Bancorp : Reports First Quarter 2022 Financial Results – Form 8-K







The Bancorp, Inc. Reports First Quarter 2022 Financial Results

Wilmington, DE – April 28, 2022 – The Bancorp, Inc. (“The Bancorp”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the first quarter of 2022.

Highlights

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

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

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

Conference Call Webcast

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

About The Bancorp

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

Forward-Looking Statements

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

The Bancorp, Inc. Contact

Andres Viroslav

Director, Investor Relations

215-861-7990

andres.viroslav@thebancorp.com

Source: The Bancorp, Inc.

The Bancorp, Inc.

Financial highlights

Three months ended Year ended
March 31, December 31,
Consolidated condensed income statements 2022 (unaudited) 2021 (unaudited) 2021
(in thousands, except per share data)
Net interest income $ 52,853 $ 53,757 $ 210,876
Provision for credit losses 1,507 822 3,110
Non-interest income
ACH, card and other payment processing fees 1,984 1,796 7,526
Prepaid, debit card and related fees 18,652 19,208 74,654
Net realized and unrealized gains on commercial loans, at fair value 3,383 1,996 14,885
Leasing related income 973 965 6,457
Other non-interest income 120 109 1,227
Total non-interest income 25,112 24,074 104,749
Non-interest expense
Salaries and employee benefits 23,848 25,658 105,998
Data processing expense 1,189 1,126 4,664
Legal expense 794 2,054 6,848
FDIC insurance 974 2,380 5,586
Software 3,864 3,684 15,659
Other non-interest expense 7,683 6,981 29,595
Total non-interest expense 38,352 41,883 168,350
Income from continuing operations before income taxes 38,106 35,126 144,165
Income tax expense 9,140 9,066 33,724
Net income from continuing operations 28,966 26,060 110,441
Discontinued operations
(Loss) income from discontinued operations before income taxes (124) 288
Income tax (benefit) expense (29) 76
Net (loss) income from discontinued operations, net of tax (95) 212
Net income $ 28,966 $ 25,965 $ 110,653
Net income per share from continuing operations – basic $ 0.51 $ 0.45 $ 1.93
Net income (loss) per share from discontinued operations – basic $ $ $
Net income per share – basic $ 0.51 $ 0.45 $ 1.93
Net income per share from continuing operations – diluted $ 0.50 $ 0.44 $ 1.88
Net income (loss) per share from discontinued operations – diluted $ $ $
Net income per share – diluted $ 0.50 $ 0.44 $ 1.88
Weighted average shares – basic 57,115,903 57,372,337 57,190,311
Weighted average shares – diluted 58,095,980 59,294,081 58,830,437

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

Condensed consolidated balance sheets March 31, December 31, September 30, March 31,
2022 (unaudited) 2021 2021 (unaudited) 2021 (unaudited)
(in thousands, except share data)
Assets:
Cash and cash equivalents
Cash and due from banks $ 11,399 $ 5,382 $ 6,687 $ 7,838
Interest earning deposits at Federal Reserve Bank 662,827 596,402 310,642 1,738,749
Total cash and cash equivalents 674,226 601,784 317,329 1,746,587
Investment securities, available-for-sale, at fair value 907,338 953,709 1,054,223 1,128,459
Commercial loans, at fair value 1,180,885 1,388,416 1,615,312 1,851,724
Loans, net of deferred fees and costs 4,164,298 3,747,224 3,136,662 2,827,076
Allowance for credit losses (19,051) (17,806) (16,159) (16,419)
Loans, net 4,145,247 3,729,418 3,120,503 2,810,657
Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,663 1,663 1,663 1,368
Premises and equipment, net 16,314 16,156 16,602 17,196
Accrued interest receivable 17,284 17,871 17,180 20,164
Intangible assets, net 2,348 2,447 2,547 2,746
Other real estate owned 18,873 18,873 19,488 17,343
Deferred tax asset, net 18,521 12,667 12,237 10,900
Investment in unconsolidated entity, at fair value 31,047
Assets held-for-sale from discontinued operations 3,268 5,274 18,620
Other assets 99,961 96,967 86,105 90,530
Total assets $ 7,082,660 $ 6,843,239 $ 6,268,463 $ 7,747,341
Liabilities:
Deposits
Demand and interest checking $ 5,506,083 $ 5,561,365 $ 4,734,352 $ 6,231,220
Savings and money market 722,240 415,546 378,160 690,281
Total deposits 6,228,323 5,976,911 5,112,512 6,921,501
Securities sold under agreements to repurchase 42 42 42 42
Short-term borrowings 300,000
Senior debt 98,774 98,682 98,590 98,406
Subordinated debenture 13,401 13,401 13,401 13,401
Other long-term borrowings 39,318 39,521 39,715 40,085
Other liabilities 50,507 62,228 66,226 77,142
Total liabilities $ 6,430,365 $ 6,190,785 $ 5,630,486 $ 7,150,577
Shareholders’ equity:
Common stock – authorized, 75,000,000 shares of $1.00 par value; 57,155,028 and 57,247,913 shares issued and outstanding at March 31, 2022 and 2021, respectively 57,155 57,371 57,331 57,248
Additional paid-in capital 336,604 349,686 357,528 370,481
Retained earnings 268,072 239,106 212,114 154,418
Accumulated other comprehensive (loss) income (9,536) 6,291 11,004 14,617
Total shareholders’ equity 652,295 652,454 637,977 596,764
Total liabilities and shareholders’ equity $ 7,082,660 $ 6,843,239 $ 6,268,463 $ 7,747,341

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

Average balance sheet and net interest income

Three months ended

March 31, 2022

Three months ended

March 31, 2021

(dollars in thousands; unaudited)
Average Average Average Average
Assets: Balance Interest Rate Balance Interest Rate
Interest earning assets:
Loans, net of deferred fees and costs** $ 5,136,377 $ 50,508 3.93% $ 4,476,617 $ 47,811 4.27%
Leases-bank qualified* 4,015 105 10.46% 6,982 118 6.76%
Investment securities-taxable 939,511 4,891 2.08% 1,193,009 8,808 2.95%
Investment securities-nontaxable* 3,559 32 3.60% 4,042 35 3.46%
Interest earning deposits at Federal Reserve Bank 686,614 347 0.20% 747,845 183 0.10%
Net interest earning assets 6,770,076 55,883 3.30% 6,428,495 56,955 3.54%
Allowance for credit losses (17,810 ) (16,069 )
Assets held-for-sale from discontinued operations 109,128 853 3.13%
Other assets 224,312 214,171
$ 6,976,578 $ 6,735,725
Liabilities and Shareholders’ Equity:
Deposits:
Demand and interest checking $ 5,575,228 $ 1,406 0.10% $ 5,501,697 $ 1,617 0.12%
Savings and money market 532,047 200 0.15% 407,186 149 0.15%
Total deposits 6,107,275 1,606 0.11% 5,908,883 1,766 0.12%
Short-term borrowings 555 13,055 8 0.25%
Repurchase agreements 41 41
Subordinated debentures 13,401 116 3.46% 13,401 113 3.37%
Senior debt 98,724 1,279 5.18% 100,140 1,279 5.11%
Total deposits and liabilities 6,219,996 3,001 0.19% 6,035,520 3,166 0.21%
Other liabilities 104,207 111,241
Total liabilities 6,324,203 6,146,761
Shareholders’ equity 652,375 588,964
$ 6,976,578 $ 6,735,725
Net interest income on tax equivalent basis* $ 52,882 $ 54,642
Tax equivalent adjustment 29 32
Net interest income $ 52,853 $ 54,610
Net interest margin * 3.12% 3.34%

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

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

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

Allowance for credit losses Three months ended Year ended
March 31, March 31, December 31,
2022 (unaudited) 2021 (unaudited) 2021
(dollars in thousands)
Balance in the allowance for credit losses at beginning of period (1) $ 17,806 $ 16,082 $ 16,082
Loans charged-off:
SBA non-real estate 98 144 1,138
SBA commercial mortgage 417
Direct lease financing 191 97 412
SBLOC 15 15
Consumer – home equity 10
Consumer – other 14
Total 289 256 2,006
Recoveries:
SBA non-real estate 12 4 51
SBA commercial mortgage 9
Direct lease financing 19 2 58
Consumer – home equity 1,099
Total 31 6 1,217
Net charge-offs 258 250 789
Provision credited to allowance, excluding commitment provision 1,503 587 2,513
Balance in allowance for credit losses at end of period $ 19,051 $ 16,419 $ 17,806
Net charge-offs/average loans 0.01% 0.01% 0.03%
Net charge-offs/average assets 0.01%

(1) Excludes activity from discontinued operations.

Loan portfolio March 31, December 31, September 30, March 31,
2022 2021 2021 2021
(in thousands)
SBL non-real estate $ 122,387 $ 147,722 $ 171,845 $ 305,446
SBL commercial mortgage 385,559 361,171 367,272 320,013
SBL construction 31,432 27,199 23,117 20,692
Small business loans 539,378 536,092 562,234 646,151
Direct lease financing 538,616 531,012 514,068 484,316
SBLOC / IBLOC * 2,067,233 1,929,581 1,834,523 1,622,359
Advisor financing ** 146,461 115,770 81,143 58,919
Real estate bridge loans 803,477 621,702 128,699
Other loans *** 61,096 5,014 4,917 6,452
4,156,261 3,739,171 3,125,584 2,818,197
Unamortized loan fees and costs 8,037 8,053 11,078 8,879
Total loans, net of unamortized fees and costs $ 4,164,298 $ 3,747,224 $ 3,136,662 $ 2,827,076
Small business portfolio March 31, December 31, September 30, March 31,
2022 2021 2021 2021
(in thousands)
SBL, including unamortized fees and costs $ 545,462 $ 541,437 $ 566,472 $ 647,445
SBL, included in commercial loans, at fair value 183,408 199,585 214,301 234,908
Total small business loans **** $ 728,870 $ 741,022 $ 780,773 $ 882,353

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

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

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

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

Small business loans as of March 31, 2022

Loan principal
(in millions)
U.S. government guaranteed portion of SBA loans (a) $ 369
Paycheck Protection Program loans (PPP) (a) 24
Commercial mortgage SBA (b) 191
Construction SBA (c) 19
Non-guaranteed portion of U.S. government guaranteed loans (d) 100
Non-SBA small business loans (e) 17
Total principal $ 720
Unamortized fees and costs 9
Total small business loans $ 729

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

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

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

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

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

Small business loans by type as of March 31, 2022

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

SBL commercial mortgage* SBL construction* SBL non-real estate Total % Total
(in millions)
Hotels (except casino hotels) and motels $ 66 $ 5 $ $ 71 22%
Full-service restaurants 13 2 2 17 5%
Outpatient mental health and substance abuse centers 15 15 4%
Child day care services 12 1 13 4%
Baked goods stores 4 9 13 4%
Car washes 10 1 11 3%
Offices of lawyers 9 9 3%
Assisted living facilities for the elderly 9 9 3%
Funeral homes and funeral services 8 8 2%
Gasoline stations with convenience stores 8 8 2%
Lessors of nonresidential buildings (except miniwarehouses) 8 8 2%
General warehousing and storage 7 7 2%
Fitness and recreational sports centers 5 2 7 2%
Limited-service restaurants 1 2 3 6 1%
All other amusement and recreation industries 4 1 5 1%
Other technical and trade schools 5 5 1%
Other spectator sports 5 5 1%
Other warehousing and storage 3 3 1%
Plumbing, heating, and air-conditioning contractors 3 3 1%
Offices of dentists 3 3 1%
All other miscellaneous wood product manufacturing 3 3 1%
Offices of physicians 3 3 1%
Elementary and secondary schools 2 2 1%
Landscaping services 1 1 2 1%
Lessors of other real estate property 2 2 1%
All other miscellaneous general purpose machinery manufacturing 2 2 1%
Sewing, needlework, and piece goods stores 2 2 1%
Automotive body, paint, and interior repair and maintenance 2 2 1%
Pet care (except veterinary) services 2 2 1%
Amusement arcades 2 2 1%
Caterers 2 2 1%
Offices of real estate agents and brokers 2 2 1%
Vocational rehabilitation services 2 2 1%
Other** 47 1 25 73 22%
Total $ 262 $ 21 $ 44 $ 327 100%

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

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

State diversification as of March 31, 2022

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

SBL commercial mortgage* SBL construction* SBL non-real estate Total % Total
(in millions)
Florida $ 62 $ $ 5 $ 67 21%
California 44 2 4 50 15%
North Carolina 24 7 2 33 10%
Pennsylvania 29 2 31 9%
New York 18 5 3 26 7%
Illinois 15 2 17 6%
Texas 12 4 16 5%
New Jersey 7 7 14 4%
Colorado 4 6 1 11 3%
Virginia 9 1 10 3%
Tennessee 8 8 3%
Georgia 3 1 4 2%
Ohio 4 4 1%
Michigan 3 1 4 1%
Washington 3 3 1%
Other States 17 1 11 29 9%
Total $ 262 $ 21 $ 44 $ 327 100%

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

Top 10 loans as of March 31, 2022

Type* State SBL commercial mortgage*
(in millions)
Mental health and substance abuse center FL $ 10
Hotel FL 9
Lawyer’s office CA 9
General warehousing and storage PA 7
Hotel NC 6
Hotel NY 5
Assisted living facility FL 5
Technical and trade school NC 5
Hotel NC 5
Mental health and substance abuse center PA 4
Total $ 65
* All of the top 10 loans are 504 SBA loans with 50%-60% origination date loan-to-value and are in the commercial mortgage category. The top 10 loan table above does not include loans to the extent that they are U.S. government guaranteed.

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

Type as of March 31, 2022

Type # Loans Balance Weighted average origination date LTV Weighted average interest rate
(dollars in millions)
Real estate bridge loans (multi-family apartment loans recorded at book value)* 74 $ 803 74% 3.99%
Non-SBA commercial real estate loans, at fair value:
Multi-family (apartment bridge loans)* 67 $ 858 76% 4.71%
Hospitality (hotels and lodging) 9 71 65% 5.68%
Retail 5 59 71% 4.28%
Other 6 16 73% 5.13%
87 1,004 75% 4.76%
Fair value adjustment (6)
Total non-SBA commercial real estate loans, at fair value 998
Total commercial real estate loans $ 1,801 75% 4.43%

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

State diversification as of March 31, 2022 15 largest loans as of March 31, 2022
State Balance Origination date LTV State Balance Origination date LTV
(in millions) (in millions)
Texas $ 708 76% Texas $ 41 79%
Georgia 171 74% Texas 39 75%
Ohio 123 72% Texas 37 80%
Alabama 90 74% Texas 37 62%
Florida 80 73% Tennessee 30 72%
Arizona 65 68% Missouri 30 75%
Tennessee 55 74% Texas 30 79%
Other States each <$55 million 509 74% Mississippi 29 77%
Total $ 1,801 74% Texas 29 77%
North Carolina 28 77%
Texas 27 77%
New Jersey 27 78%
Oklahoma 27 74%
Ohio 26 77%
Texas 26 75%
15 Largest loans $ 463 76%

Institutional banking loans outstanding at March 31, 2022

Type Principal % of total
(in millions)
Securities backed lines of credit (SBLOC) $ 1,160 53%
Insurance backed lines of credit (IBLOC) 907 41%
Advisor financing 146 6%
Total $ 2,213 100%

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

Top 10 SBLOC loans at March 31, 2022

Principal amount % Principal to collateral
(in millions)
$ 18 38%
14 29%
9 33%
9 61%
9 38%
9 72%
8 67%
7 74%
7 35%
6 13%
Total and weighted average $ 96 45%

Insurance backed lines of credit (IBLOC)

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

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

Principal balance % Total
(in millions)
Construction $ 99 19%
Government agencies and public institutions** 82 15%
Waste management and remediation services 64 12%
Real estate and rental and leasing 56 10%
Retail trade 46 9%
Wholesale purchase 43 7%
Health care and social assistance 30 6%
Transportation and warehousing 29 5%
Professional, scientific, and technical services 19 4%
Wholesale trade 17 3%
Manufacturing 16 3%
Educational services 8 2%
Other 30 5%
Total $ 539 100%

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

** Includes public universities and school districts.

Direct lease financing by state as of March 31, 2022

State Principal balance % Total
(in millions)
Florida $ 91 17%
Utah 47 9%
California 47 9%
New Jersey 39 7%
Pennsylvania 34 6%
New York 30 6%
North Carolina 25 5%
Maryland 24 4%
Texas 22 4%
Connecticut 16 3%
Washington 16 3%
Georgia 13 2%
Idaho 11 2%
Alabama 10 2%
Tennessee 10 2%
Other States 104 19%
Total $ 539 100%
Capital ratios Tier 1 capital Tier 1 capital Total capital Common equity
to average to risk-weighted to risk-weighted tier 1 to risk
assets ratio assets ratio assets ratio weighted assets
As of March 31, 2022
The Bancorp, Inc. 9.47% 14.15% 14.56% 14.15%
The Bancorp Bank 10.19% 15.23% 15.64% 15.23%
“Well capitalized” institution (under FDIC regulations-Basel III) 5.00% 8.00% 10.00% 6.50%
As of December 31, 2021
The Bancorp, Inc. 10.40% 14.72% 15.13% 14.72%
The Bancorp Bank 10.98% 15.48% 15.88% 15.48%
“Well capitalized” institution (under FDIC regulations-Basel III) 5.00% 8.00% 10.00% 6.50%
Three months ended Year ended
March 31, December 31,
2022 2021 2021
Selected operating ratios
Return on average assets (1) 1.68% 1.56% 1.68%
Return on average equity (1) 18.01% 17.88% 17.94%
Net interest margin 3.12% 3.34% 3.35%

(1) Annualized

Book value per share table March 31, December 31, September 30, March 31,
2022 2021 2021 2021
Book value per share $ 11.41 $ 11.37 $ 11.13 $ 10.42
Loan quality table March 31, December 31, September 30, March 31,
2022 2021 2021 2021
(dollars in thousands)
Nonperforming loans to total loans 0.20% 0.10% 0.24% 0.49%
Nonperforming assets to total assets 0.38% 0.33% 0.43% 0.40%
Allowance for credit losses to total loans 0.46% 0.48% 0.52% 0.58%
Nonaccrual loans $ 3,621 $ 3,161 $ 6,106 $ 11,961
Loans 90 days past due still accruing interest 4,597 461 1,569 1,762
Other real estate owned 18,873 18,873 19,488 17,343
Total nonperforming assets $ 27,091 $ 22,495 $ 27,163 $ 31,066
Gross dollar volume (GDV) (1) Three months ended
March 31, December 31, September 30, March 31,
2022 2021 2021 2021
(in thousands)
Prepaid and debit card GDV $ 28,564,582 $ 24,821,576 $ 24,392,188 $ 28,094,930

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

Business line quarterly summary
Quarter ended March 31, 2022
(dollars in millions)
Balances
% Growth
Major business lines Average approximate rates * Balances ** Year over year Linked quarter annualized
Loans
Institutional banking *** 2.6% $ 2,213 32% 33%
Small business lending**** 5.0% 729 2% 5%
Leasing 5.9% 539 11% 6%
Commercial real estate (non-SBA loans, at fair value) 4.7% 998 nm nm
Real estate bridge loans (recorded at book value) 4.0% 803 nm nm
Weighted average yield 3.9% $ 5,282 Non-interest income
% Growth
Deposits: Fintech solutions group Current quarter Year over year
Prepaid and debit card issuance, and other payments 0.1% $ 5,465 3% nm $ 20.6 (2%)

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

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

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

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

Disclaimer

The Bancorp Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 21:59:26 UTC.

Publicnow 2022

All news about THE BANCORP, INC.

Sales 2022 237 M

Net income 2022 130 M

Net Debt 2022

P/E ratio 2022 10,4x
Yield 2022
Capitalization 1 352 M
1 352 M
Capi. / Sales 2022 5,70x
Capi. / Sales 2023 4,86x
Nbr of Employees 650
Free-Float 91,8%



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The Bancorp, Inc. Technical Analysis Chart | MarketScreener

Technical analysis trends THE BANCORP, INC.

Short Term Mid-Term Long Term
Trends Bearish Neutral Neutral



Income Statement Evolution

Sell

Buy

Mean consensus BUY
Number of Analysts 3
Last Close Price 23,66 $
Average target price 38,33 $
Spread / Average Target 62,0%


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