The Bancorp in Wilmington, Del., has returned to profitability after reporting no more costs tied to an outstanding regulatory order.
The $4.4 billion-asset company said in a press release Thursday that it earned $8 million in the first quarter. The Bancorp lost $11 million a year earlier and $96.5 million for the full year in 2016.
Noninterest expenses fell 31% to $37.8 million. The Bancorp reported no costs tied to beefing up Bank Secrecy Act compliance; those expenses totaled $29.1 million in 2016.
Net interest income rose 21% to $24.9 million. Total loans increased by 13.5% to $1.3 million. The net interest margin widened by 14 basis points to 2.70%.
Small Business Administration loans increased by 11% to $370 million.
Noninterest income increased 29% to $24.2 million. The company reported a $5.4 million gain from loan sales. Service fees on deposit accounts doubled to $1.7 million.
The company put $1 million in its loan-loss allowance.
"While 2016 was a very difficult year for our company, first quarter 2017 financial results reflected the planned return to profitability,” Damian Kozlowski, The Bancorp's CEO, said in the release.
“While we did incur financial losses in 2016, it did set the stage to make progress on many key issues that faced the company,” he added. “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.”