Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

tbbk-20200930x10q
false--12-31Q3202000012954010001295401us-gaap:SubsequentEventMember2020-11-050001295401us-gaap:CommonStockMember2020-04-012020-06-300001295401us-gaap:CommonStockMember2020-07-012020-09-300001295401us-gaap:CommonStockMember2020-01-012020-03-310001295401us-gaap:CommonStockMember2019-07-012019-09-300001295401us-gaap:CommonStockMember2019-04-012019-06-300001295401us-gaap:CommonStockMember2019-01-012019-03-310001295401us-gaap:TreasuryStockMember2020-09-300001295401us-gaap:RetainedEarningsMember2020-09-300001295401us-gaap:AdditionalPaidInCapitalMember2020-09-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001295401us-gaap:TreasuryStockMember2020-06-300001295401us-gaap:RetainedEarningsMember2020-06-300001295401us-gaap:AdditionalPaidInCapitalMember2020-06-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000012954012020-06-300001295401us-gaap:TreasuryStockMember2020-03-310001295401us-gaap:RetainedEarningsMember2020-03-310001295401us-gaap:AdditionalPaidInCapitalMember2020-03-310001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100012954012020-03-310001295401tbbk:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310001295401us-gaap:TreasuryStockMember2019-12-310001295401us-gaap:RetainedEarningsMember2019-12-310001295401us-gaap:AdditionalPaidInCapitalMember2019-12-310001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001295401tbbk:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001295401us-gaap:TreasuryStockMember2019-09-300001295401us-gaap:RetainedEarningsMember2019-09-300001295401us-gaap:AdditionalPaidInCapitalMember2019-09-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001295401us-gaap:TreasuryStockMember2019-06-300001295401us-gaap:RetainedEarningsMember2019-06-300001295401us-gaap:AdditionalPaidInCapitalMember2019-06-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000012954012019-06-300001295401us-gaap:TreasuryStockMember2019-03-310001295401us-gaap:RetainedEarningsMember2019-03-310001295401us-gaap:AdditionalPaidInCapitalMember2019-03-310001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001295401us-gaap:TreasuryStockMember2018-12-310001295401us-gaap:RetainedEarningsMember2018-12-310001295401us-gaap:AdditionalPaidInCapitalMember2018-12-310001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001295401tbbk:ExercisePriceRangeTwoMember2020-09-300001295401tbbk:ExercisePriceRangeOneMember2020-09-300001295401tbbk:ExercisePriceRangeTwoMember2019-09-300001295401tbbk:ExercisePriceRangeOneMember2019-09-300001295401tbbk:ExercisePriceRangeOneMember2020-07-012020-09-300001295401tbbk:ExercisePriceRangeTwoMember2020-01-012020-09-300001295401tbbk:ExercisePriceRangeOneMember2019-07-012019-09-300001295401tbbk:ExercisePriceRangeTwoMember2019-01-012019-09-300001295401us-gaap:EmployeeStockOptionMember2019-01-012019-12-310001295401us-gaap:EmployeeStockOptionMember2019-12-310001295401us-gaap:EmployeeStockOptionMember2020-09-300001295401srt:MinimumMember2019-01-012019-09-300001295401srt:MaximumMember2019-01-012019-09-300001295401tbbk:RestrictedStockUnitsAndStockOptionsMember2020-01-012020-09-300001295401tbbk:RestrictedStockUnitsAndStockOptionsMember2019-01-012019-09-300001295401us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-12-310001295401us-gaap:RestrictedStockUnitsRSUMember2020-09-300001295401us-gaap:RestrictedStockUnitsRSUMember2019-12-310001295401us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-09-300001295401us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-01-012020-09-300001295401us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2020-01-012020-09-300001295401us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2019-01-012019-09-300001295401us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2019-01-012019-09-300001295401tbbk:JVBFinancialGroupLlcMember2020-09-300001295401tbbk:JVBFinancialGroupLlcMember2019-12-310001295401us-gaap:FairValueInputsLevel1Member2020-09-300001295401us-gaap:FairValueInputsLevel1Member2019-12-310001295401us-gaap:DepositAccountMember2020-07-012020-09-300001295401us-gaap:CreditCardMerchantDiscountMember2020-07-012020-09-300001295401tbbk:PrepaidCardFeesMember2020-07-012020-09-300001295401us-gaap:DepositAccountMember2020-01-012020-09-300001295401us-gaap:CreditCardMerchantDiscountMember2020-01-012020-09-300001295401tbbk:PrepaidCardFeesMember2020-01-012020-09-300001295401us-gaap:DepositAccountMember2019-07-012019-09-300001295401us-gaap:CreditCardMerchantDiscountMember2019-07-012019-09-300001295401tbbk:PrepaidCardFeesMember2019-07-012019-09-300001295401us-gaap:DepositAccountMember2019-01-012019-09-300001295401us-gaap:CreditCardMerchantDiscountMember2019-01-012019-09-300001295401tbbk:PrepaidCardFeesMember2019-01-012019-09-300001295401tbbk:JVBFinancialGroupLlcMember2020-01-012020-09-300001295401tbbk:JVBFinancialGroupLlcMember2019-01-012019-09-300001295401us-gaap:UnallocatedFinancingReceivablesMember2019-01-012019-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2019-01-012019-12-310001295401tbbk:OtherSpecialtyLendingMember2019-01-012019-12-310001295401us-gaap:UnallocatedFinancingReceivablesMember2019-01-012019-09-300001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2019-01-012019-09-300001295401tbbk:SbaConstructionMember2019-01-012019-09-300001295401tbbk:SbaCommercialMortgageMember2019-01-012019-09-300001295401tbbk:OtherSpecialtyLendingMember2019-01-012019-09-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001295401us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-3100012954012019-01-0100012954012019-03-310001295401tbbk:WalnutStreetMember2014-12-300001295401us-gaap:RetainedEarningsMember2020-07-012020-09-300001295401us-gaap:RetainedEarningsMember2020-04-012020-06-300001295401us-gaap:RetainedEarningsMember2020-01-012020-03-310001295401us-gaap:RetainedEarningsMember2019-07-012019-09-300001295401us-gaap:RetainedEarningsMember2019-04-012019-06-300001295401us-gaap:RetainedEarningsMember2019-01-012019-03-310001295401tbbk:CascadeFundingLpSeries6V.BancorpBankMember2020-04-292020-04-290001295401srt:WeightedAverageMembertbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:MeasurementInputOfferedPriceMember2020-09-300001295401srt:WeightedAverageMembertbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:WeightedAverageMembertbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MinimumMembertbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:MeasurementInputOfferedPriceMember2020-09-300001295401srt:MinimumMembertbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MinimumMembertbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MaximumMembertbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:MeasurementInputOfferedPriceMember2020-09-300001295401srt:MaximumMembertbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MaximumMembertbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MinimumMembertbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:MeasurementInputOfferedPriceMember2019-12-310001295401srt:MinimumMembertbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401srt:MinimumMembertbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401srt:MaximumMembertbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:MeasurementInputOfferedPriceMember2019-12-310001295401srt:MaximumMembertbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401srt:MaximumMembertbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401tbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:FairValueInputsLevel3Member2020-09-300001295401tbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:FairValueInputsLevel3Member2020-09-300001295401tbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:FairValueInputsLevel3Member2020-09-300001295401tbbk:CommercialLoanHeldForSaleSbaMemberus-gaap:FairValueInputsLevel3Member2019-12-310001295401tbbk:CommercialLoanHeldForSaleFloatingMemberus-gaap:FairValueInputsLevel3Member2019-12-310001295401tbbk:CommercialLoanHeldForSaleFixedMemberus-gaap:FairValueInputsLevel3Member2019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:SubstandardMember2019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:PassMember2019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMembertbbk:UnratedNotSubjectToReviewMember2019-12-310001295401us-gaap:ConsumerLoanMemberus-gaap:SubstandardMember2019-12-310001295401us-gaap:ConsumerLoanMemberus-gaap:PassMember2019-12-310001295401us-gaap:ConsumerLoanMembertbbk:UnratedNotSubjectToReviewMember2019-12-310001295401tbbk:UnamortizedLoanFeesAndCostsMembertbbk:UnratedNotSubjectToReviewMember2019-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMemberus-gaap:PassMember2019-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMembertbbk:UnratedNotSubjectToReviewMember2019-12-310001295401tbbk:SbaNonRealEstateMemberus-gaap:SubstandardMember2019-12-310001295401tbbk:SbaNonRealEstateMemberus-gaap:SpecialMentionMember2019-12-310001295401tbbk:SbaNonRealEstateMemberus-gaap:PassMember2019-12-310001295401tbbk:SbaNonRealEstateMembertbbk:UnratedNotSubjectToReviewMember2019-12-310001295401tbbk:SbaConstructionMemberus-gaap:SubstandardMember2019-12-310001295401tbbk:SbaConstructionMemberus-gaap:PassMember2019-12-310001295401tbbk:SbaCommercialMortgageMemberus-gaap:SubstandardMember2019-12-310001295401tbbk:SbaCommercialMortgageMemberus-gaap:SpecialMentionMember2019-12-310001295401tbbk:SbaCommercialMortgageMemberus-gaap:PassMember2019-12-310001295401tbbk:SbaCommercialMortgageMembertbbk:UnratedNotSubjectToReviewMember2019-12-310001295401tbbk:OtherSpecialtyLendingMemberus-gaap:PassMember2019-12-310001295401us-gaap:SubstandardMember2019-12-310001295401us-gaap:SpecialMentionMember2019-12-310001295401us-gaap:PassMember2019-12-310001295401tbbk:UnratedNotSubjectToReviewMember2019-12-310001295401us-gaap:AutomobileLoanMemberus-gaap:SubsequentEventMember2020-10-290001295401us-gaap:NonperformingFinancingReceivableMember2020-09-300001295401us-gaap:AutomobileLoanMember2020-09-300001295401tbbk:TotalSbaLoansMember2020-09-300001295401tbbk:SmallBusinessLoansNonSbaLoansMember2020-09-300001295401tbbk:SblShortTermPaycheckProtectionLoansMember2020-09-300001295401tbbk:GovernmentGuaranteedLoansMember2020-09-300001295401tbbk:CommercialMortgageSecuritizationMember2020-09-300001295401us-gaap:AutomobileLoanMember2020-03-310001295401us-gaap:NonperformingFinancingReceivableMember2019-12-310001295401tbbk:TotalSbaLoansMember2019-12-310001295401tbbk:SmallBusinessLoansNonSbaLoansMember2019-12-310001295401tbbk:InsuranceBackedLinesOfCreditIblocMember2019-12-310001295401tbbk:DuaneMorrisLlpMember2020-01-012020-09-300001295401tbbk:DuaneMorrisLlpMember2019-01-012019-09-300001295401tbbk:McmahonLeasingMemberus-gaap:TradeNamesMember2020-09-300001295401us-gaap:CustomerListsMember2016-05-310001295401us-gaap:SegmentDiscontinuedOperationsMember2020-07-012020-09-300001295401us-gaap:SegmentDiscontinuedOperationsMember2019-07-012019-09-300001295401tbbk:SpecialtyFinanceMember2020-07-012020-09-300001295401tbbk:SpecialtyFinanceMember2020-01-012020-09-300001295401tbbk:SpecialtyFinanceMember2019-07-012019-09-300001295401tbbk:SpecialtyFinanceMember2019-01-012019-09-300001295401us-gaap:HomeEquityMember2020-01-012020-09-300001295401us-gaap:HomeEquityMember2019-01-012019-12-310001295401tbbk:SbaConstructionMember2019-01-012019-12-310001295401tbbk:SbaCommercialMortgageMember2019-01-012019-12-310001295401tbbk:OtherDebtSecuritiesSingleIssuersMember2019-12-310001295401tbbk:OtherDebtSecuritiesPooledMember2019-12-310001295401tbbk:OtherDebtSecuritiesSingleIssuersMember2020-09-300001295401tbbk:McmahonLeasingMemberus-gaap:CustomerListsMember2020-01-012020-01-310001295401tbbk:McmahonLeasingMemberus-gaap:OtherIntangibleAssetsMember2020-01-012020-01-310001295401tbbk:McmahonLeasingMemberus-gaap:LeaseAgreementsMember2020-01-012020-01-310001295401tbbk:McmahonLeasingMemberus-gaap:CustomerListsMember2020-09-300001295401us-gaap:CustomerListsMember2020-09-300001295401us-gaap:ComputerSoftwareIntangibleAssetMember2020-09-300001295401us-gaap:CustomerListsMember2019-12-310001295401us-gaap:ComputerSoftwareIntangibleAssetMember2019-12-310001295401tbbk:SblocMemberus-gaap:PassMember2020-09-300001295401tbbk:SblocMembertbbk:NonRatedMember2020-09-300001295401tbbk:InsuranceBackedLinesOfCreditIblocMemberus-gaap:PassMember2020-09-300001295401tbbk:InsuranceBackedLinesOfCreditIblocMembertbbk:NonRatedMember2020-09-300001295401tbbk:SblocMember2020-09-300001295401tbbk:InsuranceBackedLinesOfCreditIblocMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001295401tbbk:SbaNonRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001295401tbbk:SbaNonRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001295401tbbk:SbaCommercialMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001295401tbbk:SbaCommercialMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001295401us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001295401us-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001295401us-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001295401tbbk:SbaNonRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001295401tbbk:SbaNonRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001295401tbbk:SbaCommercialMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001295401us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001295401us-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001295401us-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMembertbbk:NonAccrualLoansMember2020-09-300001295401us-gaap:ConsumerLoanMembertbbk:NonAccrualLoansMember2020-09-300001295401tbbk:SbaNonRealEstateMembertbbk:NonAccrualLoansMember2020-09-300001295401tbbk:SbaConstructionMembertbbk:NonAccrualLoansMember2020-09-300001295401tbbk:SbaCommercialMortgageMembertbbk:NonAccrualLoansMember2020-09-300001295401tbbk:NonAccrualLoansMember2020-09-300001295401us-gaap:ConsumerLoanMembertbbk:NonAccrualLoansMember2019-12-310001295401tbbk:SbaNonRealEstateMembertbbk:NonAccrualLoansMember2019-12-310001295401tbbk:SbaConstructionMembertbbk:NonAccrualLoansMember2019-12-310001295401tbbk:SbaCommercialMortgageMembertbbk:NonAccrualLoansMember2019-12-310001295401tbbk:NonAccrualLoansMember2019-12-310001295401us-gaap:HomeEquityMember2020-09-300001295401tbbk:UnamortizedLoanFeesAndCostsMember2020-09-300001295401us-gaap:ConsumerPortfolioSegmentMember2019-12-310001295401tbbk:UnamortizedLoanFeesAndCostsMember2019-12-310001295401tbbk:SbaNonRealEstateMembertbbk:NonRatedMember2020-09-300001295401tbbk:SbaConstructionMemberus-gaap:PassMember2020-09-300001295401tbbk:SbaConstructionMembertbbk:NonRatedMember2020-09-300001295401tbbk:SbaCommercialMortgageMembertbbk:NonRatedMember2020-09-300001295401tbbk:OtherSpecialtyLendingMembertbbk:NonRatedMember2020-09-300001295401tbbk:AdvisorFinancingMemberus-gaap:PassMember2020-09-300001295401tbbk:AdvisorFinancingMembertbbk:NonRatedMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001295401tbbk:SbaConstructionMemberus-gaap:SubstandardMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:SubstandardMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMemberus-gaap:PassMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMembertbbk:NonRatedMember2020-09-300001295401tbbk:SbaNonRealEstateMemberus-gaap:SubstandardMember2020-09-300001295401tbbk:SbaNonRealEstateMemberus-gaap:SpecialMentionMember2020-09-300001295401tbbk:SbaNonRealEstateMemberus-gaap:PassMember2020-09-300001295401tbbk:SbaCommercialMortgageMemberus-gaap:SubstandardMember2020-09-300001295401tbbk:SbaCommercialMortgageMemberus-gaap:SpecialMentionMember2020-09-300001295401tbbk:SbaCommercialMortgageMemberus-gaap:PassMember2020-09-300001295401tbbk:OtherSpecialtyLendingMemberus-gaap:PassMember2020-09-300001295401tbbk:ConsumerFinancingReceivableMemberus-gaap:SubstandardMember2020-09-300001295401tbbk:ConsumerFinancingReceivableMemberus-gaap:PassMember2020-09-300001295401tbbk:ConsumerFinancingReceivableMembertbbk:NonRatedMember2020-09-300001295401us-gaap:ConsumerPortfolioSegmentMember2020-09-300001295401us-gaap:ConsumerLoanMember2020-01-012020-09-300001295401us-gaap:ConsumerLoanMember2019-01-012019-12-310001295401us-gaap:UnallocatedFinancingReceivablesMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMember2019-01-012019-12-310001295401tbbk:SbaNonRealEstateMember2019-01-012019-12-310001295401tbbk:ConsumerFinancingReceivableMember2019-01-012019-12-3100012954012019-01-012019-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMember2019-01-012019-09-300001295401tbbk:SbaNonRealEstateMember2019-01-012019-09-300001295401tbbk:ConsumerFinancingReceivableMember2019-01-012019-09-300001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2020-09-300001295401tbbk:SbaLoansPurchasedForCraPurposesMember2020-09-300001295401tbbk:OtherSpecialtyLendingMember2020-09-300001295401tbbk:ConsumerFinancingReceivableMember2020-09-300001295401tbbk:AdvisorFinancingMember2020-09-300001295401tbbk:IncurredLossMethodMemberus-gaap:UnallocatedFinancingReceivablesMember2019-12-310001295401us-gaap:UnallocatedFinancingReceivablesMember2019-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2019-12-310001295401tbbk:OtherSpecialtyLendingMember2019-12-310001295401tbbk:ConsumerFinancingReceivableMember2019-12-310001295401tbbk:AdvisorFinancingMember2019-12-310001295401us-gaap:UnallocatedFinancingReceivablesMember2019-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMember2019-09-300001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2019-09-300001295401tbbk:SbaNonRealEstateMember2019-09-300001295401tbbk:SbaConstructionMember2019-09-300001295401tbbk:SbaCommercialMortgageMember2019-09-300001295401tbbk:OtherSpecialtyLendingMember2019-09-300001295401tbbk:ConsumerFinancingReceivableMember2019-09-300001295401us-gaap:UnallocatedFinancingReceivablesMember2018-12-310001295401us-gaap:FinanceLeasesPortfolioSegmentMember2018-12-310001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2018-12-310001295401tbbk:SbaNonRealEstateMember2018-12-310001295401tbbk:SbaConstructionMember2018-12-310001295401tbbk:SbaCommercialMortgageMember2018-12-310001295401tbbk:OtherSpecialtyLendingMember2018-12-310001295401tbbk:ConsumerFinancingReceivableMember2018-12-310001295401tbbk:SblocMember2020-01-012020-09-300001295401us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2020-09-300001295401us-gaap:AvailableforsaleSecuritiesMember2020-09-300001295401tbbk:InvestmentInUnconsolidatedEntityMember2020-09-300001295401tbbk:CommercialLoansAtFairValueMember2020-09-300001295401us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2019-12-310001295401us-gaap:AvailableforsaleSecuritiesMember2019-12-310001295401tbbk:InvestmentInUnconsolidatedEntityMember2019-12-310001295401tbbk:CommercialLoansAtFairValueMember2019-12-310001295401us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2018-12-310001295401us-gaap:AvailableforsaleSecuritiesMember2018-12-310001295401tbbk:InvestmentInUnconsolidatedEntityMember2018-12-310001295401tbbk:CommercialLoansAtFairValueMember2018-12-310001295401tbbk:InvestmentInUnconsolidatedEntityMember2019-01-012019-12-310001295401us-gaap:AvailableforsaleSecuritiesMember2019-01-012019-12-310001295401us-gaap:FairValueMeasurementsNonrecurringMember2020-01-012020-09-300001295401us-gaap:FairValueMeasurementsRecurringMember2020-01-012020-09-300001295401srt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMember2020-09-300001295401srt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMember2019-12-310001295401us-gaap:SegmentContinuingOperationsMember2020-07-012020-09-300001295401us-gaap:SegmentDiscontinuedOperationsMember2020-01-012020-09-300001295401us-gaap:SegmentContinuingOperationsMember2019-07-012019-09-300001295401us-gaap:SegmentDiscontinuedOperationsMember2019-01-012019-09-300001295401us-gaap:SegmentContinuingOperationsMember2019-01-012019-09-300001295401tbbk:DirectorsExecutiveOfficersPrincipalStockholdersAndAffiliatesMember2020-09-300001295401tbbk:DirectorsExecutiveOfficersPrincipalStockholdersAndAffiliatesMember2019-12-310001295401us-gaap:InterestRateSwapMember2020-09-300001295401tbbk:InterestRateSwapGroupThreeMember2020-01-012020-09-300001295401tbbk:InterestRateSwapGroupSixMember2020-01-012020-09-300001295401tbbk:InterestRateSwapGroupSevenMember2020-01-012020-09-300001295401tbbk:InterestRateSwapGroupOneMember2020-01-012020-09-300001295401tbbk:InterestRateSwapGroupFourMember2020-01-012020-09-300001295401tbbk:InterestRateSwapGroupFiveMember2020-01-012020-09-300001295401us-gaap:InterestRateSwapMember2020-01-012020-09-300001295401tbbk:InterestRateSwapGroupThreeMember2020-09-300001295401tbbk:InterestRateSwapGroupSixMember2020-09-300001295401tbbk:InterestRateSwapGroupSevenMember2020-09-300001295401tbbk:InterestRateSwapGroupOneMember2020-09-300001295401tbbk:InterestRateSwapGroupFourMember2020-09-300001295401tbbk:InterestRateSwapGroupFiveMember2020-09-300001295401srt:AffiliatedEntityMember2020-09-300001295401srt:AffiliatedEntityMember2019-12-310001295401srt:WeightedAverageMemberus-gaap:CorporateDebtSecuritiesMembertbbk:MeasurementInputPriceIndicationsMember2020-09-300001295401srt:WeightedAverageMembertbbk:InsuranceLiquidatingTrustPreferredSecurityMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MinimumMemberus-gaap:CorporateDebtSecuritiesMembertbbk:MeasurementInputPriceIndicationsMember2020-09-300001295401srt:MinimumMemberus-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MaximumMemberus-gaap:CorporateDebtSecuritiesMembertbbk:MeasurementInputPriceIndicationsMember2020-09-300001295401srt:MaximumMemberus-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:WeightedAverageMemberus-gaap:CommercialMortgageBackedSecuritiesMember2020-09-300001295401srt:WeightedAverageMembertbbk:InsuranceLiquidatingTrustPreferredSecurityMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401srt:MinimumMemberus-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401srt:MaximumMemberus-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401tbbk:SeniorDebt4.75Memberus-gaap:SeniorNotesMember2020-08-132020-08-130001295401tbbk:WalnutStreetMemberus-gaap:SeniorNotesMember2014-12-300001295401tbbk:WalnutStreetMemberus-gaap:JuniorSubordinatedDebtMember2014-12-300001295401tbbk:SeniorDebt4.75Memberus-gaap:SeniorNotesMember2020-08-130001295401us-gaap:SubordinatedDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300001295401us-gaap:CommonStockMember2020-09-300001295401us-gaap:CommonStockMember2020-06-300001295401us-gaap:CommonStockMember2020-03-310001295401us-gaap:CommonStockMember2019-12-310001295401us-gaap:CommonStockMember2019-09-300001295401us-gaap:CommonStockMember2019-06-300001295401us-gaap:CommonStockMember2019-03-310001295401us-gaap:CommonStockMember2018-12-3100012954012019-09-3000012954012018-12-310001295401us-gaap:CustomerListsMember2016-05-012016-05-310001295401us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-09-300001295401tbbk:InsuranceLiquidatingTrustPreferredSecurityMemberus-gaap:FairValueInputsLevel3Member2020-09-300001295401us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-12-310001295401tbbk:InsuranceLiquidatingTrustPreferredSecurityMemberus-gaap:FairValueInputsLevel3Member2019-12-310001295401us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300001295401us-gaap:ResidentialMortgageBackedSecuritiesMember2020-09-300001295401us-gaap:CorporateDebtSecuritiesMember2020-09-300001295401us-gaap:CommercialMortgageBackedSecuritiesMember2020-09-300001295401us-gaap:CollateralizedMortgageObligationsMember2020-09-300001295401us-gaap:CollateralizedLoanObligationsMember2020-09-300001295401us-gaap:AssetBackedSecuritiesMember2020-09-300001295401tbbk:TaxExemptObligationsOfStatesAndPoliticalSubdivisionsMember2020-09-300001295401tbbk:TaxableUsStatesAndPoliticalSubdivisionsDebtSecuritiesMember2020-09-300001295401tbbk:FederallyInsuredStudentLoanSecuritiesMember2020-09-300001295401us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310001295401us-gaap:ResidentialMortgageBackedSecuritiesMember2019-12-310001295401us-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310001295401us-gaap:CollateralizedMortgageObligationsMember2019-12-310001295401us-gaap:CollateralizedLoanObligationsMember2019-12-310001295401us-gaap:AssetBackedSecuritiesMember2019-12-310001295401tbbk:TaxExemptObligationsOfStatesAndPoliticalSubdivisionsMember2019-12-310001295401tbbk:TaxableUsStatesAndPoliticalSubdivisionsDebtSecuritiesMember2019-12-310001295401tbbk:FederallyInsuredStudentLoanSecuritiesMember2019-12-310001295401us-gaap:SegmentDiscontinuedOperationsMember2020-09-300001295401us-gaap:CorporateMember2020-09-300001295401tbbk:SpecialtyFinanceMember2020-09-300001295401tbbk:PaymentsMember2020-09-300001295401us-gaap:SegmentDiscontinuedOperationsMember2019-12-310001295401us-gaap:CorporateMember2019-12-310001295401tbbk:SpecialtyFinanceMember2019-12-310001295401tbbk:PaymentsMember2019-12-310001295401us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001295401us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000012954012020-04-012020-06-300001295401us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100012954012020-01-012020-03-310001295401us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001295401us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-3000012954012019-04-012019-06-300001295401us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100012954012019-01-012019-03-310001295401srt:RestatementAdjustmentMember2019-01-010001295401srt:WeightedAverageMemberus-gaap:SubordinatedDebtMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401us-gaap:SubordinatedDebtMemberus-gaap:FairValueInputsLevel3Member2020-09-300001295401us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001295401us-gaap:EmployeeStockOptionMember2019-01-012019-09-300001295401us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001295401us-gaap:CorporateDebtSecuritiesMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-300001295401srt:RestatementAdjustmentMembertbbk:Asu201613Member2020-03-310001295401us-gaap:UnallocatedFinancingReceivablesMember2020-01-012020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMember2020-01-012020-09-300001295401tbbk:SecuritiesBackedLineOfCreditFinancingReceivableMember2020-01-012020-09-300001295401tbbk:SbaNonRealEstateMember2020-01-012020-09-300001295401tbbk:SbaConstructionMember2020-01-012020-09-300001295401tbbk:SbaCommercialMortgageMember2020-01-012020-09-300001295401tbbk:OtherSpecialtyLendingMember2020-01-012020-09-300001295401tbbk:ConsumerFinancingReceivableMember2020-01-012020-09-300001295401tbbk:OtherDebtSecuritiesSingleIssuersMember2020-01-012020-09-3000012954012020-03-012020-03-310001295401us-gaap:SubordinatedDebtMember2020-01-012020-09-300001295401tbbk:WalnutStreetMember2014-12-302014-12-300001295401srt:MinimumMemberus-gaap:LoansReceivableMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MaximumMemberus-gaap:LoansReceivableMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MaximumMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401tbbk:PaycheckProtectionProgramLoansMember2020-09-300001295401us-gaap:MutualFundMember2020-01-012020-09-300001295401us-gaap:EquitySecuritiesMember2020-01-012020-09-300001295401us-gaap:DebtSecuritiesMember2020-01-012020-09-300001295401tbbk:AdvisorFinancingMember2020-01-012020-09-300001295401us-gaap:CorporateMember2020-07-012020-09-300001295401tbbk:PaymentsMember2020-07-012020-09-300001295401us-gaap:CorporateMember2020-01-012020-09-300001295401tbbk:PaymentsMember2020-01-012020-09-300001295401us-gaap:CorporateMember2019-07-012019-09-300001295401tbbk:PaymentsMember2019-07-012019-09-300001295401us-gaap:CorporateMember2019-01-012019-09-300001295401tbbk:PaymentsMember2019-01-012019-09-300001295401us-gaap:SegmentContinuingOperationsMember2020-01-012020-09-300001295401us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001295401us-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001295401us-gaap:HomeEquityMember2019-12-310001295401tbbk:SbaConstructionMember2019-12-310001295401tbbk:SbaCommercialMortgageMember2019-12-310001295401tbbk:SbaConstructionMember2020-09-300001295401tbbk:SbaCommercialMortgageMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMember2020-09-300001295401us-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310001295401us-gaap:ConsumerLoanMember2020-09-300001295401tbbk:SbaNonRealEstateMember2020-09-300001295401us-gaap:ConsumerLoanMember2019-12-310001295401tbbk:SbaNonRealEstateMember2019-12-310001295401tbbk:Asu201613Member2020-01-012020-03-310001295401tbbk:Asu201613Memberus-gaap:UnallocatedFinancingReceivablesMember2020-09-300001295401tbbk:Asu201613Memberus-gaap:FinanceLeasesPortfolioSegmentMember2020-09-300001295401tbbk:Asu201613Membertbbk:SblocMember2020-09-300001295401tbbk:Asu201613Membertbbk:SbaNonRealEstateMember2020-09-300001295401tbbk:Asu201613Membertbbk:SbaConstructionMember2020-09-300001295401tbbk:Asu201613Membertbbk:SbaCommercialMortgageMember2020-09-300001295401tbbk:Asu201613Membertbbk:OtherSpecialtyLendingMember2020-09-300001295401tbbk:Asu201613Membertbbk:InsuranceBackedLinesOfCreditIblocMember2020-09-300001295401tbbk:Asu201613Membertbbk:ConsumerFinancingReceivableMember2020-09-300001295401tbbk:Asu201613Membertbbk:AdvisorFinancingMember2020-09-300001295401tbbk:Asu201613Memberus-gaap:FinanceLeasesPortfolioSegmentMember2020-01-010001295401tbbk:Asu201613Membertbbk:SblocMember2020-01-010001295401tbbk:Asu201613Membertbbk:SbaNonRealEstateMember2020-01-010001295401tbbk:Asu201613Membertbbk:SbaConstructionMember2020-01-010001295401tbbk:Asu201613Membertbbk:SbaCommercialMortgageMember2020-01-010001295401tbbk:Asu201613Membertbbk:OtherSpecialtyLendingMember2020-01-010001295401tbbk:Asu201613Membertbbk:InsuranceBackedLinesOfCreditIblocMember2020-01-010001295401tbbk:Asu201613Membertbbk:ConsumerFinancingReceivableMember2020-01-010001295401tbbk:Asu201613Membertbbk:AdvisorFinancingMember2020-01-010001295401tbbk:IncurredLossMethodMemberus-gaap:FinanceLeasesPortfolioSegmentMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:SblocMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:SbaNonRealEstateMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:SbaConstructionMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:SbaCommercialMortgageMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:OtherSpecialtyLendingMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:InsuranceBackedLinesOfCreditIblocMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:ConsumerFinancingReceivableMember2019-12-310001295401tbbk:IncurredLossMethodMembertbbk:AdvisorFinancingMember2019-12-310001295401tbbk:IncurredLossMethodMember2019-12-310001295401tbbk:Asu201613Member2020-09-300001295401tbbk:Asu201613Member2020-01-010001295401us-gaap:FairValueInputsLevel3Member2019-12-310001295401tbbk:McmahonLeasingMember2020-01-012020-01-310001295401tbbk:InvestmentInUnconsolidatedEntityMember2020-01-012020-09-300001295401tbbk:CommercialLoansAtFairValueMember2020-01-012020-09-300001295401tbbk:CommercialLoansAtFairValueMember2019-01-012019-12-310001295401us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2020-01-012020-09-300001295401us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2019-01-012019-12-310001295401us-gaap:AvailableforsaleSecuritiesMember2020-01-012020-09-300001295401srt:MinimumMember2020-01-012020-09-300001295401srt:MaximumMember2020-01-012020-09-3000012954012020-07-012020-09-3000012954012019-07-012019-09-3000012954012014-09-300001295401us-gaap:FairValueInputsLevel2Member2020-09-300001295401us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001295401us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-09-300001295401us-gaap:FairValueInputsLevel2Member2019-12-310001295401us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001295401us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-3100012954012020-09-3000012954012019-12-310001295401us-gaap:CorporateDebtSecuritiesMember2020-01-012020-09-300001295401us-gaap:FairValueInputsLevel3Member2020-09-300001295401tbbk:InvestmentInUnconsolidatedEntityMember2020-01-012020-09-300001295401us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001295401us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-3100012954012019-01-012019-09-300001295401tbbk:McmahonLeasingMemberus-gaap:CustomerListsMember2020-01-310001295401tbbk:McmahonLeasingMember2020-01-310001295401us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001295401us-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001295401srt:MinimumMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MaximumMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001295401srt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001295401us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001295401us-gaap:FairValueMeasurementsRecurringMember2020-09-300001295401us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001295401us-gaap:FairValueMeasurementsRecurringMember2019-12-310001295401us-gaap:CustomerListsMember2020-01-012020-09-300001295401us-gaap:ComputerSoftwareIntangibleAssetMember2012-11-292012-11-290001295401tbbk:McmahonLeasingMember2020-09-3000012954012020-10-3000012954012020-01-012020-09-30tbbk:segmenttbbk:agreementtbbk:loantbbk:securityiso4217:USDxbrli:sharesxbrli:puretbbk:itemiso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2020

o

TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from: _____ to _____

Commission file number: 000-51018

THE BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

23-3016517

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

409 Silverside Road, Wilmington, DE 19809

(302) 385-5000

(Address of principal executive offices and zip code)

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o

Accelerated filer x

Non-accelerated filer o

Smaller reporting company o

Emerging growth company o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

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 

As of October 30, 2020, there were 57,590,874 outstanding shares of common stock, $1.00 par value.

2


THE BANCORP, INC

Form 10-Q Index

Page

Part I Financial Information

Item 1

Financial Statements:

4

Consolidated Balance Sheets – September 30, 2020 (unaudited) and December 31, 2019

4

Unaudited Consolidated Statements of Operations – Three and nine months ended September 30, 2020 and 2019

5

Unaudited Consolidated Statements of Comprehensive Income – Three and nine months ended September 30, 2020 and 2019

7

Unaudited Consolidated Statements of Changes in Shareholders’ Equity – Nine months ended September 30, 2020 and 2019

8

Unaudited Consolidated Statements of Cash Flows – Nine months ended September 30, 2020 and 2019

10

Notes to Unaudited Consolidated Financial Statements

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

49

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

75

Item 4.

Controls and Procedures

75

Part II Other Information

Item 1.

Legal Proceedings

76

Item 1A.

Risk Factors

76

Item 6.

Exhibits

79

Signatures

80


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

THE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

2020

2019

(unaudited)

(in thousands)

ASSETS

Cash and cash equivalents

Cash and due from banks

$                    6,220 

$                  19,928 

Interest earning deposits at Federal Reserve Bank

294,758 

924,544 

Total cash and cash equivalents

300,978 

944,472 

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

1,264,903 

1,320,692 

Investment securities, held-to-maturity (fair value $83,002 at December 31, 2019)

-

84,387 

Commercial loans, at fair value (held-for-sale at December 31, 2019)

1,849,947 

1,180,546 

Loans, net of deferred loan fees and costs

2,488,760 

1,824,245 

Allowance for credit losses

(15,727)

(10,238)

Loans, net

2,473,033 

1,814,007 

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

1,368 

5,342 

Premises and equipment, net

15,849 

17,538 

Accrued interest receivable

18,852 

13,619 

Intangible assets, net

2,563 

2,315 

Deferred tax asset, net

7,952 

12,538 

Investment in unconsolidated entity, at fair value

31,783 

39,154 

Assets held-for-sale from discontinued operations

122,253 

140,657 

Other assets

79,821 

81,696 

Total assets

$             6,169,302 

$             5,656,963 

LIABILITIES

Deposits

Demand and interest checking

$             4,882,834 

$             4,402,740 

Savings and money market

505,928 

174,290 

Time deposits

-

475,000 

Total deposits

5,388,762 

5,052,030 

Securities sold under agreements to repurchase

42 

82 

Senior debt

98,222 

-

Subordinated debentures

13,401 

13,401 

Other long-term borrowings

40,462 

40,991 

Other liabilities

69,954 

65,962 

Total liabilities

5,610,843 

5,172,466 

SHAREHOLDERS' EQUITY

Common stock - authorized, 75,000,000 shares of $1.00 par value; 57,590,874 and 56,940,521

shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

57,591 

56,941 

Treasury stock, at cost (100,000 shares)

(866)

(866)

Additional paid-in capital

376,751 

371,633 

Retained earnings

104,282 

50,742 

Accumulated other comprehensive income

20,701 

6,047 

Total shareholders' equity

558,459 

484,497 

Total liabilities and shareholders' equity

$             6,169,302 

$             5,656,963 

The accompanying notes are an integral part of these consolidated statements.


4


THE BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months ended September 30,

For the nine months ended September 30,

2020

2019

2020

2019

(in thousands, except per share data)

Interest income

Loans, including fees

$              44,433 

$              35,302 

$              125,326 

$              95,749 

Investment securities:

Taxable interest

7,911 

10,485 

28,594 

32,649 

Tax-exempt interest

28 

43 

87 

133 

Interest earning deposits

106 

2,545 

1,836 

7,502 

52,478 

48,375 

155,843 

136,033 

Interest expense

Deposits

1,730 

9,034 

11,468 

26,727 

Short-term borrowings

1 

1,595 

181 

2,624 

Senior debt

633 

-

633 

-

Subordinated debentures

118 

186 

408 

573 

2,482 

10,815 

12,690 

29,924 

Net interest income

49,996 

37,560 

143,153 

106,109 

Provision for credit losses

1,297 

650 

5,798 

2,950 

Net interest income after provision for credit losses

48,699 

36,910 

137,355 

103,159 

Non-interest income

Service fees on deposit accounts

8 

8 

23 

69 

ACH, card and other payment processing fees

1,760 

2,590 

5,313 

7,414 

Prepaid, debit card and related fees

19,434 

16,134 

56,647 

48,137 

Net realized and unrealized gains (losses) on commercial loans

originated for sale

684 

13,704 

(5,412)

24,319 

Change in value of investment in unconsolidated entity

-

-

(45)

-

Leasing related income

1,519 

589 

2,795 

2,311 

Other

947 

490 

1,996 

1,379 

Total non-interest income

24,352 

33,515 

61,317 

83,629 

Non-interest expense

Salaries and employee benefits

26,417 

24,526 

74,650 

70,192 

Depreciation and amortization

785 

885 

2,457 

2,825 

Rent and related occupancy cost

1,376 

1,432 

4,191 

4,304 

Data processing expense

1,192 

1,192 

3,538 

3,684 

Printing and supplies

114 

164 

440 

506 

Audit expense

397 

402 

1,205 

1,265 

Legal expense

994 

1,466 

4,136 

4,324 

Amortization of intangible assets

147 

382 

441 

1,148 

FDIC insurance

2,180 

860 

7,687 

4,884 

Software

3,595 

3,199 

10,458 

9,180 

Insurance

741 

663 

2,059 

1,874 

Telecom and IT network communications

392 

417 

1,186 

1,060 

Consulting

410 

934 

1,011 

2,576 

SEC Settlement

-

1,400 

-

1,400 

Lease termination expense

-

-

-

908 

Other

3,286 

4,129 

9,605 

10,669 

Total non-interest expense

42,026 

42,051 

123,064 

120,799 

Income from continuing operations before income taxes

31,025 

28,374 

75,608 

65,989 

Income tax expense

7,894 

7,975 

19,033 

17,585 

Net income from continuing operations

$              23,131 

$              20,399 

$                56,575 

$              48,404 

Discontinued operations

Income (loss) from discontinued operations before income taxes

(1,671)

151 

(2,720)

1,875 

Income tax expense (benefit)

(1,794)

125 

(2,058)

574 

5


Income (loss) from discontinued operations, net of tax

123