WILMINGTON, Del.–(BUSINESS WIRE)–The Bancorp, Inc. (“The Bancorp” or “we”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the second quarter of 2022.
Highlights
- For the quarter ended June 30, 2022, The Bancorp earned pre-tax income of $41.1 million, compared to $37.0 million for the quarter ended June 30, 2021. The 2021 quarter included $4.3 million of Payroll Protection Program (“PPP”) related interest and fees, substantially all of which were eliminated in the current year quarter. For those respective periods, net income amounted to $30.4 million, or $0.53 diluted earnings per share, compared to net income of $29.4 million, or $0.50 diluted earnings per share.
- Return on assets and equity for the quarter ended June 30, 2022 amounted to 1.7% and 19%, respectively, compared to 1.7% and 19%, respectively, for the quarter ended June 30, 2021 (all percentages “annualized”).
- Net interest margin amounted to 3.17% for the quarter ended June 30, 2022, compared to 3.19% for the quarter ended June 30, 2021.
- Net interest income was $54.6 million for the quarter ended June 30, 2022, compared to $54.1 million for the quarter ended June 30, 2021. The 2021 quarter included $4.3 million of PPP related interest and fees, substantially all of which were eliminated in the current year quarter.
- Excluding commercial loans, at fair value, which were originally generated for sale, total loans increased to $4.75 billion at June 30, 2022, compared to $4.16 billion at March 31, 2022 and $2.92 billion at June 30, 2021. Those increases reflected growth of 13% quarter over quarter and 61% year over year. Those percentage increases exclude the impact of $55.6 million of June 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 $1.29 billion, or 5%, to $28.39 billion for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021. GDV was increased in 2021 by the impact of pandemic related government stimulus payments.
- SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and investment advisor financing loans collectively increased 35% year over year and 10% quarter over quarter to $2.43 billion at June 30, 2022.
- Small Business Loans, including those held at fair value, grew 6% year over year to $729.8 million at June 30, 2022, and 3.5% quarter over quarter. That growth is exclusive of PPP loan balances which amounted to $10.3 million and $129.4 million, respectively, at June 30, 2022 and June 30, 2021.
- Direct lease financing balances increased 15% year over year to $583.1 million at June 30, 2022, and 8% quarter over quarter.
- We resumed non-SBA commercial real estate bridge lending in the third quarter of 2021. At June 30, 2022, the balance of such real estate bridge loans was $1.11 billion compared to $803.5 million at March 31, 2022, reflecting quarter over quarter growth of 38%.
- The average interest rate on $6.38 billion of average deposits and interest-bearing liabilities during the second quarter of 2022 was 0.44%. Average deposits of $6.25 billion for second quarter 2022, reflected a decrease of 0.1% from the $6.26 billion of average deposits for the quarter ended June 30, 2021, which had increased 17% over the June 30, 2020 quarter. Deposit levels during these periods reflected variability resulting from the pandemic and related government stimulus payments.
- As of June 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 9.51%, 13.46%, 13.84% and 13.46%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp and its wholly owned subsidiary, The Bancorp Bank, each remain well capitalized under banking regulations.
- Book value per common share at June 30, 2022 was $11.55 per share compared to $10.77 per share at June 30, 2021, an increase of 7%, primarily as a result of retained earnings. Increases resulting from retained earnings and reductions in shares from related repurchases were partially offset by reductions in the market value of securities, which are recognized through equity.
- The Bancorp repurchased 577,926 shares of its common stock at an average cost of $25.95 per share during the quarter ended June 30, 2022.
“The second quarter continued to show strong growth across our platform. With the anticipated continued increase in interest rates based on fed funds futures and strong business pipelines, we expect profitability to steadily increase over the next 18 months. We are raising our guidance for 2022 from $2.15 per share to a range of $2.25 to $2.30 per share. This range excludes the impact of 2022 share repurchases but includes interest rate assumptions based on fed funds expectations.”
The Bancorp reported net income of $30.4 million, or $0.53 per diluted share, for the quarter ended June 30, 2022, compared to net income of $29.4 million, or $0.50 per diluted share, for the quarter ended June 30, 2021.
Conference Call Webcast
You may access the LIVE webcast of The Bancorp’s Quarterly Earnings Conference Call at 8:00 AM ET Friday, July 29, 2022 by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com. Or you may dial 866.374.5140, access code 81692741. You may listen to the replay of the webcast following the live call on The Bancorp’s investor relations website.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, 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. in June 2021, 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. As evidence of its company-wide commitment to excellence, The Bancorp has also been ranked in October 2020 as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer in March 2021 by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600 in May 2021. 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.
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The Bancorp, Inc. Financial highlights (unaudited) |
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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Consolidated condensed income statements |
2022 |
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2021 |
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2022 |
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2021 |
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(in thousands, except per share data) |
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Net interest income |
$ |
54,569 |
|
$ |
54,069 |
|
$ |
107,422 |
|
$ |
107,826 |
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Provision for (reversal of) credit losses |
|
(1,450) |
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(951) |
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|
3,509 |
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(129) |
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Non-interest income |
|
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|
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|
|
|
|
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ACH, card and other payment processing fees |
|
2,338 |
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1,904 |
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|
4,322 |
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|
3,700 |
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Prepaid, debit card and related fees |
|
20,038 |
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19,447 |
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|
38,690 |
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|
38,655 |
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Net realized and unrealized gains on commercial |
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loans, at fair value |
|
3,682 |
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|
2,579 |
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10,517 |
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|
4,575 |
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Leasing related income |
|
1,545 |
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|
1,767 |
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|
2,518 |
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|
2,732 |
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Other non-interest income |
|
350 |
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|
164 |
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|
470 |
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|
273 |
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Total non-interest income |
|
27,953 |
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|
25,861 |
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|
56,517 |
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|
49,935 |
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Non-interest expense |
|
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|
|
|
|
|
|
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Salaries and employee benefits |
|
25,999 |
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|
27,087 |
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|
49,847 |
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|
52,745 |
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Data processing expense |
|
1,246 |
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|
1,146 |
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|
2,435 |
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|
2,272 |
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Legal expense |
|
1,474 |
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|
2,044 |
|
|
2,268 |
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|
4,098 |
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Legal settlement |
|
1,152 |
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|
— |
|
|
1,152 |
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|
— |
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FDIC insurance |
|
673 |
|
|
2,589 |
|
|
1,647 |
|
|
4,969 |
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Software |
|
4,165 |
|
|
3,706 |
|
|
8,029 |
|
|
7,390 |
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Other non-interest expense |
|
8,136 |
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|
7,311 |
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|
15,819 |
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|
14,292 |
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Total non-interest expense |
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42,845 |
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43,883 |
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|
81,197 |
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|
85,766 |
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Income from continuing operations before income taxes |
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41,127 |
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36,998 |
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|
79,233 |
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|
72,124 |
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Income tax expense |
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10,725 |
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7,840 |
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19,865 |
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|
16,906 |
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Net income from continuing operations |
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30,402 |
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29,158 |
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59,368 |
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|
55,218 |
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Discontinued operations |
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Income from discontinued operations before income taxes |
|
— |
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|
361 |
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|
— |
|
|
237 |
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Income tax expense |
|
— |
|
|
84 |
|
|
— |
|
|
55 |
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Net income from discontinued operations, net of tax |
|
— |
|
|
277 |
|
|
— |
|
|
182 |
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Net income |
$ |
30,402 |
|
$ |
29,435 |
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$ |
59,368 |
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$ |
55,400 |
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Net income per share from continuing operations – basic |
$ |
0.54 |
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$ |
0.51 |
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$ |
1.04 |
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$ |
0.96 |
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Net income per share from discontinued operations – basic |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
0.01 |
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Net income per share – basic |
$ |
0.54 |
|
$ |
0.51 |
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$ |
1.04 |
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$ |
0.97 |
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Net income per share from continuing operations – diluted |
$ |
0.53 |
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$ |
0.49 |
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$ |
1.03 |
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$ |
0.93 |
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Net income per share from discontinued operations – diluted |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
0.01 |
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Net income per share – diluted |
$ |
0.53 |
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$ |
0.50 |
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$ |
1.03 |
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$ |
0.94 |
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Weighted average shares – basic |
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56,801,518 |
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57,230,576 |
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56,962,000 |
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57,232,557 |
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Weighted average shares – diluted |
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57,453,730 |
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59,022,925 |
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57,772,538 |
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59,086,956 |
Note: Compared to higher rates in recent periods, the effective tax rate for the three months ended June 30, 2021 approximated 21% as a result of the impact of tax deductions related to stock-based compensation, recorded as discrete items. The large deductions and tax benefits resulted from the increase in the Company’s stock price as compared to the original various grant dates.
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Condensed consolidated balance sheets |
June 30, |
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March 31, |
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December 31, |
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June 30, |
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2022 (unaudited) |
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2022 (unaudited) |
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2021 |
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2021 (unaudited) |
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(in thousands, except share data) |
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Assets: |
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Cash and cash equivalents |
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Cash and due from banks |
$ |
12,873 |
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$ |
11,399 |
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$ |
5,382 |
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$ |
5,470 |
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Interest earning deposits at Federal Reserve Bank |
|
329,992 |
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|
662,827 |
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|
596,402 |
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|
583,498 |
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Total cash and cash equivalents |
|
342,865 |
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|
674,226 |
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|
601,784 |
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588,968 |
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Investment securities, available-for-sale, at fair value |
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826,616 |
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907,338 |
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953,709 |
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1,106,075 |
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Commercial loans, at fair value |
|
995,493 |
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1,180,885 |
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1,388,416 |
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1,758,264 |
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Loans, net of deferred fees and costs |
|
4,754,697 |
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4,164,298 |
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3,747,224 |
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|
2,915,344 |
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Allowance for credit losses |
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(19,087) |
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|
(19,051) |
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|
(17,806) |
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|
(15,292) |
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Loans, net |
|
4,735,610 |
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|
4,145,247 |
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|
3,729,418 |
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|
2,900,052 |
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Federal Home Loan Bank and Atlantic Central Bankers Bank stock |
|
1,643 |
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|
1,663 |
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|
1,663 |
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|
1,667 |
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Premises and equipment, net |
|
16,693 |
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|
16,314 |
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|
16,156 |
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|
17,392 |
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Accrued interest receivable |
|
19,264 |
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|
17,284 |
|
|
17,871 |
|
|
18,668 |
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Intangible assets, net |
|
2,248 |
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|
2,348 |
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|
2,447 |
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|
2,646 |
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Other real estate owned |
|
18,873 |
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|
18,873 |
|
|
18,873 |
|
|
17,343 |
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Deferred tax asset, net |
|
23,344 |
|
|
18,521 |
|
|
12,667 |
|
|
10,923 |
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Investment in unconsolidated entity, at fair value |
|
— |
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— |
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|
— |
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|
24,988 |
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Assets held-for-sale from discontinued operations |
|
— |
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|
— |
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|
3,268 |
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|
12,105 |
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Other assets |
|
124,511 |
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|
99,961 |
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|
96,967 |
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|
91,516 |
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Total assets |
$ |
7,107,160 |
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$ |
7,082,660 |
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$ |
6,843,239 |
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$ |
6,550,607 |
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Liabilities: |
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Deposits |
|
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Demand and interest checking |
$ |
5,394,562 |
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$ |
5,506,083 |
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$ |
5,561,365 |
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$ |
5,225,024 |
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Savings and money market |
|
486,189 |
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|
722,240 |
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|
415,546 |
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|
459,688 |
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Total deposits |
|
5,880,751 |
6,228,323 |
5,976,911 |
5,684,712 |
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Securities sold under agreements to repurchase |
|
42 |
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|
42 |
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|
42 |
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|
42 |
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Short-term borrowings |
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385,000 |
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|
— |
|
|
— |
|
|
— |
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Senior debt |
|
98,866 |
|
|
98,774 |
|
|
98,682 |
|
|
98,498 |
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Subordinated debenture |
|
13,401 |
|
|
13,401 |
|
|
13,401 |
|
|
13,401 |
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Other long-term borrowings |
|
39,125 |
|
|
39,318 |
|
|
39,521 |
|
|
39,901 |
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Other liabilities |
|
33,439 |
50,507 |
62,228 |
94,944 |
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Total liabilities |
$ |
6,450,624 |
$ |
6,430,365 |
$ |
6,190,785 |
$ |
5,931,498 |
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Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock – authorized, 75,000,000 shares of $1.00 par value; 56,865,494 and 57,458,287 shares issued and outstanding at June 30, 2022 and 2021, respectively |
|
56,865 |
|
|
57,155 |
|
|
57,371 |
|
|
57,458 |
|
Additional paid-in capital |
|
323,774 |
|
|
336,604 |
|
|
349,686 |
|
|
363,241 |
|
Retained earnings |
|
298,474 |
|
|
268,072 |
|
|
239,106 |
|
|
183,853 |
|
Accumulated other comprehensive (loss) income |
|
(22,577) |
(9,536) |
6,291 |
14,557 |
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Total shareholders’ equity |
|
656,536 |
|
|
652,295 |
|
|
652,454 |
|
|
619,109 |
|
|
|
|
|
|
|
|
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Total liabilities and shareholders’ equity |
$ |
7,107,160 |
$ |
7,082,660 |
$ |
6,843,239 |
$ |
6,550,607 |
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Note: Previous balance sheets included assets held-for-sale from discontinued operations, which were reclassified to continuing operations in the first quarter of 2022. Previous balance sheets also included investment in unconsolidated entity, which reflected Bancorp’s balance of the Walnut Street investment. Walnut Street was comprised of Bancorp loans sold to that entity, which was partially financed by an independent investor. In the third quarter of 2021, The Bancorp and that investor dissolved the entity, as the remaining balance did not warrant ongoing administrative and accounting expenses.
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Average balance sheet and net interest income |
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Three months ended June 30, 2022 |
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Three months ended June 30, 2021 |
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(dollars in thousands; unaudited) |
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Average |
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Average |
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Average |
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Average |
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Assets: |
|
Balance |
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Interest |
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Rate |
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Balance |
|
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Interest |
|
Rate |
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Interest earning assets: |
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Loans, net of deferred fees and costs** |
$ |
5,467,516 |
|
$ |
55,100 |
|
|
4.03% |
|
$ |
4,572,712 |
|
$ |
49,378 |
|
4.32% |
|
Leases-bank qualified* |
|
3,665 |
|
|
63 |
|
|
6.88% |
|
|
5,783 |
|
|
96 |
|
6.64% |
|
Investment securities-taxable |
|
879,112 |
|
|
5,432 |
|
|
2.47% |
|
|
1,081,419 |
|
|
7,201 |
|
2.66% |
|
Investment securities-nontaxable* |
|
3,559 |
|
|
31 |
|
|
3.48% |
|
|
3,878 |
|
|
32 |
|
3.30% |
|
Interest earning deposits at Federal Reserve Bank |
|
545,027 |
|
|
1,004 |
|
|
0.74% |
|
|
1,120,039 |
|
|
300 |
|
0.11% |
|
Net interest earning assets |
|
6,898,879 |
|
|
61,630 |
|
|
3.57% |
|
|
6,783,831 |
|
|
57,007 |
|
3.36% |
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
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Allowance for credit losses |
|
(20,295) |
|
|
|
|
|
|
|
|
(16,406) |
|
|
|
|
|
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Assets held-for-sale from discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
98,895 |
|
|
781 |
|
3.16% |
|
Other assets |
|
243,459 |
|
|
|
|
|
|
|
|
201,539 |
|
|
|
|
|
|
|
$ |
7,122,043 |
|
|
|
|
|
|
|
$ |
7,067,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
5,697,507 |
|
$ |
4,390 |
|
|
0.31% |
|
$ |
5,736,776 |
|
$ |
1,327 |
|
0.09% |
|
Savings and money market |
|
556,847 |
|
|
1,200 |
|
|
0.86% |
|
|
526,112 |
|
|
192 |
|
0.15% |
|
Total deposits |
|
6,254,354 |
|
|
5,590 |
|
|
0.36% |
|
|
6,262,888 |
|
|
1,519 |
|
0.10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
11,593 |
|
|
32 |
|
|
1.10% |
|
|
— |
|
|
— |
|
— |
|
Repurchase agreements |
|
41 |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
|
Subordinated debentures |
|
13,401 |
|
|
139 |
4.15% |
|
|
13,401 |
|
|
112 |
3.34% |
|||
|
Senior debt |
|
98,816 |
|
|
1,280 |
5.18% |
|
|
100,239 |
|
|
1,280 |
5.11% |
|||
|
Total deposits and liabilities |
|
6,378,205 |
|
|
7,041 |
|
|
0.44% |
|
|
6,376,569 |
|
|
2,911 |
|
0.18% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
89,422 |
|
|
|
|
|
|
|
|
83,353 |
|
|
|
|
|
|
Total liabilities |
|
6,467,627 |
|
|
|
|
|
|
|
|
6,459,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
654,416 |
|
|
|
|
|
|
|
|
607,937 |
|
|
|
|
|
|
|
$ |
7,122,043 |
|
|
|
|
|
|
|
$ |
7,067,859 |
|
|
|
|
|
|
Net interest income on tax equivalent basis* |
|
|
|
$ |
54,589 |
|
|
|
|
|
$ |
54,877 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Tax equivalent adjustment |
|
|
|
20 |
|
|
|
|
|
|
27 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net interest income |
|
|
$ |
54,569 |
|
|
|
$ |
54,850 |
|||||||
|
Net interest margin * |
|
|
|
|
|
|
|
3.17% |
|
|
|
|
|
|
|
3.19% |
* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.
** Includes commercial loans, at fair value. All periods include non-accrual loans.
NOTE: In the table above, the 2021 interest on loans reflects $3.0 million of interest and fees which were earned on a short-term line of credit to another institution to initially fund Payroll Protection Program (“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 $41,000 and $1.3 million, respectively, of interest and fees on PPP loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance sheet and net interest income |
Six months ended June 30, 2022 |
|
Six months ended June 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** |
$ |
5,302,850 |
|
$ |
105,638 |
|
|
3.98% |
|
$ |
4,524,911 |
|
$ |
97,189 |
|
4.30% |
|
Leases-bank qualified* |
|
3,839 |
|
|
130 |
|
|
6.77% |
|
|
6,379 |
|
|
214 |
|
6.71% |
|
Investment securities-taxable |
|
909,017 |
|
|
10,323 |
|
|
2.27% |
|
|
1,136,631 |
|
|
16,009 |
|
2.82% |
|
Investment securities-nontaxable* |
|
3,559 |
|
|
62 |
|
|
3.48% |
|
|
3,960 |
|
|
67 |
|
3.38% |
|
Interest earning deposits at Federal Reserve Bank |
|
616,865 |
|
|
1,351 |
|
|
0.44% |
|
|
935,239 |
|
|
483 |
|
0.10% |
|
Net interest earning assets |
|
6,836,130 |
|
|
117,504 |
|
|
3.44% |
|
|
6,607,120 |
|
|
113,962 |
|
3.45% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
(19,075) |
|
|
|
|
|
|
|
|
(16,241) |
|
|
|
|
|
|
Assets held for sale from discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
103,983 |
|
|
1,634 |
|
3.14% |
|
Other assets |
|
232,402 |
|
|
|
|
|
|
|
|
203,821 |
|
|
|
|
|
|
|
$ |
7,049,457 |
|
|
|
|
|
|
|
$ |
6,898,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
5,636,415 |
|
$ |
5,796 |
|
|
0.21% |
|
$ |
5,619,608 |
|
$ |
2,944 |
|
0.10% |
|
Savings and money market |
|
544,515 |
|
|
1,400 |
|
|
0.51% |
|
|
466,978 |
|
|
341 |
|
0.15% |
|
Total deposits |
|
6,180,930 |
|
|
7,196 |
|
|
0.23% |
|
|
6,086,586 |
|
|
3,285 |
|
0.11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
6,104 |
|
|
32 |
|
|
1.05% |
|
|
6,491 |
|
|
8 |
|
0.25% |
|
Repurchase agreements |
|
41 |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
|
Subordinated debentures |
|
13,401 |
|
|
255 |
3.81% |
|
|
13,401 |
|
|
225 |
3.36% |
|||
|
Senior debt |
|
98,770 |
|
|
2,559 |
5.18% |
|
|
100,190 |
|
|
2,559 |
5.11% |
|||
|
Total deposits and liabilities |
|
6,299,246 |
|
|
10,042 |
|
|
0.32% |
|
|
6,206,709 |
|
|
6,077 |
|
0.20% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
95,716 |
|
|
|
|
|
|
|
|
91,837 |
|
|
|
|
|
|
Total liabilities |
|
6,394,962 |
|
|
|
|
|
|
|
|
6,298,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
654,495 |
|
|
|
|
|
|
|
|
600,137 |
|
|
|
|
|
|
|
$ |
7,049,457 |
|
|
|
|
|
|
|
$ |
6,898,683 |
|
|
|
|
|
|
Net interest income on tax equivalent basis* |
|
|
|
$ |
107,462 |
|
|
|
|
|
$ |
109,519 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Tax equivalent adjustment |
|
|
|
40 |
|
|
|
|
|
|
59 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net interest income |
|
|
$ |
107,422 |
|
|
|
$ |
109,460 |
|||||||
|
Net interest margin * |
|
|
|
|
|
|
|
3.14% |
|
|
|
|
|
|
|
3.26% |
* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.
** Includes commercial loans, at fair value. All periods include non-accrual loans.
NOTE: In the table above, the 2021 interest on loans reflects $4.5 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 $481,000 and $3.7 million, respectively, of interest and fees on PPP loans.
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
Six months ended |
|
Year ended |
||||
|
|
June 30, |
|
June 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 |
|
844 |
|
|
321 |
|
|
1,138 |
|
SBA commercial mortgage |
|
— |
|
|
23 |
|
|
417 |
|
Direct lease financing |
|
199 |
|
|
193 |
|
|
412 |
|
SBLOC |
|
— |
|
|
15 |
|
|
15 |
|
Consumer – home equity |
|
— |
|
|
— |
|
10 |
|
|
Consumer – other |
|
— |
|
|
— |
|
14 |
|
|
Total |
|
1,043 |
|
|
552 |
|
2,006 |
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries: |
|
|
|
|
|
|
|
|
|
SBA non-real estate |
|
33 |
|
|
15 |
|
|
51 |
|
SBA commercial mortgage |
|
— |
|
|
— |
|
|
9 |
|
Direct lease financing |
|
93 |
|
|
7 |
|
|
58 |
|
Consumer – home equity |
|
— |
|
|
— |
|
1,099 |
|
|
Total |
|
126 |
|
|
22 |
|
1,217 |
|
|
Net charge-offs |
|
917 |
|
|
530 |
|
|
789 |
|
Provision for (reversal of) credit losses, excluding unfunded commitments |
|
2,198 |
|
|
(260) |
|
2,513 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance in allowance for credit losses at end of period |
$ |
19,087 |
|
$ |
15,292 |
|
$ |
17,806 |
|
Net charge-offs/average loans |
|
0.02% |
|
|
0.02% |
|
|
0.03% |
|
Net charge-offs/average assets |
|
0.01% |
|
|
0.01% |
|
|
0.01% |
(1) Excludes activity from discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Loan portfolio |
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
|||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|||||
|
|
(in thousands) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL non-real estate |
$ |
112,854 |
|
$ |
122,387 |
|
$ |
147,722 |
|
$ |
228,958 |
|
|
SBL commercial mortgage |
|
425,219 |
|
|
385,559 |
|
|
361,171 |
|
|
343,487 |
|
|
SBL construction |
|
27,042 |
31,432 |
27,199 |
18,494 |
|||||||
|
Small business loans |
|
565,115 |
|
|
539,378 |
|
|
536,092 |
|
|
590,939 |
|
|
Direct lease financing |
|
583,086 |
|
|
538,616 |
|
|
531,012 |
|
|
506,424 |
|
|
SBLOC / IBLOC * |
|
2,274,256 |
|
|
2,067,233 |
|
|
1,929,581 |
|
|
1,729,628 |
|
|
Advisor financing ** |
|
155,235 |
|
|
146,461 |
|
|
115,770 |
|
|
72,190 |
|
|
Real estate bridge loans |
|
1,106,875 |
|
|
803,477 |
|
|
621,702 |
|
|
— |
|
|
Other loans *** |
|
63,514 |
61,096 |
5,014 |
5,840 |
|||||||
|
|
|
4,748,081 |
|
|
4,156,261 |
|
|
3,739,171 |
|
|
2,905,021 |
|
|
Unamortized loan fees and costs |
|
6,616 |
8,037 |
8,053 |
10,323 |
|||||||
|
Total loans, including unamortized fees and costs |
$ |
4,754,697 |
$ |
4,164,298 |
$ |
3,747,224 |
$ |
2,915,344 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Small business portfolio |
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
||||
|
|
|
(in thousands) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL, including unamortized fees and costs |
$ |
571,559 |
$ |
545,462 |
$ |
541,437 |
|
$ |
593,401 |
||
|
SBL, included in loans, at fair value |
|
168,579 |
183,408 |
199,585 |
|
|
225,534 |
||||
|
Total small business loans **** |
$ |
740,138 |
$ |
728,870 |
$ |
741,022 |
|
$ |
818,935 |
||
* 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 $170,000 and $322,000 at June 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.
Contacts
The Bancorp, Inc.
Andres Viroslav
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
