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The Bancorp, Inc. Reports Third Quarter 2018 Financial Results

October 25, 2018

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. ("The Bancorp") (NASDAQ:TBBK), a financial holding company, today reported financial results for the third quarter of 2018.

Highlights

  • Pretax income from continuing operations increased to $83.2 million for the quarter ended September 30, 2018 compared to $12.2 million for the quarter ended September 30, 2017. The increase reflected a $65.0 million gain on the sale of the Company’s Individual Retirement Account portfolio.
  • Diluted earnings per share for the quarter ended September 30, 2018 were $1.07 and $0.23, excluding the tax effected impact of the gain on sale of the IRA portfolio. That compares to $0.13 diluted earnings per share for the quarter ended September 30, 2017.
  • Net interest income increased 10% to $30.6 million for the quarter ended September 30, 2018, compared to $27.9 million for the quarter ended September 30, 2017.
  • Interest income on security backed lines of credit (“SBLOC”) loans increased 30% to $7.7 million for the quarter ended September 30, 2018, compared to $5.9 million for the quarter ended September 30, 2017.
  • Net interest margin increased to 3.22% for the quarter ended September 30, 2018, compared to 3.11% for the quarter ended June 30, 2018.
  • Total payments revenue, consisting of prepaid card fees and card payment and Automated Clearing House processing fees for the quarter ended September 30, 2018 increased to $15.5 million, or 10%, compared to the quarter ended September 30, 2017. Of that total, prepaid fees for the quarter ended September 30, 2018 increased to $13.2 million, or 6%, and ACH, card and other processing fees increased to $2.3 million, or 46% compared to the quarter ended September 30, 2017, respectively.
  • Loans increased 9% to $1.50 billion at September 30, 2018, compared to $1.37 billion at September 30, 2017.
  • SBLOC loans increased 8% to $778.6 million at September 30, 2018, compared to $720.3 million at September 30, 2017.
  • Small Business Administration (“SBA”) loans increased 19% to $459.8 million at September 30, 2018, compared to $386.8 million at September 30, 2017.
  • Direct lease financing increased 7% to $396.0 million at September 30, 2018, compared to $368.7 million at September 30, 2017.
  • The rate on $3.88 billion of average deposits and interest-bearing liabilities in the third quarter of 2018 was 0.83% with a rate of 0.94% for $2.11 billion of average prepaid card deposits.
  • Non-interest expense decreased to $37.3 million for the quarter ended September 30, 2018, a 15% decrease from the third quarter of 2017. Year-to-date non-interest expense was $113.7 million compared to $119.0 million for year-to-date 2017, a decrease of 5%.
  • The benefit of the lower federal tax rate in 2018 compared to 2017 was increased in the third quarter, as the lower federal statutory rate of 21% (compared to 34% in 2017) was applied to the $65 million gain on sale of IRA portfolio.
  • Consolidated leverage ratio was 9.61% at September 30, 2018. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.
  • Book value per common share at September 30, 2018 was $6.95 per share.

Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “As previously announced, we sold our Safe Harbor IRA portfolio that generated $6 million in 2017 fees. The sale price was $65 million and added 84 cents a share to book value. The sale of our Safe Harbor IRA portfolio concludes our divestiture of non-core assets started when our new business plan was approved by our board in the third quarter of 2016. Like our European and Health Savings Accounts franchises, our safe harbor IRA portfolio was sub-scale, carried regulatory risks and was unlikely to deliver longer-term growth or innovation to our business model. Therefore, its sale for $65 million, or over 10 times 2017 fees, allowed us to complete the process of focusing and de-risking our institution, while significantly enhancing our capital position without diluting the equity ownership of our shareholders.”

The Bancorp reported net income of $61.3 million, or $1.07 income per diluted share, for the quarter ended September 30, 2018, compared to net income of $7.3 million, or $0.13 income per diluted share, for the quarter ended September 30, 2017. Pretax income from continuing operations for third quarter 2018 increased to $83.2 million compared to $12.2 million reported for third quarter 2017. Income from continuing operations does not include any income which may result from the reinvestment of the proceeds from sales or repayment of the remaining assets in The Bancorp’s discontinued operations. Tier one capital to assets, tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 ratios were 9.64%, 24.05%, 24.53% and 24.05%, 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, October 26, 2018 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 9061088. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, November 2, 2018 by dialing 855.859.2056, access code 9061088.

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 SEC, 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 presentation, except as may be required under applicable law.

 

 
The Bancorp, Inc.
Financial highlights
(unaudited)
                       
Three months ended Nine months ended
September 30, September 30,
Condensed income statement   2018   2017   2018   2017
(dollars in thousands except per share data)
 
Net interest income $ 30,632 $ 27,901 $ 90,240 $ 79,993
Provision for loan and lease losses   1,060   800   2,660   2,150
Non-interest income
Service fees on deposit accounts 402 1,700 3,624 4,895
Card payment and ACH processing fees 2,281 1,564 6,275 4,596
Prepaid card fees 13,204 12,491 41,559 39,272
Gain on sale of loans 8,999 11,394 20,274 17,535
Gain on sale of investment securities 15 506 41 1,595
Change in value of investment in unconsolidated entity (78) (4) (2,981) (20)
Leasing income 758 705 2,353 2,088
Affinity fees 84 275 271 1,445
Gain on sale of IRA portfolio 65,000 - 65,000 -
Gain on sale of health savings accounts - - - 2,538
Loss from sale of European prepaid card operations - - - (3,437)
Other non-interest income   305   376   689   892
Total non-interest income 90,970 29,007 137,105 71,399
Non-interest expense
Salaries and employee benefits 19,243 21,788 59,213 57,902
Data processing expense 1,380 1,926 4,741 8,047
Legal expense 1,610 2,744 5,811 5,909
FDIC Insurance 2,241 2,063 7,389 7,586
Software 3,593 3,088 9,879 9,328
Losses and write downs on other real estate owned - - 45 19
Civil money penalty - 2,500 (290) 2,500
Lease termination expense - - 395 -
Other non-interest expense   9,232   9,774   26,475   27,738
Total non-interest expense   37,299   43,883   113,658   119,029
Income from continuing operations before income taxes 83,243 12,225 111,027 30,213
Income tax expense (benefit)   21,942   5,455   29,550   (457)
Net income from continuing operations 61,301 6,770 81,477 30,670
Discontinued operations
Income (loss) from discontinued operations before income taxes (370) 829 (264) 5,488
Income tax expense (benefit)   (346)   318   (345)   2,050
Net income (loss) from discontinued operations, net of tax   (24)   511   81   3,438
Net income available to common shareholders $ 61,277 $ 7,281 $ 81,558 $ 34,108
 
Net income per share from continuing operations - basic $ 1.09 $ 0.12 $ 1.45 $ 0.55
Net income per share from discontinued operations - basic $ - $ 0.01 $ - $ 0.06
Net income per share - basic $ 1.09 $ 0.13 $ 1.45 $ 0.61
 
Net income per share from continuing operations - diluted $ 1.07 $ 0.12 $ 1.43 $ 0.55
Net income per share from discontinued operations - diluted $ - $ 0.01 $ - $ 0.06
Net income per share - diluted $ 1.07 $ 0.13 $ 1.43 $ 0.61
Weighted average shares - basic 56,442,222 55,758,433 56,309,390 55,661,538
Weighted average shares - diluted 57,103,301 56,312,838 57,084,844 56,043,909
 
                     
Balance sheetSeptember 30, June 30, December 31, September 30,
    2018   2018   2017   2017
(dollars in thousands)
Assets:
Cash and cash equivalents
Cash and due from banks $ 2,245 $ 3,052 $ 3,152 $ 5,813
Interest earning deposits at Federal Reserve Bank 710,816 373,782 841,471 328,023
Securities sold under agreements to resell   64,518   64,216   64,312   65,095
Total cash and cash equivalents   777,579   441,050   908,935   398,931
 
Investment securities, available-for-sale, at fair value 1,274,417 1,305,494 1,294,484 1,196,956
Investment securities, held-to-maturity 84,433 86,354 86,380 86,402
Commercial loans held for sale, at fair value 308,470 447,997 503,316 380,272
Loans, net of deferred fees and costs 1,496,773 1,506,812 1,392,228 1,374,060
Allowance for loan and lease losses   (8,092)   (8,014)   (7,096)   (7,283)
Loans, net   1,488,681   1,498,798   1,385,132   1,366,777
Federal Home Loan Bank & Atlantic Community Bancshares stock 1,113 1,113 991 991
Premises and equipment, net 17,686 18,275 20,051 21,087
Accrued interest receivable 11,621 11,810 10,900 10,131
Intangible assets, net 4,229 4,612 5,377 5,185
Other real estate owned 405 405 450 -
Deferred tax asset, net 40,991 39,779 34,802 53,017
Investment in unconsolidated entity 64,212 67,994 74,473 107,711
Assets held for sale from discontinued operations 226,026 241,694 304,313 314,994
Other assets   60,337   56,499   78,543   51,164
Total assets $ 4,360,200 $ 4,221,874 $ 4,708,147 $ 3,993,618
 
Liabilities:
Deposits
Demand and interest checking $ 3,540,605 $ 3,287,682 $ 3,806,965 $ 3,113,212
Savings and money market   317,453   511,598   453,877   452,183
Total deposits   3,858,058   3,799,280   4,260,842   3,565,395
 
Securities sold under agreements to repurchase 158 161 217 180
Subordinated debenture 13,401 13,401 13,401 13,401
Long-term borrowings 41,841 42,000 42,323 42,482
Other liabilities   54,868   34,485   67,215   32,699
Total liabilities $ 3,968,326 $ 3,889,327 $ 4,383,998 $ 3,654,157
 
Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,446,088 and 55,859,660 shares issued at September 30, 2018 and 2017, respectively 56,446 56,411 55,861 55,860
Treasury stock (100,000 shares) (866) (866) (866) (866)
Additional paid-in capital 365,749 364,460 363,196 362,340
Accumulated deficit (7,936) (69,213) (89,485) (77,850)
Accumulated other comprehensive loss   (21,519)   (18,245)   (4,557)   (23)
Total shareholders' equity   391,874   332,547   324,149   339,461
 
Total liabilities and shareholders' equity $ 4,360,200 $ 4,221,874 $ 4,708,147 $ 3,993,618
 
   
Average balance sheet and net interest income Three months ended September 30, 2018 Three months ended September 30, 2017
  (dollars in thousands)
Average       Average Average       Average
Assets: Balance Interest Rate Balance Interest Rate
Interest earning assets:
Loans net of unearned fees and costs ** $ 1,980,814 $ 24,708 4.99% $ 1,816,751 $ 21,147 4.66%
Leases - bank qualified* 19,343 346 7.16% 20,787 419 8.06%
Investment securities-taxable 1,362,529 10,906 3.20% 1,235,615 8,847 2.86%
Investment securities-nontaxable* 8,145 63 3.09% 13,238 133 4.02%
Interest earning deposits at Federal Reserve Bank 445,765 2,239 2.01% 366,724 1,190 1.30%
Federal funds sold and securities purchased under
agreement to resell 64,186 480 2.99% 65,008 371 2.28%
Net interest earning assets 3,880,782 38,742 3.99% 3,518,123 32,107 3.65%
 
Allowance for loan and lease losses (7,971) (6,961)
Assets held for sale from discontinued operations 233,732 2,295 3.93% 325,912 3,098 3.80%
Other assets 141,204 235,070
$ 4,247,747 $ 4,072,144
 
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking $ 3,418,878 $ 6,224 0.73% $ 3,224,167 $ 3,136 0.39%
Savings and money market 419,121 1,466 1.40% 439,688 552 0.50%
Total deposits 3,837,999 7,690 0.80% 3,663,855 3,688 0.40%
 
Short-term borrowings 25,602 148 2.31% 51,413 175 1.36%
Securities sold under agreements to repurchase 160 - 0.00% 189 - 0.00%
Subordinated debentures 13,401 186 5.55% 13,401 150 4.48%
Total deposits and liabilities 3,877,162 8,024 0.83% 3,728,858 4,013 0.43%
 
Other liabilities 8,374 8,046
Total liabilities 3,885,536 3,736,904
 
Shareholders' equity 362,211 335,240
$ 4,247,747 $ 4,072,144
Net interest income on tax equivalent basis* $ 33,013 $ 31,192
 
Tax equivalent adjustment 86 193
 
Net interest income $ 32,927 $ 30,999
Net interest margin * 3.22% 3.26%
 

 

* Full taxable equivalent basis, using a statutory rate of 21% for 2018 and 35% for 2017.
** Includes loans held for sale.

   
Average balance sheet and net interest income Nine months ended September 30, 2018 Nine months ended September 30, 2017
  (dollars in thousands)
Average       Average Average       Average
Assets: Balance Interest Rate Balance Interest Rate
Interest earning assets:
Loans net of unearned fees and costs ** $ 1,918,950 $ 69,451 4.83% $ 1,740,655 $ 58,266 4.46%
Leases - bank qualified* 20,192 1,017 6.72% 21,167 1,231 7.75%
Investment securities-taxable 1,391,175 31,375 3.01% 1,269,922 26,990 2.83%
Investment securities-nontaxable* 8,907 201 3.01% 14,423 351 3.24%
Interest earning deposits at Federal Reserve Bank 468,691 6,166 1.75% 532,223 3,961 0.99%
Federal funds sold and securities purchased under
agreement to resell 64,234 1,369 2.84% 60,119 931 2.06%
Net interest earning assets 3,872,149 109,579 3.77% 3,638,509 91,730 3.36%
 
Allowance for loan and lease losses (7,378) (6,793)
Assets held for sale from discontinued operations 269,857 6,888 3.40% 337,102 9,594 3.79%
Other assets 197,114 251,629
$ 4,331,742 $ 4,220,447
 
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking $ 3,463,756 $ 15,547 0.60% $ 3,433,027 $ 8,836 0.34%
Savings and money market 469,511 2,751 0.78% 434,768 1,718 0.53%
Total deposits 3,933,267 18,298 0.62% 3,867,795 10,554 0.36%
 
Short-term borrowings 17,367 261 2.00% 19,498 197 1.35%
Securities sold under agreements to repurchase 178 - 0.00% 245 - 0.00%
Subordinated debentures 13,401 524 5.21% 13,401 432 4.30%
Total deposits and liabilities 3,964,213 19,083 0.64% 3,900,939 11,183 0.38%
 
Other liabilities 9,517 431
Total liabilities 3,973,730 3,901,370
 
Shareholders' equity 358,012 319,077
$ 4,331,742 $ 4,220,447
Net interest income on tax equivalent basis* $ 97,384 $ 90,141
 
Tax equivalent adjustment 256 554
 
Net interest income $ 97,128 $ 89,587
Net interest margin * 3.15% 3.02%
                                       

* Full taxable equivalent basis, using a statutory rate of 21% for 2018 and 35% for 2017.
** Includes loans held for sale.

               
Allowance for loan and lease losses: Nine months ended Year ended
  September 30,       September 30, December 31,
  2018   2017   2017
(dollars in thousands)
 
Balance in the allowance for loan and lease losses at beginning of period (1) $ 7,096 $ 6,332 $ 6,332
 
Loans charged-off:
SBA non-real estate 1,081 344 1,171
SBA commercial mortgage 157 - -
Direct lease financing 531 779 926
Other consumer loans   19   113   110
Total   1,788   1,236   2,207
 
Recoveries:
SBA non-real estate 46 12 18
SBA commercial mortgage 13 - -
Direct lease financing 64 - 7
Other consumer loans   1   25   26
Total   124   37   51
Net charge-offs 1,664 1,199 2,156
Provision charged to operations   2,660   2,150   2,920
 
Balance in allowance for loan and lease losses at end of period $ 8,092 $ 7,283 $ 7,096
Net charge-offs/average loans 0.09% 0.07% 0.12%
Net charge-offs/average loans (annualized) 0.11% 0.09% 0.12%
Net charge-offs/average assets 0.04% 0.03% 0.05%
(1) Excludes activity from assets held for sale from discontinued operations.
 
Loan portfolio:September 30, June 30, December 31, September 30,
  2018   2018   2017   2017
(in thousands)
 
SBA non-real estate $ 74,408 $ 75,141 $ 70,379 $ 71,094
SBA commercial mortgage 166,432 156,268 142,086 132,997
SBA construction   17,978   17,781   16,740   14,205
Total SBA loans 258,818 249,190 229,205 218,296
Direct lease financing 395,976 389,387 377,660 368,662
SBLOC 778,552 795,823 730,462 720,279
Other specialty lending 40,799 48,253 30,720 36,664
Other consumer loans   12,172   13,174   14,133   20,107
1,486,317 1,495,827 1,382,180 1,364,008
Unamortized loan fees and costs   10,456   10,985   10,048   10,052
Total loans, net of deferred loan fees and costs $ 1,496,773 $ 1,506,812 $ 1,392,228 $ 1,374,060
 
Small business lending portfolio:September 30, June 30, December 31, September 30,
  2018   2018   2017   2017
(in thousands)
 
SBA loans, including deferred fees and costs 266,433 257,412 236,724 225,909
SBA loans included in HFS   193,372   182,072   165,177   160,855
Total SBA loans $ 459,805 $ 439,484 $ 401,901 $ 386,764
 
                   
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 September 30, 2018
The Bancorp, Inc. 9.64% 24.05% 24.53% 24.05%
The Bancorp Bank 9.19% 23.47% 23.94% 23.47%
"Well capitalized" institution (under FDIC regulations) 5.00% 8.00% 10.00% 6.50%
 
As of December 31, 2017
The Bancorp, Inc. 7.90% 16.73% 17.09% 16.73%
The Bancorp Bank 7.61% 16.23% 16.59% 16.23%
"Well capitalized" institution (under FDIC regulations) 5.00% 8.00% 10.00% 6.50%
 
         
Three months ended Nine months ended
September 30, September 30,
  2018         2017   2018         2017
Selected operating ratios:
Return on average assets (1) 5.72% 0.71% 2.52% 1.08%
Return on average equity (1) 67.12% 8.62% 30.46% 14.29%
Net interest margin 3.22% 3.26% 3.15% 3.02%
 
(1) Annualized
 
Book value per share table:September 30, June 30, December 31, September 30,
  2018   2018   2017   2017
Book value per share $ 6.95 $ 5.91 $ 5.81 $ 6.09
 
 
Loan quality table:September 30, June 30, December 31, September 30,
  2018   2018   2017   2017
Nonperforming loans to total loans (2) 0.35% 0.42% 0.30% 0.39%
Nonperforming assets to total assets (2) 0.13% 0.16% 0.10% 0.13%
Allowance for loan and lease losses to total loans 0.54% 0.53% 0.51% 0.53%
 
Nonaccrual loans $ 4,234 $ 4,915 $ 3,996 $ 4,953
Other real estate owned   405   405   450   -
Total nonperforming assets $ 4,639 $ 5,320 $ 4,446 $ 4,953
 
Loans 90 days past due still accruing interest $ 1,015 $ 1,459 $ 227 $ 354
 
(2) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.
 
Three months ended
September 30, June 30, December 31, September 30,
  2018   2018   2017   2017
(in thousands)
Gross dollar volume (GDV) (3):
Prepaid card GDV $ 12,525,527 $ 12,799,531 $ 10,963,456 $ 10,970,085
 

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

                               
Business line quarterly summary:
Quarter ended September 30, 2018
(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 ** 4.1% $ 779 8% -9% nm nm
SBA 5.4% 460 19% 18% na na
Leasing 6.2% 396 7% 7% 0.8 8%
Commercial real estate securitization 5.9%         115 nm nm 9.0 nm
Weighted average yield 5.0% $ 1,750
 

Deposits

Payment solutions (primarily prepaid) 0.9% $ 2,114 10% nm $ 13.2 6%
Card payment and ACH processing 0.7% 876 2% nm 2.3 46%
 

* Loan categories based on period end balance and Payment Solutions based on average quarterly balances.
** Comprised of SBLOC loans.

       
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 - 2017 (42) (42)
2018 Marks (3) (3)
Payments received   (84)
September 30, 2018 Bancorp book value** $ 64
 
Total marks $ (103)
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 Bank’s discontinued loan portfolio.
** Approximately 45% of expected principal recoveries are from loans and properties pending liquidation or other resolution as of September 30, 2018.
 
Walnut Street portfolio composition as of September 30, 2018
 
Collateral type     % of Portfolio
Commercial real estate non-owner occupied
Retail 49.3%
Office 12.8%
Other 3.8%
Construction and land 23.0%
Commercial non real estate and industrial 0.6%
First mortgage residential owner occupied 6.2%
First mortgage residential non-owner occupied 3.5%
Other       0.8%
Total 100.0%
 
 
Cumulative analysis of marks on discontinued commercial loan principal as of September 30, 2018
           
Discontinued Cumulative % to original
loan principal     marks     principal
(dollars in millions)
 
Commercial loan discontinued principal before marks $ 149 $ -
Florida mall held in discontinued other real estate owned 42 27
Previous mark charges 14 14
Commercial loan mark at September 30, 2018   -       8
Total $ 205     $ 49 24%
 
                 
Analysis of discontinued commercial loan relationships as of September 30, 2018
       
Performing Nonperforming Total Performing Nonperforming Total
loan principal     loan principal     loan principal       loan marks     loan marks     marks
(in millions)
 
7 loan relationships > $7 million $ 80 $ 23 $ 103 $ 3 $ 2 $ 5
Loan relationships < $7 million   35       3       38   2       1       3
$ 115     $ 26     $ 141 $ 5     $ 3     $ 8
 
 
Quarterly activity for discontinued commercial loan principal
 
Commercial
loan principal
(in millions)
 
Commercial loan discontinued principal, June 30, 2018 before marks $ 167
Quarterly paydowns (10)
Quarterly charge downs   (8)
Commercial loan discontinued principal, September 30, 2018 before marks $ 149
Marks, September 30, 2018   (8)
Net commercial loan exposure, September 30, 2018 $ 141
Residential mortgages   55
Net loans $ 196
Florida mall in other real estate owned 15
Other 21 properties in other real estate owned 14
Other assets related to discontinued operations   1
Total discontinued assets at September 30, 2018 $ 226
 
 
Discontinued commercial loan composition September 30, 2018
           
Collateral type Unpaid principal balance     Mark September 30, 2018     Mark as % of portfolio
(dollars in millions)
Commercial real estate - non-owner occupied:
Retail $ 7 $ 0.6 9%
Office 5 0.1 2%
Other 38 1.7 5%
Construction and land 43 0.2 -
Commercial non-real estate and industrial 11 0.7 6%
1 to 4 family construction 22 3.5 16%
First mortgage residential non-owner occupied 12 0.4 3%
Commercial real estate owner occupied:
Retail 9 0.3 -
Office - - -
Other - - -
Residential junior mortgage 1 - -
Other       1 - -
Total $ 149
Less: mark   (8)      
Net commercial loan exposure, September 30, 2018 $ 141 $ 7.5 5%
 

 

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

Source: The Bancorp, Inc.

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