Item 7.01. Regulation FD Disclosure.
In prior years, The Bancorp Bank (the "Bank"), the wholly-owned subsidiary of
The Bancorp, Inc. (the "Company"), has securitized certain of its commercial
real estate loans. As previously disclosed by the Company in its periodic
filings and investor communications, if these loans are not sold or securitized,
they will be held on the balance sheet as interest-earning assets. Currently,
the Bank has decided to retain an existing portfolio of commercial real estate
loans totaling $1.6 billion on its balance sheet. Additionally, the Bank is not
planning any future securitizations.
Damian Kozlowski, President of the Bank and CEO of the Company states: "In the
3rd quarter of 2020, we made a strategic determination as to our securitization
business. As has been noted in prior Company disclosure and investor
communications, we have been evaluating our securitization platform and its loan
portfolio. After assessing its current profitability, market conditions and
credit risk, we have decided to discontinue future securitization activity. The
loan portfolio, comprised almost entirely of multi-family loans that have
experienced few deferrals and delinquencies, will amortize over the next 3-5
years and be replaced by loans originated in other areas. We expect income from
the portfolio to be stable over the first 2 years. A portion of the portfolio
may be sold as whole loans as space is needed on our balance sheet for other
lending activities. Additionally, in order to align the reduced securitization
activities with our staffing needs, we have engaged in staff reductions. Our
real estate team in our commercial SBA business will continue to originate
select transactions."
Forward-Looking Statements
This Current Report on Form 8-K contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements can generally be identified by our use of
forward-looking terminology such as "may," "trend," "will," "continue,"
"expect," "intend," "anticipate," "estimate," "believe," "look forward" or other
similar words or terms. Because such statements include risks, uncertainties and
contingencies, actual results may differ materially from the expectations,
intentions, beliefs, plans or predictions of the future expressed or implied by
such forward-looking statements. Factors that can affect future results include,
but are not limited to, those discussed under the heading "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition" in the Company's
filings with the Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statement to reflect new or
changing information or events after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required by law.
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