The Bancorp, Inc. Reports First Quarter 2022 Financial Results

The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the first quarter of 2022.

Highlights

  • For the quarter ended March 31, 2022, The Bancorp earned net income of $29.0 million, or $0.50 diluted earnings per share, compared to net income of $26.0 million, or $0.44 diluted earnings per share for the quarter ended March 31, 2021.
  • Return on assets and equity for the quarter ended March 31, 2022 amounted to 1.7% and 18%, respectively, compared to 1.6% and 18%, respectively, for the quarter ended March 31, 2021 (all percentages “annualized”).
  • Net interest margin amounted to 3.12% for the quarter ended March 31, 2022, compared to 3.34% for the quarter ended March 31, 2021.
  • Net interest income was $52.9 million for the quarter ended March 31, 2022 compared to $53.8 million for the quarter ended March 31, 2021. In the first quarter of 2022, growth in net interest income was significantly offset by a $3.4 million reduction in Payroll Protection Program (“PPP”) related interest and fees.
  • Excluding commercial loans, at fair value, which were originally generated for sale, total loans increased to $4.16 billion at March 31, 2022, compared to $3.75 billion at December 31, 2021 and $2.83 billion at March 31, 2021.  Those increases reflected growth of 10% quarter over quarter and 45% year over year. Those percentage increases exclude the impact of $56.1 million of discontinued loans previously included in discontinued assets which were reclassified to loans in the first quarter of 2022.
  • Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $469.7 million, or 2%, to $28.56 billion for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021, which included the impact of COVID-19 related stimulus payments.
  • SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and investment advisor financing loans collectively increased 32% year over year and 8% quarter over quarter to $2.21 billion at March 31, 2022.
  • Small Business Loans, including those held at fair value, grew 2% year over year to $705.2 million at March 31, 2022. That growth is exclusive of PPP loan balances of $23.7 million and $190.3 million, respectively, at March 31, 2022 and March 31, 2021.
  • Direct lease financing balances increased 11% year over year to $538.6 million at March 31, 2022.
  • We resumed non-SBA commercial real estate bridge lending in the third quarter of 2021. At March 31, 2022 the balance of such real estate bridge loans was $803.5 million compared to $621.7 million at December 31, 2021, reflecting quarter over quarter growth of 29%.
  • The average interest rate on $6.22 billion of average deposits and interest-bearing liabilities during the first quarter of 2022 was 0.19%. Average deposits of $6.11 billion for first quarter 2022, reflected an increase of 3% from the $5.91 billion of average deposits for the quarter ended March 31, 2021, which included the impact of COVID-19 related stimulus payments.
  • As of March 31, 2022, tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 to risk-weighted assets ratios were 9.47%, 14.15%, 14.56% and 14.15%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp and The Bank each remain well capitalized under banking regulations.
  • Book value per common share at March 31, 2022 was $11.41 per share compared to $10.42 per share at March 31, 2021, an increase of 10%, primarily as a result of retained earnings.
  • The Bancorp repurchased 527,393 shares of its common stock at an average cost of $28.44 per share during the quarter ended March 31, 2022.

“We got off to a great start in 2022,” said The Bancorp CEO and President Damian Kozlowski. “Our first quarter highlighted the continued progress we are making in building our Fintech franchise as we were able to show gains in GDV even with significant headwinds due to government stimulus in 2021. Additionally, we reaffirm our 2022 guidance of $2.15 per share, which excludes the net impact of planned stock repurchases.”

The Bancorp reported net income of $29.0 million, or $0.50 per diluted share, for the quarter ended March 31, 2022, compared to net income of $26.0 million, or $0.44 per diluted share, for the quarter ended March 31, 2021.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, April 29, 2022 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or you may dial 844.775.2543, access code 6984967. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, May 6, 2022 by dialing 855.859.2056, access code 6984967.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, provides non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S. in June 2021, a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. As evidence of its company-wide commitment to excellence, The Bancorp has also been ranked in October 2020 as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer in March 2021 by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600 in May 2021. For more about The Bancorp, visit https://thebancorp.com/.

Forward-Looking Statements

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

The Bancorp, Inc.

Financial highlights

 

 

Three months ended

 

Year ended

 

March 31,

 

December 31,

Consolidated condensed income statements

2022 (unaudited)

 

2021 (unaudited)

 

2021

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Net interest income

$

52,853

 

$

53,757

 

 

$

210,876

Provision for credit losses

 

1,507

 

 

822

 

 

 

3,110

Non-interest income

 

 

 

 

 

 

 

 

ACH, card and other payment processing fees

 

1,984

 

 

1,796

 

 

 

7,526

Prepaid, debit card and related fees

 

18,652

 

 

19,208

 

 

 

74,654

Net realized and unrealized gains on commercial

 

 

 

 

 

 

 

 

loans, at fair value

 

3,383

 

 

1,996

 

 

 

14,885

Leasing related income

 

973

 

 

965

 

 

 

6,457

Other non-interest income

 

120

 

 

109

 

 

 

1,227

Total non-interest income

 

25,112

 

 

24,074

 

 

 

104,749

Non-interest expense

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

23,848

 

 

25,658

 

 

 

105,998

Data processing expense

 

1,189

 

 

1,126

 

 

 

4,664

Legal expense

 

794

 

 

2,054

 

 

 

6,848

FDIC insurance

 

974

 

 

2,380

 

 

 

5,586

Software

 

3,864

 

 

3,684

 

 

 

15,659

Other non-interest expense

 

7,683

 

 

6,981

 

 

 

29,595

Total non-interest expense

 

38,352

 

 

41,883

 

 

 

168,350

Income from continuing operations before income taxes

 

38,106

 

 

35,126

 

 

 

144,165

Income tax expense

 

9,140

 

 

9,066

 

 

 

33,724

Net income from continuing operations

 

28,966

 

 

26,060

 

 

 

110,441

Discontinued operations

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations before income taxes

 

 

 

(124

)

 

 

288

Income tax (benefit) expense

 

 

 

(29

)

 

 

76

Net (loss) income from discontinued operations, net of tax

 

 

 

(95

)

 

 

212

Net income

$

28,966

 

$

25,965

 

 

$

110,653

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - basic

$

0.51

 

$

0.45

 

 

$

1.93

Net income (loss) per share from discontinued operations - basic

$

 

$

 

 

$

Net income per share - basic

$

0.51

 

$

0.45

 

 

$

1.93

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - diluted

$

0.50

 

$

0.44

 

 

$

1.88

Net income (loss) per share from discontinued operations - diluted

$

 

$

 

 

$

Net income per share - diluted

$

0.50

 

$

0.44

 

 

$

1.88

Weighted average shares - basic

 

57,115,903

 

 

57,372,337

 

 

 

57,190,311

Weighted average shares - diluted

 

58,095,980

 

 

59,294,081

 

 

 

58,830,437

Note: Compared to higher rates in recent periods, the effective tax rate for the three months ended March 31, 2022 approximated 24% as a result of the impact of tax deductions related to stock-based compensation, recorded as discrete items. The large deductions and tax benefits resulted from the increase in the Company’s stock price as compared to the original grant date.

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated balance sheets

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2022 (unaudited)

 

2021

 

2021 (unaudited)

 

2021 (unaudited)

 

 

(in thousands, except share data)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

11,399

 

 

$

5,382

 

 

$

6,687

 

 

$

7,838

 

Interest earning deposits at Federal Reserve Bank

 

662,827

 

 

 

596,402

 

 

 

310,642

 

 

 

1,738,749

 

Total cash and cash equivalents

 

674,226

 

 

 

601,784

 

 

 

317,329

 

 

 

1,746,587

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

907,338

 

 

 

953,709

 

 

 

1,054,223

 

 

 

1,128,459

 

Commercial loans, at fair value

 

1,180,885

 

 

 

1,388,416

 

 

 

1,615,312

 

 

 

1,851,724

 

Loans, net of deferred fees and costs

 

4,164,298

 

 

 

3,747,224

 

 

 

3,136,662

 

 

 

2,827,076

 

Allowance for credit losses

 

(19,051

)

 

 

(17,806

)

 

 

(16,159

)

 

 

(16,419

)

Loans, net

 

4,145,247

 

 

 

3,729,418

 

 

 

3,120,503

 

 

 

2,810,657

 

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

 

1,663

 

 

 

1,663

 

 

 

1,663

 

 

 

1,368

 

Premises and equipment, net

 

16,314

 

 

 

16,156

 

 

 

16,602

 

 

 

17,196

 

Accrued interest receivable

 

17,284

 

 

 

17,871

 

 

 

17,180

 

 

 

20,164

 

Intangible assets, net

 

2,348

 

 

 

2,447

 

 

 

2,547

 

 

 

2,746

 

Other real estate owned

 

18,873

 

 

 

18,873

 

 

 

19,488

 

 

 

17,343

 

Deferred tax asset, net

 

18,521

 

 

 

12,667

 

 

 

12,237

 

 

 

10,900

 

Investment in unconsolidated entity, at fair value

 

 

 

 

 

 

 

 

 

 

31,047

 

Assets held-for-sale from discontinued operations

 

 

 

 

3,268

 

 

 

5,274

 

 

 

18,620

 

Other assets

 

99,961

 

 

 

96,967

 

 

 

86,105

 

 

 

90,530

 

Total assets

$

7,082,660

 

 

$

6,843,239

 

 

$

6,268,463

 

 

$

7,747,341

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,506,083

 

 

$

5,561,365

 

 

$

4,734,352

 

 

$

6,231,220

 

Savings and money market

 

722,240

 

 

 

415,546

 

 

 

378,160

 

 

 

690,281

 

Total deposits

 

6,228,323

 

 

 

5,976,911

 

 

 

5,112,512

 

 

 

6,921,501

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

42

 

 

 

42

 

 

 

42

 

 

 

42

 

Short-term borrowings

 

 

 

 

 

 

 

300,000

 

 

 

 

Senior debt

 

98,774

 

 

 

98,682

 

 

 

98,590

 

 

 

98,406

 

Subordinated debenture

 

13,401

 

 

 

13,401

 

 

 

13,401

 

 

 

13,401

 

Other long-term borrowings

 

39,318

 

 

 

39,521

 

 

 

39,715

 

 

 

40,085

 

Other liabilities

 

50,507

 

 

 

62,228

 

 

 

66,226

 

 

 

77,142

 

Total liabilities

$

6,430,365

 

 

$

6,190,785

 

 

$

5,630,486

 

 

$

7,150,577

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock - authorized, 75,000,000 shares of $1.00 par value; 57,155,028 and 57,247,913 shares issued and outstanding at March 31, 2022 and 2021, respectively

 

57,155

 

 

 

57,371

 

 

 

57,331

 

 

 

57,248

 

Additional paid-in capital

 

336,604

 

 

 

349,686

 

 

 

357,528

 

 

 

370,481

 

Retained earnings

 

268,072

 

 

 

239,106

 

 

 

212,114

 

 

 

154,418

 

Accumulated other comprehensive (loss) income

 

(9,536

)

 

 

6,291

 

 

 

11,004

 

 

 

14,617

 

Total shareholders' equity

 

652,295

 

 

 

652,454

 

 

 

637,977

 

 

 

596,764

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

7,082,660

 

 

$

6,843,239

 

 

$

6,268,463

 

 

$

7,747,341

 

Note: Previous balance sheets included assets held-for-sale from discontinued operations, which were reclassified to continuing operations in the first quarter of 2022. Previous balance sheets also included investment in unconsolidated entity, which reflected Bancorp’s balance of the Walnut Street investment. Walnut Street was comprised of Bancorp loans sold to that entity, which was partially financed by an independent investor. In the third quarter of 2021, The Bancorp and that investor dissolved the entity, as the remaining balance did not warrant ongoing administrative and accounting expenses. As a result of the dissolution, the investment in unconsolidated entity, which had a June 30, 2021 balance of $25.0 million, was reclassified as follows: approximately $22.9 million of loans were reclassified to commercial loans, at fair value and $2.1 million was reclassified to other real estate owned, as those assets continue to be reported at fair value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

 

Three months ended March 31, 2022

 

 

Three months ended March 31, 2021

 

 

(dollars in thousands; unaudited)

 

 

Average

 

 

 

 

 

Average

 

 

Average

 

 

 

 

Average

Assets:

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs**

$

5,136,377

 

 

$

50,508

 

 

3.93

%

 

$

4,476,617

 

 

$

47,811

 

4.27

%

Leases-bank qualified*

 

4,015

 

 

 

105

 

 

10.46

%

 

 

6,982

 

 

 

118

 

6.76

%

Investment securities-taxable

 

939,511

 

 

 

4,891

 

 

2.08

%

 

 

1,193,009

 

 

 

8,808

 

2.95

%

Investment securities-nontaxable*

 

3,559

 

 

 

32

 

 

3.60

%

 

 

4,042

 

 

 

35

 

3.46

%

Interest earning deposits at Federal Reserve Bank

 

686,614

 

 

 

347

 

 

0.20

%

 

 

747,845

 

 

 

183

 

0.10

%

Net interest earning assets

 

6,770,076

 

 

 

55,883

 

 

3.30

%

 

 

6,428,495

 

 

 

56,955

 

3.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(17,810

)

 

 

 

 

 

 

 

 

(16,069

)

 

 

 

 

 

Assets held-for-sale from discontinued operations

 

 

 

 

 

 

 

 

 

109,128

 

 

 

853

 

3.13

%

Other assets

 

224,312

 

 

 

 

 

 

 

 

 

214,171

 

 

 

 

 

 

 

$

6,976,578

 

 

 

 

 

 

 

 

$

6,735,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,575,228

 

 

$

1,406

 

 

0.10

%

 

$

5,501,697

 

 

$

1,617

 

0.12

%

Savings and money market

 

532,047

 

 

 

200

 

 

0.15

%

 

 

407,186

 

 

 

149

 

0.15

%

Total deposits

 

6,107,275

 

 

 

1,606

 

 

0.11

%

 

 

5,908,883

 

 

 

1,766

 

0.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

555

 

 

 

 

 

 

 

 

13,055

 

 

 

8

 

0.25

%

Repurchase agreements

 

41

 

 

 

 

 

 

 

 

41

 

 

 

 

 

Subordinated debentures

 

13,401

 

 

 

116

 

 

3.46

%

 

 

13,401

 

 

 

113

 

3.37

%

Senior debt

 

98,724

 

 

 

1,279

 

 

5.18

%

 

 

100,140

 

 

 

1,279

 

5.11

%

Total deposits and liabilities

 

6,219,996

 

 

 

3,001

 

 

0.19

%

 

 

6,035,520

 

 

 

3,166

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

104,207

 

 

 

 

 

 

 

 

 

111,241

 

 

 

 

 

 

Total liabilities

 

6,324,203

 

 

 

 

 

 

 

 

 

6,146,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

652,375

 

 

 

 

 

 

 

 

 

588,964

 

 

 

 

 

 

 

$

6,976,578

 

 

 

 

 

 

 

 

$

6,735,725

 

 

 

 

 

 

Net interest income on tax equivalent basis*

 

 

 

$

52,882

 

 

 

 

 

 

 

$

54,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

29

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

52,853

 

 

 

 

 

 

 

$

54,610

 

 

Net interest margin *

 

 

 

 

 

 

 

3.12

%

 

 

 

 

 

 

 

3.34

%

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.

** Includes commercial loans, at fair value. All periods include non-accrual loans.

 

NOTE: In the table above, the 2021 interest on loans reflects $1.4 million of interest and fees which were earned on a short-term line of credit to another institution to initially fund Payroll Protection Program (“PPP”) loans, which did not significantly increase average loans or assets, and which are not expected to recur. Interest on loans for 2022 and 2021 includes $440,000 and $2.4 million, respectively, of interest and fees on PPP loans.

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

Three months ended

 

Year ended

 

March 31,

 

March 31,

 

December 31,

 

2022 (unaudited)

 

2021 (unaudited)

 

2021

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

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

$

17,806

 

 

$

16,082

 

 

$

16,082

 

 

 

 

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

 

 

 

SBA non-real estate

 

98

 

 

 

144

 

 

 

1,138

 

SBA commercial mortgage

 

 

 

 

 

 

 

417

 

Direct lease financing

 

191

 

 

 

97

 

 

 

412

 

SBLOC

 

 

 

 

15

 

 

 

15

 

Consumer - home equity

 

 

 

 

 

 

 

10

 

Consumer - other

 

 

 

 

 

 

 

14

 

Total

 

289

 

 

 

256

 

 

 

2,006

 

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

SBA non-real estate

 

12

 

 

 

4

 

 

 

51

 

SBA commercial mortgage

 

 

 

 

 

 

 

9

 

Direct lease financing

 

19

 

 

 

2

 

 

 

58

 

Consumer - home equity

 

 

 

 

 

 

 

1,099

 

Total

 

31

 

 

 

6

 

 

 

1,217

 

Net charge-offs

 

258

 

 

 

250

 

 

 

789

 

Provision credited to allowance, excluding commitment provision

 

1,503

 

 

 

587

 

 

 

2,513

 

 

 

 

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

19,051

 

 

$

16,419

 

 

$

17,806

 

Net charge-offs/average loans

 

0.01

%

 

 

0.01

%

 

 

0.03

%

Net charge-offs/average assets

 

 

 

 

 

 

 

0.01

%

(1) Excludes activity from discontinued operations.

 

Loan portfolio

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2022

 

2021

 

2021

 

2021

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

122,387

 

$

147,722

 

$

171,845

 

$

305,446

SBL commercial mortgage

 

385,559

 

 

361,171

 

 

367,272

 

 

320,013

SBL construction

 

31,432

 

 

27,199

 

 

23,117

 

 

20,692

Small business loans

 

539,378

 

 

536,092

 

 

562,234

 

 

646,151

Direct lease financing

 

538,616

 

 

531,012

 

 

514,068

 

 

484,316

SBLOC / IBLOC *

 

2,067,233

 

 

1,929,581

 

 

1,834,523

 

 

1,622,359

Advisor financing **

 

146,461

 

 

115,770

 

 

81,143

 

 

58,919

Real estate bridge loans

 

803,477

 

 

621,702

 

 

128,699

 

 

Other loans ***

 

61,096

 

 

5,014

 

 

4,917

 

 

6,452

 

 

4,156,261

 

 

3,739,171

 

 

3,125,584

 

 

2,818,197

Unamortized loan fees and costs

 

8,037

 

 

8,053

 

 

11,078

 

 

8,879

Total loans, net of unamortized fees and costs

$

4,164,298

 

$

3,747,224

 

$

3,136,662

 

$

2,827,076

 

 

Small business portfolio

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2022

 

2021

 

2021

 

2021

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

545,462

 

$

541,437

 

$

566,472

 

$

647,445

SBL, included in commercial loans, at fair value

 

183,408

 

 

199,585

 

 

214,301

 

 

234,908

Total small business loans ****

$

728,870

 

$

741,022

 

$

780,773

 

$

882,353

* Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of eligible life insurance policies.

** In 2020, we began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70%, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.

*** Included in the table above under Other loans are demand deposit overdrafts reclassified as loan balances totaling $310,000 and $322,000 at March 31, 2022 and December 31, 2021, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.

**** The preceding table shows small business loans and small business loans held at fair value. The small business loans held at fair value are comprised of the government guaranteed portion of certain SBA loans at the dates indicated (in thousands). A reduction in SBL non-real estate from $147.7 million to $122.4 million in the first quarter of 2022 resulted from U.S. government repayments of $21.1 million of PPP loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $23.7 million at March 31, 2022 and $190.3 million at March 31, 2021, respectively.

Small business loans as of March 31, 2022 

 

 

 

 

 

 

 

 

 

Loan principal

 

 

(in millions)

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

 

$

369

Paycheck Protection Program loans (PPP) (a)

 

 

24

Commercial mortgage SBA (b)

 

 

191

Construction SBA (c)

 

 

19

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

 

 

100

Non-SBA small business loans (e)

 

 

17

Total principal

 

$

720

Unamortized fees and costs

 

 

9

Total small business loans

 

$

729

(a) This is the portion of SBA 7a loans (7a) and PPP loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.

(b) Substantially all these loans are made under the SBA 504 Fixed Asset Financing program (504) which dictates origination date loan-to-value percentages (“LTV”), generally 50-60%, to which the Bank adheres.

(c) Of the $19 million in Construction SBA loans, $16 million are 504 first mortgages with an origination date LTV of 50-60% and $3 million are SBA interim loans with an approved SBA post-construction full takeout/payoff.

(d) The $100 million represents the unguaranteed portion of 7a loans which are 70% or more guaranteed by the U.S. government. 7a loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the collateral must be pledged to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7a and 504 loans require the personal guaranty of all 20% or greater owners.

(e) The $17 million of non-SBA loans is comprised of approximately 20 conventional coffee/doughnut/carryout franchisee note purchases. The majority of purchased notes were made to multi-unit operators, are considered seasoned and have performed as agreed.

Small business loans by type as of March 31, 2022

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

 

 

 

SBL non-real

 

 

 

 

 

mortgage*

 

SBL construction*

 

estate

 

Total

 

 

% Total

 

 

 

(in millions)

Hotels (except casino hotels) and motels

 

$

66

 

$

5

 

$

 

$

71

 

 

22

%

Full-service restaurants

 

 

13

 

 

2

 

 

2

 

 

17

 

 

5

%

Outpatient mental health and substance abuse centers

 

 

15

 

 

 

 

 

 

15

 

 

4

%

Child day care services

 

 

12

 

 

 

 

1

 

 

13

 

 

4

%

Baked goods stores

 

 

4

 

 

 

 

9

 

 

13

 

 

4

%

Car washes

 

 

10

 

 

1

 

 

 

 

11

 

 

3

%

Offices of lawyers

 

 

9

 

 

 

 

 

 

9

 

 

3

%

Assisted living facilities for the elderly

 

 

9

 

 

 

 

 

 

9

 

 

3

%

Funeral homes and funeral services

 

 

8

 

 

 

 

 

 

8

 

 

2

%

Gasoline stations with convenience stores

 

 

8

 

 

 

 

 

 

8

 

 

2

%

Lessors of nonresidential buildings (except miniwarehouses)

 

 

8

 

 

 

 

 

 

8

 

 

2

%

General warehousing and storage

 

 

7

 

 

 

 

 

 

7

 

 

2

%

Fitness and recreational sports centers

 

 

 

 

5

 

 

2

 

 

7

 

 

2

%

Limited-service restaurants

 

 

1

 

 

2

 

 

3

 

 

6

 

 

1

%

All other amusement and recreation industries

 

 

4

 

 

 

 

1

 

 

5

 

 

1

%

Other technical and trade schools

 

 

 

 

5

 

 

 

 

5

 

 

1

%

Other spectator sports

 

 

5

 

 

 

 

 

 

5

 

 

1

%

Other warehousing and storage

 

 

3

 

 

 

 

 

 

3

 

 

1

%

Plumbing, heating, and air-conditioning contractors

 

 

3

 

 

 

 

 

 

3

 

 

1

%

Offices of dentists

 

 

3

 

 

 

 

 

 

3

 

 

1

%

All other miscellaneous wood product manufacturing

 

 

3

 

 

 

 

 

 

3

 

 

1

%

Offices of physicians

 

 

3

 

 

 

 

 

 

3

 

 

1

%

Elementary and secondary schools

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Landscaping services

 

 

1

 

 

 

 

1

 

 

2

 

 

1

%

Lessors of other real estate property

 

 

2

 

 

 

 

 

 

2

 

 

1

%

All other miscellaneous general purpose machinery manufacturing

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Sewing, needlework, and piece goods stores

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Automotive body, paint, and interior repair and maintenance

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Pet care (except veterinary) services

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Amusement arcades

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Caterers

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Offices of real estate agents and brokers

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Vocational rehabilitation services

 

 

2

 

 

 

 

 

 

2

 

 

1

%

Other**

 

 

47

 

 

1

 

 

25

 

 

73

 

 

22

%

Total

 

$

262

 

$

21

 

$

44

 

$

327

 

 

100

%

* Of the SBL commercial mortgage and SBL construction loans, $73 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.

**Loan types less than $2 million are spread over a hundred different classifications such as Commercial Printing, Pet and Pet Supplies Stores, Securities Brokerage, etc.

State diversification as of March 31, 2022

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

 

 

 

SBL non-real

 

 

 

 

 

mortgage*

 

SBL construction*

 

estate

 

Total

 

 

% Total

 

 

 

(in millions)

Florida

 

$

62

 

$

 

$

5

 

$

67

 

 

21%

California

 

 

44

 

 

2

 

 

4

 

 

50

 

 

15%

North Carolina

 

 

24

 

 

7

 

 

2

 

 

33

 

 

10%

Pennsylvania

 

 

29

 

 

 

 

2

 

 

31

 

 

9%

New York

 

 

18

 

 

5

 

 

3

 

 

26

 

 

7%

Illinois

 

 

15

 

 

 

 

2

 

 

17

 

 

6%

Texas

 

 

12

 

 

 

 

4

 

 

16

 

 

5%

New Jersey

 

 

7

 

 

 

 

7

 

 

14

 

 

4%

Colorado

 

 

4

 

 

6

 

 

1

 

 

11

 

 

3%

Virginia

 

 

9

 

 

 

 

1

 

 

10

 

 

3%

Tennessee

 

 

8

 

 

 

 

 

 

8

 

 

3%

Georgia

 

 

3

 

 

 

 

1

 

 

4

 

 

2%

Ohio

 

 

4

 

 

 

 

 

 

4

 

 

1%

Michigan

 

 

3

 

 

 

 

1

 

 

4

 

 

1%

Washington

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other States

 

 

17

 

 

1

 

 

11

 

 

29

 

 

9%

Total

 

$

262

 

$

21

 

$

44

 

$

327

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $73 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.

Top 10 loans as of March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

 

Type*

State

mortgage*

 

 

 

(in millions)

Mental health and substance abuse center

 

 

FL

 

$

10

 

Hotel

 

 

FL

 

 

9

 

Lawyer's office

 

 

CA

 

 

9

 

General warehousing and storage

 

 

PA

 

 

7

 

Hotel

 

 

NC

 

 

6

 

Hotel

 

 

NY

 

 

5

 

Assisted living facility

 

 

FL

 

 

5

 

Technical and trade school

 

 

NC

 

 

5

 

Hotel

 

 

NC

 

 

5

 

Mental health and substance abuse center

 

 

PA

 

 

4

 

Total

 

 

 

 

$

65

 

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

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

Type as of March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

# Loans

 

Balance

 

Weighted

average

origination date

LTV

 

Weighted

average interest

rate

 

 

 

(dollars in millions)

Real estate bridge loans (multi-family apartment loans recorded at book value)*

 

 

74

 

$

803

 

 

74

%

 

3.99

%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Multi-family (apartment bridge loans)*

 

 

67

 

$

858

 

 

76

%

 

4.71

%

Hospitality (hotels and lodging)

 

 

9

 

 

71

 

 

65

%

 

5.68

%

Retail

 

 

5

 

 

59

 

 

71

%

 

4.28

%

Other

 

 

6

 

 

16

 

 

73

%

 

5.13

%

 

 

 

87

 

 

1,004

 

 

75

%

 

4.76

%

Fair value adjustment

 

 

 

 

 

(6

)

 

 

 

 

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

 

 

 

 

 

998

 

 

 

 

 

Total commercial real estate loans

 

 

 

 

$

1,801

 

 

75

%

 

4.43

%

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

State diversification as of March 31, 2022

 

 

15 largest loans as of March 31, 2022

 

State

 

 

Balance

 

 

Origination

date LTV

 

 

State

 

 

Balance

 

Origination

date LTV

(in millions)

 

 

(in millions)

Texas

 

$

708

 

 

76%

 

 

Texas

 

 

$

41

 

79%

Georgia

 

 

171

 

 

74%

 

 

Texas

 

 

 

39

 

75%

Ohio

 

 

123

 

 

72%

 

 

Texas

 

 

 

37

 

80%

Alabama

 

 

90

 

 

74%

 

 

Texas

 

 

 

37

 

62%

Florida

 

 

80

 

 

73%

 

 

Tennessee

 

 

 

30

 

72%

Arizona

 

 

65

 

 

68%

 

 

Missouri

 

 

 

30

 

75%

Tennessee

 

 

55

 

 

74%

 

 

Texas

 

 

 

30

 

79%

Other States each <$55 million

 

 

509

 

 

74%

 

 

Mississippi

 

 

 

29

 

77%

Total

 

$

1,801

 

 

74%

 

 

Texas

 

 

 

29

 

77%

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

28

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

27

 

77%

 

 

 

 

 

 

 

 

 

New Jersey

 

 

 

27

 

78%

 

 

 

 

 

 

 

 

 

Oklahoma

 

 

 

27

 

74%

 

 

 

 

 

 

 

 

 

Ohio

 

 

 

26

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

26

 

75%

 

 

 

 

 

 

 

 

 

15 Largest loans

 

 

$

463

 

76%

Institutional banking loans outstanding at March 31, 2022

 

 

 

 

 

 

Type

Principal

 

% of total

 

 

(in millions)

 

 

Securities backed lines of credit (SBLOC)

$

1,160

 

53%

Insurance backed lines of credit (IBLOC)

 

907

 

41%

Advisor financing

 

146

 

6%

Total

$

2,213

 

100%

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

Top 10 SBLOC loans at March 31, 2022

 

 

Principal amount

 

% Principal to

collateral

 

(in millions)

 

$

18

 

38

%

 

 

14

 

29

%

 

 

9

 

33

%

 

 

9

 

61

%

 

 

9

 

38

%

 

 

9

 

72

%

 

 

8

 

67

%

 

 

7

 

74

%

 

 

7

 

35

%

 

 

6

 

13

%

Total and weighted average

$

96

 

45

%

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 lend up to 100% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, eight insurance companies have been approved and, as of January 26, 2022, all were rated Excellent (A or better) by AM BEST.

 

Direct lease financing* by type as of March 31, 2022

 

 

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Construction

$

99

 

19%

Government agencies and public institutions**

 

82

 

15%

Waste management and remediation services

 

64

 

12%

Real estate and rental and leasing

 

56

 

10%

Retail trade

 

46

 

9%

Wholesale purchase

 

43

 

7%

Health care and social assistance

 

30

 

6%

Transportation and warehousing

 

29

 

5%

Professional, scientific, and technical services

 

19

 

4%

Wholesale trade

 

17

 

3%

Manufacturing

 

16

 

3%

Educational services

 

8

 

2%

Other

 

30

 

5%

Total

$

539

 

100%

* Of the total $539 million of direct lease financing, $477 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

** Includes public universities and school districts.

Direct lease financing by state as of March 31, 2022

 

 

 

 

 

 

State

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Florida

$

91

 

17%

Utah

 

47

 

9%

California

 

47

 

9%

New Jersey

 

39

 

7%

Pennsylvania

 

34

 

6%

New York

 

30

 

6%

North Carolina

 

25

 

5%

Maryland

 

24

 

4%

Texas

 

22

 

4%

Connecticut

 

16

 

3%

Washington

 

16

 

3%

Georgia

 

13

 

2%

Idaho

 

11

 

2%

Alabama

 

10

 

2%

Tennessee

 

10

 

2%

Other States

 

104

 

19%

Total

$

539

 

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 March 31, 2022

 

 

 

 

 

 

 

The Bancorp, Inc.

9.47%

 

14.15%

 

14.56%

 

14.15%

The Bancorp Bank

10.19%

 

15.23%

 

15.64%

 

15.23%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

As of December 31, 2021

 

 

 

 

 

 

 

The Bancorp, Inc.

10.40%

 

14.72%

 

15.13%

 

14.72%

The Bancorp Bank

10.98%

 

15.48%

 

15.88%

 

15.48%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

Three months ended

 

Year ended

 

March 31,

 

December 31,

 

2022

 

2021

 

2021

Selected operating ratios

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.68%

 

 

1.56%

 

 

1.68%

Return on average equity (1)

 

18.01%

 

 

17.88%

 

 

17.94%

Net interest margin

 

3.12%

 

 

3.34%

 

 

3.35%

(1) Annualized

Book value per share table

March 31,

 

December 31,

 

 

September 30,

 

March 31,

 

2022

 

2021

 

2021

 

2021

Book value per share

$

11.41

 

$

11.37

 

$

11.13

 

$

10.42

Loan quality table

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

March 31,

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

(dollars in thousands)

Nonperforming loans to total loans

 

0.20

%

 

 

0.10

%

 

 

0.24

%

 

 

0.49

%

Nonperforming assets to total assets

 

0.38

%

 

 

0.33

%

 

 

0.43

%

 

 

0.40

%

Allowance for credit losses to total loans

 

0.46

%

 

 

0.48

%

 

 

0.52

%

 

 

0.58

%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

3,621

 

 

$

3,161

 

 

$

6,106

 

 

$

11,961

 

Loans 90 days past due still accruing interest

 

4,597

 

 

 

461

 

 

 

1,569

 

 

 

1,762

 

Other real estate owned

 

18,873

 

 

 

18,873

 

 

 

19,488

 

 

 

17,343

 

Total nonperforming assets

$

27,091

 

 

$

22,495

 

 

$

27,163

 

 

$

31,066

 

Gross dollar volume (GDV) (1)

Three months ended

 

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2022

 

2021

 

2021

 

2021

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid and debit card GDV

$

28,564,582

 

$

24,821,576

 

$

24,392,188

 

$

28,094,930

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

Business line quarterly summary

Quarter ended March 31, 2022

(dollars in millions)

Balances

% Growth

Major business lines

Average

approximate

rates *

Balances **

Year

over year

 

Linked

quarter

annualized

Loans

Institutional banking ***

2.6%

$ 2,213

32%

33%

Small business lending****

5.0%

729

2%

5%

Leasing

5.9%

539

11%

6%

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

4.7%

998

nm

nm

Real estate bridge loans (recorded at book value)

 

4.0%

 

803

 

nm

 

nm

 

 

 

 

 

Weighted average yield

3.9%

$ 5,282

Non-interest income

% Growth

Deposits: Fintech solutions group

Current

quarter

Year over

year

Prepaid and debit card issuance, and other payments

0.1%

$ 5,465

3%

nm

$ 20.6

(2%)

* Average rates are for the quarter ended March 31, 2022.

** Loan and deposit categories are respectively based on period-end and average quarterly balances.

*** Institutional Banking loans are comprised of security backed lines of credit (SBLOC), collateralized by marketable securities, insurance backed lines of credit (IBLOC), collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.

**** Small Business Lending is substantially comprised of SBA loans. Loan growth percentages exclude short-term PPP loans.

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.