The Bancorp, Inc. Reports Second Quarter Financial Results
Recent Developments
The Company entered into a purchase and sale agreement for an apartment property acquired by
One of the accounting estimates as described in the notes to our financial statements, is the allowance for credit losses (“ACL”), which is sensitive to a variety of inherent portfolio and external factors. REBL may be one of the more sensitive portfolios to such factors. In the second quarter of 2024, REBL loans classified as either special mention or substandard increased to
The Company has a single
|
|||||||
|
|
Net Income (000’s) |
EPS |
||||
GAAP |
$ |
53,686 |
$ |
1.05 |
|||
Interest income impact of legacy security transferred to nonaccrual, net of tax |
|
1,009 |
|
0.02 |
|||
As adjusted, non-GAAP |
$ |
54,695 |
$ |
1.07 |
In the second quarter of 2024, the Company initiated its measured entry into consumer fintech lending, by which the Company makes consumer loans with the marketing and servicing assistance of its existing and planned new fintech relationships. While the
Highlights
-
The Bancorp reported net income of
$53.7 million , or$1.05 per diluted share (“EPS”), for the quarter endedJune 30, 2024 , compared to net income of$49.0 million , or$0.89 per diluted share, for the quarter endedJune 30, 2023 , or an EPS increase of 18%. While net income increased 10% between these periods, outstanding shares were decreased as a result of common share repurchases which were significantly increased in 2024.
-
Return on assets and equity for the quarter ended
June 30, 2024 , amounted to 2.8% and 27%, respectively, compared to 2.6% and 27%, respectively, for the quarter endedJune 30, 2023 (all percentages “annualized”).
-
Net interest income increased 8% to
$93.8 million for the quarter endedJune 30, 2024 , compared to$87.2 million for the quarter endedJune 30, 2023 .
-
Net interest margin amounted to 4.97% for the quarter ended
June 30, 2024 , compared to 4.83% for the quarter endedJune 30, 2023 , and 5.15% for the quarter endedMarch 31, 2024 .
-
Loans, net of deferred fees and costs were
$5.61 billion atJune 30, 2024 , compared to$5.36 billion atDecember 31, 2023 and$5.27 billion atJune 30, 2023 . Those changes reflected an increase of 3% quarter over linked quarter and an increase of 6% year over year.
-
Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased
$4.36 billion , or 13%, to$37.14 billion for the quarter endedJune 30, 2024 , compared to the quarter endedJune 30, 2023 . The increase reflects continued organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH, and other payment fees increased 13% to$27.8 million for the second quarter of 2024 compared to the second quarter of 2023.
-
Small business loans (“SBL”), including those held at fair value, amounted to
$964.4 million atJune 30, 2024 , or 16% higher year over year, and 4% higher quarter over linked quarter, excluding the impact of$28.6 million of loans with related secured borrowings.
-
Direct lease financing balances increased 8% year over year to
$711.4 million atJune 30, 2024 , and 1% overMarch 31, 2024 .
-
At
June 30, 2024 , real estate bridge loans of$2.12 billion had grown 1% compared to a$2.10 billion balance atMarch 31, 2024 , and 16% compared to theJune 30, 2023 balance of$1.83 billion . These real estate bridge loans consist entirely of rehabilitation loans for apartment buildings.
-
Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”), and investment advisor financing loans collectively decreased 13% year over year and increased 1% quarter over linked quarter to
$1.80 billion atJune 30, 2024 .
-
The average interest rate on
$6.96 billion of average deposits and interest-bearing liabilities during the second quarter of 2024 was 2.50%. Average deposits of$6.72 billion for the second quarter of 2024 increased$213 million over first quarter 2024, while historically, average deposits have tended to decrease between those periods, as tax refund related balances decline.
-
As of
June 30, 2024 , 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 10.07%, 14.13%, 14.68% and 14.13%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.The Bancorp Bank , National Association, remains well capitalized under banking regulations.
-
Book value per common share at
June 30, 2024 was$15.77 compared to$13.74 per common share atJune 30, 2023 , an increase of 15%.
-
The Bancorp repurchased 3,018,405 shares of its common stock at an average cost of
$33.13 per share during the quarter endedJune 30, 2024 . As a result of the increase in the share repurchase in the second quarter of 2024, from$50.0 million to$100.0 million , outstanding shares atJune 30, 2024 amounted to 49.3 million, compared to 53.2 million shares atDecember 31, 2023 , or a reduction of 7.4%
- The Bancorp emphasizes safety and soundness and its balance sheet has a risk profile enhanced by the special nature of the collateral supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have experienced various economic stresses.
-
The vast majority of The Bancorp’s funding is comprised of
FDIC -insured and/or small balance accounts, which adjust to only a portion of changes in rates. The Bancorp also has lines of credit withU.S. government sponsored agencies totaling approximately$3.1 billion as ofJune 30, 2024 , as well as access to other forms of liquidity.
-
In its real estate bridge lending portfolio, The Bancorp has minimal exposure to non-multifamily commercial real estate such as office buildings, and instead has a portfolio largely comprised of rehabilitation bridge loans for apartment buildings. These loans generally have three year terms with two one-year extensions to allow for the rehabilitation work to be completed and rentals stabilized for an extended period, before being refinanced at lower rates through
U.S. Government Sponsored Entities or other lenders. The rehabilitation real estate lending portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While the macro-economic environment has challenged the multifamily bridge space, the stability of The Bancorp’s rehabilitation bridge loan portfolio is evidenced by the estimated values of underlying collateral. The Bancorp’s$2.1 billion apartment bridge lending portfolio atJune 30, 2024 has a weighted average origination date “as is” LTV of 70%, based on third party appraisals. Further, the weighted average origination date “as stabilized” LTV, which measures the estimated value of the apartments after the rehabilitation is complete may provide even greater protection.
- As part of the underwriting process, The Bancorp reviews borrowers’ previous rehabilitation experience in addition to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news and lien searches, visitations by bank personnel and/or designated engineers, and other information sources.
- Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early identification of potential issues, and expedited action to address on a timely basis.
- Operations and ongoing loan evaluation are overseen by multiple levels of management, in addition to the real estate bridge lending team’s experienced professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes a separate loan committee specific to real estate bridge lending, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the real estate bridge lending team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses methodology (“CECL”), all of which similarly do not report to anyone on the real estate bridge lending team.
- SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50-60% LTV’s.
- Additional details regarding our loan portfolios are included in the related tables in this press release, as is the summarization of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s risk profile inherent in its loan portfolios, funding and earnings levels, may present opportunities to further increase shareholder value, while still prudently maintaining capital levels. Such opportunities include the recently increased planned stock repurchases noted above.
-
In the second quarter of 2024, the Company purchased approximately
$900 million of fixed rate government sponsored entity backed commercial and residential mortgage securities of varying maturities, with an approximate 5.11% weighted average yield, and estimated weighted average lives of eight years, to reduce its exposure to lower levels of net interest income, should theFederal Reserve begin decreasing rates. Such purchases would also reduce the additional net interest income which will result if theFederal Reserve increases rates. While there are many variables and limitations to estimating exposure to changes in rates, such purchases and continuing fixed rate loan originations are projected to reduce such exposure to modest levels. In prior years, The Bancorp deferred adding fixed rate securities when yields were particularly low, which has afforded the flexibility to benefit from, and secure, more advantageous securities and loan rates.
“The second quarter, which usually reflects greater tax refund related runoff, instead showed continued broad based momentum in deposit volumes, and deposit stability,” said
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at
About The Bancorp
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
Financial highlights (unaudited) |
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Three months ended |
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Six months ended |
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Consolidated condensed income statements |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(Dollars in thousands, except per share and share data) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
93,795 |
|
$ |
87,195 |
|
$ |
188,213 |
|
$ |
173,011 |
Provision for credit losses on loans |
|
1,252 |
|
|
361 |
|
|
3,421 |
|
|
2,264 |
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
ACH, card and other payment processing fees |
|
3,000 |
|
|
2,429 |
|
|
5,964 |
|
|
4,600 |
Prepaid, debit card and related fees |
|
24,755 |
|
|
22,177 |
|
|
49,041 |
|
|
45,500 |
Net realized and unrealized gains on commercial |
|
|
|
|
|
|
|
|
|
|
|
loans, at fair value |
|
503 |
|
|
1,921 |
|
|
1,599 |
|
|
3,646 |
Leasing related income |
|
1,429 |
|
|
1,511 |
|
|
1,817 |
|
|
3,001 |
Consumer credit fintech fees |
|
140 |
|
|
— |
|
|
140 |
|
|
— |
Other non-interest income |
|
895 |
|
|
1,298 |
|
|
1,543 |
|
|
1,578 |
Total non-interest income |
|
30,722 |
|
|
29,336 |
|
|
60,104 |
|
|
58,325 |
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
33,863 |
|
|
33,167 |
|
|
64,143 |
|
|
62,952 |
Data processing expense |
|
1,423 |
|
|
1,398 |
|
|
2,844 |
|
|
2,719 |
Legal expense |
|
633 |
|
|
949 |
|
|
1,454 |
|
|
1,907 |
|
|
869 |
|
|
472 |
|
|
1,714 |
|
|
1,427 |
Software |
|
4,637 |
|
|
4,317 |
|
|
9,126 |
|
|
8,554 |
Other non-interest expense |
|
10,021 |
|
|
9,640 |
|
|
18,877 |
|
|
20,414 |
Total non-interest expense |
|
51,446 |
|
|
49,943 |
|
|
98,158 |
|
|
97,973 |
Income before income taxes |
|
71,819 |
|
|
66,227 |
|
|
146,738 |
|
|
131,099 |
Income tax expense |
|
18,133 |
|
|
17,218 |
|
|
36,623 |
|
|
32,968 |
Net income |
|
53,686 |
|
|
49,009 |
|
|
110,115 |
|
|
98,131 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - basic |
$ |
1.05 |
|
$ |
0.89 |
|
$ |
2.12 |
|
$ |
1.78 |
|
|
|
|
|
|
||||||
Net income per share - diluted |
$ |
1.05 |
|
$ |
0.89 |
|
$ |
2.10 |
|
$ |
1.76 |
Weighted average shares - basic |
|
50,937,055 |
|
|
54,871,681 |
|
|
51,842,097 |
|
|
55,160,642 |
Weighted average shares - diluted |
|
51,337,491 |
|
|
55,269,640 |
|
|
52,327,122 |
|
|
55,653,950 |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated balance sheets |
|
|
|
|
|
|
|
||||
|
2024 (unaudited) |
|
2024 (unaudited) |
|
2023 |
|
2023 (unaudited) |
||||
|
|
(Dollars in thousands, except share data) |
|||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
5,741 |
|
$ |
9,105 |
|
$ |
4,820 |
|
$ |
6,496 |
Interest earning deposits at |
|
399,853 |
|
|
1,241,363 |
|
|
1,033,270 |
|
|
874,050 |
Total cash and cash equivalents |
|
405,594 |
|
|
1,250,468 |
|
|
1,038,090 |
|
|
880,546 |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities, available-for-sale, at fair value, net of |
|
1,581,006 |
|
|
718,247 |
|
|
747,534 |
|
|
776,410 |
Commercial loans, at fair value |
|
265,193 |
|
|
282,998 |
|
|
332,766 |
|
|
396,581 |
Loans, net of deferred fees and costs |
|
5,605,727 |
|
|
5,459,344 |
|
|
5,361,139 |
|
|
5,267,574 |
Allowance for credit losses |
|
(28,575) |
|
|
(28,741) |
|
|
(27,378) |
|
|
(23,284) |
Loans, net |
|
5,577,152 |
|
|
5,430,603 |
|
|
5,333,761 |
|
|
5,244,290 |
|
|
15,642 |
|
|
15,642 |
|
|
15,591 |
|
|
20,157 |
Premises and equipment, net |
|
28,038 |
|
|
27,482 |
|
|
27,474 |
|
|
26,408 |
Accrued interest receivable |
|
43,720 |
|
|
37,861 |
|
|
37,534 |
|
|
34,062 |
Intangible assets, net |
|
1,452 |
|
|
1,552 |
|
|
1,651 |
|
|
1,850 |
Other real estate owned |
|
57,861 |
|
|
19,559 |
|
|
16,949 |
|
|
20,952 |
Deferred tax asset, net |
|
20,556 |
|
|
21,764 |
|
|
21,219 |
|
|
19,215 |
Other assets |
|
149,187 |
|
|
109,680 |
|
|
133,126 |
|
|
122,435 |
Total assets |
$ |
8,145,401 |
|
$ |
7,915,856 |
|
$ |
7,705,695 |
|
$ |
7,542,906 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
7,095,391 |
|
$ |
6,828,159 |
|
$ |
6,630,251 |
|
$ |
6,554,967 |
Savings and money market |
|
60,297 |
|
|
62,597 |
|
|
50,659 |
|
|
68,084 |
Total deposits |
|
7,155,688 |
6,890,756 |
6,680,910 |
6,623,051 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
— |
|
|
— |
|
|
42 |
|
|
42 |
Senior debt |
|
96,037 |
|
|
95,948 |
|
|
95,859 |
|
|
95,682 |
Subordinated debenture |
|
13,401 |
|
|
13,401 |
|
|
13,401 |
|
|
13,401 |
Other long-term borrowings |
|
38,283 |
|
|
38,407 |
|
|
38,561 |
|
|
9,917 |
Other liabilities |
|
65,001 |
60,579 |
69,641 |
51,646 |
||||||
Total liabilities |
$ |
7,368,410 |
$ |
7,099,091 |
$ |
6,898,414 |
$ |
6,793,739 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
Common stock - authorized, 75,000,000 shares of |
|
49,268 |
|
|
52,253 |
|
|
53,203 |
|
|
54,542 |
Additional paid-in capital |
|
72,171 |
|
|
166,335 |
|
|
212,431 |
|
|
256,115 |
Retained earnings |
|
671,730 |
|
|
618,044 |
|
|
561,615 |
|
|
467,450 |
Accumulated other comprehensive loss |
|
(16,178) |
(19,867) |
(19,968) |
(28,940) |
||||||
Total shareholders' equity |
|
776,991 |
|
|
816,765 |
|
|
807,281 |
|
|
749,167 |
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
8,145,401 |
$ |
7,915,856 |
$ |
7,705,695 |
$ |
7,542,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance sheet and net interest income |
|
Three months ended |
|
|
Three months ended |
|||||||||||
|
|
(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(1) |
$ |
5,749,565 |
|
$ |
114,970 |
|
|
8.00% |
|
$ |
5,730,384 |
|
$ |
107,299 |
|
7.49% |
Leases-bank qualified(2) |
|
4,621 |
|
|
117 |
|
|
10.13% |
|
|
3,801 |
|
|
100 |
|
10.52% |
Investment securities-taxable |
|
1,454,393 |
|
|
17,520 |
|
|
4.82% |
|
|
778,100 |
|
|
9,873 |
|
5.08% |
Investment securities-nontaxable(2) |
|
2,895 |
|
|
50 |
|
|
6.91% |
|
|
3,234 |
|
|
53 |
|
6.56% |
Interest earning deposits at |
|
341,863 |
|
|
4,677 |
|
|
5.47% |
|
|
701,057 |
|
|
8,997 |
|
5.13% |
Net interest earning assets |
|
7,553,337 |
|
|
137,334 |
|
|
7.27% |
|
|
7,216,576 |
|
|
126,322 |
|
7.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
(28,568) |
|
|
|
|
|
|
|
|
(23,895) |
|
|
|
|
|
Other assets |
|
266,061 |
|
|
|
|
|
|
|
|
231,035 |
|
|
|
|
|
|
$ |
7,790,830 |
|
|
|
|
|
|
|
$ |
7,423,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
6,657,386 |
|
$ |
39,542 |
|
|
2.38% |
|
$ |
6,399,750 |
|
$ |
36,688 |
|
2.29% |
Savings and money market |
|
60,212 |
|
|
457 |
|
|
3.04% |
|
|
78,252 |
|
|
728 |
|
3.72% |
Total deposits |
|
6,717,598 |
|
|
39,999 |
|
|
2.38% |
|
|
6,478,002 |
|
|
37,416 |
|
2.31% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
92,412 |
|
|
1,295 |
|
|
5.61% |
|
|
— |
|
|
— |
|
— |
Repurchase agreements |
|
— |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
Long-term borrowings |
|
38,362 |
|
|
685 |
|
|
7.14% |
|
|
9,949 |
|
|
128 |
|
5.15% |
Subordinated debentures |
|
13,401 |
|
|
291 |
8.69% |
|
|
13,401 |
|
|
271 |
8.09% |
|||
Senior debt |
|
95,984 |
|
|
1,234 |
5.14% |
|
|
96,890 |
|
|
1,280 |
5.28% |
|||
Total deposits and liabilities |
|
6,957,757 |
|
|
43,504 |
|
|
2.50% |
|
|
6,598,283 |
|
|
39,095 |
|
2.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
36,195 |
|
|
|
|
|
|
|
|
88,276 |
|
|
|
|
|
Total liabilities |
|
6,993,952 |
|
|
|
|
|
|
|
|
6,686,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
796,878 |
|
|
|
|
|
|
|
|
737,157 |
|
|
|
|
|
|
$ |
7,790,830 |
|
|
|
|
|
|
|
$ |
7,423,716 |
|
|
|
|
|
Net interest income on tax equivalent basis(2) |
|
|
|
$ |
93,830 |
|
|
|
|
|
$ |
87,227 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tax equivalent adjustment |
|
|
|
35 |
|
|
|
|
|
|
32 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income |
|
|
$ |
93,795 |
|
|
|
$ |
87,195 |
|||||||
Net interest margin(2) |
|
|
|
|
|
|
|
4.97% |
|
|
|
|
|
|
|
4.83% |
(1) Includes commercial loans, at fair value. All periods include non-accrual loans. |
(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2024 and 2023. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance sheet and net interest income |
Six months ended |
|
Six months ended |
|||||||||||||
|
|
(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(1) |
$ |
5,733,413 |
|
$ |
229,130 |
|
|
7.99% |
|
$ |
5,858,040 |
|
$ |
213,503 |
|
7.29% |
Leases-bank qualified(2) |
|
4,683 |
|
|
233 |
|
|
9.95% |
|
|
3,582 |
|
|
169 |
|
9.44% |
Investment securities-taxable |
|
1,093,996 |
|
|
27,154 |
|
|
4.96% |
|
|
776,089 |
|
|
19,173 |
|
4.94% |
Investment securities-nontaxable(2) |
|
2,895 |
|
|
100 |
|
|
6.91% |
|
|
3,288 |
|
|
94 |
|
5.72% |
Interest earning deposits at |
|
607,968 |
|
|
16,561 |
|
|
5.45% |
|
|
640,864 |
|
|
15,582 |
|
4.86% |
Net interest earning assets |
|
7,442,955 |
|
|
273,178 |
|
|
7.34% |
|
|
7,281,863 |
|
|
248,521 |
|
6.83% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
(27,862) |
|
|
|
|
|
|
|
|
(23,215) |
|
|
|
|
|
Other assets |
|
323,244 |
|
|
|
|
|
|
|
|
234,037 |
|
|
|
|
|
|
$ |
7,738,337 |
|
|
|
|
|
|
|
$ |
7,492,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
6,553,107 |
|
$ |
78,256 |
|
|
2.39% |
|
$ |
6,401,678 |
|
$ |
69,071 |
|
2.16% |
Savings and money market |
|
55,591 |
|
|
904 |
|
|
3.25% |
|
|
105,105 |
|
|
1,947 |
|
3.70% |
Time deposits |
|
— |
|
|
— |
— |
|
|
41,933 |
|
|
858 |
4.09% |
|||
Total deposits |
|
6,608,698 |
|
|
79,160 |
|
|
2.40% |
|
|
6,548,716 |
|
|
71,876 |
|
2.20% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
46,892 |
|
|
1,314 |
|
|
5.60% |
|
|
10,193 |
|
|
234 |
|
4.59% |
Repurchase agreements |
|
6 |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
Long-term borrowings |
|
38,439 |
|
|
1,371 |
|
|
7.13% |
|
|
9,973 |
|
|
254 |
|
5.09% |
Subordinated debentures |
|
13,401 |
|
|
583 |
8.70% |
|
|
13,401 |
|
|
532 |
7.94% |
|||
Senior debt |
|
95,939 |
|
|
2,467 |
5.14% |
|
|
97,985 |
|
|
2,559 |
5.22% |
|||
Total deposits and liabilities |
|
6,803,375 |
|
|
84,895 |
|
|
2.50% |
|
|
6,680,309 |
|
|
75,455 |
|
2.26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
142,826 |
|
|
|
|
|
|
|
|
90,777 |
|
|
|
|
|
Total liabilities |
|
6,946,201 |
|
|
|
|
|
|
|
|
6,771,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
792,136 |
|
|
|
|
|
|
|
|
721,599 |
|
|
|
|
|
|
$ |
7,738,337 |
|
|
|
|
|
|
|
$ |
7,492,685 |
|
|
|
|
|
Net interest income on tax equivalent basis(2) |
|
|
|
$ |
188,283 |
|
|
|
|
|
$ |
173,066 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tax equivalent adjustment |
|
|
|
70 |
|
|
|
|
|
|
55 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income |
|
|
$ |
188,213 |
|
|
|
$ |
173,011 |
|||||||
Net interest margin(2) |
|
|
|
|
|
|
|
5.06% |
|
|
|
|
|
|
|
4.75% |
(1) Includes commercial loans, at fair value. All periods include non-accrual loans. |
(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2024 and 2023. |
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
Six months ended |
|
Year ended |
||||
|
|
|
|
|
|
|||
|
2024 (unaudited) |
|
2023 (unaudited) |
2023 |
||||
|
(Dollars in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
Balance in the allowance for credit losses at beginning of period |
$ |
27,378 |
|
$ |
22,374 |
$ |
22,374 |
|
|
|
|
|
|
|
|
|
|
Loans charged-off: |
|
|
|
|
|
|
|
|
SBA non-real estate |
|
417 |
|
|
871 |
|
|
871 |
SBA commercial mortgage |
|
— |
|
|
— |
|
|
76 |
Direct lease financing |
|
2,301 |
|
|
1,439 |
|
|
3,666 |
IBLOC |
|
— |
|
|
— |
|
|
24 |
Consumer - home equity |
|
10 |
|
|
— |
|
— |
|
Other loans |
|
6 |
|
|
3 |
|
3 |
|
Total |
|
2,734 |
|
|
2,313 |
|
4,640 |
|
|
|
|
|
|
|
|
|
|
Recoveries: |
|
|
|
|
|
|
|
|
SBA non-real estate |
|
32 |
|
|
298 |
|
|
475 |
SBA commercial mortgage |
|
— |
|
|
75 |
|
|
75 |
Direct lease financing |
|
59 |
|
|
175 |
|
|
330 |
Consumer - home equity |
|
— |
|
|
49 |
|
299 |
|
Total |
|
91 |
|
|
597 |
|
1,179 |
|
Net charge-offs |
|
2,643 |
|
|
1,716 |
|
|
3,461 |
Provision for credit losses, excluding commitment provision |
|
3,840 |
|
|
2,626 |
|
8,465 |
|
|
|
|
|
|
|
|
|
|
Balance in allowance for credit losses at end of period |
$ |
28,575 |
|
$ |
23,284 |
|
$ |
27,378 |
Net charge-offs/average loans |
|
0.05% |
|
|
0.03% |
|
|
0.07% |
Net charge-offs/average assets |
|
0.03% |
|
|
0.02% |
|
|
0.05% |
|
|||||||||||
Loan portfolio |
|
|
|
|
|
|
|
||||
|
2024 (unaudited) |
|
2024 (unaudited) |
|
2023 |
|
2023 (unaudited) |
||||
|
(Dollars in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
SBL non-real estate |
$ |
171,893 |
|
$ |
140,956 |
|
$ |
137,752 |
|
$ |
117,621 |
SBL commercial mortgage |
|
647,894 |
|
|
637,926 |
|
|
606,986 |
|
|
515,008 |
SBL construction |
|
30,881 |
27,290 |
22,627 |
32,471 |
||||||
Small business loans |
|
850,668 |
|
|
806,172 |
|
|
767,365 |
|
|
665,100 |
Direct lease financing |
|
711,403 |
|
|
702,512 |
|
|
685,657 |
|
|
657,316 |
SBLOC / IBLOC(1) |
|
1,558,095 |
|
|
1,550,313 |
|
|
1,627,285 |
|
|
1,883,607 |
Advisor financing(2) |
|
238,831 |
|
|
232,206 |
|
|
221,612 |
|
|
173,376 |
Real estate bridge loans |
|
2,119,324 |
|
|
2,101,896 |
|
|
1,999,782 |
|
|
1,826,227 |
Consumer fintech(3) |
|
70,081 |
|
|
— |
|
|
— |
|
|
— |
Other loans(4) |
|
46,592 |
56,163 |
50,638 |
55,644 |
||||||
|
|
5,594,994 |
|
|
5,449,262 |
|
|
5,352,339 |
|
|
5,261,270 |
Unamortized loan fees and costs |
|
10,733 |
10,082 |
8,800 |
6,304 |
||||||
Total loans, including unamortized fees and costs |
$ |
5,605,727 |
$ |
5,459,344 |
$ |
5,361,139 |
$ |
5,267,574 |
|
|
|
|
|
|
|
|
|
|
|
|
Small business portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
SBL, including unamortized fees and costs |
$ |
860,226 |
$ |
816,151 |
$ |
776,867 |
|
$ |
673,667 |
||
SBL, included in loans, at fair value |
|
104,146 |
109,131 |
119,287 |
|
|
134,131 |
||||
Total small business loans(5) |
$ |
964,372 |
$ |
925,282 |
$ |
896,154 |
|
$ |
807,798 |
(1) SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At |
(2) In 2020 The Bancorp began originating loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value (“LTV”) ratios of 70% of the business enterprise value based on a third-party valuation, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. |
(3) Consumer fintech loans consist primarily of secured credit card loans. |
(4) Includes demand deposit overdrafts reclassified as loan balances totaling |
(5) The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated. |
|
|
|
|
Small business loans as of |
|
|
|
|
|
Loan principal |
|
|
|
(Dollars in millions) |
|
|
|
$ |
400 |
PPP loans(1) |
|
|
2 |
Commercial mortgage SBA(2) |
|
|
336 |
Construction SBA(3) |
|
|
14 |
Non-guaranteed portion of |
|
|
117 |
Non-SBA SBLs |
|
|
56 |
Other(5) |
|
|
28 |
Total principal |
|
$ |
953 |
Unamortized fees and costs |
|
|
11 |
Total SBLs |
|
$ |
964 |
(1) Includes the portion of SBA 7(a) Program loans and PPP loans which have been guaranteed by the |
(2) Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50-60%, to which The Bancorp adheres. |
(3) Includes |
(4) Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the |
(5) Comprised of |
Small business loans by type as of |
|||||||||||||||
(Excludes government guaranteed portion of SBA 7(a) Program and PPP loans) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL commercial mortgage(1) |
|
SBL construction(1) |
|
SBL non-real estate |
|
Total |
|
|
% Total |
||||
|
|
|
(Dollars in millions) |
||||||||||||
Hotels and motels |
|
$ |
76 |
|
$ |
— |
|
$ |
— |
|
$ |
76 |
|
|
15% |
Funeral homes and funeral services |
|
|
22 |
|
|
— |
|
|
25 |
|
|
47 |
|
|
9% |
Full-service restaurants |
|
|
29 |
|
|
5 |
|
|
2 |
|
|
36 |
|
|
7% |
Child day care services |
|
|
23 |
|
|
1 |
|
|
2 |
|
|
26 |
|
|
5% |
Car washes |
|
|
17 |
|
|
1 |
|
|
— |
|
|
18 |
|
|
3% |
General line grocery merchant wholesalers |
|
|
17 |
|
|
— |
|
|
— |
|
|
17 |
|
|
3% |
Homes for the elderly |
|
|
16 |
|
|
— |
|
|
— |
|
|
16 |
|
|
3% |
Outpatient mental health and substance abuse centers |
|
|
15 |
|
|
— |
|
|
— |
|
|
15 |
|
|
3% |
Gasoline stations with convenience stores |
|
|
15 |
|
|
— |
|
|
— |
|
|
15 |
|
|
3% |
Fitness and recreational sports centers |
|
|
8 |
|
|
— |
|
|
2 |
|
|
10 |
|
|
2% |
Nursing care facilities |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
|
2% |
Lawyer's office |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
|
2% |
Limited-service restaurants |
|
|
4 |
|
|
1 |
|
|
3 |
|
|
8 |
|
|
2% |
Caterers |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
1% |
All other specialty trade contractors |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
1% |
General warehousing and storage |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
1% |
Plumbing, heating, and air-conditioning contractors |
|
|
5 |
|
|
— |
|
|
1 |
|
|
6 |
|
|
1% |
Other accounting services |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
Offices of real estate agents and brokers |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
Other miscellaneous durable goods merchant |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
Other technical and trade schools |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
Packaged frozen food merchant wholesalers |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
Lessors of nonresidential buildings (except miniwarehouses) |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
All other amusement and recreation industries |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
|
|
1% |
Other(2) |
|
|
122 |
|
|
10 |
|
|
29 |
|
|
161 |
|
|
30% |
Total |
|
$ |
441 |
|
$ |
18 |
|
$ |
64 |
|
$ |
523 |
|
|
100% |
(1) Of the SBL commercial mortgage and SBL construction loans, |
(2) Loan types of less than |
State diversification as of |
|||||||||||||||
(Excludes government guaranteed portion of SBA 7(a) Program loans and PPP loans) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL commercial mortgage(1) |
|
SBL construction(1) |
|
SBL non-real estate |
|
Total |
|
|
% Total |
||||
|
|
|
(Dollars in millions) |
||||||||||||
|
|
$ |
117 |
|
$ |
3 |
|
$ |
5 |
|
$ |
125 |
|
|
24% |
|
|
|
76 |
|
|
4 |
|
|
3 |
|
|
83 |
|
|
16% |
|
|
|
38 |
|
|
1 |
|
|
5 |
|
|
44 |
|
|
8% |
|
|
|
21 |
|
|
— |
|
|
14 |
|
|
35 |
|
|
7% |
|
|
|
28 |
|
|
2 |
|
|
2 |
|
|
32 |
|
|
6% |
|
|
|
22 |
|
|
2 |
|
|
6 |
|
|
30 |
|
|
6% |
|
|
|
26 |
|
|
1 |
|
|
1 |
|
|
28 |
|
|
5% |
|
|
|
21 |
|
|
3 |
|
|
3 |
|
|
27 |
|
|
5% |
Other States |
|
|
92 |
|
|
2 |
|
|
25 |
|
|
119 |
|
|
23% |
Total |
|
$ |
441 |
|
$ |
18 |
|
$ |
64 |
|
$ |
523 |
|
|
100% |
(1) Of the SBL commercial mortgage and SBL construction loans, |
Top 10 loans as of |
||||||
|
|
|
|
|
|
|
Type(1) |
|
State |
|
SBL commercial mortgage |
|
|
|
|
(Dollars in millions) |
||||
General line grocery merchant wholesalers |
|
CA |
|
$ |
13 |
|
Funeral homes and funeral services |
|
PA |
|
|
13 |
|
Outpatient mental health and substance abuse center |
|
FL |
|
|
10 |
|
Funeral homes and funeral services |
|
ME |
|
|
9 |
|
Hotel |
|
FL |
|
|
8 |
|
Lawyer's office |
|
CA |
|
|
8 |
|
Hotel |
|
NC |
|
|
7 |
|
General warehousing and storage |
|
PA |
|
|
6 |
|
Hotel |
|
FL |
|
|
6 |
|
Hotel |
|
NY |
|
|
6 |
|
Total |
|
|
|
$ |
86 |
|
(1) The table above does not include loans to the extent that they are |
Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:
Type as of |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Type |
|
|
# Loans |
|
|
Balance |
|
Weighted average origination date LTV |
|
Weighted average interest rate |
|
|
|
(Dollars in millions) |
|||||||
Real estate bridge loans (multifamily apartment loans recorded at amortized cost)(1) |
|
|
160 |
|
$ |
2,119 |
|
70% |
|
9.19% |
|
|
|
|
|
|
|
|
|
|
|
Non-SBA commercial real estate loans, at fair value: |
|
|
|
|
|
|
|
|
|
|
Multifamily (apartment bridge loans)(1) |
|
|
7 |
|
$ |
116 |
|
76% |
|
9.20% |
Hospitality (hotels and lodging) |
|
|
2 |
|
|
27 |
|
65% |
|
9.82% |
Retail |
|
|
2 |
|
|
12 |
|
72% |
|
8.19% |
Other |
|
|
2 |
|
|
9 |
|
73% |
|
5.10% |
|
|
|
13 |
|
|
164 |
|
74% |
|
9.18% |
Fair value adjustment |
|
|
|
|
|
(3) |
|
|
|
|
Total non-SBA commercial real estate loans, at fair value |
|
|
|
|
|
161 |
|
|
|
|
Total commercial real estate loans |
|
|
|
|
$ |
2,280 |
|
70% |
|
9.19% |
(1) In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale, but are now being retained on the balance sheet. In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third party appraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 61%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State diversification as of |
|
|
15 largest loans as of |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
Balance |
|
|
Origination date LTV |
|
|
State |
|
|
|
Balance |
|
Origination date LTV |
(Dollars in millions) |
|
|
(Dollars in millions) |
||||||||||||
|
|
$ |
778 |
|
|
71% |
|
|
|
|
|
$ |
47 |
|
72% |
|
|
|
259 |
|
|
69% |
|
|
|
|
|
|
46 |
|
75% |
|
|
|
245 |
|
|
69% |
|
|
|
|
|
|
40 |
|
72% |
|
|
|
132 |
|
|
68% |
|
|
|
|
|
|
38 |
|
62% |
|
|
|
105 |
|
|
70% |
|
|
|
|
|
|
37 |
|
80% |
|
|
|
73 |
|
|
67% |
|
|
|
|
|
|
36 |
|
67% |
|
|
|
71 |
|
|
68% |
|
|
|
|
|
|
35 |
|
72% |
Other States each < |
|
|
617 |
|
|
71% |
|
|
|
|
|
|
34 |
|
63% |
Total |
|
$ |
2,280 |
|
|
70% |
|
|
|
|
|
|
34 |
|
76% |
|
|
|
|
|
|
|
|
|
|
|
|
|
33 |
|
62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
|
62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
|
79% |
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
78% |
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
77% |
|
|
|
|
|
|
|
|
|
|
|
|
|
29 |
|
66% |
|
|
|
|
|
|
|
|
|
15 largest commercial real estate loans |
|
|
$ |
535 |
|
71% |
Institutional banking loans outstanding at |
||||
Type |
Principal |
|
% of total |
|
|
|
(Dollars in millions) |
|
|
SBLOC |
$ |
975 |
|
54% |
IBLOC |
|
583 |
|
32% |
Advisor financing |
|
239 |
|
14% |
Total |
$ |
1,797 |
|
100% |
For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOCs generally has been less, for two reasons. First, many collateral accounts are “balanced” and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.
Top 10 SBLOC loans at |
|
|
|
|
|
Principal amount |
|
% Principal to collateral |
|
|
(Dollars in millions) |
|||
|
$ |
11 |
|
17% |
|
|
9 |
|
48% |
|
|
8 |
|
36% |
|
|
8 |
|
68% |
|
|
8 |
|
65% |
|
|
8 |
|
80% |
|
|
8 |
|
24% |
|
|
8 |
|
34% |
|
|
7 |
|
22% |
|
|
7 |
|
44% |
Total and weighted average |
$ |
82 |
|
43% |
Insurance backed lines of credit (IBLOC)
IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, fifteen insurance companies have been approved and, as of
Direct lease financing by type as of |
|
|
|
|
|
|
Principal balance(1) |
|
% Total |
|
|
(Dollars in millions) |
|
|
Government agencies and public institutions(2) |
$ |
129 |
|
18% |
Construction |
|
111 |
|
16% |
Waste management and remediation services |
|
98 |
|
14% |
Real estate and rental and leasing |
|
82 |
|
12% |
Health care and social assistance |
|
28 |
|
4% |
Other services (except public administration) |
|
23 |
|
3% |
Professional, scientific, and technical services |
|
23 |
|
3% |
General freight trucking |
|
21 |
|
3% |
Finance and insurance |
|
13 |
|
2% |
Transit and other transportation |
|
13 |
|
2% |
Wholesale trade |
|
10 |
|
1% |
Educational services |
|
7 |
|
1% |
Other |
|
153 |
|
21% |
Total |
$ |
711 |
|
100% |
(1) Of the total |
(2) Includes public universities and school districts. |
Direct lease financing by state as of |
|
|
|
|
State |
|
Principal balance |
|
% Total |
|
|
(Dollars in millions) |
|
|
|
$ |
106 |
|
15% |
|
|
66 |
|
9% |
|
|
60 |
|
8% |
|
|
52 |
|
7% |
|
|
43 |
|
6% |
|
|
41 |
|
6% |
|
|
39 |
|
5% |
|
|
36 |
|
5% |
|
|
34 |
|
5% |
|
|
28 |
|
4% |
|
|
18 |
|
3% |
|
|
15 |
|
2% |
|
|
15 |
|
2% |
|
|
13 |
|
2% |
|
|
12 |
|
2% |
Other States |
|
133 |
|
19% |
Total |
$ |
711 |
|
100% |
|
|
|
|
|
|
|
|
Capital ratios |
Tier 1 capital |
|
Tier 1 capital |
|
Total capital |
|
Common equity |
|
to average |
|
to risk-weighted |
|
to risk-weighted |
|
tier 1 to risk |
|
assets ratio |
|
assets ratio |
|
assets ratio |
|
weighted assets |
As of |
|
|
|
|
|
|
|
|
10.07% |
|
14.13% |
|
14.68% |
|
14.13% |
|
11.21% |
|
15.69% |
|
16.24% |
|
15.69% |
"Well capitalized" institution (under federal regulations-Basel III) |
5.00% |
|
8.00% |
|
10.00% |
|
6.50% |
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
|
|
11.19% |
|
15.66% |
|
16.23% |
|
15.66% |
|
12.37% |
|
17.35% |
|
17.92% |
|
17.35% |
"Well capitalized" institution (under federal regulations-Basel III) |
5.00% |
|
8.00% |
|
10.00% |
|
6.50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
||||||||
|
|
|
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Selected operating ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(1) |
|
2.77% |
|
|
2.65% |
|
|
2.86% |
|
|
2.64% |
Return on average equity(1) |
|
27.10% |
|
|
26.67% |
|
|
27.95% |
|
|
27.42% |
Net interest margin |
|
4.97% |
|
|
4.83% |
|
|
5.06% |
|
|
4.75% |
(1) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share table |
|
|
|
|
|
|
|
|
|||
|
2024 |
|
2024 |
|
2023 |
|
2023 |
||||
Book value per share |
$ |
15.77 |
|
$ |
15.63 |
|
$ |
15.17 |
|
$ |
13.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan delinquency and other real estate owned |
|
|||||||||||||||||||
|
30-59 days |
|
60-89 days |
|
90+ days |
|
|
|
|
Total |
|
|
|
|
Total |
|||||
|
past due |
|
past due |
|
still accruing |
|
Non-accrual |
|
past due |
|
Current |
|
loans |
|||||||
SBL non-real estate |
$ |
78 |
|
$ |
311 |
|
$ |
764 |
|
$ |
2,448 |
|
$ |
3,601 |
|
$ |
168,292 |
|
$ |
171,893 |
SBL commercial mortgage |
|
— |
|
|
336 |
|
|
— |
|
|
5,211 |
|
|
5,547 |
|
|
642,347 |
|
|
647,894 |
SBL construction |
|
— |
|
|
— |
|
|
— |
|
|
3,385 |
|
|
3,385 |
|
|
27,496 |
|
|
30,881 |
Direct lease financing |
|
4,575 |
|
|
4,415 |
|
|
2,224 |
|
|
3,870 |
|
|
15,084 |
|
|
696,319 |
|
|
711,403 |
SBLOC / IBLOC |
|
12,448 |
|
|
2,101 |
|
|
1,284 |
|
|
— |
|
|
15,833 |
|
|
1,542,262 |
|
|
1,558,095 |
Advisor financing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
238,831 |
|
|
238,831 |
Real estate bridge loans(1) |
|
— |
|
|
12,300 |
|
|
— |
|
|
— |
|
|
12,300 |
|
|
2,107,024 |
|
|
2,119,324 |
Consumer fintech |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
70,081 |
|
|
70,081 |
Other loans |
|
96 |
|
|
— |
|
|
4 |
|
|
— |
|
|
100 |
|
|
46,492 |
|
|
46,592 |
Unamortized loan fees and costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10,733 |
|
|
10,733 |
|
$ |
17,197 |
|
$ |
19,463 |
|
$ |
4,276 |
|
$ |
14,914 |
|
$ |
55,850 |
|
$ |
5,549,877 |
|
$ |
5,605,727 |
(1) The |
Other real estate owned year to date activity |
||
|
|
|
|
|
|
Beginning balance |
$ |
16,949 |
Transfer from loans, net |
|
40,032 |
Transfer from commercial loans, at fair value |
|
880 |
Ending balance |
$ |
57,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
(Dollars in thousands) |
|||||||||
Asset quality ratios: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans(1) |
|
0.34% |
|
|
1.05% |
|
|
0.25% |
|
|
0.28% |
Nonperforming assets to total assets(1) |
|
0.95% |
|
|
0.97% |
|
|
0.39% |
|
|
0.47% |
Allowance for credit losses to total loans |
|
0.51% |
|
|
0.53% |
|
|
0.51% |
|
|
0.44% |
(1) In the first quarter of 2024, a |
(2) Borrowers for a |
|
|
|
|
|
|
|
|
|
|
|
|
Gross dollar volume (GDV)(1) |
Three months ended |
||||||||||
|
|
|
|
|
|
|
|
||||
|
2024 |
|
2024 |
|
2023 |
|
2023 |
||||
|
|
(Dollars in thousands) |
|||||||||
Prepaid and debit card GDV |
$ |
37,139,200 |
|
$ |
37,943,338 |
|
$ |
33,292,350 |
|
$ |
32,776,154 |
(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by |
Business line quarterly summary |
||||||||||||||
Quarter ended |
||||||||||||||
(Dollars in millions) |
||||||||||||||
Balances |
||||||||||||||
% Growth |
||||||||||||||
Major business lines |
Average approximate rates(1) |
Balances(2) |
Year over year |
|
Linked quarter annualized |
|||||||||
Loans |
||||||||||||||
Institutional banking(3) |
6.8% |
$ |
1,797 |
(13%) |
3% |
|||||||||
Small business lending(4) |
7.4% |
|
964 |
16% |
17% |
|||||||||
Leasing |
8.0% |
|
711 |
8% |
5% |
|||||||||
Commercial real estate (non-SBA loans, at fair value) |
9.0% |
|
161 |
nm |
nm |
|||||||||
Real estate bridge loans (recorded at book value) |
|
9.2% |
|
|
2,119 |
|
16% |
|
3% |
|
|
|
|
|
Weighted average yield |
8.0% |
$ |
5,752 |
Non-interest income(5) |
||||||||||
% Growth |
||||||||||||||
Deposits: Fintech Solutions group |
Current quarter |
Year over year |
||||||||||||
Prepaid and debit card issuance, and other payments |
2.4% |
$ |
6,441 |
8% |
nm |
$ |
27.8 |
13% |
(1) Average rates are for the three months ended |
(2) Loan and deposit categories are based on period-end and average quarterly balances, respectively. |
(3) Institutional Banking loans are comprised of security backed lines of credit (SBLOC), collateralized by marketable securities, insurance backed lines of credit (IBLOC), collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing. |
(4) Small Business Lending is substantially comprised of SBA loans. Growth rates exclude |
(5) Growth rate excludes Q1 2023 adjustments of |
Summary of credit lines available
Notwithstanding that the vast majority of The Bancorp’s funding is comprised of insured and small balance accounts, The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
$ |
1,936,240 |
|
|
1,116,765 |
Total lines of credit available |
$ |
3,053,005 |
Estimated insured vs uninsured deposits
The vast majority of The Bancorp’s deposits are insured and low balance and accordingly do not constitute the liquidity risk experienced by certain institutions. Accordingly, the deposit base is comprised as follows.
|
|
|
|
|
|
Insured |
|
93% |
Low balance accounts |
|
4% |
Other uninsured |
|
3% |
Total deposits |
|
100% |
Calculation of efficiency ratio (1) |
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Three months ended |
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Year ended |
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2024 |
|
2023 |
|
2023 |
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|
(Dollars in thousands) |
|||||||
Net interest income |
$ |
93,795 |
|
$ |
87,195 |
|
$ |
354,052 |
Non-interest income |
|
30,722 |
|
|
29,336 |
|
|
112,094 |
Total revenue |
$ |
124,517 |
|
$ |
116,531 |
|
$ |
466,146 |
Non-interest expense |
$ |
51,446 |
|
$ |
49,943 |
|
$ |
191,042 |
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
41% |
|
|
43% |
|
|
41% |
(1) The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723377870/en/
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Source: