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Section 1: 8-K (THE BANCORP, INC. FORM 8-K)


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  1/30/2020

 

The Bancorp, Inc.

(Exact name of registrant as specified in its charter)

 

Commission File Number:  000-51018

 

Delaware   23-3016517
(State or other jurisdiction of   (IRS Employer
incorporation)   Identification No.)

 

409 Silverside Road

Wilmington, DE 19809

(Address of principal executive offices, including zip code)

 

302-385-5000

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company [ ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $1.00 per share   TBBK   Nasdaq Global Select

 

 

 

  

Item 2.02.    Results of Operations and Financial Condition

 

On January 30, 2020, The Bancorp, Inc. (the "Company") issued a press release regarding its earnings for the three and twelve months ended December 31, 2019. A copy of this press release is furnished with this report as exhibit 99.1. The information in this Current Report, including the exhibit hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

  

Item 9.01.    Financial Statements and Exhibits

 

(d) Exhibits

 

The exhibit furnished as part of this Current Report on Form 8-K is identified in the Exhibit Index immediately following the signature page of this report. Such Exhibit Index is incorporated herein by reference.

 

 

 

 

 EXHIBIT INDEX

 

Exhibit No.  

Description

 

EX-99.1   Press release

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

            The Bancorp, Inc.
                 
                 
Date: January 30, 2020       By:   /s/Paul Frenkiel                                                    
                Paul Frenkiel
                Chief Financial Officer and Secretary
                 
                 

 

  

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

The Bancorp, Inc. Reports Fourth Quarter and Full Year 2019 Financial Results

 

Wilmington, DE – January 30, 2020 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the fourth quarter and full year of 2019.

 

Highlights

 

·For the quarter ended December 31, 2019, The Bancorp earned net income of $2.9 million from continuing operations, and $0.03 diluted earnings per share from combined continuing and discontinued operations. That net income adjusted for a $7.5 million non-deductible FDIC civil money penalty, was $10.3 million, or $0.18 per diluted share. This compares to $0.11 diluted earnings per share from continuing operations for the quarter ended December 31, 2018.

 

·Net interest margin increased to 3.32% for the year ended December 31, 2019, compared to 3.19% for the year ended December 31, 2018.

 

·Net interest income increased 15% to $35.2 million for the quarter ended December 31, 2019, compared to $30.6 million for the quarter ended December 31, 2018.

 

·Average loans and leases, including loans held for sale, increased 31% to $2.5 billion for the quarter ended December 31, 2019, compared to $1.9 billion for the quarter ended December 31, 2018.

 

·Prepaid, debit card and related fees increased 30% to $17.0 million for the quarter ended December 31, 2019, compared to $13.1 million for the quarter ended December 31, 2018. Gross dollar volume (GDV), representing total spend on cards, increased 41%.

 

·Total year-end SBLOC (securities-backed lines of credit) and IBLOC (insurance backed lines of credit) loans increased 30% year over year and 11% quarter over third quarter 2019 to $1.0 billion at December 31, 2019.

 

·Small Business Loans, including those held-for-sale, increased 22% year over year to $572.6 million at December 31, 2019.

 

·The average rate on $4.3 billion of average deposits and interest-bearing liabilities in the fourth quarter of 2019 was 0.77%. Average prepaid card deposits of $2.7 billion for fourth quarter 2019, reflected an increase of 22% over the $2.2 billion for the quarter ended December 31, 2018.

 

·Consolidated leverage ratio was 9.65% at December 31, 2019. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.

 

·Book value per common share at December 31, 2019 was $8.52 per share compared to $7.22 a year earlier, an increase of 18%.

 

Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “This quarter we again experienced across the board increases in both spread and fee income driven by significantly higher loan balances and GDV growth. Performance in the 4th quarter positioned us well for continued progress in 2020.  Based on our current momentum, we reaffirm a minimum of $1.25 earnings per share and a $1.34 EPS target for 2020.”

 

The Bancorp reported net income of $1.9 million, or $0.03 income per diluted share, for the quarter ended December 31, 2019, compared to net income of $7.1 million, or $0.13 income per diluted share, for the quarter ended December 31, 2018. Results for the fourth quarter of 2019 reflect a $7.5 million non-deductible FDIC civil money penalty. 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 9.65%, 18.94%, 19.34% and 18.94%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.

 

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Conference Call Webcast

 

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, January 31, 2020 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 7997238. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, February 7, 2020 by dialing 855.859.2056, access code 7997238.

 

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 Securities Exchange Commission, 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, performance or achievements 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 earnings release, except as may be required under applicable law.

 

The Bancorp, Inc. Contact

Andres Viroslav

215-861-7990

[email protected]

 

2
 

 

Financial highlights
(unaudited)
             
   Three months ended  Year ended
   December 31,  December 31,
Condensed income statement  2019  2018  2019  2018
   (dollars in thousands except per share data)
             
Net interest income  $35,179   $30,609   $141,288   $120,849 
Provision for loan and lease losses   1,450    925    4,400    3,585 
Non-interest income                    
Service fees on deposit accounts   6    —      75    3,622 
ACH, card and other payment processing fees   1,962    2,378    9,376    8,653 
Prepaid, debit card and related fees   17,004    13,068    65,141    54,627 
Net realized and unrealized gains (losses) on commercial loans originated for sale   (247)   224    24,072    20,498 
Change in value of investment in unconsolidated entity   —      (708)   —      (3,689)
Leasing related income   932    718    3,243    3,071 
Affinity fees   —      10    —      281 
Gain on sale of IRA portfolio   —      —      —      65,000 
Other non-interest income   841    1,000    2,220    1,732 
Total non-interest income   20,498    16,690    104,127    153,795 
Non-interest expense                    
Salaries and employee benefits   24,067    20,603    94,259    79,816 
Data processing expense   1,210    1,446    4,894    6,187 
Legal expense   995    2,034    5,319    7,845 
FDIC Insurance   2,141    1,430    7,025    8,819 
Software   3,551    3,425    12,731    13,304 
Civil money penalties (recoveries)   7,500    —      8,900    (290)
Prepaid relationship exit expense   —      672    —      672 
Lease termination expense   —      —      908    395 
Other non-interest expense   8,258    8,010    34,485    34,530 
Total non-interest expense   47,722    37,620    168,521    151,278 

Income from continuing operations before income taxes

   6,505    8,754    72,494    119,781 
Income tax expense   3,641    2,691    21,226    32,241 
Net income from continuing operations   2,864    6,063    51,268    87,540 
Discontinued operations                    
Income (loss) from discontinued operations before income taxes   (1,365)   1,755    510    1,491 
Income tax expense (benefit)   (355)   699    219    354 
Net income (loss) from discontinued operations, net of tax   (1,010)   1,056    291    1,137 
Net income  $1,854   $7,119   $51,559   $88,677 
                     
Net income per share from continuing operations - basic  $0.05   $0.11   $0.90   $1.55 
Net income (loss)per share from discontinued operations - basic  $(0.02)  $0.02   $0.01   $0.02 
Net income per share - basic  $0.03   $0.13   $0.91   $1.57 
                     

Net income per share from continuing operations - diluted

  $0.05   $0.11   $0.89   $1.53 
Net income (loss) per share from discontinued operations - diluted  $(0.02)  $0.02   $0.01   $0.02 
Net income per share - diluted  $0.03   $0.13   $0.90   $1.55 
Weighted average shares - basic   56,924,543    56,446,088    56,765,635    56,343,845 
Weighted average shares - diluted   57,847,509    56,964,074    57,338,985    57,068,306 
                     
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Balance sheet  December 31,  September 30,  June 30,  December 31,
   2019  2019  2019  2018
   (dollars in thousands)
Assets:            
Cash and cash equivalents                    
Cash and due from banks  $19,928   $24,068   $27,450   $2,440 
Interest earning deposits at Federal Reserve Bank   924,544    932,440    284,823    551,862 
Total cash and cash equivalents   944,472    956,508    312,273    554,302 
                     
Investment securities, available-for-sale, at fair value   1,320,692    1,382,437    1,361,779    1,236,324 
Investment securities, held-to-maturity   84,387    84,399    84,414    84,432 
Commercial loans held for sale, at fair value   1,177,118    489,240    934,452    688,471 
Loans, net of deferred fees and costs   1,827,673    1,683,377    1,561,451    1,501,976 
Allowance for loan and lease losses   (10,238)   (10,360)   (9,989)   (8,653)
Loans, net   1,817,435    1,673,017    1,551,462    1,493,323 
Federal Home Loan Bank & Atlantic Community Bancshares stock   5,342    4,342    6,342    1,113 
Premises and equipment, net   17,538    17,857    17,380    18,895 
Accrued interest receivable   13,619    13,898    14,567    12,753 
Intangible assets, net   2,315    2,698    3,081    3,846 
Deferred tax asset, net   14,145    13,006    14,574    21,622 
Investment in unconsolidated entity   39,154    49,431    58,012    59,273 
Assets held for sale from discontinued operations   140,657    162,098    169,109    197,831 
Other assets   81,696    94,605    76,123    65,726 
Total assets  $5,658,570   $4,943,536   $4,603,568   $4,437,911 
                     
Liabilities:                    
Deposits                    
Demand and interest checking  $4,402,740   $3,844,747   $3,964,905   $3,904,638 
Savings and money market   174,290    25,950    26,841    31,076 
Time deposits   475,000    475,000    —      —   
Total deposits   5,052,030    4,345,697    3,991,746    3,935,714 
                     
Securities sold under agreements to repurchase   82    93    93    93 
Short-term borrowings   —      —      45,000    —   
Subordinated debenture   13,401    13,401    13,401    13,401 
Long-term borrowings   40,991    41,166    41,334    41,674 
Other liabilities   67,569    59,005    53,862    40,253 
Total liabilities  $5,174,073   $4,459,362   $4,145,436   $4,031,135 
                     
Shareholders' equity:                    
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,940,521 and 56,446,088 shares issued and outstanding at December 31, 2019 and 2018, respectively   56,941    56,911    56,875    56,446 
Treasury stock (100,000 shares)   (866)   (866)   (866)   (866)
Additional paid-in capital   371,633    370,113    368,771    366,181 
Accumulated earnings (deficit)   50,742    48,888    28,463    (817)
Accumulated other comprehensive income (loss)   6,047    9,128    4,889    (14,168)
Total shareholders' equity   484,497    484,174    458,132    406,776 
                     
Total liabilities and shareholders' equity  $5,658,570   $4,943,536   $4,603,568   $4,437,911 
                     
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Average balance sheet and net interest income  Three months ended December 31, 2019  Three months ended December 31, 2018
   (dollars in thousands)   
   Average     Average  Average     Average
Assets:  Balance  Interest  Rate  Balance  Interest  Rate
Interest earning assets:                              
Loans net of deferred fees and costs **  $2,514,401   $31,177    4.96%  $1,905,089   $24,782    5.20%
Leases - bank qualified*   12,633    229    7.25%   19,531    353    7.23%
Investment securities-taxable   1,441,895    9,636    2.67%   1,329,249    10,619    3.20%
Investment securities-nontaxable*   5,825    47    3.23%   7,814    60    3.07%
Interest earning deposits at Federal Reserve Bank   569,804    2,505    1.76%   436,501    2,571    2.36%
Federal funds sold and securities purchased under                              
agreement to resell   —      —      —      44,093    340    3.08%
Net interest earning assets   4,544,558    43,594    3.84%   3,742,277    38,725    4.14%
                               
Allowance for loan and lease losses   (10,162)             (7,973)          
Loans held for sale from discontinued operations   149,301    1,416    3.79%   204,354    1,921    3.76%
Other assets   254,809              178,770           
   $4,938,506             $4,117,428           
                               
Liabilities and Shareholders' Equity:                              
Deposits:                              
Demand and interest checking  $3,749,860   $5,405    0.58%  $3,602,089   $7,522    0.84%
Savings and money market   66,151    51    0.31%   44,029    127    1.15%
Time   406,730    2,217    2.18%   —      —      —   
Total deposits   4,222,741    7,673    0.73%   3,646,118    7,649    0.84%
                               
Short-term borrowings   102,832    507    1.97%   29,184    190    2.60%
Securities sold under agreements to repurchase   84    —      0.00%   156    —      0.00%
Subordinated debentures   13,401    177    5.28%   13,401    190    5.67%
Total deposits and liabilities   4,339,058    8,357    0.77%   3,688,859    8,029    0.87%
                               
Other liabilities   115,112              29,244           
Total liabilities   4,454,170              3,718,103           
                               
Shareholders' equity   484,336              399,325           
   $4,938,506             $4,117,428           
Net interest income on tax equivalent basis*       $36,653             $32,617      
                               
Tax equivalent adjustment        58              87      
                               
Net interest income       $36,595             $32,530      
Net interest margin *             3.12%             3.32%
                               
* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2019 and 2018.  
** Includes loans held for sale.  

 

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Average balance sheet and net interest income  Year ended December 31, 2019  Year ended December 31, 2018
   (dollars in thousands)
   Average     Average  Average     Average
Assets:  Balance  Interest  Rate  Balance  Interest  Rate
Interest earning assets:                              
Loans net of deferred fees and costs **  $2,402,686   $126,176    5.25%  $1,915,456   $94,232    4.92%
Leases - bank qualified*   14,968    1,177    7.86%   20,025    1,370    6.84%
Investment securities-taxable   1,406,247    42,286    3.01%   1,375,566    41,994    3.05%
Investment securities-nontaxable*   6,533    215    3.29%   8,631    262    3.04%
Interest earning deposits at Federal Reserve Bank   472,279    10,007    2.12%   460,577    8,737    1.90%
Federal funds sold and securities purchased under agreement to resell   —      —      —      59,157    1,708    2.89%
Net interest earning assets   4,302,713    179,861    4.18%   3,839,412    148,303    3.86%
                               
Allowance for loan and lease losses   (9,696)             (7,528)          
Loans held for sale from discontinued operations   169,986    6,710    3.95%   253,348    8,810    3.48%
Other assets   254,674              190,252           
   $4,717,677             $4,275,484           
                               
Liabilities and Shareholders' Equity:                              
Deposits:                              
Demand and interest checking  $3,817,176   $30,664    0.80%  $3,499,288   $23,068    0.66%
Savings and money market   37,671    181    0.48%   362,267    2,878    0.79%
Time   170,438    3,555    2.09%   —      —      —   
Total deposits   4,025,285    34,400    0.85%   3,861,555    25,946    0.67%
                               
Short-term borrowings   129,031    3,131    2.43%   20,346    451    2.22%
Securities sold under agreements to repurchase   90    —      0.00%   173    —      0.00%
Subordinated debentures   13,401    750    5.60%   13,401    714    5.33%
Total deposits and liabilities   4,167,807    38,281    0.92%   3,895,475    27,111    0.70%
                               
Other liabilities   104,233              14,546           
Total liabilities   4,272,040              3,910,021           
                               
Shareholders' equity   445,637              365,463           
   $4,717,677             $4,275,484           
Net interest income on tax equivalent basis*       $148,290             $130,002      
                               
Tax equivalent adjustment        292              343      
                               
Net interest income       $147,998             $129,659      
Net interest margin *             3.32%             3.19%
                               
* Full taxable equivalent basis, using a statutory Federal  rate of 21% for 2019 and 2018.  
** Includes loans held for sale.  
                               
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Allowance for loan and lease losses:  Year ended  Year ended
   December 31,  December 31,
   2019  2018
   (dollars in thousands)
    
Balance in the allowance for loan and lease losses at beginning of period (1)  $8,653   $7,096 
           
Loans charged-off:          
SBA non-real estate   1,362    1,348 
SBA commercial mortgage   —      157 
Direct lease financing   529    637 
Other consumer loans   1,102    21 
Total   2,993    2,163 
           
Recoveries:          
SBA non-real estate   125    57 
SBA commercial mortgage   —      13 
Direct lease financing   51    64 
Other consumer loans   2    1 
Total   178    135 
Net charge-offs   2,815    2,028 
Provision charged to operations   4,400    3,585 
           
Balance in allowance for loan and lease losses at end of period  $10,238   $8,653 
Net charge-offs/average loans   0.12%   0.10%
Net charge-offs/average assets   0.06%   0.05%
(1) Excludes activity from assets held for sale from discontinued operations.          

 

Loan portfolio:  December 31,  September 30,  June 30,  December 31,
   2019  2019  2019  2018
   (in thousands)
             
SBL non-real estate  $84,579   $84,181   $75,475   $76,340 
SBL commercial mortgage   218,110    209,008    189,427    165,406 
SBL construction   45,310    38,116    29,298    21,636 
Small business loans*   347,999    331,305    294,200    263,382 
Direct lease financing   434,460    412,755    407,907    394,770 
SBLOC / IBLOC**   1,024,420    920,463    837,672    785,303 
Other specialty lending   3,055    3,167    3,432    31,836 
Other consumer loans ***   4,554    6,388    7,898    16,302 
    1,814,488    1,674,078    1,551,109    1,491,593 
Unamortized loan fees and costs   13,185    9,299    10,342    10,383 
Total loans, net of deferred fees and costs  $1,827,673   $1,683,377   $1,561,451   $1,501,976 
                     
Small business portfolio:   December 31,    September 30,     June 30,     December 31, 
    2019    2019    2019    2018 
    (in thousands)
                     
SBL, including deferred fees and costs   355,641    337,440    301,502    270,860 
SBL, included in held-for-sale   216,930    222,007    215,064    199,977 
Total small business loans  $572,571   $559,447   $516,566   $470,837 

 

* The preceding table shows small business loans and small business loans held-for-sale, which consist of the government guaranteed portion of SBA loans, at the dates indicated (in thousands).     
** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies.
*** Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $882,000 and $7.2 million at December 31, 2019 and December 31, 2018, respectively.  Estimated overdraft charge-offs and recoveries are reflected in the allowance for loan and lease losses.
 
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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 December 31, 2019                    
The Bancorp, Inc.   9.65%   18.94%   19.34%   18.94%
The Bancorp Bank   9.46%   18.61%   19.01%   18.61%
"Well capitalized" institution (under FDIC regulations-Basel III)   5.00%   8.00%   10.00%   6.50%
                     
As of December 31, 2018                    
The Bancorp, Inc.   10.11%   20.64%   21.07%   20.64%
The Bancorp Bank   9.70%   20.18%   20.61%   20.18%
"Well capitalized" institution (under FDIC regulations)   5.00%   8.00%   10.00%   6.50%

 

   Three months ended  Year ended
   December 31,  December 31,
   2019  2018  2019  2018
Selected operating ratios:                    
Return on average assets (1)   0.15%   0.69%   1.09%   2.07%
Return on average equity (1)   1.52%   7.07%   11.57%   24.26%
Net interest margin   3.12%   3.32%   3.32%   3.19%
                     
(1) Annualized                    

 

NOTE: For continuing operations and excluding civil money penalties, return on assets for fourth quarter and full year 2019 was 0.83% and 1.28% while return on equity was 8.5% and 13.5%, respectively.

 

Book value per share table:  December 31,  September 30,  June 30,  December 31,
   2019  2019  2019  2018
Book value per share  $8.52   $8.52   $8.07   $7.22 
                     
Loan quality table:   December 31,    September 30,    June 30,    December 31, 
    2019    2019    2019    2018 
Nonperforming loans to total loans   0.50%   0.55%   0.57%   0.36%
Nonperforming assets to total assets   0.16%   0.19%   0.19%   0.12%
Allowance for loan and lease losses to total loans   0.56%   0.62%   0.64%   0.58%
                     
Nonaccrual loans  $5,796   $6,420   $6,456   $4,516 
Loans 90 days past due still accruing interest   3,264    2,788    2,373    954 
Other real estate owned   —      —      —      —   
     Total nonperforming assets  $9,060   $9,208   $8,829   $5,470 
                     
    Three months ended 
    December 31,    September 30,    June 30,    December 31, 
    2019    2019    2019    2018 
    (in thousands) 
Gross dollar volume (GDV) (2):                    
Prepaid and debit card GDV  $19,104,327   $17,264,890   $16,611,551   $13,526,647 
                     
(2) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank. 
                     
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Business line quarterly summary:   
Quarter ended December 31, 2019   
(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 **   3.7%  $1,024    30%   45%    na     na 
SBA   5.7%   572    22%   10%    na     na 
Leasing   6.5%   434    10%   21%  $0.9    nm 
Commercial real estate securitization   5.5%   960    nm    nm     nm     nm 
Weighted average yield   5.1%  $2,990                     
Deposits                              
Payment solutions (prepaid and debit card issuance) ***   0.7%  $2,696    22%   nm   $17.0    23%
Card payment and ACH processing   0.7%   735    -27%   nm    2.0    nm 
* Loan categories are based on period end balance and deposits are based on average quarterly balances.  
** Comprised of Securities Backed Lines of Credit (SBLOC), collateralized by marketable securities and Insurance Backed Lines of Credit (IBLOC), collateralized by the cash surrender value of insurance policies. 
*** 2018 had been adjusted for an atyptical $739,000 writedown to revenue on one relationship
 
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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 - 2018   (46)   (46)
2019 Marks   —        
Payments received   (108)     
December 31, 2019 Bancorp book value **  $39      
Total marks     $(104)
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 26% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of December 31, 2019.

 

Walnut Street portfolio composition as of December 31, 2019          
Collateral type   % of Portfolio      
Commercial real estate non-owner occupied          
Retail   51.3%     
Office   —        
Other   13.3%     
Construction and land   23.6%     
First mortgage residential owner occupied   8.6%     
First mortgage residential non-owner occupied   3.2%     
Total   100.0%     
           
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Cumulative analysis of marks on discontinued commercial loan principal as of December 31, 2019
          
   Discontinued  Cumulative  % to original
   loan principal  marks  principal
   (dollars in millions)
          
Commercial loan discontinued principal before marks  $75           
Florida mall held in discontinued other real estate owned   42   $(27)     
Previous mark charges   10    (10)     
Mark at December 31, 2019        (4)     
Total  $127   $(41)   32%

 

Analysis of discontinued commercial loan relationships as of December 31, 2019

 

   Performing loan  Nonperforming loan  Total loan  Performing  Nonperforming  Total
   principal  principal  principal  loan marks  loan marks  marks
   (in millions)
                   
5 loan relationships > $6 million  $46   $—     $46   $(3)  $—     $(3)
Loan relationships < $6 million   18    7    25    (1)   —      (1)
   $64   $7   $71   $(4)  $—     $(4)

 

Quarterly activity for discontinued commercial loan principal     
      
    Commercial 
    loan principal 
    (in millions) 
      
Commercial loan discontinued principal September 30, 2019 before marks  $94 
Quarterly paydowns and other reductions   (19)
Commercial loan discontinued principal December 31, 2019 before marks  $75 
Marks December 31, 2019   (4)
Net commercial loan exposure December 31, 2019  $71 
Residential mortgages   45 
Net loans  $116 
Florida Mall in other real estate owned   15 
12 Properties in other real estate owned   9 
Total discontinued assets at December 31, 2019  $140 
      
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Discontinued commercial loan composition as of December 31, 2019
          
Collateral type  Unpaid principal balance  Mark
December 31, 2019
  Mark as % of portfolio
   (dollars in millions)
Commercial real estate - non-owner occupied:               
Retail  $4   $(0.6)   15%
Office   3    —      —   
Other   24    (0.3)   1%
Construction and land   12    —      0%
Commercial non-real estate and industrial   3    —      0%
1 to 4 family construction   11    (2.5)   23%
First mortgage residential non-owner occupied   9    (0.2)   2%
Commercial real estate owner occupied:               
Retail   7    —      —   
Office   —      —      —   
Other   —      —      —   
Residential junior mortgage   1    —      —   
Other   1    —      —   
Total  $75           
Less: mark   (4)          
Net commercial loan exposure December 31, 2019  $71   $(3.6)   5%

 

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