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The Bancorp, Inc. Reports Third Quarter 2022 Financial Results and Updates Full Year 2022 and 2023 Guidance

10/27/2022

The Bancorp, Inc. ("The Bancorp" or “we”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the third quarter of 2022.

Highlights

  • The Bancorp reported net income of $30.6 million, or $0.54 per diluted share, for the quarter ended September 30, 2022, compared to net income of $28.3 million, or $0.48 per diluted share, for the quarter ended September 30, 2021. The $0.54 was impacted by a reduction of approximately $0.03 per share resulting from a non-deductible $1.75 million SEC civil money penalty. Additionally, a $3.3 million net unrealized fair value loss was reflected in “Net realized and unrealized gains on commercial loans, at fair value”, which reduced diluted net income per share by approximately $0.04. The loss resulted primarily from the only movie theater loan in the Company’s portfolios. That loan was originated in 2015 and was a legacy loan from the initial entry into the CMBS securitization business which was subsequently discontinued in 2016. After discontinuance, non-SBA loan originations were primarily comprised of apartment building loans. Of the $2.15 billion of non-SBA commercial loans, at fair value and real estate bridge loans (“REBL”) which together comprise the non-SBA CRE portfolio, $2.05 billion are comprised of apartment building loans.

  • For the quarter ended September 30, 2022, The Bancorp earned pre-tax income of $42.4 million, which reflected the aforementioned $1.75 million civil money penalty, compared to $36.5 million for the quarter ended September 30, 2021, which included $1.2 million of Payroll Protection Program (“PPP”) related interest and fees, which did not recur in the current year quarter.
  • Return on assets and equity for the quarter ended September 30, 2022 amounted to 1.7% and 18%, respectively, compared to 1.8% and 18%, respectively, for the quarter ended September 30, 2021 (all percentages “annualized”).
  • Net interest margin amounted to 3.69% for the quarter ended September 30, 2022, compared to 3.35% for the quarter ended September 30, 2021 and 3.17% for the quarter ended June 30, 2022.
  • Net interest income increased 27% to $64.7 million for the quarter ended September 30, 2022, compared to $50.9 million for the quarter ended September 30, 2021. The 2021 quarter included $1.2 million of PPP related interest and fees, which did not recur in the current year quarter.
  • Excluding commercial loans, at fair value, which were originally generated for sale, total loans increased to $5.27 billion at September 30, 2022, compared to $4.75 billion at June 30, 2022 and $3.14 billion at September 30, 2021. Those increases reflected growth of 11% quarter over quarter and 66% year over year. Those percentage increases exclude the impact of $54.2 million of September 30, 2022 balances previously included in discontinued assets which were reclassified to loans in the first quarter of 2022.
  • Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $3.73 billion, or 15%, to $28.12 billion for the quarter ended September 30, 2022 compared to the quarter ended September 30, 2021. Total prepaid, debit card, ACH and other payment fees increased 6% to $21.4 million for third quarter 2022 compared to third quarter 2021.
  • SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and investment advisor financing loans collectively increased 32% year over year and 4% quarter over quarter to $2.54 billion at September 30, 2022.
  • Small Business Loans, including those held at fair value, grew 3% year over year to $732.4 million at September 30, 2022, and 0.4% quarter over quarter. That growth is exclusive of PPP loan balances which amounted to $6.7 million and $71.3 million, respectively, at September 30, 2022 and September 30, 2021.
  • Direct lease financing balances increased 17% year over year to $599.8 million at September 30, 2022, and 3% quarter over quarter.
  • We resumed non-SBA commercial real estate bridge lending in the third quarter of 2021. At September 30, 2022, the balance of such real estate bridge loans was $1.49 billion compared to $1.11 billion at June 30, 2022, reflecting quarter over quarter growth of 34%.
  • The average interest rate on $6.46 billion of average deposits and interest-bearing liabilities during the third quarter of 2022 was 1.19%. Average deposits of $6.11 billion for third quarter 2022, reflected an increase of 10.5% from the $5.53 billion of average deposits for the quarter ended September 30, 2021.
  • As of September 30, 2022, tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 to risk-weighted assets ratios were 9.66%, 13.13%, 13.56% and 13.13%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp and its wholly owned subsidiary, The Bancorp Bank, National Association, each remain well capitalized under banking regulations.
  • Book value per common share at September 30, 2022 was $11.81 per share compared to $11.13 per share at September 30, 2021, an increase of 6%. Increases resulting from retained earnings were partially offset by reductions in the market value of securities, which are recognized through equity.
  • The Bancorp repurchased 663,934 shares of its common stock at an average cost of $22.59 per share during the quarter ended September 30, 2022.

CEO Damian Kozlowski stated “Revenue growth continues across our platform as lending volumes steadily increase and new payment partners are added to our ecosystem. The expansion of both net interest margin due to rising rates and payment fees across our verticals should support significantly increased profitability in 2023. We are issuing preliminary guidance for 2023 of $3.20 per share excluding the net impact of future share buybacks but including the expected impact of rate increases based on fed funds futures. We also reiterate $2.25 to $2.30 guidance for 2022. The $3.20 guidance for 2023 would represent approximately a 40% increase in earnings per share over 2022 and would result in an ROE percentage in the mid-20s and an ROA above 2%. We expect to increase our share repurchases to $25 million per quarter, or $100 million in 2023, from $15 million a quarter, or $60 million, in 2022.”

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 28, 2022 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or you may dial 1.866.652.5200 and ask to join The Bancorp, Inc. call. 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 4, 2022 by dialing 1.877.344.7529, access code 5997176.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association, (or “The Bancorp Bank, N. A.”) provides non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, visit https://thebancorp.com/.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp’s business which are not historical facts are "forward-looking statements." These statements may be identified by the use of forward-looking terminology, including but not limited to the words “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words , and are based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, which could cause the actual results, events or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those filings. 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 press release, except as may be required under applicable law.

The Bancorp, Inc.

Financial highlights

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

September 30,

Consolidated condensed income statements

2022

 

2021

 

2022

 

2021

 

 

(Dollars in thousands, except per share and share data)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

64,659

 

$

50,893

 

$

172,081

 

$

158,719

Provision for credit losses

 

822

 

 

1,613

 

 

4,331

 

 

1,484

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

ACH, card and other payment processing fees

 

2,230

 

 

1,905

 

 

6,552

 

 

5,605

Prepaid, debit card and related fees

 

19,175

 

 

18,223

 

 

57,865

 

 

56,878

Net realized and unrealized gains on commercial

 

 

 

 

 

 

 

 

 

 

 

loans, at fair value

 

745

 

 

4,306

 

 

11,262

 

 

8,881

Leasing related income

 

1,048

 

 

1,968

 

 

3,566

 

 

4,700

Other non-interest income

 

228

 

 

186

 

 

698

 

 

459

Total non-interest income

 

23,426

 

 

26,588

 

 

79,943

 

 

76,523

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

28,001

 

 

25,094

 

 

77,848

 

 

77,839

Data processing expense

 

1,292

 

 

1,209

 

 

3,727

 

 

3,481

Legal expense

 

907

 

 

1,251

 

 

3,175

 

 

5,349

Legal settlement

 

 

 

 

 

1,152

 

 

Civil money penalty

 

1,750

 

 

 

 

1,750

 

 

FDIC insurance

 

679

 

 

266

 

 

2,326

 

 

5,235

Software

 

4,001

 

 

4,045

 

 

12,030

 

 

11,435

Other non-interest expense

 

8,200

 

 

7,519

 

 

24,019

 

 

21,811

Total non-interest expense

 

44,830

 

 

39,384

 

 

126,027

 

 

125,150

Income from continuing operations before income taxes

 

42,433

 

 

36,484

 

 

121,666

 

 

108,608

Income tax expense

 

11,829

 

 

8,289

 

 

31,694

 

 

25,195

Net income from continuing operations

 

30,604

 

 

28,195

 

 

89,972

 

 

83,413

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations before income taxes

 

 

 

87

 

 

 

 

324

Income tax expense

 

 

 

21

 

 

 

 

76

Net income from discontinued operations, net of tax

 

 

 

66

 

 

 

 

248

Net income

$

30,604

 

$

28,261

 

$

89,972

 

$

83,661

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - basic

$

0.54

 

$

0.49

 

$

1.58

 

$

1.45

Net income per share from discontinued operations - basic

$

 

$

 

$

 

$

0.01

Net income per share - basic

$

0.54

 

$

0.49

 

$

1.58

 

$

1.46

 

 

 

 

 

 

Net income per share from continuing operations - diluted

$

0.54

 

$

0.48

 

$

1.56

 

$

1.41

Net income per share from discontinued operations - diluted

$

 

$

 

$

 

$

0.01

Net income per share - diluted

$

0.54

 

$

0.48

 

$

1.56

 

$

1.42

Weighted average shares - basic

 

56,429,425

 

 

57,198,778

 

 

56,782,524

 

 

57,221,174

Weighted average shares - diluted

 

57,008,224

 

 

58,628,306

 

 

57,510,986

 

 

58,932,146

 

Condensed consolidated balance sheets

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2022 (unaudited)

 

2022 (unaudited)

 

2021

 

 

2021 (unaudited)

 

 

(Dollars in thousands, except per share and share data)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

22,537

 

 

$

12,873

 

 

$

5,382

 

 

$

6,687

 

Interest earning deposits at Federal Reserve Bank

 

700,175

 

 

 

329,992

 

 

 

596,402

 

 

 

310,642

 

Total cash and cash equivalents

 

722,712

 

 

 

342,865

 

 

 

601,784

 

 

 

317,329

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities, available-for-sale, at fair value

 

790,594

 

 

 

826,616

 

 

 

953,709

 

 

 

1,054,223

 

Commercial loans, at fair value

 

818,040

 

 

 

995,493

 

 

 

1,388,416

 

 

 

1,615,312

 

Loans, net of deferred fees and costs

 

5,267,375

 

 

 

4,754,697

 

 

 

3,747,224

 

 

 

3,136,662

 

Allowance for credit losses

 

(19,689

)

 

 

(19,087

)

 

 

(17,806

)

 

 

(16,159

)

Loans, net

 

5,247,686

 

 

 

4,735,610

 

 

 

3,729,418

 

 

 

3,120,503

 

Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock

 

12,629

 

 

 

1,643

 

 

 

1,663

 

 

 

1,663

 

Premises and equipment, net

 

18,443

 

 

 

16,693

 

 

 

16,156

 

 

 

16,602

 

Accrued interest receivable

 

25,506

 

 

 

19,264

 

 

 

17,871

 

 

 

17,180

 

Intangible assets, net

 

2,149

 

 

 

2,248

 

 

 

2,447

 

 

 

2,547

 

Other real estate owned

 

18,873

 

 

 

18,873

 

 

 

18,873

 

 

 

19,488

 

Deferred tax asset, net

 

27,241

 

 

 

23,344

 

 

 

12,667

 

 

 

12,237

 

Assets held-for-sale from discontinued operations

 

 

 

 

 

 

 

3,268

 

 

 

5,274

 

Other assets

 

93,201

 

 

 

137,086

 

 

 

96,967

 

 

 

86,105

 

Total assets

$

7,777,074

 

 

$

7,119,735

 

 

$

6,843,239

 

 

$

6,268,463

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,934,591

 

 

$

5,394,562

 

 

$

5,561,365

 

 

$

4,734,352

 

Savings and money market

 

575,381

 

 

 

486,189

 

 

 

415,546

 

 

 

378,160

 

Time deposits, $100,000 and over

 

401,331

 

 

 

 

Total deposits

 

6,911,303

 

5,880,751

 

5,976,911

 

5,112,512

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

42

 

 

 

42

 

 

 

42

 

 

 

42

 

Short-term borrowings

 

 

 

 

385,000

 

 

 

 

 

 

300,000

 

Senior debt

 

98,958

 

 

 

98,866

 

 

 

98,682

 

 

 

98,590

 

Subordinated debenture

 

13,401

 

 

 

13,401

 

 

 

13,401

 

 

 

13,401

 

Other long-term borrowings

 

38,928

 

 

 

39,125

 

 

 

39,521

 

 

 

39,715

 

Other liabilities

 

50,704

 

46,014

 

62,228

 

66,226

 

Total liabilities

$

7,113,336

 

$

6,463,199

 

$

6,190,785

 

$

5,630,486

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,201,560 and 57,330,846 shares issued and outstanding at September 30, 2022 and 2021, respectively

 

56,202

 

 

 

56,865

 

 

 

57,371

 

 

 

57,331

 

Additional paid-in capital

 

311,569

 

 

 

323,774

 

 

 

349,686

 

 

 

357,528

 

Retained earnings

 

329,078

 

 

 

298,474

 

 

 

239,106

 

 

 

212,114

 

Accumulated other comprehensive (loss) income

 

(33,111

)

(22,577

)

6,291

 

11,004

 

Total shareholders' equity

 

663,738

 

 

 

656,536

 

 

 

652,454

 

 

 

637,977

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

7,777,074

 

$

7,119,735

 

$

6,843,239

 

$

6,268,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

 

Three months ended September 30, 2022

 

 

Three months ended September 30, 2021

 

 

(Dollars in thousands; unaudited)

 

 

Average

 

 

 

 

 

Average

 

 

Average

 

 

 

 

Average

Assets:

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs*

$

5,904,996

 

 

$

75,536

 

 

5.12

%

 

$

4,573,431

 

 

$

46,357

 

4.05

%

Leases-bank qualified**

 

3,299

 

 

 

55

 

 

6.67

%

 

 

5,031

 

 

 

87

 

6.92

%

Investment securities-taxable

 

824,178

 

 

 

6,792

 

 

3.30

%

 

 

1,012,007

 

 

 

6,882

 

2.72

%

Investment securities-nontaxable**

 

3,559

 

 

 

31

 

 

3.48

%

 

 

3,558

 

 

 

32

 

3.60

%

Interest earning deposits at Federal Reserve Bank

 

267,424

 

 

 

1,525

 

 

2.28

%

 

 

479,350

 

 

 

167

 

0.14

%

Net interest earning assets

 

7,003,456

 

 

 

83,939

 

 

4.79

%

 

 

6,073,377

 

 

 

53,525

 

3.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(19,111

)

 

 

 

 

 

 

 

 

(16,277

)

 

 

 

 

 

Assets held-for-sale from discontinued operations

 

 

 

 

 

 

 

 

 

90,598

 

 

 

754

 

3.33

%

Other assets

 

212,078

 

 

 

 

 

 

 

 

 

214,715

 

 

 

 

 

 

 

$

7,196,423

 

 

 

 

 

 

 

 

$

6,362,413

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,545,115

 

 

$

12,726

 

 

0.92

%

 

$

5,124,189

 

 

$

1,063

 

0.08

%

Savings and money market

 

479,260

 

 

 

2,792

 

 

2.33

%

 

 

404,775

 

 

 

146

 

0.14

%

Time deposits

 

87,562

 

 

 

547

2.50

%

 

 

 

 

 

 

Total deposits

 

6,111,937

 

 

 

16,065

 

 

1.05

%

 

 

5,528,964

 

 

 

1,209

 

0.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

200,423

 

 

 

1,235

 

 

2.46

%

 

 

13,097

 

 

 

7

 

0.21

%

Repurchase agreements

 

41

 

 

 

 

 

 

 

 

41

 

 

 

 

 

Long-term borrowings

 

39,035

 

 

 

506

 

 

5.19

%

 

 

 

 

 

 

 

Subordinated debentures

 

13,401

 

 

 

177

5.28

%

 

 

13,401

 

 

 

112

3.34

%

Senior debt

 

98,910

 

 

 

1,279

5.17

%

 

 

100,329

 

 

 

1,279

5.10

%

Total deposits and liabilities

 

6,463,747

 

 

 

19,262

 

 

1.19

%

 

 

5,655,832

 

 

 

2,607

 

0.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

72,539

 

 

 

 

 

 

 

 

 

78,038

 

 

 

 

 

 

Total liabilities

 

6,536,286

 

 

 

 

 

 

 

 

 

5,733,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

660,137

 

 

 

 

 

 

 

 

 

628,543

 

 

 

 

 

 

 

$

7,196,423

 

 

 

 

 

 

 

 

$

6,362,413

 

 

 

 

 

 

Net interest income on tax equivalent basis**

 

 

 

$

64,677

 

 

 

 

 

$

51,672

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

18

 

 

 

 

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

64,659

 

 

 

$

51,647

Net interest margin **

 

 

 

 

 

 

 

3.69

%

 

 

 

 

 

 

 

3.35

%

* Includes commercial loans, at fair value. All periods include non-accrual loans.
** Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.

NOTE: In the table above, interest on loans for 2022 and 2021 includes $21,000 and $1.2 million, respectively, of interest and fees on PPP loans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

Nine months ended September 30, 2022

 

Nine months ended September 30, 2021

 

 

(Dollars in thousands; unaudited)

 

Average

 

 

 

 

 

Average

 

Average

 

 

 

 

Average

Assets:

Balance

 

Interest

 

 

Rate

 

Balance

 

Interest

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs*

$

5,531,902

 

 

$

181,174

 

 

4.37

%

 

$

4,541,262

 

 

$

143,546

 

4.21

%

Leases-bank qualified**

 

3,657

 

 

 

185

 

 

6.75

%

 

 

5,925

 

 

 

301

 

6.77

%

Investment securities-taxable

 

880,426

 

 

 

17,115

 

 

2.59

%

 

 

1,094,633

 

 

 

22,891

 

2.79

%

Investment securities-nontaxable**

 

3,559

 

 

 

93

 

 

3.48

%

 

 

3,824

 

 

 

99

 

3.45

%

Interest earning deposits at Federal Reserve Bank

 

499,104

 

 

 

2,876

 

 

0.77

%

 

 

781,606

 

 

 

650

 

0.11

%

Net interest earning assets

 

6,918,648

 

 

 

201,443

 

 

3.88

%

 

 

6,427,250

 

 

 

167,487

 

3.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(19,087

)

 

 

 

 

 

 

 

 

(16,254

)

 

 

 

 

 

Assets held for sale from discontinued operations

 

 

 

 

 

 

 

 

 

99,472

 

 

 

2,388

 

3.20

%

Other assets

 

203,143

 

 

 

 

 

 

 

 

 

225,802

 

 

 

 

 

 

 

$

7,102,704

 

 

 

 

 

 

 

 

$

6,736,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,598,028

 

 

$

18,522

 

 

0.44

%

 

$

5,452,604

 

 

$

4,007

 

0.10

%

Savings and money market

 

522,525

 

 

 

4,192

 

 

1.07

%

 

 

446,016

 

 

 

487

 

0.15

%

Time deposits

 

29,508

 

 

 

547

2.47

%

 

 

 

 

 

 

Total deposits

 

6,150,061

 

 

 

23,261

 

 

0.50

%

 

 

5,898,620

 

 

 

4,494

 

0.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

71,589

 

 

 

1,267

 

 

2.36

%

 

 

8,717

 

 

 

15

 

0.23

%

Repurchase agreements

 

41

 

 

 

 

 

 

 

 

41

 

 

 

 

 

Long-term borrowings

 

39,286

 

 

 

506

 

 

1.72

%

 

 

 

 

 

 

 

Subordinated debentures

 

13,401

 

 

 

432

4.30

%

 

 

13,401

 

 

 

337

3.35

%

Senior debt

 

98,817

 

 

 

3,838

5.18

%

 

 

100,237

 

 

 

3,838

5.11

%

Total deposits and liabilities

 

6,373,195

 

 

 

29,304

 

 

0.61

%

 

 

6,021,016

 

 

 

8,684

 

0.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

71,413

 

 

 

 

 

 

 

 

 

105,683

 

 

 

 

 

 

Total liabilities

 

6,444,608

 

 

 

 

 

 

 

 

 

6,126,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

658,096

 

 

 

 

 

 

 

 

 

609,571

 

 

 

 

 

 

 

$

7,102,704

 

 

 

 

 

 

 

 

$

6,736,270

 

 

 

 

 

 

Net interest income on tax equivalent basis**

 

 

 

$

172,139

 

 

 

 

 

$

161,191

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

58

 

 

 

 

 

 

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

172,081

 

 

 

$

161,107

Net interest margin **

 

 

 

 

 

 

 

3.32

%

 

 

 

 

 

 

 

3.29

%

* Includes commercial loans, at fair value. All periods include non-accrual loans.
** Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.

NOTE: In the table above, the 2021 interest on loans reflects $4.6 million of interest and fees which were earned on a short-term line of credit to another institution to initially fund PPP loans, which did not significantly increase average loans or assets and which are not expected to recur. Interest on loans for 2022 and 2021 includes $502,000 and $4.9 million, respectively, of interest and fees on PPP loans.

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

Nine months ended

 

Year ended

 

September 30,

 

September 30,

 

December 31,

 

2022 (unaudited)

 

2021 (unaudited)

2021

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Balance in the allowance for credit losses at beginning of period (1)

$

17,806

 

$

16,082

$

16,082

 

 

 

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

 

 

 

SBA non-real estate

 

861

 

 

896

 

 

1,138

SBA commercial mortgage

 

 

 

23

 

 

417

Direct lease financing

 

312

 

 

248

 

 

412

SBLOC

 

 

 

15

 

 

15

Consumer - home equity

 

 

 

10

 

10

Consumer - other

 

 

 

 

14

Total

 

1,173

 

 

1,192

 

2,006

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

SBA non-real estate

 

57

 

 

18

 

 

51

SBA commercial mortgage

 

 

 

9

 

 

9

Direct lease financing

 

108

 

 

50

 

 

58

Consumer - home equity

 

 

 

 

1,099

Total

 

165

 

 

77

 

1,217

Net charge-offs

 

1,008

 

 

1,115

 

 

789

Provision for credit losses, excluding commitment provision

 

2,891

 

 

1,192

 

2,513

 

 

 

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

19,689

 

$

16,159

 

$

17,806

Net charge-offs/average loans

 

0.02%

 

 

0.04%

 

 

0.03%

Net charge-offs/average assets

 

0.01%

 

 

0.02%

 

 

0.01%

(1) Excludes activity from discontinued operations.

 

Loan portfolio

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2022 (unaudited)

 

2022 (unaudited)

 

2021

 

2021 (unaudited)

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

116,080

 

$

112,854

 

$

147,722

 

$

171,845

SBL commercial mortgage

 

429,865

 

 

425,219

 

 

361,171

 

 

367,272

SBL construction

 

26,841

27,042

27,199

23,117

Small business loans

 

572,786

 

 

565,115

 

 

536,092

 

 

562,234

Direct lease financing

 

599,796

 

 

583,086

 

 

531,012

 

 

514,068

SBLOC / IBLOC *

 

2,369,106

 

 

2,274,256

 

 

1,929,581

 

 

1,834,523

Advisor financing **

 

168,559

 

 

155,235

 

 

115,770

 

 

81,143

Real estate bridge loans

 

1,488,119

 

 

1,106,875

 

 

621,702

 

 

128,699

Other loans ***

 

64,980

63,514

5,014

4,917

 

 

5,263,346

 

 

4,748,081

 

 

3,739,171

 

 

3,125,584

Unamortized loan fees and costs

 

4,029

6,616

8,053

11,078

Total loans, including unamortized fees and costs

$

5,267,375

$

4,754,697

$

3,747,224

$

3,136,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small business portfolio

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

 

2022 (unaudited)

 

 

2022 (unaudited)

 

 

2021

 

 

2021 (unaudited)

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

579,156

$

571,559

$

541,437

 

$

566,472

SBL, included in loans, at fair value

 

159,914

168,579

199,585

 

 

214,301

Total small business loans ****

$

739,070

$

740,138

$

741,022

 

$

780,773

* Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of eligible life insurance policies.
** In 2020, we began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70%, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.
*** Includes demand deposit overdrafts reclassified as loan balances totaling $1.0 million and $322,000 at September 30, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.
****The small business loans held at fair value are comprised of the government guaranteed portion of certain SBA loans at the dates indicated.

Small business loans as of September 30, 2022

 

 

 

 

 

 

 

 

 

 

Loan principal

 

 

(Dollars in millions)

U.S. government guaranteed portion of SBA loans (a)

 

$

371

Paycheck Protection Program loans (PPP) (a)

 

 

7

Commercial mortgage SBA (b)

 

 

223

Construction SBA (c)

 

 

10

Non-guaranteed portion of U.S. government guaranteed loans (d)

 

 

99

Non-SBA small business loans

 

 

21

Total principal

 

$

731

Unamortized fees and costs

 

 

8

Total small business loans

 

$

739

(a) This is the portion of SBA 7a loans (7a) and PPP loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.
(b) Substantially all these loans are made under the SBA 504 Fixed Asset Financing program (504) which dictates origination date loan-to-value percentages (“LTV”), generally 50-60%, to which The Bancorp Bank N.A. adheres.
(c) Of the $10 million in Construction SBA loans, $9 million are 504 first mortgages with an origination date LTV of 50-60% and $1 million are SBA interim loans with an approved SBA post-construction full takeout/payoff.
(d) The $99 million represents the unguaranteed portion of 7a loans which are 70% or more guaranteed by the U.S. government. 7a loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the collateral must be pledged to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7a and 504 loans require the personal guaranty of all 20% or greater owners.

Small business loans by type as of September 30, 2022

(Excludes government guaranteed portion of SBA 7a loans and PPP loans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

mortgage*

 

SBL construction*

 

SBL non-real estate

 

Total

 

 

% Total

 

 

 

(Dollars in millions)

Hotels and motels

 

$

61

 

$

 

$

 

$

61

 

 

17%

Car washes

 

 

17

 

 

1

 

 

 

 

18

 

 

5%

Full-service restaurants

 

 

13

 

 

3

 

 

2

 

 

18

 

 

5%

Lessors of nonresidential buildings

 

 

16

 

 

 

 

 

 

16

 

 

5%

Child day care services

 

 

14

 

 

 

 

1

 

 

15

 

 

4%

Outpatient mental health and substance abuse centers

 

 

15

 

 

 

 

 

 

15

 

 

4%

Funeral homes and funeral services

 

 

12

 

 

 

 

 

 

12

 

 

3%

Offices of lawyers

 

 

9

 

 

 

 

 

 

9

 

 

3%

Assisted living facilities for the elderly

 

 

9

 

 

 

 

 

 

9

 

 

3%

Gasoline stations with convenience stores

 

 

8

 

 

 

 

 

 

8

 

 

2%

Fitness and recreational sports centers

 

 

6

 

 

 

 

2

 

 

8

 

 

2%

General warehousing and storage

 

 

7

 

 

 

 

 

 

7

 

 

2%

Solar electric power generation

 

 

 

 

 

 

7

 

 

7

 

 

2%

Plumbing, heating, and air-conditioning contractors

 

 

6

 

 

 

 

1

 

 

7

 

 

2%

Baked goods stores

 

 

 

 

 

 

6

 

 

6

 

 

2%

Lessors of other real estate property

 

 

6

 

 

 

 

 

 

6

 

 

2%

All other amusement and recreation industries

 

 

5

 

 

 

 

1

 

 

6

 

 

2%

Limited-service restaurants

 

 

1

 

 

2

 

 

2

 

 

5

 

 

1%

Other miscellaneous durable goods merchant wholesalers

 

 

5

 

 

 

 

 

 

5

 

 

1%

Lessors of residential buildings and dwellings

 

 

5

 

 

 

 

 

 

5

 

 

1%

Other technical and trade schools

 

 

 

 

5

 

 

 

 

5

 

 

1%

Other spectator sports

 

 

5

 

 

 

 

 

 

5

 

 

1%

Offices of dentists

 

 

3

 

 

1

 

 

 

 

4

 

 

1%

Other warehousing and storage

 

 

3

 

 

 

 

 

 

3

 

 

1%

Vocational rehabilitation services

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other**

 

 

66

 

 

1

 

 

23

 

 

90

 

 

27%

Total

 

$

295

 

$

13

 

$

45

 

$

353

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $74 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.
**Loan types less than $3 million are spread over a hundred different classifications such as Commercial Printing, Pet and Pet Supplies Stores, Securities Brokerage, etc.

State diversification as of September 30, 2022

(Excludes government guaranteed portion of SBA 7a loans and PPP loans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

mortgage*

 

SBL construction*

 

SBL non-real estate

 

Total

 

 

% Total

 

 

 

(Dollars in millions)

Florida

 

$

63

 

$

 

$

4

 

$

67

 

 

19%

California

 

 

50

 

 

3

 

 

4

 

 

57

 

 

16%

North Carolina

 

 

30

 

 

7

 

 

2

 

 

39

 

 

11%

New York

 

 

23

 

 

 

 

9

 

 

32

 

 

9%

Pennsylvania

 

 

18

 

 

 

 

2

 

 

20

 

 

6%

New Jersey

 

 

12

 

 

 

 

7

 

 

19

 

 

5%

Illinois

 

 

15

 

 

 

 

2

 

 

17

 

 

5%

Texas

 

 

12

 

 

 

 

3

 

 

15

 

 

4%

Colorado

 

 

11

 

 

2

 

 

1

 

 

14

 

 

4%

Connecticut

 

 

10

 

 

 

 

1

 

 

11

 

 

3%

Virginia

 

 

9

 

 

 

 

1

 

 

10

 

 

3%

Georgia

 

 

7

 

 

 

 

2

 

 

9

 

 

3%

Tennessee

 

 

8

 

 

 

 

 

 

8

 

 

2%

Ohio

 

 

6

 

 

 

 

1

 

 

7

 

 

2%

Michigan

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other States

 

 

18

 

 

1

 

 

6

 

 

25

 

 

7%

Total

 

$

295

 

$

13

 

$

45

 

$

353

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Of the SBL commercial mortgage and SBL construction loans, $74 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.

Top 10 loans as of September 30, 2022

 

 

 

 

 

 

 

 

Type*

 

State

 

SBL commercial mortgage*

 

 

 

 

(Dollars in millions)

Mental health and substance abuse center

 

 

FL

 

$

10

 

Hotel

 

 

FL

 

 

9

 

Lawyer's office

 

 

CA

 

 

8

 

General warehousing and storage

 

 

PA

 

 

7

 

Hotel

 

 

NY

 

 

6

 

Hotel

 

 

NC

 

 

6

 

Mental health and substance abuse center

 

 

CT

 

 

5

 

Assisted living facility

 

 

FL

 

 

5

 

Lessors of nonresidential buildings

 

 

NC

 

 

5

 

Lessors of residential buildings and dwellings

 

 

NJ

 

 

5

 

Total

 

 

 

 

$

66

 

 

 

 

 

 

 

 

 

* All of the top 10 loans are 504 SBA loans with 50%-60% origination date loan-to-value and are in the commercial mortgage category. The top 10 loan table above does not include loans to the extent that they are U.S. government guaranteed.

Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:

Type as of September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

# Loans

 

Balance

 

Weighted average

origination date

LTV

 

Weighted average

interest rate

 

 

 

(Dollars in millions)

Real estate bridge loans (multi-family apartment loans recorded at amortized cost)*

 

 

115

 

$

1,488

 

 

73

%

 

6.18

%

 

 

 

 

 

 

 

 

 

 

 

Non-SBA commercial real estate loans, at fair value:

 

 

 

 

 

 

 

 

 

 

Multi-family (apartment bridge loans)*

 

 

35

 

$

564

 

 

76

%

 

5.82

%

Hospitality (hotels and lodging)

 

 

5

 

 

38

 

 

65

%

 

6.56

%

Retail

 

 

4

 

 

52

 

 

71

%

 

5.56

%

Other

 

 

5

 

 

14

 

 

73

%

 

5.07

%

 

 

 

49

 

 

668

 

 

75

%

 

5.83

%

Fair value adjustment

 

 

 

 

 

(10

)

 

 

 

 

Total non-SBA commercial real estate loans, at fair value

 

 

 

 

 

658

 

 

 

 

 

Total commercial real estate loans

 

 

 

 

$

2,146

 

 

74

%

 

6.10

%

*In the third quarter of 2021, we resumed the origination of multi-family apartment loans. These are similar to the multi-family apartment loans carried at fair value, but at origination are intended to be held on the balance sheet, so are not accounted for at fair value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State diversification as of September 30, 2022

 

 

15 largest loans as of September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

Balance

 

 

Origination

date LTV

 

 

State

 

 

Balance

 

Origination

date LTV

(Dollars in millions)

 

 

(Dollars in millions)

Texas

 

$

815

 

 

74%

 

 

Texas

 

 

$

41

 

75%

Georgia

 

 

220

 

 

72%

 

 

Texas

 

 

 

39

 

79%

Florida

 

 

187

 

 

72%

 

 

Texas

 

 

 

39

 

72%

Ohio

 

 

100

 

 

71%

 

 

Tennessee

 

 

 

37

 

72%

Tennessee

 

 

92

 

 

70%

 

 

Texas

 

 

 

37

 

75%

Alabama

 

 

73

 

 

74%

 

 

Texas

 

 

 

37

 

80%

Michigan

 

 

73

 

 

74%

 

 

Michigan

 

 

 

36

 

71%

Other States each <$50 million

 

 

586

 

 

74%

 

 

Florida

 

 

 

33

 

72%

Total

 

$

2,146

 

 

74%

 

 

Texas

 

 

 

31

 

67%

 

 

 

 

 

 

 

 

 

Michigan

 

 

 

31

 

79%

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

30

 

62%

 

 

 

 

 

 

 

 

 

Missouri

 

 

 

30

 

72%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

30

 

62%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

29

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

27

 

77%

 

 

 

 

 

 

 

 

 

15 Largest loans

 

 

$

507

 

73%

Institutional banking loans outstanding at September 30, 2022

 

 

 

 

 

Type

Principal

 

% of total

 

 

(Dollars in millions)

 

 

Securities backed lines of credit (SBLOC)

$

1,265

 

50%

Insurance backed lines of credit (IBLOC)

 

1,104

 

43%

Advisor financing

 

169

 

7%

Total

$

2,538

 

100%

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While equities have fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOCs generally has been less, for two reasons. First, many collateral accounts are “balanced” and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Secondly, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.

Top 10 SBLOC loans at September 30, 2022

 

 

 

 

 

 

Principal amount

 

% Principal to

collateral

 

(Dollars in millions)

 

$

20

 

58%

 

 

18

 

42%

 

 

17

 

72%

 

 

14

 

38%

 

 

10

 

33%

 

 

9

 

66%

 

 

9

 

48%

 

 

9

 

71%

 

 

8

 

75%

 

 

6

 

32%

Total and weighted average

$

120

 

54%

Insurance backed lines of credit (IBLOC)

IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, eight insurance companies have been approved and, as of August 2, 2022, all were rated A- or better by AM BEST.

Direct lease financing* by type as of September 30, 2022

 

 

 

 

 

 

 

Principal balance

 

% Total

 

 

(Dollars in millions)

 

 

Construction

$

110

 

18%

Government agencies and public institutions**

 

90

 

15%

Waste management and remediation services

 

68

 

11%

Real estate and rental and leasing

 

60

 

10%

Retail trade

 

48

 

8%

Health care and social assistance

 

32

 

5%

Transportation and warehousing

 

31

 

5%

Finance and insurance

 

27

 

5%

Professional, scientific, and technical services

 

20

 

3%

Manufacturing

 

17

 

3%

Wholesale trade

 

16

 

3%

Educational services

 

8

 

1%

Mining, Quarrying, and Oil and Gas Extractions for Oil and Gas Operations

 

4

 

1%

Other

 

69

 

12%

Total

$

600

 

100%

* Of the total $600 million of direct lease financing, $520 million consisted of vehicle leases with the remaining balance consisting of equipment leases.
** Includes public universities and school districts.

Direct lease financing by state as of September 30, 2022

 

 

 

 

 

State

 

Principal balance

 

% Total

 

 

(Dollars in millions)

 

 

Florida

$

97

 

16%

Utah

 

56

 

9%

California

 

52

 

9%

New Jersey

 

42

 

7%

Pennsylvania

 

39

 

7%

New York

 

30

 

5%

North Carolina

 

27

 

5%

Maryland

 

26

 

4%

Texas

 

26

 

4%

Connecticut

 

20

 

3%

Washington

 

16

 

3%

Georgia

 

15

 

3%

Idaho

 

14

 

2%

Illinois

 

11

 

2%

Alabama

 

10

 

2%

Other states and non-classified

 

119

 

19%

Total

$

600

 

100%

 

 

 

 

 

 

 

 

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, 2022

 

 

 

 

 

 

 

The Bancorp, Inc.

9.66%

 

13.13%

 

13.56%

 

13.13%

The Bancorp Bank, National Association

10.79%

 

14.73%

 

15.15%

 

14.73%

"Well capitalized" institution (under federal regulations-Basel III)

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

 

 

The Bancorp, Inc.

10.40%

 

14.72%

 

15.13%

 

14.72%

The Bancorp Bank, National Association

10.98%

 

15.48%

 

15.88%

 

15.48%

"Well capitalized" institution (under federal regulations-Basel III)

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

September 30,

 

September 30,

 

2022

 

2021

 

2022

 

2021

Selected operating ratios

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.69%

 

 

1.76%

 

 

1.69%

 

 

1.66%

Return on average equity (1)

 

18.39%

 

 

17.84%

 

 

18.28%

 

 

18.35%

Net interest margin

 

3.69%

 

 

3.35%

 

 

3.32%

 

 

3.29%

(1) Annualized

 

Book value per share table

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2022

 

2022

 

2021

 

2021

Book value per share

$

11.81

 

$

11.55

 

$

11.37

 

$

11.13

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality table

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

(Dollars in thousands)

Nonperforming loans to total loans

 

0.16%

 

 

0.18%

 

 

0.10%

 

 

0.24%

Nonperforming assets to total assets

 

0.35%

 

 

0.39%

 

 

0.33%

 

 

0.43%

Allowance for credit losses to total loans

 

0.37%

 

 

0.40%

 

 

0.48%

 

 

0.52%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

3,860

 

$

3,698

 

$

3,161

 

$

6,106

Loans 90 days past due still accruing interest

 

4,415

 

 

4,848

 

 

461

 

 

1,569

Other real estate owned

 

18,873

 

18,873

 

18,873

 

19,488

Total nonperforming assets

$

27,148

 

$

27,419

 

$

22,495

 

$

27,163

 

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (GDV) (1)

Three months ended

 

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2022

 

2022

 

2021

 

2021

 

 

(Dollars in thousands)

 

 

 

 

 

Prepaid and debit card GDV

$

28,119,428

 

$

28,394,897

 

$

24,821,576

 

$

24,392,188

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

 

Business line quarterly summary

Quarter ended September 30, 2022

(Dollars in millions)

 

Balances

% Growth

Major business lines

Average

approximate

rates *

Balances **

Year over

year

 

Linked

quarter

annualized

Loans

Institutional banking ***

4.2%

$ 2,538

32%

18%

Small business lending****

5.6%

739

3%

1%

Leasing

6.1%

600

17%

11%

Commercial real estate (non-SBA loans, at fair value)

5.4%

658

nm

nm

Real estate bridge loans (recorded at book value)

 

6.0%

 

1,488

 

nm

 

nm

 

 

 

 

 

Weighted average yield

5.1%

$ 6,023

Non-interest income

% Growth

Deposits: Fintech solutions group

Current

quarter

Year over

year

Prepaid and debit card issuance, and other payments

1.1%

$ 5,397

5%

nm

$ 21.4

6%

* Average rates are for the quarter ended September 30, 2022.
** Loan and deposit categories are respectively based on period-end and average quarterly balances.
*** Institutional Banking loans are comprised of security backed lines of credit (SBLOC), collateralized by marketable securities, insurance backed lines of credit (IBLOC), collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.
**** Small Business Lending is substantially comprised of SBA loans. Loan growth percentages exclude short-term PPP loans.

The Bancorp, Inc.
Andres Viroslav
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com

Source: The Bancorp, Inc.

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