10-Q 1 tbbk-20230930x10q.htm 10-Q tbbk-20230930x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)



x		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
		SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2023



o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
		SECURITIES EXCHANGE ACT OF 1934

For the transition period from: _____ to _____

Commission file number: 000-51018

THE BANCORP, INC.

(Exact name of registrant as specified in its charter)


Delaware		23-3016517
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

409 Silverside Road, Wilmington, DE 19809		(302) 385-5000
(Address of principal executive offices and zip code)		(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol(s)	Name of each Exchange on Which Registered
Common Stock, par value $1.00 per share	TBBK	Nasdaq Global Select

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer x	Accelerated filer o	Non-accelerated filer o
Smaller reporting company o	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of October 27, 2023, there were 53,655,734 outstanding shares of common stock, $1.00 par value.

THE BANCORP, INC

Form 10-Q Index



		Page
Part I Financial Information
Item 1.	Financial Statements:	3

	Consolidated Balance Sheets – September 30, 2023 (unaudited) and December 31, 2022	3

	Unaudited Consolidated Statements of Operations – Three and nine months ended September 30, 2023 and 2022	4

	Unaudited Consolidated Statements of Comprehensive Income – Three and nine months ended September 30, 2023 and 2022	5

	Unaudited Consolidated Statements of Changes in Shareholders’ Equity – Three and nine months ended September 30, 2023 and 2022	6

	Unaudited Consolidated Statements of Cash Flows – Nine months ended September 30, 2023 and 2022	8

	Notes to Unaudited Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	69

Item 4.	Controls and Procedures	69

Part II Other Information

Item 1.	Legal Proceedings	70
Item 1A.	Risk Factors	70
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 6.	Exhibits	71

Signatures		72

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

THE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	September 30,		December 31,
	2023		2022
(in thousands, except share data)		(unaudited)


ASSETS
Cash and cash equivalents
Cash and due from banks	$	4,881	$	24,063
Interest-earning deposits at Federal Reserve Bank		898,533		864,126
Total cash and cash equivalents		903,414		888,189

Investment securities, available-for-sale, at fair value		756,636		766,016
Commercial loans, at fair value		379,603		589,143
Loans, net of deferred loan fees and costs		5,198,972		5,486,853
Allowance for credit losses		(24,145)		(22,374)
Loans, net		5,174,827		5,464,479
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock		20,157		12,629
Premises and equipment, net		28,978		18,401
Accrued interest receivable		34,159		32,005
Intangible assets, net		1,751		2,049
Other real estate owned		18,756		21,210
Deferred tax asset, net		20,379		19,703
Other assets		127,107		89,176
Total assets	$	7,465,767	$	7,903,000

LIABILITIES
Deposits
Demand and interest checking	$	6,455,043	$	6,559,617
Savings and money market		49,428		140,496
Time deposits, $100,000 and over		—		330,000
Total deposits		6,504,471		7,030,113

Securities sold under agreements to repurchase		42		42
Senior debt		95,771		99,050
Subordinated debentures		13,401		13,401
Other long-term borrowings		9,861		10,028
Other liabilities		68,533		56,335
Total liabilities		6,692,079		7,208,969

SHAREHOLDERS' EQUITY
Common stock - authorized, 75,000,000 shares of $1.00 par value; 53,867,129 and 55,689,627
shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		53,867		55,690
Additional paid-in capital		234,320		299,279
Retained earnings		517,587		369,319
Accumulated other comprehensive loss		(32,086)		(30,257)
Total shareholders' equity		773,688		694,031

Total liabilities and shareholders' equity	$	7,465,767	$	7,903,000

The accompanying notes are an integral part of these consolidated statements.

‎

THE BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS


	For the three months ended September 30,				For the nine months ended September 30,
	2023		2022		2023		2022
	(Dollars in thousands, except per share data)
Interest income
Loans, including fees	$	110,592	$	75,579	$	324,229	$	181,320
Investment securities:
Taxable interest		9,647		6,792		28,820		17,115
Tax-exempt interest		40		25		114		74
Interest-earning deposits		8,689		1,525		24,271		2,876
		128,968		83,921		377,434		201,385
Interest expense
Deposits		38,431		16,065		110,307		23,261
Short-term borrowings		—		1,235		234		1,267
Long-term borrowings		128		506		382		506
Senior debt		1,234		1,279		3,793		3,838
Subordinated debentures		293		177		825		432
		40,086		19,262		115,541		29,304
Net interest income		88,882		64,659		261,893		172,081
Provision for credit losses		1,752		822		4,016		4,331
Net interest income after provision for credit losses		87,130		63,837		257,877		167,750

Non-interest income
ACH, card and other payment processing fees		2,553		2,230		7,153		6,552
Prepaid, debit card and related fees		21,513		19,175		67,013		57,865
Net realized and unrealized gains
on commercial loans, at fair value		525		745		4,171		11,262
Leasing related income		1,767		1,048		4,768		3,566
Other		422		228		2,000		698
Total non-interest income		26,780		23,426		85,105		79,943

Non-interest expense
Salaries and employee benefits		30,475		28,001		93,427		77,848
Depreciation and amortization		644		685		2,046		2,224
Rent and related occupancy cost		1,510		1,268		4,265		3,831
Data processing expense		1,404		1,292		4,123		3,727
Printing and supplies		82		154		355		342
Audit expense		446		366		1,255		1,107
Legal expense		1,203		907		3,110		3,175
Legal settlement		—		—		—		1,152
Civil money penalty		—		1,750		—		1,750
Amortization of intangible assets		99		99		298		298
FDIC insurance		806		679		2,233		2,326
Software		4,427		4,001		12,981		12,030
Insurance		1,321		1,314		3,935		3,692
Telecom and IT network communications		305		368		1,044

Bancorp, Inc. [TBBK] Filings
10-Q	[2023-11-09]
10-Q	[2023-08-09]
10-Q	[2023-05-10]
10-K	[2023-03-01]
10-Q	[2022-11-09]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-01]
10-Q	[2021-11-05]
10-Q	[2021-08-09]
10-Q	[2021-05-07]
10-K	[2021-03-15]
10-Q	[2020-11-09]
10-Q	[2020-07-31]
10-Q	[2020-05-11]
10-K	[2020-03-16]
10-Q	[2019-11-08]
10-Q	[2019-08-06]
10-Q	[2019-05-09]
10-K	[2019-03-15]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-16]
10-Q	[2017-11-09]
10-Q	[2017-08-08]
10-Q	[2017-05-10]
10-K	[2017-03-16]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-09]
10-Q	[2015-09-29]
10-Q	[2015-09-29]
10-K	[2015-09-28]
10-Q	[2014-11-10]
10-Q	[2014-08-11]
10-Q	[2014-05-12]
10-K	[2014-03-17]
10-Q	[2013-11-06]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-18]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-03-13]

Bancorp, Inc. [TBBK] Filings

THE BANCORP, INC.