0000950159-14-000209.txt : 20140424 0000950159-14-000209.hdr.sgml : 20140424 20140423173437 ACCESSION NUMBER: 0000950159-14-000209 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140423 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140424 DATE AS OF CHANGE: 20140423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Bancorp, Inc. CENTRAL INDEX KEY: 0001295401 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 233016517 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51018 FILM NUMBER: 14779607 BUSINESS ADDRESS: BUSINESS PHONE: 302-385-5000 MAIL ADDRESS: STREET 1: 409 SILVERSIDE ROAD CITY: WILMINGTON STATE: DE ZIP: 19809 8-K 1 bancorp8k.htm THE BANCORP, INC. FORM 8-K bancorp8k.htm
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  4/23/2014
 
The Bancorp, Inc.
(Exact name of registrant as specified in its charter)
 
Commission File Number:  000-51018
 
Delaware
  
23-3016517
(State or other jurisdiction of
  
(IRS Employer
incorporation)
  
Identification No.)
 
409 Silverside Road
Wilmington, DE 19809
(Address of principal executive offices, including zip code)
 
302-385-5000
(Registrant’s telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
 
 
 
 
Item 2.02.    Results of Operations and Financial Condition
 
On April 23, 2014, The Bancorp, Inc. (the "Company") issued a press release regarding its earnings for the three months ended March 31, 2014. A copy of this press release is furnished with this report as exhibit 99.1. The information in this Current Report, including the exhibit hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
 
 
Item 9.01.    Financial Statements and Exhibits
 
(d) Exhibits
 
The exhibit furnished as part of this Current Report on Form 8-K is identified in the Exhibit Index immediately following the signature page of this report. Such Exhibit Index is incorporated herein by reference.
 
 
 
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
           
The Bancorp, Inc.
                 
                 
Date: April 23, 2014
      
By:
  
/s/Paul Frenkiel
               
Paul Frenkiel
               
Chief Financial Officer and Secretary
                 
                 
 
 
 
 
 
 
 
 
 
EXHIBIT INDEX
 
Exhibit No.
  
Description
 
EX-99.1
  

 
 
 EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
 
 
The Bancorp, Inc. Reports First Quarter 2014 Financial Results

Wilmington, DE – April 23, 2014 – The Bancorp, Inc. ("Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the first quarter 2014.

Net income for the first quarter of 2014 decreased to $298,000 compared to $7.4 million in first quarter 2013, or fully diluted earnings per share of $.01 in 2014 compared to $.20 in the comparable prior year period.

Financial Highlights

 
·
20% increase in total quarterly revenues to $53.6 million compared to $44.5 million in first quarter 2013.

 
·
26% increase in quarterly non-interest income, to $23.9 million compared to $18.9 million in first quarter 2014, excluding security gains and other than temporary impairment charges.

 
·
13% increase in prepaid card fees to $13.5 million compared to $12.0 million in first quarter 2013.

 
·
17% increase in quarterly net interest income to $26.6 million compared to $22.7 million in first quarter 2013.

Betsy Z. Cohen, Bancorp’s Chief Executive Officer, said, “In the  first quarter, we continued to post significant increases in non-interest income which increased 26% and net interest income which increased 17%.  The quarter was significantly impacted by an additional loan loss provision of $11.8 million principally related to newly identified adversely classified loans.  Our leadership position in the prepaid card industry is a primary vector of growth and related fee income increased 13% to $13.5 million for the quarter, compared to first quarter 2013.  Average deposits for the first quarter grew 20% between those periods and reflected growth in all major deposit categories.  At March 31, 2014 our portfolio of loans and securities had grown to $3.8 billion, an increase of $833.9 million, or 28% over March 31, 2013. Outstanding loans on an annualized basis increased 17% over the linked quarter.  Asset growth within our targeted lending segments – Small Business Administration (SBA), security backed lines of credit and small fleet leasing – contributed disproportionately. Our targeted lines of business grew over the prior year as follows: SBA loans by 39%, security backed lines of credit by 34% and small fleet leasing by 15%.  Book value per share increased 5%, from $9.27 at March 31, 2013 to $9.71 at March 31, 2014.”

Financial Results

Bancorp reported net income available to common shareholders for the three months ended March 31, 2014 of $298,000, or diluted earnings per share of $0.01, based on 38,645,648 weighted average diluted shares outstanding, compared to net income available to common shareholders of $7.4 million, or diluted earnings per share of $0.20, based on 37,772,122 weighted average diluted shares outstanding, for the three months ended March 31, 2013.



 
 
1
 
 
 
Conference Call Webcast

You may access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 8:30 AM EDT Thursday, April 24, 2014 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 800.688.0836, access code 67285667.  You may listen to the replay of the webcast following the live call on Bancorp's investor relations website or telephonically until Thursday, May 1, 2014 by dialing 888.286.8010, access code 94498254.

About Bancorp

The Bancorp, Inc. is a financial holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services both directly and through private-label affinity programs.  The Bancorp Bank’s regional community bank operations serve the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp, Inc.’s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. These statements may be identified by the use of forward-looking terminology, including but not limited to the words “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “estimate,” “continue,” or similar words.  For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp, Inc.’s filings with the SEC, including the “Risk Factors” sections of The Bancorp Inc.’s filings. These risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. The forward-looking statements speak only as of the date of this presentation. The Bancorp, Inc. does not undertake to publicly revise or update forward-looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law.

The Bancorp, Inc. Contact
Andres Viroslav
215-861-7990
aviroslav@thebancorp.com




 
2
 

 
The Bancorp, Inc.
  
Financial highlights
  
(unaudited)
  
   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
  
   
2014
    
2013
    
2013
  
   
(dollars in thousands except per share data)
  
Condensed income statement
                  
Net interest income
   $ 26,568     $ 22,684     $ 95,782  
Provision for loan and lease losses
     17,300       5,500       29,500  
Non-interest income
                        
Service fees on deposit accounts
     1,210       1,060       4,977  
Card payment and ACH processing fees
     1,303       867       4,046  
Prepaid card fees
     13,468       11,974       45,339  
Gain on sale of loans
     5,484       2,178       17,225  
Gain on sales of investment securities
     241       267       1,889  
Other than temporary impairment of investment securities
     -       (20 )     (20 )
Leasing income
     381       587       2,560  
Debit card income
     426       196       892  
Affinity fees
     534       856       2,986  
Other non-interest income
     1,108       1,167       3,536  
Total non-interest income
     24,155       19,132       83,430  
Non-interest expense
                        
Losses and write downs on other real estate owned
     62       251       1,461  
Other non-interest expense
     32,895       24,228       109,316  
Total non-interest expense
     32,957       24,479       110,777  
Net income before income tax expense
     466       11,837       38,935  
Income tax expense
     168       4,431       13,825  
Net income available to common shareholders
   $ 298     $ 7,406     $ 25,110  
                         
Basic earnings per share
   $ 0.01     $ 0.20     $ 0.67  
                         
Diluted earnings per share
   $ 0.01     $ 0.20     $ 0.66  
Weighted average shares - basic
     37,680,914       37,291,820       37,425,197  
Weighted average shares - diluted
     38,645,648       37,772,122       38,121,084  
 
 
 
 
 
3
 

 
Balance sheet
  
March 31,
    
December 31,
    
September 30,
    
March 31,
  
   
2014
    
2013
    
2013
    
2013
  
   
(dollars in thousands)
  
Assets:
                        
Cash and cash equivalents
                        
Cash and due from banks
   $ 15,298     $ 33,883     $ 32,026     $ 14,108  
Interest earning deposits at Federal Reserve Bank
     796,385       1,196,515       657,618       1,102,217  
Securities sold under agreements to resell
     24,926       7,544       40,811       22,831  
     Total cash and cash equivalents
     836,609       1,237,942       730,455       1,139,156  
                                 
Investment securities, available-for-sale, at fair value
     1,411,708       1,253,117       1,083,154       898,653  
Investment securities, held-to-maturity
     97,149       97,205       97,459       45,064  
Loans held for sale, at fair value
     222,024       69,904       25,557       28,402  
Loans, net of deferred fees and costs
     2,044,004       1,958,445       1,991,455       1,968,890  
Allowance for loan and lease losses
     (46,409 )     (38,182 )     (39,151 )     (34,883 )
Loans, net
     1,997,595       1,920,263       1,952,304       1,934,007  
Federal Home Loan Bank & Atlantic Central Bankers Bank stock
     3,209       3,209       3,209       3,094  
Premises and equipment, net
     15,692       15,659       14,252       10,965  
Accrued interest receivable
     14,715       13,131       12,556       11,521  
Intangible assets, net
     7,407       7,612       6,253       6,753  
Other real estate owned
     27,763       26,295       20,111       4,543  
Deferred tax asset, net
     27,451       30,415       26,434       23,055  
Other assets
     38,301       31,313       28,538       26,882  
     Total assets
   $ 4,699,623     $ 4,706,065     $ 4,000,282     $ 4,132,095  
                                 
Liabilities:
                                
Deposits
                                
Demand and interest checking
   $ 3,842,569     $ 3,722,602     $ 3,050,167     $ 3,197,039  
Savings and money market
     393,329       536,162       504,447       495,001  
Time deposits
     9,115       9,773       9,920       12,602  
Time deposits, $100,000 and over
     2,195       4,452       4,683       8,343  
     Total deposits
     4,247,208       4,272,989       3,569,217       3,712,985  
                                 
Securities sold under agreements to repurchase
     16,491       21,221       22,057       16,672  
Subordinated debenture
     13,401       13,401       13,401       13,401  
Other liabilities
     56,353       38,850       42,274       42,961  
     Total liabilities
   $ 4,333,453     $ 4,346,461     $ 3,646,949     $ 3,786,019  
                                 
Shareholders' equity:
                                
Common stock - authorized, 50,000,000 shares of $1.00 par value; 37,804,902 and 37,433,594 shares issued at March 31, 2014 and 2013, respectively
     37,805       37,721       37,721       37,434  
Treasury stock (100,000 shares)
     (866 )     (866 )     (866 )     (866 )
Additional paid-in capital
     295,824       294,576       292,715       285,009  
Retained earnings (accumulated deficit)
     27,424       27,615       20,291       14,753  
Accumulated other comprehensive income
     5,983       558       3,472       9,746  
Total shareholders' equity
     366,170       359,604       353,333       346,076  
                                 
     Total liabilities and shareholders' equity
   $ 4,699,623     $ 4,706,065     $ 4,000,282     $ 4,132,095  
 
 
 
 
 
4
 

 
Average balance sheet and net interest income
  
Three months ended March 31, 2014
    
Three months ended March 31, 2013
  
(dollars in thousands)
  
Average
          
Average
    
Average
          
Average
  
Assets:
  
Balance
    
Interest
    
Rate
    
Balance
    
Interest
    
Rate
  
Interest-earning assets:
                                    
Loans net of unearned fees and costs **
   $ 2,142,143     $ 21,220       3.96 %   $ 1,928,786     $ 20,192       4.19 %
Leases - bank qualified*
     18,288       247       5.40 %     14,393       200       5.56 %
Investment securities-taxable
     1,020,135       5,137       2.01 %     682,676       3,487       2.04 %
Investment securities-nontaxable*
     391,486       3,206       3.28 %     126,221       1,116       3.54 %
Interest earning deposits at Federal Reserve Bank
     1,235,319       764       0.25 %     1,343,899       838       0.25 %
Federal funds sold/securities purchased under agreement to resell
     30,545       106       1.39 %     20,380       24       0.47 %
Net interest earning assets
     4,837,916       30,680       2.54 %     4,116,355       25,857       2.51 %
                                                 
Allowance for loan and lease losses
     (38,419 )                     (34,839 )                
Other assets
     155,646                       83,902                  
    $ 4,955,143                     $ 4,165,418                  
                                                 
Liabilities and Shareholders' Equity:
                                                
Deposits:
                                                
Demand and interest checking
   $ 4,015,547     $ 2,237       0.22 %   $ 3,257,692     $ 1,866       0.23 %
Savings and money market
     498,185       504       0.40 %     506,174       578       0.46 %
Time
     13,342       35       1.05 %     20,919       54       1.03 %
Total deposits
     4,527,074       2,776       0.25 %     3,784,785       2,498       0.26 %
                                                 
Short-term borrowings
     22       -       0.00 %     -       -       0.00 %
Repurchase agreements
     16,752       12       0.29 %     15,762       14       0.36 %
Subordinated debt
     13,401       115       3.43 %     13,401       200       5.97 %
Total deposits and interest bearing liabilities
     4,557,249       2,903       0.25 %     3,813,948       2,712       0.28 %
                                                 
Other liabilities
     32,950                       11,344                  
Total liabilities
     4,590,199                       3,825,292                  
                                                 
Shareholders' equity
     364,944                       340,126                  
    $ 4,955,143                     $ 4,165,418                  
Net interest income on tax equivalent basis*
           $ 27,777                     $ 23,145          
                                                 
Tax equivalent adjustment
             1,209                       461          
                                                 
Net interest income
           $ 26,568                     $ 22,684          
Net interest margin *
                     2.30 %                     2.25 %
                                                 
* Full taxable equivalent basis using a 35% statutory tax rate.
                                                
** Includes loans held for sale.
                                                




 
5
 
 

Allowance for loan and lease losses:
  
Three months ended
    
Year ended
        
   
March 31,
    
March 31,
    
December 31,
        
   
2014
    
2013
    
2013
        
   
(dollars in thousands)
              
                         
Balance in the allowance for loan and lease losses at beginning of period
   $ 38,182     $ 33,040     $ 33,040        
                               
Loans charged-off:
                              
Commercial
     4,247       2,073       14,771        
Construction
     4,633       1,608       10,295        
Lease financing
     -       -       30        
Residential mortgage
     108       -       54        
Consumer
     128       54       488        
Total
     9,116       3,735       25,638        
                               
Recoveries:
                              
Commercial
     25       35       180        
Construction
     4       -       1,019        
Lease financing
     -       -       8        
Residential mortgage
     -       -       -        
Consumer
     14       43       73        
Total
     43       78       1,280        
Net charge-offs
     9,073       3,657       24,358        
Provision charged to operations
     17,300       5,500       29,500        
                               
Balance in allowance for loan and lease losses at end of period
   $ 46,409     $ 34,883     $ 38,182        
Net charge-offs/average loans
     0.42 %     0.19 %     1.21 %      
Net charge-offs/average loans (annualized)
     1.68 %     0.75 %     1.21 %      
Net charge-offs/average assets
     0.18 %     0.09 %     0.59 %      
                               
Loan portfolio:
  
March 31,
    
December 31,
    
September 30,
    
March 31,
  
      2014       2013       2013       2013  
   
(dollars in thousands)
  
                                 
Commercial
   $ 489,574     $ 450,113     $ 470,072     $ 477,690  
Commercial mortgage (1)
     610,990       625,810       654,456       673,916  
Construction
     283,928       258,889       255,272       263,579  
Total commercial loans
     1,384,492       1,334,812       1,379,800       1,415,185  
Direct lease financing
     181,007       175,610       177,797       157,508  
Residential mortgage
     95,397       94,850       94,564       94,238  
Consumer and other loans
     375,818       346,334       332,427       296,370  
      2,036,714       1,951,606       1,984,588       1,963,301  
Unamortized loan fees and costs
     7,290       6,839       6,867       5,589  
Total loans, net of deferred loan fees and costs
   $ 2,044,004     $ 1,958,445     $ 1,991,455     $ 1,968,890  
                                 
Supplemental loan data:
                                
Construction 1-4 family
   $ 47,521     $ 48,394     $ 60,989     $ 65,669  
Commercial construction, acquisition and development
     236,407       210,495       194,283       197,910  
    $ 283,928     $ 258,889     $ 255,272     $ 263,579  
(1) At March 31, 2014 our owner-occupied loans amounted to $198 million, or 32.4% of commercial mortgages.
                  
 
 
 

 
 
6
 

 
Capital Ratios
  
Tier 1 capital
    
Tier 1 capital
    
Total capital
  
   
to average assets
    
to risk-weighted assets
    
to risk-weighted assets
  
As of March 31, 2014
                  
Bancorp
     7.39 %     13.01 %     14.26 %
The Bancorp Bank
     6.19 %     10.87 %     12.12 %
"Well capitalized" institution (under FDIC regulations)
     5.00 %     6.00 %     10.00 %
                         
As of December 31, 2013
                        
Bancorp
     8.58 %     14.57 %     15.83 %
The Bancorp Bank
     6.72 %     11.40 %     12.66 %
"Well capitalized" institution (under FDIC regulations)
     5.00 %     6.00 %     10.00 %

   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
    
December 31,
  
   
2014
    
2013
    
2013
    
2013
  
Selected operating ratios:
                        
Return on average assets (annualized)
     0.02 %     0.72 %     0.68 %     0.61 %
Return on average equity (annualized)
     0.33 %     8.83 %     8.17 %     7.22 %
Net interest margin
     2.30 %     2.25 %     2.54 %     2.44 %
Efficiency ratio (1)
     65.28 %     58.92 %     63.93 %     62.47 %
Book value per share
   $ 9.71     $ 9.27     $ 9.56     $ 9.56  
                                 
   
March 31,
    
December 31,
    
September 30,
    
March 31,
  
      2014       2013       2013       2013  
Asset quality ratios:
                                
Nonperforming loans to total loans (2)
     2.20 %     2.08 %     2.46 %     1.80 %
Nonperforming assets to total assets (2)
     1.55 %     1.42 %     1.73 %     0.97 %
Allowance for loan and lease losses to total loans
     2.27 %     1.95 %     1.97 %     1.77 %
                                 
Nonaccrual loans
   $ 44,701     $ 40,551     $ 48,750     $ 34,063  
Other real estate owned
     27,763       26,295       20,111       4,543  
     Total nonperforming assets
   $ 72,464     $ 66,846     $ 68,861     $ 38,606  
                                 
Loans 90 days past due still accruing interest
   $ 189     $ 110     $ 204     $ 1,291  
                                 
Gross dollar volume (GDV):
                                
Prepaid card GDV
   $ 11,791,386     $ 7,720,554     $ 7,178,532     $ 9,138,880  
                                 
                                 
(1) As a supplement to GAAP, Bancorp has provided this non-GAAP performance result. The Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance. Management utilizes the efficiency ratio to measure overhead as a percentage of revenue. Other companies may calculate the efficiency ratio differently. Although this non-GAAP financial measure is intended to enhance investors’ understanding of Bancorp’s business and performance, it should not be considered, and is not intended to be, a substitute for net income calculated pursuant to GAAP.
  
                                 
                                 
   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
    
December 31,
  
      2014       2013       2013       2013  
Reconciliation of the efficiency ratio, a non-GAAP measure:
                          
Non-interest expense (a)
   $ 32,957     $ 24,479     $ 29,814     $ 110,777  
                                 
Net interest income
     26,568       22,684       25,402       95,782  
Non-interest income
     24,155       19,132       22,334       83,430  
Less: Gain on sale of securities
     (241 )     (267 )     (1,104 )     (1,889 )
Adjusted net interest and non-interest income (b)
   $ 50,482     $ 41,549     $ 46,632     $ 177,323  
                                 
(a) divided by (b)
     65.28 %     58.92 %     63.93 %     62.47 %
                                 
(2) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.
  
 
 
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