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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Exhibit No.
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Description
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EX-99.1
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The Bancorp, Inc.
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Date: April 25, 2019
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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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·
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Diluted earnings per share increased to $0.32 for the quarter ended March 31, 2019, compared to $0.25 for the quarter ended March 31,
2018, an increase of 27%.
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·
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Net income increased to $17.9 million for the quarter ended March 31, 2019, compared to $14.1 million for the quarter ended March 31,
2018, an increase of 27%.
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·
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Net interest margin increased to 3.41% for the quarter ended March 31, 2019, compared to 3.12% for the quarter ended March 31, 2018.
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·
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Net interest income increased 13% to $34.0 million for the quarter ended March 31, 2019, compared to $30.1 million for the quarter
ended March 31, 2018.
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·
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Average loans and leases, including loans held for sale, increased 16% to $2.28 billion for the quarter ended March 31, 2019, compared
to $1.97 billion for the quarter ended March 31, 2018.
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·
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Prepaid card fees increased to $16.2 million for the quarter ended March 31, 2019, or 13%, compared to $14.3 million for the quarter
ended March 31, 2018.
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·
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ACH (Automated Clearing House), card and other payment processing fees increased 36%, to $2.3 million for the quarter ended March 31,
2019, compared to $1.7 million for the quarter ended March 31, 2018.
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·
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Small Business Administration (“SBA”) loans increased 16% to $493.7 million at March 31, 2019, compared to $424.5 million at March 31,
2018.
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·
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The rate on $3.92 billion of average deposits and interest-bearing liabilities in the first quarter of 2019 was 0.98%. Average prepaid
deposits of $2.54 billion for first quarter 2019 reflected an increase of 14.7% compared to $2.22 billion for the quarter ended March 31, 2018.
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·
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Consolidated leverage ratio was 9.9% at March 31, 2019. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.
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·
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Book value per common share at March 31, 2019 was $7.70 per share.
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Financial highlights
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||||||||||||
(unaudited)
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||||||||||||
Three months ended
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Year ended
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|||||||||||
March 31,
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December 31,
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|||||||||||
Condensed income statement
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2019
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2018
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2018
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|||||||||
(dollars in thousands except per share data)
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||||||||||||
Net interest income
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$
|
34,010
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$
|
30,074
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$
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120,849
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||||||
Provision for loan and lease losses
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1,700
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700
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3,585
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|||||||||
Non-interest income
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||||||||||||
Service fees on deposit accounts
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47
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1,576
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3,622
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|||||||||
ACH, card and other payment processing fees
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2,303
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1,692
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8,653
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|||||||||
Prepaid card fees
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16,163
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14,282
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54,627
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|||||||||
Net realized and unrealized gains on commercial
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||||||||||||
loans originated for sale
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10,763
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11,729
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20,498
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|||||||||
Gain on sale of investment securities
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-
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26
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41
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|||||||||
Change in value of investment in unconsolidated entity
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-
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(1,171
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)
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(3,689
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)
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|||||||
Leasing income
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695
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487
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3,071
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|||||||||
Affinity fees
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-
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102
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281
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|||||||||
Gain on sale of IRA portfolio
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-
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-
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65,000
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|||||||||
Other non-interest income
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394
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372
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1,691
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|||||||||
Total non-interest income
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30,365
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29,095
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153,795
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|||||||||
Non-interest expense
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||||||||||||
Salaries and employee benefits
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23,840
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21,073
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79,816
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Data processing expense
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1,269
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2,005
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6,187
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Legal expense
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1,324
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2,431
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7,845
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|||||||||
FDIC Insurance
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1,929
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2,219
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8,819
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|||||||||
Software
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2,921
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3,291
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13,304
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|||||||||
Losses and write downs on other real estate owned
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-
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45
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-
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|||||||||
Civil money penalty
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-
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(290
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)
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(290
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)
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Prepaid relationship exit expense
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-
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-
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672
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|||||||||
Lease termination expense
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-
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-
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395
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Other non-interest expense
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7,946
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8,275
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34,530
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|||||||||
Total non-interest expense
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39,229
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39,049
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151,278
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|||||||||
Income from continuing operations before income taxes
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23,446
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19,420
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119,781
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|||||||||
Income tax expense
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6,035
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5,399
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32,241
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|||||||||
Net income from continuing operations
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17,411
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14,021
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87,540
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Discontinued operations
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||||||||||||
Income from discontinued operations before income taxes
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805
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156
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1,491
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Income tax expense
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286
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37
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354
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|||||||||
Net income from discontinued operations, net of tax
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519
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119
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1,137
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|||||||||
Net income available to common shareholders
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$
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17,930
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$
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14,140
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$
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88,677
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||||||
Net income per share from continuing operations - basic
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$
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0.31
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$
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0.25
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$
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1.55
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||||||
Net income per share from discontinued operations - basic
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$
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0.01
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$
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-
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$
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0.02
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||||||
Net income per share - basic
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$
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0.32
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$
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0.25
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$
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1.57
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||||||
Net income per share from continuing operations - diluted
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$
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0.31
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$
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0.25
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$
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1.53
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||||||
Net income per share from discontinued operations - diluted
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$
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0.01
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$
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-
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$
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0.02
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||||||
Net income per share - diluted
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$
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0.32
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$
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0.25
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$
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1.55
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||||||
Weighted average shares - basic
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56,522,015
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56,141,830
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56,343,845
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|||||||||
Weighted average shares - diluted
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56,876,662
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57,023,121
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57,068,306
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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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||||||||||||
2019
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2018
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2018
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2018
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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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$
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11,678
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$
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2,440
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$
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2,245
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$
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1,999
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||||||||
Interest earning deposits at Federal Reserve Bank
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714,514
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551,862
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710,816
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508,847
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Securities sold under agreements to resell
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-
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-
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64,518
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64,312
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Total cash and cash equivalents
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726,192
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554,302
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777,579
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575,158
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||||||||||||
Investment securities, available-for-sale, at fair value
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1,368,602
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1,236,324
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1,274,417
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1,381,020
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||||||||||||
Investment securities, held-to-maturity
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84,428
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84,432
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84,433
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86,370
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||||||||||||
Commercial loans held for sale, at fair value
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570,426
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688,471
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308,470
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349,806
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||||||||||||
Loans, net of deferred fees and costs
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1,510,395
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1,501,976
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1,493,932
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1,459,881
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||||||||||||
Allowance for loan and lease losses
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(9,954
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)
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(8,653
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)
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(8,092
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)
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(7,285
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)
|
||||||||
Loans, net
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1,500,441
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1,493,323
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1,485,840
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1,452,596
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||||||||||||
Federal Home Loan Bank & Atlantic Community Bancshares stock
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1,113
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1,113
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1,113
|
991
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||||||||||||
Premises and equipment, net
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18,056
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18,895
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17,686
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19,052
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||||||||||||
Accrued interest receivable
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13,907
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12,753
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11,621
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11,778
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||||||||||||
Intangible assets, net
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3,463
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3,846
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4,229
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4,995
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||||||||||||
Other real estate owned
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-
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-
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405
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405
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||||||||||||
Deferred tax asset, net
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18,423
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21,622
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40,991
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38,139
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||||||||||||
Investment in unconsolidated entity
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58,258
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59,273
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64,212
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70,016
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||||||||||||
Assets held for sale from discontinued operations
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188,025
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197,831
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226,026
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289,038
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||||||||||||
Other assets
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75,642
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65,726
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63,178
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89,736
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||||||||||||
Total assets
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$
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4,626,976
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$
|
4,437,911
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$
|
4,360,200
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$
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4,369,100
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||||||||
Liabilities:
|
||||||||||||||||
Deposits
|
||||||||||||||||
Demand and interest checking
|
$
|
3,993,828
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$
|
3,904,638
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$
|
3,540,605
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$
|
3,461,881
|
||||||||
Savings and money market
|
31,470
|
31,076
|
317,453
|
493,288
|
||||||||||||
Total deposits
|
4,025,298
|
3,935,714
|
3,858,058
|
3,955,169
|
||||||||||||
Securities sold under agreements to repurchase
|
93
|
93
|
158
|
182
|
||||||||||||
Subordinated debenture
|
13,401
|
13,401
|
13,401
|
13,401
|
||||||||||||
Long-term borrowings
|
41,499
|
41,674
|
41,841
|
42,157
|
||||||||||||
Other liabilities
|
111,905
|
40,253
|
54,868
|
28,299
|
||||||||||||
Total liabilities
|
$
|
4,192,196
|
$
|
4,031,135
|
$
|
3,968,326
|
$
|
4,039,208
|
||||||||
Shareholders' equity:
|
||||||||||||||||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,568,004 and 56,307,088 shares issued and outstanding at March 31,
2019 and 2018, respectively
|
56,568
|
56,446
|
56,446
|
56,307
|
||||||||||||
Treasury stock (100,000 shares)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
(866
|
)
|
||||||||
Additional paid-in capital
|
367,483
|
366,181
|
365,749
|
363,605
|
||||||||||||
Accumulated earnings (deficit)
|
17,113
|
(817
|
)
|
(7,936
|
)
|
(75,345
|
)
|
|||||||||
Accumulated other comprehensive loss
|
(5,518
|
)
|
(14,168
|
)
|
(21,519
|
)
|
(13,809
|
)
|
||||||||
Total shareholders' equity
|
434,780
|
406,776
|
391,874
|
329,892
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
4,626,976
|
$
|
4,437,911
|
$
|
4,360,200
|
$
|
4,369,100
|
||||||||
Average balance sheet and net interest income
|
Three months ended March 31, 2019
|
Three months ended March 31, 2018
|
||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Assets:
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans net of deferred fees and costs **
|
$
|
2,266,834
|
$
|
30,161
|
5.32
|
%
|
$
|
1,947,320
|
$
|
23,039
|
4.73
|
%
|
||||||||||||
Leases - bank qualified*
|
17,793
|
428
|
9.62
|
%
|
21,036
|
334
|
6.35
|
%
|
||||||||||||||||
Investment securities-taxable
|
1,303,491
|
10,530
|
3.23
|
%
|
1,375,568
|
9,699
|
2.82
|
%
|
||||||||||||||||
Investment securities-nontaxable*
|
7,546
|
59
|
3.13
|
%
|
9,893
|
75
|
3.03
|
%
|
||||||||||||||||
Interest earning deposits at Federal Reserve Bank
|
423,024
|
2,502
|
2.37
|
%
|
502,233
|
1,832
|
1.46
|
%
|
||||||||||||||||
Federal funds sold and securities purchased under
|
||||||||||||||||||||||||
agreement to resell
|
-
|
-
|
-
|
64,216
|
414
|
2.58
|
%
|
|||||||||||||||||
Net interest earning assets
|
4,018,688
|
43,680
|
4.35
|
%
|
3,920,266
|
35,393
|
3.61
|
%
|
||||||||||||||||
Allowance for loan and lease losses
|
(8,638
|
)
|
(6,976
|
)
|
||||||||||||||||||||
Loans held for sale from discontinued operations
|
173,800
|
2,025
|
4.66
|
%
|
276,370
|
2,527
|
3.66
|
%
|
||||||||||||||||
Other assets
|
234,174
|
221,433
|
||||||||||||||||||||||
$
|
4,418,024
|
$
|
4,411,093
|
|||||||||||||||||||||
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand and interest checking
|
$
|
3,798,837
|
$
|
8,833
|
0.93
|
%
|
$
|
3,535,791
|
$
|
4,301
|
0.49
|
%
|
||||||||||||
Savings and money market
|
31,392
|
37
|
0.47
|
%
|
487,380
|
668
|
0.55
|
%
|
||||||||||||||||
Total deposits
|
3,830,229
|
8,870
|
0.93
|
%
|
4,023,171
|
4,969
|
0.49
|
%
|
||||||||||||||||
Short-term borrowings
|
74,386
|
503
|
2.70
|
%
|
24,844
|
104
|
1.67
|
%
|
||||||||||||||||
Securities sold under agreements to repurchase
|
90
|
-
|
0.00
|
%
|
205
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated debentures
|
13,401
|
195
|
5.82
|
%
|
13,401
|
160
|
4.78
|
%
|
||||||||||||||||
Total deposits and liabilities
|
3,918,106
|
9,568
|
0.98
|
%
|
4,061,621
|
5,233
|
0.52
|
%
|
||||||||||||||||
Other liabilities
|
79,140
|
22,452
|
||||||||||||||||||||||
Total liabilities
|
3,997,246
|
4,084,073
|
||||||||||||||||||||||
Shareholders' equity
|
420,778
|
327,020
|
||||||||||||||||||||||
$
|
4,418,024
|
$
|
4,411,093
|
|||||||||||||||||||||
Net interest income on tax equivalent basis*
|
$
|
36,137
|
$
|
32,687
|
||||||||||||||||||||
Tax equivalent adjustment
|
102
|
86
|
||||||||||||||||||||||
Net interest income
|
$
|
36,035
|
$
|
32,601
|
||||||||||||||||||||
Net interest margin *
|
3.41
|
%
|
3.12
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
* Full taxable equivalent basis, using a statutory rate of 21% for 2019 and 2018.
|
||||||||||||||||||||||||
** Includes loans held for sale.
|
Allowance for loan and lease losses:
|
Three months ended
|
Year ended
|
||||||||||||||
March 31,
|
March 31,
|
December 31,
|
||||||||||||||
2019
|
2018
|
2018
|
||||||||||||||
(dollars in thousands)
|
||||||||||||||||
Balance in the allowance for loan and lease losses at beginning of period (1)
|
$
|
8,653
|
$
|
7,096
|
$
|
7,096
|
||||||||||
Loans charged-off:
|
||||||||||||||||
SBA non-real estate
|
322
|
388
|
1,348
|
|||||||||||||
SBA commercial mortgage
|
-
|
157
|
157
|
|||||||||||||
Direct lease financing
|
106
|
56
|
637
|
|||||||||||||
Other consumer loans
|
-
|
14
|
21
|
|||||||||||||
Total
|
428
|
615
|
2,163
|
|||||||||||||
Recoveries:
|
||||||||||||||||
SBA non-real estate
|
17
|
40
|
57
|
|||||||||||||
SBA commercial mortgage
|
-
|
6
|
13
|
|||||||||||||
Direct lease financing
|
12
|
58
|
64
|
|||||||||||||
Other consumer loans
|
-
|
-
|
1
|
|||||||||||||
Total
|
29
|
104
|
135
|
|||||||||||||
Net charge-offs
|
399
|
511
|
2,028
|
|||||||||||||
Provision charged to operations
|
1,700
|
700
|
3,585
|
|||||||||||||
Balance in allowance for loan and lease losses at end of period
|
$
|
9,954
|
$
|
7,285
|
$
|
8,653
|
||||||||||
Net charge-offs/average loans
|
0.02
|
%
|
0.03
|
%
|
0.10
|
%
|
||||||||||
Net charge-offs/average loans (annualized)
|
0.07
|
%
|
0.11
|
%
|
0.10
|
%
|
||||||||||
Net charge-offs/average assets
|
0.01
|
%
|
0.01
|
%
|
0.05
|
%
|
||||||||||
(1) Excludes activity from assets held for sale from discontinued operations.
|
||||||||||||||||
Loan portfolio:
|
March 31,
|
December 31,
|
September 30,
|
March 31,
|
||||||||||||
2019
|
2018
|
2018
|
2018
|
|||||||||||||
(in thousands)
|
||||||||||||||||
SBA non-real estate
|
$
|
76,112
|
$
|
76,340
|
$
|
74,408
|
$
|
75,225
|
||||||||
SBA commercial mortgage
|
179,397
|
165,406
|
166,432
|
149,227
|
||||||||||||
SBA construction
|
23,979
|
21,636
|
17,978
|
20,143
|
||||||||||||
Total SBA loans
|
279,488
|
263,382
|
258,818
|
244,595
|
||||||||||||
Direct lease financing
|
384,930
|
394,770
|
393,135
|
382,284
|
||||||||||||
SBLOC
|
791,986
|
785,303
|
778,552
|
759,369
|
||||||||||||
Other specialty lending
|
34,425
|
31,836
|
40,799
|
45,729
|
||||||||||||
Other consumer loans
|
9,301
|
16,302
|
12,172
|
17,416
|
||||||||||||
1,500,130
|
1,491,593
|
1,483,476
|
1,449,393
|
|||||||||||||
Unamortized loan fees and costs
|
10,265
|
10,383
|
10,456
|
10,488
|
||||||||||||
Total loans, net of deferred fees and costs
|
$
|
1,510,395
|
$
|
1,501,976
|
$
|
1,493,932
|
$
|
1,459,881
|
||||||||
Small business lending portfolio:
|
March 31,
|
December 31,
|
September 30,
|
March 31,
|
||||||||||||
2019
|
2018
|
2018
|
2018
|
|||||||||||||
(in thousands)
|
||||||||||||||||
SBA loans, including deferred fees and costs
|
286,814
|
270,860
|
266,433
|
252,457
|
||||||||||||
SBA loans included in HFS
|
206,901
|
199,977
|
193,372
|
172,030
|
||||||||||||
Total SBA loans
|
$
|
493,715
|
$
|
470,837
|
$
|
459,805
|
$
|
424,487
|
Capital ratios:
|
Tier 1 capital
|
Tier 1 capital
|
Total capital
|
Common equity
|
||||||||||||
to average
|
to risk-weighted
|
to risk-weighted
|
tier 1 to risk
|
|||||||||||||
assets ratio
|
assets ratio
|
assets ratio
|
weighted assets
|
|||||||||||||
As of March 31, 2019
|
||||||||||||||||
The Bancorp, Inc.
|
9.90
|
%
|
23.64
|
%
|
24.18
|
%
|
23.64
|
%
|
||||||||
The Bancorp Bank
|
9.63
|
%
|
23.17
|
%
|
23.71
|
%
|
23.17
|
%
|
||||||||
"Well capitalized" institution (under FDIC regulations)
|
5.00
|
%
|
8.00
|
%
|
10.00
|
%
|
6.50
|
%
|
||||||||
As of December 31, 2018
|
||||||||||||||||
The Bancorp, Inc.
|
10.11
|
%
|
20.64
|
%
|
21.07
|
%
|
20.64
|
%
|
||||||||
The Bancorp Bank
|
9.70
|
%
|
20.18
|
%
|
20.61
|
%
|
20.18
|
%
|
||||||||
"Well capitalized" institution (under FDIC regulations)
|
5.00
|
%
|
8.00
|
%
|
10.00
|
%
|
6.50
|
%
|
Three months ended
|
Year ended
|
|||||||||||||||
March 31,
|
December 31,
|
|||||||||||||||
2019
|
2018
|
2018
|
||||||||||||||
Selected operating ratios:
|
||||||||||||||||
Return on average assets (1)
|
1.65
|
%
|
1.30
|
%
|
2.07
|
%
|
||||||||||
Return on average equity (1)
|
17.28
|
%
|
17.54
|
%
|
24.26
|
%
|
||||||||||
Net interest margin
|
3.41
|
%
|
3.12
|
%
|
3.19
|
%
|
||||||||||
(1) Annualized
|
||||||||||||||||
Book value per share table:
|
March 31,
|
December 31,
|
September 30,
|
March 31,
|
||||||||||||
2019
|
2018
|
2018
|
2018
|
|||||||||||||
Book value per share
|
$
|
7.70
|
$
|
7.22
|
$
|
6.95
|
$
|
5.87
|
||||||||
Loan quality table:
|
March 31,
|
December 31,
|
September 30,
|
March 31,
|
||||||||||||
2019
|
2018
|
2018
|
2018
|
|||||||||||||
Nonperforming loans to total loans (2)
|
0.55
|
%
|
0.36
|
%
|
0.35
|
%
|
0.42
|
%
|
||||||||
Nonperforming assets to total assets (2)
|
0.18
|
%
|
0.12
|
%
|
0.13
|
%
|
0.15
|
%
|
||||||||
Allowance for loan and lease losses to total loans
|
0.66
|
%
|
0.58
|
%
|
0.54
|
%
|
0.50
|
%
|
||||||||
Nonaccrual loans
|
$
|
5,863
|
$
|
4,516
|
$
|
4,234
|
$
|
3,516
|
||||||||
Other real estate owned
|
-
|
-
|
405
|
405
|
||||||||||||
Total nonperforming assets
|
$
|
5,863
|
$
|
4,516
|
$
|
4,639
|
$
|
3,921
|
||||||||
Loans 90 days past due still accruing interest
|
$
|
2,483
|
$
|
954
|
$
|
1,015
|
$
|
2,643
|
||||||||
(2) Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.
|
||||||||||||||||
Three months ended
|
||||||||||||||||
March 31,
|
December 31,
|
September 30,
|
March 31,
|
|||||||||||||
2019
|
2018
|
2018
|
2018
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Gross dollar volume (GDV) (3):
|
||||||||||||||||
Prepaid card GDV
|
$
|
16,937,325
|
$
|
13,526,647
|
$
|
12,525,527
|
$
|
13,402,496
|
||||||||
(3) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank.
|
Business line quarterly summary:
|
||||||||||||||||||||||||
Quarter ended March 31, 2019
|
||||||||||||||||||||||||
(dollars in millions)
|
||||||||||||||||||||||||
Balances
|
Non interest income
|
|||||||||||||||||||||||
% Growth
|
% Growth
|
|||||||||||||||||||||||
Major business lines
|
Average approximate rates
|
Balances*
|
Year over year
|
Linked quarter annualized
|
Current quarter
|
Year over year
|
||||||||||||||||||
Loans
|
||||||||||||||||||||||||
Institutional banking **
|
4.4
|
%
|
$
|
792
|
4
|
%
|
4
|
%
|
na
|
na
|
||||||||||||||
SBA
|
5.6
|
%
|
494
|
16
|
%
|
19
|
%
|
na
|
na
|
|||||||||||||||
Leasing
|
6.3
|
%
|
395
|
-
|
-
|
$
|
0.7
|
43
|
%
|
|||||||||||||||
Commercial real estate securitization
|
5.9
|
%
|
364
|
nm
|
nm
|
10.8
|
-
|
|||||||||||||||||
Weighted average yield
|
5.3
|
%
|
$
|
2,045
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Payment solutions (primarily prepaid) ***
|
1.2
|
%
|
$
|
2,542
|
15
|
%
|
nm
|
$
|
16.2
|
13
|
%
|
|||||||||||||
Card payment and ACH processing
|
0.8
|
%
|
893
|
-
|
nm
|
2.3
|
36
|
%
|
||||||||||||||||
* Loan categories based on period end balance and Payment Solutions based on average quarterly balances.
|
||||||||||||||||||||||||
** Comprised of SBLOC loans.
|
||||||||||||||||||||||||
*** Includes $900,000 of fee income related to 2018 incentives.
|
Analysis of Walnut Street* marks:
|
||||||||
Loan activity
|
Marks
|
|||||||
(dollars in millions)
|
||||||||
Original Walnut Street loan balance, December 31, 2014
|
$
|
267
|
||||||
Marks through December 31, 2014 sale date
|
(58
|
)
|
$
|
(58
|
)
|
|||
Sales price of Walnut Street
|
209
|
|||||||
Equity investment from independent investor
|
(16
|
)
|
||||||
December 31, 2014 Bancorp book value
|
193
|
|||||||
Additional marks 2015 - 2018
|
(46
|
)
|
(46
|
)
|
||||
2019 Marks
|
-
|
-
|
||||||
Payments received
|
(89
|
)
|
||||||
March 31, 2019 Bancorp book value**
|
$
|
58
|
||||||
Total marks
|
$
|
(104
|
)
|
|||||
Divided by:
|
||||||||
Original Walnut Street loan balance
|
$
|
267
|
||||||
Percentage of total mark to original balance
|
39
|
%
|
||||||
* Walnut Street is the investment in unconsolidated entity on the balance sheet which reflects the Bank's investment in a securitization
of certain loans from the Bank's discontinued loan portfolio.
|
||||||||
** Approximately 44% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of March
31, 2019.
|
||||||||
Walnut Street portfolio composition as of March 31, 2019
|
||||||||
Collateral type
|
% of Portfolio
|
|||||||
Commercial real estate non-owner occupied
|
||||||||
Retail
|
52.2
|
%
|
||||||
Office
|
13.2
|
%
|
||||||
Other
|
5.9
|
%
|
||||||
Construction and land
|
18.4
|
%
|
||||||
Commercial non real estate and industrial
|
0.5
|
%
|
||||||
First mortgage residential owner occupied
|
6.1
|
%
|
||||||
First mortgage residential non-owner occupied
|
2.8
|
%
|
||||||
Other
|
0.9
|
%
|
||||||
Total
|
100.0
|
%
|
Cumulative analysis of marks on discontinued commercial loan principal as of March 31, 2019
|
|||||||||
Discontinued
|
Cumulative
|
% to original
|
|||||||
loan principal
|
marks
|
principal
|
|||||||
(dollars in millions)
|
|||||||||
Commercial loan discontinued principal before marks
|
$
|
115
|
|||||||
Florida mall held in discontinued other real estate owned
|
42
|
$
|
27
|
||||||
Previous mark charges
|
14
|
14
|
|||||||
Mark at March 31, 2019
|
7
|
||||||||
Total
|
$
|
171
|
$
|
48
|
28%
|
Performing
|
Nonperforming
|
Total
|
Performing
|
Nonperforming
|
Total
|
|||||||||||||||||||
loan principal
|
loan principal
|
loan principal
|
loan marks
|
loan marks
|
marks
|
|||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||
6 loan relationships > $7 million
|
$
|
61
|
$
|
14
|
$
|
75
|
$
|
3
|
$
|
2
|
$
|
5
|
||||||||||||
Loan relationships < $7 million
|
28
|
5
|
33
|
2
|
-
|
2
|
||||||||||||||||||
$
|
89
|
$
|
19
|
$
|
108
|
$
|
5
|
$
|
2
|
$
|
7
|
Quarterly activity for discontinued commercial loan principal
|
||||
Commercial
|
||||
loan principal
|
||||
(in millions)
|
||||
Commercial loan discontinued principal December 31, 2018 before marks
|
$
|
125
|
||
Quarterly paydowns
|
(10
|
)
|
||
Commercial loan discontinued principal March 31, 2019 before marks
|
$
|
115
|
||
Marks March 31, 2019
|
(7
|
)
|
||
Net commercial loan exposure March 31, 2019
|
$
|
108
|
||
Residential mortgages
|
51
|
|||
Net loans
|
$
|
159
|
||
Florida Mall in other real estate owned
|
15
|
|||
18 Properties in other real estate owned
|
14
|
|||
Total discontinued assets at March 31, 2019
|
$
|
188
|
Discontinued commercial loan composition March 31, 2019
|
||||||||||||
Collateral type
|
Unpaid principal balance
|
Mark
March 31, 2019 |
Mark as % of portfolio
|
|||||||||
(dollars in millions)
|
||||||||||||
Commercial real estate - non-owner occupied:
|
||||||||||||
Retail
|
$
|
4
|
$
|
0.6
|
14
|
%
|
||||||
Office
|
4
|
0.0
|
-
|
|||||||||
Other
|
38
|
1.9
|
5
|
%
|
||||||||
Construction and land
|
24
|
0.1
|
-
|
|||||||||
Commercial non-real estate and industrial
|
10
|
0.5
|
4
|
%
|
||||||||
1 to 4 family construction
|
13
|
3.8
|
30
|
%
|
||||||||
First mortgage residential non-owner occupied
|
12
|
0.4
|
4
|
%
|
||||||||
Commercial real estate owner occupied:
|
||||||||||||
Retail
|
8
|
-
|
-
|
|||||||||
Office
|
-
|
-
|
4
|
%
|
||||||||
Other
|
-
|
-
|
1
|
%
|
||||||||
Residential junior mortgage
|
1
|
-
|
-
|
|||||||||
Other
|
1
|
-
|
-
|
|||||||||
Total
|
$
|
115
|
||||||||||
Less: mark
|
(7
|
)
|
||||||||||
Net commercial loan exposure March 31, 2019
|
$
|
108
|
$
|
7.3
|
6
|
%
|