Regulatory Matters

12 Months Ended

Dec. 31, 2023

Regulatory Matters [Abstract]

Regulatory Matters

Note S—Regulatory Matters

It is the policy of the Federal Reserve that financial holding companies should pay cash dividends on common stock only from income available over the past year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. The policy provides that financial holding companies should not maintain a level of cash dividends that undermines the financial holding company’s ability to serve as a source of strength to its banking subsidiaries.

Various federal and state statutory provisions limit the amount of dividends that subsidiary banks can pay to their holding companies without regulatory approval. Without the prior approval of the OCC, a dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years. Additionally, a dividend may not be paid in excess of a bank’s retained earnings. Moreover, an insured depository institution may not pay a dividend if the payment would cause it to be less than “adequately capitalized” under the prompt corrective action framework as defined in the Federal Deposit Insurance Act or if the institution is in default in the payment of an assessment due to the FDIC. Similarly, a banking organization that fails to satisfy regulatory minimum capital conservation buffer requirements will be subject to certain limitations, which include restrictions on capital distributions.

In addition to these explicit limitations, federal and state regulatory agencies are authorized to prohibit a banking subsidiary or financial holding company from engaging in an unsafe or unsound practice. Depending upon the circumstances, the agencies could take the position that paying a dividend would constitute an unsafe or unsound banking practice.

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Moreover, capital requirements may be modified based upon regulatory rules or by regulatory discretion at any time reflecting a variety of factors including deterioration in asset quality.

							To be well
							capitalized under
					For capital		prompt corrective
		Actual			adequacy purposes		action provisions
		Amount	Ratio		Amount	Ratio	Amount	Ratio
		(dollars in thousands)
As of December 31, 2023
Total capital
(to risk-weighted assets)
The Bancorp, Inc.	$	855,599	16.23%	$	421,660	>=8.00	N/A	N/A
The Bancorp Bank, National Association		941,646	17.92%		420,430	8.00	525,538	>= 10.00%
Tier 1 capital
(to risk-weighted assets)
The Bancorp, Inc.		825,597	15.66%		316,245	>=6.00	N/A	N/A
The Bancorp Bank, National Association		911,644	17.35%		315,323	6.00	420,430	>= 8.00%
Tier 1 capital
(to average assets)
The Bancorp, Inc.		825,597	11.19%		295,246	>=4.00	N/A	N/A
The Bancorp Bank, National Association		911,644	12.37%		294,736	4.00	368,420	>= 5.00%
Common equity tier 1
(to risk-weighted assets)
The Bancorp, Inc.		825,597	15.66%		210,830	>=4.00	N/A	N/A
The Bancorp Bank, National Association		911,644	17.35%		236,492	4.50	341,600	>= 6.50%
As of December 31, 2022
Total capital
(to risk-weighted assets)
The Bancorp, Inc.	$	747,372	13.87%	$	431,203	>=8.00	N/A	N/A
The Bancorp Bank, National Association		829,540	15.42%		430,483	8.00	538,103	>= 10.00%
Tier 1 capital
(to risk-weighted assets)
The Bancorp, Inc.		722,238	13.40%		323,403	>=6.00	N/A	N/A
The Bancorp Bank, National Association		804,406	14.95%		322,862	6.00	430,483	>= 8.00%
Tier 1 capital
(to average assets)
The Bancorp, Inc.		722,238	9.63%		299,913	>=4.00	N/A	N/A
The Bancorp Bank, National Association		804,406	10.73%		299,794	4.00	374,742	>= 5.00%
Common equity tier 1
(to risk-weighted assets)
The Bancorp, Inc.		722,238	13.40%		215,602	>=4.00	N/A	N/A
The Bancorp Bank, National Association		804,406	14.95%		242,147	4.50	349,767	>= 6.50%

As of December 31, 2023, the Company and the Bank met all regulatory requirements for classification as well capitalized under the regulatory framework for prompt corrective action.