TBBK Bancorp Inc

The Bancorp, Inc. ("The Bancorp" or “we”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the third quarter of 2023.

Highlights

• The Bancorp reported net income of $50.1 million, or $0.92 per diluted share, for the quarter ended September 30, 2023, compared to net income of $30.6 million, or $0.54 per diluted share, for the quarter ended September 30, 2022, or a 70% increase in income per diluted share.
• Return on assets and equity for the quarter ended September 30, 2023 amounted to 2.7% and 26%, respectively, compared to 1.7% and 18%, respectively, for the quarter ended September 30, 2022 (all percentages “annualized”).
• Net interest income increased 37% to $88.9 million for the quarter ended September 30, 2023, compared to $64.7 million for the quarter ended September 30, 2022. Net interest income increases reflected the impact of continuing Federal Reserve rate increases on The Bancorp’s variable rate loans and securities.
• Net interest margin amounted to 5.07% for the quarter ended September 30, 2023, compared to 3.69% for the quarter ended September 30, 2022, and 4.83% for the quarter ended June 30, 2023.
• Loans, net of deferred fees and costs were $5.20 billion at September 30, 2023, compared to $5.49 billion at December 31, 2022 and $5.27 billion at September 30, 2022. Those changes reflected a decrease of 1% quarter over linked quarter and a decrease of 1% year over year.
• Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $4.85 billion, or 17%, to $32.97 billion for the quarter ended September 30, 2023, compared to the quarter ended September 30, 2022. The increase reflects continued organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH and other payment fees increased 12% to $24.1 million for the third quarter of 2023 compared to the third quarter of 2022.
• Small business loans (“SBL”), including those held at fair value, grew 13% year over year to $830.1 million at September 30, 2023, and 3% quarter over linked quarter. That growth excludes Paycheck Protection Program (“PPP”) loan balances which amounted to $2.3 million and $6.7 million at September 30, 2023 and September 30, 2022, respectively.
• Direct lease financing balances increased 12% year over year to $670.2 million at September 30, 2023, and 2% quarter over linked quarter.
• At September 30, 2023, real estate bridge loans of $1.85 billion had grown 1% compared to the $1.83 billion balance at June 30, 2023, and 24% compared to the September 30, 2022 balance of $1.49 billion. These real estate bridge loans consist entirely of apartment buildings.
• Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”) and investment advisor financing loans collectively decreased 24% year over year and decreased 7% quarter over linked quarter to $1.92 billion at September 30, 2023.
• The average interest rate on $6.41 billion of average deposits and interest-bearing liabilities during the third quarter of 2023 was 2.50%. Average deposits of $6.29 billion for the third quarter of 2023 reflected an increase of 3% from the $6.11 billion of average deposits for the quarter ended September 30, 2022, and a 3% decrease from $6.48 billion of average deposits in the second quarter of 2023. The decrease reflected the planned exit of $200 million of higher cost funds on July 1, 2023. Not included in deposit totals are deposits which are sold to other financial institutions totaling $334.7 million at September 30, 2023.
• 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 September 30, 2023, as well as access to other liquidity.
• As of September 30, 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 10.92%, 15.53%, 16.04% and 15.53%, 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 September 30, 2023 was $14.36 per share compared to $11.81 per common share at September 30, 2022, an increase of 22%.
• The Bancorp repurchased 685,478 shares of its common stock at an average cost of $36.47 per share during the quarter ended September 30, 2023.

CEO and President Damian Kozlowski commented, “The Bancorp continues to produce record core profitability and exemplar financial performance in a challenging interest rate and macro environment for most financial institutions. We are initiating 2024 preliminary guidance of $4.25 a share without including the impact of share buybacks. The 2024 guidance is 18% earnings growth over 2023 guidance. In addition, as a result of our investments in growth and efficiency, the Bancorp’s increased ROE is driving a continued increase in our regulatory capital ratios. With the reg ii Durbin balance sheet limit of $10 billion, we are fast approaching the maximum equity capital needed to support our business growth into the future. Therefore, we are significantly increasing our planned buyback in 2024 by $100 million to $200 million or $50 million a quarter from $25 million a quarter.”

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 27, 2023 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 63043391. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, November 3, 2023 by dialing 1.877.674.7070, access code 043391#.

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.

The Bancorp, Inc.

Financial highlights

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

Consolidated condensed income statements

2023

 

2022

 

2023

 

2022

 

 

(Dollars in thousands, except per share and share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

88,882

 

$

64,659

 

$

261,893

 

$

172,081

Provision for credit losses

 

1,752

 

 

822

 

 

4,016

 

 

4,331

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

ACH, card and other payment processing fees

 

2,553

 

 

2,230

 

 

7,153

 

 

6,552

Prepaid, debit card and related fees

 

21,513

 

 

19,175

 

 

67,013

 

 

57,865

Net realized and unrealized gains on commercial

 

 

 

 

 

 

 

 

 

 

 

loans, at fair value

 

525

 

 

745

 

 

4,171

 

 

11,262

Leasing related income

 

1,767

 

 

1,048

 

 

4,768

 

 

3,566

Other non-interest income

 

422

 

 

228

 

 

2,000

 

 

698

Total non-interest income

 

26,780

 

 

23,426

 

 

85,105

 

 

79,943

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

30,475

 

 

28,001

 

 

93,427

 

 

77,848

Data processing expense

 

1,404

 

 

1,292

 

 

4,123

 

 

3,727

Legal expense

 

1,203

 

 

907

 

 

3,110

 

 

3,175

Legal settlement

 

—

 

 

—

 

 

—

 

 

1,152

Civil money penalty

 

—

 

 

1,750

 

 

—

 

 

1,750

FDIC insurance

 

806

 

 

679

 

 

2,233

 

 

2,326

Software

 

4,427

 

 

4,001

 

 

12,981

 

 

12,030

Other non-interest expense

 

9,144

 

 

8,200

 

 

29,558

 

 

24,019

Total non-interest expense

 

47,459

 

 

44,830

 

 

145,432

 

 

126,027

Income before income taxes

 

66,451

 

 

42,433

 

 

197,550

 

 

121,666

Income tax expense

 

16,314

 

 

11,829

 

 

49,282

 

 

31,694

Net income

 

50,137

 

 

30,604

 

 

148,268

 

 

89,972

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic

$

0.93

 

$

0.54

 

$

2.70

 

$

1.58

 

 

 

 

 

 

Net income per share - diluted

$

0.92

 

$

0.54

 

$

2.68

 

$

1.56

Weighted average shares - basic

 

54,175,184

 

 

56,429,425

 

 

54,828,547

 

 

56,782,524

Weighted average shares - diluted

 

54,738,610

 

 

57,008,224

 

 

55,336,354

 

 

57,510,986

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated balance sheets

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2023 (unaudited)

 

2023 (unaudited)

 

2022

 

2022 (unaudited)

 

 

(Dollars in thousands, except share data)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

4,881

 

 

$

6,496

 

 

$

24,063

 

 

$

22,537

 

Interest earning deposits at Federal Reserve Bank

 

898,533

 

 

 

874,050

 

 

 

864,126

 

 

 

700,175

 

Total cash and cash equivalents

 

903,414

 

 

 

880,546

 

 

 

888,189

 

 

 

722,712

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

756,636

 

 

 

776,410

 

 

 

766,016

 

 

 

790,594

 

Commercial loans, at fair value

 

379,603

 

 

 

396,581

 

 

 

589,143

 

 

 

818,040

 

Loans, net of deferred fees and costs

 

5,198,972

 

 

 

5,267,574

 

 

 

5,486,853

 

 

 

5,267,375

 

Allowance for credit losses

 

(24,145

)

 

 

(23,284

)

 

 

(22,374

)

 

 

(19,689

)

Loans, net

 

5,174,827

 

 

 

5,244,290

 

 

 

5,464,479

 

 

 

5,247,686

 

Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock

 

20,157

 

 

 

20,157

 

 

 

12,629

 

 

 

12,629

 

Premises and equipment, net

 

28,978

 

 

 

26,408

 

 

 

18,401

 

 

 

18,443

 

Accrued interest receivable

 

34,159

 

 

 

34,062

 

 

 

32,005

 

 

 

25,506

 

Intangible assets, net

 

1,751

 

 

 

1,850

 

 

 

2,049

 

 

 

2,149

 

Other real estate owned

 

18,756

 

 

 

20,952

 

 

 

21,210

 

 

 

18,873

 

Deferred tax asset, net

 

20,379

 

 

 

19,215

 

 

 

19,703

 

 

 

27,241

 

Other assets

 

127,107

 

 

 

122,435

 

 

 

89,176

 

 

 

93,201

 

Total assets

$

7,465,767

 

 

$

7,542,906

 

 

$

7,903,000

 

 

$

7,777,074

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

6,455,043

 

 

$

6,554,967

 

 

$

6,559,617

 

 

$

5,934,591

 

Savings and money market

 

49,428

 

 

 

68,084

 

 

 

140,496

 

 

 

575,381

 

Time deposits, $100,000 and over

 

—

 

—

 

330,000

 

401,331

 

Total deposits

 

6,504,471

 

6,623,051

 

7,030,113

 

6,911,303

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

42

 

 

 

42

 

 

 

42

 

 

 

42

 

Senior debt

 

95,771

 

 

 

95,682

 

 

 

99,050

 

 

 

98,958

 

Subordinated debenture

 

13,401

 

 

 

13,401

 

 

 

13,401

 

 

 

13,401

 

Other long-term borrowings

 

9,861

 

 

 

9,917

 

 

 

10,028

 

 

 

38,928

 

Other liabilities

 

68,533

 

51,646

 

56,335

 

50,704

 

Total liabilities

$

6,692,079

 

$

6,793,739

 

$

7,208,969

 

$

7,113,336

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock - authorized, 75,000,000 shares of $1.00 par value; 53,867,129 and 56,201,560 shares issued and outstanding at September 30, 2023 and 2022, respectively

 

53,867

 

 

 

54,542

 

 

 

55,690

 

 

 

56,202

 

Additional paid-in capital

 

234,320

 

 

 

256,115

 

 

 

299,279

 

 

 

311,569

 

Retained earnings

 

517,587

 

 

 

467,450

 

 

 

369,319

 

 

 

329,078

 

Accumulated other comprehensive loss

 

(32,086

)

(28,940

)

(30,257

)

(33,111

)

Total shareholders' equity

 

773,688

 

 

 

749,167

 

 

 

694,031

 

 

 

663,738

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

7,465,767

 

$

7,542,906

 

$

7,903,000

 

$

7,777,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

 

Three months ended September 30, 2023

 

 

Three months ended September 30, 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)

$

5,603,514

 

 

$

110,506

 

 

7.89

%

 

$

5,904,996

 

 

$

75,536

 

5.12

%

Leases-bank qualified(3)

 

4,585

 

 

 

110

 

 

9.60

%

 

 

3,299

 

 

 

55

 

6.67

%

Investment securities-taxable

 

768,364

 

 

 

9,647

 

 

5.02

%

 

 

824,178

 

 

 

6,792

 

3.30

%

Investment securities-nontaxable(3)

 

3,005

 

 

 

50

 

 

6.66

%

 

 

3,559

 

 

 

31

 

3.48

%

Interest earning deposits at Federal Reserve Bank

 

639,946

 

 

 

8,689

 

 

5.43

%

 

 

267,424

 

 

 

1,525

 

2.28

%

Net interest earning assets

 

7,019,414

 

 

 

129,002

 

 

7.35

%

 

 

7,003,456

 

 

 

83,939

 

4.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(23,147

)

 

 

 

 

 

 

 

 

(19,111

)

 

 

 

 

 

Other assets

 

338,085

 

 

 

 

 

 

 

 

 

212,078

 

 

 

 

 

 

 

$

7,334,352

 

 

 

 

 

 

 

 

$

7,196,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

6,229,668

 

 

$

37,913

 

 

2.43

%

 

$

5,545,115

 

 

$

12,726

 

0.92

%

Savings and money market

 

56,538

 

 

 

518

 

 

3.66

%

 

 

479,260

 

 

 

2,792

 

2.33

%

Time deposits

 

—

 

 

 

—

—

 

 

 

87,562

 

 

 

547

2.50

%

Total deposits

 

6,286,206

 

 

 

38,431

 

 

2.45

%

 

 

6,111,937

 

 

 

16,065

 

1.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

—

 

 

 

—

 

 

—

 

 

 

200,423

 

 

 

1,235

 

2.46

%

Repurchase agreements

 

41

 

 

 

—

 

 

—

 

 

 

41

 

 

 

—

 

—

 

Long-term borrowings

 

9,889

 

 

 

128

 

 

5.18

%

 

 

39,035

 

 

 

506

 

5.19

%

Subordinated debentures

 

13,401

 

 

 

293

8.75

%

 

 

13,401

 

 

 

177

5.28

%

Senior debt

 

95,714

 

 

 

1,234

5.16

%

 

 

98,910

 

 

 

1,279

5.17

%

Total deposits and liabilities

 

6,405,251

 

 

 

40,086

 

 

2.50

%

 

 

6,463,747

 

 

 

19,262

 

1.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

167,673

 

 

 

 

 

 

 

 

 

72,539

 

 

 

 

 

 

Total liabilities

 

6,572,924

 

 

 

 

 

 

 

 

 

6,536,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

761,428

 

 

 

 

 

 

 

 

 

660,137

 

 

 

 

 

 

 

$

7,334,352

 

 

 

 

 

 

 

 

$

7,196,423

 

 

 

 

 

 

Net interest income on tax equivalent basis(3)

 

 

 

$

88,916

 

 

 

 

 

$

64,677

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

34

 

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

88,882

 

 

 

$

64,659

Net interest margin(3)

 

 

 

 

 

 

 

5.07

%

 

 

 

 

 

 

 

3.69

%

(1)Interest on loans for 2023 and 2022 includes $7,000 and $21,000, respectively, of interest and fees on PPP loans.

(2)Includes commercial loans, at fair value. All periods include non-accrual loans.

(3)Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2023 and 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

Nine months ended September 30, 2023

 

Nine months ended September 30, 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)

$

5,772,266

 

 

$

324,009

 

 

7.48

%

 

$

5,531,902

 

 

$

181,174

 

4.37

%

Leases-bank qualified(3)

 

3,920

 

 

 

279

 

 

9.49

%

 

 

3,657

 

 

 

185

 

6.75

%

Investment securities-taxable

 

773,485

 

 

 

28,820

 

 

4.97

%

 

 

880,426

 

 

 

17,115

 

2.59

%

Investment securities-nontaxable(3)

 

3,193

 

 

 

144

 

 

6.01

%

 

 

3,559

 

 

 

93

 

3.48

%

Interest earning deposits at Federal Reserve Bank

 

640,554

 

 

 

24,271

 

 

5.05

%

 

 

499,104

 

 

 

2,876

 

0.77

%

Net interest earning assets

 

7,193,418

 

 

 

377,523

 

 

7.00

%

 

 

6,918,648

 

 

 

201,443

 

3.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(23,192

)

 

 

 

 

 

 

 

 

(19,087

)

 

 

 

 

 

Other assets

 

269,072

 

 

 

 

 

 

 

 

 

203,143

 

 

 

 

 

 

 

$

7,439,298

 

 

 

 

 

 

 

 

$

7,102,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

6,343,711

 

 

$

106,984

 

 

2.25

%

 

$

5,598,028

 

 

$

18,522

 

0.44

%

Savings and money market

 

88,738

 

 

 

2,465

 

 

3.70

%

 

 

522,525

 

 

 

4,192

 

1.07

%

Time deposits

 

27,802

 

 

 

858

4.11

%

 

 

29,508

 

 

 

547

2.47

%

Total deposits

 

6,460,251

 

 

 

110,307

 

 

2.28

%

 

 

6,150,061

 

 

 

23,261

 

0.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

6,758

 

 

 

234

 

 

4.62

%

 

 

71,589

 

 

 

1,267

 

2.36

%

Repurchase agreements

 

41

 

 

 

—

 

 

—

 

 

 

41

 

 

 

—

 

—

 

Long-term borrowings

 

9,945

 

 

 

382

 

 

5.12

%

 

 

39,286

 

 

 

506

 

1.72

%

Subordinated debentures

 

13,401

 

 

 

825

8.21

%

 

 

13,401

 

 

 

432

4.30

%

Senior debt

 

97,220

 

 

 

3,793

5.20

%

 

 

98,817

 

 

 

3,838

5.18

%

Total deposits and liabilities

 

6,587,616

 

 

 

115,541

 

 

2.34

%

 

 

6,373,195

 

 

 

29,304

 

0.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

117,822

 

 

 

 

 

 

 

 

 

71,413

 

 

 

 

 

 

Total liabilities

 

6,705,438

 

 

 

 

 

 

 

 

 

6,444,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

733,860

 

 

 

 

 

 

 

 

 

658,096

 

 

 

 

 

 

 

$

7,439,298

 

 

 

 

 

 

 

 

$

7,102,704

 

 

 

 

 

 

Net interest income on tax equivalent basis(3)

 

 

 

$

261,982

 

 

 

 

 

$

172,139

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

89

 

 

 

 

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

261,893

 

 

 

$

172,081

Net interest margin(3)

 

 

 

 

 

 

 

4.86

%

 

 

 

 

 

 

 

3.32

%

(1)Interest on loans for 2023 and 2022 includes $27,000 and $502,000, respectively, of interest and fees on PPP loans.

(2)Includes commercial loans, at fair value. All periods include non-accrual loans.

(3)Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2023 and 2022.

 

 

 

 

 

 

 

 

 

Allowance for credit losses

Nine months ended

 

Year ended

 

September 30,

 

September 30,

 

December 31,

 

2023 (unaudited)

 

2022 (unaudited)

2022

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Balance in the allowance for credit losses at beginning of period

$

22,374

 

 

$

17,806

 

$

17,806

 

 

 

 

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

 

 

 

SBA non-real estate

 

871

 

 

 

861

 

 

 

885

 

Direct lease financing

 

2,804

 

 

 

312

 

 

 

576

 

Consumer - other

 

3

 

 

 

—

 

 

—

 

Total

 

3,678

 

 

 

1,173

 

 

1,461

 

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

SBA non-real estate

 

446

 

 

 

57

 

 

 

140

 

SBA commercial mortgage

 

75

 

 

 

—

 

 

 

—

 

Direct lease financing

 

220

 

 

 

108

 

 

 

124

 

Consumer - home equity

 

299

 

 

 

—

 

 

—

 

Other loans

 

—

 

 

 

—

 

 

24

 

Total

 

1,040

 

 

 

165

 

 

288

 

Net charge-offs

 

2,638

 

 

 

1,008

 

 

 

1,173

 

Provision for credit losses, excluding commitment provision

 

4,409

 

 

 

2,891

 

 

5,741

 

 

 

 

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

24,145

 

 

$

19,689

 

 

$

22,374

 

Net charge-offs/average loans

 

0.05

%

 

 

0.02

%

 

 

0.03

%

Net charge-offs/average assets

 

0.04

%

 

 

0.01

%

 

 

0.02

%

 

 

Loan portfolio

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2023 (unaudited)

 

2023 (unaudited)

 

2022

 

2022 (unaudited)

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

130,579

 

$

117,621

 

$

108,954

 

$

116,080

SBL commercial mortgage

 

547,107

 

 

515,008

 

 

474,496

 

 

429,865

SBL construction

 

19,204

32,471

30,864

26,841

Small business loans

 

696,890

 

 

665,100

 

 

614,314

 

 

572,786

Direct lease financing

 

670,208

 

 

657,316

 

 

632,160

 

 

599,796

SBLOC / IBLOC(1)

 

1,720,513

 

 

1,883,607

 

 

2,332,469

 

 

2,369,106

Advisor financing(2)

 

199,442

 

 

173,376

 

 

172,468

 

 

168,559

Real estate bridge loans

 

1,848,224

 

 

1,826,227

 

 

1,669,031

 

 

1,488,119

Other loans(3)

 

55,800

55,644

61,679

64,980

 

 

5,191,077

 

 

5,261,270

 

 

5,482,121

 

 

5,263,346

Unamortized loan fees and costs

 

7,895

6,304

4,732

4,029

Total loans, including unamortized fees and costs

$

5,198,972

$

5,267,574

$

5,486,853

$

5,267,375

 

Small business portfolio

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

 

2023 (unaudited)

 

 

2023 (unaudited)

 

 

2022

 

 

2022 (unaudited)

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

705,790

$

673,667

$

621,641

 

$

579,156

SBL, included in loans, at fair value

 

126,543

134,131

146,717

 

 

159,914

Total small business loans(4)

$

832,333

$

807,798

$

768,358

 

$

739,070

(1)SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At September 30, 2023 and December 31, 2022, IBLOC loans amounted to $712.6 million and $1.12 billion, respectively.

(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 70% of the 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.

(3)Includes demand deposit overdrafts reclassified as loan balances totaling $215,000 and $2.6 million at September 30, 2023 and December 31, 2022, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and are immaterial.

(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 September 30, 2023

 

 

Loan principal

 

 

(Dollars in millions)

U.S. government guaranteed portion of SBA loans(1)

 

$

392

PPP loans(1)

 

 

2

Commercial mortgage SBA(2)

 

 

273

Construction SBA(3)

 

 

11

Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(4)

 

 

109

Non-SBA SBLs

 

 

35

Total principal

 

$

822

Unamortized fees and costs

 

 

10

Total SBLs

 

$

832

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

(2)Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50-60%, to which The Bancorp adheres.

(3)Includes $4.0 million in 504 Program first mortgages with an origination date LTV of 50-60%, and $7.0 million in SBA interim loans with an approved SBA post-construction full takeout/payoff.

(4)Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program 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 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners.

Small business loans by type as of September 30, 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 (except casino hotels) and motels

 

$

74

 

$

—

 

$

—

 

$

74

 

 

17%

Full-service restaurants

 

 

24

 

 

6

 

 

2

 

 

32

 

 

7%

Funeral homes and funeral services

 

 

27

 

 

—

 

 

—

 

 

27

 

 

6%

Car washes

 

 

19

 

 

—

 

 

—

 

 

19

 

 

4%

Child day care services

 

 

15

 

 

1

 

 

1

 

 

17

 

 

4%

Outpatient mental health and substance abuse centers

 

 

15

 

 

—

 

 

—

 

 

15

 

 

4%

Homes for the elderly

 

 

13

 

 

—

 

 

—

 

 

13

 

 

3%

Gasoline stations with convenience stores

 

 

12

 

 

—

 

 

—

 

 

12

 

 

3%

Fitness and recreational sports centers

 

 

8

 

 

—

 

 

2

 

 

10

 

 

2%

Lessors of other real estate property

 

 

9

 

 

—

 

 

1

 

 

10

 

 

2%

Offices of lawyers

 

 

9

 

 

—

 

 

—

 

 

9

 

 

2%

General warehousing and storage

 

 

7

 

 

—

 

 

—

 

 

7

 

 

2%

Plumbing, heating, and air-conditioning companies

 

 

6

 

 

—

 

 

1

 

 

7

 

 

2%

Caterers

 

 

6

 

 

—

 

 

—

 

 

6

 

 

1%

Limited-service restaurants

 

 

3

 

 

1

 

 

3

 

 

7

 

 

2%

Specialty trade contractors

 

 

5

 

 

—

 

 

—

 

 

5

 

 

1%

Lessors of residential buildings and dwellings

 

 

5

 

 

—

 

 

—

 

 

5

 

 

1%

Miscellaneous durable goods merchant

 

 

5

 

 

—

 

 

—

 

 

5

 

 

1%

Packaged frozen food merchant wholesalers

 

 

5

 

 

—

 

 

—

 

 

5

 

 

1%

Technical and trade schools

 

 

5

 

 

—

 

 

—

 

 

5

 

 

1%

All other amusement and recreation

 

 

4

 

 

—

 

 

—

 

 

4

 

 

1%

Offices of dentists

 

 

3

 

 

—

 

 

—

 

 

3

 

 

1%

Vocational rehabilitation services

 

 

—

 

 

3

 

 

—

 

 

3

 

 

1%

Other warehousing and storage

 

 

3

 

 

—

 

 

—

 

 

3

 

 

1%

Other(2)

 

 

96

 

 

1

 

 

28

 

 

125

 

 

30%

Total

 

$

378

 

$

12

 

$

38

 

$

428

 

 

100%

(1)Of the SBL commercial mortgage and SBL construction loans, $106.0 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs.

(2)Loan types of less than $3.0 million are spread over approximately one hundred different business types.

State diversification as of September 30, 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)

California

 

$

78

 

$

4

 

$

3

 

$

85

 

 

20%

Florida

 

 

69

 

 

1

 

 

3

 

 

73

 

 

17%

North Carolina

 

 

39

 

 

1

 

 

2

 

 

42

 

 

10%

New York

 

 

24

 

 

1

 

 

3

 

 

28

 

 

7%

New Jersey

 

 

17

 

 

3

 

 

4

 

 

24

 

 

6%

Texas

 

 

19

 

 

—

 

 

4

 

 

23

 

 

5%

Pennsylvania

 

 

21

 

 

—

 

 

1

 

 

22

 

 

5%

Georgia

 

 

18

 

 

1

 

 

2

 

 

21

 

 

5%

Other States <$15 million

 

 

93

 

 

1

 

 

16

 

 

110

 

 

25%

Total

 

$

378

 

$

12

 

$

38

 

$

428

 

 

100%

(1)Of the SBL commercial mortgage and SBL construction loans, $106.0 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs.

Top 10 loans as of September 30, 2023

 

 

 

 

 

 

 

 

Type(1)

 

State

 

SBL commercial mortgage

 

 

 

 

(Dollars in millions)

Mental health and substance abuse center

 

 

FL

 

$

10

 

Funeral homes and funeral services

 

 

ME

 

 

9

 

Hotel

 

 

FL

 

 

8

 

Offices of lawyers

 

 

CA

 

 

8

 

Hotel

 

 

NC

 

 

7

 

General warehousing and storage

 

 

PA

 

 

7

 

Hotel

 

 

FL

 

 

6

 

Hotel

 

 

NY

 

 

6

 

Hotel

 

 

NC

 

 

6

 

Mental health and substance abuse center

 

 

NJ

 

 

5

 

Total

 

 

 

 

$

72

 

(1)The table above does not include loans to the extent that they are U.S. government guaranteed.

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

Type as of September 30, 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)

 

 

139

 

$

1,848

 

 

71%

 

9.30%

 

 

 

 

 

 

 

 

 

 

 

Non-SBA commercial real estate loans, at fair value:

 

 

 

 

 

 

 

 

 

 

Multi-family (apartment bridge loans)(1)

 

 

11

 

$

207

 

 

76%

 

8.80%

Hospitality (hotels and lodging)

 

 

2

 

 

27

 

 

65%

 

9.80%

Retail

 

 

2

 

 

12

 

 

72%

 

7.30%

Other

 

 

2

 

 

9

 

 

73%

 

5.00%

 

 

 

17

 

 

255

 

 

75%

 

8.69%

Fair value adjustment

 

 

 

 

 

(2

)

 

 

 

 

Total non-SBA commercial real estate loans, at fair value

 

 

 

 

 

253

 

 

 

 

 

Total commercial real estate loans

 

 

 

 

$

2,101

 

 

72%

 

9.24%

(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 September 30, 2023

 

 

15 largest loans as of September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

Balance

 

 

Origination date LTV

 

 

State

 

 

 

Balance

 

Origination date LTV

(Dollars in millions)

 

 

(Dollars in millions)

Texas

 

$

780

 

 

73%

 

 

Texas

 

 

$

46

 

75%

Georgia

 

 

243

 

 

69%

 

 

Texas

 

 

 

44

 

72%

Florida

 

 

204

 

 

70%

 

 

Tennessee

 

 

 

40

 

72%

Tennessee

 

 

88

 

 

70%

 

 

Texas

 

 

 

39

 

75%

Michigan

 

 

82

 

 

71%

 

 

Texas

 

 

 

39

 

79%

Ohio

 

 

72

 

 

67%

 

 

Texas

 

 

 

37

 

80%

Indiana

 

 

66

 

 

72%

 

 

Michigan

 

 

 

37

 

62%

Other States each <$65 million

 

 

566

 

 

73%

 

 

Florida

 

 

 

35

 

72%

Total

 

$

2,101

 

 

72%

 

 

Indiana

 

 

 

34

 

76%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

33

 

62%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

33

 

67%

 

 

 

 

 

 

 

 

 

Michigan

 

 

 

33

 

79%

 

 

 

 

 

 

 

 

 

Oklahoma

 

 

 

31

 

78%

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

30

 

71%

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

29

 

69%

 

 

 

 

 

 

 

 

 

15 largest commercial real estate loans

 

 

$

540

 

73%

Institutional banking loans outstanding at September 30, 2023

Type

Principal

 

% of total

 

 

(Dollars in millions)

 

 

SBLOC

$

1,008

 

53%

IBLOC

 

713

 

37%

Advisor financing

 

199

 

10%

Total

$

1,920

 

100%

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has 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. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.

Top 10 SBLOC loans at September 30, 2023

 

Principal amount

 

% Principal to collateral

 

(Dollars in millions)

 

$

12

 

25%

 

 

9

 

39%

 

 

9

 

44%

 

 

9

 

62%

 

 

9

 

95%

 

 

8

 

77%

 

 

8

 

71%

 

 

8

 

28%

 

 

7

 

75%

 

 

7

 

34%

Total and weighted average

$

86

 

54%

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 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, fifteen insurance companies have been approved and, as of September 30, 2023, all were rated A- (Excellent) or better by AM BEST.

Direct lease financing by type as of September 30, 2023

 

 

Principal balance(1)

 

% Total

 

 

(Dollars in millions)

 

 

Construction

$

118

 

18%

Waste management and remediation services

 

91

 

14%

Government agencies and public institutions(2)

 

89

 

13%

Real estate and rental and leasing

 

58

 

9%

Manufacturing

 

41

 

6%

Health care and social assistance

 

34

 

5%

Retail trade

 

34

 

5%

Finance and insurance

 

31

 

5%

Professional, scientific, and technical services

 

27

 

4%

Wholesale trade

 

16

 

2%

Transportation and warehousing

 

11

 

2%

Mining, quarrying, and oil and gas extraction

 

11

 

2%

Water supply and irrigation systems

 

9

 

1%

Other

 

100

 

14%

Total

$

670

 

100%

(1)Of the total $670.0 million of direct lease financing, $588.0 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

(2)Includes public universities and school districts.

Direct lease financing by state as of September 30, 2023

State

 

Principal balance

 

% Total

 

 

(Dollars in millions)

 

 

Florida

$

100

 

15%

Utah

 

66

 

10%

California

 

60

 

9%

Pennsylvania

 

41

 

6%

New Jersey

 

38

 

6%

New York

 

35

 

5%

North Carolina

 

34

 

5%

Texas

 

31

 

5%

Maryland

 

31

 

5%

Connecticut

 

28

 

4%

Idaho

 

17

 

3%

Washington

 

15

 

2%

Georgia

 

14

 

2%

Ohio

 

13

 

2%

Alabama

 

11

 

2%

Other States

 

136

 

19%

Total

$

670

 

100%

 

 

 

 

 

 

 

 

Capital ratios

Tier 1 capital

 

Tier 1 capital

 

Total capital

 

Common equity

 

to average

 

to risk-weighted

 

to risk-weighted

 

tier 1 to risk

 

assets ratio

 

assets ratio

 

assets ratio

 

weighted assets

As of September 30, 2023

 

 

 

 

 

 

 

The Bancorp, Inc.

10.92%

 

15.53%

 

16.04%

 

15.53%

The Bancorp Bank, National Association

12.13%

 

17.26%

 

17.77%

 

17.26%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

As of December 31, 2022

 

 

 

 

 

 

 

The Bancorp, Inc.

9.63%

 

13.40%

 

13.87%

 

13.40%

The Bancorp Bank, National Association

10.73%

 

14.95%

 

15.42%

 

14.95%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

September 30,

 

September 30,

 

2023

 

2022

 

2023

 

2022

Selected operating ratios

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(1)

 

2.71%

 

 

1.69%

 

 

2.66%

 

 

1.69%

Return on average equity(1)

 

26.12%

 

 

18.39%

 

 

27.01%

 

 

18.28%

Net interest margin

 

5.07%

 

 

3.69%

 

 

4.86%

 

 

3.32%

 

(1)Annualized

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share table

September 30,

 

June 30,

 

 

December 31,

 

September 30,

 

2023

 

2023

 

2022

 

2022

Book value per share

$

14.36

 

$

13.74

 

$

12.46

 

$

11.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality table

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

 

2023

 

2022

 

2022

 

2022

 

 

(Dollars in thousands)

Nonperforming loans to total loans

 

0.30%

 

 

0.28%

 

 

0.33%

 

 

0.16%

Nonperforming assets to total assets

 

0.46%

 

 

0.47%

 

 

0.50%

 

 

0.35%

Allowance for credit losses to total loans

 

0.46%

 

 

0.44%

 

 

0.41%

 

 

0.37%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

15,100

 

$

14,027

 

$

10,356

 

$

3,860

Loans 90 days past due still accruing interest

 

677

 

 

563

 

 

7,775

 

 

4,415

Other real estate owned

 

18,756

 

20,952

 

21,210

 

18,873

Total nonperforming assets

$

34,533

 

$

35,542

 

$

39,341

 

$

27,148

 

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (GDV) (1)

Three months ended

 

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2023

 

2023

 

2022

 

2022

 

 

(Dollars in thousands)

Prepaid and debit card GDV

$

32,972,249

 

$

32,776,154

 

$

29,454,074

 

$

28,119,428

(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 September 30, 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)

6.7

%

$

1,920

(24

%)

(27

%)

Small business lending(4)

7.0

%

 

832

13

%

12

%

Leasing

7.1

%

 

670

12

%

8

%

Commercial real estate (non-SBA loans, at fair value)

8.7

%

 

253

nm

nm

Real estate bridge loans (recorded at book value)

 

9.3

%

 

 

1,848

 

24

%

 

5

%

 

 

 

 

 

Weighted average yield

7.8

%

$

5,523

Non-interest income

% Growth

Deposits: Fintech solutions group

Current quarter

Year over year

Prepaid and debit card issuance, and other payments

2.5

%

$

6,007

11

%

nm

$

24.1

12

%

(1)Average rates are for the three months ended September 30, 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. Loan growth percentages exclude short-term PPP loans.

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.

 

September 30, 2023

 

 

(Dollars in thousands)

Federal Reserve Bank

$

1,938,195

Federal Home Loan Bank

 

731,500

Total lines of credit available

$

2,669,695

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.

 

September 30, 2023

Insured

 

91%

Low balance accounts

 

5%

Other uninsured

 

4%

Total deposits

 

100%

Calculation of efficiency ratio(1)

 

Three months ended

 

September 30,

 

December 31,

 

2023

 

2022

 

(Dollars in thousands)

Net interest income

$

88,882

 

$

76,760

Non-interest income

 

26,780

 

 

25,740

Total revenue

$

115,662

 

$

102,500

Non-interest expense

$

47,459

 

$

43,475

 

 

 

 

 

 

Efficiency ratio

 

41%

 

 

42%

(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/20231024091378/en/

The Bancorp, Inc. Andres Viroslav Director, Investor Relations 215-861-7990 andres.viroslav@thebancorp.com