The Bancorp Inc. of Wilmington, Del., said last week it has repaid the $45.2 million it received through the Troubled Asset Relief Program.
The $2 billion-asset company repurchased all the outstanding preferred stock it issued to the Treasury Department under the Capital Purchase Program. Bancorp received the Tarp funds in December 2008.
It said its leverage ratio exceeds 10% after the Tarp repayment, double the regulatory requirement to be considered a well-capitalized institution.
Because of the repurchase, $3.7 million of annualized dividends and accretion that had reduced earnings will be eliminated, making available roughly $5.6 million of additional earnings potential to common shareholders on a pretax basis.
Bancorp said it will recognize a one-time noncash charge of $5.6 million in the first quarter as a result of the payment.
The bank earned $5 million in 2009, compared with a $41.1 million loss in 2008. Noncurrent loans nearly doubled last year, to $25.2 million, or 1.66% of total loans.
The bank also charged off $11.3 million in loans, and added $13 million to its loan loss reserves.
