The Bancorp, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Updates 2024 Guidance
- None.
- None.
Insights
The Bancorp, Inc.'s reported net income of $44.0 million for Q4 2023, reflecting a 9.4% increase from Q4 2022, is a positive indicator of the company's profitability amidst a challenging economic environment. The adjusted EPS of $0.95, when accounting for the provision for credit loss, surpasses the reported $0.81, demonstrating the company's underlying earnings power. The net interest income surge by 20% is a direct consequence of the Federal Reserve's rate hikes, which have favorably impacted variable rate loans and securities. This significant increase in net interest margin to 5.26% from 4.21% year-over-year suggests a robust yield on earning assets, which is commendable given the competitive banking sector.
Furthermore, the reported growth in gross dollar volume (GDV) by 13% indicates strong consumer spending via prepaid and debit cards, which is a vital revenue stream for The Bancorp. The consistent growth in small business loans and real estate bridge loans, particularly in the apartment building sector, suggests a strategic focus on niche financing markets that may offer higher yields. However, the 26% decline in security backed and insurance backed lines of credit warrants attention, as it could signal a strategic shift or a response to market conditions.
Lastly, The Bancorp's emphasis on safety and soundness is evident in its well-capitalized status, with all capital ratios comfortably above regulatory minimums. The 22% increase in book value per common share is a strong indicator of the company's value growth over the year. The share repurchase program, which reduced outstanding shares, may also contribute to future EPS growth, providing an optimistic outlook for shareholders.
The Bancorp's performance, particularly the 15% increase in payment fees and the growth in GDV, reflects consumer resilience and the effectiveness of The Bancorp's partnership model in the payment space. The growth in prepaid and debit card usage aligns with broader industry trends towards digital and cashless transactions, which have been accelerated by the pandemic and changes in consumer behavior. The organic growth with existing partners and the onboarding of new clients within the past year suggest that The Bancorp is successfully expanding its market share in the fintech ecosystem.
Moreover, the increase in small business loans and direct lease financing balances indicates a strategic focus on sectors that may be less sensitive to economic downturns or that are experiencing growth despite broader economic challenges. The real estate bridge loan growth, specifically in apartment buildings, aligns with trends in the housing market where rental demand remains strong. This focus on real estate lending, particularly in the multifamily sector, could provide a stable source of revenue for The Bancorp, given the ongoing demand for housing.
The Bancorp's financial results are reflective of the broader macroeconomic environment, where interest rate hikes by the Federal Reserve have led to increased net interest margins for banks. The Bancorp's ability to leverage these rate hikes to improve its net interest income is indicative of sound asset-liability management. The decrease in average deposits, however, may be a result of the bank's strategy to exit higher-cost funds, which could be a prudent move to improve net interest margin in a rising rate environment.
Additionally, the bank's capital ratios, which are well above the regulatory requirements, provide a buffer against potential economic shocks and position the bank favorably for future growth or adverse economic conditions. The guidance for 2024, projecting $4.25 a share, suggests confidence in the bank's ability to maintain profitability and possibly benefit from ongoing market conditions. However, the exclusion of the impact of share buybacks in this guidance should be noted, as buybacks can artificially inflate EPS figures.
Highlights
-
The Bancorp reported net income of
$44.0 million $0.81 $40.2 million $0.71 $10.0 million $0.95 -
Return on assets and equity for the quarter ended December 31, 2023 amounted to
2.4% and22% , respectively, compared to2.1% and24% , respectively, for the quarter ended December 31, 2022 (all percentages “annualized”). -
Net interest income increased
20% to$92.2 million $76.8 million -
Net interest margin amounted to
5.26% for the quarter ended December 31, 2023, compared to4.21% for the quarter ended December 31, 2022, and5.07% for the quarter ended September 30, 2023. -
Loans, net of deferred fees and costs were
$5.36 billion $5.20 billion $5.49 billion 3% quarter over linked quarter and a decrease of2% year over year. -
Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased
$3.84 billion 13% , to$33.29 billion 15% to$25.1 million -
Small business loans (“SBL”), including those held at fair value, amounted to
$896.2 million 13% higher year over year, and4% quarter over linked quarter, excluding$28.6 million -
Direct lease financing balances increased
8% year over year to$685.7 million 2% quarter over September 30, 2023. -
At December 31, 2023, real estate bridge loans of
$2.00 billion 8% compared to the$1.85 billion 20% compared to the December 31, 2022 balance of$1.67 billion -
Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”) and investment advisor financing loans collectively decreased
26% year over year and decreased4% quarter over linked quarter to$1.85 billion -
The average interest rate on
$6.37 billion 2.51% . Average deposits of$6.25 billion 6% from the$6.62 billion 1% decrease from$6.29 billion $200 million $300.7 million -
The Bancorp emphasizes safety and soundness, and liquidity. The vast majority of its funding is comprised of insured and small balance accounts. The Bancorp also has lines of credit with
U.S. government agencies totaling approximately$2.7 billion -
As of December 31, 2023, 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
11.19% ,15.66% ,16.23% and15.66% , respectively, compared to well-capitalized minimums of5% ,8% ,10% and6.5% , 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, 2023 was
$15.17 $12.46 22% . -
The Bancorp repurchased 664,499 shares of its common stock at an average cost of
$37.62
*The Bank purchased a
|
|||||
|
|
Net Income (000’s) |
EPS |
||
GAAP |
|
|
|||
Provision for credit loss on trust preferred security, net of tax effect |
7,489 |
0.14 |
|||
As adjusted, non-GAAP |
|
|
CEO and President Damian Kozlowski commented, “In 2023, we rode the waves of market turmoil and interest rate hikes and demonstrated the superiority of our rigorous commitment to our business partners, safety and soundness and shareholder advocacy. The strength of our business model and our comprehensive and integrated risk management showed that sound fundamental banking can reduce event risk and create opportunities for exemplar performance even in times of economic dislocations. We are confirming 2024 guidance of
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, January 26, 2024 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or you may dial 1.888.259.6580, conference code 18545154. 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 2, 2024 by dialing 1.877.674.7070, access code 545154#.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), headquartered in
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, |
||||||||
Consolidated condensed income statements |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
(Dollars in thousands, except per share and share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
92,159 |
|
$ |
76,760 |
|
$ |
354,052 |
|
$ |
248,841 |
Provision for credit losses on loans |
|
4,314 |
|
|
2,777 |
|
|
8,330 |
|
|
7,108 |
Provision for credit loss on security |
|
10,000 |
|
|
— |
|
|
10,000 |
|
|
— |
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
ACH, card and other payment processing fees |
|
2,669 |
|
|
2,383 |
|
|
9,822 |
|
|
8,935 |
Prepaid, debit card and related fees |
|
22,404 |
|
|
19,371 |
|
|
89,417 |
|
|
77,236 |
Net realized and unrealized (losses) gains on commercial |
|
|
|
|
|
|
|
|
|
|
|
loans, at fair value |
|
(426) |
|
|
2,269 |
|
|
3,745 |
|
|
13,531 |
Leasing related income |
|
1,556 |
|
|
1,256 |
|
|
6,324 |
|
|
4,822 |
Other non-interest income |
|
786 |
|
|
461 |
|
|
2,786 |
|
|
1,159 |
Total non-interest income |
|
26,989 |
|
|
25,740 |
|
|
112,094 |
|
|
105,683 |
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
27,628 |
|
|
27,520 |
|
|
121,055 |
|
|
105,368 |
Data processing expense |
|
1,324 |
|
|
1,245 |
|
|
5,447 |
|
|
4,972 |
Legal expense |
|
740 |
|
|
703 |
|
|
3,850 |
|
|
3,878 |
Legal settlement |
|
— |
|
|
— |
|
|
— |
|
|
1,152 |
Civil money penalty |
|
— |
|
|
— |
|
|
— |
|
|
1,750 |
FDIC insurance |
|
724 |
|
|
944 |
|
|
2,957 |
|
|
3,270 |
Software |
|
4,368 |
|
|
4,181 |
|
|
17,349 |
|
|
16,211 |
Other non-interest expense |
|
10,826 |
|
|
8,882 |
|
|
40,384 |
|
|
32,901 |
Total non-interest expense |
|
45,610 |
|
|
43,475 |
|
|
191,042 |
|
|
169,502 |
Income before income taxes |
|
59,224 |
|
|
56,248 |
|
|
256,774 |
|
|
177,914 |
Income tax expense |
|
15,196 |
|
|
16,007 |
|
|
64,478 |
|
|
47,701 |
Net income |
|
44,028 |
|
|
40,241 |
|
|
192,296 |
|
|
130,213 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - basic |
$ |
0.82 |
|
$ |
0.72 |
|
$ |
3.52 |
|
$ |
2.30 |
|
|
|
|
|
|
||||||
Net income per share - diluted |
$ |
0.81 |
|
$ |
0.71 |
|
$ |
3.49 |
|
$ |
2.27 |
Weighted average shares - basic |
|
53,549,138 |
|
|
55,885,015 |
|
|
54,506,065 |
|
|
56,556,303 |
Weighted average shares - diluted |
|
54,201,312 |
|
|
56,588,011 |
|
|
55,053,497 |
|
|
57,268,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated balance sheets |
December 31, |
|
September 30, |
|
June 30, |
|
December 31, |
||||
|
2023 (unaudited) |
|
2023 (unaudited) |
|
2023 (unaudited) |
|
2022 |
||||
|
|
(Dollars in thousands, except share data) |
|||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
4,820 |
|
$ |
4,881 |
|
$ |
6,496 |
|
$ |
24,063 |
Interest earning deposits at Federal Reserve Bank |
|
1,033,270 |
|
|
898,533 |
|
|
874,050 |
|
|
864,126 |
Total cash and cash equivalents |
|
1,038,090 |
|
|
903,414 |
|
|
880,546 |
|
|
888,189 |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities, available-for-sale, at fair value, net of |
|
747,534 |
|
|
756,636 |
|
|
776,410 |
|
|
766,016 |
Commercial loans, at fair value |
|
332,766 |
|
|
379,603 |
|
|
396,581 |
|
|
589,143 |
Loans, net of deferred fees and costs |
|
5,361,139 |
|
|
5,198,972 |
|
|
5,267,574 |
|
|
5,486,853 |
Allowance for credit losses |
|
(27,378) |
|
|
(24,145) |
|
|
(23,284) |
|
|
(22,374) |
Loans, net |
|
5,333,761 |
|
|
5,174,827 |
|
|
5,244,290 |
|
|
5,464,479 |
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock |
|
15,591 |
|
|
20,157 |
|
|
20,157 |
|
|
12,629 |
Premises and equipment, net |
|
27,474 |
|
|
28,978 |
|
|
26,408 |
|
|
18,401 |
Accrued interest receivable |
|
37,534 |
|
|
34,159 |
|
|
34,062 |
|
|
32,005 |
Intangible assets, net |
|
1,651 |
|
|
1,751 |
|
|
1,850 |
|
|
2,049 |
Other real estate owned |
|
16,949 |
|
|
18,756 |
|
|
20,952 |
|
|
21,210 |
Deferred tax asset, net |
|
21,219 |
|
|
20,379 |
|
|
19,215 |
|
|
19,703 |
Other assets |
|
133,126 |
|
|
127,107 |
|
|
122,435 |
|
|
89,176 |
Total assets |
$ |
7,705,695 |
|
$ |
7,465,767 |
|
$ |
7,542,906 |
|
$ |
7,903,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
6,630,251 |
|
$ |
6,455,043 |
|
$ |
6,554,967 |
|
$ |
6,559,617 |
Savings and money market |
|
50,659 |
|
|
49,428 |
|
|
68,084 |
|
|
140,496 |
Time deposits, |
|
— |
— |
— |
330,000 |
||||||
Total deposits |
|
6,680,910 |
6,504,471 |
6,623,051 |
7,030,113 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
42 |
|
|
42 |
|
|
42 |
|
|
42 |
Senior debt |
|
95,859 |
|
|
95,771 |
|
|
95,682 |
|
|
99,050 |
Subordinated debenture |
|
13,401 |
|
|
13,401 |
|
|
13,401 |
|
|
13,401 |
Other long-term borrowings |
|
38,561 |
|
|
9,861 |
|
|
9,917 |
|
|
10,028 |
Other liabilities |
|
69,641 |
68,533 |
51,646 |
56,335 |
||||||
Total liabilities |
$ |
6,898,414 |
$ |
6,692,079 |
$ |
6,793,739 |
$ |
7,208,969 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
Common stock - authorized, 75,000,000 shares of |
|
53,203 |
|
|
53,867 |
|
|
54,542 |
|
|
55,690 |
Additional paid-in capital |
|
212,431 |
|
|
234,320 |
|
|
256,115 |
|
|
299,279 |
Retained earnings |
|
561,615 |
|
|
517,587 |
|
|
467,450 |
|
|
369,319 |
Accumulated other comprehensive loss |
|
(19,968) |
(32,086) |
(28,940) |
(30,257) |
||||||
Total shareholders' equity |
|
807,281 |
|
|
773,688 |
|
|
749,167 |
|
|
694,031 |
|
|
|
|
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
7,705,695 |
$ |
7,465,767 |
$ |
7,542,906 |
$ |
7,903,000 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance sheet and net interest income |
|
Three months ended December 31, 2023 |
|
|
Three months ended December 31, 2022 |
|||||||||||
|
|
(Dollars in thousands; unaudited) |
||||||||||||||
|
|
Average |
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
Average |
Assets: |
|
Balance |
|
|
Interest(1) |
|
|
Rate |
|
|
Balance |
|
|
Interest(1) |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred fees and costs(2) |
$ |
5,583,467 |
|
$ |
112,334 |
|
|
|
|
$ |
6,083,587 |
|
$ |
94,477 |
|
|
Leases-bank qualified(3) |
|
4,658 |
|
|
109 |
|
|
|
|
|
2,952 |
|
|
50 |
|
|
Investment securities-taxable |
|
747,384 |
|
|
10,258 |
|
|
|
|
|
782,046 |
|
|
8,483 |
|
|
Investment securities-nontaxable(3) |
|
2,895 |
|
|
49 |
|
|
|
|
|
3,559 |
|
|
32 |
|
|
Interest earning deposits at Federal Reserve Bank |
|
677,524 |
|
|
9,356 |
|
|
|
|
|
424,255 |
|
|
3,886 |
|
|
Net interest earning assets |
|
7,015,928 |
|
|
132,106 |
|
|
|
|
|
7,296,399 |
|
|
106,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
(24,070) |
|
|
|
|
|
|
|
|
(20,227) |
|
|
|
|
|
Other assets |
|
356,785 |
|
|
|
|
|
|
|
|
223,692 |
|
|
|
|
|
|
$ |
7,348,643 |
|
|
|
|
|
|
|
$ |
7,499,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
6,204,048 |
|
$ |
37,830 |
|
|
|
|
$ |
5,891,947 |
|
$ |
21,350 |
|
|
Savings and money market |
|
46,428 |
|
|
392 |
|
|
|
|
|
474,302 |
|
|
4,332 |
|
|
Time deposits |
|
— |
|
|
— |
— |
|
|
257,231 |
|
|
2,193 |
|
|||
Total deposits |
|
6,250,476 |
|
|
38,222 |
|
|
|
|
|
6,623,480 |
|
|
27,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
2,717 |
|
|
37 |
|
|
|
|
|
26,847 |
|
|
271 |
|
|
Repurchase agreements |
|
41 |
|
|
— |
|
|
— |
|
|
42 |
|
|
— |
|
— |
Long-term borrowings |
|
10,144 |
|
|
125 |
|
|
|
|
|
38,951 |
|
|
498 |
|
|
Subordinated debentures |
|
13,401 |
|
|
296 |
|
|
|
13,401 |
|
|
226 |
|
|||
Senior debt |
|
95,808 |
|
|
1,234 |
|
|
|
99,005 |
|
|
1,280 |
|
|||
Total deposits and liabilities |
|
6,372,587 |
|
|
39,914 |
|
|
|
|
|
6,801,726 |
|
|
30,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
185,572 |
|
|
|
|
|
|
|
|
19,254 |
|
|
|
|
|
Total liabilities |
|
6,558,159 |
|
|
|
|
|
|
|
|
6,820,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
790,484 |
|
|
|
|
|
|
|
|
678,884 |
|
|
|
|
|
|
$ |
7,348,643 |
|
|
|
|
|
|
|
$ |
7,499,864 |
|
|
|
|
|
Net interest income on tax equivalent basis(3) |
|
|
|
$ |
92,192 |
|
|
|
|
|
$ |
76,778 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tax equivalent adjustment |
|
|
|
33 |
|
|
|
|
|
|
18 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income |
|
|
$ |
92,159 |
|
|
|
$ |
76,760 |
|||||||
Net interest margin(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Interest on loans for 2023 and 2022 includes |
(2)Includes commercial loans, at fair value. All periods include non-accrual loans. |
(3)Full taxable equivalent basis, using |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance sheet and net interest income |
Year ended December 31, 2023 |
|
Year ended December 31, 2022 |
|||||||||||||
|
|
(Dollars in thousands; unaudited) |
||||||||||||||
|
Average |
|
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
||
Assets: |
Balance |
|
Interest(1) |
|
|
Rate |
|
Balance |
|
Interest(1) |
|
Rate |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred fees and costs(2) |
$ |
5,724,679 |
|
$ |
436,343 |
|
|
|
|
$ |
5,670,957 |
|
$ |
275,651 |
|
|
Leases-bank qualified(3) |
|
4,106 |
|
|
388 |
|
|
|
|
|
3,479 |
|
|
235 |
|
|
Investment securities-taxable |
|
766,906 |
|
|
39,078 |
|
|
|
|
|
855,629 |
|
|
25,598 |
|
|
Investment securities-nontaxable(3) |
|
3,118 |
|
|
193 |
|
|
|
|
|
3,559 |
|
|
125 |
|
|
Interest earning deposits at Federal Reserve Bank |
|
649,873 |
|
|
33,627 |
|
|
|
|
|
479,791 |
|
|
6,762 |
|
|
Net interest earning assets |
|
7,148,682 |
|
|
509,629 |
|
|
|
|
|
7,013,415 |
|
|
308,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
(23,412) |
|
|
|
|
|
|
|
|
(19,374) |
|
|
|
|
|
Other assets |
|
292,491 |
|
|
|
|
|
|
|
|
213,491 |
|
|
|
|
|
|
$ |
7,417,761 |
|
|
|
|
|
|
|
$ |
7,207,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and interest checking |
$ |
6,308,509 |
|
$ |
144,814 |
|
|
|
|
$ |
5,670,818 |
|
$ |
39,872 |
|
|
Savings and money market |
|
78,074 |
|
|
2,857 |
|
|
|
|
|
510,370 |
|
|
8,524 |
|
|
Time deposits |
|
20,794 |
|
|
858 |
|
|
|
86,907 |
|
|
2,740 |
|
|||
Total deposits |
|
6,407,377 |
|
|
148,529 |
|
|
|
|
|
6,268,095 |
|
|
51,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
5,739 |
|
|
271 |
|
|
|
|
|
60,312 |
|
|
1,538 |
|
|
Repurchase agreements |
|
41 |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
Long-term borrowings |
|
9,995 |
|
|
507 |
|
|
|
|
|
39,202 |
|
|
1,004 |
|
|
Subordinated debentures |
|
13,401 |
|
|
1,121 |
|
|
|
13,401 |
|
|
658 |
|
|||
Senior debt |
|
96,864 |
|
|
5,027 |
|
|
|
98,865 |
|
|
5,118 |
|
|||
Total deposits and liabilities |
|
6,533,417 |
|
|
155,455 |
|
|
|
|
|
6,479,916 |
|
|
59,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
133,688 |
|
|
|
|
|
|
|
|
54,374 |
|
|
|
|
|
Total liabilities |
|
6,667,105 |
|
|
|
|
|
|
|
|
6,534,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
750,656 |
|
|
|
|
|
|
|
|
673,242 |
|
|
|
|
|
|
$ |
7,417,761 |
|
|
|
|
|
|
|
$ |
7,207,532 |
|
|
|
|
|
Net interest income on tax equivalent basis(3) |
|
|
|
$ |
354,174 |
|
|
|
|
|
$ |
248,917 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tax equivalent adjustment |
|
|
|
122 |
|
|
|
|
|
|
76 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income |
|
|
$ |
354,052 |
|
|
|
$ |
248,841 |
|||||||
Net interest margin(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Interest on loans for 2023 and 2022 includes |
(2)Includes commercial loans, at fair value. All periods include non-accrual loans. |
(3)Full taxable equivalent basis, using |
|
|
|
|
|
|
Allowance for credit losses |
|
Year ended |
|||
|
December 31, |
|
December 31, |
||
|
2023 (unaudited) |
|
2022 |
||
|
(Dollars in thousands) |
||||
|
|
|
|
|
|
Balance in the allowance for credit losses at beginning of period |
$ |
22,374 |
|
$ |
17,806 |
|
|
|
|
|
|
Loans charged-off: |
|
|
|
|
|
SBA non-real estate |
|
871 |
|
|
885 |
SBA commercial mortgage |
|
76 |
|
|
— |
Direct lease financing |
|
3,666 |
|
|
576 |
IBLOC |
|
24 |
|
|
— |
Consumer - other |
|
3 |
|
|
— |
Total |
|
4,640 |
|
|
1,461 |
|
|
|
|
|
|
Recoveries: |
|
|
|
|
|
SBA non-real estate |
|
475 |
|
|
140 |
SBA commercial mortgage |
|
75 |
|
|
— |
Direct lease financing |
|
330 |
|
|
124 |
Consumer - home equity |
|
299 |
|
|
— |
Other loans |
|
— |
|
|
24 |
Total |
|
1,179 |
|
|
288 |
Net charge-offs |
|
3,461 |
|
|
1,173 |
Provision for credit losses, excluding commitment provision |
|
8,465 |
|
|
5,741 |
|
|
|
|
|
|
Balance in allowance for credit losses at end of period |
$ |
27,378 |
|
$ |
22,374 |
Net charge-offs/average loans |
|
|
|
|
|
Net charge-offs/average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan portfolio |
December 31, |
|
September 30, |
|
June 30, |
|
December 31, |
||||
|
2023 (unaudited) |
|
2023 (unaudited) |
|
2023 (unaudited) |
|
2022 |
||||
|
(Dollars in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
SBL non-real estate |
$ |
137,752 |
|
$ |
130,579 |
|
$ |
117,621 |
|
$ |
108,954 |
SBL commercial mortgage |
|
606,986 |
|
|
547,107 |
|
|
515,008 |
|
|
474,496 |
SBL construction |
|
22,627 |
19,204 |
32,471 |
30,864 |
||||||
Small business loans |
|
767,365 |
|
|
696,890 |
|
|
665,100 |
|
|
614,314 |
Direct lease financing |
|
685,657 |
|
|
670,208 |
|
|
657,316 |
|
|
632,160 |
SBLOC / IBLOC(1) |
|
1,627,285 |
|
|
1,720,513 |
|
|
1,883,607 |
|
|
2,332,469 |
Advisor financing(2) |
|
221,612 |
|
|
199,442 |
|
|
173,376 |
|
|
172,468 |
Real estate bridge loans |
|
1,999,782 |
|
|
1,848,224 |
|
|
1,826,227 |
|
|
1,669,031 |
Other loans(3) |
|
50,638 |
55,800 |
55,644 |
61,679 |
||||||
|
|
5,352,339 |
|
|
5,191,077 |
|
|
5,261,270 |
|
|
5,482,121 |
Unamortized loan fees and costs |
|
8,800 |
7,895 |
6,304 |
4,732 |
||||||
Total loans, including unamortized fees and costs |
$ |
5,361,139 |
$ |
5,198,972 |
$ |
5,267,574 |
$ |
5,486,853 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Small business portfolio |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
December 31, |
|
|
2023 (unaudited) |
|
|
2023 (unaudited) |
|
|
2023 (unaudited) |
|
|
2022 |
|
|
(Dollars in thousands) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
SBL, including unamortized fees and costs |
$ |
776,867 |
$ |
705,790 |
$ |
673,667 |
|
$ |
621,641 |
||
SBL, included in loans, at fair value |
|
119,287 |
126,543 |
134,131 |
|
|
146,717 |
||||
Total small business loans(4) |
$ |
896,154 |
$ |
832,333 |
$ |
807,798 |
|
$ |
768,358 |
||
(1)SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At December 31, 2023 and December 31, 2022, IBLOC loans amounted to |
(2)In 2020 The Bancorp began originating loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value (“LTV”) ratios of |
(3)Includes demand deposit overdrafts reclassified as loan balances totaling |
(4)The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated. |
Small business loans as of December 31, 2023
|
|
|
|
|
|
|
|
|
|
Loan principal |
|
|
|
(Dollars in millions) |
|
|
|
$ |
399 |
PPP loans(1) |
|
|
2 |
Commercial mortgage SBA(2) |
|
|
284 |
Construction SBA(3) |
|
|
12 |
Non-guaranteed portion of |
|
|
113 |
Non-SBA SBLs |
|
|
46 |
Other(5) |
|
|
29 |
Total principal |
|
$ |
885 |
Unamortized fees and costs |
|
|
11 |
Total SBLs |
|
$ |
896 |
(1)Includes the portion of SBA 7(a) Program loans and PPP loans which have been guaranteed by the |
(2)Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50 |
(3)Includes |
(4)Includes the unguaranteed portion of 7(a) Program loans which are |
(5)Comprised of |
Small business loans by type as of December 31, 2023
(Excludes government guaranteed portion of SBA 7(a) Program and PPP loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL commercial mortgage(1) |
|
SBL construction(1) |
|
SBL non-real estate |
|
Total |
|
|
% Total |
||||
|
|
|
(Dollars in millions) |
||||||||||||
Hotels and motels |
|
$ |
77 |
|
$ |
— |
|
$ |
— |
|
$ |
77 |
|
|
|
Funeral homes and funeral services |
|
|
41 |
|
|
— |
|
|
— |
|
|
41 |
|
|
|
Full-service restaurants |
|
|
24 |
|
|
6 |
|
|
2 |
|
|
32 |
|
|
|
Car washes |
|
|
19 |
|
|
— |
|
|
— |
|
|
19 |
|
|
|
Child day care services |
|
|
16 |
|
|
2 |
|
|
2 |
|
|
20 |
|
|
|
Outpatient mental health and substance abuse centers |
|
|
15 |
|
|
— |
|
|
— |
|
|
15 |
|
|
|
Homes for the elderly |
|
|
13 |
|
|
— |
|
|
— |
|
|
13 |
|
|
|
Gasoline stations with convenience stores |
|
|
12 |
|
|
— |
|
|
— |
|
|
12 |
|
|
|
Fitness and recreational sports centers |
|
|
8 |
|
|
— |
|
|
2 |
|
|
10 |
|
|
|
Lessors of other real estate property |
|
|
9 |
|
|
— |
|
|
1 |
|
|
10 |
|
|
|
Offices of lawyers |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
|
|
Limited-service restaurants |
|
|
3 |
|
|
1 |
|
|
3 |
|
|
7 |
|
|
|
Caterers |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
|
General warehousing and storage |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
|
Lessors of nonresidential buildings |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
Plumbing, heating, and air-conditioning |
|
|
6 |
|
|
— |
|
|
1 |
|
|
7 |
|
|
|
All other specialty trade contractors |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
Lessors of residential buildings |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
Miscellaneous durable goods merchants |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
Packaged frozen food merchant wholesalers |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
Technical and trade schools |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
|
Amusement and recreation |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
|
|
|
Offices of dentists |
|
|
3 |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
Vocational rehabilitation services |
|
|
— |
|
|
3 |
|
|
— |
|
|
3 |
|
|
|
Other(2) |
|
|
99 |
|
|
2 |
|
|
27 |
|
|
128 |
|
|
|
Total |
|
$ |
403 |
|
$ |
14 |
|
$ |
38 |
|
$ |
455 |
|
|
|
(1)Of the SBL commercial mortgage and SBL construction loans, |
(2)Loan types of less than |
State diversification as of December 31, 2023
(Excludes government guaranteed portion of SBA 7(a) Program loans and PPP loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBL commercial mortgage(1) |
|
SBL construction(1) |
|
SBL non-real estate |
|
Total |
|
|
% Total |
||||
|
|
|
(Dollars in millions) |
||||||||||||
|
|
$ |
82 |
|
$ |
5 |
|
$ |
3 |
|
$ |
90 |
|
|
|
|
|
|
68 |
|
|
1 |
|
|
3 |
|
|
72 |
|
|
|
|
|
|
38 |
|
|
1 |
|
|
2 |
|
|
41 |
|
|
|
|
|
|
34 |
|
|
— |
|
|
1 |
|
|
35 |
|
|
|
|
|
|
25 |
|
|
2 |
|
|
2 |
|
|
29 |
|
|
|
|
|
|
17 |
|
|
3 |
|
|
4 |
|
|
24 |
|
|
|
|
|
|
18 |
|
|
— |
|
|
6 |
|
|
24 |
|
|
|
|
|
|
20 |
|
|
1 |
|
|
2 |
|
|
23 |
|
|
|
Other States |
|
|
101 |
|
|
1 |
|
|
15 |
|
|
117 |
|
|
|
Total |
|
$ |
403 |
|
$ |
14 |
|
$ |
38 |
|
$ |
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Of the SBL commercial mortgage and SBL construction loans, |
Top 10 loans as of December 31, 2023
|
|
|
|
|
|
|
|
Type(1) |
|
State |
|
SBL commercial mortgage |
|
||
|
|
|
(Dollars in millions) |
||||
Funeral homes and funeral services |
|
|
PA |
|
$ |
13 |
|
Mental health and substance abuse center |
|
|
FL |
|
|
10 |
|
Funeral homes and funeral services |
|
|
ME |
|
|
9 |
|
Hotel |
|
|
FL |
|
|
8 |
|
Lawyers office |
|
|
CA |
|
|
8 |
|
Hotel |
|
|
NC |
|
|
7 |
|
General warehousing and storage |
|
|
PA |
|
|
7 |
|
Hotel |
|
|
FL |
|
|
6 |
|
Hotel |
|
|
NY |
|
|
6 |
|
Hotel |
|
|
NC |
|
|
5 |
|
Total |
|
|
|
|
$ |
79 |
|
(1)The table above does not include loans to the extent that they are |
Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:
Type as of December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
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 amortized cost)(1) |
|
|
148 |
|
$ |
2,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-SBA commercial real estate loans, at fair value: |
|
|
|
|
|
|
|
|
|
|
Multi-family (apartment bridge loans)(1) |
|
|
9 |
|
$ |
168 |
|
|
|
|
Hospitality (hotels and lodging) |
|
|
2 |
|
|
27 |
|
|
|
|
Retail |
|
|
2 |
|
|
12 |
|
|
|
|
Other |
|
|
2 |
|
|
9 |
|
|
|
|
|
|
|
15 |
|
|
216 |
|
|
|
|
Fair value adjustment |
|
|
|
|
|
(3) |
|
|
|
|
Total non-SBA commercial real estate loans, at fair value |
|
|
|
|
|
213 |
|
|
|
|
Total commercial real estate loans |
|
|
|
|
$ |
2,213 |
|
|
|
|
(1)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 they are not accounted for at fair value. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State diversification as of December 31, 2023 |
|
|
15 largest loans as of December 31, 2023 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State |
|
|
Balance |
|
|
Origination date LTV |
|
|
State |
|
|
|
Balance |
|
Origination date LTV |
(Dollars in millions) |
|
|
(Dollars in millions) |
||||||||||||
|
|
$ |
814 |
|
|
|
|
|
|
|
|
$ |
46 |
|
|
|
|
|
247 |
|
|
|
|
|
|
|
|
|
44 |
|
|
|
|
|
221 |
|
|
|
|
|
|
|
|
|
40 |
|
|
|
|
|
112 |
|
|
|
|
|
|
|
|
|
39 |
|
|
|
|
|
92 |
|
|
|
|
|
|
|
|
|
39 |
|
|
|
|
|
78 |
|
|
|
|
|
|
|
|
|
37 |
|
|
|
|
|
73 |
|
|
|
|
|
|
|
|
|
37 |
|
|
Other States each < |
|
|
576 |
|
|
|
|
|
|
|
|
|
36 |
|
|
Total |
|
$ |
2,213 |
|
|
|
|
|
|
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
15 largest commercial real estate loans |
|
|
$ |
543 |
|
|
Institutional banking loans outstanding at December 31, 2023
|
|
|
|
|
Type |
Principal |
|
% of total |
|
|
|
(Dollars in millions) |
|
|
SBLOC |
$ |
980 |
|
|
IBLOC |
|
647 |
|
|
Advisor financing |
|
222 |
|
|
Total |
$ |
1,849 |
|
|
For SBLOC, we generally lend up to
Top 10 SBLOC loans at December 31, 2023
|
|
|
|
|
|
Principal amount |
|
% Principal to collateral |
|
|
(Dollars in millions) |
|||
|
$ |
11 |
|
|
|
|
9 |
|
|
|
|
9 |
|
|
|
|
9 |
|
|
|
|
9 |
|
|
|
|
8 |
|
|
|
|
8 |
|
|
|
|
8 |
|
|
|
|
8 |
|
|
|
|
7 |
|
|
Total and weighted average |
$ |
86 |
|
|
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 generally lend up to
Direct lease financing by type as of December 31, 2023
|
|
|
|
|
|
|
Principal balance(1) |
|
% Total |
|
|
(Dollars in millions) |
|
|
Government agencies and public institutions(2) |
$ |
109 |
|
|
Waste management and remediation services |
|
106 |
|
|
Construction |
|
104 |
|
|
Real estate and rental and leasing |
|
76 |
|
|
Manufacturing |
|
35 |
|
|
Finance and insurance |
|
33 |
|
|
Health care and social assistance |
|
26 |
|
|
Other services (except public administration) |
|
26 |
|
|
General freight trucking |
|
25 |
|
|
Professional, scientific, and technical services |
|
22 |
|
|
Wholesale trade |
|
18 |
|
|
Utilities |
|
15 |
|
|
Transportation and warehousing |
|
14 |
|
|
Other |
|
77 |
|
|
Total |
$ |
686 |
|
|
(1)Of the total |
(2)Includes public universities and school districts. |
Direct lease financing by state as of December 31, 2023
|
|
|
|
|
State |
|
Principal balance |
|
% Total |
|
|
(Dollars in millions) |
|
|
|
$ |
98 |
|
|
|
|
67 |
|
|
|
|
57 |
|
|
|
|
51 |
|
|
|
|
42 |
|
|
|
|
39 |
|
|
|
|
35 |
|
|
|
|
33 |
|
|
|
|
31 |
|
|
|
|
30 |
|
|
|
|
17 |
|
|
|
|
15 |
|
|
|
|
14 |
|
|
|
|
13 |
|
|
|
|
12 |
|
|
Other States |
|
132 |
|
|
Total |
$ |
686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2023 |
|
|
|
|
|
|
|
The Bancorp, Inc. |
|
|
|
|
|
|
|
The Bancorp Bank, National Association |
|
|
|
|
|
|
|
"Well capitalized" institution (under federal regulations-Basel III) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2022 |
|
|
|
|
|
|
|
The Bancorp, Inc. |
|
|
|
|
|
|
|
The Bancorp Bank, National Association |
|
|
|
|
|
|
|
"Well capitalized" institution (under federal regulations-Basel III) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
||||||||
|
December 31, |
|
December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Selected operating ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(1) |
|
|
|
|
|
|
|
|
|
|
|
Return on average equity(1) |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share table |
December 31, |
|
September 30, |
|
June 30, |
|
December 31, |
||||
|
2023 |
|
2023 |
|
2023 |
|
2022 |
||||
Book value per share |
$ |
15.17 |
|
$ |
14.36 |
|
$ |
13.74 |
|
$ |
12.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan quality table |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
December 31, |
|
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||
|
|
(Dollars in thousands) |
|||||||||
Nonperforming loans to total loans |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
11,525 |
|
$ |
15,100 |
|
$ |
14,027 |
|
$ |
10,356 |
Loans 90 days past due still accruing interest |
|
1,744 |
|
|
677 |
|
|
563 |
|
|
7,775 |
Other real estate owned |
|
16,949 |
|
18,756 |
|
20,952 |
|
21,210 |
|||
Total nonperforming assets |
$ |
30,218 |
|
$ |
34,533 |
|
$ |
35,542 |
|
$ |
39,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross dollar volume (GDV) (1) |
Three months ended |
||||||||||
|
December 31, |
|
September 30, |
|
June 30, |
|
December 31, |
||||
|
2023 |
|
2023 |
|
2023 |
|
2022 |
||||
|
|
(Dollars in thousands) |
|||||||||
Prepaid and debit card GDV |
$ |
33,292,350 |
|
$ |
32,972,249 |
|
$ |
32,776,154 |
|
$ |
29,454,074 |
(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank, N.A. |
Business line quarterly summary |
|||||||||||||
Quarter ended December 31, 2023 |
|||||||||||||
(Dollars in millions) |
|||||||||||||
Balances |
|||||||||||||
% Growth |
|||||||||||||
Major business lines |
Average approximate rates(1) |
Balances(2) |
Year over year |
|
Linked quarter annualized |
||||||||
Loans |
|||||||||||||
Institutional banking(3) |
|
|
( |
( |
|||||||||
Small business lending(4) |
|
896 |
|
|
|||||||||
Leasing |
|
686 |
|
|
|||||||||
Commercial real estate (non-SBA loans, at fair value) |
|
216 |
nm |
nm |
|||||||||
Real estate bridge loans (recorded at book value) |
|
|
|
2,000 |
|
|
|
|
|
|
|
|
|
Weighted average yield |
|
|
Non-interest income |
||||||||||
% Growth |
|||||||||||||
Deposits: Fintech solutions group |
Current quarter |
Year over year |
|||||||||||
Prepaid and debit card issuance, and other payments |
|
|
|
nm |
|
|
|||||||
(1)Average rates are for the three months ended December 31, 2023. |
(2)Loan and deposit categories are based on period-end and average quarterly balances, respectively. |
(3)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. |
(4)Small Business Lending is substantially comprised of SBA loans. Growth rates exclude |
Summary of credit lines available
Notwithstanding that the vast majority of The Bancorp’s funding is comprised of insured and small balance accounts, The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.
|
|
|
|
December 31, 2023 |
|
|
|
(Dollars in thousands) |
Federal Reserve Bank |
$ |
1,947,513 |
Federal Home Loan Bank |
|
731,500 |
Total lines of credit available |
$ |
2,679,013 |
Estimated insured vs uninsured deposits
The vast majority of The Bancorp’s deposits are insured and low balance and accordingly do not constitute the liquidity risk experienced by certain institutions. Accordingly the deposit base is comprised as follows.
|
|
|
|
December 31, 2023 |
|
Insured |
|
|
Low balance accounts |
|
|
Other uninsured |
|
|
Total deposits |
|
|
Calculation of efficiency ratio(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
||||||||
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
(Dollars in thousands) |
||||||||||
Net interest income |
$ |
92,159 |
|
$ |
76,760 |
|
$ |
354,052 |
|
$ |
248,841 |
Non-interest income |
|
26,989 |
|
|
25,740 |
|
|
112,094 |
|
|
105,683 |
Total revenue |
$ |
119,148 |
|
$ |
102,500 |
|
$ |
466,146 |
|
$ |
354,524 |
Non-interest expense |
$ |
45,610 |
|
$ |
43,475 |
|
$ |
191,042 |
|
$ |
169,502 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
(1) The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues, and may be used as one measure of overall efficiency. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240122830745/en/
The Bancorp, Inc.
Andres Viroslav
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Source: The Bancorp, Inc.
FAQ
What was The Bancorp's net income for the fourth quarter of 2023?
What was the increase in net interest income for The Bancorp?
What was the average interest rate on average deposits for The Bancorp?
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