News Details

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. ("Bancorp") (NASDAQ: TBBK), a bank holding company, today reported results for the quarter ended September 30, 2009.

Third Quarter 2009 Financial Highlights:

    --  Transaction accounts increased to $1.7 billion, a 57% increase from the
        third quarter of 2008 and a 47% over December 31, 2008.
    --  Transaction accounts total 95% of total deposits at September 30, 2009.
    --  The cost of deposits decreased to 0.94% for the third quarter of 2009 as
        compared to 1.02% for the second quarter of 2009, and 2.51% for the
        third quarter of 2008.
    --  Construction loans decreased 26% from December 31, 2008 to $227.2
        million at September 30, 2009.

Financial Results

Bancorp reported net income available to common shareholders for the three months ended September 30, 2009 of $787,000 or earnings per share - diluted of $0.04, based on 20,411,872 weighted average shares outstanding, compared to net income available to common shareholders of $241,000 or earnings per share - diluted of $0.02, based on 14,563,919 weighted average shares outstanding, for the three months ended September 30, 2008. For the nine months ended September 30, 2009, Bancorp reported net income available to common shareholders of $1.3 million or earnings per share - diluted of $0.08, based on 16,874,599 weighted average shares outstanding, compared to a net loss of $1.2 million or loss per share - $0.08, based on 14,562,934 weighted average shares outstanding, for the nine months ended September 30, 2008.

Balance Sheet Summary

At September 30, 2009, Bancorp's total assets were $2.0 billion, an increase of $248.6 million or 14% from December 31, 2008. Loans grew to $1.5 billion, an increase of $63.8 million or 4% from those of December 31, 2008, and deposits increased to $1.8 billion, an increase of $250.1 million or 16%, from deposits at December 31, 2008. Total common shares outstanding were 26,181,291 at September 30, 2009 and 14,563,919 December 31, 2008.

Conference Call Webcast

Interested parties can access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 10:00 AM EDT on Monday, October 26, 2009 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. The conference call may also be listened to by dialing 866.788.0538 using access code 53183470. 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 Monday, November 2, 2009 by dialing 888.286.8010, access code 80415540.

About Bancorp

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's 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              Nine months ended

               September 30,                   September 30,

               2009            2008            2009            2008

               (dollars in thousands except    (dollars in thousands except per
               per share data)                 share data)

Condensed
income
statement

Net interest   $ 15,975        $ 13,497        $ 46,860        $ 39,314
income

Provision for
loan and         3,500           4,100           9,000           8,800
lease losses

Non-interest
income

Other than
temporary
impairment of    -               -               -               (8,275     )
investment
securities

Other
non-interest     3,113           2,672           10,244          9,172
income

Total
non-interest     3,113           2,672           10,244          897
income

Non-interest
expense

Loss on other
real estate      -               -               1,700           -
owned

Other
non-interest     13,018          11,674          40,104          33,246
expense

Total
non-interest     13,018          11,674          41,804          33,246
expense

Net income
(loss) before    2,570           395             6,300           (1,835     )
income tax
expense

Income tax
expense          818             136             2,231           (649       )
(benefit)

Net income       1,752           259             4,069           (1,186     )
(loss)

Less
preferred        (565       )    (16        )    (1,728     )    (49        )
stock
dividends

Less
preferred        (400       )    -               (1,066     )    -
stock
accretion

Loss
allocated to
Series A         -               (2         )    -               8
preferred
shareholders

Net income
(loss)
available to   $ 787           $ 241           $ 1,275         $ (1,227     )
common
shareholders

Basic
earnings       $ 0.04          $ 0.02          $ 0.08          $ (0.08      )
(loss) per
share

Diluted
earnings       $ 0.04          $ 0.02          $ 0.08          $ (0.08      )
(loss) per
share

Weighted
average          19,731,274      14,563,919      16,305,299      14,562,934
shares -
basic

Weighted
average          20,411,872      14,563,919      16,874,599      14,562,934
shares -
diluted

               September 30,   June 30,        December 31,    September 30,

               2009            2009            2008            2008

Condensed
balance sheet

Assets

Federal funds  $ 210,506       $ 12,102        $ 87,729        $ 36,485
sold

Investment       141,388         143,323         106,458         116,106
securities

Loans            1,513,131       1,459,965       1,449,349       1,469,615

Allowance for
loan and         (18,436    )    (18,080    )    (17,361    )    (15,468    )
lease losses

Other assets     194,445         134,268         166,200         174,204

Total assets   $ 2,041,034     $ 1,731,578     $ 1,792,375     $ 1,780,942

Liabilities
and
shareholders'
equity

Transaction    $ 1,681,125     $ 1,314,177     $ 1,144,515     $ 1,069,945
accounts

Time deposits    94,350          176,308         380,847         389,184

Total            1,775,475       1,490,485       1,525,362       1,459,129
deposits

Short-term       696             43,394          70,419          131,499
borrowings

Subordinated     13,401          13,401          13,401          13,401
debt

Other            4,918           3,019           2,790           4,149
liabilities

Shareholder's    246,544         181,279         180,403         172,764
equity

Total
liabilities
and            $ 2,041,034     $ 1,731,578     $ 1,792,375     $ 1,780,942
shareholders'
equity

               Third           Second          Fourth          Third

               quarter         quarter         quarter         quarter

Average
condensed      average 2009    average 2009    average 2008    average 2008
balance sheet

Assets

Federal funds  $ 119,816       $ 23,068        $ 37,634        $ 82,984
sold

Investment       140,942         135,102         116,816         115,814
securities

Loans            1,466,921       1,470,347       1,460,204       1,444,000

Allowance for
loan and         (18,204    )    (19,474    )    (15,853    )    (14,808    )
lease losses

Other assets     153,545         140,054         178,834         164,891

Total assets   $ 1,863,020     $ 1,749,097     $ 1,777,635     $ 1,792,881

Liabilities
and
shareholders'
equity

Transaction    $ 1,454,565     $ 1,285,252     $ 1,050,658     $ 961,358
accounts

Time deposits    145,833         170,251         397,009         554,142

Total            1,600,398       1,455,503       1,447,667       1,515,500
deposits

Short-term       33,800          96,384          125,596         84,599
borrowings

Other            13,401          13,401          13,401          13,401
borrowings

Other            4,239           1,192           7,090           5,842
liabilities

Shareholders'    211,182         182,617         183,881         173,539
equity

Total
liabilities
and            $ 1,863,020     $ 1,749,097     $ 1,777,635     $ 1,792,881
shareholders'
equity

Loan           September 30,   June 30,        December 31,    September 30,
Portfolio

               2009            2009            2008            2008

               Amount          Amount          Amount          Amount

Commercial     $ 394,316       $ 363,524       $ 353,219       $ 354,575

Commercial       562,611         522,510         488,986         478,534
mortgage

Construction     227,226         255,504         305,889         332,091

Total
commercial       1,184,153       1,141,538       1,148,094       1,165,200
loans

Direct
financing        81,097          80,774          85,092          87,710
leases

Residential      75,413          64,934          57,636          63,472
mortgage

Consumer
loans and        170,238         170,999         157,446         151,876
others

                 1,510,901       1,458,245       1,448,268       1,468,258

Unamortized      2,230           1,720           1,081           1,357
costs (fees)

Total loans,
net of
unamortized    $ 1,513,131     $ 1,459,965     $ 1,449,349     $ 1,469,615
fees and
costs

Supplemental
loan data :

Construction   $ 119,752       $ 124,443       $ 163,718       $ 158,310
1-4 family

Construction
commercial,
acquisition      107,474         131,061         142,171         173,781
and
development

               $ 227,226       $ 255,504       $ 305,889       $ 332,091

               Three months ended              Nine months ended

               September 30,                   September 30,

               2009            2008            2009            2008

Selected
operating
ratios

Return on
average          0.38       %    0.06       %    0.30       %    -0.09      %
assets

Return on
average          3.32       %    0.60       %    2.83       %    -0.89      %
equity

Net interest     3.74       %    3.28       %    3.76       %    3.36       %
margin

Efficiency       68.20      %    72.20      %    74.08      %    68.57      %
ratio

Book value     $ 7.69          $ 11.78         $ 7.69          $ 11.78
per share (1)

(1) Excludes Series B Preferred Shares issued to the US Treasury and the
associated book value

               September 30,   June 30,        December 31,    September 30,

               2009            2009            2008            2008

Asset quality
ratios

Nonperforming
loans to         1.77       %    2.09       %    0.88       %    0.95       %
total loans

Nonperforming
assets to        1.31       %    1.76       %    0.97       %    0.78       %
total assets

Allowance for
loan and
lease losses     1.22       %    1.24       %    1.20       %    1.05       %
to total
loans

Nonaccrual     $ 11,776        $ 8,716         $ 8,729         $ 13,637
loans

Loans 90 days
past due
still          $ 15,012        $ 21,779        $ 4,055         $ 331
accruing
interest

Other real     $ -             $ -             $ 4,600         $ -
estate owned

Selected
capital
ratios

Tier 1
capital to       13.11      %    10.34      %    10.10      %    7.48       %
average
assets

Tier 1
capital total    15.61      %    12.15      %    11.72      %    8.55       %
risk-weighted
assets

Total capital
to total         16.80      %    13.38      %    12.87      %    9.57       %
risk-weighted
assets

    Source: The Bancorp, Inc.