WILMINGTON, Del.--(BUSINESS WIRE)--
The Bancorp, Inc. ("Bancorp") (NASDAQ:TBBK), a bank holding company,
today reported results for the quarter and year ended December 31, 2009.
Financial Highlights:
-- Diluted earnings per share of $0.02 for the year ended December 31, 2009
compared to a loss per share of $2.93 for the year ended December 31,
2008
-- Net interest income increased $1.9 million, or 13%, during the fourth
quarter of 2009 and $9.5 million, or, 18% for the year ended December
31, 2009, compared to respective 2008 periods
-- Net interest margin was 3.84% in the fourth quarter of 2009 compared to
3.69% in the fourth quarter of 2008 and 3.74% and 3.44% for fiscal 2009
and 2008
-- Interest on deposits decreased to 0.83% for fourth quarter of 2009 from
1.87% for the fourth quarter of 2008
-- Transaction account balances represented 91% of total deposit balances
at December 31, 2009
-- Construction loans decreased 32% to $207.2 million at December 31, 2009
compared to fiscal 2008
Financial Results
Bancorp reported a net loss available to common shareholders for the
three months ended December 31, 2009 of $932,000, or a loss per share of
$0.04, after pretax losses related to securities of $2.2 million and
after-tax TARP-related costs of $965,000, based on 26,181,291 weighted
average shares outstanding, compared to a loss available to common
shareholders of $41.4 million, or a loss per share of $2.84, primarily
relating to pretax charges on securities and goodwill impairment, of
$11.6 million and $51.9 million, respectively and after-tax TARP-related
costs of $186,000, based on 14,563,919 weighted average shares
outstanding, for the three months ended December 31, 2008.
For the year ended December 31, 2009, Bancorp reported net income
available to common shareholders of $342,000, or earnings per share -
diluted of $0.02, based on 19,324,335 weighted average shares
outstanding, compared to a net loss available to common shareholders of
$42.6 million, or a loss per share - diluted of $2.93, based on
14,563,182 weighted average shares outstanding, for the year ended
December 31, 2008.
Betsy Z. Cohen, Bancorp's Chief Executive Officer, said, "The quarterly
loss is attributable to a pretax securities impairment charge of $2.2
million, or $0.06 per share after tax, against our remaining $21.5
million portfolio of trust preferred securities, and an additional $4.0
million in provisions for loan losses. The bank remains well capitalized
after the recognition of this loss and continues to experience
significant growth in its core deposit generation programs. Deposits
from health saving accounts increased 43.1% to over $302 million since
December 31, 2008 and deposits attributable to our prepaid cards have
grown 344.6% to $520 million since acquisition of the bank's prepaid
card division in November 2007. Loans also increased even after a
decrease in both outstandings and commitments in the bank's construction
loan portfolio. Finally, nonperforming loans at December 31, 2009
represented 1.66% of total loans compared to 1.77% of total loans at
September 30, 2009."
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 DECEMBER 31, 2009
The Bancorp, Inc. 12.68% 15.80% 17.06%
"Well capitalized"
institution (under FDIC 5.00% 6.00% 10.00%
regulations)
AS OF DECEMBER 31, 2008
The Bancorp, Inc. 10.10% 11.72% 12.87%
"Well capitalized"
institution (under FDIC 5.00% 6.00% 10.00%
regulations)
Balance Sheet Summary
At December 31, 2009, Bancorp's total assets were $2.043 billion, an
increase of $251.1 million or 14.0% from December 31, 2008. Loans grew
to $1.5 billion, an increase of $74.4 million or 5.1% over December 31,
2008, and deposits increased to $1.7 billion, an increase of $134.7
million or 8.9%, over December 31, 2008. Total common shares outstanding
were 26,181,291 at December 31, 2009 and 14,563,919 December 31, 2008.
Conference Call Webcast
You may access the LIVE webcast of Bancorp's Quarterly Earnings
Conference Call at 9:00 AM EST Thursday, January 28, 2010 by clicking on
the webcast link on Bancorp's homepage at www.thebancorp.com.
Or, you may dial 866.788.0542 using access code 99705194. You may listen
to the replay of the webcast following the live call on Bancorp's
investor relations website or telephonically until Thursday, February 4,
2010 by dialing 888.286.8010, access code 31280636.
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
division serves 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 the words "may,"
"believe," "will," "expect," "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 Year ended
December 31, December 31,
2009 2008 2009 2008
(dollars in thousands except (dollars in thousands except per
per share data) share data)
Condensed
income
statement
Net interest $ 16,849 $ 14,905 $ 63,709 $ 54,219
income
Provision
for loan and 4,000 3,700 13,000 12,500
lease losses
Non-interest -
income
Other than
temporary
impairment (2,225 ) (11,611 ) (2,225 ) (19,886 )
of
investment
securities
Other
non-interest 3,800 3,111 14,044 12,283
income
Total
non-interest 1,575 (8,500 ) 11,819 (7,603 )
income
Non-interest
expense
Loss on
other real - - 1,700 -
estate owned
Other
non-interest 14,374 64,142 54,478 97,388
expense
Total
non-interest 14,374 64,142 56,178 97,388
expense
Net income
(loss)
before 50 (61,437 ) 6,350 (63,272 )
income tax
expense
Income tax
expense 17 (20,242 ) 2,248 (20,892 )
(benefit)
Net income 33 (41,195 ) 4,102 (42,380 )
(loss)
Less
preferred (565 ) (143 ) (2,293 ) (184 )
stock
dividends
Less
preferred (400 ) (59 ) (1,467 ) (59 )
stock
accretion
Net income
(loss)
available to $ (932 ) $ (41,397 ) $ 342 $ (42,623 )
common
shareholders
Basic
earnings $ (0.04 ) $ (2.84 ) $ 0.02 $ (2.93 )
(loss) per
share
Diluted
earnings $ (0.04 ) $ (2.84 ) $ 0.02 $ (2.93 )
(loss) per
share
Weighted
average 26,181,291 14,563,919 18,794,590 14,563,182
shares -
basic
Weighted
average 26,181,291 14,563,919 19,324,335 14,563,182
shares -
diluted
Balance sheet December 31, September 30, June 30, December 31,
2009 2009 2009 2008
ASSETS
Cash and cash
equivalents
Cash and due from $ 135,246 $ 133,453 $ 69,950 $ 90,744
banks
Interest bearing
deposits at Federal 219,213 1,033 2,047 1,033
Reserve Bank
Federal funds sold - 210,506 12,102 87,729
Total cash and cash 354,459 344,992 84,099 179,506
equivalents
Investment
securities, 93,478 117,839 119,781 82,929
available-for-sale,
at fair value
Investment
securities, 21,468 23,549 23,542 23,529
held-to-maturity
Loans, net of 1,523,722 1,513,131 1,459,965 1,449,349
deferred loan costs
Allowance for loan (19,123 ) (18,436 ) (18,080 ) (17,361 )
and lease losses
Loans, net 1,504,599 1,494,695 1,441,885 1,431,988
Premises and 7,942 7,740 8,129 8,279
equipment, net
Accrued interest 7,722 7,708 7,499 7,799
receivable
Intangible assets, 10,005 10,255 10,505 11,005
net
Other real estate 459 - - 4,600
owned
Deferred tax asset, 20,875 22,220 23,017 22,847
net
Other assets 22,527 12,036 13,121 19,893
Total assets $ 2,043,534 $ 2,041,034 $ 1,731,578 $ 1,792,375
LIABILITIES
Deposits
Demand
(non-interest $ 506,641 $ 787,393 $ 405,251 $ 334,498
bearing)
Savings, money
market and interest 1,005,048 890,587 903,514 804,502
checking
Time deposits 125,255 71,000 155,888 357,831
Time deposits, 17,565 23,350 20,420 23,016
$100,000 and over
Total deposits 1,654,509 1,772,330 1,485,073 1,519,847
Securities sold
under agreements to 2,588 696 2,394 9,419
repurchase
Short-term 100,000 - 41,000 61,000
borrowings
Accrued interest 362 322 406 2,475
payable
Subordinated 13,401 13,401 13,401 13,401
debenture
Other liabilities 27,471 7,741 8,025 5,830
Total liabilities 1,798,331 1,794,490 1,550,299 1,611,972
SHAREHOLDERS'
EQUITY
Preferred stock -
authorized
5,000,000 shares,
series A, $0.01 par
value; 0 and
108,136 shares - - 1 1
issued and
outstanding at
December 31, 2009
and 2008
respectively;
Series B, $1,000
liquidation value,
45,220 shares
issued and 39,411 39,010 38,610 39,028
outstanding at
December 31, 2009
and 2008,
respectively
Common stock -
authorized,
50,000,000 shares
of $1.00 par value;
26,181,291 and
14,563,919 shares 26,181 26,181 14,563 14,563
issued and
outstanding at
December 31, 2009
and 2008,
respectively
Additional paid-in 196,875 196,827 146,293 145,156
capital
Accumulated deficit (17,175 ) (16,242 ) (17,029 ) (17,517 )
Accumulated other
comprehensive gain (89 ) 768 (1,159 ) (828 )
(loss)
Total shareholders' 245,203 246,544 181,279 180,403
equity
Total liabilities
and shareholders' $ 2,043,534 $ 2,041,034 $ 1,731,578 $ 1,792,375
equity
For the years ended:
Allowance for loan and lease losses December 31, December 31,
2009 2008
Balance in the allowance for loan and lease losses $ 17,361 $ 10,233
at beginning of period
Loans charged-off:
Commercial 6,314 733
Construction 4,546 2,744
Lease financing 49 55
Residential mortgage 328 1,992
Consumer 127 9
Total 11,364 5,533
Recoveries:
Commercial 53 -
Construction 32 152
Lease financing 27 5
Residential mortgage 12 -
Consumer 2 4
Total 126 161
Net charge-offs (recoveries) 11,238 5,372
Provision charged to operations 13,000 12,500
Balance in allowance for loan and lease losses at $ 19,123 $ 17,361
end of period
Net charge-offs/average loans 0.76 % 0.38 %
Loan Portfolio
December 31, September 30, June 30, December 31,
2009 2009 2009 2008
Amount Amount Amount Amount
Commercial $ 402,232 $ 394,316 $ 363,524 $ 353,219
Commercial mortgage* 569,434 562,611 522,510 488,986
Construction 207,184 227,226 255,504 305,889
Total commercial loans 1,178,850 1,184,153 1,141,538 1,148,094
Direct financing leases 78,802 81,097 80,774 85,092
Residential mortgage 85,759 75,413 64,934 57,636
Consumer and other loans 178,608 170,238 170,999 157,446
1,522,019 1,510,901 1,458,245 1,448,268
Unamortized costs (fees) 1,703 2,230 1,720 1,081
Total loans, net of
unamortized fees and $ 1,523,722 $ 1,513,131 $ 1,459,965 $ 1,449,349
costs
Supplemental loan data :
Construction 1-4 family $ 100,088 $ 119,752 $ 124,443 $ 163,718
Construction commercial,
acquisition and 107,096 107,474 131,061 142,171
development
$ 207,184 $ 227,226 $ 255,504 $ 305,889
*At December 31, 2009, owner occupied loans amounted to $104 million, or 18% of
commercial mortgages.
Average balance sheet Three months ended December 31, Three months ended December 31,
and net interest 2009 2008
income
(Dollars in thousands) Average Average Average Average
Assets: Balance Interest Rate Balance Interest Rate
Interest-earning
assets:
Loans net of unearned $ 1,515,632 $ 18,727 4.94 % $ 1,460,204 $ 20,765 5.69 %
discount
Investment 111,548 1,198 4.30 % 116,816 1,555 5.32 %
securities-taxable
Investment 34,709 712 8.20 % - - -
securities-nontaxable*
Interest bearing
deposits at Federal 79,122 51 0.26 % 1,322 1 0.30 %
Reserve Bank
Federal funds sold 39,243 30 0.31 % 37,634 95 1.01 %
Net interest-earning 1,780,254 20,718 4.66 % 1,615,976 22,416 5.55 %
assets
Allowance for loan and (18,946 ) (15,853 )
lease losses
Other assets 157,708 177,512
$ 1,919,016 $ 1,777,635
Liabilities and
Shareholders' Equity:
Deposits:
Demand (non-interest $ 615,081 $ 359,924
bearing)
Interest bearing
deposits
Interest checking 420,498 $ 1,488 1.42 % 230,213 $ 1,529 2.66 %
Savings and money 505,898 1,655 1.31 % 457,591 1,975 1.73 %
market
Time 76,192 218 1.14 % 397,009 3,250 3.27 %
Total interest bearing 1,002,588 3,361 1.34 % 1,084,813 6,754 2.49 %
deposits
Total deposits 1,617,669 0.83 % 1,444,737 1.87 %
Short term borrowings 29,837 50 0.68 % 122,992 510 1.66 %
Repurchase agreements 1,602 4 1.04 % 2,604 13 1.83 %
Subordinated debt 13,401 216 6.44 % 13,401 234 6.99 %
Net interest bearing 1,047,428 3,631 1.39 % 1,223,810 7,511 2.45 %
liabilities
Other liabilities 8,246 10,020
Total Liabilities 1,670,755 1,593,754
Shareholders' equity 248,261 183,881
$ 1,919,016 $ 1,777,635
Net interest income on 17,087 14,905
tax equivalent basis*
Tax equivalent 238 -
adjustment
Net interest income $ 16,849 $ 14,905
Net interest margin * 3.84 % 3.69 %
* Full taxable equivalent basis to be comparable to the interest income of all other
categories, using a 34% statutory tax rate
Three months ended Year ended
December 31, December 31,
2009 2008 2009 2008
Selected operating ratios
Return on average assets 0.01% nm 0.22% nm
Return on average equity 0.05% nm 1.99% nm
Net interest margin 3.84% 3.69% 3.74% 3.44%
Efficiency ratio 71.11% nm 73.29% nm
Book value per share (1) $ 7.64 $ 9.21 $ 7.64 $ 9.21
(1) Excludes Series B Preferred Shares issued to the US Treasury and the
associated book value
'nm' - not meaningful
December 31, September 30, June 30, December 31,
2009 2009 2009 2008
Asset quality ratios
Nonperforming loans to 1.66% 1.77% 2.09% 0.88%
total loans
Nonperforming assets to 1.26% 1.31% 1.76% 0.97%
total assets
Allowance for loan and 1.26% 1.22% 1.24% 1.20%
lease losses to total loans
Nonaccrual loans $ 12,270 $ 11,776 $ 8,716 $ 8,729
Loans 90 days past due $ 12,994 $ 15,012 $ 21,779 $ 4,055
still accruing interest
Other real estate owned $ 459 $ - $ - $ 4,600
Source: The Bancorp, Inc.
Contact: The Bancorp, Inc.
Andres Viroslav
215-861-7990
andres.viroslav@thebancorp.com