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The Bancorp, Inc. Reports Fourth Quarter and Fiscal 2008 Results
Posted by: gurufocus (IP Logged)
Date: January 30, 2009 08:02AM

WILMINGTON, Del.--(BUSINESS WIRE)--The Bancorp, Inc. ("Bancorp") (Nasdaq: TBBK), a financial holding company, today reported results for the quarter and year ended December 31, 2008. Press Release: The Bancorp, Inc. Reports Fourth Quarter and Fiscal 2008 Results

WILMINGTON, Del.--(BUSINESS WIRE)--The Bancorp, Inc. ("Bancorp") (Nasdaq: TBBK), a financial holding company, today reported results for the quarter and year ended December 31, 2008.

Fiscal 2008 Financial highlights:

  • Total deposits increased 19% over fiscal 2007 to $1.53 billion
  • Stored Value Solutions (SVS) deposits increased 136% to $380 million since December 31, 2007
  • Health Savings Account (HSA) deposits increased 133% over fiscal 2007 to $211 million
  • Transaction accounts increased 32% over fiscal 2007 to $1.1 billion
  • Loans increased 13% in fiscal 2008 to $1.45 billion
  • Total capital to risk-weighted assets ratio increased to 12.53% at December 31, 2008 from 10.95% at December 31, 2007

Net interest margin

Net interest margin was 3.69 percent in the fourth quarter of 2008 compared to 3.28 percent in the third quarter of 2008; the increase reflects the impact of the low cost deposits generated by the acquisition of SVS.

Betsy Z. Cohen, Bancorp's Chief Executive Officer, said, "During the fourth quarter, Bancorp continued its strong deposit growth. Transactional deposit accounts grew 32% in 2008. However, the weakening economy and illiquidity in the market for certain securities caused us to record a net charge, after taxes, to the securities portfolio of $1.9 million. Additionally, the continuing weakness in the economy led to increases in both the Bancorp’s provision for loan and lease losses and its allowance for loan and lease losses in 2008. The ratio of allowance for loan and lease losses to total loans was 1.20 at December 31, 2008 as compared to .80 at December 31, 2007.”

Financial Results

Bancorp reported a net loss available to common shareholders for the three months ended December 31, 2008 of $877,000, or a loss per share – diluted of $0.06, based on 14,563,919 diluted shares, compared to net income available to common shareholders of $2.9 million, or $0.20 diluted earnings per share, based on 14,382,223 diluted shares, for the three months ended December 31, 2007.

Bancorp reported net loss available to common shareholders for fiscal 2008 of $2.1 million, or a loss per share – diluted of $0.14, based on 14,563,182 diluted shares, compared to net income available to common shareholders of $14.2 million, or $0.98 diluted earnings per share, based on 14,396,069 diluted shares, for fiscal 2007.

Capital Ratios

 

Tier 1

capital to average

assets ratio

 

Tier 1

capital to risk-weighted

assets ratio

 

Total

capital to risk-weighted

assets ratio

AS OF DECEMBER 31, 2008
The Bancorp, Inc. 10.09% 11.38% 12.53%
"Well capitalized" institution (under FDIC regulations) 5.00% 6.00% 10.00%
 
AS OF DECEMBER 31, 2007
The Bancorp, Inc. 9.18% 10.15% 10.95%
"Well capitalized" institution (under FDIC regulations) 5.00% 6.00% 10.00%

Balance Sheet Summary

At December 31, 2008, Bancorp's total assets were $1.83 billion, an increase of $260.9 million or 16.6% from December 31, 2007. Loans grew to $1.45 billion, an increase of $162.6 million or 12.6% from those of December 31, 2007, and deposits increased to $1.53 billion, an increase of $247.0 million or 19.3%, from deposits at December 31, 2007. Total common shares outstanding were 14,563,919 at December 31, 2008 and 14,560,470 at December 31, 2007.

Conference Call Webcast

Interested parties can access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 10:00 AM EST on January 30, 2009 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. The conference call may also be listened to by dialing 800.901.5226 using access code 25930228. For those who are not available to listen to the live broadcast, the replay of the webcast will be available following the live call on Bancorp's investor relations website and telephonically until Friday, February 6, 2009 by dialing 888.286.8010, access code 52288789.

About Bancorp

The Bancorp, Inc. is a financial 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 partner 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.



Stocks Discussed: TBBK,
The Bancorp, Inc.
Financial highlights
(unaudited)
       
Three months ended Year ended
December 31, December 31,
2008 2007 2008 2007
(dollars in thousands except per share data) (dollars in thousands except per share data)
Condensed income statement
Net interest income $ 14,905 $ 13,550 $ 54,219 $ 52,669
Provision for loan and lease losses 3,700 3,150 12,500 5,400
Non-interest income 3,111 3,272 12,283 7,614
Other than temporarily impaired investment securities 3,000 - 11,275 -
Non-interest expense 12,254 8,766 45,500 31,205
Net income (loss) before income tax expense (938) 4,906 (2,773) 23,678
Income tax expense (benefit) (251) 1,925 (900) 9,338
Net income (loss) (687) 2,981 (1,873) 14,340
Less preferred stock dividends and accretion (194) (16) (243) (68)
(Income) loss allocated to Series A preferred shareholders 5 (23) 13 (115)
Net income (loss) available to common shareholders $ (876) $ 2,942 $ (2,103) $ 14,157
 
Basic earnings (loss) per share $ (0.06) $ 0.21 $ (0.14) $ 1.02
 
Diluted earnings (loss) per share $ (0.06) $ 0.20 $ (0.14) $ 0.98
Weighted average shares – basic 14,563,919 14,068,772 14,563,182 13,859,066
Weighted average shares – diluted 14,563,919 14,382,223 14,563,182 14,396,069
 
 
December 31, September 30, June 30, December 31,
2008 2008 2008 2007
Condensed balance sheet
Assets
Federal funds sold $ 87,729 $ 36,485 $ 18,047 $ 40,783
Investment securities 109,712 116,106 118,897 122,215
Loans 1,449,349 1,469,615 1,427,578 1,286,789
Allowance for loan and lease losses (17,361) (15,468) (14,245) (10,233)
Other assets 199,972 174,204 127,129 128,828
Total assets $ 1,829,401 $ 1,780,942 $ 1,677,406 $ 1,568,382
 
Liabilities and shareholders' equity
Transaction accounts $ 1,144,515 $ 1,069,945 $ 786,785 $ 864,254
 
Time deposits 380,847 389,184 527,582 414,064
Total deposits 1,525,362 1,459,129 1,314,367 1,278,318
Short term borrowings 69,419 103,249 152,005 93,846
Subordinated debt 13,401 13,401 13,401 13,401
Long term borrowings 1,000 28,250 20,000 -
Other liabilities 2,791 4,149 4,970 6,558
Shareholder's equity 217,428 172,764 172,663 176,259
Total liabilities and shareholders' equity $ 1,829,401 $ 1,780,942 $ 1,677,406 $ 1,568,382
 
 
Fourth Third Second Fourth
quarter quarter quarter quarter
Average condensed balance sheet average 2008 average 2008 average 2008 average 2007
Assets
Federal funds sold $ 37,634 $ 82,984 $ 21,566 $ 31,880
Investment securities 116,816 115,814 127,544 118,313
Loans 1,460,204 1,444,000 1,396,421 1,269,324
Allowance for loan and lease losses (15,853) (14,808) (11,875) (9,863)
Other assets 178,834 164,891 116,715 60,842
Total assets $ 1,777,635 $ 1,792,881 $ 1,650,371 $ 1,470,496
 
Liabilities and shareholders' equity
Transaction accounts $ 1,050,658 $ 961,358 $ 799,675 $ 731,571
 
Time deposits 397,009 554,142 476,468 423,617
Total deposits 1,447,667 1,515,500 1,276,143 1,155,188
Short term borrowings 101,789 59,039 157,638 144,937
Other borrowings 37,208 38,961 28,456 -
Other liabilities 7,090 5,842 6,626 6,325
Shareholders' equity 183,881 173,539 181,508 164,046
Total liabilities and shareholders' equity $ 1,777,635 $ 1,792,881 $ 1,650,371 $ 1,470,496
 
Loan Portfolio
December 31, September 30, June 30, December 31,
2008 2008 2008 2007
Amount Amount Amount Amount
 
Commercial $ 353,219 $ 354,575 $ 341,304 $ 325,166
Commercial mortgage 488,986 478,534 461,170 369,124
Construction 305,889 332,091 332,088 307,614
Total commercial loans 1,148,094 1,165,200 1,134,562 1,001,904
Direct financing leases 85,092 87,710 90,201 89,519
Residential mortgage 57,636 63,472 52,389 50,193
Consumer loans and others 157,446 151,876 149,186 144,882
1,448,268 1,468,258 1,426,338 1,286,498
Unamortized costs (fees) 1,081 1,357 1,240 291
Total loans, net of unamortized fees and costs $ 1,449,349 $ 1,469,615 $ 1,427,578 $ 1,286,789
 
Supplemental loan data :
Construction 1-4 family $ 163,718 $ 158,310 $ 174,196 $ 167,485
Construction commercial, acquisition and development 142,171 173,781 157,892 140,129
$ 305,889 $ 332,091 $ 332,088 $ 307,614
 
 
Three months ended Year ended
December 31, December 31,
2008 2007 2008 2007
Selected operating ratios
Return on average assets -0.15% 0.81% -0.11% 1.04%
Return on average equity -1.49% 7.27% -1.04% 9.15%
Net interest margin 3.69% 3.80% 3.44% 3.90%
Efficiency ratio 68.02% 52.11% 68.42% 51.76%
Book value per share $ 11.74 $ 12.01 $ 11.74 $ 12.01
 
 
December 31, September 30, June 30, December 31,
2008 2008 2008 2007
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