THE BANCORP, INC.

(TBBK)
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The Bancorp, Inc. Reports Fourth Quarter 2021 Financial Results

01/27/2022 | 04:08pm EDT

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

Highlights

  • For the quarter ended December 31, 2021, The Bancorp earned net income of $27.0 million, or $0.46 diluted earnings per share.
  • Return on assets and equity for the quarter ended December 31, 2021 amounted to 1.7% and 17%, respectively, compared to 1.6% and 17%, respectively, for the quarter ended December 31, 2020 (all percentages “annualized.”)
  • Net interest margin amounted to 3.51% for the quarter ended December 31, 2021, compared to 3.58% for the quarter ended December 31, 2020.
  • Net interest income was $52.2 million for the quarter ended December 31, 2021 compared to $51.7 million for the quarter ended December 31, 2020. In the fourth quarter of 2021, growth in net interest income was significantly offset by a reduction of $3.8 million resulting from non-SBA commercial loan prepayments. However, net realized and unrealized gains on commercial loans increased over $4 million over those respective periods, primarily as a result of fees related to those prepayments. We have resumed the origination of such loans, identified as real estate bridge loans, which are intended to offset the impact of prepayments and payoffs, and grow the portfolio.
  • Excluding loans at fair value, which were originally generated for sale, total loans increased 41% to $3.75 billion at December 31, 2021, compared to $2.65 billion at December 31, 2020.
  • Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $2.44 billion, or 11%, to $24.96 billion for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020.
  • SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and investment advisor financing loans collectively increased 28% year over year and 7% quarter over quarter to $2.05 billion at December 31, 2021.
  • Small Business Loans, including those held at fair value, grew 6% year over year to $696.2 million at December 31, 2021. That growth is exclusive of Paycheck Protection Program (“PPP”) loan balances of $44.8 million and $165.7 million, respectively, at December 31, 2021 and December 31, 2020.
  • Direct lease financing balances increased 15% year over year to $531.0 million at December 31, 2021.
  • We resumed non-SBA commercial real estate lending in the third quarter of 2021 classified as real estate bridge lending. As of December 31, 2021 total real estate bridge loans amounted to $621.7 million, collateralized by apartment buildings.
  • The average interest rate on $5.47 billion of average deposits and interest-bearing liabilities during the fourth quarter of 2021 was 0.19%. Average deposits of $5.31 billion for the fourth quarter 2021, reflected an increase of 1% from the $5.25 billion of average deposits for the quarter ended December 31, 2020.
  • As of December 31, 2021, substantially all the borrowers with COVID-19 related payment deferrals had resumed making payments.
  • As of December 31, 2021, tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 to risk-weighted assets ratios were 10.40%, 14.72%, 15.13% and 14.72%, 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 December 31, 2021 was $11.37 per share compared to $10.10 per share at December 31, 2020, an increase of 13%, primarily as a result of retained earnings.
  • The Bancorp repurchased 350,431 shares of its common stock at an average cost of $28.54 per share during the quarter ended December 31, 2021.

“Our lending platform and fin-tech ecosystem will support continued growth into 2022,” said The Bancorp CEO and President Damian Kozlowski. “We continue to improve our performance, while delivering enhanced capabilities to our many innovative partners which are revolutionizing the financial services industry. 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 $27.0 million, or $0.46 per diluted share, for the quarter ended December 31, 2021, compared to net income of $24.2 million, or $0.41 per diluted share, for the quarter ended December 31, 2020.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, January 28, 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 7390458. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, February 4, 2022 by dialing 855.859.2056, access code 7390458.

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Year ended

 

 

December 31,

 

 

December 31,

Condensed income statement

2021

 

2020

 

2021

 

2020

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

52,157

 

$

51,713

 

$

210,876

 

$

194,866

Provision for credit losses

 

1,626

 

 

554

 

 

3,110

 

 

6,352

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

ACH, card and other payment processing fees

 

1,921

 

 

1,788

 

 

7,526

 

 

7,101

Prepaid, debit card and related fees

 

17,776

 

 

17,818

 

 

74,654

 

 

74,465

Net realized and unrealized gains (losses) on commercial

 

 

 

 

 

 

 

 

 

 

 

loans, at fair value

 

6,004

 

 

1,538

 

 

14,885

 

 

(3,874)

Change in value of investment in unconsolidated entity

 

 

 

 

 

 

 

(45)

Leasing related income

 

1,757

 

 

499

 

 

6,457

 

 

3,294

Other non-interest income

 

768

 

 

1,657

 

 

1,227

 

 

3,676

Total non-interest income

 

28,226

 

 

23,300

 

 

104,749

 

 

84,617

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

28,159

 

 

27,087

 

 

105,998

 

 

101,737

Data processing expense

 

1,183

 

 

1,174

 

 

4,664

 

 

4,712

Legal expense

 

1,499

 

 

1,005

 

 

6,848

 

 

5,141

FDIC insurance

 

351

 

 

2,121

 

 

5,586

 

 

9,808

Software

 

4,224

 

 

3,570

 

 

15,659

 

 

14,028

Other non-interest expense

 

7,784

 

 

6,826

 

 

29,595

 

 

29,421

Total non-interest expense

 

43,200

 

 

41,783

 

 

168,350

 

 

164,847

Income from continuing operations before income taxes

 

35,557

 

 

32,676

 

 

144,165

 

 

108,284

Income tax expense

 

8,529

 

 

8,655

 

 

33,724

 

 

27,688

Net income from continuing operations

 

27,028

 

 

24,021

 

 

110,441

 

 

80,596

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations before income taxes

 

(36)

 

 

(1,096)

 

 

288

 

 

(3,816)

Income tax (benefit) expense

 

 

 

(1,246)

 

 

76

 

 

(3,304)

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

 

(36)

 

 

150

 

 

212

 

 

(512)

Net income

$

26,992

 

$

24,171

 

$

110,653

 

$

80,084

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - basic

$

0.47

 

$

0.42

 

$

1.93

 

$

1.40

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

$

 

$

 

$

 

$

(0.01)

Net income per share - basic

$

0.47

 

$

0.42

 

$

1.93

 

$

1.39

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share from continuing operations - diluted

$

0.46

 

$

0.41

 

$

1.88

 

$

1.38

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

$

 

$

 

$

 

$

(0.01)

Net income per share - diluted

$

0.46

 

$

0.41

 

$

1.88

 

$

1.37

Weighted average shares - basic

 

56,966,661

 

 

57,597,124

 

 

57,190,311

 

 

57,474,612

Weighted average shares - diluted

 

58,369,204

 

 

59,146,222

 

 

58,830,437

 

 

58,411,222

Note: Compared to higher rates in recent periods, the respective effective tax rates for the three and twelve months ended December 31, 2021 approximated 24% and 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

December 31,

 

September 30,

 

June 30,

 

December 31,

 

2021 (unaudited)

 

2021 (unaudited)

 

2021 (unaudited)

 

2020

 

 

(in thousands, except share data)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

5,382

 

$

6,687

 

$

5,470

 

$

5,984

Interest earning deposits at Federal Reserve Bank

 

596,402

 

 

310,642

 

 

583,498

 

 

339,531

Total cash and cash equivalents

 

601,784

 

 

317,329

 

 

588,968

 

 

345,515

 

 

 

 

 

 

 

 

 

 

 

 

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

 

953,709

 

 

1,054,223

 

 

1,106,075

 

 

1,206,164

Commercial loans, at fair value

 

1,326,836

 

 

1,550,025

 

 

1,690,216

 

 

1,810,812

Loans, net of deferred fees and costs

 

3,747,224

 

 

3,136,662

 

 

2,915,344

 

 

2,652,323

Allowance for credit losses

 

(17,806)

 

 

(16,159)

 

 

(15,292)

 

 

(16,082)

Loans, net

 

3,729,418

 

 

3,120,503

 

 

2,900,052

 

 

2,636,241

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

 

1,663

 

 

1,663

 

 

1,667

 

 

1,368

Premises and equipment, net

 

16,156

 

 

16,602

 

 

17,392

 

 

17,608

Accrued interest receivable

 

17,871

 

 

17,180

 

 

18,668

 

 

20,458

Intangible assets, net

 

2,447

 

 

2,547

 

 

2,646

 

 

2,845

Other real estate owned

 

1,530

 

 

2,145

 

 

 

 

Deferred tax asset, net

 

12,667

 

 

12,237

 

 

10,923

 

 

9,757

Investment in unconsolidated entity, at fair value

 

 

 

 

 

24,988

 

 

31,294

Assets held-for-sale from discontinued operations

 

82,191

 

 

87,904

 

 

97,496

 

 

113,650

Other assets

 

96,967

 

 

86,105

 

 

91,516

 

 

81,129

Total assets

$

6,843,239

 

$

6,268,463

 

$

6,550,607

 

$

6,276,841

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,561,365

 

$

4,734,352

 

$

5,225,024

 

$

5,205,010

Savings and money market

 

415,546

 

 

378,160

 

 

459,688

 

 

257,050

Total deposits

 

5,976,911

 

 

5,112,512

 

 

5,684,712

 

 

5,462,060

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

42

 

 

42

 

 

42

 

 

42

Short-term borrowings

 

 

 

300,000

 

 

 

 

Senior debt

 

98,682

 

 

98,590

 

 

98,498

 

 

98,314

Subordinated debenture

 

13,401

 

 

13,401

 

 

13,401

 

 

13,401

Other long-term borrowings

 

39,521

 

 

39,715

 

 

39,901

 

 

40,277

Other liabilities

 

62,228

 

 

66,226

 

 

94,944

 

 

81,583

Total liabilities

$

6,190,785

 

$

5,630,486

 

$

5,931,498

 

$

5,695,677

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock - authorized, 75,000,000 shares of $1.00 par value; 57,370,563 and 57,550,629 shares issued and outstanding at December 30, 2021 and 2020, respectively

 

57,371

 

 

57,331

 

 

57,458

 

 

57,551

Additional paid-in capital

 

349,686

 

 

357,528

 

 

363,241

 

 

377,452

Retained earnings

 

239,106

 

 

212,114

 

 

183,853

 

 

128,453

Accumulated other comprehensive income

 

6,291

 

 

11,004

 

 

14,557

 

 

17,708

Total shareholders' equity

 

652,454

 

 

637,977

 

 

619,109

 

 

581,164

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

6,843,239

 

$

6,268,463

 

$

6,550,607

 

$

6,276,841

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 December 31, 2021

 

 

Three months ended December 31, 2020

 

 

(dollars in thousands)

Average

Average

Average

Average

Assets:

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs**

$

4,766,271

 

$

48,792

 

 

4.09%

 

$

4,329,794

 

$

45,524

 

4.21%

Leases-bank qualified*

 

4,465

 

 

76

 

 

6.81%

 

 

7,346

 

 

138

 

7.51%

Investment securities-taxable

 

954,172

 

 

5,770

 

 

2.42%

 

 

1,239,062

 

 

9,229

 

2.98%

Investment securities-nontaxable*

 

3,558

 

 

31

 

 

3.49%

 

 

4,041

 

 

35

 

3.46%

Interest earning deposits at Federal Reserve Bank

 

208,120

 

 

65

 

 

0.12%

 

 

193,560

 

 

48

 

0.10%

Net interest earning assets

 

5,936,586

 

 

54,734

 

 

3.69%

 

 

5,773,803

 

 

54,974

 

3.81%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(17,108)

 

 

 

 

 

 

 

 

(15,804)

 

 

 

 

 

Assets held-for-sale from discontinued operations

 

83,821

 

 

708

 

 

3.38%

 

 

117,482

 

 

965

 

3.29%

Other assets

 

189,760

 

 

 

 

 

 

 

 

220,595

 

 

 

 

 

 

$

6,193,059

 

 

 

 

 

 

 

$

6,096,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

4,931,891

 

$

1,015

 

 

0.08%

 

$

4,978,562

 

$

1,679

 

0.13%

Savings and money market

 

373,381

 

 

114

 

 

0.12%

 

 

270,820

 

 

134

 

0.20%

Total deposits

 

5,305,272

 

 

1,129

 

 

0.09%

 

 

5,249,382

 

 

1,813

 

0.14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

53,315

 

 

34

 

 

0.26%

 

 

32,989

 

 

17

 

0.21%

Repurchase agreements

 

41

 

 

 

 

 

 

41

 

 

 

Subordinated debentures

 

13,401

 

 

112

 

 

3.34%

 

 

13,401

 

 

116

 

3.46%

Senior debt

 

100,419

 

 

1,280

 

 

5.10%

 

 

100,031

 

 

1,279

 

5.12%

Total deposits and liabilities

 

5,472,448

 

 

2,555

 

 

0.19%

 

 

5,395,844

 

 

3,225

 

0.24%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

75,395

 

 

 

 

 

 

 

 

130,420

 

 

 

 

 

Total liabilities

 

5,547,843

 

 

 

 

 

 

 

 

5,526,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

645,216

 

 

 

 

 

 

 

 

569,812

 

 

 

 

 

 

$

6,193,059

 

 

 

 

 

 

 

$

6,096,076

 

 

 

 

 

Net interest income on tax equivalent basis*

 

 

 

$

52,887

 

 

 

 

 

 

 

$

52,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

22

 

 

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

52,865

 

 

 

 

 

 

 

$

52,678

 

 

Net interest margin *

 

 

 

 

 

 

 

3.51%

 

 

 

 

 

 

 

3.58%

* 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 $991,000 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

Year ended December 31, 2021

 

Year ended December 31, 2020

 

 

(dollars in thousands)

 

Average

 

 

 

 

 

Average

 

Average

 

 

 

 

Average

Assets:

Balance

 

Interest

 

 

Rate

 

Balance

 

Interest

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs**

$

4,597,977

 

$

192,338

 

 

4.18%

 

$

3,931,758

 

$

170,449

 

4.34%

Leases-bank qualified*

 

5,557

 

 

377

 

 

6.78%

 

 

8,885

 

 

647

 

7.28%

Investment securities-taxable

 

1,059,229

 

 

28,661

 

 

2.71%

 

 

1,317,031

 

 

37,822

 

2.87%

Investment securities-nontaxable*

 

3,757

 

 

130

 

 

3.46%

 

 

4,412

 

 

145

 

3.29%

Interest earning deposits at Federal Reserve Bank

 

637,056

 

 

715

 

 

0.11%

 

 

381,290

 

 

1,885

 

0.49%

Net interest earning assets

 

6,303,576

 

 

222,221

 

 

3.53%

 

 

5,643,376

 

 

210,948

 

3.74%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(16,469)

 

 

 

 

 

 

 

 

(13,878)

 

 

 

 

 

Assets held for sale from discontinued operations

 

95,527

 

 

3,096

 

 

3.24%

 

 

127,519

 

 

4,222

 

3.31%

Other assets

 

217,476

 

 

 

 

 

 

 

 

226,210

 

 

 

 

 

 

$

6,600,110

 

 

 

 

 

 

 

$

5,983,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

5,321,283

 

$

5,022

 

 

0.09%

 

$

4,864,236

 

$

11,356

 

0.23%

Savings and money market

 

427,708

 

 

601

 

 

0.14%

 

 

291,204

 

 

442

 

0.15%

Time deposits

 

 

 

 

 

 

 

79,439

 

 

1,483

 

1.87%

Total deposits

 

5,748,991

 

 

5,623

 

 

0.10%

 

 

5,234,879

 

 

13,281

 

0.25%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

19,958

 

 

49

 

 

0.25%

 

 

27,322

 

 

198

 

0.72%

Repurchase agreements

 

41

 

 

 

 

 

 

49

 

 

 

Subordinated debentures

 

13,401

 

 

449

 

 

3.35%

 

 

13,401

 

 

524

 

3.91%

Senior debt

 

100,283

 

 

5,118

 

 

5.10%

 

 

38,532

 

 

1,913

 

4.96%

Total deposits and liabilities

 

5,882,674

 

 

11,239

 

 

0.19%

 

 

5,314,183

 

 

15,916

 

0.30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

100,627

 

 

 

 

 

 

 

 

137,983

 

 

 

 

 

Total liabilities

 

5,983,301

 

 

 

 

 

 

 

 

5,452,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

616,809

 

 

 

 

 

 

 

 

531,061

 

 

 

 

 

 

$

6,600,110

 

 

 

 

 

 

 

$

5,983,227

 

 

 

 

 

Net interest income on tax equivalent basis*

 

 

 

$

214,078

 

 

 

 

 

 

 

$

199,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

106

 

 

 

 

 

 

 

 

166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

213,972

 

 

 

 

 

 

 

$

199,088

 

 

Net interest margin *

 

 

 

 

 

 

 

3.35%

 

 

 

 

 

 

 

3.45%

* 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 each of 2021 and 2020 also includes $5.8 million of interest and fees on PPP loans. 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

Year ended

 

December 31,

 

December 31,

 

2021

 

2020

 

(dollars in thousands)

 

 

 

 

 

 

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

$

16,082

 

$

12,875

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

SBA non-real estate

 

1,138

 

 

1,350

SBA commercial mortgage

 

417

 

 

Direct lease financing

 

412

 

 

2,243

SBLOC

 

15

 

 

Consumer - home equity

 

10

 

 

Consumer - other

 

14

 

 

Total

 

2,006

 

 

3,593

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

SBA non-real estate

 

51

 

 

103

SBA commercial mortgage

 

9

 

 

Direct lease financing

 

58

 

 

570

Consumer - home equity

 

1,099

 

 

Total

 

1,217

 

 

673

Net charge-offs

 

789

 

 

2,920

Provision credited to allowance, excluding commitment provision

 

2,513

 

 

6,127

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

17,806

 

$

16,082

Net charge-offs/average loans

 

0.03%

 

 

0.07%

Net charge-offs/average assets

 

0.01%

 

 

0.05%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan portfolio

December 31,

 

September 30,

 

June 30,

 

December 31,

 

2021

 

2021

 

2021

 

2020

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

147,722

 

$

171,845

 

$

228,958

 

$

255,318

SBL commercial mortgage

 

361,171

 

 

367,272

 

 

343,487

 

 

300,817

SBL construction

 

27,199

 

 

23,117

 

 

18,494

 

 

20,273

Small business loans *

 

536,092

 

 

562,234

 

 

590,939

 

 

576,408

Direct lease financing

 

531,012

 

 

514,068

 

 

506,424

 

 

462,182

SBLOC / IBLOC**

 

1,929,581

 

 

1,834,523

 

 

1,729,628

 

 

1,550,086

Advisor financing ***

 

115,770

 

 

81,143

 

 

72,190

 

 

48,282

Real estate bridge lending

 

621,702

 

 

128,699

 

 

 

 

Other loans ****

 

5,014

 

 

4,917

 

 

5,840

 

 

6,426

 

 

3,739,171

 

 

3,125,584

 

 

2,905,021

 

 

2,643,384

Unamortized loan fees and costs

 

8,053

 

 

11,078

 

 

10,323

 

 

8,939

Total loans, net of unamortized fees and costs

$

3,747,224

 

$

3,136,662

 

$

2,915,344

 

$

2,652,323

 

 

 

 

 

 

 

 

 

 

 

 

 

Small business portfolio

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

541,437

 

$

566,472

 

$

593,401

 

$

577,944

SBL, included in commercial loans, at fair value

 

199,585

 

 

214,301

 

 

225,534

 

 

243,562

Total small business loans

$

741,022

 

$

780,773

 

$

818,935

 

$

821,506

* 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 $171.8 million to $147.7 million in the fourth quarter of 2021 resulted from U.S. government repayments of $26.5 million of PPP loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $44.8 million at December 31, 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 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 $322,000 and $663,000 at December 31, 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 December 31, 2021

 

 

 

 

 

 

Loan principal

 

 

(in millions)

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

 

$

371

Paycheck Protection Program loans (PPP) (a)

 

 

45

Commercial mortgage SBA (b)

 

 

183

Construction SBA (c)

 

 

17

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

 

 

100

Non-SBA small business loans (e)

 

 

17

Total principal

 

$

733

Unamortized fees and costs

 

 

8

Total small business loans

 

$

741

(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 $17 million in Construction SBA loans, $13 million are 504 first mortgages with an origination date LTV of 50-60% and $4 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 December 31, 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

 

$

65

 

$

4

 

$

 

$

69

 

 

22%

Full-service restaurants

 

 

13

 

 

2

 

 

3

 

 

18

 

 

6%

Child day care services

 

 

14

 

 

 

 

1

 

 

15

 

 

5%

Outpatient mental health and substance abuse centers

 

 

14

 

 

 

 

 

 

14

 

 

5%

Baked goods stores

 

 

4

 

 

 

 

9

 

 

13

 

 

4%

Lessors of nonresidential buildings

 

 

11

 

 

 

 

 

 

11

 

 

4%

Car washes

 

 

10

 

 

 

 

 

 

10

 

 

3%

Offices of lawyers

 

 

9

 

 

 

 

 

 

9

 

 

3%

Funeral homes and funeral services

 

 

8

 

 

 

 

 

 

8

 

 

3%

All other amusement and recreation industries

 

 

7

 

 

 

 

1

 

 

8

 

 

2%

General warehousing and storage

 

 

7

 

 

 

 

 

 

7

 

 

2%

Fitness and recreational sports centers

 

 

 

 

5

 

 

2

 

 

7

 

 

2%

Assisted living facilities for the elderly

 

 

6

 

 

 

 

 

 

6

 

 

2%

Limited-service restaurants

 

 

1

 

 

2

 

 

3

 

 

6

 

 

1%

Gasoline stations with convenience stores

 

 

4

 

 

 

 

 

 

4

 

 

1%

Other technical and trade schools

 

 

 

 

4

 

 

 

 

4

 

 

1%

Offices of dentists

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other warehousing and storage

 

 

3

 

 

 

 

 

 

3

 

 

1%

All other miscellaneous wood product manufacturing

 

 

3

 

 

 

 

 

 

3

 

 

1%

Plumbing, heating, and air-conditioning contractors

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other performing arts companies

 

 

3

 

 

 

 

 

 

3

 

 

1%

Offices of physicians

 

 

3

 

 

 

 

 

 

3

 

 

1%

Lessors of other real estate property

 

 

2

 

 

 

 

 

 

2

 

 

1%

All other miscellaneous general purpose machinery manufacturing

 

 

2

 

 

 

 

 

 

2

 

 

1%

Landscaping services

 

 

1

 

 

 

 

1

 

 

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%

Other**

 

 

45

 

 

 

 

26

 

 

71

 

 

19%

Total

 

$

253

 

$

17

 

$

46

 

$

316

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $65 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 December 31, 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

 

$

59

 

$

 

$

6

 

$

65

 

 

21%

California

 

 

42

 

 

2

 

 

4

 

 

48

 

 

15%

North Carolina

 

 

23

 

 

5

 

 

3

 

 

31

 

 

10%

Pennsylvania

 

 

27

 

 

 

 

3

 

 

30

 

 

9%

New York

 

 

14

 

 

5

 

 

3

 

 

22

 

 

7%

Illinois

 

 

16

 

 

 

 

2

 

 

18

 

 

6%

Texas

 

 

12

 

 

 

 

4

 

 

16

 

 

5%

New Jersey

 

 

6

 

 

 

 

7

 

 

13

 

 

4%

Virginia

 

 

9

 

 

 

 

 

 

9

 

 

3%

Tennessee

 

 

10

 

 

 

 

 

 

10

 

 

3%

Colorado

 

 

3

 

 

5

 

 

1

 

 

9

 

 

3%

Michigan

 

 

4

 

 

 

 

1

 

 

5

 

 

2%

Georgia

 

 

3

 

 

 

 

1

 

 

4

 

 

1%

Ohio

 

 

3

 

 

 

 

1

 

 

4

 

 

1%

Washington

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other States

 

 

19

 

 

 

 

10

 

 

29

 

 

9%

Total

 

$

253

 

$

17

 

$

46

 

$

316

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $65 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 December 31, 2021

 

 

 

 

 

 

 

 

Type*

 

State

 

SBL commercial mortgage*

 

 

 

 

(in millions)

Mental health and substance abuse center

 

 

FL

 

$

10

 

Hotel

 

 

FL

 

 

9

 

Lawyers office

 

 

CA

 

 

9

 

General warehousing and storage

 

 

PA

 

 

7

 

Hotel

 

 

NC

 

 

6

 

Assisted living facility

 

 

FL

 

 

5

 

Hotel

 

 

NY

 

 

5

 

Hotel

 

 

NC

 

 

5

 

Mental health and substance abuse center

 

 

PA

 

 

4

 

Hotel

 

 

PA

 

 

4

 

Total

 

 

 

 

$

64

 

* 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 December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

# Loans

 

 

Balance

 

Weighted average origination date LTV

 

Weighted average interest rate

 

 

 

(dollars in millions)

Real estate bridge lending (multi-family apartments)*

 

 

57

 

$

622

 

74%

 

3.99%

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans, at fair value:

 

 

 

 

 

 

 

 

 

 

Multi-family (apartments)*

 

 

86

 

$

988

 

76%

 

4.75%

Hospitality (hotels and lodging)

 

 

9

 

 

69

 

65%

 

5.68%

Retail

 

 

6

 

 

61

 

71%

 

4.33%

Other

 

 

7

 

 

13

 

73%

 

5.12%

 

 

 

108

 

 

1,131

 

75%

 

4.79%

Fair value adjustment

 

 

 

 

 

(4)

 

 

 

 

Total commercial real estate loans, at fair value

 

 

 

 

 

1,127

 

 

 

 

Total commercial real estate loans

 

 

 

 

$

1,749

 

75%

 

4.52%

*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 December 31, 2021

 

 

15 largest loans (all multi-family) as of December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

Balance

 

 

Origination date LTV

 

 

State

 

 

 

Balance

 

Origination date LTV

(in millions)

 

 

(in millions)

Texas

 

$

607

 

 

76%

 

 

Texas

 

 

$

39

 

79%

Georgia

 

 

168

 

 

75%

 

 

Texas

 

 

 

37

 

75%

Ohio

 

 

111

 

 

72%

 

 

Texas

 

 

 

37

 

80%

Alabama

 

 

90

 

 

74%

 

 

Tennessee

 

 

 

30

 

62%

Florida

 

 

76

 

 

74%

 

 

Missouri

 

 

 

30

 

72%

Arizona

 

 

65

 

 

74%

 

 

Texas

 

 

 

30

 

75%

Tennessee

 

 

64

 

 

66%

 

 

Mississippi

 

 

 

29

 

79%

Other States each <$55 million

 

 

568

 

 

73%

 

 

Texas

 

 

 

29

 

77%

Total

 

$

1,749

 

 

74%

 

 

North Carolina

 

 

 

28

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

27

 

77%

 

 

 

 

 

 

 

 

 

New Jersey

 

 

 

27

 

77%

 

 

 

 

 

 

 

 

 

Oklahoma

 

 

 

27

 

78%

 

 

 

 

 

 

 

 

 

Ohio

 

 

 

26

 

74%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

26

 

77%

 

 

 

 

 

 

 

 

 

Ohio

 

 

 

22

 

75%

 

15 Largest loans

 

 

$

444

76%

 

Institutional banking loans outstanding at December 31, 2021

 

 

 

 

 

Type

Principal

 

% of total

 

 

(in millions)

 

 

Securities backed lines of credit (SBLOC)

$

1,141

 

56%

Insurance backed lines of credit (IBLOC)

 

788

 

39%

Advisor financing

 

116

 

5%

Total

$

2,045

 

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 December 31, 2021

 

 

 

 

 

 

Principal amount

 

% Principal to collateral

 

(in millions)

 

$

18

 

37%

 

 

14

 

25%

 

 

9

 

31%

 

 

9

 

56%

 

 

9

 

35%

 

 

8

 

70%

 

 

8

 

65%

 

 

7

 

13%

 

 

7

 

44%

 

 

6

 

32%

Total and weighted average

$

95

 

40%

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 August 14, 2021, all were rated Excellent (A or better) by AM BEST.

Direct lease financing* by type as of December 31, 2021

 

 

 

 

 

 

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Construction

$

100

 

19%

Government agencies and public institutions**

 

78

 

15%

Waste management and remediation services

 

62

 

12%

Real estate and rental and leasing

 

54

 

10%

Retail trade

 

46

 

9%

Wholesale purchase

 

39

 

7%

Health care and social assistance

 

30

 

6%

Transportation and warehousing

 

28

 

5%

Professional, scientific, and technical services

 

19

 

4%

Wholesale trade

 

16

 

3%

Manufacturing

 

16

 

3%

Educational services

 

8

 

2%

Other

 

35

 

5%

Total

$

531

 

100%

* Of the total $531 million of direct lease financing, $475 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 December 31, 2021

 

 

 

 

 

State

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Florida

$

92

 

17%

California

 

49

 

9%

Utah

 

42

 

8%

New Jersey

 

40

 

8%

Pennsylvania

 

34

 

6%

New York

 

32

 

6%

North Carolina

 

24

 

5%

Maryland

 

24

 

5%

Texas

 

20

 

4%

Connecticut

 

16

 

3%

Washington

 

15

 

3%

Georgia

 

12

 

2%

Idaho

 

11

 

2%

Alabama

 

10

 

2%

Tennessee

 

9

 

2%

Other States

 

101

 

18%

Total

$

531

 

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 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%

 

 

 

 

 

 

 

 

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

 

Year ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

Selected operating ratios

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.73%

 

 

1.57%

 

 

1.68%

 

 

1.34%

Return on average equity (1)

 

16.60%

 

 

16.83%

 

 

17.94%

 

 

15.08%

Net interest margin

 

3.51%

 

 

3.58%

 

 

3.35%

 

 

3.45%

(1) Annualized

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share table

December 31,

 

September 30,

 

 

June 30,

 

December 31,

 

2021

 

2021

 

2021

 

2020

Book value per share

$

11.37

 

$

11.13

 

$

10.77

 

$

10.10

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality table

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

 

(dollars in thousands)

Nonperforming loans to total loans

 

0.10%

 

 

0.24%

 

 

0.31%

 

 

0.48%

Nonperforming assets to total assets

 

0.08%

 

 

0.16%

 

 

0.14%

 

 

0.20%

Allowance for credit losses to total loans

 

0.48%

 

 

0.52%

 

 

0.52%

 

 

0.61%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

3,161

 

$

6,106

 

$

7,346

 

$

12,227

Loans 90 days past due still accruing interest

 

461

 

 

1,569

 

 

1,550

 

 

497

Other real estate owned

 

1,530

 

 

2,145

 

 

 

 

Total nonperforming assets

$

5,152

 

$

9,820

 

$

8,896

 

$

12,724

 

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (GDV) (1)

Three months ended

 

December 31,

 

September 30,

 

June 30,

 

December 31,

 

2021

 

2021

 

2021

 

2020

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid and debit card GDV

$

24,964,135

 

$

24,392,188

 

$

27,106,763

 

$

22,523,855

(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 December 31, 2021

(dollars in millions)

 

Balances

% Growth

Major business lines

Average approximate rates *

Balances **

Year over year

 

Linked quarter annualized

Loans

Institutional banking ***

2.6%

$ 2,045

28%

27%

Small business lending****

5.0%

741

6%

(8%)

Leasing

5.9%

531

15%

13%

Commercial real estate (non-SBA at fair value)

4.7%

1,127

nm

nm

Real estate bridge lending

 

4.0%

 

622

 

nm

 

nm

 

 

 

 

 

Weighted average yield

3.9%

$ 5,066

Non-interest income

% Growth

Deposits: Fintech solutions group

Current quarter

Year over year

Prepaid and debit card issuance, and other payments

0.1%

$ 4,948

7%

nm

$ 19.7

1%

* Average rates are for the quarter ended December 31, 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 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.

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 September 30, 2021 before marks

$

48

Quarterly paydowns and other reductions

 

(4)

Commercial loan discontinued principal December 31, 2021 before marks

 

44

Marks December 31, 2021

 

(3)

Net commercial loan exposure December 31, 2021

 

41

Residential mortgages

 

23

Net loans

 

64

Florida mall in other real estate owned

 

15

2 properties in other real estate owned

 

3

Total discontinued assets at December 31, 2021

$

82

Discontinued commercial loan composition as of December 31, 2021

 

 

 

 

 

 

 

 

 

Collateral type

Unpaid principal balance

 

Mark at

December 31, 2021

 

Mark as % of portfolio

 

 

(in millions)

Commercial real estate - non-owner occupied:

 

 

 

 

 

 

 

 

Retail

$

4

 

$

(0.6)

 

 

15%

Office

 

2

 

 

 

 

Other

 

17

 

 

(0.1)

 

 

1%

Construction and land

 

10

 

 

(0.1)

 

 

1%

Commercial non-real estate and industrial

 

2

 

 

(0.1)

 

 

5%

1 to 4 family construction

 

3

 

 

(2.3)

 

 

77%

First mortgage residential non-owner occupied

 

3

 

 

 

 

Commercial real estate owner occupied:

 

 

 

 

 

 

 

 

Retail

 

1

 

 

 

 

Residential junior mortgage

 

1

 

 

 

 

Other

 

1

 

 

 

 

Total

$

44

 

$

(3.2)

 

 

7%

Less: mark

 

(3)

 

 

 

 

 

 

Net commercial loan exposure December 31, 2021

$

41

 

$

(3.2)

 

 

 

 


© Business Wire 2022
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Financials (USD)
Sales 2022 229 M - -
Net income 2022 129 M - -
Net Debt 2022 - - -
P/E ratio 2022 8,59x
Yield 2022 -
Capitalization 1 095 M 1 095 M -
Capi. / Sales 2022 4,78x
Capi. / Sales 2023 4,04x
Nbr of Employees 650
Free-Float 97,3%
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Number of Analysts 3
Last Close Price 19,35 $
Average target price 37,33 $
Spread / Average Target 92,9%
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Managers and Directors
Damian M. Kozlowski President, Chief Executive Officer & Director
Paul Frenkiel Chief Financial Officer, Secretary & EVP-Strategy
James Joseph McEntee Chairman
Matt Wallace Chief Information Officer & Executive VP
Gregor Garry Vice President-Internal Audit
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