Delaware
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23-3016517
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(State or other jurisdiction of
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(IRS Employer
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incorporation or organization)
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Identification No.)
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409 Silverside Road
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||
Wilmington, DE
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19809
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(Address of principal
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(Zip code)
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executive offices)
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Large accelerated filer [ ]
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Accelerated filer [X]
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Non-accelerated filer [ ]
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Smaller reporting company [ ]
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(Do not check if a smaller
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reporting company)
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Page
|
||
Part I Financial Information
|
||
Item 1.
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Financial Statements:
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4 |
Unaudited Consolidated Balance Sheets – March 31, 2013 and December 31, 2012
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4 | |
Unaudited Consolidated Statements of Operations – Three months ended March 31, 2013 and 2012
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5 | |
Unaudited Consolidated Statements of Comprehensive Income – Three months ended March 31, 2013 and 2012
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6 | |
Unaudited Consolidated Statements of Changes in Shareholders’ Equity – Three months ended March 31, 2013
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7 | |
Unaudited Consolidated Statements of Cash Flows – Three months ended March 31, 2013 and 2012
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8 | |
Unaudited Notes to Consolidated Financial Statements
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9 | |
Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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27 |
Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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41 |
Item 4.
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Controls and Procedures
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41 |
Part II Other Information
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||
Item 6.
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Exhibits
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42 |
Signatures
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42 |
THE BANCORP, INC. AND SUBSIDIARIES
|
||||||||
March 31,
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December 31,
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|||||||
2013
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2012
|
|||||||
(in thousands)
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
||||||||
Cash and due from banks
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$ | 14,108 | $ | 19,981 | ||||
Interest earning deposits at Federal Reserve Bank
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1,102,217 | 948,111 | ||||||
Securities purchased under agreements to resell
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22,831 | - | ||||||
Total cash and cash equivalents
|
1,139,156 | 968,092 | ||||||
Investment securities, available-for-sale, at fair value
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898,653 | 718,065 | ||||||
Investment securities, held-to-maturity (fair value $40,999 and $41,008, respectively)
|
45,064 | 45,179 | ||||||
Federal Home Loan and Atlantic Central Bankers Bank stock
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3,094 | 3,621 | ||||||
Commercial loans held for sale
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28,402 | 11,341 | ||||||
Loans, net of deferred loan costs
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1,968,890 | 1,902,854 | ||||||
Allowance for loan and lease losses
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(34,883 | ) | (33,040 | ) | ||||
Loans, net
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1,934,007 | 1,869,814 | ||||||
Premises and equipment, net
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10,965 | 10,368 | ||||||
Accrued interest receivable
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11,521 | 9,857 | ||||||
Intangible assets, net
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6,753 | 7,004 | ||||||
Other real estate owned
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4,543 | 4,241 | ||||||
Deferred tax asset, net
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23,055 | 22,789 | ||||||
Other assets
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26,882 | 29,288 | ||||||
Total assets
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$ | 4,132,095 | $ | 3,699,659 | ||||
LIABILITIES
|
||||||||
Deposits
|
||||||||
Demand and interest checking
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$ | 3,197,039 | $ | 2,775,207 | ||||
Savings and money market
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495,001 | 517,098 | ||||||
Time deposits
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12,602 | 12,582 | ||||||
Time deposits, $100,000 and over
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8,343 | 8,334 | ||||||
Total deposits
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3,712,985 | 3,313,221 | ||||||
Securities sold under agreements to repurchase
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16,672 | 18,548 | ||||||
Accrued interest payable
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95 | 103 | ||||||
Subordinated debenture
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13,401 | 13,401 | ||||||
Other liabilities
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42,866 | 17,709 | ||||||
Total liabilities
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3,786,019 | 3,362,982 | ||||||
SHAREHOLDERS' EQUITY
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||||||||
Common stock - authorized, 50,000,000 shares of $1.00 par value; 37,433,594 and 37,246,655
|
||||||||
shares issued at March 31, 2013 and December 31, 2012, respectively
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37,434 | 37,247 | ||||||
Treasury stock, at cost (100,000 shares)
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(866 | ) | (866 | ) | ||||
Additional paid-in capital
|
285,009 | 282,708 | ||||||
Retained earnings
|
14,753 | 7,347 | ||||||
Accumulated other comprehensive income
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9,746 | 10,241 | ||||||
Total shareholders' equity
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346,076 | 336,677 | ||||||
Total liabilities and shareholders' equity
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$ | 4,132,095 | $ | 3,699,659 | ||||
The accompanying notes are an integral part of these statements.
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THE BANCORP, INC. AND SUBSIDIARIES
|
||||||||
For the three months ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(in thousands, except per share data)
|
||||||||
Interest income
|
||||||||
Loans, including fees
|
$ | 20,322 | $ | 18,946 | ||||
Interest on investment securities:
|
||||||||
Taxable interest
|
3,487 | 3,190 | ||||||
Tax-exempt interest
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725 | 693 | ||||||
Federal funds sold/securities purchased under agreement to resell
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24 | - | ||||||
Interest bearing deposits
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838 | 1,053 | ||||||
25,396 | 23,882 | |||||||
Interest expense
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||||||||
Deposits
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2,498 | 2,722 | ||||||
Securities sold under agreements to repurchase
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14 | 27 | ||||||
Subordinated debenture
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200 | 217 | ||||||
2,712 | 2,966 | |||||||
Net interest income
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22,684 | 20,916 | ||||||
Provision for loan and lease losses
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5,500 | 5,220 | ||||||
Net interest income after provision for loan and lease losses
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17,184 | 15,696 | ||||||
Non-interest income
|
||||||||
Service fees on deposit accounts
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1,060 | 737 | ||||||
Merchant credit card processing and ACH fees
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867 | 673 | ||||||
Prepaid card fees
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11,974 | 9,046 | ||||||
Gain on sales of investment securities
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267 | - | ||||||
Other than temporary impairment on securities held-to-maturity (1)
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(20 | ) | - | |||||
Leasing income
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587 | 950 | ||||||
Debit card income
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196 | 156 | ||||||
Affinity fees
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856 | 603 | ||||||
Gain on sales of loans
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2,178 | - | ||||||
Other
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1,167 | 125 | ||||||
Total non-interest income
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19,132 | 12,290 | ||||||
Non-interest expense
|
||||||||
Salaries and employee benefits
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12,289 | 9,616 | ||||||
Depreciation and amortization
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796 | 644 | ||||||
Rent and related occupancy cost
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881 | 797 | ||||||
Data processing expense
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2,607 | 2,643 | ||||||
Printing and supplies
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432 | 456 | ||||||
Audit expense
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311 | 302 | ||||||
Legal expense
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619 | 536 | ||||||
Amortization of intangible assets
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250 | 250 | ||||||
Losses on sale and write downs on other real estate owned
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251 | 1,451 | ||||||
FDIC insurance
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976 | 934 | ||||||
Software
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809 | 567 | ||||||
Other real estate owned expense
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110 | 159 | ||||||
Other
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4,148 | 3,432 | ||||||
Total non-interest expense
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24,479 | 21,787 | ||||||
Income before income tax
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11,837 | 6,199 | ||||||
Income tax provision
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4,431 | 2,227 | ||||||
Net income
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$ | 7,406 | $ | 3,972 | ||||
Net income per share - basic
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$ | 0.20 | $ | 0.12 | ||||
Net income per share - diluted
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$ | 0.20 | $ | 0.12 | ||||
(1) Other than temporary impairment was due to credit loss and therefore did not include amounts due to market conditions.
|
||||||||
THE BANCORP INC. AND SUBSIDIARIES
|
||||||||
For the three months
|
||||||||
ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Net income
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$ | 7,406 | $ | 3,972 | ||||
Other comprehensive income, net of reclassifications into net income:
|
||||||||
Other comprehensive income (loss)
|
||||||||
Change in net unrealized gain/(loss) during the period
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(503 | ) | 3,248 | |||||
Reclassification adjustments for gains included in income
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(267 | ) | - | |||||
Amortization of losses previously held as available-for-sale
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8 | 3 | ||||||
Net unrealized gain/(loss) on investment securities
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(762 | ) | 3,251 | |||||
Deferred tax expense
|
||||||||
Securities available-for-sale
|
||||||||
Change in net unrealized gain/(loss) during the period
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(176 | ) | 1,137 | |||||
Reclassification adjustments for gains included in income
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(94 | ) | - | |||||
Amortization of losses previously held as available-for-sale
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3 | 1 | ||||||
Income tax expense related to items of other comprehensive income
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(267 | ) | 1,138 | |||||
Other comprehensive income(loss), net of tax and reclassifications into net income
|
(495 | ) | 2,113 | |||||
Comprehensive income
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$ | 6,911 | $ | 6,085 |
THE BANCORP INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
For the three months ended March 31, 2013
|
||||||||||||||||||||||||||||
(in thousands, except share data)
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Common
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Additional
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other
|
||||||||||||||||||||||||||
stock
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Common
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Treasury
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paid-in
|
Retained
|
comprehensive
|
|||||||||||||||||||||||
shares
|
stock
|
stock
|
capital
|
earnings
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income
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Total
|
||||||||||||||||||||||
Balance at January 1, 2013
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37,246,655 | $ | 37,247 | $ | (866 | ) | $ | 282,708 | $ | 7,347 | $ | 10,241 | $ | 336,677 | ||||||||||||||
Net income
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7,406 | 7,406 | ||||||||||||||||||||||||||
Issuance of common stock
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175,790 | 176 | - | 1,453 | - | - | 1,629 | |||||||||||||||||||||
Common stock issued from option exercises,
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||||||||||||||||||||||||||||
net of tax benefits
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11,149 | 11 | - | 103 | - | - | 114 | |||||||||||||||||||||
Stock-based compensation
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- | - | - | 745 | - | - | 745 | |||||||||||||||||||||
Other comprehensive loss, net of
|
||||||||||||||||||||||||||||
reclassification adjustments and tax
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- | - | - | - | - | (495 | ) | (495 | ) | |||||||||||||||||||
Balance at March 31, 2013
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37,433,594 | $ | 37,434 | $ | (866 | ) | $ | 285,009 | $ | 14,753 | $ | 9,746 | $ | 346,076 | ||||||||||||||
The accompanying notes are an integral part of this statement.
|
THE BANCORP, INC. AND SUBSIDIARIES
|
||||||||
(dollars in thousands)
|
||||||||
For the three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Operating activities
|
||||||||
Net income
|
$ | 7,406 | $ | 3,972 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities
|
||||||||
Depreciation and amortization
|
1,327 | 1,056 | ||||||
Provision for loan and lease losses
|
5,500 | 5,220 | ||||||
Net amortization of investment securities discounts/premiums
|
823 | 124 | ||||||
Stock-based compensation expense
|
745 | 630 | ||||||
Loans originated for resale
|
(28,402 | ) | - | |||||
Sale of loans originated for resale
|
13,519 | - | ||||||
Gain on sales of loans originated for resale
|
(2,178 | ) | - | |||||
Other than temporary impairment on securities held-to-maturity
|
20 | - | ||||||
Losses on sale and write downs on other real estate owned
|
251 | 1,451 | ||||||
Gain on sales of investment securities
|
(267 | ) | - | |||||
Increase in accrued interest receivable
|
(1,664 | ) | (556 | ) | ||||
(Decrease) increase in interest payable
|
(8 | ) | 6 | |||||
Decrease (increase) in other assets
|
2,133 | (2,137 | ) | |||||
Increase in other liabilities
|
2,630 | 2,550 | ||||||
Net cash provided by operating activities
|
1,835 | 12,316 | ||||||
Investing activities
|
||||||||
Purchase of investment securities available-for-sale
|
(228,054 | ) | (50,401 | ) | ||||
Proceeds from sale of investment securities available-for-sale
|
9,356 | - | ||||||
Proceeds from redemptions and prepayments of securities available-for-sale
|
59,942 | 20,504 | ||||||
Proceeds from sale of other real estate owned
|
694 | 118 | ||||||
Net increase in loans
|
(70,940 | ) | (9,217 | ) | ||||
Proceeds from sale of fixed assets
|
- | 69 | ||||||
Purchases of premises and equipment
|
(1,392 | ) | (869 | ) | ||||
Net cash used in investing activities
|
(230,394 | ) | (39,796 | ) | ||||
Financing activities
|
||||||||
Net increase in deposits
|
399,764 | 1,091,327 | ||||||
Net decrease in securities sold under agreements to repurchase
|
(1,876 | ) | (7,271 | ) | ||||
Proceeds from issuance of common stock
|
1,629 | - | ||||||
Proceeds from the exercise of options
|
114 | 39 | ||||||
Excess tax benefit from share-based payment arrangements
|
(8 | ) | (2 | ) | ||||
Net cash provided by financing activities
|
399,623 | 1,084,093 | ||||||
Net increase in cash and cash equivalents
|
171,064 | 1,056,613 | ||||||
Cash and cash equivalents, beginning of period
|
968,092 | 749,174 | ||||||
Cash and cash equivalents, end of period
|
$ | 1,139,156 | $ | 1,805,787 | ||||
Supplemental disclosure:
|
||||||||
Interest paid
|
$ | 2,720 | $ | 2,960 | ||||
Taxes paid
|
$ | 2,244 | $ | 422 | ||||
Transfers of loans to other real estate owned
|
$ | 1,247 | $ | 1,890 | ||||
The accompanying notes are an integral part of these statements.
|
March 31
|
||||||||
2013
|
2012
|
|||||||
Risk-free interest rate
|
1.86 | % | 1.97 | % | ||||
Expected dividend yield
|
- | - | ||||||
Expected volatility
|
55.65 | % | 72.90 | % | ||||
Expected lives (years)
|
4.19 | 4.83 |
Weighted-
|
||||||||||||||||
average
|
||||||||||||||||
Weighted
|
remaining
|
|||||||||||||||
average
|
contractual
|
Aggregate
|
||||||||||||||
exercise
|
term
|
intrinsic
|
||||||||||||||
Shares
|
price
|
(years)
|
value
|
|||||||||||||
Outstanding at January 1, 2013
|
3,045,493 | $ | 9.90 | - | $ | - | ||||||||||
Granted
|
215,000 | 10.45 | - | - | ||||||||||||
Exercised
|
(11,149 | ) | 10.27 | - | - | |||||||||||
Expired
|
- | - | - | - | ||||||||||||
Forfeited
|
(1,000 | ) | 15.94 | - | - | |||||||||||
Outstanding at March 31, 2013
|
3,248,344 | $ | 9.94 | 6.01 | $ | - | ||||||||||
Exercisable at March 31, 2013
|
1,872,594 | $ | 10.91 | 4.29 | $ | 6,198,315 |
Average
|
||||||||||||
remaining
|
||||||||||||
Weighted-
|
vesting
|
|||||||||||
Average
|
period
|
|||||||||||
Shares
|
Price
|
(years)
|
||||||||||
Outstanding at January 1, 2013
|
||||||||||||
Granted
|
197,500 | $ | 10.45 | 4.0 | ||||||||
Exercised
|
- | - | - | |||||||||
Expired/forfeited
|
- | - | - | |||||||||
Outstanding at March 31, 2013
|
197,500 | $ | 10.45 | 3.8 |
For the three months ended
|
||||||||||||
March 31, 2013
|
||||||||||||
Income
|
Shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
amount
|
||||||||||
(dollars in thousands except per share data)
|
||||||||||||
Basic earnings per share
|
||||||||||||
Net income available to common shareholders
|
$ | 7,406 | 37,291,820 | $ | 0.20 | |||||||
Effect of dilutive securities
|
||||||||||||
Common stock options
|
- | 480,302 | - | |||||||||
Diluted earnings per share
|
||||||||||||
Net income available to common shareholders
|
$ | 7,406 | 37,772,122 | $ | 0.20 |
For the three months ended
|
||||||||||||
March 31, 2012
|
||||||||||||
Income
|
Shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
amount
|
||||||||||
(dollars in thousands except per share data)
|
||||||||||||
Basic earnings per share
|
||||||||||||
Net income available to common shareholders
|
$ | 3,972 | 33,097,325 | $ | 0.12 | |||||||
Effect of dilutive securities
|
||||||||||||
Common stock options
|
- | 9,712 | - | |||||||||
Diluted earnings per share
|
||||||||||||
Net income available to common shareholders
|
$ | 3,972 | 33,107,037 | $ | 0.12 |
Available-for-sale
|
March 31, 2013
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
U.S. Government agency securities
|
$ | 11,816 | $ | 236 | $ | - | $ | 12,052 | ||||||||
Federally insured student loan securities
|
151,663 | 1,575 | (195 | ) | 153,043 | |||||||||||
Tax-exempt obligations of states and political subdivisions
|
183,090 | 4,492 | (128 | ) | 187,454 | |||||||||||
Taxable obligations of states and political subdivisions
|
54,450 | 3,182 | (28 | ) | 57,604 | |||||||||||
Residential mortgage-backed securities
|
289,750 | 3,255 | (759 | ) | 292,246 | |||||||||||
Commercial mortgage-backed securities
|
94,253 | 4,239 | (105 | ) | 98,387 | |||||||||||
Other debt securities
|
97,486 | 712 | (331 | ) | 97,867 | |||||||||||
$ | 882,508 | $ | 17,691 | $ | (1,546 | ) | $ | 898,653 | ||||||||
Held-to-maturity
|
March 31, 2013
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
Other debt securities - single issuers
|
$ | 18,986 | $ | 263 | $ | (4,221 | ) | $ | 15,028 | |||||||
Other debt securities - pooled
|
26,078 | 38 | (145 | ) | 25,971 | |||||||||||
$ | 45,064 | $ | 301 | $ | (4,366 | ) | $ | 40,999 |
Available-for-sale
|
December 31, 2012
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
cost
|
Gains
|
Losses
|
value
|
|||||||||||||
U.S. Government agency securities
|
$ | 7,255 | $ | 245 | $ | - | $ | 7,500 | ||||||||
Federally insured student loan securities
|
142,851 | 1,002 | (83 | ) | 143,770 | |||||||||||
Tax-exempt obligations of states and political subdivisions
|
112,393 | 5,314 | (2 | ) | 117,705 | |||||||||||
Taxable obligations of states and political subdivisions
|
38,291 | 3,118 | (21 | ) | 41,388 | |||||||||||
Residential mortgage-backed securities
|
275,197 | 3,389 | (779 | ) | 277,807 | |||||||||||
Commercial mortgage-backed securities
|
92,765 | 4,298 | (32 | ) | 97,031 | |||||||||||
Corporate and other debt securities
|
32,399 | 769 | (304 | ) | 32,864 | |||||||||||
$ | 701,151 | $ | 18,135 | $ | (1,221 | ) | $ | 718,065 | ||||||||
Held-to-maturity
|
December 31, 2012
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
cost
|
Gains
|
Losses
|
value
|
|||||||||||||
Corporate and other debt securities:
|
||||||||||||||||
Single issuers
|
$ | 18,980 | $ | 218 | $ | (4,241 | ) | $ | 14,957 | |||||||
Pooled
|
26,199 | 36 | (184 | ) | 26,051 | |||||||||||
$ | 45,179 | $ | 254 | $ | (4,425 | ) | $ | 41,008 |
Available-for-sale
|
Held-to-maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
cost
|
value
|
cost
|
value
|
|||||||||||||
Due before one year
|
$ | 73,458 | $ | 73,459 | $ | - | $ | - | ||||||||
Due after one year through five years
|
299,775 | 305,698 | - | - | ||||||||||||
Due after five years through ten years
|
56,723 | 57,861 | 8,223 | 8,018 | ||||||||||||
Due after ten years
|
452,552 | 461,635 | 36,841 | 32,981 | ||||||||||||
$ | 882,508 | $ | 898,653 | $ | 45,064 | $ | 40,999 |
Available-for-sale
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||||||
Number of securities
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
||||||||||||||||||||||
Description of Securities
|
||||||||||||||||||||||||||||
Federally insured student loan securities
|
6 | $ | 42,853 | $ | (195 | ) | $ | - | $ | - | $ | 42,853 | $ | (195 | ) | |||||||||||||
Tax-exempt obligations of states and
|
||||||||||||||||||||||||||||
political subdivisions
|
65 | 52,622 | (128 | ) | - | - | 52,622 | (128 | ) | |||||||||||||||||||
Taxable obligations of states and
|
||||||||||||||||||||||||||||
political subdivisions
|
6 | 9,518 | (21 | ) | 3,026 | (7 | ) | 12,544 | (28 | ) | ||||||||||||||||||
Residential mortgage-backed securities
|
22 | 127,707 | (705 | ) | 2,258 | (54 | ) | 129,965 | (759 | ) | ||||||||||||||||||
Commercial mortgage-backed securities
|
6 | 8,565 | (88 | ) | 18,576 | (17 | ) | 27,141 | (105 | ) | ||||||||||||||||||
Corporate and other debt securities
|
55 | 49,155 | (98 | ) | 7,506 | (233 | ) | 56,661 | (331 | ) | ||||||||||||||||||
Total temporarily impaired
|
||||||||||||||||||||||||||||
investment securities
|
160 | $ | 290,420 | $ | (1,235 | ) | $ | 31,366 | $ | (311 | ) | $ | 321,786 | $ | (1,546 | ) | ||||||||||||
Held-to-maturity
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||||||
Number of securities
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
||||||||||||||||||||||
Description of Securities
|
||||||||||||||||||||||||||||
Corporate and other debt securities:
Single issuers
|
2 | $ | - | $ | - | $ | 7,874 | $ | (4,221 | ) | $ | 7,874 | $ | (4,221 | ) | |||||||||||||
Pooled
|
1 | - | - | 529 | (145 | ) | 529 | (145 | ) | |||||||||||||||||||
Total temporarily impaired
|
||||||||||||||||||||||||||||
investment securities
|
3 | $ | - | $ | - | $ | 8,403 | $ | (4,366 | ) | $ | 8,403 | $ | (4,366 | ) |
Available-for-sale
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||||||
Number of securities
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
||||||||||||||||||||||
Description of Securities
|
||||||||||||||||||||||||||||
Federally insured student loan securities
|
5 | $ | 33,615 | $ | (83 | ) | $ | - | $ | - | $ | 33,615 | $ | (83 | ) | |||||||||||||
Tax-exempt obligations of states and
|
||||||||||||||||||||||||||||
political subdivisions
|
4 | 4,511 | (2 | ) | - | - | 4,511 | (2 | ) | |||||||||||||||||||
Taxable obligations of states and
|
||||||||||||||||||||||||||||
political subdivisions
|
6 | 2,357 | (11 | ) | 4,529 | (10 | ) | 6,886 | (21 | ) | ||||||||||||||||||
Residential mortgage-backed securities
|
17 | 107,926 | (779 | ) | - | - | 107,926 | (779 | ) | |||||||||||||||||||
Commercial mortgage-backed securities
|
2 | 5,447 | (32 | ) | - | - | 5,447 | (32 | ) | |||||||||||||||||||
Corporate and other debt securities
|
4 | 1,485 | (15 | ) | 8,623 | (289 | ) | 10,108 | (304 | ) | ||||||||||||||||||
Total temporarily impaired
|
||||||||||||||||||||||||||||
investment securities
|
38 | $ | 155,341 | $ | (922 | ) | $ | 13,152 | $ | (299 | ) | $ | 168,493 | $ | (1,221 | ) |
Held-to-maturity
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||||||
Number of securities
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
Fair Value
|
Unrealized losses
|
||||||||||||||||||||||
Description of Securities
|
||||||||||||||||||||||||||||
Corporate and other debt securities:
Single issuers
|
2 | $ | - | $ | - | $ | 7,850 | $ | (4,241 | ) | $ | 7,850 | $ | (4,241 | ) | |||||||||||||
Pooled
|
1 | - | - | 593 | (184 | ) | 593 | (184 | ) | |||||||||||||||||||
Total temporarily impaired
|
||||||||||||||||||||||||||||
investment securities
|
3 | $ | - | $ | - | $ | 8,443 | $ | (4,425 | ) | $ | 8,443 | $ | (4,425 | ) |
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Commercial
|
$ | 477,690 | $ | 470,109 | ||||
Commercial mortgage *
|
673,916 | 617,069 | ||||||
Construction
|
263,579 | 258,684 | ||||||
Total commercial loans
|
1,415,185 | 1,345,862 | ||||||
Direct lease financing
|
157,508 | 156,697 | ||||||
Residential mortgage
|
94,238 | 97,717 | ||||||
Consumer loans and others
|
296,370 | 296,915 | ||||||
1,963,301 | 1,897,191 | |||||||
Unamortized loan costs
|
5,589 | 5,663 | ||||||
Total loans, net of deferred loan costs
|
$ | 1,968,890 | $ | 1,902,854 | ||||
Supplemental loan data:
|
||||||||
Construction 1-4 family
|
$ | 65,669 | $ | 60,343 | ||||
Commercial construction, acquisition and development
|
197,910 | 198,341 | ||||||
|
$ | 263,579 | $ | 258,684 | ||||
* At Mach 31, 2013, our owner occupied loans amounted to $198.8 million, or 29.5% of commercial mortgages as compared to $172.5 million, or 28.0% at December 31, 2012.
|
Recorded
investment
|
Unpaid
principal
balance
|
Related
allowance
|
Average
recorded
investment
|
Interest
income
recognized
|
||||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Without an allowance recorded
|
||||||||||||||||||||
Construction
|
$ | 1,407 | $ | 2,745 | $ | - | $ | 1,532 | $ | - | ||||||||||
Commercial mortgage
|
5,974 | 8,170 | - | 5,278 | - | |||||||||||||||
Commercial
|
5,991 | 7,117 | - | 5,173 | - | |||||||||||||||
Consumer - home equity
|
927 | 927 | - | 927 | - | |||||||||||||||
Residential
|
- | - | - | - | - | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Construction
|
1,338 | 1,473 | 612 | 2,248 | - | |||||||||||||||
Commercial mortgage
|
8,085 | 8,085 | 2,645 | 6,446 | - | |||||||||||||||
Commercial
|
10,251 | 12,479 | 4,470 | 8,258 | - | |||||||||||||||
Consumer - home equity
|
- | - | - | - | - | |||||||||||||||
Residential
|
90 | 90 | 69 | 90 | - | |||||||||||||||
Total
|
||||||||||||||||||||
Construction
|
$ | 2,745 | $ | 4,218 | $ | 612 | $ | 3,780 | $ | - | ||||||||||
Commercial mortgage
|
$ | 14,059 | $ | 16,255 | $ | 2,645 | $ | 11,724 | $ | - | ||||||||||
Commercial
|
$ | 16,242 | $ | 19,596 | $ | 4,470 | $ | 13,431 | $ | - | ||||||||||
Consumer - home equity
|
$ | 927 | $ | 927 | $ | - | $ | 927 | $ | - | ||||||||||
Residential
|
$ | 90 | $ | 90 | $ | 69 | $ | 90 | $ | - | ||||||||||
December 31, 2012
|
||||||||||||||||||||
Without an allowance recorded
|
||||||||||||||||||||
Construction
|
$ | 1,656 | $ | 5,054 | $ | - | $ | 1,060 | $ | - | ||||||||||
Commercial mortgage
|
4,583 | 6,730 | - | 2,563 | - | |||||||||||||||
Commercial
|
4,356 | 5,481 | - | 2,485 | - | |||||||||||||||
Consumer - home equity
|
927 | 927 | - | 927 | - | |||||||||||||||
Residential
|
- | - | - | 253 | - | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Construction
|
3,158 | 4,147 | 1,273 | 6,650 | - | |||||||||||||||
Commercial mortgage
|
4,806 | 4,806 | 1,706 | 4,233 | - | |||||||||||||||
Commercial
|
6,264 | 7,067 | 4,069 | 5,571 | - | |||||||||||||||
Consumer - home equity
|
- | - | - | 65 | - | |||||||||||||||
Residential
|
91 | 91 | 69 | 56 | - | |||||||||||||||
Total
|
||||||||||||||||||||
Construction
|
$ | 4,814 | $ | 9,201 | $ | 1,273 | $ | 7,710 | $ | - | ||||||||||
Commercial mortgage
|
$ | 9,389 | $ | 11,536 | $ | 1,706 | $ | 6,796 | $ | - | ||||||||||
Commercial
|
$ | 10,620 | $ | 12,548 | $ | 4,069 | $ | 8,056 | $ | - | ||||||||||
Consumer - home equity
|
$ | 927 | $ | 927 | $ | - | $ | 992 | $ | - | ||||||||||
Residential
|
$ | 91 | $ | 91 | $ | 69 | $ | 309 | $ | - |
March 31,
|
March 31,
|
December 31,
|
||||||||||
2013
|
2012
|
2012
|
||||||||||
(in thousands)
|
||||||||||||
Non-accrual loans
|
||||||||||||
Construction
|
$ | 2,745 | $ | 10,375 | $ | 4,538 | ||||||
Commercial mortgage
|
14,059 | 3,609 | 9,175 | |||||||||
Commercial
|
16,242 | 6,018 | 10,459 | |||||||||
Consumer
|
927 | 927 | 927 | |||||||||
Residential
|
90 | - | 91 | |||||||||
Total non-accrual loans
|
34,063 | 20,929 | 25,190 | |||||||||
Loans past due 90 days or more
|
1,291 | 3,914 | 4,435 | |||||||||
Total non-performing loans
|
35,354 | 24,843 | 29,625 | |||||||||
Other real estate owned
|
4,543 | 7,726 | 4,241 | |||||||||
Total non-performing assets
|
$ | 39,897 | $ | 32,569 | $ | 33,866 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Number
|
Pre-modification recorded investment
|
Post-modification recorded investment
|
Number
|
Pre-modification recorded investment
|
Post-modification recorded investment
|
|||||||||||||||||||
Commercial
|
2 | $ | 1,287 | $ | 1,287 | 2 | $ | 2,416 | $ | 2,416 | ||||||||||||||
Commercial mortgage
|
3 | 3,119 | 3,119 | 3 | 3,144 | 3,144 | ||||||||||||||||||
Construction
|
3 | 1,469 | 1,469 | 3 | 1,479 | 1,479 | ||||||||||||||||||
Residential mortgage
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
8 | $ | 5,875 | $ | 5,875 | 8 | $ | 7,039 | $ | 7,039 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Adjusted interest rate
|
Extended maturity
|
Combined rate and maturity
|
Adjusted interest rate
|
Extended maturity
|
Combined rate and maturity
|
|||||||||||||||||||
Commercial
|
$ | - | $ | 1,127 | $ | 160 | $ | - | $ | 2,255 | $ | 161 | ||||||||||||
Commercial mortgage
|
703 | 214 | 2,202 | 714 | 214 | 2,216 | ||||||||||||||||||
Construction
|
- | 1,469 | - | - | 1,479 | - | ||||||||||||||||||
Residential mortgage
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 703 | $ | 2,810 | $ | 2,362 | $ | 714 | $ | 3,948 | $ | 2,377 |
Number
|
Pre-modification recorded investment
|
|||||||
Commercial
|
1 | $ | 161 | |||||
Commercial mortgage
|
- | - | ||||||
Construction
|
- | - | ||||||
Residential mortgage
|
- | - | ||||||
Total
|
1 | $ | 161 | |||||
Commercial
|
Residential
|
Direct lease
|
||||||||||||||||||||||||||||||
Three months ended
|
Commercial
|
mortgage
|
Construction
|
mortgage
|
Consumer
|
financing
|
Unallocated
|
Total
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 12,244 | $ | 6,223 | $ | 9,505 | $ | 2,089 | $ | 1,799 | $ | 239 | $ | 941 | $ | 33,040 | ||||||||||||||||
Charge-offs
|
(1,561 | ) | (512 | ) | (1,608 | ) | - | (54 | ) | - | (3,735 | ) | ||||||||||||||||||||
Recoveries
|
31 | 4 | - | - | 43 | 78 | ||||||||||||||||||||||||||
Provision
|
2,484 | 2,550 | 1,293 | 193 | (437 | ) | (6 | ) | (577 | ) | 5,500 | |||||||||||||||||||||
Ending balance
|
$ | 13,198 | $ | 8,265 | $ | 9,190 | $ | 2,282 | $ | 1,351 | $ | 233 | $ | 364 | $ | 34,883 | ||||||||||||||||
Ending balance: Individually evaluated for impairment
|
$ | 4,470 | $ | 2,645 | $ | 612 | $ | 69 | $ | - | $ | - | $ | - | $ | 7,796 | ||||||||||||||||
Ending balance: Collectively evaluated for impairment
|
$ | 8,728 | $ | 5,620 | $ | 8,578 | $ | 2,213 | $ | 1,351 | $ | 233 | $ | 364 | $ | 27,087 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Ending balance
|
$ | 477,690 | $ | 673,916 | $ | 263,579 | $ | 94,238 | $ | 296,370 | $ | 157,508 | $ | 5,589 | $ | 1,968,890 | ||||||||||||||||
Ending balance: Individually evaluated for impairment
|
$ | 16,242 | $ | 14,059 | $ | 2,745 | $ | 90 | $ | 927 | $ | - | $ | - | $ | 34,063 | ||||||||||||||||
Ending balance: Collectively evaluated for impairment
|
$ | 461,448 | $ | 659,857 | $ | 260,834 | $ | 94,148 | $ | 295,443 | $ | 157,508 | $ | 5,589 | $ | 1,934,827 | ||||||||||||||||
Commercial
|
Residential
|
Direct lease
|
||||||||||||||||||||||||||||||
Twelve months ended
|
Commercial
|
mortgage
|
Construction
|
mortgage
|
Consumer
|
financing
|
Unallocated
|
Total
|
||||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 10,214 | $ | 9,274 | $ | 5,352 | $ | 2,090 | $ | 1,346 | $ | 254 | $ | 1,038 | $ | 29,568 | ||||||||||||||||
Charge-offs
|
(3,682 | ) | (5,828 | ) | (11,317 | ) | - | (339 | ) | (87 | ) | - | (21,253 | ) | ||||||||||||||||||
Recoveries
|
566 | 1,528 | 96 | 85 | - | 12 | - | 2,287 | ||||||||||||||||||||||||
Provision
|
5,146 | 1,249 | 15,374 | (86 | ) | 792 | 60 | (97 | ) | 22,438 | ||||||||||||||||||||||
Ending balance
|
$ | 12,244 | $ | 6,223 | $ | 9,505 | $ | 2,089 | $ | 1,799 | $ | 239 | $ | 941 | $ | 33,040 | ||||||||||||||||
Ending balance: Individually evaluated for impairment
|
$ | 4,069 | $ | 1,706 | $ | 1,273 | $ | 69 | $ | - | $ | - | $ | - | $ | 7,117 | ||||||||||||||||
Ending balance: Collectively evaluated for impairment
|
$ | 8,175 | $ | 4,517 | $ | 8,232 | $ | 2,020 | $ | 1,799 | $ | 239 | $ | 941 | $ | 25,923 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Ending balance
|
$ | 470,109 | $ | 617,069 | $ | 258,684 | $ | 97,717 | $ | 296,915 | $ | 156,697 | $ | 5,663 | $ | 1,902,854 | ||||||||||||||||
Ending balance: Individually evaluated for impairment
|
$ | 10,620 | $ | 9,389 | $ | 4,814 | $ | 91 | $ | 927 | $ | - | $ | - | $ | 25,841 | ||||||||||||||||
Ending balance: Collectively evaluated for impairment
|
$ | 459,489 | $ | 607,680 | $ | 253,870 | $ | 97,626 | $ | 295,988 | $ | 156,697 | $ | 5,663 | $ | 1,877,013 | ||||||||||||||||
Commercial
|
Residential
|
Direct lease
|
||||||||||||||||||||||||||||||
Three months ended
|
Commercial
|
mortgage
|
Construction
|
mortgage
|
Consumer
|
financing
|
Unallocated
|
Total
|
||||||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 10,214 | $ | 9,274 | $ | 5,352 | $ | 2,090 | $ | 1,346 | $ | 254 | $ | 1,038 | $ | 29,568 | ||||||||||||||||
Charge-offs
|
(1,457 | ) | (991 | ) | (702 | ) | - | (172 | ) | (86 | ) | - | (3,408 | ) | ||||||||||||||||||
Recoveries
|
35 | 1 | 1 | 83 | - | - | - | 120 | ||||||||||||||||||||||||
Provision
|
1,342 | 698 | 4,007 | (248 | ) | 50 | 52 | (681 | ) | 5,220 | ||||||||||||||||||||||
Ending balance
|
$ | 10,134 | $ | 8,982 | $ | 8,658 | $ | 1,925 | $ | 1,224 | $ | 220 | $ | 357 | $ | 31,500 | ||||||||||||||||
Ending balance: Individually evaluated for impairment
|
$ | 2,376 | $ | 1,133 | $ | 5,259 | $ | - | $ | - | $ | - | $ | - | $ | 8,768 | ||||||||||||||||
Ending balance: Collectively evaluated for impairment
|
$ | 7,758 | $ | 7,849 | $ | 3,399 | $ | 1,925 | $ | 1,224 | $ | 220 | $ | 357 | $ | 22,732 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Ending balance
|
$ | 445,912 | $ | 617,871 | $ | 248,232 | $ | 94,438 | $ | 208,584 | $ | 130,321 | $ | 3,509 | $ | 1,748,867 | ||||||||||||||||
Ending balance: Individually evaluated for impairment
|
$ | 6,018 | $ | 3,823 | $ | 10,651 | $ | - | $ | 927 | $ | - | $ | - | $ | 21,419 | ||||||||||||||||
Ending balance: Collectively evaluated for impairment
|
$ | 439,894 | $ | 614,048 | $ | 237,581 | $ | 94,438 | $ | 207,657 | $ | 130,321 | $ | 3,509 | $ | 1,727,448 |
30-59 Days
|
60-89 Days
|
Greater than
|
Total
|
Total
|
||||||||||||||||||||||||
March 31, 2013
|
past due
|
past due
|
90 days
|
Non-accrual
|
past due
|
Current
|
loans
|
|||||||||||||||||||||
Commercial
|
$ | 570 | $ | - | $ | - | $ | 16,242 | $ | 16,812 | $ | 460,878 | $ | 477,690 | ||||||||||||||
Commercial mortgage
|
- | 681 | - | 14,059 | 14,740 | 659,176 | 673,916 | |||||||||||||||||||||
Construction
|
1,069 | - | - | 2,745 | 3,814 | 259,765 | 263,579 | |||||||||||||||||||||
Direct lease financing
|
1,338 | 93 | 116 | - | 1,547 | 155,961 | 157,508 | |||||||||||||||||||||
Consumer - other
|
519 | - | - | 927 | 1,446 | 250,647 | 252,093 | |||||||||||||||||||||
Consumer - home equity
|
- | - | - | - | - | 44,277 | 44,277 | |||||||||||||||||||||
Residential mortgage
|
- | - | 1,175 | 90 | 1,265 | 92,973 | 94,238 | |||||||||||||||||||||
Unamortized costs
|
- | - | - | - | - | 5,589 | 5,589 | |||||||||||||||||||||
$ | 3,496 | $ | 774 | $ | 1,291 | $ | 34,063 | $ | 39,624 | $ | 1,929,266 | $ | 1,968,890 | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||
Commercial
|
$ | - | $ | 5,750 | $ | 1,350 | $ | 10,459 | $ | 17,559 | $ | 452,550 | $ | 470,109 | ||||||||||||||
Commercial mortgage
|
686 | 300 | 2,412 | 9,175 | 12,573 | 604,496 | 617,069 | |||||||||||||||||||||
Construction
|
- | - | 667 | 4,538 | 5,205 | 253,479 | 258,684 | |||||||||||||||||||||
Direct lease financing
|
1,313 | 1,168 | 6 | - | 2,487 | 154,210 | 156,697 | |||||||||||||||||||||
Consumer - other
|
330 | 99 | - | 927 | 1,356 | 251,915 | 253,271 | |||||||||||||||||||||
Consumer - home equity
|
2 | 6 | - | - | 8 | 43,636 | 43,644 | |||||||||||||||||||||
Residential mortgage
|
749 | 1,175 | - | 91 | 2,015 | 95,702 | 97,717 | |||||||||||||||||||||
Unamortized costs
|
- | - | - | - | - | 5,663 | 5,663 | |||||||||||||||||||||
$ | 3,080 | $ | 8,498 | $ | 4,435 | $ | 25,190 | $ | 41,203 | $ | 1,861,651 | $ | 1,902,854 |
Commercial
|
Residential
|
|||||||||||||||||||||||||||||||
Commercial
|
Construction
|
mortgage
|
mortgage
|
|||||||||||||||||||||||||||||
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
|||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 315,766 | $ | 335,563 | $ | 245,914 | $ | 247,214 | $ | 480,489 | $ | 489,615 | $ | 28,039 | $ | 28,495 | ||||||||||||||||
Special Mention
|
1,031 | 6,788 | - | - | 21,450 | 23,200 | - | 1,175 | ||||||||||||||||||||||||
Substandard
|
17,095 | 12,252 | 3,480 | 5,205 | 14,811 | 9,704 | 1,175 | - | ||||||||||||||||||||||||
Doubtful
|
- | - | 334 | - | - | - | 90 | 91 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Unrated subject to review *
|
33,666 | 17,614 | 10,511 | 2,301 | 80,472 | 18,286 | 1,891 | 236 | ||||||||||||||||||||||||
Unrated not subject to review *
|
110,132 | 97,892 | 3,340 | 3,964 | 76,694 | 76,264 | 63,043 | 67,720 | ||||||||||||||||||||||||
Total
|
$ | 477,690 | $ | 470,109 | $ | 263,579 | $ | 258,684 | $ | 673,916 | $ | 617,069 | $ | 94,238 | $ | 97,717 | ||||||||||||||||
Direct lease
|
||||||||||||||||||||||||||||||||
Consumer
|
financing
|
Unamortized costs
|
Total
|
|||||||||||||||||||||||||||||
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
|||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 91,510 | $ | 89,128 | $ | 57,813 | $ | 52,241 | $ | - | $ | - | $ | 1,219,531 | $ | 1,242,256 | ||||||||||||||||
Special Mention
|
- | 99 | - | - | - | - | 22,481 | 31,262 | ||||||||||||||||||||||||
Substandard
|
3,724 | 3,626 | 42 | 69 | - | - | 40,327 | 30,856 | ||||||||||||||||||||||||
Doubtful
|
- | - | - | - | - | - | 424 | 91 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Unrated subject to review *
|
2,476 | 4,593 | - | 3,337 | - | - | 129,016 | 46,367 | ||||||||||||||||||||||||
Unrated not subject to review *
|
198,660 | 199,469 | 99,653 | 101,050 | 5,589 | 5,663 | 557,111 | 552,022 | ||||||||||||||||||||||||
Total
|
$ | 296,370 | $ | 296,915 | $ | 157,508 | $ | 156,697 | $ | 5,589 | $ | 5,663 | $ | 1,968,890 | $ | 1,902,854 |
March 31, 2013
|
||||||||||||||||||||
Quoted prices in active
|
Significant other
|
Significant
|
||||||||||||||||||
markets for identical
|
observable
|
unobservable
|
||||||||||||||||||
|
Carrying
|
Estimated
|
assets
|
inputs
|
inputs
|
|||||||||||||||
amount
|
fair value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 1,139,156 | $ | 1,139,156 | $ | 1,139,156 | $ | - | $ | - | ||||||||||
Investment securities available-for-sale
|
898,653 | 898,653 | - | 898,066 | 587 | |||||||||||||||
Investment securities held-to-maturity
|
45,064 | 40,999 | - | - | 40,999 | |||||||||||||||
Federal Home Loan and Atlantic Central Bankers Bank stock
|
3,094 | 3,094 | 3,094 | - | - | |||||||||||||||
Commercial loans held for sale
|
28,402 | 28,402 | - | - | 28,402 | |||||||||||||||
Loans, net
|
1,968,890 | 1,967,157 | - | - | 1,967,157 | |||||||||||||||
Demand and interest checking
|
3,197,039 | 3,197,039 | 3,197,039 | - | - | |||||||||||||||
Savings and money market
|
495,001 | 495,001 | 495,001 | - | - | |||||||||||||||
Time deposits
|
20,945 | 20,988 | - | - | 20,988 | |||||||||||||||
Subordinated debenture
|
13,401 | 7,933 | - | - | 7,933 | |||||||||||||||
Securities sold under agreements to repurchase
|
16,672 | 16,672 | 16,672 | - | - | |||||||||||||||
Accrued interest payable
|
95 | 95 | 95 | - | - | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Quoted prices in active
|
Significant other
|
Significant
|
||||||||||||||||||
markets for identical
|
observable
|
unobservable
|
||||||||||||||||||
|
Carrying
|
Estimated
|
assets
|
inputs
|
inputs
|
|||||||||||||||
amount
|
fair value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 968,092 | $ | 968,092 | $ | 968,092 | $ | - | $ | - | ||||||||||
Investment securities available-for-sale
|
718,065 | 718,065 | - | 717,468 | 597 | |||||||||||||||
Investment securities held-to-maturity
|
45,179 | 41,008 | - | - | 41,008 | |||||||||||||||
Federal Home Loan and Atlantic Central Bankers Bank stock
|
3,621 | 3,621 | 3,621 | - | - | |||||||||||||||
Commercial loans held for sale
|
11,341 | 11,341 | - | - | 11,341 | |||||||||||||||
Loans, net
|
1,902,854 | 1,900,191 | - | - | 1,900,191 | |||||||||||||||
Demand and interest checking
|
2,775,207 | 2,775,207 | 2,775,207 | - | - | |||||||||||||||
Savings and money market
|
517,098 | 517,098 | 517,098 | - | - | |||||||||||||||
Time deposits
|
20,916 | 20,985 | - | - | 20,985 | |||||||||||||||
Subordinated debentures
|
13,401 | 9,287 | - | - | 9,287 | |||||||||||||||
Securities sold under agreements to repurchase
|
18,548 | 18,548 | 18,548 | - | - | |||||||||||||||
Accrued interest payable
|
103 | 103 | 103 | - | - |
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted prices in active
|
Significant other
|
Significant
|
||||||||||||||
markets for identical
|
observable
|
unobservable
|
||||||||||||||
Fair value
|
assets
|
inputs
|
inputs
|
|||||||||||||
March 31, 2013
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Investment
|
||||||||||||||||
U.S. Government agency securities
|
$ | 12,052 | $ | - | $ | 12,052 | $ | - | ||||||||
Federally insured student loan securities
|
153,043 | - | 153,043 | - | ||||||||||||
Obligations of states and political subdivisions
|
245,058 | - | 245,058 | - | ||||||||||||
Residential mortgage-backed securities
|
292,246 | - | 292,246 | - | ||||||||||||
Commercial mortgage-backed securities
|
98,387 | - | 98,387 | - | ||||||||||||
Other debt securities
|
97,867 | - | 97,280 | 587 | ||||||||||||
$ | 898,653 | $ | - | $ | 898,066 | $ | 587 | |||||||||
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted prices in active
|
Significant other
|
Significant
|
||||||||||||||
markets for identical
|
observable
|
unobservable
|
||||||||||||||
Fair value
|
assets
|
inputs
|
inputs
|
|||||||||||||
December 31, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Investment
|
||||||||||||||||
U.S. Government agency securities
|
$ | 7,500 | $ | - | $ | 7,500 | $ | - | ||||||||
Federally insured student loan securities
|
143,770 | - | 143,770 | - | ||||||||||||
Obligations of states and political subdivisions
|
159,093 | - | 159,093 | - | ||||||||||||
Residential mortgage-backed securities
|
277,807 | - | 277,807 | - | ||||||||||||
Commercial mortgage-backed securities
|
97,031 | - | 97,031 | - | ||||||||||||
Other debt securities
|
32,864 | - | 32,267 | 597 | ||||||||||||
$ | 718,065 | $ | - | $ | 717,468 | $ | 597 |
Fair Value Measurements Using
|
||||||||
Significant Unobservable Inputs
|
||||||||
(Level 3)
|
||||||||
Available-for-sale
|
||||||||
securities
|
||||||||
March 31, 2013
|
December 31, 2012
|
|||||||
Beginning balance
|
$ | 597 | $ | 630 | ||||
Transfers into level 3
|
- | - | ||||||
Transfers out of level 3
|
- | - | ||||||
Total gains or losses (realized/unrealized)
|
||||||||
Included in earnings
|
(1 | ) | (2 | ) | ||||
Included in other comprehensive income
|
6 | 20 | ||||||
Purchases, issuances, and settlements
|
||||||||
Purchases
|
- | - | ||||||
Issuances
|
- | - | ||||||
Sales
|
||||||||
Settlements
|
(15 | ) | (51 | ) | ||||
Ending balance
|
$ | 587 | $ | 597 |
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted prices in active
|
Significant other
|
Significant
|
||||||||||||||
markets for identical
|
observable
|
unobservable
|
||||||||||||||
Fair value
|
assets
|
inputs
|
inputs
|
|||||||||||||
Description
|
March 31, 2013
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Impaired loans
|
$ | 34,063 | $ | - | $ | - | $ | 34,063 | ||||||||
Other real estate owned
|
4,543 | - | - | 4,543 | ||||||||||||
$ | 38,606 | $ | - | $ | - | $ | 38,606 | |||||||||
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted prices in active
|
Significant other
|
Significant
|
||||||||||||||
markets for identical
|
observable
|
unobservable
|
||||||||||||||
Fair value
|
assets
|
inputs
|
inputs
|
|||||||||||||
Description
|
December 31, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Impaired loans
|
$ | 25,841 | $ | - | $ | - | $ | 25,841 | ||||||||
Other real estate owned
|
4,241 | - | - | 4,241 | ||||||||||||
$ | 30,082 | $ | - | $ | - | $ | 30,082 |
March 31, 2013
|
||||||||||||||||
Maturity date
|
Notional amount
|
Interest rate paid
|
Interest rate received
|
Fair value
|
||||||||||||
February 26, 2023
|
$ | 11,500 | 2.05 | % | 0.28 | % | $ | (79 | ) | |||||||
March 14, 2023
|
7,800 | 2.11 | % | 0.28 | % | (95 | ) | |||||||||
March 25, 2023
|
2,700 | 2.05 | % | 0.29 | % | (16 | ) | |||||||||
Total
|
$ | 22,000 | $ | (190 | ) |
Three months ended March 31,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
(dollars in thousands)
|
(dollars in thousands)
|
|||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans net of unearned discount **
|
$ | 1,928,786 | $ | 20,192 | 4.19 | % | $ | 1,733,736 | $ | 18,823 | 4.34 | % | ||||||||||||
Leases - bank qualified*
|
14,393 | 200 | 5.56 | % | 10,439 | 189 | 7.24 | % | ||||||||||||||||
Investment securities-taxable
|
682,676 | 3,487 | 2.04 | % | 369,921 | 3,190 | 3.45 | % | ||||||||||||||||
Investment securities-nontaxable*
|
126,221 | 1,116 | 3.54 | % | 96,384 | 1,066 | 4.42 | % | ||||||||||||||||
Interest earning deposits at Federal Reserve Bank
|
1,343,899 | 838 | 0.25 | % | 1,698,456 | 1,053 | 0.25 | % | ||||||||||||||||
Federal funds sold/securities purchased under agreement to resell
|
20,380 | 24 | 0.47 | % | - | - | 0.00 | % | ||||||||||||||||
Net interest earning assets
|
4,116,355 | 25,857 | 2.51 | % | 3,908,936 | 24,321 | 2.49 | % | ||||||||||||||||
Allowance for loan and lease losses
|
(34,839 | ) | (30,638 | ) | ||||||||||||||||||||
Other assets
|
83,902 | 229,504 | ||||||||||||||||||||||
$ | 4,165,418 | $ | 4,107,802 | |||||||||||||||||||||
Liabilities and shareholders' equity:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand and interest checking
|
$ | 3,257,692 | $ | 1,866 | 0.23 | % | $ | 3,292,648 | $ | 1,994 | 0.24 | % | ||||||||||||
Savings and money market
|
506,174 | 578 | 0.46 | % | 457,855 | 631 | 0.55 | % | ||||||||||||||||
Time
|
20,919 | 54 | 1.03 | % | 31,355 | 97 | 1.24 | % | ||||||||||||||||
Total deposits
|
3,784,785 | 2,498 | 0.26 | % | 3,781,858 | 2,722 | 0.29 | % | ||||||||||||||||
Repurchase agreements
|
15,762 | 14 | 0.36 | % | 28,259 | 27 | 0.38 | % | ||||||||||||||||
Subordinated debt
|
13,401 | 200 | 5.97 | % | 13,401 | 217 | 6.48 | % | ||||||||||||||||
Total deposits and interest bearing liabilities
|
3,813,948 | 2,712 | 0.28 | % | 3,823,518 | 2,966 | 0.31 | % | ||||||||||||||||
Other liabilities
|
11,344 | 10,598 | ||||||||||||||||||||||
Total liabilities
|
3,825,292 | 3,834,116 | ||||||||||||||||||||||
Shareholders' equity
|
340,126 | 273,686 | ||||||||||||||||||||||
$ | 4,165,418 | $ | 4,107,802 | |||||||||||||||||||||
Net interest income on tax equivalent basis *
|
$ | 23,145 | $ | 21,355 | ||||||||||||||||||||
Tax equivalent adjustment
|
461 | 439 | ||||||||||||||||||||||
Net interest income
|
$ | 22,684 | $ | 20,916 | ||||||||||||||||||||
Net interest margin *
|
2.25 | % | 2.19 | % | ||||||||||||||||||||
* Full taxable equivalent basis, using a 35% statutory tax rate.
|
||||||||||||||||||||||||
** Includes loans held for sale.
|
Tier 1 capital
|
Tier 1 capital
|
Total capital
|
|||
to average
|
to risk-weighted
|
to risk-weighted
|
|||
assets ratio
|
assets ratio
|
assets ratio
|
|||
As of March 31, 2013
|
|||||
The Company
|
8.26%
|
15.52%
|
16.78%
|
||
The Bancorp Bank
|
6.36%
|
11.98%
|
13.24%
|
||
"Well capitalized" institution (under FDIC regulations)
|
5.00%
|
6.00%
|
10.00%
|
||
As of December 31, 2012
|
|||||
The Company
|
10.00%
|
16.39%
|
17.64%
|
||
The Bancorp Bank
|
7.25%
|
11.91%
|
13.16%
|
||
"Well capitalized" institution (under FDIC regulations)
|
5.00%
|
6.00%
|
10.00%
|
1-90 | 91-364 | 1-3 | 3-5 |
Over 5
|
||||||||||||||||
Days
|
Days
|
Years
|
Years
|
Years
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||
Loans net of deferred loan costs
|
$ | 792,882 | $ | 276,692 | $ | 346,220 | $ | 226,002 | $ | 327,094 | ||||||||||
Investment securities
|
210,965 | 159,031 | 223,999 | 143,075 | 206,647 | |||||||||||||||
Interest earning deposits
|
1,102,217 | - | - | - | - | |||||||||||||||
Securities purchased under agreements to resell | 22,831 | - | - | - | - | |||||||||||||||
Total interest earning assets
|
2,128,895 | 435,723 | 570,219 | 369,077 | 533,741 | |||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||
Demand and interest checking
|
2,016,841 | 145,632 | 145,632 | - | - | |||||||||||||||
Savings and money market
|
123,750 | 247,501 | 123,750 | - | - | |||||||||||||||
Time deposits
|
1,379 | 8,141 | 11,375 | 50 | - | |||||||||||||||
Securities sold under agreements to repurchase
|
16,672 | - | - | - | - | |||||||||||||||
Subordinated debenture
|
3,401 | - | - | 10,000 | - | |||||||||||||||
Total interest bearing liabilities
|
2,162,043 | 401,274 | 280,757 | 10,050 | - | |||||||||||||||
Gap
|
$ | (33,148 | ) | $ | 34,449 | $ | 289,462 | $ | 359,027 | $ | 533,741 | |||||||||
Cumulative gap
|
$ | (33,148 | ) | $ | 1,301 | $ | 290,763 | $ | 649,790 | $ | 1,183,531 | |||||||||
Gap to assets ratio
|
* | * | 7 | % | 9 | % | 13 | % | ||||||||||||
Cumulative gap to assets ratio
|
* | * | 7 | % | 16 | % | 29 | % |
Single issuer
|
Book value
|
Fair value
|
Unrealized gain/(loss)
|
Credit rating
|
|||||||||
Security A
|
$ | 1,891 | $ | 2,000 | $ | 109 |
Not rated
|
||||||
Security B
|
3,232 | 2,860 | (372 | ) |
Not rated
|
||||||||
Security C
|
8,872 | 5,010 | (3,862 | ) |
Not rated
|
||||||||
Class: All of the above are trust preferred securities.
|
Pooled issue
|
Class
|
Book value
|
Fair value
|
Unrealized gain/(loss)
|
Credit rating
|
Excess subordination
|
||||||||||||
Pool A (17 performing issuers)
|
Mezzanine *
|
$ | 674 | $ | 529 | $ | (145 | ) |
Ca
|
*** | ||||||||
Pool B (14 performing issuers)
|
Mezzanine **
|
404 | 442 | 38 |
Ca
|
*** |
* The actual deferrals and defaults as a percentage of the original collateral were 24%. Assumed losses resulting from expected deferrals and defaults as a percentage of remaining collateral is .75% annually with 15% recovery with a two year lag.
|
|||||||||||||||||||
** The actual deferrals and defaults as a percentage of the original collateral were 27%. Assumed losses resulting from expected deferrals and defaults as a percentage of remaining collateral is 1.2% every three years with no recoveries.
|
|||||||||||||||||||
*** There is no excess subordination in these securities.
|
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Commercial
|
$ | 477,690 | $ | 470,109 | ||||
Commercial mortgage *
|
673,916 | 617,069 | ||||||
Construction
|
263,579 | 258,684 | ||||||
Total commercial loans
|
1,415,185 | 1,345,862 | ||||||
Direct lease financing
|
157,508 | 156,697 | ||||||
Residential mortgage
|
94,238 | 97,717 | ||||||
Consumer loans and others
|
296,370 | 296,915 | ||||||
1,963,301 | 1,897,191 | |||||||
Unamortized loan costs
|
5,589 | 5,663 | ||||||
Total loans, net of deferred loan costs
|
$ | 1,968,890 | $ | 1,902,854 | ||||
Supplemental loan data:
|
||||||||
Construction 1-4 family
|
$ | 65,669 | $ | 60,343 | ||||
Commercial construction, acquisition and development
|
197,910 | 198,341 | ||||||
|
$ | 263,579 | $ | 258,684 | ||||
* At Mach 31, 2013, our owner occupied loans amounted to $198.8 million, or 29.5% of commercial mortgages as compared to $172.5 million, or 28.0% at December 31, 2012.
|
30-59 Days
|
60-89 Days
|
Greater than
|
Total
|
Total
|
||||||||||||||||||||||||
March 31, 2013
|
past due
|
past due
|
90 days
|
Non-accrual
|
past due
|
Current
|
loans
|
|||||||||||||||||||||
Commercial
|
$ | 570 | $ | - | $ | - | $ | 16,242 | $ | 16,812 | $ | 460,878 | $ | 477,690 | ||||||||||||||
Commercial mortgage
|
- | 681 | - | 14,059 | 14,740 | 659,176 | 673,916 | |||||||||||||||||||||
Construction
|
1,069 | - | - | 2,745 | 3,814 | 259,765 | 263,579 | |||||||||||||||||||||
Direct lease financing
|
1,338 | 93 | 116 | - | 1,547 | 155,961 | 157,508 | |||||||||||||||||||||
Consumer - other
|
519 | - | - | 927 | 1,446 | 250,647 | 252,093 | |||||||||||||||||||||
Consumer - home equity
|
- | - | - | - | - | 44,277 | 44,277 | |||||||||||||||||||||
Residential mortgage
|
- | - | 1,175 | 90 | 1,265 | 92,973 | 94,238 | |||||||||||||||||||||
Unamortized costs
|
- | - | - | - | - | 5,589 | 5,589 | |||||||||||||||||||||
$ | 3,496 | $ | 774 | $ | 1,291 | $ | 34,063 | $ | 39,624 | $ | 1,929,266 | $ | 1,968,890 | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||
Commercial
|
$ | - | $ | 5,750 | $ | 1,350 | $ | 10,459 | $ | 17,559 | $ | 452,550 | $ | 470,109 | ||||||||||||||
Commercial mortgage
|
686 | 300 | 2,412 | 9,175 | 12,573 | 604,496 | 617,069 | |||||||||||||||||||||
Construction
|
- | - | 667 | 4,538 | 5,205 | 253,479 | 258,684 | |||||||||||||||||||||
Direct lease financing
|
1,313 | 1,168 | 6 | - | 2,487 | 154,210 | 156,697 | |||||||||||||||||||||
Consumer - other
|
330 | 99 | - | 927 | 1,356 | 251,915 | 253,271 | |||||||||||||||||||||
Consumer - home equity
|
2 | 6 | - | - | 8 | 43,636 | 43,644 | |||||||||||||||||||||
Residential mortgage
|
749 | 1,175 | - | 91 | 2,015 | 95,702 | 97,717 | |||||||||||||||||||||
Unamortized costs
|
- | - | - | - | - | 5,663 | 5,663 | |||||||||||||||||||||
$ | 3,080 | $ | 8,498 | $ | 4,435 | $ | 25,190 | $ | 41,203 | $ | 1,861,651 | $ | 1,902,854 |
As of or
|
|||
for the three months ended
|
|||
March 31,
|
|||
2013
|
2012
|
||
Ratio of the allowance for loan losses to total loans
|
1.77%
|
1.80%
|
|
Ratio of the allowance for loan losses to nonperforming loans (1)
|
98.67%
|
126.80%
|
|
Ratio of the nonperforming assets to total assets (1)
|
0.97%
|
0.79%
|
|
Ratio of the net charge-offs to average loans
|
0.19%
|
0.19%
|
|
Ratio of the net charge-offs to average loans annualized
|
0.75%
|
0.75%
|
|
(1) Includes loans 90 days past due still accruing interest
|
March 31,
|
March 31,
|
December 31,
|
||||||||||
2013
|
2012
|
2012
|
||||||||||
Non-accrual loans
|
||||||||||||
Construction
|
$ | 2,745 | $ | 10,375 | $ | 4,538 | ||||||
Commercial mortgage
|
14,059 | 3,609 | 9,175 | |||||||||
Commercial
|
16,242 | 6,018 | 10,459 | |||||||||
Consumer
|
927 | 927 | 927 | |||||||||
Residential
|
90 | - | 91 | |||||||||
Total non-accrual loans
|
34,063 | 20,929 | 25,190 | |||||||||
Loans past due 90 days or more
|
1,291 | 3,914 | 4,435 | |||||||||
Total non-performing loans
|
35,354 | 24,843 | 29,625 | |||||||||
Other real estate owned
|
4,543 | 7,726 | 4,241 | |||||||||
Total non-performing assets
|
$ | 39,897 | $ | 32,569 | $ | 33,866 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Number
|
Pre-modification recorded investment
|
Post-modification recorded investment
|
Number
|
Pre-modification recorded investment
|
Post-modification recorded investment
|
|||||||||||||||||||
Commercial
|
2 | $ | 1,287 | $ | 1,287 | 2 | $ | 2,416 | $ | 2,416 | ||||||||||||||
Commercial mortgage
|
3 | 3,119 | 3,119 | 3 | 3,144 | 3,144 | ||||||||||||||||||
Construction
|
3 | 1,469 | 1,469 | 3 | 1,479 | 1,479 | ||||||||||||||||||
Residential mortgage
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
8 | $ | 5,875 | $ | 5,875 | 8 | $ | 7,039 | $ | 7,039 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Adjusted interest rate
|
Extended maturity
|
Combined rate and maturity
|
Adjusted interest rate
|
Extended maturity
|
Combined rate and maturity
|
|||||||||||||||||||
Commercial
|
$ | - | $ | 1,127 | $ | 160 | $ | - | $ | 2,255 | $ | 161 | ||||||||||||
Commercial mortgage
|
703 | 214 | 2,202 | 714 | 214 | 2,216 | ||||||||||||||||||
Construction
|
- | 1,469 | - | - | 1,479 | - | ||||||||||||||||||
Residential mortgage
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 703 | $ | 2,810 | $ | 2,362 | $ | 714 | $ | 3,948 | $ | 2,377 |
March 31, 2013
|
||||||||
Number
|
Pre-modification recorded investment
|
|||||||
Commercial
|
1 | $ | 161 | |||||
Commercial mortgage
|
- | - | ||||||
Construction
|
- | - | ||||||
Residential mortgage
|
- | - | ||||||
Total
|
1 | $ | 161 |
Recorded
investment
|
Unpaid
principal
balance
|
Related
allowance
|
Average
recorded
investment
|
Interest
income
recognized
|
||||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Without an allowance recorded
|
||||||||||||||||||||
Construction
|
$ | 1,407 | $ | 2,745 | $ | - | $ | 1,532 | $ | - | ||||||||||
Commercial mortgage
|
5,974 | 8,170 | - | 5,278 | - | |||||||||||||||
Commercial
|
5,991 | 7,117 | - | 5,173 | - | |||||||||||||||
Consumer - home equity
|
927 | 927 | - | 927 | - | |||||||||||||||
Residential
|
- | - | - | - | - | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Construction
|
1,338 | 1,473 | 612 | 2,248 | - | |||||||||||||||
Commercial mortgage
|
8,085 | 8,085 | 2,645 | 6,446 | - | |||||||||||||||
Commercial
|
10,251 | 12,479 | 4,470 | 8,258 | - | |||||||||||||||
Consumer - home equity
|
- | - | - | - | - | |||||||||||||||
Residential
|
90 | 90 | 69 | 90 | - | |||||||||||||||
Total
|
||||||||||||||||||||
Construction
|
$ | 2,745 | $ | 4,218 | $ | 612 | $ | 3,780 | $ | - | ||||||||||
Commercial mortgage
|
$ | 14,059 | $ | 16,255 | $ | 2,645 | $ | 11,724 | $ | - | ||||||||||
Commercial
|
$ | 16,242 | $ | 19,596 | $ | 4,470 | $ | 13,431 | $ | - | ||||||||||
Consumer - home equity
|
$ | 927 | $ | 927 | $ | - | $ | 927 | $ | - | ||||||||||
Residential
|
$ | 90 | $ | 90 | $ | 69 | $ | 90 | $ | - | ||||||||||
December 31, 2012
|
||||||||||||||||||||
Without an allowance recorded
|
||||||||||||||||||||
Construction
|
$ | 1,656 | $ | 5,054 | $ | - | $ | 1,060 | $ | - | ||||||||||
Commercial mortgage
|
4,583 | 6,730 | - | 2,563 | - | |||||||||||||||
Commercial
|
4,356 | 5,481 | - | 2,485 | - | |||||||||||||||
Consumer - home equity
|
927 | 927 | - | 927 | - | |||||||||||||||
Residential
|
- | - | - | 253 | - | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Construction
|
3,158 | 4,147 | 1,273 | 6,650 | - | |||||||||||||||
Commercial mortgage
|
4,806 | 4,806 | 1,706 | 4,233 | - | |||||||||||||||
Commercial
|
6,264 | 7,067 | 4,069 | 5,571 | - | |||||||||||||||
Consumer - home equity
|
- | - | - | 65 | - | |||||||||||||||
Residential
|
91 | 91 | 69 | 56 | - | |||||||||||||||
Total
|
||||||||||||||||||||
Construction
|
$ | 4,814 | $ | 9,201 | $ | 1,273 | $ | 7,710 | $ | - | ||||||||||
Commercial mortgage
|
$ | 9,389 | $ | 11,536 | $ | 1,706 | $ | 6,796 | $ | - | ||||||||||
Commercial
|
$ | 10,620 | $ | 12,548 | $ | 4,069 | $ | 8,056 | $ | - | ||||||||||
Consumer - home equity
|
$ | 927 | $ | 927 | $ | - | $ | 992 | $ | - | ||||||||||
Residential
|
$ | 91 | $ | 91 | $ | 69 | $ | 309 | $ | - |
Commercial
|
Residential
|
|||||||||||||||||||||||||||||||
Commercial
|
Construction
|
Mortgage
|
mortgage
|
|||||||||||||||||||||||||||||
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
|||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 315,766 | $ | 335,563 | $ | 245,914 | $ | 247,214 | $ | 480,489 | $ | 489,615 | $ | 28,039 | $ | 28,495 | ||||||||||||||||
Special Mention
|
1,031 | 6,788 | - | - | 21,450 | 23,200 | - | 1,175 | ||||||||||||||||||||||||
Substandard
|
17,095 | 12,252 | 3,480 | 5,205 | 14,811 | 9,704 | 1,175 | - | ||||||||||||||||||||||||
Doubtful
|
- | - | 334 | - | - | - | 90 | 91 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Unrated subject to review *
|
33,666 | 17,614 | 10,511 | 2,301 | 80,472 | 18,286 | 1,891 | 236 | ||||||||||||||||||||||||
Unrated not subject to review *
|
110,132 | 97,892 | 3,340 | 3,964 | 76,694 | 76,264 | 63,043 | 67,720 | ||||||||||||||||||||||||
Total
|
$ | 477,690 | $ | 470,109 | $ | 263,579 | $ | 258,684 | $ | 673,916 | $ | 617,069 | $ | 94,238 | $ | 97,717 | ||||||||||||||||
Direct lease
|
||||||||||||||||||||||||||||||||
Consumer
|
financing
|
Unamortized costs
|
Total
|
|||||||||||||||||||||||||||||
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
3/31/2013
|
12/31/2012
|
|||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 91,510 | $ | 89,128 | $ | 57,813 | $ | 52,241 | $ | - | $ | - | $ | 1,219,531 | $ | 1,242,256 | ||||||||||||||||
Special Mention
|
- | 99 | - | - | - | - | 22,481 | 31,262 | ||||||||||||||||||||||||
Substandard
|
3,724 | 3,626 | 42 | 69 | - | - | 40,327 | 30,856 | ||||||||||||||||||||||||
Doubtful
|
- | - | - | - | - | - | 424 | 91 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Unrated subject to review *
|
2,476 | 4,593 | - | 3,337 | - | - | 129,016 | 46,367 | ||||||||||||||||||||||||
Unrated not subject to review *
|
198,660 | 199,469 | 99,653 | 101,050 | 5,589 | 5,663 | 557,111 | 552,022 | ||||||||||||||||||||||||
Total
|
$ | 296,370 | $ | 296,915 | $ | 157,508 | $ | 156,697 | $ | 5,589 | $ | 5,663 | $ | 1,968,890 | $ | 1,902,854 |
For the three months ended
|
For the year ended
|
|||||||||||||||
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||
balance
|
rate
|
balance
|
Rate
|
|||||||||||||
(unaudited)
|
||||||||||||||||
Demand and interest checking
|
$ | 3,257,692 | 0.23 | % | $ | 2,666,493 | 0.29 | % | ||||||||
Savings and money market
|
506,174 | 0.46 | % | 455,860 | 0.53 | % | ||||||||||
Time
|
20,919 | 1.03 | % | 26,624 | 1.34 | % | ||||||||||
Total deposits
|
$ | 3,784,785 | 0.26 | % | $ | 3,148,977 | 0.33 | % |
THE BANCORP INC.
|
|
(Registrant)
|
|
May 10, 2013
|
/s/ Betsy Z. Cohen
|
Date
|
Betsy Z. Cohen
|
Chief Executive Officer
|
|
May 10, 2013
|
/s/ Paul Frenkiel
|
Date
|
Executive Vice President of Strategy,
|
Chief Financial Officer and Secretary
|
Exhibit No.
|
Description
|
|
3.1
|
Certificate of Incorporation (1)
|
|
3.2
|
Bylaws (1)
|
|
10.1
|
||
10.2
|
||
31.1
|
||
31.2
|
||
32.1
|
||
32.2
|
|
|
101.INS
|
XBRL Instance Document (2)
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document(2)
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document(2)
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document(2)
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document(2)
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document(2)
|
(1)
|
Filed previously as an exhibit to our Registration Statement on Form S-4, as amended, registration number 333-117385, and by this reference incorporated herein.
|
|
Total number of shares of Company common stock, $0.01 par value per share, that may be acquired pursuant to this Option: _________________
|
|
(subject to adjustment pursuant to Section 9 below).
|
·
|
This is a Non-Qualified Option.
|
|
7.1
|
Delivery of Notice of Exercise of Option. This Option will be exercised in whole or in part by the Participant’s delivery to the Company of written notice (the “Notice of Exercise of Option” attached hereto as Exhibit A) setting forth the number of shares with respect to which this Option is to be exercised, together with payment by cash or other means acceptable to the Committee, including:
|
|
by tendering shares of Common Stock valued at Fair Market Value (as defined in Section 7.2 below) as of the day of exercise;
|
|
by irrevocably authorizing a third party, acceptable to the Committee, to sell shares of Common Stock (or a sufficient portion of the shares) acquired upon exercise of the Option and to remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise;
|
|
by a net settlement of the Option, using a portion of the shares obtained on exercise in payment of the exercise price of the Option;
|
|
by cash, certified or cashier’s check;
|
|
7.2
|
“Fair Market Value” shall have the meaning set forth in Section 2(m) of the Plan.
|
|
This Option, including the number of shares subject to the Option and the exercise price, will be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of Section 5(d) of the Plan.
|
(i)
|
Death. In the event of the Participant’s Termination of Service by reason of the Participant’s death, all non-vested Options will vest over a one year period beginning on the date of death. This Option may thereafter be exercised by the Participant’s legal representative or beneficiaries for a period of one (1) year from the date of death, subject to termination on the expiration date of this Option, if earlier.
|
(iii)
|
Retirement. In the event of the Participant’s Termination of Service by reason of the Participant’s Retirement, all non-vested Options will vest over a one year period beginning on the date of the Termination of Service. This Option may thereafter be exercised for a period of one (1) year from the date of such Termination of Service by reason of Retirement, subject to termination on the Option’s expiration date, if earlier. Notwithstanding the foregoing, an Employee who continues to serve as a Director or as a consultant to the Company or the Bank following Termination of Service shall continue to vest in his or her Awards and shall not be deemed to have terminated Service due to Retirement until Service in all such capacities has terminated.
|
(iv)
|
Termination for Cause. If the Participant’s Termination of Service is for Cause, all Options that have not been exercised will expire and be forfeited.
|
(v)
|
A Change in Control. In the event of a Change in Control, if you involuntarily forfeit your current position or if you will be employed at a significantly lower salary, all Options will become fully exercisable, subject to the expiration provisions otherwise applicable to the Option. In addition, all Options may become fully exercisable pursuant to Sections 18 (a) and 18(b) of the Plan. This Option may thereafter be exercised for a period of one (1) year. A “Change in Control” will be deemed to have occurred as provided in Section 2(b) of the Plan.
|
(vi)
|
Other Termination. If the Participant’s Termination of Service is for any reason other than death, Disability, Retirement, for Cause or following a Change of Control, this Option may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of three (3) months following termination, subject to termination on the Option’s expiration date, if earlier.
|
|
11.1
|
No Option will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.
|
|
11.2
|
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.
|
|
11.3
|
In the discretion of the Committee, a non-qualified Option granted under the Plan may be transferable by the Participant; provided, however, that such transfers are made pursuant to the terms of Section 17 of the Plan.
|
|
11.4
|
This Option will be governed by and construed in accordance with the laws of the State of Delaware.
|
|
11.5
|
The granting of this Option does not confer upon the Participant any right to be retained in the service of the Company or any subsidiary.
|
THE BANCORP, INC.
|
|
By: | |
Its:
|
PARTICIPANT
|
|
___
|
Cash or personal, certified or cashier’s check in the sum of $_______, in full/partial payment of the purchase price.
|
|
___
|
Stock of the Company with a fair market value of $______ in full/partial payment of the purchase price.*
|
|
___
|
My check in the sum of $_______ and stock of the Company with a fair market value of $______, in full/partial payment of the purchase price.*
|
|
___
|
Please sell ______ shares from my Option shares through a broker in full/partial payment of the purchase price.
|
Date: ____________, _____. | |
Participant’s signature |
|
(subject to adjustment pursuant to Section 8 below).
|
|
The Stock Awards granted under the Plan shall vest in four (4) equal annual installments, with the first installment becoming exercisable on the first anniversary of the date of grant, or _________, 2014, and succeeding installments on each anniversary thereafter, through _________, 2017. To the extent the shares of Stock awarded to you are not equally divisible by “4,” any excess shares of Stock shall vest on __________, 2014.
|
6.
|
No Voting or Dividends.
|
|
The Participant will not have the right to vote the Stock Awards awarded hereunder or receive cash dividends on such awards. Voting and Dividend rights will apply when such awards become vested.
|
|
7.
|
Delivery of Shares.
|
|
This Stock Award, including the number of shares subject to the Stock Award, will be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of, Section 5(d) of the Plan.
|
(vii)
|
Death. In the event of the Participant’s Termination of Service by reason of the Participant’s death, all non-vested Stock Awards will vest over a one year period beginning on the date of death.
|
(viii)
|
Disability. In the event of the Participant’s Termination of Service by reason of the Participant’s Disability, all non-vested Stock Awards will vest over a one year period beginning on the date of the Termination of Service.
|
(ix)
|
Retirement. In the event of the Participant’s Termination of Service by reason of the Participant’s Retirement, all non-vested Stock Awards will vest over a one year period beginning on the date of the Termination of Service. Notwithstanding the foregoing, an Employee who continues to serve as a Director or as a consultant to the Company or the Bank following Termination of Service shall continue to vest in his or her Awards and shall not be deemed to have terminated Service due to Retirement until Service in all such capacities has terminated.
|
(x)
|
Termination for Cause. If the Participant’s Termination of Service is for Cause, all Stock Awards that have not vested will expire and be forfeited.
|
(xi)
|
A Change in Control. In the event of a Change in Control, if you involuntarily forfeit your current position or if you will be employed at a significantly lower salary, all Stock Awards will become fully exercisable. In addition, all Stock Awards may become fully exercisable pursuant to Sections 18 (a) and 18(b) of the Plan. A “Change in Control” will be deemed to have occurred as provided in Section 2(b) of the Plan.
|
(xii)
|
Other Termination. If the Participant’s Termination of Service is for any reason other than death, Disability, Retirement, for Cause or following a Change of Control, all non-vested Stock Awards will expire and be forfeited on the date of the Termination of Service.
|
|
10.1
|
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.
|
|
10.2
|
Stock Awards are not transferable prior to the time such Awards vest in the Participant.
|
|
10.3
|
This Stock Award and this Agreement will be governed by and construed in accordance with the laws of the State of Delaware.
|
|
10.4
|
This Stock Award and this Agreement are subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be obligated to issue any shares of stock hereunder if the issuance of such shares would constitute a violation of any such law, regulation or order or any provision thereof.
|
THE BANCORP, INC.
|
|
By:
|
|
Its:
|
PARTICIPANT
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2013 of The Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principals;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 10, 2013
|
/s/ Betsy Z. Cohen
|
Name: Betsy Z. Cohen
|
|
Title: Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2013 of The Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principals;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 10, 2013
|
/s/ Paul Frenkiel
|
Name: Paul Frenkiel
|
|
Executive Vice President of Strategy,
|
|
Chief Financial Officer and Secretary
|
/s/ Betsy Z. Cohen
|
|
Betsy Z. Cohen
|
|
Chief Executive Officer
|
|
May 10, 2013
|
/s/ Paul Frenkiel
|
|
Executive Vice President of Strategy,
|
|
Chief Financial Officer and Secretary
|
|
May 10, 2013
|
Fair Value Measurements, Unobservable Input Reconciliation (Details) (Available-for-sale securities [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Available-for-sale securities [Member]
|
||
Changes in Company's Level 3 assets [Roll Forward] | ||
Beginning balance | $ 597 | $ 630 |
Transfers into level 3 | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Total gains or losses (realized/unrealized) Included in earnings | (1) | (2) |
Included in other comprehensive income | 6 | 20 |
Purchases, issuances, and settlements [Abstract] | ||
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | ||
Settlements | (15) | (51) |
Ending balance | $ 587 | $ 597 |
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