The Bancorp Inc., a financial holding company, has reported financial results for first quarter 2017.
- Net income of $8.0 million and diluted earnings per share of $0.14.
- Net interest income increased 21% to $24.9 million for the quarter ended March 31, 2017, compared to $20.6 million for the quarter ended March 31, 2016.
- Non-interest income increased 30% to $24.2 million for the quarter ended March 31, 2017, compared to $18.7 million for the quarter ended March 31, 2016.
- Net interest margin increased to 2.70% for the quarter ended March 31, 2017, compared to 2.56% for the quarter ended March 31, 2016.
- Loans and loans held for sale from continuing operations increased 22% to $1.75 billion at March 31, 2017, compared to $1.43 billion at March 31, 2016.
- Direct lease financing increased 51% to $363.2 million at March 31, 2017, from $240.7 million at March 31, 2016, reflecting the impact of organic growth and the purchase of lease receivables.
- Small Business Administration (“SBA”) loans increased 11% to $369.8 million at March 31, 2017, from $334.4 million at March 31, 2016.
- The rate on our average deposits and interest bearing liabilities of $4.10 billion in Q1 2017 was 0.35% with a rate of 0.27% for $2.18 billion of average prepaid card deposits.
- Assets held for sale from discontinued operations decreased 36% to $341.3 million at March 31, 2017, from $536.5 million at March 31, 2016.
- Non-interest expense was reduced by $3.0 million, to $37.8 million for the quarter ended March 31, 2017, compared to $40.8 million for the quarter ended March 31, 2016, excluding BSA lookback expense for 2016.
- Book value per common share at March 31, 2017, of $5.57 per share. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.
The Bancorp reported net income of $8.0 million, or $0.14 earnings per diluted share, for the quarter ended March 31, 2017, compared to a net loss of $10.9 million, or $0.29 loss per diluted share for the quarter ended March 31, 2016. Net income from continuing operations for the quarter ended March 31, 2017, was $6.3 million, or $0.11 earnings per diluted share, compared to a net loss of $10.6 million from continuing operations, or $0.28 loss per diluted share, for the quarter ended March 31, 2016. Income from continuing operations does not include any income which may result from the reinvestment of the proceeds from sales or repayment of the remaining assets in The Bancorp’s discontinued operations. Tier one capital to assets, tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 ratios were 6.96%, 14.74%, 15.09%, and 14.74% respectively, compared to well capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.
Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “While 2016 was a very difficult year for The Bancorp, first quarter 2017 financial results reflect the planned return to profitability. While we did incur financial losses in 2016, it did set the stage to make progress on many key issues that faced The Bancorp. I believe that the actions taken in 2016 have resulted in a much stronger platform and the first quarter was the start of what we believe will be a year of improving performance. In the first quarter, The Bancorp earned $8.0 million in net income or $0.14 cents a share off of $49 million of total revenue, less interest expense. Our earnings showed substantial improvement and revenue momentum continues, while expense cuts and restructuring had a noticeable impact on profitability. I believe this first quarter is a turning point. We have a long way to go to fully implement our integrated business plan but we are on track to deliver better results for all the constituencies that comprise The Bancorp community.”