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. Those 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 value; 57,247,913 and 57,325,556 shares issued and outstanding at March 31, 2021 and 2020, respectively

 

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%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

111,241

 

 

 

 

 

 

 

 

113,582

 

 

 

 

 

Total liabilities

 

6,146,761

 

 

 

 

 

 

 

 

5,030,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

588,964

 

 

 

 

 

 

 

 

491,301

 

 

 

 

 

 

$

6,735,725

 

 

 

 

 

 

 

$

5,521,939

 

 

 

 

 

Net interest income on tax equivalent basis*

 

 

 

$

54,642

 

 

 

 

 

 

 

$

44,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

32

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

54,610

 

 

 

 

 

 

 

$

44,186

 

 

Net interest margin *

 

 

 

 

 

 

 

3.34%

 

 

 

 

 

 

 

3.34%

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020. ** Includes loans held-for-sale at March 31, 2020. All periods include commercial loans, at fair value and non-accrual loans. NOTE: In the table above, the 2021 interest on loans reflects $1.4 million of fees which are not expected to recur. The fees were earned on a short-term line of credit to another institution to initially fund PPP loans, which did not significantly increase average loans or assets. Interest on loans also includes $2.4 million of interest and fees on PPP loans, which represents the remaining recognition of fees on PPP loans made in 2020, and the initial recognition of fees on PPP loans made in 2021. Approximately $3.4 million of fees on the 2021 PPP loans is being recognized throughout full year 2021. Increases in interest earning deposits at the Federal Reserve Bank reflect increased deposits resulting from stimulus payments distributed to a large segment of the population, resulting from December 2020 federal legislation.

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

Three months ended

 

Year ended

 

March 31,

 

March 31,

 

December 31,

 

2021 (unaudited)

 

2020 (unaudited)

 

2020

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

Balance in the allowance for credit losses at beginning of period (1)

$

16,082

 

$

12,875

 

$

12,875

 

 

 

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

 

 

 

SBA non-real estate

 

144

 

 

265

 

 

1,350

Direct lease financing

 

97

 

 

1,193

 

 

2,243

SBLOC

 

15

 

 

 

 

Total

 

256

 

 

1,458

 

 

3,593

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

SBA non-real estate

 

4

 

 

19

 

 

103

Direct lease financing

 

2

 

 

84

 

 

570

Total

 

6

 

 

103

 

 

673

Net charge-offs

 

250

 

 

1,355

 

 

2,920

Provision credited to allowance, excluding commitment provision

 

587

 

 

3,363

 

 

6,127

 

 

 

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

16,419

 

$

14,883

 

$

16,082

Net charge-offs/average loans

 

0.01%

 

 

0.04%

 

 

0.07%

Net charge-offs/average assets

 

 

 

0.02%

 

 

0.05%

(1)

  Excludes activity from assets held-for-sale from discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

Loan portfolio

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

305,446

 

$

255,318

 

$

293,488

 

$

84,946

SBL commercial mortgage

 

320,013

 

 

300,817

 

 

270,264

 

 

233,220

SBL construction

 

20,692

 

 

20,273

 

 

27,169

 

 

48,823

Small business loans *

 

646,151

 

 

576,408

 

 

590,921

 

 

366,989

Direct lease financing

 

484,316

 

 

462,182

 

 

430,675

 

 

445,967

SBLOC / IBLOC**

 

1,622,359

 

 

1,550,086

 

 

1,428,253

 

 

1,156,433

Advisor financing ***

 

58,919

 

 

48,282

 

 

26,600

 

 

Other specialty lending

 

2,251

 

 

2,179

 

 

2,194

 

 

2,711

Other consumer loans ****

 

4,201

 

 

4,247

 

 

3,809

 

 

4,023

 

 

2,818,197

 

 

2,643,384

 

 

2,482,452

 

 

1,976,123

Unamortized loan fees and costs

 

8,879

 

 

8,939

 

 

6,308

 

 

9,632

Total loans, net of unamortized fees and costs

$

2,827,076

 

$

2,652,323

 

$

2,488,760

 

$

1,985,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small business portfolio

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

March 31,

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

647,445

 

$

577,944

 

$

590,314

 

$

371,072

SBL, included in commercial loans, at fair value

 

234,908

 

 

243,562

 

 

250,958

 

 

223,987

Total small business loans

$

882,353

 

$

821,506

 

$

841,272

 

$

595,059

* The preceding table shows small business loans and small business loans held at fair value. The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated. An increase in SBL non-real estate loans from $255.3 million to $305.4 million in the first quarter of 2021 reflected an increase of $24.5 million of PPP loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $190.3 million at March 31, 2021 and $165.7 million at December 31, 2020. In addition, the Bank provided a short-term line of credit to another institution at March 31, 2021 in the amount of $14.6 million to initially fund PPP loans, which is included in the SBL non-real estate category. ** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies. *** In 2020, we began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan to value ratios of 70%, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. **** Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $932,000 and $663,000 at March 31, 2021 and December 31, 2020, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.

Small business loans as of March 31, 2021

 

 

 

 

 

 

 

 

 

Loan principal

 

 

(in millions)

U.S. government guaranteed portion of SBA loans (a)

 

$

349

Paycheck Protection Program loans (a)

 

 

190

Commercial mortgage SBA (b)

 

 

180

Construction SBA (c)

 

 

14

Unguaranteed portion of U.S. government guaranteed loans (d)

 

 

105

Non-SBA small business loans (e)

 

 

34

Total principal

 

$

872

Unamortized fees and costs

 

 

10

Total small business loans

 

$

882

(a) This is the portion of SBA 7a loans (7a) and PPP loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk. (b) Substantially all these loans are made under the SBA 504 Fixed Asset Financing program (504) which dictates origination date loan to value percentages (LTV), generally 50-60%, to which the Bank adheres. (c) Of the $14 million in Construction SBA loans, $11 million are 504 first mortgages with an origination date LTV of 50-60% and $3 million are SBA interim loans with an approved SBA post-construction full takeout/payoff. (d) The $105 million represents the unguaranteed portion of 7a loans which are 70% or more guaranteed by the U.S. government. 7a 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 7a and 504 loans require the personal guaranty of all 20% or greater owners. (e) The $34 million of non-SBA loans is comprised of a $15 million short-term line of credit to initially fund PPP loans with the remaining $19 million mainly comprised of approximately 20 conventional coffee/doughnut/carryout franchisee note purchases. The majority of purchased notes were made to multi-unit operators, are considered seasoned and have performed as agreed. A $2 million guaranty by the seller, for an 11% first loss piece, is in place until August 2021.   Additionally, the CARES Act of 2020 (“the CARES Act”) provided for six months of principal and interest payments on 7a loans which generally ended in fourth quarter 2020 or in first quarter 2021. The Consolidated Appropriations Act, 2021, became law in December 2020 and provides for at least an additional two months of such payments on SBA 7a loans, with up to five months of payments on hotel, restaurant and other more highly impacted loans. Unlike the six months of CARES Act payments, these additional payments are capped at $9,000 per month.

Small business loans by type as of March 31, 2021

 

(Excludes government guaranteed portion of SBA 7a loans, PPP loans, and a line of credit to initially fund PPP loans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial mortgage*

 

SBL construction*

 

SBL non-real estate

 

Total

 

 

% Total

 

 

 

(in millions)

Hotels

 

$

66

 

$

3

 

$

 

$

69

 

 

22%

Full-service restaurants

 

 

15

 

 

1

 

 

3

 

 

19

 

 

5%

Baked goods stores

 

 

4

 

 

 

 

12

 

 

16

 

 

5%

Child day care services

 

 

15

 

 

 

 

1

 

 

16

 

 

5%

Car washes

 

 

10

 

 

1

 

 

 

 

11

 

 

5%

Offices of lawyers

 

 

10

 

 

 

 

 

 

10

 

 

3%

Assisted living facilities for the elderly

 

 

1

 

 

8

 

 

 

 

9

 

 

3%

Limited-service restaurants

 

 

4

 

 

1

 

 

4

 

 

9

 

 

3%

Funeral homes and funeral services

 

 

8

 

 

 

 

 

 

8

 

 

2%

Fitness and recreational sports centers

 

 

5

 

 

1

 

 

2

 

 

8

 

 

2%

Lessors of nonresidential buildings (except miniwarehouses)

 

 

8

 

 

 

 

 

 

8

 

 

2%

General warehousing and storage

 

 

7

 

 

 

 

1

 

 

8

 

 

2%

All other amusement and recreation industries

 

 

5

 

 

 

 

 

 

5

 

 

1%

Outpatient mental health and substance abuse centers

 

 

5

 

 

 

 

 

 

5

 

 

1%

Gasoline stations with convenience stores

 

 

4

 

 

 

 

 

 

4

 

 

1%

Offices of dentists

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other warehousing and storage

 

 

3

 

 

 

 

 

 

3

 

 

1%

New car dealers

 

 

3

 

 

 

 

 

 

3

 

 

1%

Offices of physicians (except mental health specialists)

 

 

3

 

 

 

 

 

 

3

 

 

1%

All other miscellaneous general purpose machinery manufacturing

 

 

3

 

 

 

 

 

 

3

 

 

1%

Automotive body, paint, and interior repair and maintenance

 

 

2

 

 

 

 

1

 

 

3

 

 

1%

All other specialty trade contractors

 

 

1

 

 

 

 

1

 

 

2

 

 

1%

Pet care (except veterinary) services

 

 

2

 

 

 

 

 

 

2

 

 

1%

Sewing, needlework, and piece goods stores

 

 

2

 

 

 

 

 

 

 

2

 

 

1%

Caterers

 

 

2

 

 

 

 

 

 

2

 

 

1%

Amusement arcades

 

 

2

 

 

 

 

1

 

 

3

 

 

1%

Plumbing, heating, and air- conditioning contractors

 

 

2

 

 

 

 

 

 

2

 

 

1%

Offices of real estate agents and brokers

 

 

2

 

 

 

 

 

 

2

 

 

1%

Landscaping services

 

 

 

 

 

 

2

 

 

2

 

 

1%

Independent artists, writers, and performers

 

 

2

 

 

 

 

 

 

2

 

 

1%

Drinking places (alcoholic beverages)

 

 

1

 

 

 

 

1

 

 

2

 

 

1%

All other miscellaneous food manufacturing

 

 

1

 

 

 

 

1

 

 

2

 

 

1%

Sports and recreation instruction

 

 

 

 

 

 

2

 

 

2

 

 

1%

Other**

 

 

45

 

 

1

 

 

24

 

 

70

 

 

20%

Total

 

$

246

 

$

16

 

$

56

 

$

318

 

 

100%

* Of the SBL commercial mortgage and SBL construction loans, $63.5 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values. **Loan types less than $1.5 million are spread over a hundred different classifications such as Commercial Printing, Pet and Pet Supplies Stores, Securities Brokerage, etc.

State diversification as of March 31, 2021

 

(Excludes government guaranteed portion of SBA 7a loans, PPP loans, and a line of credit to initially fund PPP loans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBL commercial mortgage*

 

SBL construction*

 

SBL non-real estate

 

Total

 

 

% Total

 

 

 

(in millions)

Florida

 

$

45

 

$

8

 

$

8

 

$

61

 

 

19%

California

 

 

40

 

 

1

 

 

5

 

 

46

 

 

14%

Pennsylvania

 

 

30

 

 

 

 

4

 

 

34

 

 

11%

Illinois

 

 

23

 

 

 

 

3

 

 

26

 

 

8%

North Carolina

 

 

22

 

 

1

 

 

3

 

 

26

 

 

8%

New York

 

 

15

 

 

3

 

 

5

 

 

23

 

 

7%

Texas

 

 

12

 

 

 

 

5

 

 

17

 

 

5%

Tennessee

 

 

11

 

 

 

 

1

 

 

12

 

 

4%

New Jersey

 

 

4

 

 

 

 

7

 

 

11

 

 

3%

Virginia

 

 

9

 

 

 

 

2

 

 

11

 

 

3%

Georgia

 

 

7

 

 

 

 

2

 

 

9

 

 

3%

Colorado

 

 

3

 

 

2

 

 

1

 

 

6

 

 

2%

Michigan

 

 

3

 

 

 

 

1

 

 

4

 

 

1%

Washington

 

 

3

 

 

 

 

 

 

3

 

 

1%

Ohio

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other States

 

 

16

 

 

1

 

 

9

 

 

26

 

 

10%

Total

 

$

246

 

$

16

 

$

56

 

$

318

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Of the SBL commercial mortgage and SBL construction loans, $63.5 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.

Top 10 loans as of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Type*

 

State

 

SBL commercial mortgage*

 

SBL construction*

 

Total

 

 

 

(in millions)

Lawyers office

 

 

CA

 

$

9

 

$

 

$

9

Hotel

 

 

FL

 

 

9

 

 

 

 

9

General warehouse and storage

 

 

PA

 

 

7

 

 

 

 

7

Hotel

 

 

NC

 

 

6

 

 

 

 

6

Assisted living facility

 

 

FL

 

 

 

 

5

 

 

5

Outpatient mental health and substance abuse center

 

 

FL

 

 

5

 

 

 

 

5

Hotel

 

 

NC

 

 

5

 

 

 

 

5

Fitness and recreation sports center

 

 

PA

 

 

4

 

 

 

 

4

Hotel

 

 

PA

 

 

4

 

 

 

 

4

Hotel

 

 

TN

 

 

4

 

 

 

 

4

Total

 

 

 

 

$

53

 

$

5

 

$

58

 

 

 

 

 

 

 

 

 

 

 

 

 

* All the top 10 loans are 504 SBA loans with 50%-60% origination date loan-to-values. The top 10 loan table above does not include loans to the extent that they are U.S. government guaranteed.

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

 

Type as of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

# Loans

 

 

Balance

 

Weighted average origination date LTV

 

Weighted average minimum interest rate

 

 

 

(dollars in millions)

Multifamily (apartments)

 

 

155

 

$

1,405

 

76%

 

4.77%

Hospitality (hotels and lodging)

 

 

11

 

 

71

 

65%

 

5.75%

Retail

 

 

7

 

 

48

 

71%

 

4.55%

Other

 

 

7

 

 

27

 

70%

 

5.23%

 

 

 

180

 

$

1,551

 

76%

 

4.82%

Fair value adjustment

 

 

 

 

 

(5)

 

 

 

 

Total

 

 

 

 

$

1,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State diversification as of March 31, 2021

 

 

15 largest loans (all multifamily) as of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

Balance

 

 

Origination date LTV

 

 

State

 

 

 

Balance

 

Origination date LTV

(in millions)

 

 

(in millions)

Texas

 

$

432

 

 

77%

 

 

North Carolina

 

 

$

44

 

78%

Georgia

 

 

211

 

 

77%

 

 

Texas

 

 

 

38

 

79%

North Carolina

 

 

114

 

 

77%

 

 

Texas

 

 

 

36

 

80%

Arizona

 

 

112

 

 

76%

 

 

Pennsylvania

 

 

 

34

 

77%

Alabama

 

 

57

 

 

76%

 

 

Texas

 

 

 

30

 

75%

Ohio

 

 

56

 

 

69%

 

 

Nevada

 

 

 

29

 

80%

Other states each <$50 million

 

 

569

 

 

73%

 

 

Texas

 

 

 

27

 

77%

Total

 

$

1,551

 

 

76%

 

 

Arizona

 

 

 

27

 

79%

 

 

 

 

 

 

 

 

 

Mississippi

 

 

 

26

 

79%

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

25

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

25

 

77%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

24

 

77%

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

23

 

79%

 

 

 

 

 

 

 

 

 

Alabama

 

 

 

23

 

77%

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

20

 

79%

 

 

 

 

 

 

 

 

 

15 Largest loans

 

 

$

431

 

78%

Institutional banking loans outstanding at March 31, 2021

 

 

 

 

 

Type

Principal

 

% of total

 

 

(in millions)

 

 

Securities backed lines of credit (SBLOC)

$

1,117

 

66%

Insurance backed lines of credit (IBLOC)

 

505

 

30%

Advisor financing

 

59

 

4%

Total

$

1,681

 

100%

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While equities have fallen in excess of 30% in recent periods, 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. Secondly, 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 March 31, 2021

 

 

 

 

 

 

Principal amount

 

% Principal to collateral

 

(in millions)

 

$

60

 

43%

 

 

17

 

38%

 

 

14

 

27%

 

 

12

 

29%

 

 

10

 

40%

 

 

10

 

20%

 

 

10

 

32%

 

 

8

 

72%

 

 

8

 

23%

 

 

8

 

34%

Total and weighted average

$

157

 

35%

Insurance backed lines of credit (IBLOC) IBLOC loans are backed by the cash value of life insurance policies which have been assigned to us. We lend up to 100% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, seven insurance companies have been approved and, as of April 17, 2021, all were rated Superior (A+ or better) by AM BEST.

Direct lease financing* by type as of March 31, 2021

 

 

 

 

 

 

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Government agencies and public institutions**

$

79

 

16%

Construction

 

75

 

16%

Waste management and remediation services

 

63

 

13%

Real estate, rental and leasing

 

56

 

12%

Retail trade

 

46

 

9%

Transportation and warehousing

 

29

 

6%

Health care and social assistance

 

26

 

5%

Professional, scientific, and technical services

 

18

 

4%

Wholesale trade

 

15

 

3%

Manufacturing

 

11

 

2%

Educational services

 

8

 

2%

Arts, entertainment, and recreation

 

6

 

1%

Other

 

52

 

11%

Total

$

484

 

100%

* Of the total $484 million of direct lease financing, $447 million consisted of vehicle leases with the remaining balance consisting of equipment leases. ** Includes public universities and school districts.

Direct lease financing by state as of March 31, 2021

 

 

 

 

 

State

 

Principal balance

 

% Total

 

 

(in millions)

 

 

Florida

$

83

 

17%

California

 

44

 

9%

New Jersey

 

34

 

7%

New York

 

31

 

6%

Pennsylvania

 

25

 

5%

Utah

 

25

 

5%

North Carolina

 

24

 

5%

Maryland

 

23

 

5%

Washington

 

15

 

3%

Connecticut

 

15

 

3%

Texas

 

13

 

3%

Missouri

 

12

 

2%

Georgia

 

10

 

2%

Alabama

 

9

 

2%

Idaho

 

9

 

2%

Other states

 

112

 

24%

Total

$

484

 

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 March 31, 2021

 

 

 

 

 

 

 

The Bancorp, Inc.

8.62%

 

14.81%

 

15.23%

 

14.81%

The Bancorp Bank

8.69%

 

14.95%

 

15.37%

 

14.95%

"Well capitalized" institution (under FDIC regulations-Basel III)

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

As of December 31, 2020

 

 

 

 

 

 

 

The Bancorp, Inc.

9.20%

 

14.43%

 

14.84%

 

14.43%

The Bancorp Bank

9.11%

 

14.27%

 

14.68%

 

14.27%

"Well capitalized" institution (under FDIC regulations-Basel III)

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

March 31,

 

December

 

2021

 

2020

 

2020

Selected operating ratios

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.56%

 

 

0.91%

 

 

1.34%

Return on average equity (1)

 

17.88%

 

 

10.28%

 

 

15.08%

Net interest margin

 

3.34%

 

 

3.34%

 

 

3.45%

(1)

Annualized

Book value per share table

March 31,

 

December 31,

 

 

September 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

Book value per share

$

10.42

 

$

10.10

 

$

9.71

 

$

8.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality table

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

March 31,

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

(dollars in thousands)

Nonperforming loans to total loans

 

0.49%

 

 

0.48%

 

 

0.49%

 

 

0.40%

Nonperforming assets to total assets

 

0.18%

 

 

0.20%

 

 

0.20%

 

 

0.14%

Allowance for credit losses

 

0.58%

 

 

0.61%

 

 

0.63%

 

 

0.75%

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

11,961

 

$

12,227

 

$

12,275

 

$

5,645

Loans 90 days past due still accruing interest

 

1,762

 

 

497

 

 

24

 

 

2,245

Other real estate owned

 

 

 

 

 

 

 

Total nonperforming assets

$

13,723

 

$

12,724

 

$

12,299

 

$

7,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (GDV) (1)

Three months ended

 

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid and debit card GDV

$

28,094,930

 

$

22,523,855

 

$

23,964,508

 

$

22,752,931

(1)

Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank.

Business line quarterly summary

Quarter ended March 31, 2021

(dollars in millions)

 

Balances

% Growth

Major business lines

Average approximate rates *

Balances **

Year over year

 

Linked quarter annualized

Loans

Institutional banking ***

2.5%

$ 1,681

45%

21%

Small Business Lending****

5.0%

882

16%

22%

Leasing

6.4%

484

9%

19%

Commercial real estate (non-SBA at fair value)

4.8%

1,546

nm

nm

Weighted average yield

4.2%

$ 4,593

Non-interest income

% Growth

Deposits

Current quarter

Year over year

Payment solutions (prepaid and debit card issuance)

0.1%

$ 4,281

36%

nm

$ 19.2

4%

Card payment and ACH processing

0.2%

$ 1,048

32%

nm

$ 1.8

nm

  * Average rates are for the quarter ended March 31, 2021. ** Loan and deposit categories are respectively based on period-end and average quarterly balances. *** Institutional Banking loans are comprised of Securities Backed Lines of Credit (SBLOC), collateralized by marketable securities, Insurance Backed Lines of Credit (IBLOC), collateralized by the cash surrender value of insurance policies, and Advisor financing. **** Small Business Lending is substantially comprised of SBA loans. Loan growth percentages exclude short-term PPP loans.

Analysis of Walnut Street* marks

 

 

 

 

 

 

 

Loan activity

 

Marks

 

 

(dollars in millions)

Original Walnut Street loan balance, December 31, 2014

$

267

 

 

 

Marks through December 31, 2014 sale date

 

(58)

 

$

(58)

Sales price of Walnut Street

 

209

 

 

 

Equity investment from independent investor

 

(16)

 

 

 

December 31, 2014 Bancorp book value

 

193

 

 

 

Additional marks 2015 - 2020

 

(46)

 

 

(46)

2021 Marks

 

 

 

 

Payments received

 

(116)

 

 

 

March 31, 2021 Bancorp book value**

$

31

 

 

 

 

 

 

 

 

 

Total marks

 

 

 

$

(104)

Divided by:

 

 

 

 

 

Original Walnut Street loan balance

 

 

 

$

267

Percentage of total mark to original balance

 

 

 

 

39%

* Walnut Street is the investment in unconsolidated entity on the balance sheet which reflects the investment in a securitization of certain loans from the Bank's discontinued loan portfolio. ** Approximately 34% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of March 31, 2021.

Walnut Street portfolio composition as of March 31, 2021

 

 

Collateral type

% of Portfolio

Commercial real estate non-owner occupied - Retail

67.4%

Construction and land

24.3%

Other

8.3%

Total

100.0%

Cumulative analysis of marks on discontinued commercial loan principal as of March 31, 2021

 

Discontinued

 

Cumulative

 

% to original

 

loan principal

 

marks

 

principal

 

 

(dollars in millions)

Commercial loan discontinued principal before marks

$

61

 

 

 

 

 

 

Florida mall held in discontinued other real estate owned

 

42

 

$

(27)

 

 

 

Mark at March 31, 2021

 

 

 

 

(4)

 

 

 

Cumulative mark at March 31, 2021

$

103

 

$

(31)

 

 

30%

Analysis of discontinued commercial loan relationships as of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

Nonperforming

 

Total

 

Performing

 

Nonperforming

 

Total

 

loan principal

 

loan principal

 

loan principal

 

loan marks

 

loan marks

 

marks

 

 

(in millions)

5 loan relationships > $5 million

$

39

 

$

 

$

39

 

$

(3)

 

$

 

$

(3)

Loan relationships < $5 million

 

9

 

 

9

 

 

18

 

 

 

 

(1)

 

 

(1)

 

$

48

 

$

9

 

$

57

 

$

(3)

 

$

(1)

 

$

(4)

Quarterly activity for commercial loan discontinued principal

 

 

 

 

Commercial

 

loan principal

 

(in millions)

 

 

 

Commercial loan discontinued principal December 31, 2020 before marks

$

64

Quarterly paydowns and other reductions

 

(3)

Commercial loan discontinued principal March 31, 2021 before marks

 

61

Marks March 31, 2021

 

(4)

Net commercial loan exposure March 31, 2021

 

57

Residential mortgages

 

29

Net loans

 

86

Florida mall in other real estate owned

 

15

6 properties in other real estate owned

 

6

Total discontinued assets at March 31, 2021

$

107

Discontinued commercial loan composition as of March 31, 2021

 

 

 

 

 

 

 

 

 

Collateral type

Unpaid principal balance

 

Mark at March 31, 2021

 

Mark as % of portfolio

 

 

(in millions)

Commercial real estate - non-owner occupied:

 

 

 

 

 

 

 

 

Retail

$

4

 

$

(0.6)

 

 

15%

Office

 

2

 

 

 

 

Other

 

18

 

 

(0.1)

 

 

1%

Construction and land

 

10

 

 

(0.1)

 

 

1%

Commercial non-real estate and industrial

 

3

 

 

(0.1)

 

 

3%

1 to 4 family construction

 

7

 

 

(2.5)

 

 

36%

First mortgage residential non-owner occupied

 

8

 

 

 

 

Commercial real estate owner occupied:

 

 

 

 

 

 

 

 

Retail

 

7

 

 

(0.7)

 

 

10%

Residential junior mortgage

 

1

 

 

 

 

Other

 

1

 

 

 

 

Total

$

61

 

$

(4.1)

 

 

7%

Less: mark

 

(4)

 

 

 

 

 

 

Net commercial loan exposure March 31, 2021

$

57

 

$

(4.1)

 

 

 

Loan payment deferrals as of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative months deferred (1)

 

Total loan balance deferrals

 

Total non- guaranteed loan balance deferrals

 

Total loan balances

 

% of total loan balances with deferrals

 

% of total non- guaranteed loan balances with deferrals

 

 

(dollars in millions)

 

 

 

Commercial real estate loans held at fair value (excluding SBA loans shown below)

 

6.0

 

$

19

 

$

19

 

$

1,546

 

 

1.2%

 

 

1.2%

Securities backed lines of credit, insurance backed lines of credit & advisor financing

 

 

 

 

 

 

 

1,681

 

 

 

 

SBL commercial mortgage

 

8.6

 

 

44

 

 

24

 

 

437

 

 

10.1%

 

 

5.5%

SBL construction

 

 

 

 

 

 

 

21

 

 

 

 

SBL non-real estate and PPP

 

7.6

 

 

15

 

 

4

 

 

424

 

 

3.5%

 

 

0.9%

Direct lease financing

 

 

 

 

 

 

 

484

 

 

 

 

Discontinued operations

 

8.5

 

 

1

 

 

1

 

 

90

 

 

1.1%

 

 

1.1%

Other consumer loans and specialty lending

 

 

 

 

 

 

 

7

 

 

 

 

Total

 

7.8

 

$

79

 

$

48

 

$

4,690

 

 

1.7%

 

 

1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

  Weighted average of cumulative months deferred for loan payments currently on deferral.

Note: SBL balances above include loans reported in commercial loans, at fair value, in the balance sheet.

Note: At March 31, 2021, SBA 7a loans, included in the three SBL loan balance categories above, totaled $454.0 million of which $105.0 million was not U.S. government guaranteed. The CARES Act provided SBA 7a borrowers six months of principal and interest payments. The Consolidated Appropriations Act, 2021, became law in December 2020 and provided for at least an additional two months of such payments on SBA 7a loans, with up to five months of payments on hotel, restaurant and other more highly impacted loans which began on February 1, 2021.

SBA 7a deferral distribution by type as of March 31, 2021 (comprised of the unguaranteed portion of SBA 7a loans)

 

 

 

 

 

 

 

 

 

Total

 

% Total

 

 

 

(in thousands)

Full-service restaurants

 

$

3,115

 

30%

Hotels*

 

 

1,535

 

15%

Sports and recreation instruction

 

 

1,157

 

11%

Services for the elderly and persons with disabilities

 

 

947

 

9%

Offices of dentists

 

 

829

 

8%

Drinking places (alcoholic beverages)

 

 

726

 

7%

All other amusement and recreation industries

 

 

580

 

6%

Administrative management services

 

 

334

 

3%

Commercial printing

 

 

333

 

3%

Automotive glass replacement shops

 

 

315

 

3%

Cosmetology and barber schools

 

 

244

 

2%

Clothing and furnishings merchant wholesalers

 

 

220

 

2%

Janitorial services

 

 

184

 

1%

Total

 

$

10,519

 

100%

* At March 31, 2021, SBA 7a loans, included in SBL, totaled $454.0 million of which $105.0 million was not U.S. government guaranteed. The CARES Act provided SBA 7a borrowers six months of principal and interest payments. The Consolidated Appropriations Act, 2021, became law in December 2020 and provided for at least an additional two months of such payments on SBA 7a loans, with up to five months of payments on hotel, restaurant and other more highly impacted loans which began on February 1, 2021.

 

The Bancorp, Inc. Andres Viroslav Director, Investor Relations 215-861-7990 aviroslav@thebancorp.com

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