The Bancorp, Inc., north Wilmington, reported lower earnings for the second quarter.
Damian Kozlowski, The Bancorp’s CEO, said, “The sale of our Safe Harbor IRAs in July 2018 concludes our divestiture of non-core assets started when our new business plan was approved by our board of directors in the 3rd quarter of 2016. Like our European and HSA franchises, our safe harbor business was subscale, carried regulatory risks and was unlikely to deliver longer-term growth or innovation to our business model. Therefore, its sale for $65 million or over 10 times 2017 fees will allow our company to likely hit long-term capital targets in the 3rd quarter of this year and provide capital and management focus for growth of our core strategic businesses.”
The Bancorp reported net income of $6.1 million for the second quarter, compared to net income of $18.9 million for the quarter ended June 30, 2017.
Net income for 2017 included a $9.9 million net tax benefit. Shares of The Bancorp fell 7.8 percent on the earnings news.
Pretax income from continuing operations for the second quarter 2018 increased to $8.4 million, or approximately 9 percent higher than the $7.7 million reported for second quarter 2017.
Loans increased 10 percent to $1.51 billion at June 30, 2018, compared to $1.37 billion at June 30, 2017.
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.
The Bancorp, Inc. serves non-bank financial service companies, ranging from start-ups to those on the Fortune 500.
The company’s only subsidiary, The Bancorp Bank is a top issuer of prepaid cards (US), a top merchant sponsor bank and a top Automated Clearing House 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, visit www.thebancorp.com.
