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
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