Financial News

The Bancorp, Inc. Reports Second Quarter 2023 Financial Results

The Bancorp, Inc. ("The Bancorp" or “we”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the second quarter of 2023.

Highlights

  • The Bancorp reported net income of $49.0 million, or $0.89 per diluted share, for the quarter ended June 30, 2023, compared to net income of $30.4 million, or $0.53 per diluted share, for the quarter ended June 30, 2022, or a 68% increase in income per diluted share.
  • Return on assets and equity for the quarter ended June 30, 2023 amounted to 2.6% and 27%, respectively, compared to 1.7% and 19%, respectively, for the quarter ended June 30, 2022 (all percentages “annualized”).
  • Net interest income increased 60% to $87.2 million for the quarter ended June 30, 2023, compared to $54.6 million for the quarter ended June 30, 2022. Net interest income increases reflected the impact of continuing Federal Reserve rate increases on the Bancorp’s variable rate loans and securities.
  • Net interest margin amounted to 4.83% for the quarter ended June 30, 2023, compared to 3.17% for the quarter ended June 30, 2022, and 4.67% for the quarter ended March 31, 2023.
  • Loans, net were $5.27 billion at June 30, 2023, compared to $5.49 billion at December 31, 2022 and $4.75 billion at June 30, 2022. Those changes reflected a decrease of 2% quarter over linked quarter and an increase of 11% year over year.
  • Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $4.38 billion, or 15%, to $32.78 billion for the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. The increase reflects continued organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH and other payment fees increased 10% to $24.6 million for the second quarter of 2023 compared to the second quarter of 2022.
  • Small business loans (“SBL”), including those held at fair value, grew 10% year over year to $804.0 million at June 30, 2023, and 2% quarter over linked quarter. That growth excludes Paycheck Protection Program (“PPP”) loan balances which amounted to $3.8 million and $10.3 million at June 30, 2023 and June 30, 2022, respectively.
  • Direct lease financing balances increased 13% year over year to $657.3 million at June 30, 2023, and 1% quarter over linked quarter.
  • At June 30, 2023, real estate bridge loans of $1.83 billion had grown 4% compared to the $1.75 billion balance at March 31, 2023, and 65% compared to the June 30, 2022 balance of $1.11 billion. These real estate bridge loans consist entirely of apartment buildings.
  • Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”) and investment advisor financing loans collectively decreased 15% year over year and decreased 8% quarter over linked quarter to $2.06 billion at June 30, 2023.
  • The average interest rate on $6.60 billion of average deposits and interest-bearing liabilities during the second quarter of 2023 was 2.37%. Average deposits of $6.48 billion for the second quarter of 2023 reflected an increase of 4% from the $6.25 billion of average deposits for the quarter ended June 30, 2022.
  • The Bancorp emphasizes safety and soundness, and liquidity. The vast majority of its funding is comprised of insured and small balance accounts. The Bancorp also has lines of credit with U.S. government agencies totaling approximately $2.8 billion as of June 30, 2023, as well as access to other liquidity.
  • As of June 30, 2023, 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 10.42%, 14.97%, 15.47% and 14.97%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp and its wholly owned subsidiary, The Bancorp Bank, National Association, each remain well capitalized under banking regulations.
  • Book value per common share at June 30, 2023 was $13.74 per share compared to $11.55 per common share at June 30, 2022, an increase of 19%. Increases resulting from retained earnings were partially offset by reductions in the market value of securities available for sale, which are recognized through equity.
  • The Bancorp repurchased 828,727 shares of its common stock at an average cost of $30.17 per share during the quarter ended June 30, 2023.

CEO and President Damian Kozlowski commented, “The Bancorp continued to produce record core profits and exemplar profitability in the second quarter. The outlook remains positive for 2023 and 2024 and we expect increasing profitability and earnings per share, while navigating a difficult market environment for most banks. We are maintaining guidance at $3.60 a share, without including the impact of anticipated share buy backs of $25 million per quarter in 2023.”

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, July 28, 2023 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or you may dial 1.888.259.6580, conference code 93720317. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, August 4, 2023 by dialing 1.877.674.7070, access code 720317#.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association, (or “The Bancorp Bank, N. A.”) provides 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 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 “intend,” “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. 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 and 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 press release, except as may be required under applicable law.

The Bancorp, Inc.

Financial highlights

(unaudited)

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

Consolidated condensed income statements

2023

 

2022

 

2023

 

2022

 

(Dollars in thousands, except per share and share data)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

87,195

 

$

54,569

 

 

$

173,011

 

$

107,422

Provision for (reversal of) credit losses

 

361

 

 

(1,450

)

 

 

2,264

 

 

3,509

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

ACH, card and other payment processing fees

 

2,429

 

 

2,338

 

 

 

4,600

 

 

4,322

Prepaid, debit card and related fees

 

22,177

 

 

20,038

 

 

 

45,500

 

 

38,690

Net realized and unrealized gains on commercial

 

 

 

 

 

 

 

 

 

 

 

loans, at fair value

 

1,921

 

 

3,682

 

 

 

3,646

 

 

10,517

Leasing related income

 

1,511

 

 

1,545

 

 

 

3,001

 

 

2,518

Other non-interest income

 

1,298

 

 

350

 

 

 

1,578

 

 

470

Total non-interest income

 

29,336

 

 

27,953

 

 

 

58,325

 

 

56,517

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

33,167

 

 

25,999

 

 

 

62,952

 

 

49,847

Data processing expense

 

1,398

 

 

1,246

 

 

 

2,719

 

 

2,435

Legal expense

 

949

 

 

1,474

 

 

 

1,907

 

 

2,268

Legal settlement

 

 

 

1,152

 

 

 

 

 

1,152

FDIC insurance

 

472

 

 

673

 

 

 

1,427

 

 

1,647

Software

 

4,317

 

 

4,165

 

 

 

8,554

 

 

8,029

Other non-interest expense

 

9,640

 

 

8,136

 

 

 

20,414

 

 

15,819

Total non-interest expense

 

49,943

 

 

42,845

 

 

 

97,973

 

 

81,197

Income before income taxes

 

66,227

 

 

41,127

 

 

 

131,099

 

 

79,233

Income tax expense

 

17,218

 

 

10,725

 

 

 

32,968

 

 

19,865

Net income

 

49,009

 

 

30,402

 

 

 

98,131

 

 

59,368

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic

$

0.89

 

$

0.54

 

 

$

1.78

 

$

1.04

 

 

 

 

 

 

Net income per share - diluted

$

0.89

 

$

0.53

 

 

$

1.76

 

$

1.03

Weighted average shares - basic

 

54,871,681

 

 

56,801,518

 

 

 

55,160,642

 

 

56,962,000

Weighted average shares - diluted

 

55,269,640

 

 

57,453,730

 

 

 

55,653,950

 

 

57,772,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated balance sheets

June 30,

 

March 31,

 

December 31,

 

June 30,

 

2023 (unaudited)

 

2023 (unaudited)

 

2022

 

2022 (unaudited)

 

(Dollars in thousands, except share data)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

6,496

 

 

$

13,736

 

 

$

24,063

 

 

$

12,873

 

Interest earning deposits at Federal Reserve Bank

 

874,050

 

 

 

773,446

 

 

 

864,126

 

 

 

329,992

 

Total cash and cash equivalents

 

880,546

 

 

 

787,182

 

 

 

888,189

 

 

 

342,865

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities, available-for-sale, at fair value

 

776,410

 

 

 

787,429

 

 

 

766,016

 

 

 

826,616

 

Commercial loans, at fair value

 

396,581

 

 

 

493,334

 

 

 

589,143

 

 

 

995,493

 

Loans, net of deferred fees and costs

 

5,267,574

 

 

 

5,354,347

 

 

 

5,486,853

 

 

 

4,754,697

 

Allowance for credit losses

 

(23,284

)

 

 

(23,794

)

 

 

(22,374

)

 

 

(19,087

)

Loans, net

 

5,244,290

 

 

 

5,330,553

 

 

 

5,464,479

 

 

 

4,735,610

 

Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock

 

20,157

 

 

 

12,629

 

 

 

12,629

 

 

 

1,643

 

Premises and equipment, net

 

26,408

 

 

 

21,319

 

 

 

18,401

 

 

 

16,693

 

Accrued interest receivable

 

34,062

 

 

 

33,729

 

 

 

32,005

 

 

 

19,264

 

Intangible assets, net

 

1,850

 

 

 

1,950

 

 

 

2,049

 

 

 

2,248

 

Other real estate owned

 

20,952

 

 

 

21,117

 

 

 

21,210

 

 

 

18,873

 

Deferred tax asset, net

 

19,215

 

 

 

18,290

 

 

 

19,703

 

 

 

23,344

 

Other assets

 

122,435

 

 

 

99,427

 

 

 

89,176

 

 

 

137,086

 

Total assets

$

7,542,906

 

 

$

7,606,959

 

 

$

7,903,000

 

 

$

7,119,735

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

6,554,967

 

 

$

6,607,767

 

 

$

6,559,617

 

 

$

5,394,562

 

Savings and money market

 

68,084

 

 

 

96,890

 

 

 

140,496

 

 

 

486,189

 

Time deposits, $100,000 and over

 

 

 

330,000

 

 

Total deposits

 

6,623,051

 

6,704,657

 

7,030,113

 

5,880,751

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

42

 

 

 

42

 

 

 

42

 

 

 

42

 

Short-term borrowings

 

 

 

 

 

 

 

 

 

 

385,000

 

Senior debt

 

95,682

 

 

 

99,142

 

 

 

99,050

 

 

 

98,866

 

Subordinated debenture

 

13,401

 

 

 

13,401

 

 

 

13,401

 

 

 

13,401

 

Other long-term borrowings

 

9,917

 

 

 

9,972

 

 

 

10,028

 

 

 

39,125

 

Other liabilities

 

51,646

 

54,597

 

56,335

 

46,014

 

Total liabilities

$

6,793,739

 

$

6,881,811

 

$

7,208,969

 

$

6,463,199

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common stock - authorized, 75,000,000 shares of $1.00 par value; 54,542,284 and 56,865,494 shares issued and outstanding at June 30, 2023 and 2022, respectively

 

54,542

 

 

 

55,330

 

 

 

55,690

 

 

 

56,865

 

Additional paid-in capital

 

256,115

 

 

 

277,814

 

 

 

299,279

 

 

 

323,774

 

Retained earnings

 

467,450

 

 

 

418,441

 

 

 

369,319

 

 

 

298,474

 

Accumulated other comprehensive loss

 

(28,940

)

(26,437

)

(30,257

)

(22,577

)

Total shareholders' equity

 

749,167

 

 

 

725,148

 

 

 

694,031

 

 

 

656,536

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

7,542,906

 

$

7,606,959

 

$

7,903,000

 

$

7,119,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

Three months ended June 30, 2023

 

 

Three months ended June 30, 2022

 

(Dollars in thousands; unaudited)

 

Average

 

 

 

Average

 

Average

 

 

 

Average

Assets:

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs(2)

$

5,730,384

 

 

$

107,299

 

 

7.49

%

 

$

5,467,516

 

 

$

55,100

 

4.03

%

Leases-bank qualified(3)

 

3,801

 

 

 

100

 

 

10.52

%

 

 

3,665

 

 

 

63

 

6.88

%

Investment securities-taxable

 

778,100

 

 

 

9,873

 

 

5.08

%

 

 

879,112

 

 

 

5,432

 

2.47

%

Investment securities-nontaxable(3)

 

3,234

 

 

 

53

 

 

6.56

%

 

 

3,559

 

 

 

31

 

3.48

%

Interest earning deposits at Federal Reserve Bank

 

701,057

 

 

 

8,997

 

 

5.13

%

 

 

545,027

 

 

 

1,004

 

0.74

%

Net interest earning assets

 

7,216,576

 

 

 

126,322

 

 

7.00

%

 

 

6,898,879

 

 

 

61,630

 

3.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(23,895

)

 

 

 

 

 

 

 

 

(20,295

)

 

 

 

 

 

Other assets

 

231,035

 

 

 

 

 

 

 

 

 

243,459

 

 

 

 

 

 

 

$

7,423,716

 

 

 

 

 

 

 

 

$

7,122,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

6,399,750

 

 

$

36,688

 

 

2.29

%

 

$

5,697,507

 

 

$

4,390

 

0.31

%

Savings and money market

 

78,252

 

 

 

728

 

 

3.72

%

 

 

556,847

 

 

 

1,200

 

0.86

%

Total deposits

 

6,478,002

 

 

 

37,416

 

 

2.31

%

 

 

6,254,354

 

 

 

5,590

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

 

 

 

 

 

 

 

11,593

 

 

 

32

 

1.10

%

Repurchase agreements

 

41

 

 

 

 

 

 

 

 

41

 

 

 

 

 

Long-term borrowings

 

9,949

 

 

 

128

 

 

5.15

%

 

 

 

 

 

 

 

Subordinated debentures

 

13,401

 

 

 

271

8.09

%

 

 

13,401

 

 

 

139

4.15

%

Senior debt

 

96,890

 

 

 

1,280

5.28

%

 

 

98,816

 

 

 

1,280

5.18

%

Total deposits and liabilities

 

6,598,283

 

 

 

39,095

 

 

2.37

%

 

 

6,378,205

 

 

 

7,041

 

0.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

88,276

 

 

 

 

 

 

 

 

 

89,422

 

 

 

 

 

 

Total liabilities

 

6,686,559

 

 

 

 

 

 

 

 

 

6,467,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

737,157

 

 

 

 

 

 

 

 

 

654,416

 

 

 

 

 

 

 

$

7,423,716

 

 

 

 

 

 

 

 

$

7,122,043

 

 

 

 

 

 

Net interest income on tax equivalent basis(3)

 

 

 

$

87,227

 

 

 

 

 

$

54,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

32

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

87,195

 

 

 

$

54,569

Net interest margin(3)

 

 

 

 

 

 

 

4.83

%

 

 

 

 

 

 

 

3.17

%

(1)Interest on loans for 2023 and 2022 includes $10,000 and $41,000, respectively, of interest and fees on PPP loans.

(2)Includes commercial loans, at fair value. All periods include non-accrual loans.

(3)Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2023 and 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balance sheet and net interest income

Six months ended June 30, 2023

 

Six months ended June 30, 2022

 

(Dollars in thousands; unaudited)

 

Average

 

 

 

Average

 

Average

 

 

 

Average

Assets:

Balance

 

Interest(1)

 

Rate

 

Balance

 

Interest(1)

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs(2)

$

5,858,040

 

 

$

213,503

 

 

7.29

%

 

$

5,302,850

 

 

$

105,638

 

3.98

%

Leases-bank qualified(3)

 

3,582

 

 

 

169

 

 

9.44

%

 

 

3,839

 

 

 

130

 

6.77

%

Investment securities-taxable

 

776,089

 

 

 

19,173

 

 

4.94

%

 

 

909,017

 

 

 

10,323

 

2.27

%

Investment securities-nontaxable(3)

 

3,288

 

 

 

94

 

 

5.72

%

 

 

3,559

 

 

 

62

 

3.48

%

Interest earning deposits at Federal Reserve Bank

 

640,864

 

 

 

15,582

 

 

4.86

%

 

 

616,865

 

 

 

1,351

 

0.44

%

Net interest earning assets

 

7,281,863

 

 

 

248,521

 

 

6.83

%

 

 

6,836,130

 

 

 

117,504

 

3.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(23,215

)

 

 

 

 

 

 

 

 

(19,075

)

 

 

 

 

 

Other assets

 

234,037

 

 

 

 

 

 

 

 

 

232,402

 

 

 

 

 

 

 

$

7,492,685

 

 

 

 

 

 

 

 

$

7,049,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

6,401,678

 

 

$

69,071

 

 

2.16

%

 

$

5,636,415

 

 

$

5,796

 

0.21

%

Savings and money market

 

105,105

 

 

 

1,947

 

 

3.70

%

 

 

544,515

 

 

 

1,400

 

0.51

%

Time deposits

 

41,933

 

 

 

858

4.09

%

 

 

 

 

 

 

Total deposits

 

6,548,716

 

 

 

71,876

 

 

2.20

%

 

 

6,180,930

 

 

 

7,196

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

10,193

 

 

 

234

 

 

4.59

%

 

 

6,104

 

 

 

32

 

1.05

%

Repurchase agreements

 

41

 

 

 

 

 

 

 

 

41

 

 

 

 

 

Long-term borrowings

 

9,973

 

 

 

254

 

 

5.09

%

 

 

 

 

 

 

 

Subordinated debentures

 

13,401

 

 

 

532

7.94

%

 

 

13,401

 

 

 

255

3.81

%

Senior debt

 

97,985

 

 

 

2,559

5.22

%

 

 

98,770

 

 

 

2,559

5.18

%

Total deposits and liabilities

 

6,680,309

 

 

 

75,455

 

 

2.26

%

 

 

6,299,246

 

 

 

10,042

 

0.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

90,777

 

 

 

 

 

 

 

 

 

95,716

 

 

 

 

 

 

Total liabilities

 

6,771,086

 

 

 

 

 

 

 

 

 

6,394,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

721,599

 

 

 

 

 

 

 

 

 

654,495

 

 

 

 

 

 

 

$

7,492,685

 

 

 

 

 

 

 

 

$

7,049,457

 

 

 

 

 

 

Net interest income on tax equivalent basis(3)

 

 

 

$

173,066

 

 

 

 

 

$

107,462

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

55

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

173,011

 

 

 

$

107,422

Net interest margin(3)

 

 

 

 

 

 

 

4.75

%

 

 

 

 

 

 

 

3.14

%

(1)Interest on loans for 2023 and 2022 includes $20,000 and $481,000, respectively, of interest and fees on PPP loans.

(2)Includes commercial loans, at fair value. All periods include non-accrual loans.

(3)Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2023 and 2022.

 

 

 

 

 

 

 

 

 

Allowance for credit losses

Six months ended

 

Year ended

 

June 30,

 

June 30,

 

December 31,

 

2023 (unaudited)

 

2022 (unaudited)

2022

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Balance in the allowance for credit losses at beginning of period

$

22,374

 

 

$

17,806

 

$

17,806

 

 

 

 

 

 

 

 

 

 

Loans charged-off:

 

 

 

 

 

 

 

 

SBA non-real estate

 

871

 

 

 

844

 

 

 

885

 

Direct lease financing

 

1,439

 

 

 

199

 

 

 

576

 

Consumer - other

 

3

 

 

 

 

 

 

Total

 

2,313

 

 

 

1,043

 

 

1,461

 

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

SBA non-real estate

 

298

 

 

 

33

 

 

 

140

 

SBA commercial mortgage

 

75

 

 

 

 

 

 

 

Direct lease financing

 

175

 

 

 

93

 

 

 

124

 

Consumer - home equity

 

49

 

 

 

 

 

 

Other loans

 

 

 

 

 

 

24

 

Total

 

597

 

 

 

126

 

 

288

 

Net charge-offs

 

1,716

 

 

 

917

 

 

 

1,173

 

Provision for credit losses, excluding commitment provision

 

2,626

 

 

 

2,198

 

 

5,741

 

 

 

 

 

 

 

 

 

 

Balance in allowance for credit losses at end of period

$

23,284

 

 

$

19,087

 

 

$

22,374

 

Net charge-offs/average loans

 

0.03

%

 

 

0.02

%

 

 

0.03

%

Net charge-offs/average assets

 

0.02

%

 

 

0.01

%

 

 

0.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan portfolio

June 30,

 

March 31,

 

December 31,

 

June 30,

 

2023 (unaudited)

 

2023 (unaudited)

 

2022

 

2022 (unaudited)

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL non-real estate

$

117,621

 

$

114,334

 

$

108,954

 

$

112,854

SBL commercial mortgage

 

515,008

 

 

492,798

 

 

474,496

 

 

425,219

SBL construction

 

32,471

33,116

30,864

27,042

Small business loans

 

665,100

 

 

640,248

 

 

614,314

 

 

565,115

Direct lease financing

 

657,316

 

 

652,541

 

 

632,160

 

 

583,086

SBLOC / IBLOC(1)

 

1,883,607

 

 

2,053,450

 

 

2,332,469

 

 

2,274,256

Advisor financing(2)

 

173,376

 

 

189,425

 

 

172,468

 

 

155,235

Real estate bridge loans

 

1,826,227

 

 

1,752,322

 

 

1,669,031

 

 

1,106,875

Other loans(3)

 

55,644

60,210

61,679

63,514

 

 

5,261,270

 

 

5,348,196

 

 

5,482,121

 

 

4,748,081

Unamortized loan fees and costs

 

6,304

6,151

4,732

6,616

Total loans, including unamortized fees and costs

$

5,267,574

$

5,354,347

$

5,486,853

$

4,754,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small business portfolio

June 30,

 

March 31,

 

December 31,

 

June 30,

 

2023 (unaudited)

 

2023 (unaudited)

 

2022

 

2022 (unaudited)

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

SBL, including unamortized fees and costs

$

673,667

$

648,858

$

621,641

 

$

571,559

SBL, included in loans, at fair value

 

134,131

140,909

146,717

 

 

168,579

Total small business loans(4)

$

807,798

$

789,767

$

768,358

 

$

740,138

(1)SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At June 30, 2023 and December 31, 2022, IBLOC loans amounted to $806.1 million and $1.12 billion, 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 (“LTV”) 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.

(3)Includes demand deposit overdrafts reclassified as loan balances totaling $403,000 and $2.6 million at June 30, 2023 and December 31, 2022, respectively. Estimated overdraft charge-offs and recoveries are reflected in the ACL and are immaterial.

(4)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 June 30, 2023

 

 

 

 

 

 

 

 

 

Loan principal

 

 

(Dollars in millions)

U.S. government guaranteed portion of SBA loans(1)

 

$

382

PPP loans(1)

 

 

4

Commercial mortgage SBA(2)

 

 

259

Construction SBA(3)

 

 

12

Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(4)

 

 

105

Non-SBA SBLs

 

 

35

Total principal

 

$

797

Unamortized fees and costs

 

 

11

Total SBLs

 

$

808

(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 $8.0 million in 504 Program first mortgages with an origination date LTV of 50-60%, and $4.0 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.

Small business loans by type as of June 30, 2023

(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 and motels

 

$

74

 

$

 

$

 

$

74

 

 

18%

Full-service restaurants

 

 

24

 

 

4

 

 

2

 

 

30

 

 

7%

Funeral homes and funeral services

 

 

27

 

 

 

 

 

 

27

 

 

7%

Car washes

 

 

17

 

 

2

 

 

 

 

19

 

 

5%

Child day care services

 

 

15

 

 

1

 

 

1

 

 

17

 

 

4%

Outpatient mental health and substance abuse centers

 

 

16

 

 

 

 

 

 

16

 

 

4%

Homes for the elderly

 

 

13

 

 

 

 

 

 

13

 

 

3%

Gasoline stations with convenience stores

 

 

12

 

 

 

 

 

 

12

 

 

3%

Offices of lawyers

 

 

9

 

 

 

 

 

 

9

 

 

2%

Fitness and recreational sports centers

 

 

8

 

 

 

 

2

 

 

10

 

 

2%

Lessors of other real estate property

 

 

8

 

 

 

 

1

 

 

9

 

 

2%

Limited-service restaurants

 

 

2

 

 

2

 

 

3

 

 

7

 

 

2%

General warehousing and storage

 

 

7

 

 

 

 

 

 

7

 

 

2%

Plumbing, heating, and air-conditioning companies

 

 

6

 

 

 

 

1

 

 

7

 

 

2%

Specialty trade contractors

 

 

5

 

 

 

 

1

 

 

6

 

 

1%

Lessors of residential buildings and dwellings

 

 

5

 

 

 

 

 

 

5

 

 

1%

Other miscellaneous durable goods merchant

 

 

5

 

 

 

 

 

 

5

 

 

1%

Technical and trade schools

 

 

 

 

5

 

 

 

 

5

 

 

1%

Packaged frozen food merchant wholesalers

 

 

5

 

 

 

 

 

 

5

 

 

1%

Amusement and recreation industries

 

 

4

 

 

 

 

 

 

4

 

 

1%

Offices of dentists

 

 

2

 

 

1

 

 

 

 

3

 

 

1%

Warehousing and storage

 

 

3

 

 

 

 

 

 

3

 

 

1%

Vocational rehabilitation services

 

 

3

 

 

 

 

 

 

3

 

 

1%

Miscellaneous wood product manufacturing

 

 

3

 

 

 

 

 

 

3

 

 

1%

Other(2)

 

 

88

 

 

 

 

24

 

 

112

 

 

27%

Total

 

$

361

 

$

15

 

$

35

 

$

411

 

 

100%

(1)Of the SBL commercial mortgage and SBL construction loans, $106.0 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.

(2)Loan types of less than $3.0 million are spread over approximately one hundred different business types.

State diversification as of June 30, 2023

(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

 

$

74

 

$

4

 

$

3

 

$

81

 

 

20%

Florida

 

 

68

 

 

1

 

 

3

 

 

72

 

 

18%

North Carolina

 

 

33

 

 

7

 

 

2

 

 

42

 

 

10%

New York

 

 

26

 

 

 

 

3

 

 

29

 

 

7%

New Jersey

 

 

20

 

 

 

 

3

 

 

23

 

 

6%

Pennsylvania

 

 

21

 

 

 

 

 

 

21

 

 

5%

Georgia

 

 

16

 

 

 

 

1

 

 

17

 

 

4%

Illinois

 

 

14

 

 

 

 

1

 

 

15

 

 

4%

Texas

 

 

12

 

 

 

 

4

 

 

16

 

 

4%

Other States <$15 million

 

 

77

 

 

3

 

 

15

 

 

95

 

 

22%

Total

 

$

361

 

$

15

 

$

35

 

$

411

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Of the SBL commercial mortgage and SBL construction loans, $106.0 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.

Top 10 loans as of June 30, 2023

 

 

 

 

 

 

 

 

Type(1)

 

State

 

SBL commercial mortgage

 

 

 

(Dollars in millions)

Mental health and substance abuse center

 

 

FL

 

$

10

Funeral homes and funeral services

 

 

ME

 

 

9

Hotel

 

 

FL

 

 

9

Lawyer's office

 

 

CA

 

 

8

Hotel

 

 

NC

 

 

7

General warehousing and storage

 

 

PA

 

 

7

Hotel

 

 

FL

 

 

6

Hotel

 

 

NY

 

 

6

Hotel

 

 

NC

 

 

6

Mental health and substance abuse center

 

 

NJ

 

 

5

Total

 

 

 

 

$

73

 

 

 

 

 

 

 

 

 

(1)All ten largest loans in our SBL portfolio are SBA 504 Program loans with 50%-60% origination date LTVs. The table above does not include loans to the extent that they are U.S. government guaranteed.

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

Type as of June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

# Loans

 

 

Balance

 

Weighted average

origination date

LTV

 

Weighted average

interest rate

 

 

 

(Dollars in millions)

Real estate bridge loans (multi-family apartment loans recorded at amortized cost)(1)

 

 

136

 

$

1,826

 

71%

 

8.90%

 

 

 

 

 

 

 

 

 

 

 

Non-SBA commercial real estate loans, at fair value:

 

 

 

 

 

 

 

 

 

 

Multi-family (apartment bridge loans)(1)

 

 

12

 

$

216

 

76%

 

8.70%

Hospitality (hotels and lodging)

 

 

2

 

 

28

 

65%

 

9.10%

Retail

 

 

2

 

 

12

 

72%

 

7.30%

Other

 

 

2

 

 

9

 

73%

 

5.20%

 

 

 

18

 

 

265

 

74%

 

8.55%

Fair value adjustment

 

 

 

 

 

(3)

 

 

 

 

Total non-SBA commercial real estate loans, at fair value

 

 

 

 

 

262

 

 

 

 

Total commercial real estate loans

 

 

 

 

$

2,088

 

72%

 

8.87%

(1)In the third quarter of 2021, we resumed the origination of multi-family apartment loans. These are similar to the multi-family apartment loans carried at fair value, but at origination are intended to be held on the balance sheet, so they are not accounted for at fair value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State diversification as of June 30, 2023

 

 

15 largest loans as of June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

Balance

 

 

Origination

date LTV

 

 

State

 

 

 

Balance

 

Origination

date LTV

(Dollars in millions)

 

 

 

 (Dollars in millions)

Texas

 

$

768

 

 

73%

 

 

Texas

 

 

$

43

 

72%

Georgia

 

 

258

 

 

70%

 

 

Texas

 

 

 

42

 

75%

Florida

 

 

220

 

 

70%

 

 

Texas

 

 

 

39

 

75%

Ohio

 

 

91

 

 

69%

 

 

Tennessee

 

 

 

37

 

72%

Tennessee

 

 

84

 

 

70%

 

 

Michigan

 

 

 

37

 

62%

Michigan

 

 

69

 

 

70%

 

 

Florida

 

 

 

33

 

72%

Alabama

 

 

67

 

 

72%

 

 

Texas

 

 

 

33

 

67%

Other States each <$65 million

 

 

531

 

 

72%

 

 

Michigan

 

 

 

33

 

79%

Total

 

$

2,088

 

 

72%

 

 

Oklahoma

 

 

 

31

 

78%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

31

 

62%

 

 

 

 

 

 

 

 

 

Indiana

 

 

 

30

 

76%

 

 

 

 

 

 

 

 

 

Ohio

 

 

 

29

 

74%

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

29

 

69%

 

 

 

 

 

 

 

 

 

Texas

 

 

 

29

 

77%

 

 

 

 

 

 

 

 

 

New Jersey

 

 

 

28

 

77%

 

 

 

 

 

 

 

 

 

15 largest commercial real estate loans

 

 

$

504

 

73%

Institutional banking loans outstanding at June 30, 2023

 

 

 

 

Type

Principal

 

% of total

 

 

(Dollars in millions)

 

 

SBLOC

$

1,078

 

52%

IBLOC

 

806

 

39%

Advisor financing

 

173

 

9%

Total

$

2,057

 

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 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. 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 June 30, 2023

 

 

 

 

 

Principal amount

 

% Principal to collateral

 

(Dollars in millions)

 

$

18

 

41%

 

 

16

 

62%

 

 

14

 

35%

 

 

10

 

32%

 

 

9

 

64%

 

 

9

 

44%

 

 

8

 

70%

 

 

8

 

73%

 

 

6

 

29%

 

 

6

 

51%

Total and weighted average

$

104

 

49%

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 June 30, 2023, all were rated A- (Excellent) or better by AM BEST.

Direct lease financing by type as of June 30, 2023

 

 

 

 

 

 

 

Principal balance(1)

 

% Total

 

 

(Dollars in millions)

 

 

Construction

$

118

 

18%

Government agencies and public institutions(2)

 

82

 

12%

Waste management and remediation services

 

81

 

12%

Real estate and rental and leasing

 

71

 

11%

Retail trade

 

47

 

7%

Health care and social assistance

 

30

 

5%

Manufacturing

 

22

 

3%

Professional, scientific, and technical services

 

21

 

3%

Finance and insurance

 

18

 

3%

Wholesale trade

 

17

 

3%

Transportation and warehousing

 

12

 

2%

Educational services

 

9

 

1%

Mining, quarrying, and oil and gas extraction

 

8

 

1%

Other

 

121

 

19%

Total

$

657

 

100%

(1)Of the total $657.0 million of direct lease financing, $579.0 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

(2)Includes public universities and school districts.

Direct lease financing by state as of June 30, 2023

 

 

 

 

 

State

 

Principal balance

 

% Total

 

 

(Dollars in millions)

 

 

Florida

$

93

 

14%

Utah

 

65

 

10%

California

 

61

 

9%

Pennsylvania

 

40

 

6%

New Jersey

 

39

 

6%

New York

 

33

 

5%

North Carolina

 

32

 

5%

Texas

 

30

 

5%

Maryland

 

29

 

4%

Connecticut

 

27

 

4%

Washington

 

16

 

2%

Idaho

 

16

 

2%

Georgia

 

14

 

2%

Iowa

 

13

 

2%

Ohio

 

12

 

2%

Other States

 

137

 

22%

Total

$

657

 

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 June 30, 2023

 

 

 

 

 

 

 

The Bancorp, Inc.

10.42%

 

14.97%

 

15.47%

 

14.97%

The Bancorp Bank, National Association

11.59%

 

16.67%

 

17.16%

 

16.67%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

 

 

 

 

 

As of December 31, 2022

 

 

 

 

 

 

 

The Bancorp, Inc.

9.63%

 

13.40%

 

13.87%

 

13.40%

The Bancorp Bank, National Association

10.73%

 

14.95%

 

15.42%

 

14.95%

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

5.00%

 

8.00%

 

10.00%

 

6.50%

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

 

2023

 

2022

 

2023

 

2022

Selected operating ratios

 

 

 

 

 

 

 

Return on average assets(1)

2.65%

 

1.71%

 

2.64%

 

1.70%

Return on average equity(1)

26.67%

 

18.63%

 

27.42%

 

18.29%

Net interest margin

4.83%

 

3.17%

 

4.75%

 

3.14%

(1)Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share table

June 30,

 

March 31,

 

December 31,

 

June 30,

 

2023

 

2023

 

2022

 

2022

Book value per share

$

13.74

 

$

13.11

 

$

12.46

 

 

11.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan quality table

June 30,

 

March 31,

 

December 31,

 

June 30,

 

2023

 

2022

 

2022

 

2022

 

(Dollars in thousands)

Nonperforming loans to total loans

0.28%

 

 

0.26%

 

 

0.33%

 

 

0.18%

Nonperforming assets to total assets

0.47%

 

 

0.46%

 

 

0.50%

 

 

0.39%

Allowance for credit losses to total loans

0.44%

 

 

0.44%

 

 

0.41%

 

 

0.40%

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

14,027

 

$

12,938

 

$

10,356

 

$

3,698

Loans 90 days past due still accruing interest

563

 

 

873

 

 

7,775

 

 

4,848

Other real estate owned

20,952

 

21,117

 

21,210

 

18,873

Total nonperforming assets

$

35,542

 

$

34,928

 

$

39,341

 

$

27,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (GDV) (1)

Three months ended

 

June 30,

 

March 31,

 

December 31,

 

June 30,

 

2023

 

2022

 

2022

 

2022

 

(Dollars in thousands)

Prepaid and debit card GDV

$

32,776,154

 

$

34,011,792

 

$

29,454,074

 

$

28,394,897

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

 
 

Business line quarterly summary

Quarter ended June 30, 2023

(Dollars in millions)

 

Balances

% Growth

Major business lines

Average

approximate

rates(1)

Balances(2)

Year over

year

 

Linked

quarter

annualized

Loans

Institutional banking(3)

6.4%

$

2,057

(15%)

(33%)

Small business lending(4)

6.8%

 

808

10%

9%

Leasing

6.9%

 

657

13%

2%

Commercial real estate (non-SBA loans, at fair value)

8.5%

 

262

nm

nm

Real estate bridge loans (recorded at book value)

 

9.0%

 

 

1,826

 

65%

 

17%

 

 

 

 

 

Weighted average yield

7.5%

$

5,610

Non-interest income

% Growth

Deposits: Fintech solutions group

Current

quarter

Year over

year

Prepaid and debit card issuance, and other payments

2.3%

$

5,985

6%

nm

$

24.6

10%

(1)Average rates are for the three months ended June 30, 2023.

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

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

(4)Small Business Lending is substantially comprised of SBA loans. Loan growth percentages exclude short-term PPP loans.

Summary of credit lines available

Notwithstanding that the vast majority of The Bancorp’s funding is comprised of insured and small balance accounts, The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.

 

 

 

 

June 30, 2023

 

(Dollars in thousands)

Federal Reserve Bank

$

2,055,492

Federal Home Loan Bank

 

752,400

Total lines of credit available

$

2,807,892

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.

 

 

 

 

June 30, 2023

Insured

 

91%

Low balance accounts

 

5%

Other uninsured

 

4%

Total deposits

 

100%

Calculation of efficiency ratio(1)

 

 

 

 

 

 

 

Three months ended

 

June 30,

 

December 31,

 

2023

 

2022

 

(Dollars in thousands)

Net interest income

$

87,195

 

$

76,760

Non-interest income

 

29,336

 

 

25,740

Total revenue

$

116,531

 

$

102,500

Non-interest expense

$

49,943

 

$

43,475

 

 

 

 

 

 

Efficiency ratio

 

43%

 

 

42%

(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.

 

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