EX-99.1 2 ex99-1.htm EXHIBIT 99.1

 

第99.1展示文本

 

 

the bancorp公司报告其第三季度财务 结果

 

2024年10月24日，特拉华州威明顿 – the bancorp公司（“the bancorp”或“公司”或“我们”）（纳斯达克股票代码: TBBK），一家金融控股公司，今天宣布了其2024年第三季度的财务业绩。

 

 

2024年第三季度的净利润为5150万美元。

 

有助于理解第三季度净收益的因素

 

1.根据下文最近的发展说明，新增了一个CECL因素，增加了信用损失准备金，导致净利润减少了150万美元。
2.将转移至非应计或调整的房地产桥梁贷款上的以前期间的利息收入逆转，导致净利润减少120万美元。
3.由于交易处理延迟导致的损失增加了非利息支出，并导致净利润减少了约90万美元。

 

近期事件

 

根据我们的第二季度新闻稿所述，公司与其全资子公司银行国家协会（“银行”）签订了购买和出售协议，该协议涉及通过处置房地产桥梁贷款（REBL）贷款而获得的一处公寓物业。截至2024年9月30日，相关4030万美元的余额占据了公司其他房地产业的大部分。在此之前的2024年7月125,000美元的定金存入后，买方已经存入额外的定金25,000美元，使2024年的存款总额达到375,000美元。预计到2024年12月31日交割期限前，还需存入额外的定金总额将达到500,000美元。预计销售价格将包括公司目前拥有的其他房地产业余额以及用于改善物业的预测成本。不能保证买方将完成物业的出售，但如果未完成，定金将归属于公司。

 

虽然在本季度，被归类为特别提及或次级的房地产桥梁贷款增加，但我们认为这些分类已经或即将达到峰值。这一结论至少部分基于第三季度由一家专门进行此类分析的公司对REBL投资组合的重要部分进行的独立审查。此外，50个基点的联邦储备利率下调可能为借款人提供即时的现金流益处，而进一步下降的远期收益曲线应支持更多的流动性益处，因为固定利率下降。此外，根据过去十二个月的评估，“按现状”和“按稳定状态”的平均贷款价值比率（“LTVs”分别为77%和68%），继续为减少损失提供重要保护。支持此类独立LTVs所支持的基础财产价值，继续促进从现金流问题中起作用的借款人向具有更强财务实力的借款人的再资本化。2024年9月30日，被归类为特别提及和次级的房地产桥梁贷款分别为$8440万和$15540万，而2024年6月30日分别为$9600万和$8040万。根据上述第三方对公寓楼抵押品的评估，对每笔归类贷款是否存在可能增加信贷损失拨备（“ACL”）进行了评估。根据“按现状”和“按稳定状态”的LTV，不需要提高拨备。REBL的当前信贷损失拨备主要基于多家庭贷款的历史行业损失，不存在公司REBL投资组合中的重大核销。然而，正如在我们的第二季度新闻发布中所述，由于被归类为特别提及和次级的贷款金额增加，公司在第三季度评估了REBL相关敏感性。这样的评估在本质上是主观的，因为它需要可能会随着更多信息的提供而发生变化的重要估计。因此，公司将上述新的定性因素添加到其季度ACL中，其累计税后影响约为$150万（税前$200万）。

 

亮点

 

·The bancorp报告2024年9月30日结束的季度净利润为5150万美元，每股摊薄收益(“EPS”)为1.04美元，相较于2023年9月30日结束的季度净利润为5010万美元，每股摊薄收益为0.92美元，EPS增长13%。虽然这些时期之间净利润增长了3%，但因普通股回购导致流通股减少，所以在2024年大幅增加。

 

·截至2024年9月30日，资产收益率和净资产收益率分别为2.5%和26%，相比之下，截至2023年9月30日的季度分别为2.7%和26%（所有百分比均为“年化”）。

 

·截至2024年9月30日的这个季度，净利息收入增长了5%，达到9370万美元，而2023年9月30日的这个季度为8890万美元。2024年第三季度的净利息收入因本季度将房地产桥贷款转移到非应计状态及对具有追溯性利率降低的贷款进行修改而导致的以160万美元（扣除税后120万美元）的利息逆转而减少。
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·截至2024年9月30日，净利息收益率为4.78%，相比于2023年9月30日的5.07%，以及2024年6月30日的4.97%。2024年第三季度的净利息收益率受到上述往期利息逆转的影响而下降。

 

·2024年9月30日，贷款净额扣除递延费用和成本为59.1亿美元，相比之下，2023年12月31日为53.6亿美元，而2023年9月30日为52亿美元。这些变化反映了季度相对于上季度的5%增长，以及年度相对之前年度的14%增长。

 

·总交易额（“GDV”），代表预付和借记卡的总消费金额，截至2024年9月30日的季度比截至2023年9月30日的季度增加了49.3亿美元，增长15%，达到了379亿美元。这一增长反映出我们与现有合作伙伴的持续有机增长以及过去一年内新增客户的影响。与2023年第三季度相比，总预付、借记卡、ACH和其他付款费用增长了16%，达到了2780万美元。2024年第三季度，消费金融科技费用增加到了160万美元，这是由于我们在2024年初进入信用赞助领域的结果。

 

·截至2024年9月30日，小额企业贷款（“SBLs”），包括持有的公允价值，达到了9.792亿美元，同比增长14％，环比季度增长2％，不包括相关担保借款的2850万美元影响。

 

·到2024年9月30日，直接租赁融资余额同比增长6%，达到71180万美元，较6月30日略高1%。

 

·2024年9月30日，房地产桥梁贷款达到21.9亿美元，比2024年6月30日的21.2亿美元增长了3%， 与2023年9月30日的18.5亿美元相比增长了18%。这些房地产桥梁贷款完全由用于公寓楼的翻新贷款组成。

 

·以安防-半导体担保的信用额度（“SBLOC”）、以保险担保的信用额度（“IBLOC”）和投资顾问融资贷款，整体较上年减少7%，较上季度减少不到1%，至2024年9月30日的17.9亿美元。

 

·2024年第三季度，72.3亿美元的平均存款和人形机器人-轴承负债的平均利率为2.54%。 2024年第三季度的平均存款为70.1亿美元，较2023年第三季度增加了72090万美元，增长了11%。

 

·截至2024年9月30日，一级资本与平均资产（杠杆）、一级资本与风险加权资产、总资本与风险加权资产及普通股一级资本与风险加权资产的比率分别为9.86%、13.62%、14.19%和13.62%，而良好资本化的最低标准分别为5%、8%、10%和6.5%。the bancorp 银行（国家协会）在银行监管下仍然保持良好资本化。

 

·2024年9月30日每股普通股账面价值为16.90美元，而2023年9月30日每股普通股账面价值为14.36美元，增长了18%。

 

·the bancorp回购了1,037,069股其普通股，平均成本为48.21美元/股，在截至2024年9月30日的季度内。由于股票回购，截至2024年9月30日的未上市股票数为4820万，而2023年12月31日的股票数为5320万股，或减少了9%。

 

·the bancorp强调安全性和稳健性，其资产负债表的风险特征因其贷款领域所支持的抵押品的特殊性质、相关的承销及其资金来源的特征而增强，包括以下要点中强调的内容。这些贷款领域和资金来源即使在市场经历各种经济压力的时期，也促进了收益水平的提高。

 

·The Bancorp的绝大多数资金来源是由联邦存款保险公司（FDIC）保险的账户和/或小额账户组成，它们仅对利率变化的一部分进行调整。截止到2024年9月30日，公司还与美国政府赞助机构有大约31亿美元的信用额度，并且可以使用其他形式的流动性。

 

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·在公司的REBL投资组合中，公司对非多家庭商业房地产业（如办公楼）的投资几乎为零，而是拥有一个主要由公寓楼的再开发桥贷款构成的投资组合。这些贷款一般具有三年的期限并可延长两次一年，以便完成再开发工作并在较长时间内稳定租金，然后通过美国政府赞助机构或其他贷款方以更低的利率再融资。REBL投资组合主要由我们认为是工薪阶层公寓的劳动力住房组成，租金更为可负担。因此，相关抵押品的价值应该比高租金物业更为稳定，即使在经济压力大的情况下。虽然宏观经济环境对多家庭桥贷款领域造成了挑战，但公司的REBL投资组合的稳定性从基础抵押品的估算价值中得以体现。截至2024年9月30日，公司的22亿美元公寓桥贷款投资组合的加权平均原始“现状”贷款与价值比率为70%，基于第三方评估。此外，加权平均原始“稳定”贷款与价值比率，衡量再开发完成后公寓的估算价值，可能提供更大的保护。

 

·作为承销过程的一部分，the bancorp在审查潜在借款人的以往康复经验的同时，还会审查其整体财务实力。这些交易还包括借款人必须提供的巨额股本，以及必需的绩效指标。承销通常包括但不限于评估与空置率和租金率相关的当地市场信息，根据地理特定的可负担性指数审查康复后的租金率假设，进行负面资讯搜索，留置物搜索，银行人员和/或指定工程师的实地访查，以及其他信息来源。

 

·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 REBL 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 REBL, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the REBL 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 REBL 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% LTVs.

 

·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 stockholder value, while still prudently maintaining capital levels.

 

·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. 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.

 

“We saw strong growth in the third quarter across our Fintech Solutions activities with a robust pipeline”, said Damian Kozlowski, CEO of The Bancorp. “We expect this growth to support an increase in profitability in 2025 and continued gains in EPS. We are issuing preliminary guidance of $5.25 a share for 2025. This 2025 guidance does not include the impact of planned stock buybacks of $150 million. Guidance for 2024 remains $4.35, which includes the positive impact of buybacks during the year. Planned stock buybacks are being reduced in 2025 by $100 million from 2024 levels of $250 million to facilitate the currently planned repayment of senior secured debt of $96 million.”

 

Conference Call Webcast

 

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 25, 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 (archived for one year) or telephonically until Friday, November 1, 2024, by dialing 1.800.839.1162.

 

 

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About The Bancorp

 

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association provides a variety of services including providing 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 that 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. Forward-looking statements include, but are not limited to, statements regarding our annual fiscal 2024 results, our anticipated 2025 profitability, increased growth and the impact of stock buybacks, relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic, political, and technological factors, among other factors, 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. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in 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 the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly Reports on Forms 10-Q for the periods ended March 31, 2024 and June 30, 2024, and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty 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. 

 

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The Bancorp, Inc.

Financial highlights

(unaudited)

 

  Three months ended  Nine months ended
  September 30,  September 30,
Consolidated condensed income statements  2024  2023  2024  2023
  (Dollars in thousands, except per share and share data)   
Net interest income  $93,732   $88,882    281,945    261,893 
Provision for credit losses on loans   3,476    1,783    7,316    4,409 
Provision (reversal) for unfunded commitments   79    (31)   (340)   (393)
Non-interest income                  
Fintech fees                    
ACH, card and other payment processing fees   3,892    2,553    9,856    7,153 
Prepaid, debit card and related fees   23,907    21,513    72,948    67,013 
Consumer credit fintech fees   1,600    —      1,740    — 
Total fintech fees   29,399    24,066    84,544    74,166 
Net realized and unrealized gains on commercial loans, at fair value   606    525    2,205    4,171 
Leasing related income   1,072    1,767    2,889    4,768 
Other non-interest income   1,031    422    2,574    2,000 
Total non-interest income   32,108    26,780    92,212    85,105 
Non-interest expense                    
Salaries and employee benefits   33,821    30,475    97,964    93,427 
Data processing expense   1,408    1,404    4,252    4,123 
Legal expense   1,055    1,203    2,509    3,110 
FDIC insurance   904    806    2,618    2,233 
Software   4,561    4,427    13,687    12,981 
Other non-interest expense   11,506    9,144    30,383    29,558 
Total non-interest expense   53,255    47,459    151,413    145,432 
Income before income taxes   69,030    66,451    215,768    197,550 
Income tax expense   17,513    16,314    54,136    49,282 
Net income   51,517    50,137    161,632    148,268 
Net income per share - basic  $1.06    0.93    3.18    2.70 
Net income per share - diluted  $ 1.04    0.92    3.15    2.68 
Weighted average shares - basic   48,759,369    54,175,184    50,807,021    54,828,547 
Weighted average shares - diluted   49,478,236    54,738,610    51,361,104    55,336,354 

 

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Condensed consolidated balance sheets  September 30,  June 30,  December 31,  September 30,
   2024 (unaudited)  2024 (unaudited)  2023  2023 (unaudited)
   (Dollars in thousands, except share data)
Assets:            
Cash and cash equivalents                    
Cash and due from banks  $8,660   $5,741   $4,820   $4,881 
Interest earning deposits at Federal Reserve Bank   47,105    399,853    1,033,270    898,533 
     Total cash and cash equivalents   55,765    405,594    1,038,090    903,414 
                     
Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss   1,588,289    1,581,006    747,534    756,636 
Commercial loans, at fair value   252,004    265,193    332,766    379,603 
Loans, net of deferred fees and costs   5,906,616    5,605,727    5,361,139    5,198,972 
Allowance for credit losses   (31,004)   (28,575)   (27,378)   (24,145)
Loans, net   5,875,612    5,577,152    5,333,761    5,174,827 
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock   21,717    15,642    15,591    20,157 
Premises and equipment, net   28,091    28,038    27,474    28,978 
Accrued interest receivable   42,915    43,720    37,534    34,159 
Intangible assets, net   1,353    1,452    1,651    1,751 
Other real estate owned   61,739    57,861    16,949    18,756 
Deferred tax asset, net   9,604    20,556    21,219    20,379 
Other assets   157,501    149,187    133,126    127,107 
     Total assets  $8,094,590   $8,145,401   $7,705,695   $7,465,767 
                     
Liabilities:                    
Deposits                    
Demand and interest checking  $6,844,128   $7,095,391   $6,630,251   $6,455,043 
Savings and money market   81,624    60,297    50,659    49,428 
     Total deposits   6,925,752    7,155,688    6,680,910    6,504,471 
                     
Securities sold under agreements to repurchase   —      —      42    42 
Short-term borrowings   135,000    —      —      —   
Senior debt   96,125    96,037    95,859    95,771 
Subordinated debenture   13,401    13,401    13,401    13,401 
Other long-term borrowings   38,157    38,283    38,561    9,861 
Other liabilities   70,829    65,001    69,641    68,533 
     Total liabilities  $7,279,264   $7,368,410   $6,898,414   $6,692,079 
                     
Shareholders' equity:                    
Common stock - authorized, 75,000,000 shares of $1.00 par value; 48,230,334 and 53,867,129 shares issued and outstanding at September 30, 2024 and 2023, respectively   48,231    49,268    53,203    53,867 
Additional paid-in capital   26,573    72,171    212,431    234,320 
Retained earnings   723,247    671,730    561,615    517,587 
Accumulated other comprehensive income (loss)   17,275    (16,178)   (19,968)   (32,086)
Total shareholders' equity   815,326    776,991    807,281    773,688 
                     
     Total liabilities and shareholders' equity  $8,094,590   $8,145,401   $7,705,695   $7,465,767 

 

6 
 

 

 

Average balance sheet and net interest income  Three months ended September 30, 2024  Three months ended September 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)  $6,017,911   $116,367    7.73%  $5,603,514   $110,506    7.89%
Leases-bank qualified(2)   5,151    146    11.34%   4,585    110    9.60%
Investment securities-taxable   1,575,091    19,767    5.02%   768,364    9,647    5.02%
Investment securities-nontaxable(2)   2,927    55    7.52%   3,005    50    6.66%
Interest earning deposits at Federal Reserve Bank   247,344    3,387    5.48%   639,946    8,689    5.43%
Net interest earning assets   7,848,424    139,722    7.12%   7,019,414    129,002    7.35%
                               
Allowance for credit losses   (28,254)             (23,147)          
Other assets   222,646              338,085           
   $8,042,816             $7,334,352           
                               
Liabilities and Shareholders' Equity:                              
Deposits:                              
Demand and interest checking  $6,942,029   $42,149    2.43%  $6,229,668   $37,913    2.43%
Savings and money market   65,079    549    3.37%   56,538    518    3.66%
Total deposits   7,007,108    42,698    2.44%   6,286,206    38,431    2.45%
                               
Short-term borrowings   73,480    1,030    5.61%   —      —      —   
Repurchase agreements   —      —      —      41    —      —   
Long-term borrowings   38,235    689    7.21%   9,889    128    5.18%
Subordinated debentures   13,401    297    8.87%   13,401    293    8.75%
Senior debt   96,071    1,234    5.14%   95,714    1,234    5.16%
Total deposits and liabilities   7,228,295    45,948    2.54%   6,405,251    40,086    2.50%
                               
Other liabilities   18,362              167,673           
Total liabilities   7,246,657              6,572,924           
                               
Shareholders' equity   796,159              761,428           
   $8,042,816             $7,334,352           
Net interest income on tax equivalent basis(2)       $93,774             $88,916      
                               
Tax equivalent adjustment        42              34      
                               
Net interest income       $93,732             $88,882      
Net interest margin(2)             4.78%             5.07%

 

 

(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.

 

7 
 

 

 

Average balance sheet and net interest income Nine months ended September 30, 2024   Nine months ended September 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) $  5,828,938    $  345,497       7.90%   $  5,772,266    $  324,009     7.48%
Leases-bank qualified(2)    4,840       379       10.44%      3,920       279     9.49%
Investment securities-taxable    1,255,532       46,921       4.98%      773,485       28,820     4.97%
Investment securities-nontaxable(2)    2,905       155       7.11%      3,193       144     6.01%
Interest earning deposits at Federal Reserve Bank    486,883       19,948       5.46%      640,554       24,271     5.05%
Net interest earning assets    7,579,098       412,900       7.26%      7,193,418       377,523     7.00%
                                 
Allowance for credit losses    (27,993)                  (23,192)          
Other assets    280,733                   269,072           
  $  7,831,838                $  7,439,298           
                                 
Liabilities and Shareholders' Equity:                                
Deposits:                                
Demand and interest checking $  6,684,671    $  120,405       2.40%   $  6,343,711    $  106,984     2.25%
Savings and money market    58,777       1,453       3.30%      88,738       2,465     3.70%
Time deposits    —      —      —      27,802       858     4.11%
Total deposits    6,743,448       121,858       2.41%      6,460,251       110,307     2.28%
                                 
Short-term borrowings    55,820       2,344       5.60%      6,758       234     4.62%
Repurchase agreements    4       —      —      41       —    —
Long-term borrowings    38,371       2,060       7.16%      9,945       382     5.12%
Subordinated debentures    13,401       880       8.76%      13,401       825     8.21%
Senior debt    95,983       3,701       5.14%      97,220       3,793     5.20%
Total deposits and liabilities    6,947,027       130,843       2.51%      6,587,616       115,541     2.34%
                                 
Other liabilities    73,507                   117,822           
Total liabilities    7,020,534                   6,705,438           
                                 
Shareholders' equity    811,304                   733,860           
  $  7,831,838                $  7,439,298           
Net interest income on tax equivalent basis(2)       $  282,057                $  261,982     
                                 
Tax equivalent adjustment          112                   89     
                                 
Net interest income       $  281,945                $  261,893     
Net interest margin(2)                4.96%                4.86%

 

 

(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.

 

 

8 
 

 

 

 

Allowance for credit losses   Nine months ended   Year ended
  September 30,   September 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    431       871       871 
SBA commercial mortgage    —      —      76 
Direct lease financing    3,625       2,804       3,666 
IBLOC    —      —      24 
Consumer - home equity    10       —      —
Other loans    6       3       3 
Total    4,072       3,678       4,640 
                 
Recoveries:                
SBA non-real estate    102       446       475 
SBA commercial mortgage    —      75       75 
Direct lease financing    279       220       330 
Consumer - home equity    1       299       299 
Total    382       1,040       1,179 
Net charge-offs    3,690       2,638       3,461 
Provision for credit losses on loans    7,316       4,409       8,465 
                 
Balance in allowance for credit losses at end of period $  31,004    $  24,145    $  27,378 
Net charge-offs/average loans    0.07%      0.05%      0.07%
Net charge-offs/average assets    0.05%      0.04%      0.05%

 

 

                       
9 
 

 

   
Loan portfolio September 30,   June 30,   December 31,   September 30,
  2024 (unaudited)   2024 (unaudited)   2023   2023 (unaudited)
  (Dollars in thousands)
                       
SBL non-real estate $  179,915    $  171,893    $  137,752    $  130,579 
SBL commercial mortgage    665,608       647,894       606,986       547,107 
SBL construction    30,158       30,881       22,627       19,204 
Small business loans    875,681       850,668       767,365       696,890 
Direct lease financing    711,836       711,403       685,657       670,208 
SBLOC / IBLOC(1)    1,543,215       1,558,095       1,627,285       1,720,513 
Advisor financing(2)    248,422       238,831       221,612       199,442 
Real estate bridge loans    2,189,761       2,119,324       1,999,782       1,848,224 
Consumer fintech(3)    280,092       70,081       —      —
Other loans(4)    46,586       46,592       50,638       55,800 
     5,895,593       5,594,994       5,352,339       5,191,077 
Unamortized loan fees and costs    11,023       10,733       8,800       7,895 
Total loans, including unamortized fees and costs $  5,906,616    $  5,605,727    $  5,361,139    $  5,198,972 
                         

 

 

Small business portfolio   September 30,     June 30,     December 31,     September 30,
    2024 (unaudited)     2024 (unaudited)     2023     2023 (unaudited)
    (Dollars in thousands)
                       
SBL, including unamortized fees and costs $  885,263   $  860,226   $  776,867   $  705,790
SBL, included in loans, at fair value    93,888      104,146      119,287      126,543
Total small business loans(5) $  979,151   $  964,372   $  896,154   $  832,333

 

(1) SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At September 30, 2024 and December 31, 2023, IBLOC loans amounted to $554.0 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 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 $960,000 and $1.7 million at September 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 September 30, 2024

       
    Loan principal
    (Dollars in millions)
U.S. government guaranteed portion of SBA loans(1)   $  392
PPP loans(1)     2
Commercial mortgage SBA(2)      349
Construction SBA(3)      10
Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(4)      114
Non-SBA SBLs      73
Other(5)      28
Total principal   $  968
Unamortized fees and costs      11
Total SBLs   $  979

 

(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 $9 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $1 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 $28 million of loans sold that do not qualify for true sale accounting.

10 
 

Small business loans by type as of September 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 (except casino hotels) and motels   $  88   $ —   $ —   $  88      16%
Funeral homes and funeral services      20      —      28      48      9%
Full-service restaurants      29      2      2      33      6%
Child day care services      23      1      1      25      5%
Car washes      16      4      —      20      4%
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      14     —      —      14      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      1%
Caterers      7     —      —      7      1%
All other specialty trade contractors      7      —      —      7      1%
General warehousing and storage      6     —      —      6      1%
Appliance repair and maintenance      6     —      —      6      1%
Other accounting services      5      —     —     5      1%
Plumbing, heating, and air-conditioning contractors     5     —      1      6      1%
Other miscellaneous durable goods merchant      5     —     —      5      1%
Packaged frozen food merchant wholesalers      5      —     —      5      1%
Lessors of nonresidential buildings (except miniwarehouses)      5     —     —      5      1%
Other technical and trade schools      5      —     —      5      1%
All other amusement and recreation industries      4      —     —      4      1%
Other(2)      136      8      29      173      30%
Total   $  464   $  16   $  66   $  546      100%

 

 

(1) Of the SBL commercial mortgage and SBL construction loans, $121 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 $28 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 September 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   $  126   $  3   $  5   $  134      25%
Florida      76      5      4      85      16%
North Carolina      45     1      5      51      9%
New York      32     —      2      34      6%
Pennsylvania      20      —      13      33      6%
Texas      21      3      6      30      5%
New Jersey      21      —      7      28      5%
Georgia      25      2      1      28      5%
Other States      98      2      23      123      23%
Total   $  464   $  16   $  66   $  546      100%
                               

 

(1) Of the SBL commercial mortgage and SBL construction loans, $121 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 $28 million of loans that do not qualify for true sale accounting.

11 
 

 

 

 

Top 10 loans as of September 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      8   
Hotel     FL      8   
Lawyer's office     CA      8   
Hotel     VA      7   
Hotel     NC      7   
General warehousing and storage     PA      6   
Appliance repair and maintenance     NY      6   
Total         $  86   

(1) The table above does not include loans to the extent that they are U.S. government guaranteed.

 

12 
 

 

Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:

 

Type as of September 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)     172   $  2,190     70%    9.13%
                     
Non-SBA commercial real estate loans, at fair value:                    
Multifamily (apartment bridge loans)(1)      7    $  113     74%    7.98%
Hospitality (hotels and lodging)      2       27     65%    9.82%
Retail      2       12     72%    8.19%
Other      2       9     72%    5.01%
       13       161     72%    8.14%
Fair value adjustment            (3)        
Total non-SBA commercial real estate loans, at fair value            158         
Total commercial real estate loans         $  2,348     70%    9.07%

 

 

(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 September 30, 2024     15 largest loans as of September 30, 2024
                               
State     Balance     Origination date LTV     State       Balance   Origination date LTV
(Dollars in millions)     (Dollars in millions)
Texas   $  735     71%     Texas     $  46    75%
Georgia      262     70%     Tennessee        40    72%
Florida      230     68%     Michigan        38    62%
Michigan      136     68%     Texas        37    64%
Indiana      108     70%     Texas        36    67%
New Jersey      107     69%     Florida        35    72%
Ohio      92     66%     Pennsylvania        34    63%
Other States each <$65 million      678     71%     Indiana        34    76%
Total   $  2,348     70%     New Jersey        34    62%
                  Texas        33    62%
                  Michigan        33    79%
                  Oklahoma        31    78%
                  Texas        31    77%
                  New Jersey        31    71%
                  Michigan        29    66%
                  15 largest commercial real estate loans     $  522    70%
13 
 

 

Institutional banking loans outstanding at September 30, 2024

 

         
Type Principal   % of total
    (Dollars in millions)    
SBLOC $  989   55%
IBLOC    554   31%
Advisor financing    249   14%
Total $  1,792    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 SBLOC loans 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 September 30, 2024

 

  Principal amount   % Principal to collateral
  (Dollars in millions)
  $  9    41%
     8    84%
     8    62%
     8    63%
     7    44%
     5    57%
     5    65%
     5    58%
     5    56%
     5    43%
Total and weighted average $  65    58%

 

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 October 17, 2024, all were rated A- (Excellent) or better by AM BEST.

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Direct lease financing by type as of September 30, 2024

 

    Principal balance(1)   % Total
    (Dollars in millions)    
Government agencies and public institutions(2) $  131     18%
Construction    112     16%
Waste management and remediation services    97     14%
Real estate and rental and leasing    86     12%
Health care and social assistance    29     4%
Other services (except public administration)    22     3%
Professional, scientific, and technical services    22     3%
General freight trucking    21     3%
Finance and insurance    14     2%
Transit and other transportation    13     2%
Wholesale trade    10     1%
Educational services    7     1%
Other    148     21%
Total $  712     100%

 

(1) Of the total $712 million of direct lease financing, $648 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

(2) Includes public universities as well as school districts.

 

 

Direct lease financing by state as of September 30, 2024

 

State   Principal balance   % Total
    (Dollars in millions)    
Florida $  108    15%
New York    70    10%
Utah    58    8%
California    49    7%
Connecticut    45    6%
Pennsylvania    42    6%
New Jersey    39    5%
North Carolina    36    5%
Maryland    36    5%
Texas    26    4%
Idaho    19    3%
Washington    16    2%
Ohio    14    2%
Georgia    14    2%
Alabama    13    2%
Other States    127    18%
Total $  712    100%

 

 

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Capital ratios           
  

Tier 1 capital

to average

assets ratio

 

Tier 1 capital

to risk-weighted

assets ratio

  Total capital to risk-weighted assets ratio  Common equity tier 1 to risk weighted assets
As of September 30, 2024                    
The Bancorp, Inc.   9.86%    13.62%    14.19%    13.62% 
The Bancorp Bank, National Association   10.94%    15.11%    15.67%    15.11% 
"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  Nine months ended
   September 30,  September 30,
   2024  2023  2024  2023
Selected operating ratios                    
Return on average assets(1)   2.55%    2.71%    2.76%    2.66% 
Return on average equity(1)   25.74%    26.12%    26.61%    27.01% 
Net interest margin   4.78%    5.07%    4.96%    4.86% 

 

(1) Annualized

 

Book value per share table  September 30,  June 30,  December 31,  September 30,
   2024  2024  2023  2023
Book value per share  $16.90   $15.77   $15.17   $14.36 

 

 

Loan delinquency and other real estate owned  September 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  $72   $322   $758   $3,047   $4,199   $175,716   $179,915 
SBL commercial mortgage   —      —      336    4,898    5,234    660,374    665,608 
SBL construction   —      —      —      1,585    1,585    28,573    30,158 
Direct lease financing   5,791    12,883    1,260    3,919    23,853    687,983    711,836 
SBLOC / IBLOC   10,251    2,014    2,383    —      14,648    1,528,567    1,543,215 
Advisor financing   —      —      —      —      —      248,422    248,422 
Real estate bridge loans(1)   —      —      —      12,300    12,300    2,177,461    2,189,761 
Consumer fintech   4,021    4    —      —      4,025    276,067    280,092 
Other loans   —      —      —      —      —      46,586    46,586 
Unamortized loan fees and costs   —      —      —      —      —      11,023    11,023 
   $20,135   $15,223   $4,737   $25,749   $65,844   $5,840,772   $5,906,616 

 

(1) The $12.3 million shown in the non-accrual column for real estate bridge loans is collateralized by apartment building property with respective 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. This loan had a prior six-month payment deferral granted in the fourth quarter of 2024 and did not resume making payments. The table above does not include an $11.2 million loan accounted for at fair value, and, as such, not reflected in delinquency tables. In third quarter 2024, the borrower notified the Company that he would no longer be making payments on the loan, which is collateralized by a vacant retail property. Based upon a July 2024 appraisal, the “as is” LTV is 84% and the “as stabilized” LTV is 62%. Since 2021, real estate bridge lending originations have consisted of apartment buildings, while this loan was originated previously.

 

Other loan information

 

Of the $84.4 million special mention and $155.4 million substandard loans at September 30, 2024, $55.3 million were modified in the third quarter of 2024 and received reductions in interest rates and payment deferrals. Included in that total was $26.9 million which had been modified in first quarter 2024 with a six-month payment deferral. The third quarter additional modification was for an additional three-month payment deferral and a partial nine-month payment deferral. Not included in that modification total were $19.3 million which was recapitalized with a new borrower, who negotiated a partial interest deferral and rate reduction, and $37.3 million which is accounted for at fair value, and as such, not reflected in modification totals. While payment deferrals have generally been for three to twelve months, that loan was granted a 15-month payment deferral, followed by a nine-month partial payment deferral, in addition to an interest rate reduction. Going forward, the Company will not be accruing interest on this loan. The weighted average “as is” and “as stabilized” LTVs for the $19.3 million balance were 72% and 68%, respectively, while those LTVs for the $37.3 million were 73% and 65%, respectively. Those respective LTVs for the $26.9 million loan were 65% and 61%. These LTVs are based upon appraisals performed within the past twelve months.

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Other real estate owned year to date activity

 

  September 30, 2024
Beginning balance $  16,949 
Transfer from loans, net    42,120 
Transfer from commercial loans, at fair value    1,744 
Advances    926 
Ending balance $  61,739 

 

 

 

    September 30,     June 30,     December 31,     September 30,
    2024     2024     2023     2023
    (Dollars in thousands)
Asset quality ratios:                      
Nonperforming loans to total loans(1)    0.52%      0.34%      0.25%      0.30%
Nonperforming assets to total assets(1)    1.14%      0.95%      0.39%      0.46%
Allowance for credit losses to total loans    0.52%      0.51%      0.51%      0.46%
                       

 

(1) In the first quarter of 2024, a $39.4 million apartment building rehabilitation bridge loan with a September 30, 2024 balance of $40.3 million 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 $40.3 million loan balance compares to a September 2023 third-party “as is” appraisal of $47.8 million, or an 84% “as is” LTV, with additional potential collateral value as construction progresses, and units are re-leased at stabilized rental rates. Please see “Recent Developments” which summarizes the agreement of sale for this property.

 

 

 

 

                      
Gross dollar volume (GDV)(1) Three months ended
  September 30,   June 30,   December 31,   September 30,
  2024   2024   2023   2023
    (Dollars in thousands)
Prepaid and debit card GDV $  37,898,006   $  37,139,200   $  33,292,350   $  32,972,249

 

(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank, N.A.

 

17 
 

 

Business line quarterly summary                          
Quarter ended September 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)   6.9%   $                 1,792   (7%)   (1%)          
Small business lending(4)   7.5%   979   14%   6%          
Leasing   8.1%   712   6%   —          
Commercial real estate (non-SBA loans, at fair value)   8.1%         158   nm   nm          
Real estate bridge loans (recorded at book value)   9.1%   2,189   18%   13%          
Consumer fintech loans - interest bearing   5.5%   10   nm   nm          
Consumer fintech loans - non-interest bearing(5)   —   270   nm   nm          
Weighted average yield   7.6%    $   6,110           Non-interest income
                        % Growth
Deposits: Fintech Solutions group                   Current quarter   Year over year  
Prepaid and debit card issuance, and other payments 2.5%    $    6,649   11%   nm    $     27.8   16%  

 

(1) Average rates are for the three months ended September 30, 2024.

(2) Loan and deposit categories are based on period-end and average quarterly balances, respectively.

(3) Institutional Banking loans are comprised of SBLOC loans collateralized by marketable securities, IBLOC loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.

(4) Small Business Lending is substantially comprised of SBA-guaranteed loans. Growth rates exclude $28 million of loans that do not qualify for true sale accounting.

(5) Income related to non-interest-bearing balances is included in non-interest income.

 

Summary of credit lines available

 

The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.

 

  September 30, 2024
    (Dollars in thousands)
Federal Reserve Bank $  1,974,022 
Federal Home Loan Bank    1,106,517 
Total lines of credit available $  3,080,539 

 

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.

 

  September 30, 2024
Insured   93%
Low balance accounts   3%
Other uninsured   4%
Total deposits   100%

 

Calculation of efficiency ratio(1)

 

  Three months ended   Year ended
  September 30,   September 30,   December 31,
  2024   2023   2023
  (Dollars in thousands)
Net interest income $  93,732    $  88,882    $  354,052 
Non-interest income    32,108       26,780       112,094 
Total revenue $  125,840    $  115,662    $  466,146 
Non-interest expense $  53,255    $  47,459    $  191,042 
                 
Efficiency ratio    42%      41%      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.
18 
 

 

 

 

Segment Reporting

 

 

  For the nine months ended September 30, 2024
    Payments     REBL   Institutional Banking     Commercial     Corporate   Total
   
Interest income   $  33    $  157,010    $  91,987    $  92,316      $  71,442    $  412,788 
Interest allocation      196,251       (73,570)      (53,111)      (52,499)        (17,071)      —
Interest expense      117,884       —      2,607       25         10,327       130,843 
Net interest income      78,400       83,440       36,269       39,792         44,044       281,945 
Provision for credit losses      —      2,555       166       4,427         (172)      6,976 
Non-interest income      84,639       2,646       214       4,251         462       92,212 
Direct non-interest expense                                      
     Salaries and employee benefits      11,433       2,917       6,784       13,653         63,177       97,964 
     Data processing expense      1,155       125       1,771       5         1,196       4,252 
     Software      364       78       2,253       1,343         9,649       13,687 
     Other      6,728       2,601       1,663       5,836         18,682       35,510 
Income before non-interest expense allocations      143,359       77,810       23,846       18,779         (48,026)      215,768 
Non-interest expense allocations                                      
Risk, financial crimes, and compliance      20,150       1,621       2,248       3,665         (27,684)      —
Information technology and operations      10,151       539       4,449       5,533         (20,672)      —
      Other allocated expenses      11,830       2,244       4,904       5,266         (24,244)      —
Total non-interest expense allocations      42,131       4,404       11,601       14,464         (72,600)      —
Income before taxes      101,228       73,406       12,245       4,315         24,574       215,768 
Income tax expense      25,398       18,418       3,072       1,083         6,165       54,136 
Net income   $  75,830    $  54,988    $  9,173    $  3,232      $  18,409    $  161,632 

 

 

 

 

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