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The Bancorp, Inc. Reports Third Quarter 2021 Financial Results

The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the third quarter of 2021.

Highlights

  • For the quarter ended September 30, 2021, The Bancorp earned net income of $28.3 million, or $0.48 diluted earnings per share.
  • Return on assets and equity for the quarter ended September 30, 2021 amounted to 1.8% and 18%, respectively, compared to 1.5% and 17%, respectively, for the quarter ended September 30, 2020 (all percentages “annualized.”)
  • Net interest margin amounted to 3.35% for the quarter ended September 30, 2021, compared to 3.37% for the quarter ended September 30, 2020 and 3.19% for the quarter ended June 30, 2021.
  • Net interest income was $50.9 million for the quarter ended September 30, 2021 compared to $50.0 million for the quarter ended September 30, 2020. In third quarter 2021, growth in net interest income was significantly offset by the $1.9 million impact of loan prepayments on commercial real estate loan interest. However, net realized and unrealized gains on commercial loans increased $3.6 million in third quarter 2021 compared to third quarter 2020, which resulted primarily from fees related to those prepayments. In the third quarter of 2021, we recommenced the origination of such loans, identified as real estate bridge loans, which are intended to offset the impact of prepayments and payoffs.
  • Average loans and leases, including loans at fair value, increased 9% to $4.58 billion for the quarter ended September 30, 2021, compared to $4.21 billion for the quarter ended September 30, 2020.
  • Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $428.7 million, or 2%, to $24.4 billion for the quarter ended September 30, 2021 compared to the quarter ended September 30, 2020. GDV for the 2020 quarter included the impact of significant government stimulus resulting from the Covid-19 pandemic.
  • SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and investment advisor financing loans collectively increased 32% year over year and 6% quarter over quarter to $1.92 billion at September 30, 2021.
  • Small Business Loans, including those held at fair value, grew 12% year over year to $709.5 million at September 30, 2021. That growth and $709.5 million balance are exclusive of Paycheck Protection Program (“PPP”) loan balances of $71.3 million and $207.9 million, respectively, at September 30, 2021 and September 30, 2020.
  • Direct lease financing balances increased 19% year over year to $514.1 million at September 30, 2021.
  • The average interest rate on $5.66 billion of average deposits and interest-bearing liabilities during the third quarter of 2021 was 0.18%. Average deposits of $5.53 billion for the third quarter 2021, reflected a decrease of 1% from the $5.56 billion of average deposits for the quarter ended September 30, 2020.
  • As of September 30, 2021, substantially all of the borrowers with Covid-19 related payment deferrals had recommenced making payments, with only approximately $1.3 million of non-U.S. guaranteed loan principal remaining in deferral.
  • Consolidated and The Bancorp Bank (“the Bank”) leverage ratios were 9.82% and 10.24%, respectively, at September 30, 2021. The Bancorp and its subsidiary, The Bank, remain well capitalized.
  • Book value per common share at September 30, 2021 was $11.13 per share compared to $9.71 per share at September 30, 2020, an increase of 15%, primarily as a result of retained earnings.
  • The Bancorp repurchased 440,887 shares of its common stock at an average cost of $22.68 per share during the quarter ended September 30, 2021.

“We continue to experience business momentum across our platform and strong pipelines that will support continued growth into 2022”, said CEO and President Damian Kozlowski. “We are issuing preliminary guidance of $2.15 a share for 2022 or approximately 21% growth over the current 2021 guidance of $1.78. The $2.15 does not include the impact of planned buybacks. In addition, in 2022, we intend to increase our stock buyback to $15 million a quarter from $10 million a quarter.”

The Bancorp reported net income of $28.3 million, or $0.48 per diluted share, for the quarter ended September 30, 2021, compared to net income of $23.3 million, or $0.40 per diluted share, for the quarter ended September 30, 2020. 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 9.82%, 15.69%, 16.10% and 15.69%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 29, 2021 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 9257937. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, November 5, 2021 by dialing 855.859.2056, access code 9257937.

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., 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. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine, and was selected to be included in the S&P Small Cap 600. 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 “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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

September 30,

 

 

September 30,

Condensed income statement

2021

 

2020

 

2021

 

2020

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

50,893

 

$

49,996

 

$

158,719

 

$

143,153

Provision for credit losses

 

1,613

 

 

1,297

 

 

1,484

 

 

5,798

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

ACH, card and other payment processing fees

 

1,905

 

 

1,760

 

 

5,605

 

 

5,313

Prepaid, debit card and related fees

 

18,223

 

 

19,434

 

 

56,878

 

 

56,647

Net realized and unrealized gains (losses) on commercial

 

 

 

 

 

 

 

 

 

 

 

loans, at fair value

 

4,306

 

 

684

 

 

8,881

 

 

(5,412)

Change in value of investment in unconsolidated entity

 

 

 

 

 

 

 

(45)

Leasing related income

 

1,968

 

 

1,519

 

 

4,700

 

 

2,795

Other non-interest income

 

186

 

 

955

 

 

459

 

 

2,019

Total non-interest income

 

26,588

 

 

24,352

 

 

76,523

 

 

61,317

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

25,094

 

 

26,417

 

 

77,839

 

 

74,650

Data processing expense

 

1,209

 

 

1,192

 

 

3,481

 

 

3,538

Legal expense

 

1,251

 

 

994

 

 

5,349

 

 

4,136

FDIC insurance

 

266

 

 

2,180

 

 

5,235

 

 

7,687

Software

 

4,045

 

 

3,595

 

 

11,435

 

 

10,458

Other non-interest expense

 

7,519

 

 

7,648

 

 

21,811

 

 

22,595

Total non-interest expense

 

39,384

 

 

42,026

 

 

125,150

 

 

123,064

Income from continuing operations before income taxes

 

36,484

 

 

31,025

 

 

108,608

 

 

75,608

Income tax expense

 

8,289

 

 

7,894

 

 

25,195

 

 

19,033

Net income from continuing operations

 

28,195

 

 

23,131

 

 

83,413

 

 

56,575

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations before income taxes

 

87

 

 

(1,671)

 

 

324

 

 

(2,720)

Income tax expense (benefit)

 

21

 

 

(1,794)

 

 

76

 

 

(2,058)

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

 

66

 

 

123

 

 

248

 

 

(662)

Net income

$

28,261

 

$

23,254

 

$

83,661

 

$

55,913

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - basic

$

0.49

 

$

0.40

 

$

1.45

 

$

0.98

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

$

 

$

 

$

0.01

 

$

(0.01)

Net income per share - basic

$

0.49

 

$

0.40

 

$

1.46

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - diluted

$

0.48

 

$

0.40

 

$

1.41

 

$

0.97

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

$

 

$

 

$

0.01

 

$

(0.01)

Net income per share - diluted

$

0.48

 

$

0.40

 

$

1.42

 

$

0.96

Weighted average shares - basic

 

57,198,778

 

 

57,588,168

 

 

57,221,174

 

 

57,433,477

Weighted average shares - diluted

 

58,628,306

 

 

58,471,192

 

 

58,932,146

 

 

58,051,833

Note: Compared to higher rates in recent periods, the effective tax rate for the three and nine months ended September 30, 2021 approximated 23% as a result of the impact of excess 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2021 (unaudited)

 

2021 (unaudited)

 

2020

 

2020 (unaudited)

 

 

(in thousands, except share data)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

6,687

 

 

$

5,470

 

 

$

5,984

 

 

$

6,220

 

Interest earning deposits at Federal Reserve Bank

 

310,642

 

 

 

583,498

 

 

 

339,531

 

 

 

294,758

 

Total cash and cash equivalents

 

317,329

 

 

 

588,968

 

 

 

345,515

 

 

 

300,978

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,054,223

 

 

 

1,106,075

 

 

 

1,206,164

 

 

 

1,264,903

 

Commercial loans, at fair value

 

1,550,025

 

 

 

1,690,216

 

 

 

1,810,812

 

 

 

1,849,947

 

Loans, net of deferred fees and costs

 

3,136,662

 

 

 

2,915,344

 

 

 

2,652,323

 

 

 

2,488,760

 

Allowance for credit losses

 

(16,159

)

 

 

(15,292

)

 

 

(16,082

)

 

 

(15,727

)

Loans, net

 

3,120,503

 

 

 

2,900,052

 

 

 

2,636,241

 

 

 

2,473,033

 

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

 

1,663

 

 

 

1,667

 

 

 

1,368

 

 

 

1,368

 

Premises and equipment, net

 

16,602

 

 

 

17,392

 

 

 

17,608

 

 

 

15,849

 

Accrued interest receivable

 

17,180

 

 

 

18,668

 

 

 

20,458

 

 

 

18,852

 

Intangible assets, net

 

2,547

 

 

 

2,646

 

 

 

2,845

 

 

 

2,563

 

Other real estate owned

 

2,145

 

 

 

 

 

 

 

 

 

 

Deferred tax asset, net

 

12,237

 

 

 

10,923

 

 

 

9,757

 

 

 

7,952

 

Investment in unconsolidated entity, at fair value

 

 

 

 

24,988

 

 

 

31,294

 

 

 

31,783

 

Assets held-for-sale from discontinued operations

 

87,904

 

 

 

97,496

 

 

 

113,650

 

 

 

122,253

 

Other assets

 

86,105

 

 

 

91,516

 

 

 

81,129

 

 

 

79,821

 

Total assets

$

6,268,463

 

 

$

6,550,607

 

 

$

6,276,841

 

 

$

6,169,302

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

4,734,352

 

 

$

5,225,024

 

 

$

5,205,010

 

 

$

4,882,834

 

Savings and money market

 

378,160

 

 

 

459,688

 

 

 

257,050

 

 

 

505,928

 

Total deposits

 

5,112,512

 

 

 

5,684,712

 

 

 

5,462,060

 

 

 

5,388,762

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

42

 

 

 

42

 

 

 

42

 

 

 

42

 

Short-term borrowings

 

300,000

 

 

 

 

 

 

 

 

 

 

Senior debt

 

98,590

 

 

 

98,498

 

 

 

98,314

 

 

 

98,222

 

Subordinated debenture

 

13,401

 

 

 

13,401

 

 

 

13,401

 

 

 

13,401

 

Other long-term borrowings

 

39,715

 

 

 

39,901

 

 

 

40,277

 

 

 

40,462

 

Other liabilities

 

66,226

 

 

 

94,944

 

 

 

81,583

 

 

 

69,954

 

Total liabilities

$

5,630,486

 

 

$

5,931,498

 

 

$

5,695,677

 

 

$

5,610,843

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock - authorized, 75,000,000 shares of $1.00 par value; 57,330,846 and 57,490,874 shares issued and outstanding at September 30, 2021 and 2020, respectively

 

57,331

 

 

 

57,458

 

 

 

57,551

 

 

 

57,491

 

Additional paid-in capital

 

357,528

 

 

 

363,241

 

 

 

377,452

 

 

 

375,985

 

Retained earnings

 

212,114

 

 

 

183,853

 

 

 

128,453

 

 

 

104,282

 

Accumulated other comprehensive income

 

11,004

 

 

 

14,557

 

 

 

17,708

 

 

 

20,701

 

Total shareholders' equity

 

637,977

 

 

 

619,109

 

 

 

581,164

 

 

 

558,459

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

6,268,463

 

 

$

6,550,607

 

 

$

6,276,841

 

 

$

6,169,302

 

Note: Previous balance sheets 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 September 30, 2021

 

 

Three months ended September 30, 2020

 

 

(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**

$

4,573,431

 

$

46,357

 

 

4.05%

 

$

4,202,054

 

$

44,318

 

4.22%

Leases-bank qualified*

 

5,031

 

 

87

 

 

6.92%

 

 

8,026

 

 

146

 

7.28%

Investment securities-taxable

 

1,012,007

 

 

6,882

 

 

2.72%

 

 

1,300,191

 

 

7,911

 

2.43%

Investment securities-nontaxable*

 

3,558

 

 

32

 

 

3.60%

 

 

4,041

 

 

35

 

3.46%

Interest earning deposits at Federal Reserve Bank

 

479,350

 

 

167

 

 

0.14%

 

 

413,259

 

 

106

 

0.10%

Net interest earning assets

 

6,073,377

 

 

53,525

 

 

3.53%

 

 

5,927,571

 

 

52,516

 

3.54%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(16,277)

 

 

 

 

 

 

 

 

(14,587)

 

 

 

 

 

Assets held-for-sale from discontinued operations

 

90,598

 

 

754

 

 

3.33%

 

 

124,916

 

 

890

 

2.85%

Other assets

 

214,715

 

 

 

 

 

 

 

 

195,125

 

 

 

 

 

 

$

6,362,413

 

 

 

 

 

 

 

$

6,233,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,124,189

 

$

1,063

 

 

0.08%

 

$

5,079,711

 

$

1,591

 

0.13%

Savings and money market

 

404,775

 

 

146

 

 

0.14%

 

 

484,323

 

 

139

 

0.11%

Total deposits

 

5,528,964

 

 

1,209

 

 

0.09%

 

 

5,564,034

 

 

1,730

 

0.12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

13,097

 

 

7

 

 

0.21%

 

 

3,260

 

 

1

 

0.12%

Repurchase agreements

 

41

 

 

 

 

 

 

41

 

 

 

Subordinated debentures

 

13,401

 

 

112

 

 

3.34%

 

 

13,401

 

 

118

 

3.52%

Senior debt

 

100,329

 

 

1,279

 

 

5.10%

 

 

53,260

 

 

633

 

4.75%

Total deposits and liabilities

 

5,655,832

 

 

2,607

 

 

0.18%

 

 

5,633,996

 

 

2,482

 

0.18%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

78,038

 

 

 

 

 

 

 

 

53,260

 

 

 

 

 

Total liabilities

 

5,733,870

 

 

 

 

 

 

 

 

5,687,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

628,543

 

 

 

 

 

 

 

 

545,769

 

 

 

 

 

 

$

6,362,413

 

 

 

 

 

 

 

$

6,233,025

 

 

 

 

 

Net interest income on tax equivalent basis*

 

 

 

$

51,672

 

 

 

 

 

 

 

$

50,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

25

 

 

 

 

 

 

 

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

51,647

 

 

 

 

 

 

 

$

50,886

 

 

Net interest margin *

 

 

 

 

 

 

 

3.35%

 

 

 

 

 

 

 

3.37%

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020.

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

NOTE: In the table above, interest on loans for 2021 includes $1.2 million of interest and fees on PPP loans. In 2020 the table above includes comparable PPP interest and fees of $2.1 million.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

Nine months ended September 30, 2021

 

Nine months ended September 30, 2020

 

 

(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**

$

4,541,262

 

$

143,546

 

 

4.21%

 

$

3,798,104

 

$

124,924

 

4.39%

Leases-bank qualified*

 

5,925

 

 

301

 

 

6.77%

 

 

9,401

 

 

509

 

7.22%

Investment securities-taxable

 

1,094,633

 

 

22,891

 

 

2.79%

 

 

1,343,211

 

 

28,594

 

2.84%

Investment securities-nontaxable*

 

3,824

 

 

99

 

 

3.45%

 

 

4,537

 

 

110

 

3.23%

Interest earning deposits at Federal Reserve Bank

 

781,606

 

 

650

 

 

0.11%

 

 

444,323

 

 

1,836

 

0.55%

Net interest earning assets

 

6,427,250

 

 

167,487

 

 

3.47%

 

 

5,599,576

 

 

155,973

 

3.71%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(16,254)

 

 

 

 

 

 

 

 

(13,225)

 

 

 

 

 

Assets held for sale from discontinued operations

 

99,472

 

 

2,388

 

 

3.20%

 

 

130,880

 

 

3,259

 

3.32%

Other assets

 

225,802

 

 

 

 

 

 

 

 

243,629

 

 

 

 

 

 

$

6,736,270

 

 

 

 

 

 

 

$

5,960,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,452,604

 

$

4,007

 

 

0.10%

 

$

4,858,666

 

$

9,676

 

0.27%

Savings and money market

 

446,016

 

 

487

 

 

0.15%

 

 

298,049

 

 

309

 

0.14%

Time deposits

 

 

 

 

 

 

 

106,113

 

 

1,483

 

1.86%

Total deposits

 

5,898,620

 

 

4,494

 

 

0.10%

 

 

5,262,828

 

 

11,468

 

0.29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

8,717

 

 

15

 

 

0.23%

 

 

25,419

 

 

181

 

0.95%

Repurchase agreements

 

41

 

 

 

 

 

 

51

 

 

 

Subordinated debentures

 

13,401

 

 

337

 

 

3.35%

 

 

13,401

 

 

408

 

4.06%

Senior debt

 

100,237

 

 

3,838

 

 

5.11%

 

 

17,883

 

 

633

 

4.72%

Total deposits and liabilities

 

6,021,016

 

 

8,684

 

 

0.19%

 

 

5,319,582

 

 

12,690

 

0.32%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

105,683

 

 

 

 

 

 

 

 

119,961

 

 

 

 

 

Total liabilities

 

6,126,699

 

 

 

 

 

 

 

 

5,439,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

609,571

 

 

 

 

 

 

 

 

521,317

 

 

 

 

 

 

$

6,736,270

 

 

 

 

 

 

 

$

5,960,860

 

 

 

 

 

Net interest income on tax equivalent basis*

 

 

 

$

161,191

 

 

 

 

 

 

 

$

146,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

84

 

 

 

 

 

 

 

 

130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

161,107

 

 

 

 

 

 

 

$

146,412

 

 

Net interest margin *

 

 

 

 

 

 

 

3.29%

 

 

 

 

 

 

 

3.41%

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020.

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

NOTE: In the table above, the 2021 interest on loans reflects $4.6 million of interest and fees which were earned on a short-term line of credit to another institution to initially fund PPP loans, which did not significantly increase average loans or assets and which are not expected to recur. Interest on loans in 2021 also includes $4.9 million of interest and fees on PPP loans. In 2020 the table above includes comparable PPP interest and fees of $3.7 million. Increases in interest earning deposits at the Federal Reserve Bank reflect increased deposits resulting from stimulus payments distributed to a large segment of the population, resulting from December 2020 federal legislation.

 

 

 

 

 

 

 

 

 

Allowance for credit losses

Nine months ended

 

Year ended

 

September 30,

 

September 30,

 

December 31,

 

2021 (unaudited)

 

2020 (unaudited)

 

2020

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

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

$

16,082

 

$

12,875

 

$

12,875

 

 

 

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

 

 

 

SBA non-real estate

 

896

 

 

1,350

 

 

1,350

SBA commercial mortgage

 

23

 

 

 

 

Direct lease financing

 

248

 

 

2,178

 

 

2,243

SBLOC

 

15

 

 

 

 

Consumer - home equity

 

10

 

 

 

 

Total

 

1,192

 

 

3,528

 

 

3,593

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

SBA non-real estate

 

18

 

 

82

 

 

103

SBA commercial mortgage

 

9

 

 

 

 

Direct lease financing

 

50

 

 

502

 

 

570

Total

 

77

 

 

584

 

 

673

Net charge-offs

 

1,115

 

 

2,944

 

 

2,920

Provision credited to allowance, excluding commitment provision

 

1,192

 

 

5,796

 

 

6,127

 

 

 

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

16,159

 

$

15,727

 

$

16,082

Net charge-offs/average loans

 

0.04%

 

 

0.08%

 

 

0.07%

Net charge-offs/average assets

 

0.02%

 

 

0.05%

 

 

0.05%

(1) Excludes activity from assets held-for-sale from discontinued operations.

 

 

 

Loan portfolio

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2021

 

2021

 

2020

 

2020

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

171,845

 

$

228,958

 

$

255,318

 

$

293,488

SBL commercial mortgage

 

367,272

 

 

343,487

 

 

300,817

 

 

270,264

SBL construction

 

23,117

 

 

18,494

 

 

20,273

 

 

27,169

Small business loans *

 

562,234

 

 

590,939

 

 

576,408

 

 

590,921

Direct lease financing

 

514,068

 

 

506,424

 

 

462,182

 

 

430,675

SBLOC / IBLOC**

 

1,834,523

 

 

1,729,628

 

 

1,550,086

 

 

1,428,253

Advisor financing ***

 

81,143

 

 

72,190

 

 

48,282

 

 

26,600

Real estate bridge lending

 

128,699

 

 

 

 

 

 

Other loans ****

 

4,917

 

 

5,840

 

 

6,426

 

 

6,003

 

 

3,125,584

 

 

2,905,021

 

 

2,643,384

 

 

2,482,452

Unamortized loan fees and costs

 

11,078

 

 

10,323

 

 

8,939

 

 

6,308

Total loans, net of unamortized fees and costs

$

3,136,662

 

$

2,915,344

 

$

2,652,323

 

$

2,488,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small business portfolio

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2021

 

2021

 

2020

 

2020

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

566,472

 

$

593,401

 

$

577,944

 

$

590,314

SBL, included in commercial loans, at fair value

 

214,301

 

 

225,534

 

 

243,562

 

 

250,958

Total small business loans

$

780,773

 

$

818,935

 

$

821,506

 

$

841,272

* 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 SBA 7a loans at the dates indicated. A reduction in SBL non-real estate loans from $229.0 million at June 30, 2021 to $171.8 million at September 30, 2021 resulted from U.S. government repayments of $58.2 million of PPP loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $71.3 million at September 30, 2021 and $165.7 million at December 31, 2020, respectively.

** 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 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 $272,000 and $663,000 at September 30, 2021 and December 31, 2020, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.

Small business loans as of September 30, 2021 

 

 

 

 

 

 

 

 

 

Loan principal

 

 

(in millions)

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

 

$

370

Paycheck Protection Program loans (PPP) (a)

 

 

71

Commercial mortgage SBA (b)

 

 

195

Construction SBA (c)

 

 

13

Non-guaranteed portion of U.S. government guaranteed 7a loans (d)

 

 

104

Non-SBA small business loans (e)

 

 

18

Total principal

 

$

771

Unamortized fees and costs

 

 

10

Total small business loans

 

$

781

(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 $13 million in Construction SBA loans, $11 million are 504 first mortgages with an origination date LTV of 50-60% and $2 million are SBA interim loans with an approved SBA post-construction full takeout/payoff.

(d) The $104 million represents the non-guaranteed 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 $18 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 September 30, 2021

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

mortgage*

 

SBL construction*

 

SBL non-real estate

 

Total

 

 

% Total

 

 

 

(in millions)

Hotels and motels

 

$

67

 

$

4

 

$

 

$

71

 

 

21%

Full-service restaurants

 

 

16

 

 

1

 

 

3

 

 

20

 

 

6%

Baked goods stores

 

 

4

 

 

 

 

11

 

 

15

 

 

5%

Child day care services

 

 

14

 

 

 

 

1

 

 

15

 

 

5%

Car washes

 

 

10

 

 

2

 

 

 

 

12

 

 

4%

Lessors of nonresidential buildings (except miniwarehouses)

 

 

10

 

 

 

 

 

 

10

 

 

3%

Assisted living facilities for the elderly

 

 

10

 

 

 

 

 

 

10

 

 

3%

Offices of lawyers

 

 

9

 

 

 

 

 

 

9

 

 

3%

Funeral homes and funeral services

 

 

9

 

 

 

 

 

 

9

 

 

3%

General warehousing and storage

 

 

7

 

 

 

 

 

 

7

 

 

2%

Limited-service restaurants

 

 

2

 

 

1

 

 

3

 

 

6

 

 

2%

Fitness and recreational sports centers

 

 

 

 

4

 

 

2

 

 

6

 

 

2%

Amusement and recreation industries

 

 

5

 

 

 

 

1

 

 

6

 

 

2%

Outpatient mental health and substance abuse centers

 

 

5

 

 

 

 

 

 

5

 

 

1%

Spectator sports

 

 

5

 

 

 

 

 

 

5

 

 

1%

Perishable prepared food manufacturing

 

 

5

 

 

 

 

 

 

5

 

 

1%

Gasoline stations with convenience stores

 

 

5

 

 

 

 

 

 

5

 

 

1%

Offices of dentists

 

 

3

 

 

 

 

 

 

3

 

 

1%

Warehousing and storage

 

 

3

 

 

 

 

 

 

3

 

 

1%

New car dealers

 

 

3

 

 

 

 

 

 

3

 

 

1%

Miscellaneous wood product manufacturing

 

 

3

 

 

 

 

 

 

3

 

 

1%

Plumbing, heating, and air-conditioning contractors

 

 

3

 

 

 

 

 

 

3

 

 

1%

Offices of physicians (except mental health specialists)

 

 

3

 

 

 

 

 

 

3

 

 

1%

Technical and trade schools

 

 

 

 

3

 

 

 

 

3

 

 

1%

General purpose machinery manufacturing

 

 

2

 

 

 

 

 

 

2

 

 

1%

Pet care (except veterinary) services

 

 

2

 

 

 

 

 

 

2

 

 

1%

Landscaping services

 

 

1

 

 

 

 

2

 

 

3

 

 

1%

Sewing, needlework, and piece goods stores

 

 

2

 

 

 

 

 

 

2

 

 

1%

Automotive body, paint, and interior repair and maintenance

 

 

2

 

 

 

 

 

 

2

 

 

1%

Vocational rehabilitation services

 

 

2

 

 

 

 

2

 

 

4

 

 

1%

Amusement arcades

 

 

2

 

 

 

 

 

 

2

 

 

1%

Lessors of real estate property

 

 

2

 

 

 

 

 

 

2

 

 

1%

Other**

 

 

49

 

 

1

 

 

25

 

 

75

 

 

20%

Total

 

$

265

 

$

16

 

$

50

 

$

331

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $62 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 September 30, 2021

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial

mortgage*

 

SBL construction*

 

SBL non-real estate

 

Total

 

 

% Total

 

 

 

(in millions)

Florida

 

$

56

 

$

 

$

8

 

$

64

 

 

19%

California

 

 

42

 

 

1

 

 

4

 

 

47

 

 

14%

North Carolina

 

 

23

 

 

2

 

 

3

 

 

28

 

 

9%

Pennsylvania

 

 

23

 

 

4

 

 

3

 

 

30

 

 

8%

Illinois

 

 

22

 

 

 

 

3

 

 

25

 

 

8%

New York

 

 

14

 

 

4

 

 

3

 

 

21

 

 

6%

New Jersey

 

 

12

 

 

 

 

6

 

 

18

 

 

6%

Texas

 

 

12

 

 

 

 

4

 

 

16

 

 

5%

Virginia

 

 

9

 

 

 

 

2

 

 

11

 

 

3%

Tennessee

 

 

10

 

 

 

 

 

 

10

 

 

3%

Colorado

 

 

3

 

 

5

 

 

2

 

 

10

 

 

3%

Georgia

 

 

7

 

 

 

 

2

 

 

9

 

 

3%

Michigan

 

 

4

 

 

 

 

1

 

 

5

 

 

2%

Washington

 

 

3

 

 

 

 

 

 

3

 

 

1%

Ohio

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other states

 

 

22

 

 

 

 

9

 

 

31

 

 

9%

Total

 

$

265

 

$

16

 

$

50

 

$

331

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $62 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 September 30, 2021

 

 

 

 

 

 

 

 

 

Type*

 

State

 

SBL commercial mortgage*

 

 

 

 

(in millions)

Hotel

 

 

FL

 

$

9

 

Lawyer's office

 

 

CA

 

 

9

 

Warehouse

 

 

PA

 

 

7

 

Hotel

 

 

NC

 

 

6

 

Assisted living facility

 

 

FL

 

 

5

 

Mental health and substance abuse centers

 

 

FL

 

 

5

 

Hotel

 

 

NC

 

 

5

 

Prepared food manufacturing

 

 

NJ

 

 

4

 

Hotel

 

 

PA

 

 

4

 

Hotel

 

 

TN

 

 

4

 

Total

 

 

 

 

$

58

 

* All 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 September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

# Loans

 

 

Balance

 

Weighted average

origination date

LTV

 

Weighted average

interest rate

 

 

 

(dollars in millions)

Real estate bridge lending (multi-family apartments)*

 

 

15

 

$

129

 

75%

 

4.22%

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans, at fair value:

 

 

 

 

 

 

 

 

 

 

Multi-family (apartments)*

 

 

115

 

$

1,193

 

76%

 

4.75%

Hospitality (hotels and lodging)

 

 

9

 

 

66

 

65%

 

5.69%

Retail

 

 

6

 

 

61

 

71%

 

4.33%

Other

 

 

8

 

 

21

 

73%

 

5.16%

 

 

 

138

 

 

1,341

 

75%

 

4.78%

Fair value adjustment

 

 

 

 

 

(6)

 

 

 

 

Total commercial real estate loans, at fair value

 

 

 

 

 

1,335

 

 

 

 

Total commercial real estate loans

 

 

 

 

$

1,464

 

75%

 

4.75%

*In the third quarter of 2021, we recommenced 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 September 30, 2021

 

 

15 largest loans (all multi-family) as of September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

Balance

 

 

Origination

date LTV

 

 

State

 

 

 

Balance

 

Origination

date LTV

(in millions)

 

 

(in millions)

Texas

 

$

459

 

 

77%

 

 

North Carolina

 

 

$

44

 

78%

Georgia

 

 

193

 

 

76%

 

 

Texas

 

 

 

39

 

79%

Arizona

 

 

79

 

 

75%

 

 

Texas

 

 

 

36

 

80%

North Carolina

 

 

79

 

 

77%

 

 

Missouri

 

 

 

30

 

72%

Ohio

 

 

58

 

 

69%

 

 

Texas

 

 

 

30

 

75%

Alabama

 

 

57

 

 

76%

 

 

Nevada

 

 

 

29

 

80%

Virginia

 

 

57

 

 

73%

 

 

Texas

 

 

 

27

 

77%

Other states each <$55 million

 

 

482

 

 

73%

 

 

Arizona

 

 

 

27

 

79%

Total

 

$

1,464

 

 

75%

 

 

Mississippi

 

 

 

27

 

79%

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

25

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

25

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

24

 

77%

 

 

 

 

 

 

 

 

 

Alabama

 

 

 

23

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

21

 

79%

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

20

 

79%

 

 

 

 

 

 

 

 

 

15 Largest loans

 

 

$

427

 

78%

Institutional banking loans outstanding at September 30, 2021

 

 

 

 

 

 

Type

Principal

 

% of total

 

 

(in millions)

 

 

Securities backed lines of credit (SBLOC)

$

1,148

 

60%

Insurance backed lines of credit (IBLOC)

 

687

 

36%

Advisor financing

 

81

 

4%

Total

$

1,916

 

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 September 30, 2021

 

 

 

 

 

 

 

Principal amount

 

% Principal to

collateral

 

(in millions)

 

$

19

 

65%

 

 

17

 

37%

 

 

14

 

27%

 

 

12

 

29%

 

 

9

 

33%

 

 

9

 

36%

 

 

9

 

53%

 

 

8

 

71%

 

 

8

 

23%

 

 

8

 

46%

Total and weighted average

$

113

 

43%

Insurance backed lines of credit (IBLOC)

IBLOC loans are backed by the cash value of 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, seven insurance companies have been approved and, as of August 14, 2021, all were rated Superior (A+ or better) by AM BEST.

Direct lease financing* by type as of September 30, 2021

 

 

 

 

 

 

 

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Construction

$

95

 

18%

Government agencies and public institutions**

 

77

 

15%

Waste management and remediation services

 

64

 

12%

Real estate and rental and leasing

 

56

 

11%

Retail trade

 

47

 

9%

Wholesale purchase

 

34

 

7%

Transportation and warehousing

 

29

 

6%

Health care and social assistance

 

26

 

5%

Professional, scientific, and technical services

 

19

 

4%

Manufacturing

 

16

 

3%

Wholesale trade

 

14

 

3%

Educational services

 

8

 

2%

Other

 

29

 

5%

Total

$

514

 

100%

* Of the total $514 million of direct lease financing, $464 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 September 30, 2021

 

 

 

 

 

 

State

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Florida

$

93

 

18%

California

 

48

 

9%

New Jersey

 

39

 

8%

Utah

 

35

 

7%

New York

 

33

 

6%

Pennsylvania

 

32

 

6%

Maryland

 

25

 

5%

North Carolina

 

25

 

5%

Texas

 

19

 

4%

Connecticut

 

16

 

3%

Washington

 

15

 

3%

Georgia

 

12

 

2%

Idaho

 

11

 

2%

Tennessee

 

10

 

2%

Alabama

 

9

 

2%

Other states

 

92

 

18%

Total

$

514

 

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 September 30, 2021

 

 

 

 

 

 

 

The Bancorp, Inc.

9.82%

 

15.69%

 

16.10%

 

15.69%

The Bancorp Bank

10.24%

 

16.29%

 

16.69%

 

16.29%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

As of December 31, 2020

 

 

 

 

 

 

 

The Bancorp, Inc.

9.20%

 

14.43%

 

14.84%

 

14.43%

The Bancorp Bank

9.11%

 

14.27%

 

14.68%

 

14.27%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

September 30,

 

September 30,

 

2021

 

2020

 

2021

 

2020

Selected operating ratios

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.76%

 

 

1.48%

 

 

1.66%

 

 

1.25%

Return on average equity (1)

 

17.84%

 

 

16.90%

 

 

18.35%

 

 

14.29%

Net interest margin

 

3.35%

 

 

3.37%

 

 

3.29%

 

 

3.41%

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share table

September 30,

 

June 30,

 

 

December 31,

 

September 30,

 

2021

 

2021

 

2020

 

2020

Book value per share

$

11.13

 

$

10.77

 

$

10.10

 

$

9.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality table

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2021

 

2021

 

2020

 

2020

 

 

(dollars in thousands)

Nonperforming loans to total loans

 

0.24%

 

 

0.31%

 

 

0.48%

 

 

0.49%

Nonperforming assets to total assets

 

0.16%

 

 

0.14%

 

 

0.20%

 

 

0.20%

Allowance for credit losses to total loans

 

0.52%

 

 

0.52%

 

 

0.61%

 

 

0.63%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

6,106

 

$

7,346

 

$

12,227

 

$

12,275

Loans 90 days past due still accruing interest

 

1,569

 

 

1,550

 

 

497

 

 

24

Other real estate owned

 

2,145

 

 

 

 

 

 

Total nonperforming assets

$

9,820

 

$

8,896

 

$

12,724

 

$

12,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (GDV) (1)

Three months ended

 

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2021

 

2021

 

2020

 

2020

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid and debit card GDV

$

24,392,188

 

$

27,106,763

 

$

22,523,855

 

$

23,963,508

(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 September 30, 2021

(dollars in millions)

 

Balances

% Growth

Major business lines

Average

approximate

rates *

Balances **

Year over

year

 

Linked

quarter

annualized

Loans

Institutional banking ***

2.6%

$ 1,916

32%

25%

Small business lending****

5.0%

781

12%

12%

Leasing

5.9%

514

19%

6%

Commercial real estate (non-SBA at fair value)

4.7%

1,335

nm

nm

Real estate bridge lending

 

4.2%

 

129

 

nm

 

nm

 

 

 

 

 

Weighted average yield

4.0%

$ 4,675

Non-interest income

% Growth

Deposits: Fintech solutions group

Current

quarter

Year over

year

Prepaid and debit card issuance, and other payments

0.1%

$ 5,146

6%

nm

$ 20.1

(5%)

* Average rates are for the quarter ended September 30, 2021.

** 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 insurance policies, and investment advisor financing.

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

Dissolution of Walnut Street

Previous press releases included tables related to the Walnut Street investment, shown as investment in unconsolidated entity on the balance sheet. 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.

Quarterly activity for commercial loan discontinued principal

 

 

 

 

 

Commercial

 

loan principal

 

(in millions)

 

 

 

Commercial loan discontinued principal June 30, 2021 before marks

$

53

Quarterly paydowns and other reductions

 

(5)

Commercial loan discontinued principal September 30, 2021 before marks

 

48

Marks September 30, 2021

 

(3)

Net commercial loan exposure September 30, 2021

 

45

Residential mortgages

 

25

Net loans

 

70

Florida mall in other real estate owned

 

15

3 properties in other real estate owned

 

3

Total discontinued assets at September 30, 2021

$

88

Discontinued commercial loan composition as of September 30, 2021

 

 

 

 

 

 

 

 

 

 

Collateral type

Unpaid principal

balance

 

Mark at

September 30, 2021

 

Mark as % of

portfolio

 

 

(in millions)

Commercial real estate - non-owner occupied:

 

 

 

 

 

 

 

 

Retail

$

4

 

$

(0.6)

 

 

15%

Office

 

2

 

 

 

 

Other

 

18

 

 

(0.1)

 

 

1%

Construction and land

 

9

 

 

(0.1)

 

 

1%

Commercial non-real estate and industrial

 

2

 

 

(0.1)

 

 

5%

1 to 4 family construction

 

5

 

 

(2.3)

 

 

46%

First mortgage residential non-owner occupied

 

4

 

 

 

 

Commercial real estate owner occupied:

 

 

 

 

 

 

 

 

Retail

 

2

 

 

 

 

Residential junior mortgage

 

1

 

 

 

 

Other

 

1

 

 

 

 

Total

$

48

 

$

(3.2)

 

 

7%

Less: mark

 

(3)

 

 

 

 

 

 

Net commercial loan exposure September 30, 2021

$

45

 

$

(3.2)

 

 

 

Loan payment deferrals related to Covid-19

Total non-U.S. guaranteed loan balances for borrowers with Covid-19 payment deferrals amounted to $1.3 million as of September 30, 2021.

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