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0001295401
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2024-07-25
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): July
25, 2024
The
Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Commission File Number: 000-51018
| Delaware |
|
23-3016517 |
| (State or other jurisdiction of |
|
(IRS Employer |
| incorporation) |
|
Identification No.) |
409
Silverside Road
Wilmington, DE
19809
(Address of principal executive offices, including
zip code)
302-385-5000
(Registrant’s telephone number, including
area code)
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[_] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading
Symbol(s) |
|
Name of each exchange on which registered |
| Common Stock, par value
$1.00 per share |
|
TBBK |
|
Nasdaq
Global Select |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
[_]
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. [_]
Item 2.02. Results
of Operations and Financial Condition
On July 25, 2024, The Bancorp, Inc. (the "Company")
issued a press release regarding its earnings for the three and six months ended June 30, 2024. A copy of this press release is furnished
with this report as Exhibit 99.1.
Item 7.01. Regulation
FD Disclosure.
The Company hereby furnishes the information
set forth in the presentation attached hereto as Exhibit 99.2, which is incorporated herein by reference.
The information in this Current Report,
including the exhibits hereto, are being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report
shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as
amended.
Item 9.01. Financial Statements and Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: July 25, 2024 |
The Bancorp, Inc. |
| |
|
|
| |
By: |
/s/ Paul Frenkiel |
| |
Name: |
Paul Frenkiel |
| |
Title: |
Chief Financial Officer and |
| |
|
Secretary |
Exhibit 99.1
The Bancorp, Inc. Reports Second Quarter Financial
Results
Wilmington, DE – July 25, 2024 – The Bancorp, Inc. ("The
Bancorp" “the Company” or “we” or “our”) (NASDAQ: TBBK), a financial holding company, today reported
financial results for the second quarter of 2024.
Recent Developments
The Company entered into a purchase and sale agreement
for an apartment property acquired by The Bancorp Bank through foreclosure in connection with a real estate bridge lending (“REBL”)
loan. At June 30, 2024, the related $39.4 million balance, comprised the majority of our other real estate owned. The purchaser made an
earnest money deposit of $125,000 in July 2024, with additional required deposits projected to total $500,000 prior to the December 31,
2024, closing deadline. The sales price is expected to cover the Company’s current other real estate owned balance plus the
forecasted cost of improvements to the property. There can be no assurance that the purchaser will consummate the sale of the property,
but if not consummated, earnest money deposits would accrue to the Company.
One of the accounting estimates as described in the notes to our
financial statements, is the allowance for credit losses (“ACL”), which is sensitive to a variety of inherent portfolio
and external factors. REBL may be one of the more sensitive portfolios to such factors. In the second quarter of 2024, REBL loans
classified as either special mention or substandard increased to $177.1 million from $165.2 million at March 31, 2024. Each
classified loan was evaluated for a potential increase in the ACL on the basis of third-party appraisals of related apartment
building collateral. On the basis of “as is” and “as stabilized” loan to values (“LTV’s”),
increases to the allowance for specific loans was not required. The respective weighted average “as is” and “as
stabilized” LTVs were 81% and 69%, based on third party appraisals, the majority of which were performed in 2024. The current
allowance for credit losses for REBL, is primarily based upon historical industry losses for multi-family loans, in the absence of
significant historical losses within the Company’s REBL portfolio. However, as a result of increasing amounts of loans
classified as special mention and substandard, the Company will evaluate potential related sensitivity of that factor for REBL. This
evaluation is inherently subjective as it requires material estimates that may be susceptible to change as more information becomes
available.
The Company has a single $12.6 million par value security
in its investment portfolio, which is the only security remaining from its securitization business, which was exited in 2020. As a result
of appraisals received from the servicer in the second quarter of 2024, the Company placed the security into non-accrual status, notwithstanding
that those appraisals, with lower values than prior appraisals, exceeded principal and accrued interest. The following table reflects
the related non-GAAP second quarter impact.
| |
Net Income (000’s) |
EPS |
| GAAP |
$53,686 |
$1.05 |
| Interest income impact of legacy security transferred to nonaccrual, net of tax |
1,009 |
0.02 |
| As adjusted, non-GAAP |
$54,695 |
$1.07 |
In the second quarter of 2024, the Company initiated
its measured entry into consumer fintech lending, by which the Company makes consumer loans with the marketing and servicing assistance
of its existing and planned new fintech relationships. While the $72.4 million of such loans at June 30, 2024 did not significantly impact
income during the quarter, such lending is expected to meaningfully impact both the balance sheet and income in the future. We expect
that impact will be reflected in a lower cost of funds for related deposits and increased transaction fees.
Highlights
| · | The Bancorp reported net income of $53.7 million, or $1.05 per diluted share (“EPS”), for the quarter ended June
30, 2024, compared to net income of $49.0 million, or $0.89 per diluted share, for the quarter ended June 30, 2023, or an EPS increase
of 18%. While net income increased 10% between these periods, outstanding shares were decreased as a result of common share repurchases
which were significantly increased in 2024. |
| · | Return on assets and equity for the quarter ended June 30, 2024, amounted to 2.8% and 27%, respectively, compared to 2.6% and 27%,
respectively, for the quarter ended June 30, 2023 (all percentages “annualized”). |
| · | Net interest income increased 8% to $93.8 million for the quarter ended June 30, 2024, compared to $87.2 million for the quarter ended
June 30, 2023. |
| · | Net interest margin amounted to 4.97% for the quarter ended June 30, 2024, compared to 4.83% for the quarter ended June 30, 2023,
and 5.15% for the quarter ended March 31, 2024. |
| · | Loans, net of deferred fees and costs were $5.61 billion at June 30, 2024, compared to $5.36 billion at December 31, 2023 and
$5.27 billion at June 30, 2023. Those changes reflected an increase of 3% quarter over linked quarter and an increase of 6% year over
year. |
| · | Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $4.36 billion,
or 13%, to $37.14 billion for the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023. The increase reflects continued
organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH, and other
payment fees increased 13% to $27.8 million for the second quarter of 2024 compared to the second quarter of 2023. |
| · | Small business loans (“SBL”), including those held at fair value, amounted to $964.4 million at June 30, 2024, or
16% higher year over year, and 4% higher quarter over linked quarter, excluding the impact of $28.6 million of loans with related secured
borrowings. |
| · | Direct lease financing balances increased 8% year over year to $711.4 million at June 30, 2024, and 1% over March 31, 2024. |
| · | At June 30, 2024, real estate bridge loans of $2.12 billion had grown 1% compared to a $2.10 billion balance at March 31, 2024, and
16% compared to the June 30, 2023 balance of $1.83 billion. These real estate bridge loans consist entirely of rehabilitation loans for
apartment buildings. |
| · | Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”), and investment advisor
financing loans collectively decreased 13% year over year and increased 1% quarter over linked quarter to $1.80 billion at June 30,
2024. |
| · | The average interest rate on $6.96 billion of average deposits and interest-bearing liabilities during the second quarter of
2024 was 2.50%. Average deposits of $6.72 billion for the second quarter of 2024 increased $213 million over first quarter 2024, while
historically, average deposits have tended to decrease between those periods, as tax refund related balances decline. |
| · | As of June 30, 2024, tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted
assets and common equity-tier 1 to risk-weighted assets ratios were 10.07%, 14.13%, 14.68% and 14.13%, respectively, compared to well-capitalized
minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp Bank, National Association, remains well capitalized under banking regulations. |
| · | Book value per common share at June 30, 2024 was $15.77 compared to $13.74 per common share at June 30,
2023, an increase of 15%. |
| · | The Bancorp repurchased 3,018,405 shares of its common stock at an average cost of $33.13
per share during the quarter ended June 30, 2024. As a result of the increase in the share repurchase in the second quarter of 2024, from
$50.0 million to $100.0 million, outstanding shares at June 30, 2024 amounted to 49.3 million, compared to 53.2 million shares at December
31, 2023, or a reduction of 7.4% |
| · | The Bancorp emphasizes safety and soundness and its balance sheet has a risk profile enhanced by the special nature of the collateral
supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets
below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have
experienced various economic stresses. |
| · | The vast majority of The Bancorp’s funding is comprised of FDIC-insured and/or small balance accounts, which adjust to only
a portion of changes in rates. The Bancorp also has lines of credit with U.S. government sponsored agencies totaling approximately $3.1
billion as of June 30, 2024, as well as access to other forms of liquidity. |
| · | In its real estate bridge lending portfolio, The Bancorp has minimal exposure to non-multifamily commercial real estate such as office
buildings, and instead has a portfolio largely comprised of rehabilitation bridge loans for apartment buildings. These loans generally
have three year terms with two one-year extensions to allow for the rehabilitation work to be completed and rentals stabilized for an
extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders. The rehabilitation
real estate lending portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable
rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While
the macro-economic environment has challenged the multifamily bridge space, the stability of The Bancorp’s rehabilitation bridge
loan portfolio is evidenced by the estimated values of underlying collateral. The Bancorp’s $2.1 billion apartment |
bridge lending portfolio at June 30, 2024 has a weighted average
origination date “as is” LTV of 70%, based on third party appraisals. Further, the weighted average origination date
“as stabilized” LTV, which measures the estimated value of the apartments after the rehabilitation is complete may provide
even greater protection.
| · | As part of the underwriting process, The Bancorp reviews borrowers’ previous rehabilitation experience in addition to overall
financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally
includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation
rental rate assumptions against geo-specific affordability indices, negative news and lien searches, visitations by bank personnel and/or
designated engineers, and other information sources. |
| · | Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows
for early identification of potential issues, and expedited action to address on a timely basis. |
| · | Operations and ongoing loan evaluation are overseen by multiple levels of management, in addition to the real estate bridge lending
team’s experienced professional staff and third-party consultants utilized during the underwriting and asset management process.
This oversight includes a separate loan committee specific to real estate bridge lending, which is comprised of seasoned and experienced
lending professionals who do not directly report to anyone on the real estate bridge lending team. There is also a separate loan
review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses
methodology (“CECL”), all of which similarly do not report to anyone on the real estate bridge lending team. |
| · | SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of
SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50-60% LTV’s. |
| · | Additional details regarding our loan portfolios are included in the related tables in this press release, as is the summarization
of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s
risk profile inherent in its loan portfolios, funding and earnings levels, may present opportunities to further increase shareholder value,
while still prudently maintaining capital levels. Such opportunities include the recently increased planned stock repurchases noted above. |
| · | In the second quarter of 2024, the Company purchased approximately $900 million of fixed rate government sponsored entity backed commercial
and residential mortgage securities of varying maturities, with an approximate 5.11% weighted average yield, and estimated weighted average
lives of eight years, to reduce its exposure to lower levels of net interest income, should the Federal Reserve begin decreasing rates.
Such purchases would also reduce the additional net interest income which will result if the Federal Reserve increases rates. While there
are many variables and limitations to estimating exposure to changes in rates, such purchases and continuing fixed rate loan originations
are projected to reduce such exposure to modest levels. In prior years, The Bancorp deferred adding fixed rate securities when yields
were particularly low, which has afforded the flexibility to benefit from, and secure, more advantageous securities and loan rates. |
“The second quarter, which usually reflects greater tax refund related
runoff, instead showed continued broad based momentum in deposit volumes, and deposit stability,” said Damian Kozlowski CEO and
President of The Bancorp.” Growth trends and the reduction of shares through buybacks should support continued strong EPS growth
in 2024 and beyond. We are lifting our 2024 guidance to $4.35 a share from $4.25 a share without including the impact of $50 million of
quarterly share buybacks. We intend to issue preliminary 2025 guidance in our 3rd quarter press release.”
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference
Call at 8:00 AM ET Friday, July 26, 2024 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or you may dial
1.800.225.9448, conference code BANCORP. You may listen to the replay of the webcast following the live call on The Bancorp's investor
relations website or telephonically until Friday, August 2, 2024, by dialing 1.800.934.5153.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware,
through its subsidiary, The Bancorp Bank, National Association, (or “The Bancorp Bank, N.A.”) provides non-bank financial
companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional
Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge
technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp
has become a leader in the
financial services industry, earning recognition as the #1 issuer of prepaid
cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender,
a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide
commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by
Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, visit https://thebancorp.com/.
Forward-Looking Statements
Statements in this earnings release regarding The Bancorp’s business
which are not historical facts are "forward-looking statements." These statements may be identified by the use of forward-looking
terminology, including but not limited to the words “intend,” “may,” “believe,” “will,”
“expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,”
or similar words, and are based on current expectations about important economic, political, and technological factors, among others,
and are subject to risks and uncertainties, which could cause the actual results, events or achievements to differ materially from those
set forth in or implied by the forward-looking statements and related assumptions. For further discussion of the risks and uncertainties
to which these forward-looking statements may be subject, see The Bancorp’s filings with the Securities and Exchange Commission,
including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
sections of those filings. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake
to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the
date of this press release, except as may be required under applicable law.
The Bancorp, Inc. Contact
Andres Viroslav
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Source: The Bancorp, Inc.
The Bancorp, Inc.
Financial highlights
(unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
Six months ended |
| |
|
June 30, |
|
June 30, |
| Consolidated condensed income statements |
2024 |
|
2023 |
|
2024 |
|
2023 |
| |
(Dollars in thousands, except per share and share data) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
$ |
93,795 |
|
$ |
87,195 |
|
$ |
188,213 |
|
$ |
173,011 |
| Provision for credit losses on loans |
|
1,252 |
|
|
361 |
|
|
3,421 |
|
|
2,264 |
| Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
| ACH, card and other payment processing fees |
|
3,000 |
|
|
2,429 |
|
|
5,964 |
|
|
4,600 |
| Prepaid, debit card and related fees |
|
24,755 |
|
|
22,177 |
|
|
49,041 |
|
|
45,500 |
| Net realized and unrealized gains on commercial |
|
|
|
|
|
|
|
|
|
|
|
| loans, at fair value |
|
503 |
|
|
1,921 |
|
|
1,599 |
|
|
3,646 |
| Leasing related income |
|
1,429 |
|
|
1,511 |
|
|
1,817 |
|
|
3,001 |
| Consumer credit fintech fees |
|
140 |
|
|
— |
|
|
140 |
|
|
— |
| Other non-interest income |
|
895 |
|
|
1,298 |
|
|
1,543 |
|
|
1,578 |
| Total non-interest income |
|
30,722 |
|
|
29,336 |
|
|
60,104 |
|
|
58,325 |
| Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
33,863 |
|
|
33,167 |
|
|
64,143 |
|
|
62,952 |
| Data processing expense |
|
1,423 |
|
|
1,398 |
|
|
2,844 |
|
|
2,719 |
| Legal expense |
|
633 |
|
|
949 |
|
|
1,454 |
|
|
1,907 |
| FDIC insurance |
|
869 |
|
|
472 |
|
|
1,714 |
|
|
1,427 |
| Software |
|
4,637 |
|
|
4,317 |
|
|
9,126 |
|
|
8,554 |
| Other non-interest expense |
|
10,021 |
|
|
9,640 |
|
|
18,877 |
|
|
20,414 |
| Total non-interest expense |
|
51,446 |
|
|
49,943 |
|
|
98,158 |
|
|
97,973 |
| Income before income taxes |
|
71,819 |
|
|
66,227 |
|
|
146,738 |
|
|
131,099 |
| Income tax expense |
|
18,133 |
|
|
17,218 |
|
|
36,623 |
|
|
32,968 |
| Net income |
|
53,686 |
|
|
49,009 |
|
|
110,115 |
|
|
98,131 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income per share - basic |
$ |
1.05 |
|
$ |
0.89 |
|
$ |
2.12 |
|
$ |
1.78 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income per share - diluted |
$ |
1.05 |
|
$ |
0.89 |
|
$ |
2.10 |
|
$ |
1.76 |
| Weighted average shares - basic |
|
50,937,055 |
|
|
54,871,681 |
|
|
51,842,097 |
|
|
55,160,642 |
| Weighted average shares - diluted |
|
51,337,491 |
|
|
55,269,640 |
|
|
52,327,122 |
|
|
55,653,950 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Condensed consolidated balance sheets |
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
| |
2024 (unaudited) |
|
2024 (unaudited) |
|
2023 |
|
2023 (unaudited) |
| |
|
(Dollars in thousands, except share data) |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
$ |
5,741 |
|
$ |
9,105 |
|
$ |
4,820 |
|
$ |
6,496 |
| Interest earning deposits at Federal Reserve Bank |
|
399,853 |
|
|
1,241,363 |
|
|
1,033,270 |
|
|
874,050 |
| Total cash and cash equivalents |
|
405,594 |
|
|
1,250,468 |
|
|
1,038,090 |
|
|
880,546 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss effective December 31, 2023 |
|
1,581,006 |
|
|
718,247 |
|
|
747,534 |
|
|
776,410 |
| Commercial loans, at fair value |
|
265,193 |
|
|
282,998 |
|
|
332,766 |
|
|
396,581 |
| Loans, net of deferred fees and costs |
|
5,605,727 |
|
|
5,459,344 |
|
|
5,361,139 |
|
|
5,267,574 |
| Allowance for credit losses |
|
(28,575) |
|
|
(28,741) |
|
|
(27,378) |
|
|
(23,284) |
| Loans, net |
|
5,577,152 |
|
|
5,430,603 |
|
|
5,333,761 |
|
|
5,244,290 |
| Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock |
|
15,642 |
|
|
15,642 |
|
|
15,591 |
|
|
20,157 |
| Premises and equipment, net |
|
28,038 |
|
|
27,482 |
|
|
27,474 |
|
|
26,408 |
| Accrued interest receivable |
|
43,720 |
|
|
37,861 |
|
|
37,534 |
|
|
34,062 |
| Intangible assets, net |
|
1,452 |
|
|
1,552 |
|
|
1,651 |
|
|
1,850 |
| Other real estate owned |
|
57,861 |
|
|
19,559 |
|
|
16,949 |
|
|
20,952 |
| Deferred tax asset, net |
|
20,556 |
|
|
21,764 |
|
|
21,219 |
|
|
19,215 |
| Other assets |
|
149,187 |
|
|
109,680 |
|
|
133,126 |
|
|
122,435 |
| Total assets |
$ |
8,145,401 |
|
$ |
7,915,856 |
|
$ |
7,705,695 |
|
$ |
7,542,906 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
|
|
| Demand and interest checking |
$ |
7,095,391 |
|
$ |
6,828,159 |
|
$ |
6,630,251 |
|
$ |
6,554,967 |
| Savings and money market |
|
60,297 |
|
|
62,597 |
|
|
50,659 |
|
|
68,084 |
| Total deposits |
|
7,155,688 |
|
|
6,890,756 |
|
|
6,680,910 |
|
|
6,623,051 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Securities sold under agreements to repurchase |
|
— |
|
|
— |
|
|
42 |
|
|
42 |
| Senior debt |
|
96,037 |
|
|
95,948 |
|
|
95,859 |
|
|
95,682 |
| Subordinated debenture |
|
13,401 |
|
|
13,401 |
|
|
13,401 |
|
|
13,401 |
| Other long-term borrowings |
|
38,283 |
|
|
38,407 |
|
|
38,561 |
|
|
9,917 |
| Other liabilities |
|
65,001 |
|
|
60,579 |
|
|
69,641 |
|
|
51,646 |
| Total liabilities |
$ |
7,368,410 |
|
$ |
7,099,091 |
|
$ |
6,898,414 |
|
$ |
6,793,739 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
| Common stock - authorized, 75,000,000 shares of $1.00 par value; 49,267,403 and 54,542,284 shares issued and outstanding at June 30, 2024 and 2023, respectively |
|
49,268 |
|
|
52,253 |
|
|
53,203 |
|
|
54,542 |
| Additional paid-in capital |
|
72,171 |
|
|
166,335 |
|
|
212,431 |
|
|
256,115 |
| Retained earnings |
|
671,730 |
|
|
618,044 |
|
|
561,615 |
|
|
467,450 |
| Accumulated other comprehensive loss |
|
(16,178) |
|
|
(19,867) |
|
|
(19,968) |
|
|
(28,940) |
| Total shareholders' equity |
|
776,991 |
|
|
816,765 |
|
|
807,281 |
|
|
749,167 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
$ |
8,145,401 |
|
$ |
7,915,856 |
|
$ |
7,705,695 |
|
$ |
7,542,906 |
| Average balance sheet and net interest income |
|
Three months ended June 30, 2024 |
|
|
Three months ended June 30, 2023 |
| |
|
(Dollars in thousands; unaudited) |
| |
|
Average |
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
Average |
| Assets: |
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
Rate |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans, net of deferred fees and costs(1) |
$ |
5,749,565 |
|
$ |
114,970 |
|
|
8.00% |
|
$ |
5,730,384 |
|
$ |
107,299 |
|
7.49% |
| Leases-bank qualified(2) |
|
4,621 |
|
|
117 |
|
|
10.13% |
|
|
3,801 |
|
|
100 |
|
10.52% |
| Investment securities-taxable |
|
1,454,393 |
|
|
17,520 |
|
|
4.82% |
|
|
778,100 |
|
|
9,873 |
|
5.08% |
| Investment securities-nontaxable(2) |
|
2,895 |
|
|
50 |
|
|
6.91% |
|
|
3,234 |
|
|
53 |
|
6.56% |
| Interest earning deposits at Federal Reserve Bank |
|
341,863 |
|
|
4,677 |
|
|
5.47% |
|
|
701,057 |
|
|
8,997 |
|
5.13% |
| Net interest earning assets |
|
7,553,337 |
|
|
137,334 |
|
|
7.27% |
|
|
7,216,576 |
|
|
126,322 |
|
7.00% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
(28,568) |
|
|
|
|
|
|
|
|
(23,895) |
|
|
|
|
|
| Other assets |
|
266,061 |
|
|
|
|
|
|
|
|
231,035 |
|
|
|
|
|
| |
$ |
7,790,830 |
|
|
|
|
|
|
|
$ |
7,423,716 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand and interest checking |
$ |
6,657,386 |
|
$ |
39,542 |
|
|
2.38% |
|
$ |
6,399,750 |
|
$ |
36,688 |
|
2.29% |
| Savings and money market |
|
60,212 |
|
|
457 |
|
|
3.04% |
|
|
78,252 |
|
|
728 |
|
3.72% |
| Total deposits |
|
6,717,598 |
|
|
39,999 |
|
|
2.38% |
|
|
6,478,002 |
|
|
37,416 |
|
2.31% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
92,412 |
|
|
1,295 |
|
|
5.61% |
|
|
— |
|
|
— |
|
— |
| Repurchase agreements |
|
— |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
| Long-term borrowings |
|
38,362 |
|
|
685 |
|
|
7.14% |
|
|
9,949 |
|
|
128 |
|
5.15% |
| Subordinated debentures |
|
13,401 |
|
|
291 |
|
|
8.69% |
|
|
13,401 |
|
|
271 |
|
8.09% |
| Senior debt |
|
95,984 |
|
|
1,234 |
|
|
5.14% |
|
|
96,890 |
|
|
1,280 |
|
5.28% |
| Total deposits and liabilities |
|
6,957,757 |
|
|
43,504 |
|
|
2.50% |
|
|
6,598,283 |
|
|
39,095 |
|
2.37% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other liabilities |
|
36,195 |
|
|
|
|
|
|
|
|
88,276 |
|
|
|
|
|
| Total liabilities |
|
6,993,952 |
|
|
|
|
|
|
|
|
6,686,559 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
796,878 |
|
|
|
|
|
|
|
|
737,157 |
|
|
|
|
|
| |
$ |
7,790,830 |
|
|
|
|
|
|
|
$ |
7,423,716 |
|
|
|
|
|
| Net interest income on tax equivalent basis(2) |
|
|
|
$ |
93,830 |
|
|
|
|
|
|
|
$ |
87,227 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax equivalent adjustment |
|
|
|
|
35 |
|
|
|
|
|
|
|
|
32 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
|
$ |
93,795 |
|
|
|
|
|
|
|
$ |
87,195 |
|
|
| Net interest margin(2) |
|
|
|
|
|
|
|
4.97% |
|
|
|
|
|
|
|
4.83% |
| |
| (1) Includes commercial loans, at fair value. All periods include non-accrual loans. |
| (2) Full taxable equivalent basis,
using 21% respective statutory federal tax rates in 2024 and 2023. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average balance sheet and net interest income |
Six months ended June 30, 2024 |
|
Six months ended June 30, 2023 |
| |
|
(Dollars in thousands; unaudited) |
| |
Average |
|
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
| Assets: |
Balance |
|
Interest |
|
|
Rate |
|
Balance |
|
Interest |
|
Rate |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans, net of deferred fees and costs(1) |
$ |
5,733,413 |
|
$ |
229,130 |
|
|
7.99% |
|
$ |
5,858,040 |
|
$ |
213,503 |
|
7.29% |
| Leases-bank qualified(2) |
|
4,683 |
|
|
233 |
|
|
9.95% |
|
|
3,582 |
|
|
169 |
|
9.44% |
| Investment securities-taxable |
|
1,093,996 |
|
|
27,154 |
|
|
4.96% |
|
|
776,089 |
|
|
19,173 |
|
4.94% |
| Investment securities-nontaxable(2) |
|
2,895 |
|
|
100 |
|
|
6.91% |
|
|
3,288 |
|
|
94 |
|
5.72% |
| Interest earning deposits at Federal Reserve Bank |
|
607,968 |
|
|
16,561 |
|
|
5.45% |
|
|
640,864 |
|
|
15,582 |
|
4.86% |
| Net interest earning assets |
|
7,442,955 |
|
|
273,178 |
|
|
7.34% |
|
|
7,281,863 |
|
|
248,521 |
|
6.83% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
(27,862) |
|
|
|
|
|
|
|
|
(23,215) |
|
|
|
|
|
| Other assets |
|
323,244 |
|
|
|
|
|
|
|
|
234,037 |
|
|
|
|
|
| |
$ |
7,738,337 |
|
|
|
|
|
|
|
$ |
7,492,685 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand and interest checking |
$ |
6,553,107 |
|
$ |
78,256 |
|
|
2.39% |
|
$ |
6,401,678 |
|
$ |
69,071 |
|
2.16% |
| Savings and money market |
|
55,591 |
|
|
904 |
|
|
3.25% |
|
|
105,105 |
|
|
1,947 |
|
3.70% |
| Time deposits |
|
— |
|
|
— |
|
|
— |
|
|
41,933 |
|
|
858 |
|
4.09% |
| Total deposits |
|
6,608,698 |
|
|
79,160 |
|
|
2.40% |
|
|
6,548,716 |
|
|
71,876 |
|
2.20% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
46,892 |
|
|
1,314 |
|
|
5.60% |
|
|
10,193 |
|
|
234 |
|
4.59% |
| Repurchase agreements |
|
6 |
|
|
— |
|
|
— |
|
|
41 |
|
|
— |
|
— |
| Long-term borrowings |
|
38,439 |
|
|
1,371 |
|
|
7.13% |
|
|
9,973 |
|
|
254 |
|
5.09% |
| Subordinated debentures |
|
13,401 |
|
|
583 |
|
|
8.70% |
|
|
13,401 |
|
|
532 |
|
7.94% |
| Senior debt |
|
95,939 |
|
|
2,467 |
|
|
5.14% |
|
|
97,985 |
|
|
2,559 |
|
5.22% |
| Total deposits and liabilities |
|
6,803,375 |
|
|
84,895 |
|
|
2.50% |
|
|
6,680,309 |
|
|
75,455 |
|
2.26% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other liabilities |
|
142,826 |
|
|
|
|
|
|
|
|
90,777 |
|
|
|
|
|
| Total liabilities |
|
6,946,201 |
|
|
|
|
|
|
|
|
6,771,086 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
792,136 |
|
|
|
|
|
|
|
|
721,599 |
|
|
|
|
|
| |
$ |
7,738,337 |
|
|
|
|
|
|
|
$ |
7,492,685 |
|
|
|
|
|
| Net interest income on tax equivalent basis(2) |
|
|
|
$ |
188,283 |
|
|
|
|
|
|
|
$ |
173,066 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax equivalent adjustment |
|
|
|
|
70 |
|
|
|
|
|
|
|
|
55 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
|
$ |
188,213 |
|
|
|
|
|
|
|
$ |
173,011 |
|
|
| Net interest margin(2) |
|
|
|
|
|
|
|
5.06% |
|
|
|
|
|
|
|
4.75% |
| |
| (1) Includes commercial loans, at fair value. All periods include non-accrual loans. |
| (2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2024 and 2023. |
| |
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
Six months ended |
|
Year ended |
| |
June 30, |
|
June 30, |
|
December 31, |
| |
2024 (unaudited) |
|
2023 (unaudited) |
|
2023 |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
| Balance in the allowance for credit losses at beginning of period |
$ |
27,378 |
|
$ |
22,374 |
|
$ |
22,374 |
| |
|
|
|
|
|
|
|
|
| Loans charged-off: |
|
|
|
|
|
|
|
|
| SBA non-real estate |
|
417 |
|
|
871 |
|
|
871 |
| SBA commercial mortgage |
|
— |
|
|
— |
|
|
76 |
| Direct lease financing |
|
2,301 |
|
|
1,439 |
|
|
3,666 |
| IBLOC |
|
— |
|
|
— |
|
|
24 |
| Consumer - home equity |
|
10 |
|
|
— |
|
|
— |
| Other loans |
|
6 |
|
|
3 |
|
|
3 |
| Total |
|
2,734 |
|
|
2,313 |
|
|
4,640 |
| |
|
|
|
|
|
|
|
|
| Recoveries: |
|
|
|
|
|
|
|
|
| SBA non-real estate |
|
32 |
|
|
298 |
|
|
475 |
| SBA commercial mortgage |
|
— |
|
|
75 |
|
|
75 |
| Direct lease financing |
|
59 |
|
|
175 |
|
|
330 |
| Consumer - home equity |
|
— |
|
|
49 |
|
|
299 |
| Total |
|
91 |
|
|
597 |
|
|
1,179 |
| Net charge-offs |
|
2,643 |
|
|
1,716 |
|
|
3,461 |
| Provision for credit losses, excluding commitment provision |
|
3,840 |
|
|
2,626 |
|
|
8,465 |
| |
|
|
|
|
|
|
|
|
| Balance in allowance for credit losses at end of period |
$ |
28,575 |
|
$ |
23,284 |
|
$ |
27,378 |
| Net charge-offs/average loans |
|
0.05% |
|
|
0.03% |
|
|
0.07% |
| Net charge-offs/average assets |
|
0.03% |
|
|
0.02% |
|
|
0.05% |
| |
|
| Loan portfolio |
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
| |
2024 (unaudited) |
|
2024 (unaudited) |
|
2023 |
|
2023 (unaudited) |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
| SBL non-real estate |
$ |
171,893 |
|
$ |
140,956 |
|
$ |
137,752 |
|
$ |
117,621 |
| SBL commercial mortgage |
|
647,894 |
|
|
637,926 |
|
|
606,986 |
|
|
515,008 |
| SBL construction |
|
30,881 |
|
|
27,290 |
|
|
22,627 |
|
|
32,471 |
| Small business loans |
|
850,668 |
|
|
806,172 |
|
|
767,365 |
|
|
665,100 |
| Direct lease financing |
|
711,403 |
|
|
702,512 |
|
|
685,657 |
|
|
657,316 |
| SBLOC / IBLOC(1) |
|
1,558,095 |
|
|
1,550,313 |
|
|
1,627,285 |
|
|
1,883,607 |
| Advisor financing(2) |
|
238,831 |
|
|
232,206 |
|
|
221,612 |
|
|
173,376 |
| Real estate bridge loans |
|
2,119,324 |
|
|
2,101,896 |
|
|
1,999,782 |
|
|
1,826,227 |
| Consumer fintech(3) |
|
70,081 |
|
|
— |
|
|
— |
|
|
— |
| Other loans(4) |
|
46,592 |
|
|
56,163 |
|
|
50,638 |
|
|
55,644 |
| |
|
5,594,994 |
|
|
5,449,262 |
|
|
5,352,339 |
|
|
5,261,270 |
| Unamortized loan fees and costs |
|
10,733 |
|
|
10,082 |
|
|
8,800 |
|
|
6,304 |
| Total loans, including unamortized fees and costs |
$ |
5,605,727 |
|
$ |
5,459,344 |
|
$ |
5,361,139 |
|
$ |
5,267,574 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Small business portfolio |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
June 30, |
| |
|
2024 (unaudited) |
|
|
2024 (unaudited) |
|
|
2023 |
|
|
2023 (unaudited) |
| |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
| SBL, including unamortized fees and costs |
$ |
860,226 |
|
$ |
816,151 |
|
$ |
776,867 |
|
$ |
673,667 |
| SBL, included in loans, at fair value |
|
104,146 |
|
|
109,131 |
|
|
119,287 |
|
|
134,131 |
| Total small business loans(5) |
$ |
964,372 |
|
$ |
925,282 |
|
$ |
896,154 |
|
$ |
807,798 |
(1) SBLOC
are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At June
30, 2024 and December 31, 2023, IBLOC loans amounted to $582.8 million and $646.9 million, respectively.
(2) In
2020 The Bancorp began originating loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal
succession. Maximum loan amounts are subject to loan-to-value (“LTV”) ratios of 70% of the business enterprise value based
on a third-party valuation, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket
business liens are obtained as appropriate.
(3) Consumer fintech loans consist primarily
of secured credit card loans.
(4) Includes
demand deposit overdrafts reclassified as loan balances totaling $279,000 and $1.7 million at June 30, 2024 and December 31, 2023, respectively.
Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and are immaterial.
(5) The
SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated.
Small business loans as of June 30, 2024
| |
|
|
|
| |
|
|
|
| |
|
Loan principal |
| |
|
(Dollars in millions) |
| U.S. government guaranteed portion of SBA loans(1) |
|
$ |
400 |
| PPP loans(1) |
|
|
2 |
| Commercial mortgage SBA(2) |
|
|
336 |
| Construction SBA(3) |
|
|
14 |
| Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(4) |
|
|
117 |
| Non-SBA SBLs |
|
|
56 |
| Other(5) |
|
|
28 |
| Total principal |
|
$ |
953 |
| Unamortized fees and costs |
|
|
11 |
| Total SBLs |
|
$ |
964 |
(1) Includes
the portion of SBA 7(a) Program loans and PPP loans which have been guaranteed by the U.S. government, and therefore are assumed to have
no credit risk.
(2) Substantially
all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50-60%, to which The Bancorp
adheres.
(3) Includes
$6 million in 504 Program first mortgages with an origination date LTV of 50-60%, and $8 million in SBA interim loans with an approved
SBA post-construction full takeout/payoff.
(4) Includes
the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program loans are not
made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that
to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the collateral must
be pledged to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7(a) Program loans and 504
Program loans require the personal guaranty of all 20% or greater owners.
(5) Comprised of $29 million of loans sold that do not qualify
for true sale accounting.
Small business loans by type as of June 30, 2024
(Excludes government guaranteed portion of SBA 7(a) Program and PPP loans)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
SBL commercial mortgage(1) |
|
SBL construction(1) |
|
SBL non-real estate |
|
Total |
|
|
% Total |
| |
|
|
(Dollars in millions) |
| Hotels and motels |
|
$ |
76 |
|
$ |
— |
|
$ |
— |
|
$ |
76 |
|
|
15% |
| Funeral homes and funeral services |
|
|
22 |
|
|
— |
|
|
25 |
|
|
47 |
|
|
9% |
| Full-service restaurants |
|
|
29 |
|
|
5 |
|
|
2 |
|
|
36 |
|
|
7% |
| Child day care services |
|
|
23 |
|
|
1 |
|
|
2 |
|
|
26 |
|
|
5% |
| Car washes |
|
|
17 |
|
|
1 |
|
|
— |
|
|
18 |
|
|
3% |
| General line grocery merchant wholesalers |
|
|
17 |
|
|
— |
|
|
— |
|
|
17 |
|
|
3% |
| Homes for the elderly |
|
|
16 |
|
|
— |
|
|
— |
|
|
16 |
|
|
3% |
| Outpatient mental health and substance abuse centers |
|
|
15 |
|
|
— |
|
|
— |
|
|
15 |
|
|
3% |
| Gasoline stations with convenience stores |
|
|
15 |
|
|
— |
|
|
— |
|
|
15 |
|
|
3% |
| Fitness and recreational sports centers |
|
|
8 |
|
|
— |
|
|
2 |
|
|
10 |
|
|
2% |
| Nursing care facilities |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
|
2% |
| Lawyer's office |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
|
2% |
| Limited-service restaurants |
|
|
4 |
|
|
1 |
|
|
3 |
|
|
8 |
|
|
2% |
| Caterers |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
1% |
| All other specialty trade contractors |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
|
1% |
| General warehousing and storage |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
1% |
| Plumbing, heating, and air-conditioning contractors |
|
|
5 |
|
|
— |
|
|
1 |
|
|
6 |
|
|
1% |
| Other accounting services |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
| Offices of real estate agents and brokers |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
| Other miscellaneous durable goods merchant |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
| Other technical and trade schools |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
| Packaged frozen food merchant wholesalers |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
| Lessors of nonresidential buildings (except miniwarehouses) |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
1% |
| All other amusement and recreation industries |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
|
|
1% |
| Other(2) |
|
|
122 |
|
|
10 |
|
|
29 |
|
|
161 |
|
|
30% |
| Total |
|
$ |
441 |
|
$ |
18 |
|
$ |
64 |
|
$ |
523 |
|
|
100% |
(1) Of the SBL
commercial mortgage and SBL construction loans, $109 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans
and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial
excludes $29 million of loans sold that do not qualify for true sale accounting.
(2) Loan
types of less than $4 million are spread over approximately one hundred different business types.
State diversification as of June 30, 2024
(Excludes government guaranteed portion of SBA 7(a) Program loans and PPP
loans)
| |
|
SBL commercial mortgage(1) |
|
SBL construction(1) |
|
SBL non-real estate |
|
Total |
|
|
% Total |
| |
|
|
(Dollars in millions) |
| California |
|
$ |
117 |
|
$ |
3 |
|
$ |
5 |
|
$ |
125 |
|
|
24% |
| Florida |
|
|
76 |
|
|
4 |
|
|
3 |
|
|
83 |
|
|
16% |
| North Carolina |
|
|
38 |
|
|
1 |
|
|
5 |
|
|
44 |
|
|
8% |
| Pennsylvania |
|
|
21 |
|
|
— |
|
|
14 |
|
|
35 |
|
|
7% |
| New York |
|
|
28 |
|
|
2 |
|
|
2 |
|
|
32 |
|
|
6% |
| Texas |
|
|
22 |
|
|
2 |
|
|
6 |
|
|
30 |
|
|
6% |
| Georgia |
|
|
26 |
|
|
1 |
|
|
1 |
|
|
28 |
|
|
5% |
| New Jersey |
|
|
21 |
|
|
3 |
|
|
3 |
|
|
27 |
|
|
5% |
| Other States |
|
|
92 |
|
|
2 |
|
|
25 |
|
|
119 |
|
|
23% |
| Total |
|
$ |
441 |
|
$ |
18 |
|
$ |
64 |
|
$ |
523 |
|
|
100% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Of the SBL commercial
mortgage and SBL construction loans, $109 million represents the total of the non-guaranteed
portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination
date LTVs. SBL Commercial excludes $29 million of loans that do not qualify for true sale accounting.
Top 10 loans as of June 30, 2024
| |
|
|
|
|
|
|
|
| Type(1) |
|
State |
|
SBL commercial mortgage |
|
| |
|
|
(Dollars in millions) |
| General line grocery merchant wholesalers |
|
|
CA |
|
$ |
13 |
|
| Funeral homes and funeral services |
|
|
PA |
|
|
13 |
|
| Outpatient mental health and substance abuse center |
|
|
FL |
|
|
10 |
|
| Funeral homes and funeral services |
|
|
ME |
|
|
9 |
|
| Hotel |
|
|
FL |
|
|
8 |
|
| Lawyer's office |
|
|
CA |
|
|
8 |
|
| Hotel |
|
|
NC |
|
|
7 |
|
| General warehousing and storage |
|
|
PA |
|
|
6 |
|
| Hotel |
|
|
FL |
|
|
6 |
|
| Hotel |
|
|
NY |
|
|
6 |
|
| Total |
|
|
|
|
$ |
86 |
|
(1) The table above does
not include loans to the extent that they are U.S. government guaranteed.
Commercial real estate loans, excluding SBA loans, are as follows including
LTV at origination:
Type as of June 30, 2024
| |
|
|
|
|
|
|
|
|
|
|
| Type |
|
|
# Loans |
|
|
Balance |
|
Weighted average origination date LTV |
|
Weighted average interest rate |
| |
|
|
(Dollars in millions) |
| Real estate bridge loans (multifamily apartment loans recorded at amortized cost)(1) |
|
|
160 |
|
$ |
2,119 |
|
70% |
|
9.19% |
| |
|
|
|
|
|
|
|
|
|
|
| Non-SBA commercial real estate loans, at fair value: |
|
|
|
|
|
|
|
|
|
|
| Multifamily (apartment bridge loans)(1) |
|
|
7 |
|
$ |
116 |
|
76% |
|
9.20% |
| Hospitality (hotels and lodging) |
|
|
2 |
|
|
27 |
|
65% |
|
9.82% |
| Retail |
|
|
2 |
|
|
12 |
|
72% |
|
8.19% |
| Other |
|
|
2 |
|
|
9 |
|
73% |
|
5.10% |
| |
|
|
13 |
|
|
164 |
|
74% |
|
9.18% |
| Fair value adjustment |
|
|
|
|
|
(3) |
|
|
|
|
| Total non-SBA commercial real estate loans, at fair value |
|
|
|
|
|
161 |
|
|
|
|
| Total commercial real estate loans |
|
|
|
|
$ |
2,280 |
|
70% |
|
9.19% |
(1) In the third quarter
of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans
held at fair value were originally intended for sale, but are now being retained on the balance sheet. In addition to “as is”
origination date appraisals, on which the weighted average origination date LTVs are based, third party appraisers also estimated “as
stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased
at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 61%.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| State diversification as of June 30, 2024 |
|
|
15 largest loans as of June 30, 2024 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| State |
|
|
Balance |
|
|
Origination date LTV |
|
|
State |
|
|
|
Balance |
|
Origination date LTV |
| (Dollars in millions) |
|
|
(Dollars in millions) |
| Texas |
|
$ |
778 |
|
|
71% |
|
|
Texas |
|
|
$ |
47 |
|
72% |
| Georgia |
|
|
259 |
|
|
69% |
|
|
Texas |
|
|
|
46 |
|
75% |
| Florida |
|
|
245 |
|
|
69% |
|
|
Tennessee |
|
|
|
40 |
|
72% |
| Michigan |
|
|
132 |
|
|
68% |
|
|
Michigan |
|
|
|
38 |
|
62% |
| Indiana |
|
|
105 |
|
|
70% |
|
|
Texas |
|
|
|
37 |
|
80% |
| Ohio |
|
|
73 |
|
|
67% |
|
|
Texas |
|
|
|
36 |
|
67% |
| New Jersey |
|
|
71 |
|
|
68% |
|
|
Florida |
|
|
|
35 |
|
72% |
| Other States each <$60 million |
|
|
617 |
|
|
71% |
|
|
Pennsylvania |
|
|
|
34 |
|
63% |
| Total |
|
$ |
2,280 |
|
|
70% |
|
|
Indiana |
|
|
|
34 |
|
76% |
| |
|
|
|
|
|
|
|
|
Texas |
|
|
|
33 |
|
62% |
| |
|
|
|
|
|
|
|
|
New Jersey |
|
|
|
32 |
|
62% |
| |
|
|
|
|
|
|
|
|
Michigan |
|
|
|
32 |
|
79% |
| |
|
|
|
|
|
|
|
|
Oklahoma |
|
|
|
31 |
|
78% |
| |
|
|
|
|
|
|
|
|
Texas |
|
|
|
31 |
|
77% |
| |
|
|
|
|
|
|
|
|
Michigan |
|
|
|
29 |
|
66% |
| |
|
|
|
|
|
|
|
|
15 largest commercial real estate loans |
|
|
$ |
535 |
|
71% |
Institutional banking loans outstanding at June 30, 2024
| |
|
|
|
|
| Type |
Principal |
|
% of total |
| |
|
(Dollars in millions) |
|
|
| SBLOC |
$ |
975 |
|
54% |
| IBLOC |
|
583 |
|
32% |
| Advisor financing |
|
239 |
|
14% |
| Total |
$ |
1,797 |
|
100% |
For SBLOC, we generally lend up to 50% of the value of equities and 80%
for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral
value of brokerage accounts collateralizing SBLOCs generally has been less, for two reasons. First, many collateral accounts are “balanced”
and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may
have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection
against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral
value, which lowers the percentage of principal to collateral.
Top 10 SBLOC loans at June 30, 2024
| |
|
|
|
|
| |
Principal amount |
|
% Principal to collateral |
| |
(Dollars in millions) |
| |
$ |
11 |
|
17% |
| |
|
9 |
|
48% |
| |
|
8 |
|
36% |
| |
|
8 |
|
68% |
| |
|
8 |
|
65% |
| |
|
8 |
|
80% |
| |
|
8 |
|
24% |
| |
|
8 |
|
34% |
| |
|
7 |
|
22% |
| |
|
7 |
|
44% |
| Total and weighted average |
$ |
82 |
|
43% |
Insurance backed lines of credit (IBLOC)
IBLOC loans are backed by the cash value of eligible life insurance policies
which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the
insurance companies which carry the policies backing these loans. Currently, fifteen insurance companies have been approved and, as of
April 17, 2024, all were rated A- (Excellent) or better by AM BEST.
Direct lease financing by type as of June 30, 2024
| |
|
|
|
|
| |
|
Principal balance(1) |
|
% Total |
| |
|
(Dollars in millions) |
|
|
| Government agencies and public institutions(2) |
$ |
129 |
|
18% |
| Construction |
|
111 |
|
16% |
| Waste management and remediation services |
|
98 |
|
14% |
| Real estate and rental and leasing |
|
82 |
|
12% |
| Health care and social assistance |
|
28 |
|
4% |
| Other services (except public administration) |
|
23 |
|
3% |
| Professional, scientific, and technical services |
|
23 |
|
3% |
| General freight trucking |
|
21 |
|
3% |
| Finance and insurance |
|
13 |
|
2% |
| Transit and other transportation |
|
13 |
|
2% |
| Wholesale trade |
|
10 |
|
1% |
| Educational services |
|
7 |
|
1% |
| Other |
|
153 |
|
21% |
| Total |
$ |
711 |
|
100% |
(1) Of
the total $711 million of direct lease financing, $642 million consisted of vehicle leases with the remaining balance consisting of equipment
leases.
(2) Includes
public universities and school districts.
Direct lease financing by state as of June 30, 2024
| |
|
|
|
|
| State |
|
Principal balance |
|
% Total |
| |
|
(Dollars in millions) |
|
|
| Florida |
$ |
106 |
|
15% |
| New York |
|
66 |
|
9% |
| Utah |
|
60 |
|
8% |
| California |
|
52 |
|
7% |
| Pennsylvania |
|
43 |
|
6% |
| Connecticut |
|
41 |
|
6% |
| New Jersey |
|
39 |
|
5% |
| North Carolina |
|
36 |
|
5% |
| Maryland |
|
34 |
|
5% |
| Texas |
|
28 |
|
4% |
| Idaho |
|
18 |
|
3% |
| Washington |
|
15 |
|
2% |
| Georgia |
|
15 |
|
2% |
| Ohio |
|
13 |
|
2% |
| Alabama |
|
12 |
|
2% |
| Other States |
|
133 |
|
19% |
| Total |
$ |
711 |
|
100% |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 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 June 30, 2024 |
|
|
|
|
|
|
|
| The Bancorp, Inc. |
10.07% |
|
14.13% |
|
14.68% |
|
14.13% |
| The Bancorp Bank, National Association |
11.21% |
|
15.69% |
|
16.24% |
|
15.69% |
| "Well capitalized" institution (under federal regulations-Basel III) |
5.00% |
|
8.00% |
|
10.00% |
|
6.50% |
| |
|
|
|
|
|
|
|
| As of December 31, 2023 |
|
|
|
|
|
|
|
| The Bancorp, Inc. |
11.19% |
|
15.66% |
|
16.23% |
|
15.66% |
| The Bancorp Bank, National Association |
12.37% |
|
17.35% |
|
17.92% |
|
17.35% |
| "Well capitalized" institution (under federal regulations-Basel III) |
5.00% |
|
8.00% |
|
10.00% |
|
6.50% |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three months ended |
|
Six months ended |
| |
June 30, |
|
June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| Selected operating ratios |
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets(1) |
|
2.77% |
|
|
2.65% |
|
|
2.86% |
|
|
2.64% |
| Return on average equity(1) |
|
27.10% |
|
|
26.67% |
|
|
27.95% |
|
|
27.42% |
| Net interest margin |
|
4.97% |
|
|
4.83% |
|
|
5.06% |
|
|
4.75% |
(1) Annualized
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share table |
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
|
| |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
| Book value per share |
$ |
15.77 |
|
$ |
15.63 |
|
$ |
15.17 |
|
$ |
13.74 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan delinquency and other real estate owned |
June 30, 2024 |
| |
30-59 days
past due |
|
60-89 days
past due |
|
90+ days
still accruing |
|
Non-accrual |
|
Total
past due |
|
Current |
|
Total
loans |
| SBL non-real estate |
$ |
78 |
|
$ |
311 |
|
$ |
764 |
|
$ |
2,448 |
|
$ |
3,601 |
|
$ |
168,292 |
|
$ |
171,893 |
| SBL commercial mortgage |
|
— |
|
|
336 |
|
|
— |
|
|
5,211 |
|
|
5,547 |
|
|
642,347 |
|
|
647,894 |
| SBL construction |
|
— |
|
|
— |
|
|
— |
|
|
3,385 |
|
|
3,385 |
|
|
27,496 |
|
|
30,881 |
| Direct lease financing |
|
4,575 |
|
|
4,415 |
|
|
2,224 |
|
|
3,870 |
|
|
15,084 |
|
|
696,319 |
|
|
711,403 |
| SBLOC / IBLOC |
|
12,448 |
|
|
2,101 |
|
|
1,284 |
|
|
— |
|
|
15,833 |
|
|
1,542,262 |
|
|
1,558,095 |
| Advisor financing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
238,831 |
|
|
238,831 |
| Real estate bridge loans(1) |
|
— |
|
|
12,300 |
|
|
— |
|
|
— |
|
|
12,300 |
|
|
2,107,024 |
|
|
2,119,324 |
| Consumer fintech |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
70,081 |
|
|
70,081 |
| Other loans |
|
96 |
|
|
— |
|
|
4 |
|
|
— |
|
|
100 |
|
|
46,492 |
|
|
46,592 |
| Unamortized loan fees and costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10,733 |
|
|
10,733 |
| |
$ |
17,197 |
|
$ |
19,463 |
|
$ |
4,276 |
|
$ |
14,914 |
|
$ |
55,850 |
|
$ |
5,549,877 |
|
$ |
5,605,727 |
(1) The $12.3 million shown in the 60-89 days past due column
for real estate bridge loans is collateralized by apartment building property with 72% and 56% “as is” and “as stabilized”
LTVs, respectively, based upon a May 2024 appraisal. “As stabilized” LTVs represent
additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. See footnote (2)
to the tables directly below for additional information on this loan.
Other real estate owned year to date activity
| |
|
|
| |
June 30, 2024 |
| Beginning balance |
$ |
16,949 |
| Transfer from loans, net |
|
40,032 |
| Transfer from commercial loans, at fair value |
|
880 |
| Ending balance |
$ |
57,861 |
| |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
June 30, |
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
| |
|
(Dollars in thousands) |
| Asset quality ratios: |
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total loans(1) |
|
0.34% |
|
|
1.05% |
|
|
0.25% |
|
|
0.28% |
| Nonperforming assets to total assets(1) |
|
0.95% |
|
|
0.97% |
|
|
0.39% |
|
|
0.47% |
| Allowance for credit losses to total loans |
|
0.51% |
|
|
0.53% |
|
|
0.51% |
|
|
0.44% |
(1) In the first quarter of 2024, a $39.4 million apartment
building rehabilitation bridge loan was transferred to nonaccrual status. On April 2, 2024, the same loan was transferred from nonaccrual
status to other real estate owned. We intend to complete the improvements, which have already begun, on the underlying apartment building.
During the time that improvements are being completed, the Company intends to have a property manager lease improved units as they become
available, prior to the sale of the property. The $39.4 million loan balance compares to a September 2023 third party “as is”
appraisal of $47.8 million, or an 82% “as is” LTV, with additional potential collateral value as construction progresses,
and units are re-leased at stabilized rental rates.
(2) Borrowers for a $12.3 million apartment property real estate
bridge loan which had a six month payment deferral granted in the fourth quarter of 2023 have not resumed payments, and are reflected
in the 60-89 days past due column in the table above. The related “as is” and “as stabilized” LTVs based on a
May 2024 appraisal were respectively 72% and 56%. The “as stabilized” loan to value
measures the apartment property’s value after renovations have been completed and units have generally been released. The Company
originated a new loan with a new borrower for a previously reported $9.5 million REBL loan that was 60 to 89 days delinquent at March
31, 2024. The new borrower has greater financial capacity to complete the related project and negotiated three quarters of payment deferrals
and a lower rate. The “as stabilized” LTV is approximately 85% after considering additional estimated future fundings to complete
renovations. The aforementioned LTVs are based on third party appraisals performed within the past year.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross dollar volume (GDV)(1) |
Three months ended |
| |
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
| |
2024 |
|
2024 |
|
2023 |
|
2023 |
| |
|
(Dollars in thousands) |
| Prepaid and debit card GDV |
$ |
37,139,200 |
|
$ |
37,943,338 |
|
$ |
33,292,350 |
|
$ |
32,776,154 |
(1) Gross dollar volume represents the total dollar amount spent
on prepaid and debit cards issued by The Bancorp Bank, N.A.
| Business line quarterly summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter ended June 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Balances |
|
|
|
|
|
| |
|
|
|
|
|
% Growth |
|
|
|
|
|
| Major business lines |
|
Average approximate rates(1) |
|
Balances(2) |
|
Year over year |
|
Linked quarter annualized |
|
|
|
|
|
| Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Institutional banking(3) |
|
6.8% |
|
$ 1,797 |
|
(13%) |
|
3% |
|
|
|
|
|
| Small business lending(4) |
|
7.4% |
|
964 |
|
16% |
|
17% |
|
|
|
|
|
| Leasing |
|
8.0% |
|
711 |
|
8% |
|
5% |
|
|
|
|
|
| Commercial real estate (non-SBA loans, at fair value) |
|
9.0% |
|
161 |
|
nm |
|
nm |
|
|
|
|
|
| Real estate bridge loans (recorded at book value) |
|
9.2% |
|
2,119 |
|
16% |
|
3% |
|
|
|
|
|
| Weighted average yield |
|
8.0% |
|
$ 5,752 |
|
|
|
|
|
Non-interest income(5) |
| |
|
|
|
|
|
|
|
|
|
|
|
% Growth |
| Deposits: Fintech Solutions group |
|
|
|
|
|
|
|
|
|
Current quarter |
|
Year over year |
|
| Prepaid and debit card issuance, and other payments |
2.4% |
|
$ 6,441 |
|
8% |
|
nm |
|
$ 27.8 |
|
13% |
|
(1) Average rates are for the three months ended June 30, 2024.
(2) Loan and deposit categories are based on period-end and
average quarterly balances, respectively.
(3) Institutional Banking loans are comprised of security backed
lines of credit (SBLOC), collateralized by marketable securities, insurance backed lines of credit (IBLOC), collateralized by the cash
surrender value of eligible life insurance policies, and investment advisor financing.
(4) Small Business Lending is substantially comprised of SBA
loans. Growth rates exclude $29 million of loans that do not qualify for true sale accounting.
(5) Growth rate excludes Q1 2023 adjustments of $600,000 of
fees related to a prior period and a $1.4 million termination fee from a client which formed its own bank.
Summary of credit lines available
Notwithstanding that the vast majority of The Bancorp’s funding is
comprised of insured and small balance accounts, The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows.
The Bancorp also has access to other substantial sources of liquidity.
| |
|
|
| |
June 30, 2024 |
| |
|
(Dollars in thousands) |
| Federal Reserve Bank |
$ |
1,936,240 |
| Federal Home Loan Bank |
|
1,116,765 |
| Total lines of credit available |
$ |
3,053,005 |
Estimated insured vs uninsured deposits
The vast majority of The Bancorp’s deposits are insured and low balance
and accordingly do not constitute the liquidity risk experienced by certain institutions. Accordingly, the deposit base is comprised as
follows.
| |
|
|
| |
June 30, 2024 |
| Insured |
|
93% |
| Low balance accounts |
|
4% |
| Other uninsured |
|
3% |
| Total deposits |
|
100% |
Calculation of efficiency ratio(1)
| |
|
|
|
|
|
|
|
|
| |
Three months ended |
|
Year ended |
| |
June 30, |
|
June 30, |
|
December 31, |
| |
2024 |
|
2023 |
|
2023 |
| |
(Dollars in thousands) |
| Net interest income |
$ |
93,795 |
|
$ |
87,195 |
|
$ |
354,052 |
| Non-interest income |
|
30,722 |
|
|
29,336 |
|
|
112,094 |
| Total revenue |
$ |
124,517 |
|
$ |
116,531 |
|
$ |
466,146 |
| Non-interest expense |
$ |
51,446 |
|
$ |
49,943 |
|
$ |
191,042 |
| |
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
41% |
|
|
43% |
|
|
41% |
(1) The efficiency ratio is calculated by dividing GAAP total
non-interest expense by the total of GAAP net interest income and non-interest income. This ratio compares revenues generated with
the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
Exhibit 99.2
THE BANCORP INVESTOR PRESENTATION JULY 2024
2 DISCLOSURES Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) business that are not historical facts or concern earnings guidance or the 2030 plan are “forward - looking statements”. These statements may be identified by the use of forward - looking terminology, including the words “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “intend,” “plan," or similar words, and are based on current expectations about important business, economic, political, and technological factors, among others, and are subject to risks and uncertainties, which could cause the actual results, events or achievements to differ materially from those set forth in or implied by the forward - looking statements and related assumptions. 2024 guidance and long - term financial targets in this presentation assume achievement of management’s credit roadmap growth goals as described herein and other growth goals. If such assumptions are not met, guidance and long - term financial targets might not be reached. For further discussion of these risks and uncertainties, see the “risk factors” sections contained, in The Bancorp’s Annual Report on Form 10 - K for the year ended December 31, 2023, and in its other public filings with the SEC. In addition, these forward - looking statements are based upon assumptions with respect to future strategies and decisions that are subject to change. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results. The forward - looking statements speak only as of the date of this presentation. The Bancorp does not undertake to publicly revise or update forward - looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law. This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), such as those identified in the Appendix. As a result, such information may not conform to SEC Regulation S - X and may be adjusted and presented differently in filings with the SEC. Any non - GAAP financial measures used in this presentation are in addition to, and should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. Non - GAAP financial measures are subject to significant inherent limitations. The non - GAAP measures presented herein may not be comparable to similar non - GAAP measures presented by other companies. This information may be presented differently in future filings by The Bancorp with the SEC. This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third - party service providers. The Bancorp makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of such information. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp’s website at www.thebancorp.com . This presentation is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Neither the SEC nor any other regulatory body has approved or disapproved of the securities of The Bancorp or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. FORWARD LOOKING STATEMENTS & OTHER DISCLOSURES
3 FINANCIAL PERFORMANCE DELIVERING STRONG FINANCIAL PERFORMANCE Q2 YTD 2024 2023 2022 2021 7% 31% 12% 13% REVENUE GROWTH 1 GROWTH 28% 26% 19% 18% ROE PROFITABILITY 2.9% 2.6% 1.8% 1.7% ROA 40% 41% 48% 53% EFFICIENCY RATIO 1 SCALABLE PLATFORM KEY FINANCIAL METRICS 1 Please see Appendix slide 31 for reconciliation of revenue growth over comparable prior year period and efficiency ratio. Increasing levels of profitability Platform delivering operating leverage Capitalized on interest rate environment SUSTAINED PERFORMANCE The Bancorp is continuing to deliver high quality financial performance
4 EARNINGS GUIDANCE DELIVERING STRONG FINANCIAL PERFORMANCE GUIDANCE Our updated 2024 guidance 1 is $4.35 per share as we maintain strong momentum across our platform 1 2024 guidance assumes achievement of management’s strategic goals as described elsewhere in this presentation and other budge tar y goals. $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 2021 2022 2023 2024 Guidance EARNINGS PER SHARE $1.88 $2.27 $3.49 $4.35 Updated to $4.35 in Q2 2024
5 THE BANCORP CORE BUSINESS MODEL FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND ATTRACTS STABLE, LOWER - COST DEPOSITS DEPLOYED INTO ASSETS IN SPECIALIZED MARKETS THE BANCORP BUSINESS MODEL FINTECH SOLUTIONS Enabling fintech companies by providing card sponsorship, facilitating other payments activities and fintech lending COMMERCIAL LENDING Small business lending and commercial fleet leasing + INSTITUTIONAL BANKING Lending solutions for wealth management firms REAL ESTATE BRIDGE LENDING Focus on workforce housing in select markets PAYMENTS Market - leading payment activities generate stable, non - interest income and lower - cost deposits LENDING Niche lending in specialized categories and Fintech lending
6 FINTECH PARTNER BANK FINTECH LEADERSHIP PAYMENT NETWORKS FACILITATE payments between parties via the card networks. PROGRAM MANAGERS CLIENT FACING platforms deliver highly scalable banking solutions to customers with emphasis on customer acquisition and technology. REGULATORS OVERSIGHT of domestic banking and payments activities. PROCESSORS BACK - OFFICE support for program managers providing record keeping and core platform services. FINTECH ECOSYSTEM Enabling fintech companies by providing industry leading card issuing, payments facilitation and regulatory expertise to a diversified portfolio of clients
7 SPECIALIZED LENDING SPECIALIZED LENDING BUSINESS LINES LENDING BUSINESSES Core lending businesses are comprised of our specialized lending activities Institutional Banking $1.8B Emphasize core business lines and add related products and enter adjacent markets Remain positioned to capitalize on credit sponsorship opportunities Maintain balance sheet flexibility as we approach $10B in total assets Real Estate Bridge Lending $2.3B Small Business $1.0B Leasing $ 0.7B CORE LENDING BUSINESSES AS OF Q2 2024 TOTAL $ 5.8 B Established Operating Platform Scalable technology, operations and sales platforms across lending business to support sustained growth STRATEGIC OUTLOOK
8 2030 STRATEGY OUR 2030 STRATEGY OVERVIEW Our new 2030 strategy encompasses previous goals outlined in Vison 700 while adding new fintech opportunities Build on our strengths Create new opportunities Sustain revenue growth Enhance profitability Averting substantial event - risk Keeping the balance sheet under $10B Avoiding potential regulatory issues + + + + EVALUATION FRAMEWORK BEING MINDFUL OF: How can we build on our leading fintech partner bank model and specialized lending businesses?
2030 STRATEGY *Without competing with our partners 1 PROVIDE NEW FINTECH SERVICES 3 SUPPORT FINTECH LENDING 2 MONETIZE CORE COMPETENCIES Our 2030 plan comprises new opportunities identified across various strategic pathways: 1 Long term guidance assumes achievement of management’s long - term strategic plan as described elsewhere in this presentation, imp act of realized and expected interest rate movement, and other budgetary goals. TOTAL REVENUE >$1 Billion ROE >40% ROA >4.0% LEVERAGE > 10% LONG - TERM FINANCIAL TARGETS 1 • Niche program management • Embedded Finance • Regulatory services • Middle - office technologies • Diversified holdings across many programs with significant distribution of assets APEX 2030
FINTECH SOLUTIONS: DEPOSIT & FEE GENERATION
11 FINTECH SOLUTIONS: FEE & DEPOSIT GENERATING ACTIVITIES ENABLING LEADING FINTECH COMPANIES DEBIT PROGRAM MANAGERS (CHALLENGER BANKS) PREPAID/STORED VALUE PROGRAM MANAGERS • Provides physical and virtual card issuing • Maintains deposit balances on cards • Facilitates payments into the card networks as the sponsoring bank • Established risk and compliance function is highly scalable #6 Debit Issuing Bank 2023 2 #1 Prepaid Issuing Bank 2023 2 • Government • Employer Benefits • Corporate Disbursements • Payroll • Gift 1 Includes non - interest income from prepaid and debit card issuance plus ACH, card and other payments processing fees. 2 Nilson Report, April 2024. % TOTAL BANK REVENUE Q2 YTD 2024 1 22 % GROSS DOLLAR VOLUME GROWTH Q2 2024 VS Q2 2023 13 %
12 FINTECH SOLUTIONS : ESTABLISHED OPERATING PLATFORM SCALABLE PLATFORM ESTABLISHED OPERATING PLATFORM • Infrastructure in place to support significant growth • Long - term relationships with multiple processors enable efficient onboarding • Continued technology investments without changes to expense base REGULATORY EXPERTISE • Financial Crimes Risk Management program with deep experience across payments ecosystem • Customized risk and compliance tools specific to the Fintech Industry OTHER PAYMENTS OFFERINGS • Rapid Funds instant payment transfer product • Potential to capitalize on credit - linked payments opportunities • Additional payments services include ACH processing for third parties INNOVATIVE SOLUTIONS Our platform supports a wide variety of strategic fintech partners through our established processor relationships, regulatory expertise, and suite of other payments products
13 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR DEPOSIT GROWTH FROM FINTECH BUSINESS HIGHLIGHTS • Stable, lower - cost deposit base anchored by multi - year, contractual relationships in our Fintech Solutions business • Fintech Solutions growth driven by increased transactional volume due to electronic banking migration and the addition of new partners $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2020 2021 2022 2023 Q2 2024 AVERAGE DEPOSITS BY PERIOD ($ BILLIONS) Fintech Solutions Group (Prepaid and Debit Card Issuance and other payments) Institutional Banking (checking and money market for higher net worth individuals) Other (Includes time deposits and other legacy deposit programs) 2.38% 2.32% 0.82% 0.10% 0.25% COST OF DEPOSITS $5.2 $5.7 $6.3 $6.4 $6.7
14 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR STABLE DEPOSITS & SIGNIFICANT BALANCE SHEET LIQUIDITY STRONG POSITIONING Our deposit base is primarily comprised of granular, small balance, FDIC insured accounts and we maintain significant borrowing capacity on our credit lines ESTIMATED INSURED VS OTHER UNINSURED DEPOSITS June 30, 2024 93% Insured 4% Low balance accounts 3% Other uninsured 100% Total deposits SUMMARY OF CREDIT LINES AVAILABLE June 30, 2024 (Dollars in millions) 1,936 $ Federal Reserve Bank 1,117 Federal Home Loan Bank 3,053 $ Total lines of credit available 93% INSURED DEPOSITS Primarily consist of low balance accounts
LOANS, LEASES & SUPPORTING COLLATERAL
16 LOANS & LEASES STRATEGIC OUTLOOK Optimize balance sheet and r emain positioned to capitalize on credit sponsorship opportunities KEY CONSIDERATIONS FOR LENDING GROWTH MANAGE CREDIT RISK TO DESIRED LEVELS OPTIMIZE NET INTEREST MARGIN AND MONITOR INTEREST RATE SENSITIVITY MANAGE REAL ESTATE EXPOSURE TO CAPITAL LEVELS MAINTAIN FLEXIBILITY AS WE APPROACH $10B TOTAL ASSETS Building an asset mix that drives earnings and profitability while maintaining desired credit and interest rate risk characteristics
17 LOANS & LEASES LOAN PORTFOLIO OVERVIEW % OF TOTAL PORTFOLIO 06/30/2024 PRINCIPAL BALANCE ($ MILLIONS) BALANCE SHEET CATEGORY BUSINESS LINE 38% $ 2,235 Multifamily - commercial real estate (A) Real Estate Bridge Lending <1% 27 Hospitality - commercial real estate <1% 12 Retail - commercial real estate <1% 9 Other 39% 2,283 Total 17% 975 Securities - backed lines of credit (SBLOC) ( B) Institutional Banking 10% 583 Insurance - backed lines of credit (IBLOC) (C) 4% 239 Advisor Financing 31% 1,797 Total 7% 400 U.S. government guaranteed portion of SBA loans ( D) Small Business Lending <1% 2 Pay check Protection Program loans (PPP) ( D) 6% 336 Commercial mortgage SBA ( E) 2% 117 Non - guaranteed portion of U.S. govn’t guaranteed 7(a) loans <1% 56 Non - SBA small business loans <1% 14 Construction SBA <1% 28 Other 16% 953 Total 12% 711 Leasing ( F) Commercial Fleet Leasing 1% 72 Consumer fintech ( G) Fintech Solutions Group 1% 44 Other Other 100% $ 5,860 Total principal LOAN COLLATERAL VALUES SUPPORTED BY: A. Comprised of workforce apartment buildings in carefully selected areas B. SBLOC loans are backed by marketable securities with nominal credit losses C. IBLOC loans are backed by the cash value of life insurance policies with nominal credit losses D. Portion of small business loans fully guaranteed by the U.S. government E. 50% - 60% loan to value ratios at origination F. Recourse to vehicles G. Primarily consists of secured credit card loans
18 LOANS & LEASES: REAL ESTATE BRIDGE LENDING COMMERCIAL REAL ESTATE BRIDGE LENDING % TOTAL WEIGHTED AVG INTEREST RATE ORIGINATION DATE LTV 1 BALANCE # LOANS TYPE 98% 9.2% 70% $ 2,235 167 Multifamily (apartments) 1% 9.8% 65% 27 2 Hospitality (hotels and lodging) <1% 8.2% 72% 12 2 Retail <1% 5.1% 73% 9 2 Other 100% 9.2% 70% $ 2,283 173 Total COMMERCIAL REAL ESTATE LOANS BY TYPE ($MILLIONS) 06/30/2024 $2.2B PORTFOLIO LOANS ORIGINATED SINCE Q3 2021 RESUMPTION (ALL APARTMENT BUILDINGS) BUSINESS OVERVIEW: • Resumed floating rate bridge lending business in Q3 2021 • Lending focus on workforce apartment buildings in carefully selected markets Real Estate Bridge Lending • Vast majority of loans are apartment buildings including all the top 30 exposures • Loans originated prior to Q3 2021 will continue to be accounted for at fair value • Loans originated in 2021 and after will be held for investment and use the Current Expected Credit Loss (CECL) methodology PORTFOLIO ATTRIBUTES 1 In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third part y a ppraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are released at stabilized rental rates. The we igh ted average origination date “as stabilized” LTV was estimated at 61%.
19 LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING BUSINESS OVERVIEW: • Automated loan application platform, Talea, provides industry - leading speed and delivery • Securities - backed lines of credit provide fast and flexible liquidity for investment portfolios • Insurance - backed lines of credit provide fast and flexible borrowing against the cash value of life insurance • Advisor Finance product provides capital to transitioning financial advisors to facilitate M&A, debt restructuring, and the development of succession plans • Deposit accounts for wealth management clients • Nominal historical credit losses STRATEGIC OUTLOOK: • Regain momentum across SBLOC, IBLOC and Advisor Finance products • Evaluate new lending opportunities in adjacent markets • Market dynamics support business model: − Advisors shifting from large broker/dealers to independent platforms − Sector shift to fee - based accounts − Emergence of new wealth management providers LENDING AND BANKING SERVICES FOR WEALTH MANAGERS The Bancorp’s business model allows us to build banking solutions to “spec” without competing directly with our partner firms. We do not have any associated asset managers, proprietary advisory programs, or related programs. Our singular focus is to help our partner firms stay competitive in the marketplace and to grow and retain assets ALWAYS A PARTNER, NEVER A COMPETITOR $ 1.8 B Q2 2024 PORTFOLIO SIZE 6.8 % 06/30/2024 EST. YIELD
20 LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING % OF PORTFOLIO PRINCIPAL BALANCE LOAN TYPE 54% $ 975 Securities - backed lines of credit (SBLOC) 33% 583 Insurance - backed lines of credit (IBLOC) 14% 239 Advisor Financing 100% $ 1,797 Total INSTITUTIONAL BANKING LOANS ($MILLIONS) 06/30/2024 % PRINCIPAL TO COLLATERAL PRINCIPAL BALANCE 17% $ 11 48% 9 36% 8 68% 8 65% 8 80% 8 24% 8 34% 8 22% 7 44% 7 43% $ 82 Total TOP 10 SBLOC LOANS ($MILLIONS) 06/30/2024 SECURITIES - BACKED LINES OF CREDIT • Nominal historical credit losses • Underwriting standards of generally 50% to equities and 80% or more to fixed income securities INSURANCE - BACKED LINES OF CREDIT • Nominal historical credit losses • Loans backed by the cash value of insurance policies PORTFOLIO ATTRIBUTES
21 LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING $ 953 B Q2 2024 PORTFOLIO SIZE 7.4 % 06/30/2024 EST. YIELD BUSINESS OVERVIEW: • Established a distinct platform within the fragmented SBA market − National portfolio approach allows pricing and client flexibility − Solid credit performance demonstrated over time − Client segment strategy tailored by market STRATEGIC OUTLOOK: • Continue delivering growth within existing small business lending platform while entering new verticals and growing the SBAlliance ® • SBAlliance ® program provides lending support to banks and financial institutions who need SBA lending capabilities through products such as: − Wholesale loan purchases − Vertical focus with expansion of funeral home lending program SBA AND OTHER SMALL BUSINESS LENDING ~$ 800 K AVERAGE 7(a) LOAN SIZE
22 LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE 1 ($MILLIONS) 06/30/2024 SMALL BUSINESS LOANS BY STATE 1 ($MILLIONS) 06/30/2024 TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE STATE $ 125 $ 5 $ 3 $ 117 California 83 3 4 76 Florida 44 5 1 38 North Carolina 35 14 - 21 Pennsylvania 32 2 2 28 New York 30 6 2 22 Texas 28 1 1 26 Georgia 27 3 3 21 New Jersey 119 25 2 92 Other States $ 523 $ 64 $ 18 $ 441 Total TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE TYPE $ 76 $ - $ - $ 76 Hotels (except Casino Hotels) and Motels 47 25 - 22 Funeral Homes and Funeral Services 36 2 5 29 Full - Service Restaurants 26 2 1 23 Child Day Care Services 18 - 1 17 Car Washes 17 - - 17 General Line Grocery Merchant Wholesalers 16 - - 16 Homes for the Elderly 15 - - 15 Outpatient Mental Health and Substance Abuse Centers 15 - - 15 Gasoline Stations with Convenience Stores 10 2 - 8 Fitness and Recreational Sports Centers 9 - - 9 Nursing Care Facilities 9 - - 9 Lawyer’s Offices 8 3 1 4 Limited - Service Restaurants 7 - - 7 Caterers 214 30 10 174 Other $ 523 $ 64 $ 18 $ 441 Total 1 Excludes the government guaranteed portion of SBA 7(a) loans and PPP loans. TYPE DISTRIBUTION • Diverse product mix • Commercial mortgage and construction are generally originated with 50% - 60% LTV’s GEOGRAPHIC DISTRIBUTION • Diverse geographic mix • Largest concentration in California representing 24% of total PORTFOLIO ATTRIBUTES
23 LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING BUSINESS OVERVIEW: • Niche provider of vehicle leasing solutions − Focus on smaller fleets (less than 150 vehicles) − Direct lessor (The Bancorp Bank, N.A. sources opportunities directly and provides value - add services such as outfitting police cars) − Historical acquisitions of small leasing companies have contributed to growth • Mix of commercial (~85%), government agencies and educational institutions (~15%) STRATEGIC OUTLOOK: • Continue enhancing platform and growing balances − Enhanced sales process and support functions − Pursuing technology enhancements to scale business with efficiency • Constantly evaluating organic and inorganic growth opportunities in the vehicle space FLEET LEASING SOLUTIONS $ 711 M Q2 2024 PORTFOLIO SIZE 8.0 % 06/30/2024 EST. YIELD
24 LOANS & LEASES: COMMERCIAL FLEET LEASING PORTFOLIO COMMERCIAL FLEET LEASING • Largest concentration is construction and government sectors • Of the $711M total portfolio, $642M are vehicle leases with the remaining $69M comprised of equipment leases PORTFOLIO ATTRIBUTES TOTAL BALANCE TYPE 18% $ 129 Government agencies and public institutions** 16% 111 Construction 14% 98 Waste management and remediation services 12% 82 Real estate and rental and leasing 4% 28 Health care and social assistance 3% 23 Other services (except public administration) 3% 23 Professional, Scientific, and Technical Services 3% 21 General freight trucking 2% 13 Finance and insurance 2% 13 Transit and other transportation 1% 10 Wholesale trade 1% 7 Educational services 21% 153 Other and non - classified 100% $ 711 Total DIRECT LEASE FINANCING BY STATE ($MILLIONS) 06/30/2024 TOTAL BALANCE STATE 15% $ 106 Florida 9% 66 New York 8% 60 Utah 7% 52 California 6% 43 Pennsylvania 6% 41 Connecticut 6% 39 New Jersey 5% 36 North Carolina 5% 34 Maryland 4% 28 Texas 2% 18 Idaho 2% 15 Washington 2% 15 Georgia 2% 13 Ohio 2% 12 Alabama 19% 133 Other states 100% $ 711 Total DIRECT LEASE FINANCING BY TYPE ($MILLIONS) 06/30/2024
FINANCIAL REVIEW
26 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE GROWTH HAS SIGNIFICANTLY EXCEEDED EXPENSE GROWTH 1 Revenue includes net interest income and non - interest income. Please see Appendix slide 31. 2 Non - interest income as percentage of average assets ranks in top 10% of the uniform bank performance report peer group through Q 1 2024. $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 2021 2022 2023 Q2 YTD 2023 Q2 YTD 2024 NON - INTEREST EXPENSE $ Millions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2021 2022 2023 Q2 YTD 2023 Q2 YTD 2024 REVENUE 1 $ Millions HIGHLIGHTS • Net interest income growth driven by increased NIM from heightened interest rate environment • Greater ratio of non - interest income to total assets compared to peers 2
27 FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES PRIMARILY REFLECTS OUR CHARGE - OFF HISTORY 1 Please see Appendix slide 32 for GAAP to Non - GAAP reconciliation of adjusted allowance for credit losses to GAAP allowance for c redit losses as % of adjusted loan balance (excluding SBLOC & IBLOC). HIGHLIGHTS • Nominal charge - offs for REBL, SBLOC, & IBLOC • SBA 7(a) loans are ~75% U.S. government guaranteed • SBA 504 loans have 50% - 60% loan to value ratios at origination $0 $5 $10 $15 $20 $25 $30 2020 2021 2022 2023 Q2 2024 ALLOWANCE FOR CREDIT LOSSES ($MILLIONS) Small Business HELOC/Consumer/Other SBLOC/IBLOC/Advisor Financing 0.5% 0.5% 0.4% 0.5% 0.6% Allowance for credit losses as % of loan balance 0.7% 0.7% 0.7% 0.9% 1.4% Adjusted allowance for credit losses as % of loan balance (excluding SBLOC & IBLOC) 1 Leasing Real Estate Bridge Lending
28 FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION CAPITAL POSITION HIGHLIGHTS • Completed $50M common stock repurchase in Q1 & $100M in Q2 • Planned common stock repurchase $50M in both Q3 and Q4 • Corporate governance requires periodic assessment of capital minimums • Capital planning includes stress testing for unexpected conditions and events 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2021 2022 2023 Q2 2024 5.0% 11.2% 12.4% 10.7% 10.9% Tier 1 Leverage Ratio 8% 16% 17% 15% 15% Tier 1 Risk - based Capital Ratio (RBC) 1 10% 16% 18% 15% 16% Total Risk - based Capital Ratio Tier 1 RBC Ratio Total RBC Ratio Tier 1 Leverage Ratio THE BANCORP BANK, N.A. CAPITAL RATIOS Well - capitalized minimum 1 Common Equity Tier 1 to risk weighted assets is identical to Tier 1 risk - based ratio and has a 6.5% well capitalized minimum. 2 Common stock repurchase may be modified without notice at any time.
29 HISTORICAL PERFORMANCE AND LONG - TERM TARGETS FINANCIAL REVIEW: EARNINGS AND PROFITABILITY LONG - TERM TARGETS Q2 YTD 2024 2023 2022 2021 PERFORMANCE METRICS >40% 28.0% 25.6% 19.3% 17.9% ROE > 4.0% 2.9% 2.59% 1.81% 1.68% ROA $2.10 $3.49 $2.27 $1.88 EPS >10% 11.2% 12.4% 10.7% 10.9% Bancorp Bank, N.A. Leverage Ratio <$10B $8.1B $7.7B $7.9B $6.8B Total Assets 40% 41% 48% 53% Efficiency Ratio 1 1 Please see Appendix slide 31 for calculation of efficiency ratio. Decreases in the efficiency ratio indicate greater efficien cy, i.e., lower expenses vs higher revenue.
APPENDIX
31 GAAP REVENUE & EFFICIENCY RATIO CALCULATIONS APPENDIX ($ millions) Q2 YTD 2024 Q2 YTD 2023 2023 2022 2021 The Bancorp $ 188,213 $ 173,011 $ 354,052 $ 248,841 $ 210,876 Net interest income 60,104 58,325 112,094 105,683 104,749 Non - interest income 248,317 231,336 466,146 354,524 315,625 Total revenue 7% 31% 12% 13% Growth (Current period over previous period) $ 98,158 $ 97,973 $ 191,042 $ 169,502 $ 168,350 Non - interest expense 40% 42% 41% 48% 53% Efficiency Ratio 1 Payments non - interest income (Fintech Solutions business line) $ 5,964 $ 4,600 $ 9,822 $ 8,935 $ 7,526 ACH, card, and other payment processing fees 49,041 45,500 89,417 77,236 74,654 Prepaid, debit card, and related fees $ 55,005 $ 50,100 $ 99,239 $ 86,171 $ 82,180 Total payments (Fintech Solutions) non - interest income 22% 22% % of Total revenue 1 The efficiency ratio is calculated by dividing GAAP total non - interest expense by the total of GAAP net interest income and non - interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
32 RECONCILIATION OF NON - GAAP FINANCIAL METRICS TO GAAP APPENDIX ($ millions) Q2 2024 2023 2022 2021 2020 $ 28,575 $ 27,378 $ 22,374 $ 17,806 $ 16,082 Allowance for credit losses on loans and leases GAAP 779 814 1,167 964 775 Allowance for credit losses on SBLOC & IBLOC 27,796 26,564 21,207 16,842 15,307 Adjusted allowance for credit losses excluding SBLOC & IBLOC 5,605,727 5,361,139 5,486,853 3,747,224 2,652,323 Total loans and leases GAAP 1,558,094 1,627,285 2,332,469 1,929,581 1,550,086 SBLOC & IBLOC $ 4,047,633 $ 3,733,854 $ 3,154,384 $ 1,817,643 $ 1,102,237 Adjusted total loans and leases excluding SBLOC & IBLOC 0.5% 0.5% 0.4% 0.5% 0.6% Allowance for credit losses as % of total loans and leases balance GAAP 0.7% 0.7% 0.7% 0.9% 1.4% Adjusted allowance for credit losses as % of adjusted total loans and leases balance 1 1 Management excludes SBLOC and IBLOC in certain of its internal analysis, due to the nature of the related loan collateral. S BLO C are collateralized by marketable securities, with loan to values based upon guideline percentages which vary based upon security type. IBLOC are collateralized by the ca sh value of life insurance.
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Bancorp (NASDAQ:TBBK)
過去 株価チャート
から 6 2024 まで 7 2024
Bancorp (NASDAQ:TBBK)
過去 株価チャート
から 7 2023 まで 7 2024
