WILMINGTON, Del.--(BUSINESS WIRE)--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 R, "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 R 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 R 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 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 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.
Financial highlights
(unaudited)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
(dollars in thousands (dollars in thousands
except per share data) 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 R (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 June 30,
2006 2006 31, 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 condensed average average average average
balance sheet 2006 2006 2005 2005
----------- ----------- ----------- -----------
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
=========== =========== =========== ===========
Loan Portfolio
June 30, March 31, December June 30,
2006 2006 31, 2005 2005
Amount Amount Amount Amount
----------- ----------- ----------- -----------
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,
Asset quality ratios 2006 2005
----------- -----------
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
Source: The Bancorp, Inc.
Contact: The Bancorp, Inc. Andres Viroslav, 215-861-7990 andres.viroslav@thebancorp.com