Exhibit 99.1
The Bancorp, Inc. Reports Fourth Quarter and Fiscal 2009 Financial Results
Wilmington, Delaware – January 27, 2010 – The Bancorp, Inc. (“Bancorp”) (NASDAQ: TBBK), a bank holding company, today reported results for the quarter and year ended December 31, 2009.
Financial Highlights:
| • | Diluted earnings per share of $0.02 for the year ended December 31, 2009 compared to a loss per share of $2.93 for the year ended December 31, 2008 |
| • | Net interest income increased $1.9 million, or 13%, during the fourth quarter of 2009 and $9.5 million, or, 18% for the year ended December 31, 2009, compared to respective 2008 periods |
| • | Net interest margin was 3.84% in the fourth quarter of 2009 compared to 3.69% in the fourth quarter of 2008 and 3.74% and 3.44% for fiscal 2009 and 2008 |
| • | Interest on deposits decreased to 0.83% for fourth quarter of 2009 from 1.87% for the fourth quarter of 2008 |
| • | Transaction account balances represented 91% of total deposit balances at December 31, 2009 |
| • | Construction loans decreased 32% to $207.2 million at December 31, 2009 compared to fiscal 2008 |
Financial Results
Bancorp reported a net loss available to common shareholders for the three months ended December 31, 2009 of $932,000, or a loss per share of $0.04, after pretax losses related to securities of $2.2 million and after-tax TARP-related costs of $965,000, based on 26,181,291 weighted average shares outstanding, compared to a loss available to common shareholders of $41.4 million, or a loss per share of $2.84, primarily relating to pretax charges on securities and goodwill impairment, of $11.6 million and $51.9 million, respectively and after-tax TARP-related costs of $186,000, based on 14,563,919 weighted average shares outstanding, for the three months ended December 31, 2008.
For the year ended December 31, 2009, Bancorp reported net income available to common shareholders of $342,000, or earnings per share – diluted of $0.02, based on 19,324,335 weighted average shares outstanding, compared to a net loss available to common shareholders of $42.6 million, or a loss per share – diluted of $2.93, based on 14,563,182 weighted average shares outstanding, for the year ended December 31, 2008.
Betsy Z. Cohen, Bancorp’s Chief Executive Officer, said, “The quarterly loss is attributable to a pretax securities impairment charge of $2.2 million, or $0.06 per share after tax, against our remaining $21.5 million portfolio of trust preferred securities, and an additional $4.0 million in provisions for loan losses. The bank remains well capitalized after the recognition of this loss and continues to experience significant growth in its core deposit generation programs. Deposits from health saving accounts increased 43.1% to over $302 million since December 31, 2008 and deposits attributable to our prepaid cards have grown 344.6% to $520 million since acquisition of the bank’s prepaid card division in November 2007. Loans also increased even after a decrease in both outstandings and commitments in the bank’s construction loan portfolio. Finally, nonperforming loans at December 31, 2009 represented 1.66% of total loans compared to 1.77% of total loans at September 30, 2009.”
Capital Ratios
| Tier 1 capital | Tier 1 capital | Total capital | |||||||
| to average | to risk-weighted | to risk-weighted | |||||||
| assets ratio | assets ratio | assets ratio | |||||||
| AS OF DECEMBER 31, 2009 |
|||||||||
| The Bancorp, Inc. |
12.68 | % | 15.80 | % | 17.06 | % | |||
| “Well capitalized” institution (under FDIC regulations) |
5.00 | % | 6.00 | % | 10.00 | % | |||
| AS OF DECEMBER 31, 2008 |
|||||||||
| The Bancorp, Inc. |
10.10 | % | 11.72 | % | 12.87 | % | |||
| “Well capitalized” institution (under FDIC regulations) |
5.00 | % | 6.00 | % | 10.00 | % | |||
Balance Sheet Summary
At December 31, 2009, Bancorp’s total assets were $2.043 billion, an increase of $251.1 million or 14.0% from December 31, 2008. Loans grew to $1.5 billion, an increase of $74.4 million or 5.1% over December 31, 2008, and deposits increased to $1.7 billion, an increase of $134.7 million or 8.9%, over December 31, 2008. Total common shares outstanding were 26,181,291 at December 31, 2009 and 14,563,919 December 31, 2008.
Conference Call Webcast
You may access the LIVE webcast of Bancorp’s Quarterly Earnings Conference Call at 9:00 AM EST Thursday, January 28, 2010 by clicking on the webcast link on Bancorp’s homepage at www.thebancorp.com. Or, you may dial 866.788.0542 using access code 99705194. You may listen to the replay of the webcast following the live call on Bancorp’s investor relations website or telephonically until Thursday, February 4, 2010 by dialing 888.286.8010, access code 31280636.
About Bancorp
The Bancorp, Inc. is a bank holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity programs nationwide. The Bancorp Bank’s regional community bank division serves the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.
Forward Looking Statements
Statements in this earnings release regarding The Bancorp, Inc.’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties. These statements may be identified by the use of forward-looking terminology, including the words “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “continue,” or similar words. For further discussion of these risks and uncertainties, see The Bancorp, Inc.’s filings with the SEC, including the “Risk Factors” section of The Bancorp Inc.’s filings. These risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. The forward looking statements speak only as of the date of this presentation. The Bancorp, Inc. 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.
The Bancorp, Inc. Contact
Andres Viroslav
215-861-7990
andres.viroslav@thebancorp.com
The Bancorp, Inc.
Financial highlights
(unaudited)
| Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
| Condensed income statement |
2009 | 2008 | 2009 | 2008 | ||||||||||||
| (dollars in thousands except per share data) |
(dollars in thousands except per share data) |
|||||||||||||||
| Net interest income |
$ | 16,849 | $ | 14,905 | $ | 63,709 | $ | 54,219 | ||||||||
| Provision for loan and lease losses |
4,000 | 3,700 | 13,000 | 12,500 | ||||||||||||
| Non-interest income |
— | |||||||||||||||
| Other than temporary impairment of investment securities |
(2,225 | ) | (11,611 | ) | (2,225 | ) | (19,886 | ) | ||||||||
| Other non-interest income |
3,800 | 3,111 | 14,044 | 12,283 | ||||||||||||
| Total non-interest income |
1,575 | (8,500 | ) | 11,819 | (7,603 | ) | ||||||||||
| Non-interest expense |
||||||||||||||||
| Loss on other real estate owned |
— | — | 1,700 | — | ||||||||||||
| Other non-interest expense |
14,374 | 64,142 | 54,478 | 97,388 | ||||||||||||
| Total non-interest expense |
14,374 | 64,142 | 56,178 | 97,388 | ||||||||||||
| Net income (loss) before income tax expense |
50 | (61,437 | ) | 6,350 | (63,272 | ) | ||||||||||
| Income tax expense (benefit) |
17 | (20,242 | ) | 2,248 | (20,892 | ) | ||||||||||
| Net income (loss) |
33 | (41,195 | ) | 4,102 | (42,380 | ) | ||||||||||
| Less preferred stock dividends |
(565 | ) | (143 | ) | (2,293 | ) | (184 | ) | ||||||||
| Less preferred stock accretion |
(400 | ) | (59 | ) | (1,467 | ) | (59 | ) | ||||||||
| Net income (loss) available to common shareholders |
$ | (932 | ) | $ | (41,397 | ) | $ | 342 | $ | (42,623 | ) | |||||
| Basic earnings (loss) per share |
$ | (0.04 | ) | $ | (2.84 | ) | $ | 0.02 | $ | (2.93 | ) | |||||
| Diluted earnings (loss) per share |
$ | (0.04 | ) | $ | (2.84 | ) | $ | 0.02 | $ | (2.93 | ) | |||||
| Weighted average shares - basic |
26,181,291 | 14,563,919 | 18,794,590 | 14,563,182 | ||||||||||||
| Weighted average shares - diluted |
26,181,291 | 14,563,919 | 19,324,335 | 14,563,182 | ||||||||||||
| Balance sheet |
December 31, 2009 |
September 30, 2009 |
June 30, 2009 |
December 31, 2008 |
||||||||||||
| ASSETS |
||||||||||||||||
| Cash and cash equivalents |
||||||||||||||||
| Cash and due from banks |
$ | 135,246 | $ | 133,453 | $ | 69,950 | $ | 90,744 | ||||||||
| Interest bearing deposits at Federal Reserve Bank |
219,213 | 1,033 | 2,047 | 1,033 | ||||||||||||
| Federal funds sold |
— | 210,506 | 12,102 | 87,729 | ||||||||||||
| Total cash and cash equivalents |
354,459 | 344,992 | 84,099 | 179,506 | ||||||||||||
| Investment securities, available-for-sale, at fair value |
93,478 | 117,839 | 119,781 | 82,929 | ||||||||||||
| Investment securities, held-to-maturity |
21,468 | 23,549 | 23,542 | 23,529 | ||||||||||||
| Loans, net of deferred loan costs |
1,523,722 | 1,513,131 | 1,459,965 | 1,449,349 | ||||||||||||
| Allowance for loan and lease losses |
(19,123 | ) | (18,436 | ) | (18,080 | ) | (17,361 | ) | ||||||||
| Loans, net |
1,504,599 | 1,494,695 | 1,441,885 | 1,431,988 | ||||||||||||
| Premises and equipment, net |
7,942 | 7,740 | 8,129 | 8,279 | ||||||||||||
| Accrued interest receivable |
7,722 | 7,708 | 7,499 | 7,799 | ||||||||||||
| Intangible assets, net |
10,005 | 10,255 | 10,505 | 11,005 | ||||||||||||
| Other real estate owned |
459 | — | — | 4,600 | ||||||||||||
| Deferred tax asset, net |
20,875 | 22,220 | 23,017 | 22,847 | ||||||||||||
| Other assets |
22,527 | 12,036 | 13,121 | 19,893 | ||||||||||||
| Total assets |
$ | 2,043,534 | $ | 2,041,034 | $ | 1,731,578 | $ | 1,792,375 | ||||||||
| LIABILITIES |
||||||||||||||||
| Deposits |
||||||||||||||||
| Demand (non-interest bearing) |
$ | 506,641 | $ | 787,393 | $ | 405,251 | $ | 334,498 | ||||||||
| Savings, money market and interest checking |
1,005,048 | 890,587 | 903,514 | 804,502 | ||||||||||||
| Time deposits |
125,255 | 71,000 | 155,888 | 357,831 | ||||||||||||
| Time deposits, $100,000 and over |
17,565 | 23,350 | 20,420 | 23,016 | ||||||||||||
| Total deposits |
1,654,509 | 1,772,330 | 1,485,073 | 1,519,847 | ||||||||||||
| Securities sold under agreements to repurchase |
2,588 | 696 | 2,394 | 9,419 | ||||||||||||
| Short-term borrowings |
100,000 | — | 41,000 | 61,000 | ||||||||||||
| Accrued interest payable |
362 | 322 | 406 | 2,475 | ||||||||||||
| Subordinated debenture |
13,401 | 13,401 | 13,401 | 13,401 | ||||||||||||
| Other liabilities |
27,471 | 7,741 | 8,025 | 5,830 | ||||||||||||
| Total liabilities |
1,798,331 | 1,794,490 | 1,550,299 | 1,611,972 | ||||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||
| Preferred stock - authorized 5,000,000 shares, series A, $0.01 par value; 0 and 108,136 shares issued and outstanding at December 31, 2009 and 2008 respectively; |
— | — | 1 | 1 | ||||||||||||
| Series B, $1,000 liquidation value, 45,220 shares issued and outstanding at December 31, 2009 and 2008, respectively |
39,411 | 39,010 | 38,610 | 39,028 | ||||||||||||
| Common stock - authorized, 50,000,000 shares of $1.00 par value; 26,181,291 and 14,563,919 shares issued and outstanding at December 31, 2009 and 2008, respectively |
26,181 | 26,181 | 14,563 | 14,563 | ||||||||||||
| Additional paid-in capital |
196,875 | 196,827 | 146,293 | 145,156 | ||||||||||||
| Accumulated deficit |
(17,175 | ) | (16,242 | ) | (17,029 | ) | (17,517 | ) | ||||||||
| Accumulated other comprehensive gain (loss) |
(89 | ) | 768 | (1,159 | ) | (828 | ) | |||||||||
| Total shareholders’ equity |
245,203 | 246,544 | 181,279 | 180,403 | ||||||||||||
| Total liabilities and shareholders’ equity |
$ | 2,043,534 | $ | 2,041,034 | $ | 1,731,578 | $ | 1,792,375 | ||||||||
| For the years ended: | ||||||||
| Allowance for loan and lease losses |
December 31, 2009 |
December 31, 2008 |
||||||
| Balance in the allowance for loan and lease losses at beginning of period |
$ | 17,361 | $ | 10,233 | ||||
| Loans charged-off: |
||||||||
| Commercial |
6,314 | 733 | ||||||
| Construction |
4,546 | 2,744 | ||||||
| Lease financing |
49 | 55 | ||||||
| Residential mortgage |
328 | 1,992 | ||||||
| Consumer |
127 | 9 | ||||||
| Total |
11,364 | 5,533 | ||||||
| Recoveries: |
||||||||
| Commercial |
53 | — | ||||||
| Construction |
32 | 152 | ||||||
| Lease financing |
27 | 5 | ||||||
| Residential mortgage |
12 | — | ||||||
| Consumer |
2 | 4 | ||||||
| Total |
126 | 161 | ||||||
| Net charge-offs (recoveries) |
11,238 | 5,372 | ||||||
| Provision charged to operations |
13,000 | 12,500 | ||||||
| Balance in allowance for loan and lease losses at end of period |
$ | 19,123 | $ | 17,361 | ||||
| Net charge-offs/average loans |
0.76 | % | 0.38 | % | ||||
| Loan Portfolio | ||||||||||||
| December 31, | September 30, | June 30, | December 31, | |||||||||
| 2009 | 2009 | 2009 | 2008 | |||||||||
| Amount | Amount | Amount | Amount | |||||||||
| Commercial |
$ | 402,232 | $ | 394,316 | $ | 363,524 | $ | 353,219 | ||||
| Commercial mortgage* |
569,434 | 562,611 | 522,510 | 488,986 | ||||||||
| Construction |
207,184 | 227,226 | 255,504 | 305,889 | ||||||||
| Total commercial loans |
1,178,850 | 1,184,153 | 1,141,538 | 1,148,094 | ||||||||
| Direct financing leases |
78,802 | 81,097 | 80,774 | 85,092 | ||||||||
| Residential mortgage |
85,759 | 75,413 | 64,934 | 57,636 | ||||||||
| Consumer and other loans |
178,608 | 170,238 | 170,999 | 157,446 | ||||||||
| 1,522,019 | 1,510,901 | 1,458,245 | 1,448,268 | |||||||||
| Unamortized costs (fees) |
1,703 | 2,230 | 1,720 | 1,081 | ||||||||
| Total loans, net of unamortized fees and costs |
$ | 1,523,722 | $ | 1,513,131 | $ | 1,459,965 | $ | 1,449,349 | ||||
| Supplemental loan data : |
||||||||||||
| Construction 1-4 family |
$ | 100,088 | $ | 119,752 | $ | 124,443 | $ | 163,718 | ||||
| Construction commercial, acquisition and development |
107,096 | 107,474 | 131,061 | 142,171 | ||||||||
| $ | 207,184 | $ | 227,226 | $ | 255,504 | $ | 305,889 | |||||
| * | At December 31, 2009, owner occupied loans amounted to $104 million, or 18% of commercial mortgages. |
| Average balance sheet and net interest income (Dollars in thousands) |
Three months ended December 31, 2009 | Three months ended December 31, 2008 | ||||||||||||||||||
| Average Balance |
Interest | Average Rate |
Average Balance |
Interest | Average Rate |
|||||||||||||||
| Assets: |
||||||||||||||||||||
| Interest-earning assets: |
||||||||||||||||||||
| Loans net of unearned discount |
$ | 1,515,632 | $ | 18,727 | 4.94 | % | $ | 1,460,204 | $ | 20,765 | 5.69 | % | ||||||||
| Investment securities-taxable |
111,548 | 1,198 | 4.30 | % | 116,816 | 1,555 | 5.32 | % | ||||||||||||
| Investment securities-nontaxable* |
34,709 | 712 | 8.20 | % | — | — | — | |||||||||||||
| Interest bearing deposits at Federal Reserve Bank |
79,122 | 51 | 0.26 | % | 1,322 | 1 | 0.30 | % | ||||||||||||
| Federal funds sold |
39,243 | 30 | 0.31 | % | 37,634 | 95 | 1.01 | % | ||||||||||||
| Net interest-earning assets |
1,780,254 | 20,718 | 4.66 | % | 1,615,976 | 22,416 | 5.55 | % | ||||||||||||
| Allowance for loan and lease losses |
(18,946 | ) | (15,853 | ) | ||||||||||||||||
| Other assets |
157,708 | 177,512 | ||||||||||||||||||
| $ | 1,919,016 | $ | 1,777,635 | |||||||||||||||||
| Liabilities and Shareholders’ Equity: |
||||||||||||||||||||
| Deposits: |
||||||||||||||||||||
| Demand (non-interest bearing) |
$ | 615,081 | $ | 359,924 | ||||||||||||||||
| Interest bearing deposits |
||||||||||||||||||||
| Interest checking |
420,498 | $ | 1,488 | 1.42 | % | 230,213 | $ | 1,529 | 2.66 | % | ||||||||||
| Savings and money market |
505,898 | 1,655 | 1.31 | % | 457,591 | 1,975 | 1.73 | % | ||||||||||||
| Time |
76,192 | 218 | 1.14 | % | 397,009 | 3,250 | 3.27 | % | ||||||||||||
| Total interest bearing deposits |
1,002,588 | 3,361 | 1.34 | % | 1,084,813 | 6,754 | 2.49 | % | ||||||||||||
| Total deposits |
1,617,669 | 0.83 | % | 1,444,737 | 1.87 | % | ||||||||||||||
| Short term borrowings |
29,837 | 50 | 0.68 | % | 122,992 | 510 | 1.66 | % | ||||||||||||
| Repurchase agreements |
1,602 | 4 | 1.04 | % | 2,604 | 13 | 1.83 | % | ||||||||||||
| Subordinated debt |
13,401 | 216 | 6.44 | % | 13,401 | 234 | 6.99 | % | ||||||||||||
| Net interest bearing liabilities |
1,047,428 | 3,631 | 1.39 | % | 1,223,810 | 7,511 | 2.45 | % | ||||||||||||
| Other liabilities |
8,246 | 10,020 | ||||||||||||||||||
| Total Liabilities |
1,670,755 | 1,593,754 | ||||||||||||||||||
| Shareholders’ equity |
248,261 | 183,881 | ||||||||||||||||||
| $ | 1,919,016 | $ | 1,777,635 | |||||||||||||||||
| Net interest income on tax equivalent basis* |
17,087 | 14,905 | ||||||||||||||||||
| Tax equivalent adjustment |
238 | — | ||||||||||||||||||
| Net interest income |
$ | 16,849 | $ | 14,905 | ||||||||||||||||
| Net interest margin * |
3.84 | % | 3.69 | % | ||||||||||||||||
| * | Full taxable equivalent basis to be comparable to the interest income of all other categories , using a 34% statutory tax rate |
| Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
| Selected operating ratios |
2009 | 2008 | 2009 | 2008 | ||||||||||||
| Return on average assets |
0.01 | % | nm | 0.22 | % | nm | ||||||||||
| Return on average equity |
0.05 | % | nm | 1.99 | % | nm | ||||||||||
| Net interest margin |
3.84 | % | 3.69 | % | 3.74 | % | 3.44 | % | ||||||||
| Efficiency ratio |
71.11 | % | nm | 73.29 | % | nm | ||||||||||
| Book value per share (1) |
$ | 7.64 | $ | 9.21 | $ | 7.64 | $ | 9.21 | ||||||||
|
(1) Excludes Series B Preferred Shares issued to the US Treasury and the associated book value ‘nm’ – not meaningful |
| |||||||||||||||
| Asset quality ratios |
December 31, 2009 |
September 30, 2009 |
June 30, 2009 |
December 31, 2008 |
||||||||||||
| Nonperforming loans to total loans |
1.66 | % | 1.77 | % | 2.09 | % | 0.88 | % | ||||||||
| Nonperforming assets to total assets |
1.26 | % | 1.31 | % | 1.76 | % | 0.97 | % | ||||||||
| Allowance for loan and lease losses to total loans |
1.26 | % | 1.22 | % | 1.24 | % | 1.20 | % | ||||||||
| Nonaccrual loans |
$ | 12,270 | $ | 11,776 | $ | 8,716 | $ | 8,729 | ||||||||
| Loans 90 days past due still accruing interest |
$ | 12,994 | $ | 15,012 | $ | 21,779 | $ | 4,055 | ||||||||
| Other real estate owned |
$ | 459 | $ | — | $ | — | $ | 4,600 | ||||||||