans held for sale.

Average balance sheet and net interest income

Six months ended June 30, 2019

Six months ended June 30, 2018

(dollars in thousands)

Average

Average

Average

Average

Assets:

Balance

Interest

Rate

Balance

Interest

Rate

Interest earning assets:

Loans net of deferred fees and costs **

$

2,241,746

$

59,898

5.34%

$

1,887,511

$

44,743

4.74%

Leases - bank qualified*

16,613

695

8.37%

20,623

671

6.51%

Investment securities-taxable

1,374,019

22,164

3.23%

1,405,749

20,469

2.91%

Investment securities-nontaxable*

7,075

114

3.22%

9,294

138

2.97%

Interest earning deposits at Federal Reserve Bank

421,580

4,957

2.35%

480,343

3,927

1.64%

Federal funds sold and securities purchased under agreement to resell

-

-

-

64,258

889

2.77%

Net interest earning assets

4,061,033

87,828

4.33%

3,867,778

70,837

3.66%

 

Allowance for loan and lease losses

(9,305)

(7,076)

Loans held for sale from discontinued operations

163,874

3,684

4.50%

288,050

4,593

3.19%

Other assets

272,922

199,981

$

4,488,524

$

4,348,733

 

Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking

$

3,838,868

$

17,616

0.92%

$

3,487,205

$

9,323

0.53%

Savings and money market

28,931

77

0.53%

495,124

1,285

0.52%

Total deposits

3,867,799

17,693

0.91%

3,982,329

10,608

0.53%

 

Short-term borrowings

77,330

1,029

2.66%

13,182

113

1.71%

Securities sold under agreements to repurchase

91

-

0.00%

188

-

0.00%

Subordinated debentures

13,401

387

5.78%

13,401

338

5.04%

Total deposits and liabilities

3,958,621

19,109

0.97%

4,009,100

11,059

0.55%

 

Other liabilities

97,449

11,285

Total liabilities

4,056,070

4,020,385

 

Shareholders' equity

432,454

328,348

$

4,488,524

$

4,348,733

Net interest income on tax equivalent basis*

$

72,403

$

64,371

 

Tax equivalent adjustment

170

170

 

Net interest income

$

72,233

$

64,201

Net interest margin *

3.43%

3.11%

 

 

 

 

 

* Full taxable equivalent basis, using a statutory rate of 21% for 2019 and 2018.

** Includes loans held for sale.

 

Allowance for loan and lease losses:

Six months ended

Year ended

June 30,

June 30,

December 31,

2019

2018

2018

(dollars in thousands)

 

Balance in the allowance for loan and lease losses at beginning of period (1)

$

8,653

$

7,096

$

7,096

 

Loans charged-off:

SBA non-real estate

 

893

 

388

 

1,348

SBA commercial mortgage

 

-

 

157

 

157

Direct lease financing

 

185

 

244

 

637

Other consumer loans

 

2

 

15

 

21

Total

 

1,080

 

804

 

2,163

 

Recoveries:

SBA non-real estate

 

100

 

47

 

57

SBA commercial mortgage

 

-

 

11

 

13

Direct lease financing

 

16

 

64

 

64

Other consumer loans

 

-

 

-

 

1

Total

 

116

 

122

 

135

Net charge-offs

 

964

 

682

 

2,028

Provision charged to operations

 

2,300

 

1,600

 

3,585

 

Balance in allowance for loan and lease losses at end of period

$

9,989

$

8,014

$

8,653

Net charge-offs/average loans

 

0.04%

 

0.04%

 

0.10%

Net charge-offs/average loans (annualized)

 

0.09%

 

0.07%

 

0.10%

Net charge-offs/average assets

 

0.02%

 

0.02%

 

0.05%

(1) Excludes activity from assets held for sale from discontinued operations.

 

Loan portfolio:

June 30,

March 31,

December 31,

June 30,

2019

2019

2018

2018

(in thousands)

 

SBA non-real estate

$

75,475

$

76,112

$

76,340

$

75,141

SBA commercial mortgage

 

189,427

 

179,397

 

165,406

 

156,268

SBA construction

 

29,298

 

23,979

 

21,636

 

17,781

Total SBA loans

 

294,200

 

279,488

 

263,382

 

249,190

Direct lease financing

 

407,907

 

384,930

 

394,770

 

386,403

SBLOC / IBLOC*

 

837,672

 

791,986

 

785,303

 

795,823

Other specialty lending

 

3,432

 

34,425

 

31,836

 

48,253

Other consumer loans

 

7,898

 

9,301

 

16,302

 

13,174

 

1,551,109

 

1,500,130

 

1,491,593

 

1,492,843

Unamortized loan fees and costs

 

10,342

 

10,265

 

10,383

 

10,985

Total loans, net of deferred fees and costs

$

1,561,451

$

1,510,395

$

1,501,976

$

1,503,828

 

* Securities Backed Lines of Credit (SBLOC), are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC), are collateralized by the cash surrender value of insurance policies.

 

Small business lending portfolio:

June 30,

March 31,

December 31,

June 30,

2019

2019

2018

2018

(in thousands)

 

SBA loans, including deferred fees and costs

 

301,502

 

286,814

 

270,860

 

257,412

SBA loans included in held-for-sale

 

215,064

 

206,901

 

199,977

 

182,072

Total SBA loans

$

516,566

$

493,715

$

470,837

$

439,484

Capital ratios:

Tier 1 capital

Tier 1 capital

Total capital

Common equity

to average

to risk-weighted

to risk-weighted

tier 1 to risk

assets ratio

assets ratio

assets ratio

weighted assets

As of June 30, 2019

The Bancorp, Inc.

10.04%

20.57%

21.03%

20.57%

The Bancorp Bank

9.76%

20.16%

20.62%

20.16%

"Well capitalized" institution (under FDIC regulations)

5.00%

8.00%

10.00%

6.50%

 

As of December 31, 2018

The Bancorp, Inc.

10.11%

20.64%

21.07%

20.64%

The Bancorp Bank

9.70%

20.18%

20.61%

20.18%

"Well capitalized" institution (under FDIC regulations)

5.00%

8.00%

10.00%

6.50%

Three months ended

Six months ended

June 30,

June 30,

2019

2018

2019

2018

Selected operating ratios:

Return on average assets (1)

 

1.00%

 

0.57%

 

1.32%

 

0.94%

Return on average equity (1)

 

10.20%

 

7.44%

 

13.65%

 

12.46%

Net interest margin

 

3.41%

 

3.11%

 

3.43%

 

3.11%

 

(1) Annualized

 

Book value per share table:

June 30,

March 31,

December 31,

June 30,

2019

2019

2018

2018

Book value per share

$

 

8.07

$

 

7.70

$

 

7.22

$

 

5.91

 
 

Loan quality table:

June 30,

March 31,

December 31,

June 30,

2019

2019

2018

2018

Nonperforming loans to total loans

 

0.57%

 

0.55%

 

0.36%

 

0.42%

Nonperforming assets to total assets

 

0.19%

 

0.18%

 

0.12%

 

0.16%

Allowance for loan and lease losses to total loans

 

0.64%

 

0.66%

 

0.58%

 

0.53%

 

Nonaccrual loans

$

 

6,456

$

 

5,863

$

 

4,516

$

 

4,915

Loans 90 days past due still accruing interest

 

2,373

 

2,483

 

954

 

1,459

Other real estate owned

 

-

 

-

 

-

 

405

Total nonperforming assets

$

 

8,829

$

 

8,346

$

 

5,470

$

 

6,779

 
 
 

Three months ended

June 30,

March 31,

December 31,

June 30,

2019

2019

2018

2018

(in thousands)

Gross dollar volume (GDV) (3):

Prepaid card GDV

$

 

16,611,551

$

 

16,937,325

$

 

13,526,647

$

 

12,799,531

 

(3) Gross dollar volume represents the total dollar amount spent on prepaid cards issued by The Bancorp Bank.

 

Business line quarterly summary:

Quarter ended June 30, 2019

(dollars in millions)

 

Balances

Non-interest income

% Growth

% Growth

Major business lines

Average
approximate
rates

Balances*

Year over
year

 

Linked
quarter
annualized

Current
quarter

Year over
year

 

Loans

Institutional banking **

4.4%

$

838

5%

23%

na

na

SBA

5.7%

 

517

18%

19%

na

na

Leasing

6.4%

 

408

6%

24%

$

1.0

nm

Commercial real estate securitization

5.9%

 

719

nm

nm

nm

nm

Weighted average yield

5.5%

 

$

2,482

 

Deposits

Payment solutions (primarily prepaid)

1.2%

$

2,511

17%

nm

$

15.8

13%

Card payment and ACH processing

0.9%

 

885

-2%

nm

 

2.5

18%

 

* Loan categories based on period end balance and Payment Solutions based on average quarterly balances.

** Comprised of Securities Backed Lines of Credit (SBLOC), collateralized by marketable securities and Insurance Backed Lines of Credit (IBLOC), collateralized by the cash surrender value of insurance policies.

 

Analysis of Walnut Street* marks:

 

Loan activity

Marks

(dollars in millions)

 

Original Walnut Street loan balance, December 31, 2014

$

 

267

Marks through December 31, 2014 sale date

 

(58)

$

 

(58)

Sales price of Walnut Street

 

209

Equity investment from independent investor

 

(16)

December 31, 2014 Bancorp book value

 

193

Additional marks 2015 - 2018

 

(46)

 

(46)

2019 Marks

 

-

Payments received

 

(89)

June 30, 2019 Bancorp book value**

$

 

58

 

Total marks

$

 

(104)

Divided by:

Original Walnut Street loan balance

$

 

267

Percentage of total mark to original balance

 

39%

 

* Walnut Street is the investment in unconsolidated entity on the balance sheet which reflects the Bank's investment in a securitization of certain loans from the banks discontinued loan portfolio.

** Approximately 44% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of June 30, 2019.

 

Walnut Street portfolio composition as of June 30, 2019

 

Collateral type

% of Portfolio

Commercial real estate non-owner occupied

Retail

 

52.2%

Office

 

13.2%

Other

 

5.9%

Construction and land

 

18.4%

Commercial non real estate and industrial

 

0.5%

First mortgage residential owner occupied

 

6.1%

First mortgage residential non-owner occupied

 

2.8%

Other

 

0.9%

Total

 

100.0%

 

Cumulative analysis of marks on discontinued commercial loan principal as of June 30, 2019

 

Discontinued

Cumulative

% to original

loan principal

marks

principal

(dollars in millions)

 

Commercial loan discontinued principal before marks

$

99

Florida mall held in discontinued other real estate owned

 

42

$

(27)

Previous mark charges

 

14

 

(14)

Mark at June 30, 2019

 

(7)

Total

$

155

$

(48)

31%

Analysis of discontinued loan relationships as of June 30, 2019

 

Performing

Nonperforming

Total

Performing

Nonperforming

Total

loan principal

loan principal

loan principal

loan marks

loan marks

marks

(in millions)

 

6 loan relationships > $6 million

$

49

$

14

$

63

$

(3)

$

(2)

$

(5)

Loan relationships < $6 million

 

27

 

2

 

29

 

(2)

 

-

 

(2)

$

76

$

16

$

92

$

(5)

$

(2)

$

(7)

Quarterly activity for discontinued commercial loan principal

 

Commercial

loan principal

(in millions)

 

Commercial loan discontinued principal March 31, 2019 before mark

$

115

Quarterly paydowns

 

(16)

Commercial loan discontinued principal June 30, 2019 before marks

$

99

Marks June 30, 2019

 

(7)

Net commercial loan exposure June 30, 2019

$

92

Residential mortgages

 

50

Net loans

$

142

Florida Mall in other real estate owned

 

15

17 Properties in other real estate owned

 

12

Total discontinued assets at June 30, 2019

$

169 

Discontinued commercial loan composition June 30, 2019

 

Collateral type

Unpaid principal
balance

Mark
June 30, 2019

Mark as %
of portfolio

(dollars in millions)

Commercial real estate - non-owner occupied:

Retail

$

4

 

(0.6)

13%

Office

 

3

 

-

-

Other

 

37

 

(3.0)

8%

Construction and land

 

12

 

(0.1)

0%

Commercial non-real estate and industrial

 

10

 

(0.2)

2%

1 to 4 family construction

 

11

 

(2.6)

24%

First mortgage residential non-owner occupied

 

12

 

(0.5)

4%

Commercial real estate owner occupied:

Retail

 

8

 

-

-

Office

 

-

 

-

-

Other

 

-

 

-

-

Residential junior mortgage

 

1

 

-

-

Other

 

1

 

-

-

Total

 

$

99

Less: mark

 

(7)

 

Net commercial loan exposure June 30, 2019

$

92

$

(7.0)

7%

 

The Bancorp, Inc. Contact
Andres Viroslav
215-861-7990
aviroslav@thebancorp.com

Source: The Bancorp, Inc.