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)
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Identification No.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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The Bancorp, Inc.
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Date: April 23, 2014
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By:
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/s/Paul Frenkiel
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Paul Frenkiel
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Chief Financial Officer and Secretary
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Exhibit No.
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Description
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EX-99.1
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·
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20% increase in total quarterly revenues to $53.6 million compared to $44.5 million in first quarter 2013.
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·
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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.
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·
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13% increase in prepaid card fees to $13.5 million compared to $12.0 million in first quarter 2013.
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·
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17% increase in quarterly net interest income to $26.6 million compared to $22.7 million in first quarter 2013.
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The Bancorp, Inc.
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||||||||||||
Financial highlights
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||||||||||||
(unaudited)
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Three months ended
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Year ended
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|||||||||||
March 31,
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December 31,
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|||||||||||
2014
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2013
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2013
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||||||||||
(dollars in thousands except per share data)
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||||||||||||
Condensed income statement
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||||||||||||
Net interest income
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$ | 26,568 | $ | 22,684 | $ | 95,782 | ||||||
Provision for loan and lease losses
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17,300 | 5,500 | 29,500 | |||||||||
Non-interest income
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||||||||||||
Service fees on deposit accounts
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1,210 | 1,060 | 4,977 | |||||||||
Card payment and ACH processing fees
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1,303 | 867 | 4,046 | |||||||||
Prepaid card fees
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13,468 | 11,974 | 45,339 | |||||||||
Gain on sale of loans
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5,484 | 2,178 | 17,225 | |||||||||
Gain on sales of investment securities
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241 | 267 | 1,889 | |||||||||
Other than temporary impairment of investment securities
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- | (20 | ) | (20 | ) | |||||||
Leasing income
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381 | 587 | 2,560 | |||||||||
Debit card income
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426 | 196 | 892 | |||||||||
Affinity fees
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534 | 856 | 2,986 | |||||||||
Other non-interest income
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1,108 | 1,167 | 3,536 | |||||||||
Total non-interest income
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24,155 | 19,132 | 83,430 | |||||||||
Non-interest expense
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||||||||||||
Losses and write downs on other real estate owned
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62 | 251 | 1,461 | |||||||||
Other non-interest expense
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32,895 | 24,228 | 109,316 | |||||||||
Total non-interest expense
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32,957 | 24,479 | 110,777 | |||||||||
Net income before income tax expense
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466 | 11,837 | 38,935 | |||||||||
Income tax expense
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168 | 4,431 | 13,825 | |||||||||
Net income available to common shareholders
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$ | 298 | $ | 7,406 | $ | 25,110 | ||||||
Basic earnings per share
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$ | 0.01 | $ | 0.20 | $ | 0.67 | ||||||
Diluted earnings per share
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$ | 0.01 | $ | 0.20 | $ | 0.66 | ||||||
Weighted average shares - basic
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37,680,914 | 37,291,820 | 37,425,197 | |||||||||
Weighted average shares - diluted
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38,645,648 | 37,772,122 | 38,121,084 |
Balance sheet
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March 31,
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December 31,
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September 30,
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March 31,
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||||||||||||
2014
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2013
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2013
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2013
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|||||||||||||
(dollars in thousands)
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||||||||||||||||
Assets:
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||||||||||||||||
Cash and cash equivalents
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||||||||||||||||
Cash and due from banks
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$ | 15,298 | $ | 33,883 | $ | 32,026 | $ | 14,108 | ||||||||
Interest earning deposits at Federal Reserve Bank
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796,385 | 1,196,515 | 657,618 | 1,102,217 | ||||||||||||
Securities sold under agreements to resell
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24,926 | 7,544 | 40,811 | 22,831 | ||||||||||||
Total cash and cash equivalents
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836,609 | 1,237,942 | 730,455 | 1,139,156 | ||||||||||||
Investment securities, available-for-sale, at fair value
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1,411,708 | 1,253,117 | 1,083,154 | 898,653 | ||||||||||||
Investment securities, held-to-maturity
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97,149 | 97,205 | 97,459 | 45,064 | ||||||||||||
Loans held for sale, at fair value
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222,024 | 69,904 | 25,557 | 28,402 | ||||||||||||
Loans, net of deferred fees and costs
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2,044,004 | 1,958,445 | 1,991,455 | 1,968,890 | ||||||||||||
Allowance for loan and lease losses
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(46,409 | ) | (38,182 | ) | (39,151 | ) | (34,883 | ) | ||||||||
Loans, net
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1,997,595 | 1,920,263 | 1,952,304 | 1,934,007 | ||||||||||||
Federal Home Loan Bank & Atlantic Central Bankers Bank stock
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3,209 | 3,209 | 3,209 | 3,094 | ||||||||||||
Premises and equipment, net
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15,692 | 15,659 | 14,252 | 10,965 | ||||||||||||
Accrued interest receivable
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14,715 | 13,131 | 12,556 | 11,521 | ||||||||||||
Intangible assets, net
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7,407 | 7,612 | 6,253 | 6,753 | ||||||||||||
Other real estate owned
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27,763 | 26,295 | 20,111 | 4,543 | ||||||||||||
Deferred tax asset, net
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27,451 | 30,415 | 26,434 | 23,055 | ||||||||||||
Other assets
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38,301 | 31,313 | 28,538 | 26,882 | ||||||||||||
Total assets
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$ | 4,699,623 | $ | 4,706,065 | $ | 4,000,282 | $ | 4,132,095 | ||||||||
Liabilities:
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Deposits
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||||||||||||||||
Demand and interest checking
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$ | 3,842,569 | $ | 3,722,602 | $ | 3,050,167 | $ | 3,197,039 | ||||||||
Savings and money market
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393,329 | 536,162 | 504,447 | 495,001 | ||||||||||||
Time deposits
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9,115 | 9,773 | 9,920 | 12,602 | ||||||||||||
Time deposits, $100,000 and over
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2,195 | 4,452 | 4,683 | 8,343 | ||||||||||||
Total deposits
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4,247,208 | 4,272,989 | 3,569,217 | 3,712,985 | ||||||||||||
Securities sold under agreements to repurchase
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16,491 | 21,221 | 22,057 | 16,672 | ||||||||||||
Subordinated debenture
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13,401 | 13,401 | 13,401 | 13,401 | ||||||||||||
Other liabilities
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56,353 | 38,850 | 42,274 | 42,961 | ||||||||||||
Total liabilities
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$ | 4,333,453 | $ | 4,346,461 | $ | 3,646,949 | $ | 3,786,019 | ||||||||
Shareholders' equity:
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Common stock - authorized, 50,000,000 shares of $1.00 par value; 37,804,902 and 37,433,594 shares issued at March 31, 2014 and 2013, respectively
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37,805 | 37,721 | 37,721 | 37,434 | ||||||||||||
Treasury stock (100,000 shares)
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(866 | ) | (866 | ) | (866 | ) | (866 | ) | ||||||||
Additional paid-in capital
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295,824 | 294,576 | 292,715 | 285,009 | ||||||||||||
Retained earnings (accumulated deficit)
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27,424 | 27,615 | 20,291 | 14,753 | ||||||||||||
Accumulated other comprehensive income
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5,983 | 558 | 3,472 | 9,746 | ||||||||||||
Total shareholders' equity
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366,170 | 359,604 | 353,333 | 346,076 | ||||||||||||
Total liabilities and shareholders' equity
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$ | 4,699,623 | $ | 4,706,065 | $ | 4,000,282 | $ | 4,132,095 |
Average balance sheet and net interest income
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Three months ended March 31, 2014
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Three months ended March 31, 2013
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(dollars in thousands)
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Average
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Average
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Average
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Average
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||||||||||||||||||||
Assets:
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Balance
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Interest
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Rate
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Balance
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Interest
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Rate
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||||||||||||||||||
Interest-earning assets:
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Loans net of unearned fees and costs **
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$ | 2,142,143 | $ | 21,220 | 3.96 | % | $ | 1,928,786 | $ | 20,192 | 4.19 | % | ||||||||||||
Leases - bank qualified*
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18,288 | 247 | 5.40 | % | 14,393 | 200 | 5.56 | % | ||||||||||||||||
Investment securities-taxable
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1,020,135 | 5,137 | 2.01 | % | 682,676 | 3,487 | 2.04 | % | ||||||||||||||||
Investment securities-nontaxable*
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391,486 | 3,206 | 3.28 | % | 126,221 | 1,116 | 3.54 | % | ||||||||||||||||
Interest earning deposits at Federal Reserve Bank
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1,235,319 | 764 | 0.25 | % | 1,343,899 | 838 | 0.25 | % | ||||||||||||||||
Federal funds sold/securities purchased under agreement to resell
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30,545 | 106 | 1.39 | % | 20,380 | 24 | 0.47 | % | ||||||||||||||||
Net interest earning assets
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4,837,916 | 30,680 | 2.54 | % | 4,116,355 | 25,857 | 2.51 | % | ||||||||||||||||
Allowance for loan and lease losses
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(38,419 | ) | (34,839 | ) | ||||||||||||||||||||
Other assets
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155,646 | 83,902 | ||||||||||||||||||||||
$ | 4,955,143 | $ | 4,165,418 | |||||||||||||||||||||
Liabilities and Shareholders' Equity:
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Deposits:
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Demand and interest checking
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$ | 4,015,547 | $ | 2,237 | 0.22 | % | $ | 3,257,692 | $ | 1,866 | 0.23 | % | ||||||||||||
Savings and money market
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498,185 | 504 | 0.40 | % | 506,174 | 578 | 0.46 | % | ||||||||||||||||
Time
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13,342 | 35 | 1.05 | % | 20,919 | 54 | 1.03 | % | ||||||||||||||||
Total deposits
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4,527,074 | 2,776 | 0.25 | % | 3,784,785 | 2,498 | 0.26 | % | ||||||||||||||||
Short-term borrowings
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22 | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Repurchase agreements
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16,752 | 12 | 0.29 | % | 15,762 | 14 | 0.36 | % | ||||||||||||||||
Subordinated debt
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13,401 | 115 | 3.43 | % | 13,401 | 200 | 5.97 | % | ||||||||||||||||
Total deposits and interest bearing liabilities
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4,557,249 | 2,903 | 0.25 | % | 3,813,948 | 2,712 | 0.28 | % | ||||||||||||||||
Other liabilities
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32,950 | 11,344 | ||||||||||||||||||||||
Total liabilities
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4,590,199 | 3,825,292 | ||||||||||||||||||||||
Shareholders' equity
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364,944 | 340,126 | ||||||||||||||||||||||
$ | 4,955,143 | $ | 4,165,418 | |||||||||||||||||||||
Net interest income on tax equivalent basis*
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$ | 27,777 | $ | 23,145 | ||||||||||||||||||||
Tax equivalent adjustment
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1,209 | 461 | ||||||||||||||||||||||
Net interest income
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$ | 26,568 | $ | 22,684 | ||||||||||||||||||||
Net interest margin *
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2.30 | % | 2.25 | % | ||||||||||||||||||||
* Full taxable equivalent basis using a 35% statutory tax rate.
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** Includes loans held for sale.
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Allowance for loan and lease losses:
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Three months ended
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Year ended
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March 31,
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March 31,
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December 31,
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||||||||||||||
2014
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2013
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2013
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(dollars in thousands)
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Balance in the allowance for loan and lease losses at beginning of period
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$ | 38,182 | $ | 33,040 | $ | 33,040 | ||||||||||
Loans charged-off:
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Commercial
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4,247 | 2,073 | 14,771 | |||||||||||||
Construction
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4,633 | 1,608 | 10,295 | |||||||||||||
Lease financing
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- | - | 30 | |||||||||||||
Residential mortgage
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108 | - | 54 | |||||||||||||
Consumer
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128 | 54 | 488 | |||||||||||||
Total
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9,116 | 3,735 | 25,638 | |||||||||||||
Recoveries:
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Commercial
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25 | 35 | 180 | |||||||||||||
Construction
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4 | - | 1,019 | |||||||||||||
Lease financing
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- | - | 8 | |||||||||||||
Residential mortgage
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- | - | - | |||||||||||||
Consumer
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14 | 43 | 73 | |||||||||||||
Total
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43 | 78 | 1,280 | |||||||||||||
Net charge-offs
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9,073 | 3,657 | 24,358 | |||||||||||||
Provision charged to operations
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17,300 | 5,500 | 29,500 | |||||||||||||
Balance in allowance for loan and lease losses at end of period
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$ | 46,409 | $ | 34,883 | $ | 38,182 | ||||||||||
Net charge-offs/average loans
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0.42 | % | 0.19 | % | 1.21 | % | ||||||||||
Net charge-offs/average loans (annualized)
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1.68 | % | 0.75 | % | 1.21 | % | ||||||||||
Net charge-offs/average assets
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0.18 | % | 0.09 | % | 0.59 | % | ||||||||||
Loan portfolio:
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March 31,
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December 31,
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September 30,
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March 31,
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||||||||||||
2014 | 2013 | 2013 | 2013 | |||||||||||||
(dollars in thousands)
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Commercial
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$ | 489,574 | $ | 450,113 | $ | 470,072 | $ | 477,690 | ||||||||
Commercial mortgage (1)
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610,990 | 625,810 | 654,456 | 673,916 | ||||||||||||
Construction
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283,928 | 258,889 | 255,272 | 263,579 | ||||||||||||
Total commercial loans
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1,384,492 | 1,334,812 | 1,379,800 | 1,415,185 | ||||||||||||
Direct lease financing
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181,007 | 175,610 | 177,797 | 157,508 | ||||||||||||
Residential mortgage
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95,397 | 94,850 | 94,564 | 94,238 | ||||||||||||
Consumer and other loans
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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
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7,290 | 6,839 | 6,867 | 5,589 | ||||||||||||
Total loans, net of deferred loan fees and costs
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$ | 2,044,004 | $ | 1,958,445 | $ | 1,991,455 | $ | 1,968,890 | ||||||||
Supplemental loan data:
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Construction 1-4 family
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$ | 47,521 | $ | 48,394 | $ | 60,989 | $ | 65,669 | ||||||||
Commercial construction, acquisition and development
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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.
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Tier 1 capital
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Tier 1 capital
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Total capital
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to average assets
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to risk-weighted assets
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to risk-weighted assets
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As of March 31, 2014
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Bancorp
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7.39 | % | 13.01 | % | 14.26 | % | ||||||
The Bancorp Bank
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6.19 | % | 10.87 | % | 12.12 | % | ||||||
"Well capitalized" institution (under FDIC regulations)
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5.00 | % | 6.00 | % | 10.00 | % | ||||||
As of December 31, 2013
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||||||||||||
Bancorp
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8.58 | % | 14.57 | % | 15.83 | % | ||||||
The Bancorp Bank
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6.72 | % | 11.40 | % | 12.66 | % | ||||||
"Well capitalized" institution (under FDIC regulations)
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5.00 | % | 6.00 | % | 10.00 | % |
Three months ended
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Year ended
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|||||||||||||||
March 31,
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December 31,
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December 31,
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||||||||||||||
2014
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2013
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2013
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2013
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|||||||||||||
Selected operating ratios:
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Return on average assets (annualized)
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0.02 | % | 0.72 | % | 0.68 | % | 0.61 | % | ||||||||
Return on average equity (annualized)
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0.33 | % | 8.83 | % | 8.17 | % | 7.22 | % | ||||||||
Net interest margin
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2.30 | % | 2.25 | % | 2.54 | % | 2.44 | % | ||||||||
Efficiency ratio (1)
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65.28 | % | 58.92 | % | 63.93 | % | 62.47 | % | ||||||||
Book value per share
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$ | 9.71 | $ | 9.27 | $ | 9.56 | $ | 9.56 | ||||||||
March 31,
|
December 31,
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September 30,
|
March 31,
|
|||||||||||||
2014 | 2013 | 2013 | 2013 | |||||||||||||
Asset quality ratios:
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Nonperforming loans to total loans (2)
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2.20 | % | 2.08 | % | 2.46 | % | 1.80 | % | ||||||||
Nonperforming assets to total assets (2)
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1.55 | % | 1.42 | % | 1.73 | % | 0.97 | % | ||||||||
Allowance for loan and lease losses to total loans
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2.27 | % | 1.95 | % | 1.97 | % | 1.77 | % | ||||||||
Nonaccrual loans
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$ | 44,701 | $ | 40,551 | $ | 48,750 | $ | 34,063 | ||||||||
Other real estate owned
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27,763 | 26,295 | 20,111 | 4,543 | ||||||||||||
Total nonperforming assets
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$ | 72,464 | $ | 66,846 | $ | 68,861 | $ | 38,606 | ||||||||
Loans 90 days past due still accruing interest
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$ | 189 | $ | 110 | $ | 204 | $ | 1,291 | ||||||||
Gross dollar volume (GDV):
|
||||||||||||||||
Prepaid card GDV
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$ | 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
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Year ended
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|||||||||||||||
March 31,
|
December 31,
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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.
|