The Bancorp, Inc. Reports First Quarter 2021 Financial Results
04/29/2021 - 04:05 PM
The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the first quarter of 2021.
Highlights
For the quarter ended March 31, 2021, The Bancorp earned net income of $26.1 million from continuing operations, and $0.44 diluted earnings per share from combined continuing and discontinued operations.
Return on assets and equity for the quarter ended March 31, 2021 amounted to 1.6% and 18% , respectively, compared to 1.6% and 17% , respectively, for the quarter ended December 31, 2020. (all percentages “annualized”.)
Net interest margin amounted to 3.34% for the quarter ended March 31, 2021, compared to 3.34% for the quarter ended March 31, 2020 and 3.58% for the quarter ended December 31, 2020.
Net interest income increased 25% to $53.8 million for the quarter ended March 31, 2021, compared to $42.9 million for the quarter ended March 31, 2020.
Average loans and leases, including loans at fair value, increased 37% to $4.48 billion for the quarter ended March 31, 2021, compared to $3.27 billion for the quarter ended March 31, 2020.
Prepaid, debit card and related fees increased 4% to $19.2 million for the quarter ended March 31, 2021, compared to $18.5 million for the quarter ended March 31, 2020. Gross dollar volume (GDV), representing total spend on cards, increased 23% period over period.
SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and advisor financing loans increased 45% year over year and 5% quarter over quarter to $1.68 billion at March 31, 2021.
Small Business Loans, including those held at fair value, increased 16% year over year to $692.1 million at March 31, 2021, exclusive of $190.3 million of Paycheck Protection Program (PPP) balances outstanding at that date. Those balances reflect payments on previously outstanding PPP loans and $95 million of first quarter 2021 PPP loans. There were 630 PPP loans made in first quarter 2021, generating approximate fees of $3.4 million , with 90% of such loans under $350,000. T hose fees will be recognized throughout full year 2021, which is the estimated period of repayment by the U.S. government.
Leasing increased 9% year over year to $484.3 million at March 31, 2021.
The average interest rate on $6.04 billion of average deposits and interest-bearing liabilities during the first quarter of 2021 was 0.21% . Average prepaid and debit card account deposits of $4.28 billion for first quarter 2021, reflected an increase of 36% over the $3.15 billion for the quarter ended March 31, 2020.
Consolidated and The Bancorp Bank (“the Bank”) leverage ratios were 8.62% and 8.69% , respectively, at March 31, 2021. The Bancorp and its subsidiary, The Bank, remain well capitalized.
Book value per common share at March 31, 2021 was $10.42 per share compared to $8.69 at March 31, 2020, an increase of 20% , primarily as a result of retained earnings per share.
The Bancorp repurchased 594,428 shares of its common stock at an average cost of $16.82 per share during the three months ended March 31, 2021.
Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “Our business plan for 2021 is in full implementation. The main focus continues to be product and platform expansion with a rigorous focus on building the best payments ecosystem in the financial services industry. Our plan includes a comprehensive and integrated analysis of the market and competitors, and the needed investments to build towards the future and create scalable core competencies that our partners can use to innovate and grow. We also continue to invest heavily in anti-money laundering and compliance to have best-in-class capabilities to meet regulatory guidance and expectations. We are currently on track to meet or exceed our financial targets for 2021. We continue to closely watch the impact of the full reopening of the US economy, Fed policy, government stimulus, interest rates and the virtualization of consumer spending to understand the likely impacts on TBBK. Currently, those impacts are mostly positive for our business model and should drive continued growth in business volumes and profitability into 2022. Lastly, our guidance target for 2021 continues to be $1.70 a share or approximately $100 million in net income. The earnings per share estimates do not include share repurchases that have been previously announced.”
The Bancorp reported net income of $26.0 million , or $0.44 per diluted share, for the quarter ended March 31, 2021, compared to net income of $12.6 million , or $0.22 per diluted share, for the quarter ended March 31, 2020. 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 8.62% , 14.81% , 15.23% and 14.81% , respectively, compared to well-capitalized minimums of 5% , 8% , 10% and 6.5% , respectively.
Conference Call Webcast
You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, April 30, 2021 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com . Or, you may dial 844.775.2543, access code 5792244. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, May 7, 2021 by dialing 855.859.2056, access code 5792244.
The Bancorp, Inc. (NASDAQ: TBBK) is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500. The company’s only subsidiary, The Bancorp Bank (Member FDIC, Equal Housing Lender), has been repeatedly recognized in the payments industry as the Top Issuer of Prepaid Cards (US), a top merchant sponsor bank and a top ACH originator. Specialized lending distinctions include National Preferred SBA Lender, a leading provider of securities backed lines of credit, and one of the few bank-owned commercial vehicle leasing groups in the nation. For more information please visit www.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 “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. These risks and uncertainties include those relating to the on-going COVID-19 pandemic, the impact it will have on our business and the industry as a whole, and the resulting governmental and societal responses. 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 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 earnings release, except as may be required under applicable law.
The Bancorp, Inc.
Financial highlights
Three months ended
Year ended
March 31,
December,
Condensed income statement
2021 (unaudited)
2020 (unaudited)
2020
(dollars in thousands, except per share data)
Net interest income
$
53,757
$
42,911
$
194,866
Provision for credit losses
822
3,579
6,352
Non-interest income
ACH, card and other payment processing fees
1,796
1,846
7,101
Prepaid, debit card and related fees
19,208
18,540
74,465
Net realized and unrealized gains (losses) on commercial
loans originated for sale
1,996
(5,156)
(3,874)
Change in value of investment in unconsolidated entity
—
(45)
(45)
Leasing related income
965
833
3,294
Other non-interest income
109
581
3,676
Total non-interest income
24,074
16,599
84,617
Non-interest expense
Salaries and employee benefits
25,658
22,741
101,737
Data processing expense
1,126
1,169
4,712
Legal expense
2,054
913
5,141
FDIC insurance
2,380
2,589
9,808
Software
3,684
3,477
14,028
Other non-interest expense
6,981
7,529
29,421
Total non-interest expense
41,883
38,418
164,847
Income from continuing operations before income taxes
35,126
17,513
108,284
Income tax expense
9,066
4,352
27,688
Net income from continuing operations
26,060
13,161
80,596
Discontinued operations
Loss from discontinued operations before income taxes
(124)
(775)
(3,816)
Income tax benefit
(29)
(205)
(3,304)
Net loss from discontinued operations, net of tax
(95)
(570)
(512)
Net income
$
25,965
$
12,591
$
80,084
Net income per share from continuing operations - basic
$
0.45
$
0.23
$
1.40
Net loss per share from discontinued operations - basic
$
—
$
(0.01)
$
(0.01)
Net income per share - basic
$
0.45
$
0.22
$
1.39
Net income per share from continuing operations - diluted
$
0.44
$
0.23
$
1.38
Net loss per share from discontinued operations - diluted
$
—
$
(0.01)
$
(0.01)
Net income per share - diluted
$
0.44
$
0.22
$
1.37
Weighted average shares - basic
57,372,337
57,220,844
57,474,612
Weighted average shares - diluted
59,294,081
57,926,785
58,411,222
Balance sheet
March 31,
December 31,
September 30,
March 31,
2021 (unaudited)
2020
2020 (unaudited)
2020 (unaudited)
(dollars in thousands)
Assets:
Cash and cash equivalents
Cash and due from banks
$
7,838
$
5,984
$
6,220
$
13,610
Interest earning deposits at Federal Reserve Bank
1,738,749
339,531
294,758
105,978
Total cash and cash equivalents
1,746,587
345,515
300,978
119,588
Investment securities, available-for-sale, at fair value
1,128,459
1,206,164
1,264,903
1,353,278
Commercial loans, at fair value (held-for-sale at March 31, 2020)
1,780,762
1,810,812
1,849,947
1,716,450
Loans, net of deferred fees and costs
2,827,076
2,652,323
2,488,760
1,985,755
Allowance for credit losses
(16,419)
(16,082)
(15,727)
(14,883)
Loans, net
2,810,657
2,636,241
2,473,033
1,970,872
Federal Home Loan Bank and Atlantic Central Bankers Bank stock
1,368
1,368
1,368
1,142
Premises and equipment, net
17,196
17,608
15,849
17,148
Accrued interest receivable
20,164
20,458
18,852
15,660
Intangible assets, net
2,746
2,845
2,563
2,857
Deferred tax asset, net
10,900
9,757
7,952
12,797
Investment in unconsolidated entity, at fair value
31,047
31,294
31,783
34,273
Assets held-for-sale from discontinued operations
106,925
113,650
122,253
134,118
Other assets
90,530
81,129
79,821
79,925
Total assets
$
7,747,341
$
6,276,841
$
6,169,302
$
5,458,108
Liabilities:
Deposits
Demand and interest checking
$
6,231,220
$
5,205,010
$
4,882,834
$
4,512,949
Savings and money market
690,281
257,050
505,928
178,174
Total deposits
6,921,501
5,462,060
5,388,762
4,691,123
Securities sold under agreements to repurchase
42
42
42
42
Short-term borrowings
—
—
—
140,000
Senior debt
98,406
98,314
98,222
—
Subordinated debenture
13,401
13,401
13,401
13,401
Other long-term borrowings
40,085
40,277
40,462
40,813
Other liabilities
77,142
81,583
69,954
74,625
Total liabilities
$
7,150,577
$
5,695,677
$
5,610,843
$
4,960,004
Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par
57,248
57,551
57,491
57,326
Additional paid-in capital
370,481
377,452
375,985
372,218
Retained earnings
154,418
128,453
104,282
60,960
Accumulated other comprehensive income
14,617
17,708
20,701
7,600
Total shareholders' equity
596,764
581,164
558,459
498,104
Total liabilities and shareholders' equity
$
7,747,341
$
6,276,841
$
6,169,302
$
5,458,108
Average balance sheet and net interest income
Three months ended March 31, 2021
Three months ended March 31, 2020
(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**
$
4,476,617
$
47,811
4.27%
$
3,262,378
$
39,159
4.80%
Leases-bank qualified*
6,982
118
6.76%
10,975
200
7.29%
Investment securities-taxable
1,193,009
8,808
2.95%
1,395,545
10,495
3.01%
Investment securities-nontaxable*
4,042
35
3.46%
5,174
39
3.02%
Interest earning deposits at Federal Reserve Bank
747,845
183
0.10%
493,876
1,623
1.31%
Net interest earning assets
6,428,495
56,955
3.54%
5,167,948
51,516
3.99%
Allowance for credit losses
(16,069)
(10,176)
Assets held-for-sale from discontinued operations
109,128
853
3.13%
137,286
1,275
3.71%
Other assets
214,171
226,881
$
6,735,725
$
5,521,939
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking
$
5,501,697
$
1,617
0.12%
$
4,353,690
$
6,695
0.62%
Savings and money market
407,186
149
0.15%
173,575
50
0.12%
Time deposits
—
—
—
319,505
1,483
1.86%
Total deposits
5,908,883
1,766
0.12%
4,846,770
8,228
0.68%
Short-term borrowings
13,055
8
0.25%
56,813
165
1.16%
Repurchase agreements
41
—
—
72
—
—
Subordinated debentures
13,401
113
3.37%
13,401
162
4.84%
Senior debt
100,140
1,279
5.11%
—
—
—
Total deposits and liabilities
6,035,520
3,166
0.21%
4,917,056
8,555
0.70%
TBBK Rankings
#738 Ranked by Stock Gains
TBBK Stock Data
Industry
Commercial Banking
Sector
Finance and Insurance
Tags
Finance, Regional Banks, Finance and Insurance, Commercial Banking
About TBBK
the bancorp, inc. (nasdaq: tbbk) is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the fortune 500. the company’s subsidiary, the bancorp bank (member fdic, equal housing lender), has been repeatedly recognized in the payments industry as the top issuer of prepaid cards (us), a top merchant sponsor bank and a top ach originator. specialized lending distinctions include national preferred sba lender, a leading provider of securities-backed lines of credit, and one of the few bank-owned commercial vehicle leasing groups in the nation. for more information please visit www.thebancorp.com
