WILMINGTON, Del.–(BUSINESS WIRE)–The Bancorp, Inc. (“The Bancorp” or “we”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the fourth quarter of 2022.
Highlights
- The Bancorp reported net income of $40.2 million, or $0.71 per diluted share, for the quarter ended December 31, 2022, compared to net income of $27.0 million, or $0.46 per diluted share, for the quarter ended December 31, 2021, or a 54% increase in income per diluted share.
- Return on assets and equity for the quarter ended December 31, 2022 amounted to 2.1% and 24%, respectively, compared to 1.7% and 17%, respectively, for the quarter ended December 31, 2021 (all percentages “annualized”).
- Net interest income increased 47% to $76.8 million for the quarter ended December 31, 2022, compared to $52.2 million for the quarter ended December 31, 2021.
- Net interest margin amounted to 4.21% for the quarter ended December 31, 2022, compared to 3.51% for the quarter ended December 31, 2021, and 3.69% for the quarter ended September 30, 2022.
- Excluding commercial loans, at fair value, which were originally generated for sale, total loans increased to $5.49 billion at December 31, 2022, compared to $5.27 billion at September 30, 2022 and $3.75 billion at December 31, 2021. Those increases reflected growth of 4% quarter over quarter and 45% year over year. Those percentage increases exclude the impact of $50.4 million of December 31, 2022 balances previously included in discontinued assets which were reclassified to loans held for investment in the first quarter of 2022.
- Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $3.25 billion, or 13%, to $28.07 billion for the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021. Total prepaid, debit card, ACH and other payment fees increased 10% to $21.8 million for fourth quarter 2022 compared to the fourth quarter of 2021.
- SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and investment advisor financing loans collectively increased 22% year over year and decreased 1% quarter over quarter to $2.50 billion at December 31, 2022.
- Small Business Loans, including those held at fair value, grew 10% year over year to $763.8 million at December 31, 2022, and 4% quarter over quarter. That growth is exclusive of PPP loan balances which amounted to $4.5 million and $44.8 million, respectively, at December 31, 2022 and December 31, 2021.
- Direct lease financing balances increased 19% year over year to $632.2 million at December 31, 2022, and 5% quarter over quarter.
- We resumed non-SBA commercial real estate bridge lending in the third quarter of 2021. At December 31, 2022, the balance of such real estate bridge loans, consisting of apartment buildings, was $1.67 billion compared to $1.49 billion at September 30, 2022, reflecting quarter over quarter growth of 12%. At December 31, 2021, these loans totaled $621.7 million.
- The average interest rate on $6.80 billion of average deposits and interest-bearing liabilities during the fourth quarter of 2022 was 1.77%. Average deposits of $6.62 billion for the fourth quarter of 2022, reflected an increase of 25% from the $5.31 billion of average deposits for the quarter ended December 31, 2021.
- As of December 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 9.63%, 13.40%, 13.87% and 13.40%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp and its wholly owned subsidiary, The Bancorp Bank, National Association, each remain well capitalized under banking regulations.
- Book value per common share at December 31, 2022 was $12.46 per share compared to $11.37 per share at December 31, 2021, an increase of 10%. Increases resulting from retained earnings were partially offset by reductions in the market value of securities available for sale, which are recognized through equity.
- The Bancorp repurchased 553,003 shares of its common stock at an average cost of $27.12 per share during the quarter ended December 31, 2022.
“We finished 2022 with significant improvements in profitability, NIM and GDV growth, “said CEO and President Damian Kozlowski. “Our team continues to be focused on further improving our arguably best fintech ecosystem in banking, maintaining a lower risk balance sheet than peers, continuing our rigorous risk management and increasing profitability. We believe 2023 will be another substantial move forward on all fronts and we confirm our guidance of $3.20 a share, an improvement of approximately 40% over 2022 EPS. We expect to increase our share repurchases to $25 million per quarter, or $100 million in 2023, from $15 million a quarter, or $60 million, in 2022.”
Conference Call Webcast
You may access the LIVE webcast of The Bancorp’s Quarterly Earnings Conference Call at 8:00 AM ET Friday, January 27, 2023 by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com. Or you may dial 1.888.396.8049, access code 92735961. 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 3, 2023 by dialing 1.877.674.7070, access code 735961#.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association, (or “The Bancorp Bank, N. A.”) 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 “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.
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The Bancorp, Inc. |
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Financial highlights |
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(unaudited) |
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Three months ended |
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Year ended |
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December 31, |
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December 31, |
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Consolidated condensed income statements |
2022 |
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2021 |
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2022 |
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2021 |
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(Dollars in thousands, except per share and share data) |
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Net interest income |
$ |
76,760 |
|
$ |
52,157 |
|
|
$ |
248,841 |
|
$ |
210,876 |
|
Provision for credit losses |
|
2,777 |
|
|
1,626 |
|
|
|
7,108 |
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|
3,110 |
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Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
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ACH, card and other payment processing fees |
|
2,383 |
|
|
1,921 |
|
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|
8,935 |
|
|
7,526 |
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Prepaid, debit card and related fees |
|
19,371 |
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17,776 |
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|
77,236 |
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|
74,654 |
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Net realized and unrealized gains on commercial |
|
|
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|
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loans, at fair value |
|
2,269 |
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|
6,004 |
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|
13,531 |
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|
14,885 |
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Leasing related income |
|
1,256 |
|
|
1,757 |
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|
4,822 |
|
|
6,457 |
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Other non-interest income |
|
461 |
|
|
768 |
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|
|
1,159 |
|
|
1,227 |
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Total non-interest income |
|
25,740 |
|
|
28,226 |
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|
|
105,683 |
|
|
104,749 |
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Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
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Salaries and employee benefits |
|
27,520 |
|
|
28,159 |
|
|
|
105,368 |
|
|
105,998 |
|
Data processing expense |
|
1,245 |
|
|
1,183 |
|
|
|
4,972 |
|
|
4,664 |
|
Legal expense |
|
703 |
|
|
1,499 |
|
|
|
3,878 |
|
|
6,848 |
|
Legal settlement |
|
— |
|
|
— |
|
|
|
1,152 |
|
|
— |
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Civil money penalty |
|
— |
|
|
— |
|
|
|
1,750 |
|
|
— |
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FDIC insurance |
|
944 |
|
|
351 |
|
|
|
3,270 |
|
|
5,586 |
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Software |
|
4,181 |
|
|
4,224 |
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|
|
16,211 |
|
|
15,659 |
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Other non-interest expense |
|
8,882 |
|
|
7,784 |
|
|
|
32,901 |
|
|
29,595 |
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Total non-interest expense |
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43,475 |
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|
43,200 |
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|
|
169,502 |
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|
168,350 |
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Income from continuing operations before income taxes |
|
56,248 |
|
|
35,557 |
|
|
|
177,914 |
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|
144,165 |
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Income tax expense |
|
16,007 |
|
|
8,529 |
|
|
|
47,701 |
|
|
33,724 |
|
Net income from continuing operations |
|
40,241 |
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|
27,028 |
|
|
|
130,213 |
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|
110,441 |
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Discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
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(Loss) income from discontinued operations before income taxes |
|
— |
|
|
(36 |
) |
|
|
— |
|
|
288 |
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Income tax expense |
|
— |
|
|
— |
|
|
|
— |
|
|
76 |
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Net (loss) income from discontinued operations, net of tax |
|
— |
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|
(36 |
) |
|
|
— |
|
|
212 |
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Net income |
$ |
40,241 |
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$ |
26,992 |
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|
$ |
130,213 |
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$ |
110,653 |
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Net income per share from continuing operations – basic |
$ |
0.72 |
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$ |
0.47 |
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$ |
2.30 |
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$ |
1.93 |
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Net income per share from discontinued operations – basic |
$ |
— |
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$ |
— |
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|
$ |
— |
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$ |
— |
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Net income per share – basic |
$ |
0.72 |
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$ |
0.47 |
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|
$ |
2.30 |
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$ |
1.93 |
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Net income per share from continuing operations – diluted |
$ |
0.71 |
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$ |
0.46 |
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$ |
2.27 |
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$ |
1.88 |
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Net income per share from discontinued operations – diluted |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
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Net income per share – diluted |
$ |
0.71 |
|
$ |
0.46 |
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|
$ |
2.27 |
|
$ |
1.88 |
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Weighted average shares – basic |
|
55,885,015 |
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56,966,661 |
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|
56,556,303 |
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|
57,190,311 |
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Weighted average shares – diluted |
|
56,588,011 |
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|
58,369,204 |
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|
57,268,946 |
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|
58,830,437 |
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Condensed consolidated balance sheets |
December 31, |
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September 30, |
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June 30, |
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December 31, |
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2022 (unaudited) |
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2022 (unaudited) |
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2022 (unaudited) |
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2021 |
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(Dollars in thousands, except per share and share data) |
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Assets: |
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Cash and cash equivalents |
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Cash and due from banks |
$ |
24,063 |
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|
$ |
22,537 |
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|
$ |
12,873 |
|
|
$ |
5,382 |
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|
Interest earning deposits at Federal Reserve Bank |
|
864,126 |
|
|
|
700,175 |
|
|
|
329,992 |
|
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|
596,402 |
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Total cash and cash equivalents |
|
888,189 |
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|
722,712 |
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|
|
342,865 |
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|
601,784 |
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Investment securities, available-for-sale, at fair value |
|
766,016 |
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|
790,594 |
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|
|
826,616 |
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|
|
953,709 |
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Commercial loans, at fair value |
|
589,143 |
|
|
|
818,040 |
|
|
|
995,493 |
|
|
|
1,388,416 |
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Loans, net of deferred fees and costs |
|
5,486,853 |
|
|
|
5,267,375 |
|
|
|
4,754,697 |
|
|
|
3,747,224 |
|
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Allowance for credit losses |
|
(22,374 |
) |
|
|
(19,689 |
) |
|
|
(19,087 |
) |
|
|
(17,806 |
) |
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Loans, net |
|
5,464,479 |
|
|
|
5,247,686 |
|
|
|
4,735,610 |
|
|
|
3,729,418 |
|
|
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock |
|
12,629 |
|
|
|
12,629 |
|
|
|
1,643 |
|
|
|
1,663 |
|
|
Premises and equipment, net |
|
18,401 |
|
|
|
18,443 |
|
|
|
16,693 |
|
|
|
16,156 |
|
|
Accrued interest receivable |
|
32,005 |
|
|
|
25,506 |
|
|
|
19,264 |
|
|
|
17,871 |
|
|
Intangible assets, net |
|
2,049 |
|
|
|
2,149 |
|
|
|
2,248 |
|
|
|
2,447 |
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Other real estate owned |
|
21,210 |
|
|
|
18,873 |
|
|
|
18,873 |
|
|
|
18,873 |
|
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Deferred tax asset, net |
|
19,703 |
|
|
|
27,241 |
|
|
|
23,344 |
|
|
|
12,667 |
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Assets held-for-sale from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,268 |
|
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Other assets |
|
89,176 |
|
|
|
93,201 |
|
|
|
137,086 |
|
|
|
96,967 |
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|
Total assets |
$ |
7,903,000 |
|
|
$ |
7,777,074 |
|
|
$ |
7,119,735 |
|
|
$ |
6,843,239 |
|
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Liabilities: |
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Deposits |
|
|
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|
|
|
|
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|
|
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Demand and interest checking |
$ |
6,559,617 |
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|
$ |
5,934,591 |
|
|
$ |
5,394,562 |
|
|
$ |
5,561,365 |
|
|
Savings and money market |
|
140,496 |
|
|
|
575,381 |
|
|
|
486,189 |
|
|
|
415,546 |
|
|
Time deposits, $100,000 and over |
|
330,000 |
|
401,331 |
|
— |
|
— |
|
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Total deposits |
|
7,030,113 |
|
6,911,303 |
|
5,880,751 |
|
5,976,911 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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Securities sold under agreements to repurchase |
|
42 |
|
|
|
42 |
|
|
|
42 |
|
|
|
42 |
|
|
Short-term borrowings |
|
— |
|
|
|
— |
|
|
|
385,000 |
|
|
|
— |
|
|
Senior debt |
|
99,050 |
|
|
|
98,958 |
|
|
|
98,866 |
|
|
|
98,682 |
|
|
Subordinated debenture |
|
13,401 |
|
|
|
13,401 |
|
|
|
13,401 |
|
|
|
13,401 |
|
|
Other long-term borrowings |
|
10,028 |
|
|
|
38,928 |
|
|
|
39,125 |
|
|
|
39,521 |
|
|
Other liabilities |
|
56,335 |
|
50,704 |
|
46,014 |
|
62,228 |
|
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|
Total liabilities |
$ |
7,208,969 |
|
$ |
7,113,336 |
|
$ |
6,463,199 |
|
$ |
6,190,785 |
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|||
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|
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|
|
|
|
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|
|
|
||||
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Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Common stock – authorized, 75,000,000 shares of $1.00 par value; 55,689,627 and 57,370,563 shares issued and outstanding at December 31, 2022 and 2021, respectively |
|
55,690 |
|
|
|
56,202 |
|
|
|
56,865 |
|
|
|
57,371 |
|
|
Additional paid-in capital |
|
299,279 |
|
|
|
311,569 |
|
|
|
323,774 |
|
|
|
349,686 |
|
|
Retained earnings |
|
369,319 |
|
|
|
329,078 |
|
|
|
298,474 |
|
|
|
239,106 |
|
|
Accumulated other comprehensive (loss) income |
|
(30,257 |
) |
(33,111 |
) |
(22,577 |
) |
6,291 |
|
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|
Total shareholders’ equity |
|
694,031 |
|
|
|
663,738 |
|
|
|
656,536 |
|
|
|
652,454 |
|
|
|
|
|
|
|
|
|
|
||||||||
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Total liabilities and shareholders’ equity |
$ |
7,903,000 |
|
$ |
7,777,074 |
|
$ |
7,119,735 |
|
$ |
6,843,239 |
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Average balance sheet and net interest income |
|
Three months ended December 31, 2022 |
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|
Three months ended December 31, 2021 |
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(Dollars in thousands; unaudited) |
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Average |
|
|
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|
|
Average |
|
|
Average |
|
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|
|
Average |
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Assets: |
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
Rate |
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Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loans, net of deferred fees and costs* |
$ |
6,083,587 |
|
|
$ |
94,477 |
|
|
6.21 |
% |
|
$ |
4,766,271 |
|
|
$ |
48,792 |
|
4.09 |
% |
|
Leases-bank qualified** |
|
2,952 |
|
|
|
50 |
|
|
6.78 |
% |
|
|
4,465 |
|
|
|
76 |
|
6.81 |
% |
|
Investment securities-taxable |
|
782,046 |
|
|
|
8,483 |
|
|
4.34 |
% |
|
|
954,172 |
|
|
|
5,770 |
|
2.42 |
% |
|
Investment securities-nontaxable** |
|
3,559 |
|
|
|
32 |
|
|
3.60 |
% |
|
|
3,558 |
|
|
|
31 |
|
3.49 |
% |
|
Interest earning deposits at Federal Reserve Bank |
|
424,255 |
|
|
|
3,886 |
|
|
3.66 |
% |
|
|
208,120 |
|
|
|
65 |
|
0.12 |
% |
|
Net interest earning assets |
|
7,296,399 |
|
|
|
106,928 |
|
|
5.86 |
% |
|
|
5,936,586 |
|
|
|
54,734 |
|
3.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Allowance for credit losses |
|
(20,227 |
) |
|
|
|
|
|
|
|
|
(17,108 |
) |
|
|
|
|
|
||
|
Assets held-for-sale from discontinued operations |
|
— |
|
|
|
— |
|
|
— |
|
|
|
83,821 |
|
|
|
708 |
|
3.38 |
% |
|
Other assets |
|
223,692 |
|
|
|
|
|
|
|
|
|
189,760 |
|
|
|
|
|
|
||
|
|
$ |
7,499,864 |
|
|
|
|
|
|
|
|
$ |
6,193,059 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Liabilities and Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Demand and interest checking |
$ |
5,891,947 |
|
|
$ |
21,350 |
|
|
1.45 |
% |
|
$ |
4,931,891 |
|
|
$ |
1,015 |
|
0.08 |
% |
|
Savings and money market |
|
474,302 |
|
|
|
4,332 |
|
|
3.65 |
% |
|
|
373,381 |
|
|
|
114 |
|
0.12 |
% |
|
Time deposits |
|
257,231 |
|
|
|
2,193 |
3.41 |
% |
|
|
— |
|
|
|
— |
— |
|
|||
|
Total deposits |
|
6,623,480 |
|
|
|
27,875 |
|
|
1.68 |
% |
|
|
5,305,272 |
|
|
|
1,129 |
|
0.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Short-term borrowings |
|
26,847 |
|
|
|
271 |
|
|
4.04 |
% |
|
|
53,315 |
|
|
|
34 |
|
0.26 |
% |
|
Repurchase agreements |
|
42 |
|
|
|
— |
|
|
— |
|
|
|
41 |
|
|
|
— |
|
— |
|
|
Long-term borrowings |
|
38,951 |
|
|
|
498 |
|
|
5.11 |
% |
|
|
— |
|
|
|
— |
|
— |
|
|
Subordinated debentures |
|
13,401 |
|
|
|
226 |
6.75 |
% |
|
|
13,401 |
|
|
|
112 |
3.34 |
% |
|||
|
Senior debt |
|
99,005 |
|
|
|
1,280 |
5.17 |
% |
|
|
100,419 |
|
|
|
1,280 |
5.10 |
% |
|||
|
Total deposits and liabilities |
|
6,801,726 |
|
|
|
30,150 |
|
|
1.77 |
% |
|
|
5,472,448 |
|
|
|
2,555 |
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other liabilities |
|
19,254 |
|
|
|
|
|
|
|
|
|
75,395 |
|
|
|
|
|
|
||
|
Total liabilities |
|
6,820,980 |
|
|
|
|
|
|
|
|
|
5,547,843 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Shareholders’ equity |
|
678,884 |
|
|
|
|
|
|
|
|
|
645,216 |
|
|
|
|
|
|
||
|
|
$ |
7,499,864 |
|
|
|
|
|
|
|
|
$ |
6,193,059 |
|
|
|
|
|
|
||
|
Net interest income on tax equivalent basis** |
|
|
|
$ |
76,778 |
|
|
|
|
|
$ |
52,887 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Tax equivalent adjustment |
|
|
|
18 |
|
|
|
|
|
|
22 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net interest income |
|
|
$ |
76,760 |
|
|
|
$ |
52,865 |
|||||||||||
|
Net interest margin ** |
|
|
|
|
|
|
|
4.21 |
% |
|
|
|
|
|
|
|
3.51 |
% |
||
* Includes commercial loans, at fair value. All periods include non-accrual loans.
** Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.
NOTE: In the table above, interest on loans for 2022 and 2021 includes $12,000 and $991,000, respectively, of interest and fees on PPP loans.
|
Average balance sheet and net interest income |
Year ended December 31, 2022 |
|
Year ended December 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* |
$ |
5,670,957 |
|
|
$ |
275,651 |
|
|
4.86 |
% |
|
$ |
4,597,977 |
|
|
$ |
192,338 |
|
4.18 |
% |
|
Leases-bank qualified** |
|
3,479 |
|
|
|
235 |
|
|
6.75 |
% |
|
|
5,557 |
|
|
|
377 |
|
6.78 |
% |
|
Investment securities-taxable |
|
855,629 |
|
|
|
25,598 |
|
|
2.99 |
% |
|
|
1,059,229 |
|
|
|
28,661 |
|
2.71 |
% |
|
Investment securities-nontaxable** |
|
3,559 |
|
|
|
125 |
|
|
3.51 |
% |
|
|
3,757 |
|
|
|
130 |
|
3.46 |
% |
|
Interest earning deposits at Federal Reserve Bank |
|
479,791 |
|
|
|
6,762 |
|
|
1.41 |
% |
|
|
637,056 |
|
|
|
715 |
|
0.11 |
% |
|
Net interest earning assets |
|
7,013,415 |
|
|
|
308,371 |
|
|
4.40 |
% |
|
|
6,303,576 |
|
|
|
222,221 |
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Allowance for credit losses |
|
(19,374 |
) |
|
|
|
|
|
|
|
|
(16,469 |
) |
|
|
|
|
|
||
|
Assets held for sale from discontinued operations |
|
— |
|
|
|
— |
|
|
— |
|
|
|
95,527 |
|
|
|
3,096 |
|
3.24 |
% |
|
Other assets |
|
213,491 |
|
|
|
|
|
|
|
|
|
217,476 |
|
|
|
|
|
|
||
|
|
$ |
7,207,532 |
|
|
|
|
|
|
|
|
$ |
6,600,110 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Liabilities and Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Demand and interest checking |
$ |
5,670,818 |
|
|
$ |
39,872 |
|
|
0.70 |
% |
|
$ |
5,321,283 |
|
|
$ |
5,022 |
|
0.09 |
% |
|
Savings and money market |
|
510,370 |
|
|
|
8,524 |
|
|
1.67 |
% |
|
|
427,708 |
|
|
|
601 |
|
0.14 |
% |
|
Time deposits |
|
86,907 |
|
|
|
2,740 |
3.15 |
% |
|
|
— |
|
|
|
— |
— |
|
|||
|
Total deposits |
|
6,268,095 |
|
|
|
51,136 |
|
|
0.82 |
% |
|
|
5,748,991 |
|
|
|
5,623 |
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Short-term borrowings |
|
60,312 |
|
|
|
1,538 |
|
|
2.55 |
% |
|
|
19,958 |
|
|
|
49 |
|
0.25 |
% |
|
Repurchase agreements |
|
41 |
|
|
|
— |
|
|
— |
|
|
|
41 |
|
|
|
— |
|
— |
|
|
Long-term borrowings |
|
39,202 |
|
|
|
1,004 |
|
|
2.56 |
% |
|
|
— |
|
|
|
— |
|
— |
|
|
Subordinated debentures |
|
13,401 |
|
|
|
658 |
4.91 |
% |
|
|
13,401 |
|
|
|
449 |
3.35 |
% |
|||
|
Senior debt |
|
98,865 |
|
|
|
5,118 |
5.18 |
% |
|
|
100,283 |
|
|
|
5,118 |
5.10 |
% |
|||
|
Total deposits and liabilities |
|
6,479,916 |
|
|
|
59,454 |
|
|
0.92 |
% |
|
|
5,882,674 |
|
|
|
11,239 |
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other liabilities |
|
54,374 |
|
|
|
|
|
|
|
|
|
100,627 |
|
|
|
|
|
|
||
|
Total liabilities |
|
6,534,290 |
|
|
|
|
|
|
|
|
|
5,983,301 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Shareholders’ equity |
|
673,242 |
|
|
|
|
|
|
|
|
|
616,809 |
|
|
|
|
|
|
||
|
|
$ |
7,207,532 |
|
|
|
|
|
|
|
|
$ |
6,600,110 |
|
|
|
|
|
|
||
|
Net interest income on tax equivalent basis** |
|
|
|
$ |
248,917 |
|
|
|
|
|
$ |
214,078 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Tax equivalent adjustment |
|
|
|
76 |
|
|
|
|
|
|
106 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net interest income |
|
|
$ |
248,841 |
|
|
|
$ |
213,972 |
|||||||||||
|
Net interest margin ** |
|
|
|
|
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
3.35 |
% |
||
* Includes commercial loans, at fair value. All periods include non-accrual loans.
** Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2022 and 2021.
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 materially increase average loans or assets and which are not expected to recur. Interest on loans for 2022 and 2021 includes $514,000 and $5.8 million, respectively, of interest and fees on PPP loans.
|
|
|
|
|
|
|
||
|
Allowance for credit losses |
|
Year ended |
|||||
|
|
December 31, |
|
December 31, |
||||
|
|
2022 (unaudited) |
|
2021 |
||||
|
|
(Dollars in thousands) |
||||||
|
|
|
|
|
|
|
||
|
Balance in the allowance for credit losses at beginning of period (1) |
$ |
17,806 |
|
|
$ |
16,082 |
|
|
|
|
|
|
|
|
||
|
Loans charged-off: |
|
|
|
|
|
||
|
SBA non-real estate |
|
885 |
|
|
|
1,138 |
|
|
SBA commercial mortgage |
|
— |
|
|
|
417 |
|
|
Direct lease financing |
|
576 |
|
|
|
412 |
|
|
SBLOC |
|
— |
|
|
|
15 |
|
|
Consumer – home equity |
|
— |
|
|
|
10 |
|
|
Consumer – other |
|
— |
|
|
|
14 |
|
|
Total |
|
1,461 |
|
|
|
2,006 |
|
|
|
|
|
|
|
|
||
|
Recoveries: |
|
|
|
|
|
||
|
SBA non-real estate |
|
140 |
|
|
|
51 |
|
|
SBA commercial mortgage |
|
— |
|
|
|
9 |
|
|
Direct lease financing |
|
124 |
|
|
|
58 |
|
|
Consumer – home equity |
|
— |
|
|
|
1,099 |
|
|
Other loans |
|
24 |
|
|
|
— |
|
|
Total |
|
288 |
|
|
|
1,217 |
|
|
Net charge-offs |
|
1,173 |
|
|
|
789 |
|
|
Provision for credit losses, excluding commitment provision |
|
5,741 |
|
|
|
2,513 |
|
|
|
|
|
|
|
|
||
|
Balance in allowance for credit losses at end of period |
$ |
22,374 |
|
|
$ |
17,806 |
|
|
Net charge-offs/average loans |
|
0.03 |
% |
|
|
0.03 |
% |
|
Net charge-offs/average assets |
|
0.02 |
% |
|
|
0.01 |
% |
(1) Excludes activity from discontinued operations.
|
|
|||||||||||
|
Loan portfolio |
December 31, |
|
September 30, |
|
June 30, |
|
December 31, |
||||
|
|
2022 (unaudited) |
|
2022 (unaudited) |
|
2022 (unaudited) |
|
2021 |
||||
|
|
(Dollars in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL non-real estate |
$ |
108,954 |
|
$ |
116,080 |
|
$ |
112,854 |
|
$ |
147,722 |
|
SBL commercial mortgage |
|
474,496 |
|
|
429,865 |
|
|
425,219 |
|
|
361,171 |
|
SBL construction |
|
30,864 |
26,841 |
27,042 |
27,199 |
||||||
|
Small business loans |
|
614,314 |
|
|
572,786 |
|
|
565,115 |
|
|
536,092 |
|
Direct lease financing |
|
632,160 |
|
|
599,796 |
|
|
583,086 |
|
|
531,012 |
|
SBLOC / IBLOC * |
|
2,332,469 |
|
|
2,369,106 |
|
|
2,274,256 |
|
|
1,929,581 |
|
Advisor financing ** |
|
172,468 |
|
|
168,559 |
|
|
155,235 |
|
|
115,770 |
|
Real estate bridge loans |
|
1,669,031 |
|
|
1,488,119 |
|
|
1,106,875 |
|
|
621,702 |
|
Other loans *** |
|
61,679 |
64,980 |
63,514 |
5,014 |
||||||
|
|
|
5,482,121 |
|
|
5,263,346 |
|
|
4,748,081 |
|
|
3,739,171 |
|
Unamortized loan fees and costs |
|
4,732 |
4,029 |
6,616 |
8,053 |
||||||
|
Total loans, including unamortized fees and costs |
$ |
5,486,853 |
$ |
5,267,375 |
$ |
4,754,697 |
$ |
3,747,224 |
|||
|
Small business portfolio |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
December 31, |
|
|
|
2022 (unaudited) |
|
|
2022 (unaudited) |
|
|
2022 (unaudited) |
|
|
2021 |
|
|
|
(Dollars in thousands) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL, including unamortized fees and costs |
$ |
621,641 |
$ |
579,156 |
$ |
571,559 |
|
$ |
541,437 |
||
|
SBL, included in loans, at fair value |
|
146,717 |
159,914 |
168,579 |
|
|
199,585 |
||||
|
Total small business loans **** |
$ |
768,358 |
$ |
739,070 |
$ |
740,138 |
|
$ |
741,022 |
||
* 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 70% of the estimated business enterprise value, based on a third-party valuation, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.
*** Includes demand deposit overdrafts reclassified as loan balances totaling $2.6 million and $322,000 at December 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 small business loans held at fair value are comprised of the government guaranteed portion of certain SBA loans at the dates indicated.
Small business loans as of December 31, 2022
|
|
|
Loan principal |
|
|
|
|
(Dollars in millions) |
|
|
U.S. government guaranteed portion of SBA loans (a) |
|
$ |
375 |
|
Paycheck Protection Program loans (PPP) (a) |
|
|
5 |
|
Commercial mortgage SBA (b) |
|
|
248 |
|
Construction SBA (c) |
|
|
10 |
|
Non-guaranteed portion of U.S. government guaranteed loans (d) |
|
|
100 |
|
Non-SBA small business loans |
|
|
23 |
|
Total principal |
|
$ |
761 |
|
Unamortized fees and costs |
|
|
7 |
|
Total small business loans |
|
$ |
768 |
(a) This is the portion of SBA 7a loans (7a) and PPP loans that 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.
Contacts
The Bancorp, Inc.
Andres Viroslav
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
