WILMINGTON, Del.--(BUSINESS WIRE)--
The Bancorp, Inc. ("Bancorp") (NASDAQ:TBBK), a bank holding company,
today reported results for the quarter ended March 31, 2010.
Financial Highlights
-- Net income increased 80% or $1.0 million over the first quarter 2009 to
$2.2 million, prior to $6.2 million in total after-tax TARP repayment
related costs, resulting in a net loss available to common shareholders
of $4.1 million or $0.15 per share
-- Non-interest income increased 46% or $1.5 million, excluding securities
gains, over first quarter 2009
-- Net interest income increased $1.5 million, or 10% over the first
quarter 2009
-- Interest expense on deposits decreased to 0.65% for first quarter of
2010 from 1.06% for the first quarter of 2009
-- Total deposits increased 26% or $385.4 million over first quarter 2009
-- Transaction account balances represented 99% of total deposit balances
at March 31, 2010
-- Non-performing loans to total loans decreased to 1.44% compared to 1.72%
on March 31, 2009 and 1.66% at year end 2009
Betsy Z. Cohen, Bancorp's Chief Executive Officer, said, "Our core
earnings categories of net interest income, non-interest income, and net
income all grew during the quarter. We repaid $45.2 million in TARP
funds which, looking forward, we expect will restore $5.8 million in
pre-tax income, annually. Significant growth in deposits included a 43%
annual increase in health savings account deposits and a 38% annual
increase or $508 million in total transaction accounts. Bancorp's total
interest costs decreased to 0.65% for the quarter."
Financial Results
Bancorp reported a net loss available to common shareholders for the
three months ended March 31, 2010 of $4.1 million, or a loss per share
of $0.15, reflecting total after-tax TARP-related costs of $6.2 million,
based on 26,181,291 weighted average shares outstanding, compared to net
income available to common shareholders of $363,000, or earnings per
share of $0.03, reflecting after-tax TARP charges of $831,000, based on
14,563,919 weighted average shares outstanding, for the three months
ended March 31, 2009.
On March 10, 2010, Bancorp repaid the entire $45.2 million of fixed rate
Series B preferred shares issued to the United States Treasury under its
Capital Purchase Program. As a result of the repayment, a non-cash
charge of $5.8 million was recognized during the quarter and $3.7
million of annualized dividends and accretion which previously reduced
earnings have been eliminated on a going forward basis. Those charges
equate to approximately $5.8 million of additional annual earnings
capacity on a pre-tax basis. After the repayment Bancorp's capital
ratios continue to exceed well capitalized requirements.
Core Operating
Earnings (1)
March 31, December 31, September 30, June 30, March 31,
2010 2009 2009 2009 2009
(dollars in thousands)
Net income (loss)
available to $ (4,056 ) $ (932 ) $ 786 $ 125 $ 363
common
shareholders
Add (deduct):
Preferred stock
dividend and 6,242 965 966 982 847
accretion
Income tax 1,233 17 818 632 781
expense
Provision for
loan and lease 4,148 4,000 3,500 2,500 3,000
losses
Loss on other - - - 1,700 -
real estate owned
Subtotal 7,567 4,050 6,070 5,939 4,991
Gains and losses (750 ) 1,789 - (670 ) -
on securities
Core operating
earnings for the $ 6,817 $ 5,839 $ 6,070 $ 5,269 $ 4,991
three months
ended
As a supplement to GAAP, Bancorp has provided this non-GAAP performance
result. The Company believes that this non-GAAP financial measure is
(1) useful because it allows investors to assess its operating performance.
Although this non-GAAP financial measure is intended to enhance
investors' understanding of the Company's business and performance, it
should not be considered an alternative to GAAP.
Capital Ratios
Tier 1 capital Tier 1 capital Total capital
to average to risk-weighted to risk-weighted
assets ratio assets ratio assets ratio
As of March 31, 2010
The Bancorp, Inc. 8.64% 13.08% 14.33%
The Bancorp Bank 7.41% 11.23% 12.48%
"Well capitalized"
institution (under FDIC 5.00% 6.00% 10.00%
regulations)
As of December 31, 2009
The Bancorp, Inc. 12.68% 15.81% 17.06%
The Bancorp Bank 8.78% 10.97% 12.22%
"Well capitalized"
institution (under FDIC 5.00% 6.00% 10.00%
regulations)
Balance Sheet Summary
At March 31, 2010, Bancorp's total assets were $2.1 billion, an increase
of $49.0 million or 2% from December 31, 2009. Investments increased to
$177.7 million, an increase of $62.7 million or 55% and deposits
increased to $1.9 billion, an increase of $207.8 million or 13%, over
December 31, 2009.
Conference Call Webcast
You may access the LIVE webcast of Bancorp's Quarterly Earnings
Conference Call at 10:00 AM EDT Monday, April 26, 2010 by clicking on
the webcast link on Bancorp's homepage at www.thebancorp.com.
Or, you may dial 866.356.3095 using access code 40883618. You may listen
to the replay of the webcast following the live call on Bancorp's
investor relations website or telephonically until Monday, May 03, 2010
by dialing 888.286.8010, access code 31649563.
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 programs nationwide. The Bancorp Bank's regional community bank
operations serve the needs of small and mid-size businesses and their
principals in the Philadelphia-Wilmington region.
Forward Looking Statements
Statements in this earnings release regarding The Bancorp, Inc.'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
these risks and uncertainties, see The Bancorp, Inc.'s filings with the
SEC, including the "Risk Factors" section of The Bancorp Inc.'s 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
presentation. The Bancorp, Inc. does not undertake to publicly revise or
update forward-looking statements in this presentation to reflect events
or circumstances that arise after the date of this presentation, except
as may be required under applicable law.
The Bancorp, Inc.
Financial highlights
(unaudited)
Three months ended
March 31, December 31,
2010 2009 2009
(dollars in thousands except per share data)
Condensed statement of operations
Net interest income $16,418 $14,916 $16,849
Provision for loan and lease 4,148 3,000 4,000
losses
Non-interest income
Gains (losses) on investment 750 - (1,789 )
securities
Other non-interest income 4,849 3,328 3,364
Total non-interest income 5,599 3,328 1,575
Non-interest expense 14,450 13,253 14,374
Net income before income tax 3,419 1,991 50
expense
Income tax expense 1,233 781 17
Net income 2,186 1,210 33
Less preferred stock dividends (433 ) (582 ) (565 )
Less preferred stock accretion (5,809 ) (265 ) (400 )
Net income (loss) available to $(4,056 ) $363 $(932 )
common shareholders
Basic earnings (loss) per share $(0.15 ) $0.03 $(0.04 )
Diluted earnings (loss) per share $(0.15 ) $0.03 $(0.04 )
Weighted average shares - basic 26,181,291 14,563,919 26,181,291
Weighted average shares - diluted 26,181,291 14,563,919 26,181,291
Balance sheet March 31, December 31, September 30, March 31,
2010 2009 2009 2009
(dollars in thousands)
Assets:
Cash and cash
equivalents
Cash and due from $ 173,604 $ 135,246 $ 133,453 $ 117,669
banks
Interest bearing 164,829 219,213 1,033 2,046
deposits
Federal funds sold - - 210,506 18,114
Total cash and cash 338,433 354,459 344,992 137,829
equivalents
Investment
securities, 156,191 93,478 117,839 86,045
available-for-sale,
at fair value
Investment
securities, 21,488 21,468 23,549 23,535
held-to-maturity
Loans, net of 1,527,691 1,523,722 1,513,131 1,471,556
deferred costs
Allowance for loan (20,357 ) (19,123 ) (18,436 ) (18,977 )
and lease losses
Loans, net 1,507,334 1,504,599 1,494,695 1,452,579
Premises and 8,140 7,942 7,740 8,496
equipment, net
Accrued interest 7,589 7,722 7,708 6,872
receivable
Intangible assets, 9,755 10,005 10,255 10,755
net
Other real estate 648 459 - 4,600
owned
Deferred tax asset, 20,872 20,875 22,220 22,794
net
Other assets 22,063 22,527 12,036 13,567
Total assets $ 2,092,513 $ 2,043,534 $ 2,041,034 $ 1,767,072
Liabilities:
Deposits
Demand (non-interest $ 973,116 $ 506,641 $ 787,393 $ 479,765
bearing)
Savings, money
market and interest 875,511 1,005,048 890,587 860,584
checking
Time deposits 1,317 125,255 71,000 116,046
Time deposits, 12,339 17,565 23,350 20,480
$100,000 and over
Total deposits 1,862,283 1,654,509 1,772,330 1,476,875
Securities sold
under agreements to 8,245 2,588 696 3,364
repurchase
Short-term - 100,000 - 86,000
borrowings
Accrued interest 136 362 322 414
payable
Subordinated 13,401 13,401 13,401 13,401
debenture
Other liabilities 6,401 27,471 7,741 5,856
Total liabilities $ 1,890,466 $ 1,798,331 $ 1,794,490 $ 1,585,910
Shareholders'
equity:
Preferred stock -
authorized 5,000,000 - - - 1
shares, Series A,
$0.01 par value
Series B, $1,000 - 39,411 39,010 39,293
liquidation value
Common stock -
authorized, 26,181 26,181 26,181 14,563
50,000,000 shares of
$1.00 par value
Additional paid-in 196,898 196,875 196,827 145,183
capital
Accumulated deficit (21,231 ) (17,175 ) (16,242 ) (17,154 )
Accumulated other
comprehensive income 199 (89 ) 768 (724 )
(loss)
Total shareholders' 202,047 245,203 246,544 181,162
equity
Total liabilities
and shareholders' $ 2,092,513 $ 2,043,534 $ 2,041,034 $ 1,767,072
equity
Average balance sheets Three months ended March 31, Three months ended March 31,
and net interest 2010 2009
income:
(Dollars in thousands) Average Average Average Average
Assets: Balance Interest Rate Balance Interest Rate
Interest-earning
assets:
Loans net of unearned $ 1,518,631 $ 17,972 4.73 % $ 1,457,084 $ 18,244 5.01 %
discount
Investment 130,432 1,308 4.01 % 109,761 1,077 3.93 %
securities-taxable
Investment 30,855 586 7.60 % - - - %
securities-nontaxable*
Interest bearing
deposits at Federal 472,388 352 0.30 % 2,033 3 0.58 %
Reserve Bank
Federal funds sold - - - 98,215 93 0.38 %
Net interest-earning 2,152,306 20,218 3.76 % 1,667,093 19,417 4.66 %
assets
Allowance for loan and (19,821 ) (17,878 )
lease losses
Other assets 201,340 167,783
$ 2,333,825 $ 1,816,998
Liabilities and
Shareholders' equity:
Deposits:
Demand (non-interest $ 950,319 $ 536,532
bearing)
Interest bearing
deposits
Interest checking 539,757 $ 1,744 1.29 % 315,525 $ 1,159 1.47 %
Savings and money 544,758 1,499 1.10 % 520,538 1,530 1.18 %
market
Time 50,270 133 1.05 % 216,494 1,525 2.82 %
Total interest bearing 1,134,785 3,376 1.19 % 1,052,557 4,214 1.60 %
deposits
Total deposits 2,085,104 0.65 % 1,589,089 1.06 %
Short-term borrowings 3,183 5 0.68 % 24,400 49 0.80 %
Repurchase agreements 4,774 7 0.59 % 2,319 11 1.97 %
Subordinated debt 13,401 215 6.42 % 13,401 227 6.78 %
Net interest bearing 1,156,143 3,603 1.25 % 1,092,677 4,501 1.65 %
liabilities
Other liabilities 12,658 7,202
Total liabilities 2,119,120 1,636,411
Shareholders' equity 214,705 180,587
$ 2,333,825 $ 1,816,998
Net interest income on 16,615 14,916
tax equivalent basis*
Tax equivalent 197 -
adjustment
Net interest income $ 16,418 $ 14,916
Net interest margin * 3.09 % 3.58 %
* Taxable equivalent basis, using a 34% statutory tax rate
Allowance for loan and lease losses: March 31, March 31, December 31,
2010 2009 2009
(dollars in thousands)
Balance in the allowance for loan and $ 19,123 $ 17,361 $ 17,361
lease losses at beginning of period
Loans charged-off:
Commercial 2,728 1,290 6,314
Construction - 26 4,546
Lease financing - 49 49
Residential mortgage 223 - 328
Consumer 44 21 127
Total 2,995 1,386 11,364
Recoveries:
Commercial 79 - 53
Construction 1 1 32
Lease financing - - 27
Residential mortgage - - 12
Consumer 1 1 2
Total 81 2 126
Net charge-offs 2,914 1,384 11,238
Provision charged to operations 4,148 3,000 13,000
Balance in allowance for loan and lease $ 20,357 $ 18,977 $ 19,123
losses at end of period
Net charge-offs/average loans 0.19 % 0.09 % 0.76 %
Loan Portfolio: March 31, December 31, September 30, March 31,
2010 2009 2009 2009
Amount Amount Amount Amount
(dollars in thousands)
Commercial $ 413,361 $ 402,232 $ 394,316 $ 348,765
Commercial mortgage (1) 557,713 569,434 562,611 506,337
Construction 206,275 207,184 227,226 309,411
Total commercial loans 1,177,349 1,178,850 1,184,153 1,164,513
Direct financing leases 81,904 78,802 81,097 83,326
Residential mortgage 89,005 85,759 75,413 60,282
Consumer loans and others 177,456 178,608 170,238 161,945
1,525,714 1,522,019 1,510,901 1,470,066
Unamortized costs (fees) 1,977 1,703 2,230 1,490
Total loans, net of
unamortized fees and $ 1,527,691 $ 1,523,722 $ 1,513,131 $ 1,471,556
costs
Supplemental loan data:
Construction 1-4 family $ 98,151 $ 100,088 $ 119,752 $ 159,148
Construction commercial,
acquisition and 108,124 107,096 107,474 150,263
development
$ 206,275 $ 207,184 $ 227,226 $ 309,411
(1) At March 31, 2010 our owner-occupied loans amounted to $105 million, or
18.9% of commercial mortgages.
Three months ended Year ended
March 31, December 31, December 31,
2010 2009 2009 2009
Selected operating ratios
(1)
Return on average assets 0.37 % 0.27 % 0.01 % 0.22 %
Return on average equity 4.07 % 2.68 % 0.05 % 1.99 %
Net interest margin 3.09 % 3.58 % 3.84 % 3.74 %
Efficiency ratio 67.95 % 72.64 % 71.11 % 73.29 %
Book value per common $ 7.72 $ 9.27 $ 7.64 $ 7.64
share (2)
(1) Annualized
(2) Excludes Series B Preferred Shares issued to the US Treasury and the
associated book value
March 31, December 31, September 30, March 31,
2010 2009 2009 2009
(dollars in thousands)
Asset quality ratios
Nonperforming loans to 1.44 % 1.66 % 1.77 % 1.72 %
total loans (1)
Nonperforming assets to 1.08 % 1.26 % 1.31 % 1.69 %
total assets (1)
Allowance for loan and
lease losses to total 1.33 % 1.26 % 1.22 % 1.29 %
loans
Nonaccrual loans $ 17,863 $ 12,270 $ 11,776 $ 11,949
Total nonperforming loans 17,863 12,270 11,776 11,949
Other real estate owned 648 459 - 4,600
Total nonperforming $ 18,511 $ 12,729 $ 11,776 $ 16,549
assets
Loans 90 days past due $ 4,071 $ 12,994 $ 15,012 $ 13,362
still accruing interest
(1) Nonperforming loans are defined as nonaccrual loans and restructured loans.
Loans 90 days past due and still accruing interest are also included in the
above ratios.
Source: The Bancorp, Inc.
Contact: The Bancorp, Inc.
Andres Viroslav, 215-861-7990
andres.viroslav@thebancorp.com