EX-99 2 exhibit1.htm EX-99 EX-99

The Bancorp, Inc. Reports First Quarter 2006 Earnings

Wilmington, De – April 24, 2006 — The Bancorp, Inc. (“Bancorp”) (Nasdaq NM: TBBK)

First Quarter 2006 Financial highlights:

  •   Net income from operations increased by 105% to $4.6 million for the three months ended March 31, 2006 from $2.2 million for the three months ended March 31, 2005

  •   Total assets increased 12.5% to $1.032 billion at March 31, 2006 from $917.5 million for at December 31, 2005

  •   Net interest margin increased to 4.65% for the three months ended March 31, 2006 from 4.44% for the three months ended March 31, 2005

  •   Efficiency ratio decreased to 55.29% for the three months ended March 31, 2006 from 64.23% for the three months ended March 31, 2005

Bancorp, a bank holding company, reported net income available to common shareholders for the three months ended March 31, 2006 of $2.8 million, or $0.20 diluted earnings per share compared to net income available to common shareholders of $317,000, or $0.03 diluted earnings per share, for the three months ended March 31, 2005. On January 1, 2006, Bancorp adopted Statement of Financial Accounting Standards (FAS) 123 ®, “Share-Based Payments”, requiring the expensing of our stock based compensation plans. The adoption of FAS 123® is included in the financial results for the first quarter of 2006 which resulted in $92,000 of non-interest expense. The financial results in the first quarter of 2005 do not include similar expense as a result of the adoption of the modified prospective method; however, comparable information is shown on a pro forma basis in the condensed income statement.

At March 31, 2006, Bancorp’s total assets were $1.032 billion, an increase of $115.0 million or 12.5% from December 31, 2005. Loans grew to $761.8 million, an increase of $80.2 million or 11.8% from those of December 31, 2005, and deposits grew to $846.1 million, an increase of $113.5 million or 15.5%, from deposits at December 31, 2005. Total common shares outstanding were 13,646,624 at March 31, 2006 and 13,637,148 at December 31, 2005.

Conference Call Webcast
Interested parties can access the LIVE webcast of Bancorp’s Quarterly Earnings Conference Call at 9:00 AM EDT on Tuesday, April 25, 2006 by clicking on the webcast link on Bancorp’s homepage at www.thebancorp.com. For those who are not available to listen to the live broadcast, the replay of the webcast will be available following the live call on Bancorp’s investor relations website and telephonically until Tuesday, May 2, 2006 by dialing 888-286-8010, access code 93727994.

About Bancorp
Bancorp, a bank holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity partner programs nationwide. The Bancorp Bank, through Philadelphia Private Bank, its regional community bank division, serves the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.

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

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The Bancorp, Inc.
Financial highlights
(unaudited)

                 
    Three months ended
    March 31,
    2006   2005
    (dollars in thousands except per share data)
Condensed income statement
                
Net interest income
   $ 10,226     $ 6,470  
Provision for loan and lease losses
     600       500  
Non-interest income
     1,300       1,014  
Non-interest expense
     6,373       4,764  
 
                
Net income from operations
     4,553       2,220  
Payment expense from redemption
                
of trust preferred subordinated debt
     —       (1,285 )
 
                
Net income before income tax expense
     4,553       935  
Income tax expense
     1,698       369  
 
                
Net income
     2,855       566  
Less preferred stock dividends and accretion
     (27 )     (204 )
Income allocated to Series A preferred shareholders
     (20 )     (45 )
 
                
Net income available to common shareholders
   $ 2,808     $ 317  
 
                
 
                
Basic earnings per share excluding loss from early redemption
                
of trust preferred securities net of tax expense of $436,000
   $ 0.21     $ 0.09  
 
                
Basic earnings per share from early redemption
                
of trust preferred securities net of tax expense of $436,000
   $ —     $ (0.06 )
 
                
Basic earnings per share
   $ 0.21     $ 0.03  
 
                
 
                
Diluted earnings per share excluding loss from early redemption
                
of trust preferred securities net of tax expense of $436,000
   $ 0.20     $ 0.09  
 
                
Diluted earnings per share from early redemption
                
of trust preferred securities net of tax expense of $436,000
   $ —     $ (0.06 )
 
                
Diluted earnings per share
   $ 0.20     $ 0.03  
 
                
Weighted average shares – basic
     13,639,598       12,195,521  
Weighted average shares – diluted
     14,170,237       12,642,681  
 
                
Pro forma calculation of net income and
                
earnings per share for FAS 123®(1)
                
Net income as reported
           $ 566  
Less stock-based compensation costs under fair value
                
method for all awards
             (1,769 )
 
                
Pro forma net (loss) income
             (1,203 )
Less preferred stock dividends and accretion
             (204 )
 
                
Net loss available to common shareholders
             (1,407 )
Basic earnings per share, pro forma
           $ (0.11 )
 
                
Diluted earnings per share, pro forma
           $ (0.11 )
 
                
                                 
    March 31,   December 31,   September 30,   March 31,
    2006   2005   2005   2005
Condensed balance sheet
                                
Assets
                                
Federal funds sold
   $ 129,623     $ 89,437     $ 85,811     $ 34,055  
Investment securities
     113,603       103,596       105,888       98,675  
Loans
     761,783       681,582       612,712       497,782  
Allowance for loan and lease losses
     (6,074 )     (5,513 )     (5,075 )     (4,101 )
Other assets
     33,554       48,369       39,493       32,193  
 
                                
Total assets
   $ 1,032,489     $ 917,471     $ 838,829     $ 658,604  
 
                                
 
                                
Liabilities and shareholders’ equity
                                
Transaction accounts
   $ 510,151     $ 467,826       381,941     $ 268,820  
Time deposits
     335,911       264,762       275,762       215,270  
 
                                
Total deposits
     846,062       732,588       657,703       484,090  
Other borrowings
     44,985       46,908       45,546       46,837  
Other liabilities
     4,025       3,028       2,487       2,559  
Shareholder’s equity
     137,417       134,947       133,093       125,118  
 
                                
Total liabilities and shareholders’ equity
   $ 1,032,489     $ 917,471     $ 838,829     $ 658,604  
 
                                
                                 
    First   Fourth   Third   First
    quarter   quarter   quarter   quarter
    average 2006   average 2005   average 2005   average 2005
Average condensed balance sheet
                                
Assets
                                
Federal funds sold
   $ 67,130     $ 63,742     $ 43,474     $ 20,066  
Investment securities
     110,689       104,888       107,112       109,260  
Loans
     701,090       631,554       583,119       453,158  
Allowance for loan and lease losses
     (5,775 )     (5,268 )     (4,805 )     (3,671 )
Other assets
     38,092       42,237       28,398       30,164  
 
                                
Total assets
   $ 911,226     $ 837,153     $ 757,298     $ 608,977  
 
                                
 
                                
Liabilities and shareholders’ equity
                                
Transaction accounts
   $ 452,304     $ 413,473     $ 335,499     $ 232,419  
Time deposits
     271,170       259,073       239,013       193,436  
 
                                
Total deposits
     723,474       672,546       574,512       425,855  
Other borrowings
     48,700       28,492       48,178       54,337  
Trust preferred
     —       —       —       5,250  
Other liabilities
     3,344       2,176       2,109       747  
Shareholders’ equity
     135,708       133,939       132,499       122,788  
 
                                
Total liabilities and shareholders’ equity
   $ 911,226     $ 837,153     $ 757,298     $ 608,977  
 
                                
                                 
    March 31, 2006   December 31, 2005   September 30, 2005   March 31, 2005
    Amount   Amount   Amount   Amount
Loan Portfolio
                                
Commercial
   $ 121,756     $ 119,654     $ 98,067     $ 90,264  
Commercial mortgage
     222,746       190,153       187,040       149,883  
Construction
     199,292       168,149       156,442       116,014  
 
                                
Total commercial loans
     543,794       477,956       441,549       356,161  
Direct financing leases, net
     90,145       81,162       74,895       72,566  
Residential mortgage
     64,658       62,378       46,183       43,148  
Consumer loans and others
     63,961       61,017       50,928       26,488  
 
                                
 
     762,558       682,513       613,555       498,363  
Unamortized fees
     (775 )     (931 )     (843 )     (581 )
 
                                
Total loans, net of unamortized fees and costs
   $ 761,783     $ 681,582     $ 612,712     $ 497,782  
 
                                
                 
    Three months ended
    March 31,
    2006   2005
Selected operating ratios
                
Return on average assets
     1.25 %     0.37 %
Return on average equity
     8.42 %     1.85 %
Net interest margin
     4.65 %     4.44 %
Efficiency ratio
     55.29 %     64.23 %
Book value per share
   $ 9.98     $ 9.42  
                 
    As of or for the period ended
    March 31,
    2006   2005
Asset quality ratios
                
Nonperforming loans to total loans
     0.04 %     0.18 %
Nonperforming assets to total assets
     0.03 %     0.14 %
Allowance for loan and lease losses to total loans
     0.80 %     0.82 %
Nonaccrual loans
     —       205  
Loans 90 days past due still accruing interest
     270       703  

(1) As disclosed in Form 10-Q for the three months ended March 31, 2005

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