The Bancorp, Inc. Reports First Quarter Financial Results

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. (“The Bancorp” or the “Company” or “we” or “our”) (NASDAQ: TBBK), a financial holding company, today reported its financial results for the first quarter of 2025.

Highlights

• The Bancorp reported net income of $57.2 million, or $1.19 per diluted share (“EPS”), for the quarter ended March 31, 2025, compared to net income of $56.4 million, or $1.06 per diluted share, for the quarter ended March 31, 2024, or an EPS increase of 12%. While net income increased 1% between these periods, outstanding shares were reduced as a result of increased repurchases that occurred during 2024.

• Return on assets and return on equity for the quarter ended March 31, 2025, amounted to 2.5% and 29%, respectively, compared to 3.0% and 28%, respectively, for the quarter ended March 31, 2024 (all percentages “annualized”).

• Net interest income decreased 3% to $91.7 million for the quarter ended March 31, 2025, compared to $94.4 million for the quarter ended March 31, 2024. Certain loan fees on consumer fintech loans are recorded as non-interest income. Such non-interest income amounted to $3.6 million for the quarter ended March 31, 2025 and $0 for the quarter ended March 31, 2024.

• Net interest margin amounted to 4.07% for the quarter ended March 31, 2025, compared to 5.15% for the quarter ended March 31, 2024, and 4.55% for the quarter ended December 31, 2024.

• Loans, net of deferred fees and costs were $6.38 billion at March 31, 2025, compared to $5.46 billion at March 31, 2024 and $6.11 billion at December 31, 2024. Those changes reflected an increase of 4% quarter over linked quarter and an increase of 17% year over year.

• Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $6.71 billion, or 18%, to $44.65 billion for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. The increase reflected continued organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH, and other payment fees increased 13% to $30.8 million for the first quarter of 2025 compared to the first quarter of 2024. Consumer credit fintech fees amounted to $3.6 million for the first quarter 2025.

• Small business loans (“SBLs”), including those held at fair value, amounted to $1.01 billion at March 31, 2025, or 12% higher year over year, and 3% higher quarter over linked quarter, excluding the impact of loans with related secured borrowings.

• Direct lease financing balances increased 1% year over year to $710.0 million at March 31, 2025, and increased 1% from December 31, 2024.

• Real estate bridge loans of $2.21 billion increased 5% compared to a $2.11 billion balance at December 31, 2024, and increased 5% compared to the March 31, 2024 balance of $2.10 billion. These real estate bridge loans consist entirely of rehabilitation loans for apartment buildings.

• Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”), and investment advisor financing loans collectively increased 3% year over year and increased less than 1% quarter over linked quarter to $1.84 billion at March 31, 2025.

• The average interest rate on $8.44 billion of average deposits and interest-bearing liabilities during the first quarter of 2025 was 2.28%. Average deposits of $8.31 billion for the first quarter of 2025 increased $1.81 billion, or 28% over first quarter 2024.

• As of March 31, 2025, the Company’s Tier 1 capital to average assets (leverage), Tier 1 capital to risk-weighted assets, total capital to risk-weighted assets and common equity Tier 1 to risk-weighted assets ratios were 8.93%, 13.94%, 14.86% and 13.94%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp Bank, National Association also remains well capitalized under banking regulations.

• Book value per common share at March 31, 2025, was $17.66 compared to $15.63 per common share at March 31, 2024, an increase of 13%.

• The Bancorp repurchased 684,445 shares of its common stock at an average cost of $54.79 per share during the quarter ended March 31, 2025. As a result of share repurchases, outstanding shares at March 31, 2025 amounted to 47.0 million, compared to 52.3 million shares at March 31, 2024, or a reduction of 10%.

• The Bancorp emphasizes safety and soundness, and its balance sheet has a risk profile enhanced by the special nature of the collateral supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have experienced various economic stresses.

• The vast majority of The Bancorp’s funding is comprised of FDIC-insured and/or small balance accounts, which adjust to only a portion of changes in rates. The Company also has lines of credit with U.S. government sponsored agencies totaling approximately $3.09 billion as of March 31, 2025, as well as access to other forms of liquidity.

• In its real estate bridge loans (“REBL”) portfolio, the Company has minimal exposure to non-multifamily commercial real estate such as office buildings, and instead has a portfolio largely comprised of rehabilitation bridge loans for apartment buildings. These loans generally have three-year terms with two one-year extensions to allow for the rehabilitation work to be completed and rentals stabilized for an extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders. The REBL portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While the macro-economic environment has challenged the multifamily bridge space, the stability of the Company’s REBL portfolio is evidenced by the estimated values of the underlying collateral. The Company’s $2.2 billion REBL portfolio at March 31, 2025, has a weighted average origination date “as is” loan-to-value ratio of 70%, based on third-party appraisals. Further, the weighted average origination date “as stabilized” LTV, which measures the estimated value of the apartments after the rehabilitation is complete may provide even greater protection.

• As part of the underwriting process, The Bancorp reviews prospective borrowers’ previous rehabilitation experience in addition to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news searches, lien searches, visitations by bank personnel and/or designated engineers, and other information sources.

• Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early identification of potential issues, and expedited action to address on a timely basis.

• Operations and ongoing loan evaluation are overseen by multiple levels of management, in addition to the REBL team’s experienced professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes a separate loan committee specific to REBL, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the REBL team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses methodology (“CECL”), all of which similarly do not report to anyone on the REBL team.

• SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50%-60% LTVs.

• Additional details regarding our loan portfolios are included in the related tables in this press release, as is the summarization of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s risk profile inherent in its loan portfolios, funding and earnings levels, may present opportunities to further increase stockholder value, while still prudently maintaining capital levels.

• In the second quarter of 2024, the Company purchased approximately $900 million of fixed rate government sponsored entity backed commercial and residential mortgage securities of varying maturities, with an approximate 5.11% weighted average yield, and estimated weighted average lives of eight years, to reduce its exposure to lower levels of net interest income. Such purchases would also reduce the additional net interest income which will result if the Federal Reserve increases rates. While there are many variables and limitations to estimating exposure to changes in rates, such purchases and continuing fixed rate loan originations are projected to reduce such exposure to modest levels. In prior years, The Bancorp deferred adding fixed rate securities when yields were particularly low, which has afforded the flexibility to benefit from, and secure, more advantageous securities and loan rates.

“The Bancorp earned $1.19 a share in the first quarter of 2025 or a 12% increase in EPS over the first quarter of 2024,” said Damian Kozlowski, CEO of The Bancorp. “While we had some pressure on revenue from rates, it was mitigated by our balance sheet strategy, and the growth of deposits. Fintech Solutions continues to show significant momentum in both GDV (up 18% year-over-year) and fee growth (up 26% year-over-year). We are confirming guidance of $5.25 a share for 2025. EPS guidance does not include the impact of $150 million of authorized stock buybacks in 2025.”

Conference Call Webcast

You may access the LIVE webcast of The Bancorp’s Quarterly Earnings Conference Call at 8:00 AM ET Friday, April 25, 2025, by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or you may dial 1.800.549.8228, conference ID 80395. You may listen to the replay of the webcast following the live call on The Bancorp’s investor relations website (archived for one year) or telephonically until Friday, May 2, 2025, by dialing 1.888.660.6264, playback code 80395#.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association, provides a variety of services including providing non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, visit https://thebancorp.com/.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp’s business that are not historical facts, are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2025 results. Such forward-looking statements relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2024 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.

Source: The Bancorp, Inc.

The Bancorp, Inc.
Financial highlights
(unaudited)
	Three months ended							Year ended
	March 31,							December 31,
Consolidated condensed income statements	2025			2024				2024
	(Dollars in thousands, except per share and share data)
Net interest income	$	91,743		$	94,418			$	376,241
Provision for credit losses on non-consumer fintech loans		874			2,363				9,319
Provision for credit losses on consumer fintech loans		45,868			—				30,651
Provision (reversal) for unfunded commitments		111			(194	)			(596	)
Provision (reversal) for credit loss on security		—			—				(1,000	)
Non-interest income
Fintech fees
ACH, card and other payment processing fees		5,132			2,964				14,596
Prepaid, debit card and related fees		25,714			24,286				97,413
Consumer credit fintech fees		3,600			—				4,789
Total fintech fees		34,446			27,250				116,798
Net realized and unrealized gains (losses) on commercial
loans, at fair value		361			1,096				2,732
Leasing related income		1,972			388				3,921
Consumer fintech loan credit enhancement		45,868			—				30,651
Other non-interest income		995			648				3,412
Total non-interest income		83,642			29,382				157,514
Non-interest expense
Salaries and employee benefits		33,669			30,280				131,597
Data processing expense		1,205			1,421				5,666
Legal expense		1,957			821				3,081
FDIC insurance		1,053			845				3,579
Software		5,013			4,489				17,913
Other non-interest expense		10,397			8,856				41,389
Total non-interest expense		53,294			46,712				203,225
Income before income taxes		75,238			74,919				292,156
Income tax expense		18,065			18,490				74,616
Net income		57,173			56,429				217,540
Net income per share - basic	$	1.21		$	1.07			$	4.35
Net income per share - diluted	$	1.19		$	1.06			$	4.29
Weighted average shares - basic		47,214,050			52,747,140				50,063,620
Weighted average shares - diluted		47,959,292			53,326,588				50,713,140

Condensed consolidated balance sheets	March 31,				December 31,				September 30,				March 31,
	2025 (unaudited)				2024				2024 (unaudited)				2024 (unaudited)
		(Dollars in thousands, except share data)
Assets:
Cash and cash equivalents
Cash and due from banks	$	9,684			$	6,064			$	8,660			$	9,105
Interest earning deposits at Federal Reserve Bank		1,011,585				564,059				47,105				1,241,363
Total cash and cash equivalents		1,021,269				570,123				55,765				1,250,468
Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss effective December 31, 2023, March 31, 2024, September 30, 2024, and $0 at December 31, 2024		1,488,184				1,502,860				1,588,289				718,247
Commercial loans, at fair value		211,580				223,115				252,004				282,998
Loans, net of deferred fees and costs		6,380,150				6,113,628				5,906,616				5,459,344
Allowance for credit losses		(52,497	)			(44,853	)			(31,004	)			(28,741	)
Loans, net		6,327,653				6,068,775				5,875,612				5,430,603
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock		16,250				15,642				21,717				15,642
Premises and equipment, net		27,130				27,566				28,091				27,482
Accrued interest receivable		42,464				41,713				42,915				37,861
Intangible assets, net		1,154				1,254				1,353				1,552
Other real estate owned		67,129				62,025				61,739				19,559
Deferred tax asset, net		13,585				18,874				9,604				21,764
Credit enhancement asset		20,199				12,909				—				—
Other assets		149,130				182,687				157,501				109,680
Total assets	$	9,385,727			$	8,727,543			$	8,094,590			$	7,915,856
Liabilities:
Deposits
Demand and interest checking	$	8,283,262			$	7,434,212			$	6,844,128			$	6,828,159
Savings and money market		81,320				311,834				81,624				62,597
Total deposits		8,364,582				7,746,046				6,925,752				6,890,756
Short-term borrowings		—				—				135,000				—
Senior debt		96,303				96,214				96,125				95,948
Subordinated debenture		13,401				13,401				13,401				13,401
Other long-term borrowings		13,988				14,081				38,157				38,407
Other liabilities		67,766				68,018				70,829				60,579
Total liabilities	$	8,556,040			$	7,937,760			$	7,279,264			$	7,099,091
Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value; 48,067,178 and 46,980,002 shares issued and outstanding, respectively, at March 31, 2025 and 52,253,037 shares issued and outstanding at March 31, 2024		48,067				47,713				48,231				52,253
Additional paid-in capital		7,470				3,233				26,573				166,335
Retained earnings		836,328				779,155				723,247				618,044
Accumulated other comprehensive (loss) income		(1,840	)			(17,637	)			17,275				(19,867	)
Treasury stock at cost, 1,087,176 shares at March 31, 2025 and 0 shares at March 31, 2024, respectively		(60,338	)			(22,681	)			—				—
Total shareholders' equity		829,687				789,783				815,326				816,765
Total liabilities and shareholders' equity	$	9,385,727			$	8,727,543			$	8,094,590			$	7,915,856

Average balance sheet and net interest income		Three months ended March 31, 2025											Three months ended March 31, 2024
		(Dollars in thousands; unaudited)
	Average							Average				Average							Average
Assets:	Balance				Interest			Rate				Balance				Interest			Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)	$	6,380,615			$	108,802			6.82	%		$	5,717,262			$	114,160		7.99	%
Leases-bank qualified(2)		5,853				139			9.50	%			4,746				116		9.78	%
Investment securities-taxable		1,489,329				18,127			4.87	%			733,599				9,634		5.25	%
Investment securities-nontaxable(2)		6,256				105			6.71	%			2,895				50		6.91	%
Interest earning deposits at Federal Reserve Bank		1,136,402				12,680			4.46	%			874,073				11,884		5.44	%
Net interest earning assets		9,018,455				139,853			6.20	%			7,332,575				135,844		7.41	%
Allowance for credit losses		(44,915	)										(27,158	)
Other assets		345,791											331,756
	$	9,319,331										$	7,637,173
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	8,174,676			$	45,045			2.20	%		$	6,453,866			$	38,714		2.40	%
Savings and money market		136,688				1,330			3.89	%			50,970				447		3.51	%
Total deposits		8,311,364				46,375			2.23	%			6,504,836				39,161		2.41	%
Short-term borrowings		—				—			—				1,373				19		5.54	%
Repurchase agreements		—				—			—				13				—		—
Long-term borrowings		14,050				195			5.55	%			38,517				686		7.12	%
Subordinated debentures		13,401				255			7.61	%			13,401				292		8.72	%
Senior debt		96,244				1,234			5.13	%			95,894				1,233		5.14	%
Total deposits and liabilities		8,435,059				48,059			2.28	%			6,654,034				41,391		2.49	%
Other liabilities		74,537											171,116
Total liabilities		8,509,596											6,825,150
Shareholders' equity		809,735											812,023
	$	9,319,331										$	7,637,173
Net interest income on tax equivalent basis(2)					$	91,794										$	94,453
Tax equivalent adjustment						51											35
Net interest income					$	91,743										$	94,418
Net interest margin(2)									4.07	%									5.15	%

(1) Includes commercial loans, at fair value. All periods include non-accrual loans.

(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024.

Allowance for credit losses	Three months ended						Year ended
	March 31,			March 31,			December 31,
	2025 (unaudited)			2024 (unaudited)			2024
	(Dollars in thousands)
Balance in the allowance for credit losses at beginning of period	$	44,853		$	27,378		$	27,378
Loans charged-off:
SBA non-real estate		62			111			708
Direct lease financing		736			919			4,575
Consumer - home equity		—			—			10
Consumer fintech		44,224			—			19,619
Other loans		—			6			8
Total		45,022			1,036			24,920
Recoveries:
SBA non-real estate		18			4			229
Direct lease financing		260			32			318
Consumer fintech		5,646			—			1,877
Consumer - home equity		—			—			1
Total		5,924			36			2,425
Net charge-offs		39,098			1,000			22,495
Provision for credit losses on non-consumer fintech loans		874			2,363			9,319
Provision for credit losses on consumer fintech loans		45,868			—			30,651
Balance in allowance for credit losses at end of period	$	52,497		$	28,741		$	44,853
Net charge-offs/average loans		0.63%			0.02%			0.40%
Net charge-offs/average assets		0.42%			0.01%			0.28%

Loan portfolio		March 31,			December 31,			September 30,			March 31,
		2025 (unaudited)			2024			2024 (unaudited)			2024 (unaudited)
		(Dollars in thousands)
SBL non-real estate		$	191,750		$	190,322		$	179,915		$	140,956
SBL commercial mortgage			681,454			662,091			665,608			637,926
SBL construction			42,026			34,685			30,158			27,290
Small business loans			915,230			887,098			875,681			806,172
Direct lease financing			709,978			700,553			711,836			702,512
SBLOC / IBLOC(1)			1,577,170			1,564,018			1,543,215			1,550,313
Advisor financing(2)			265,950			273,896			248,422			232,206
Real estate bridge loans			2,212,054			2,109,041			2,189,761			2,101,896
Consumer fintech(3)			574,048			454,357			280,092			—
Other loans(4)			112,322			111,328			46,586			56,163
			6,366,752			6,100,291			5,895,593			5,449,262
Unamortized loan fees and costs			13,398			13,337			11,023			10,082
Total loans, including unamortized fees and costs		$	6,380,150		$	6,113,628		$	5,906,616		$	5,459,344

Small business portfolio	March 31,			December 31,			September 30,			March 31,
	2025 (unaudited)			2024			2024 (unaudited)			2024 (unaudited)
		(Dollars in thousands)
SBL, including unamortized fees and costs	$	925,877		$	897,077		$	885,263		$	816,151
SBL, included in loans, at fair value		83,448			89,902			93,888			109,131
Total small business loans(5)	$	1,009,325		$	986,979		$	979,151		$	925,282

(1) SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At March 31, 2025 and December 31, 2024, IBLOC loans amounted to $535.2 million and $548.1 million, respectively.

(2) In 2020 The Bancorp began originating loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70% of the business enterprise value based on a third-party valuation, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.

(3) Consumer fintech loans consist of $305.3 million of secured credit card loans, with the balance comprised of other short-term extensions of credit.

(4) Includes demand deposit overdrafts reclassified as loan balances totaling $3.3 million and $1.2 million at March 31, 2025 and December 31, 2024, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and are immaterial.

(5) The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated.

Small business loans as of March 31, 2025
		Loan principal
		(Dollars in millions)
U.S. government guaranteed portion of SBA loans(1)		$	391
Commercial mortgage SBA(2)			369
Construction SBA(3)			18
Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(4)			113
Non-SBA SBLs			102
Other(5)			4
Total principal		$	997
Unamortized fees and costs			12
Total SBLs		$	1,009

(1) Includes the portion of SBA 7(a) Program loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.

(2) Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50%-60%, to which The Bancorp adheres.

(3) Includes $15 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $3 million in SBA interim loans with an approved SBA post-construction full takeout/payoff.

(4) Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the collateral must be pledged to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners.

(5) Comprised of $4 million of loans sold that do not qualify for true sale accounting.

Small business loans by type as of March 31, 2025
(Excludes government guaranteed portion of SBA 7(a) Program)
		SBL commercial mortgage(1)			SBL construction(1)			SBL non-real estate			Total				% Total
			(Dollars in millions)
Hotels (except casino hotels) and motels		$	87		$	—		$	—		$	87			14%
Funeral homes and funeral services			30			—			32			62			10%
Full-service restaurants			29			2			2			33			5%
Child day care services			24			1			2			27			5%
Car washes			11			10			—			21			4%
Homes for the elderly			16			—			—			16			3%
Outpatient mental health and substance abuse centers			15			—			—			15			3%
General line grocery merchant wholesalers			13			—			—			13			2%
Gasoline stations with convenience stores			12			—			—			12			2%
Fitness and recreational sports centers			8			—			2			10			2%
Nursing care facilities			9			—			—			9			2%
Offices of lawyers			9			—			—			9			1%
Caterers			7			—			—			7			1%
All other specialty trade contractors			6			—			1			7			1%
Used car dealers			7			—			—			7			1%
Plumbing, heating, and air-conditioning companies			6			—			1			7			1%
Limited-service restaurants			4			—			3			7			1%
General warehousing and storage			6			—			—			6			1%
Appliance repair and maintenance			6			—			—			6			1%
Automotive body, paint, and interior repair			5			—			—			5			1%
Other accounting services			5			—			—			5			1%
Residential remodelers			5			—			—			5			1%
Offices of dentists			5			—			—			5			1%
Other miscellaneous durable goods merchant			5			—			—			5			1%
Other(2)			168			13			35			216			35%
Total		$	498		$	26		$	78		$	602			100%

(1) Of the SBL commercial mortgage and SBL construction loans, $137 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans sold that do not qualify for true sale accounting.

(2) Loan types of less than $5 million are spread over approximately one hundred different business types.

State diversification as of March 31, 2025
(Excludes government guaranteed portion of SBA 7(a) Program loans)
		SBL commercial mortgage(1)			SBL construction(1)			SBL non-real estate			Total				% Total
			(Dollars in millions)
California		$	133		$	5		$	6		$	144			24%
Florida			78			11			4			93			15%
North Carolina			44			—			4			48			8%
New York			41			—			3			44			7%
New Jersey			32			—			7			39			6%
Texas			25			3			6			34			6%
Pennsylvania			19			—			13			32			5%
Georgia			25			2			1			28			5%
Other States			101			5			34			140			24%
Total		$	498		$	26		$	78		$	602			100%

(1) Of the SBL commercial mortgage and SBL construction loans, $137 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans that do not qualify for true sale accounting.

Top 10 loans as of March 31, 2025
Type(1)		State		SBL commercial mortgage
				(Dollars in millions)
General line grocery merchant wholesalers		CA		$	13
Funeral homes and funeral services		ME			13
Funeral homes and funeral services		PA			12
Outpatient mental health and substance abuse center		FL			10
Hotel		FL			8
Lawyer's office		CA			8
Hotel		VA			7
Hotel		NC			7
Charter bus industry		NY			6
Used car dealer		CA			6
Total				$	90
(1) The table above does not include loans to the extent that they are U.S. government guaranteed.

Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:

Type as of March 31, 2025
Type			# Loans			Balance		Weighted average origination date LTV		Weighted average interest rate
			(Dollars in millions)
Real estate bridge loans (multifamily apartment loans recorded at amortized cost)(1)			175		$	2,212		70%		8.53%
Non-SBA commercial real estate loans, at fair value:
Multifamily (apartment bridge loans)(1)			4		$	88		70%		7.47%
Hospitality (hotels and lodging)			1			19		66%		9.75%
Retail			2			12		72%		8.19%
Other			2			9		71%		4.96%
			9			128		69%		7.70%
Fair value adjustment						—
Total non-SBA commercial real estate loans, at fair value						128
Total commercial real estate loans					$	2,340		70%		8.49%

(1) In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale, but are now being retained on the balance sheet. In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third-party appraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 61%.

State diversification as of March 31, 2025								15 largest loans as of March 31, 2025
State			Balance		Origination date LTV			State			Balance		Origination date LTV
(Dollars in millions)								(Dollars in millions)
Texas		$	720		70%			Texas		$	46		75%
Georgia			304		70%			Tennessee			40		72%
Florida			230		68%			Texas			39		64%
Indiana			129		71%			Michigan			39		62%
New Jersey			115		68%			Texas			36		67%
Ohio			114		71%			Florida			35		72%
Michigan			105		65%			New Jersey			34		62%
Other States each <$65 million			623		70%			Pennsylvania			34		63%
Total		$	2,340		70%			Indiana			34		76%
								Texas			33		62%
								New Jersey			31		71%
								Oklahoma			31		78%
								Texas			31		77%
								Michigan			31		66%
								Georgia			30		69%
								15 largest commercial real estate loans		$	524		69%

Institutional banking loans outstanding at March 31, 2025
Type	Principal			% of total
		(Dollars in millions)
SBLOC	$	1,042		57%
IBLOC		535		29%
Advisor financing		266		14%
Total	$	1,843		100%

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOC loans generally has been less, for two reasons. First, many collateral accounts are “balanced” and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.

Top 10 SBLOC loans at March 31, 2025
	Principal amount			% Principal to collateral
	(Dollars in millions)
	$	10		39%
		9		55%
		9		15%
		8		87%
		8		48%
		8		21%
		7		33%
		6		20%
		6		39%
		5		42%
Total and weighted average	$	76		41%

Insurance backed lines of credit (IBLOC)

IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, fifteen insurance companies have been approved and, as of April 17, 2025, all were rated A- (Excellent) or better by AM BEST.

Direct lease financing by type as of March 31, 2025
		Principal balance(1)		% Total
		(Dollars in millions)
Government agencies and public institutions(2)	$	129		18%
Construction		128		18%
Real estate and rental and leasing		98		14%
Waste management and remediation services		95		13%
Health care and social assistance		29		4%
Other services (except public administration)		24		3%
Professional, scientific, and technical services		22		3%
Wholesale trade		19		3%
General freight trucking		17		2%
Finance and insurance		14		2%
Transit and other transportation		12		2%
Arts, entertainment, and recreation		10		1%
Other		113		17%
Total	$	710		100%

(1) Of the total $710 million of direct lease financing, $651 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

(2) Includes public universities as well as school districts.

Direct lease financing by state as of March 31, 2025
State		Principal balance		% Total
		(Dollars in millions)
Florida	$	115		16%
New York		60		8%
Utah		53		7%
Connecticut		52		7%
California		46		6%
Pennsylvania		42		6%
North Carolina		38		5%
New Jersey		37		5%
Maryland		36		5%
Texas		23		3%
Idaho		19		3%
Georgia		15		2%
Washington		14		2%
Ohio		13		2%
Iowa		13		2%
Other States		134		21%
Total	$	710		100%

Capital ratios	Tier 1 capital		Tier 1 capital		Total capital		Common equity
	to average		to risk-weighted		to risk-weighted		tier 1 to risk
	assets ratio		assets ratio		assets ratio		weighted assets
As of March 31, 2025
The Bancorp, Inc.	8.93%		13.94%		14.86%		13.94%
The Bancorp Bank, National Association	9.79%		15.28%		16.19%		15.28%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%		8.00%		10.00%		6.50%
As of December 31, 2024
The Bancorp, Inc.	9.41%		13.85%		14.65%		13.85%
The Bancorp Bank, National Association	10.38%		15.25%		16.06%		15.25%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%		8.00%		10.00%		6.50%

	Three months ended				Year ended
	March 31,				December 31,
	2025		2024		2024
Selected operating ratios
Return on average assets(1)	2.49%		2.97%		2.71%
Return on average equity(1)	28.64%		27.95%		27.24%
Net interest margin	4.07%		5.15%		4.85%
(1) Annualized

Book value per share table	March 31,			December 31,				September 30,		March 31,
	2025			2024			2024			2024
Book value per share	$	17.66		$	16.69		$	16.90		$	15.63

Loan delinquency and other real estate owned	March 31, 2025
	30-59 days			60-89 days			90+ days						Total						Total
	past due			past due			still accruing			Non-accrual			past due			Current			loans
SBL non-real estate	$	659		$	61		$	204		$	6,148		$	7,072		$	184,678		$	191,750
SBL commercial mortgage		2,742			—			—			6,893			9,635			671,819			681,454
SBL construction		—			—			—			1,578			1,578			40,448			42,026
Direct lease financing		11,152			5,925			442			6,969			24,488			685,490			709,978
SBLOC / IBLOC		9,242			3,036			—			503			12,781			1,564,389			1,577,170
Advisor financing		—			—			—			—			—			265,950			265,950
Real estate bridge loans		—			—			—			9,754			9,754			2,202,300			2,212,054
Consumer fintech		16,114			841			346			—			17,301			556,747			574,048
Other loans		47			—			2			—			49			112,273			112,322
Unamortized loan fees and costs		—			—			—			—			—			13,398			13,398
	$	39,956		$	9,863		$	994		$	31,845		$	82,658		$	6,297,492		$	6,380,150

Other loan information

Of the $67.5 million special mention and $132.5 million substandard loans real estate bridge loans at March 31, 2025, none were modified in the first quarter of 2025.

Other real estate owned year to date activity

	March 31, 2025
Beginning balance	$	62,025
Transfer from loans, net		3,722
Advances		1,382
Ending balance	$	67,129

		March 31,			December 31,			September 30,			March 31,
		2025			2024			2024			2024
Asset quality ratios:
Nonperforming loans to total loans(1)		0.51%			0.55%			0.52%			1.05%
Nonperforming assets to total assets(1)		1.07%			1.10%			1.14%			0.97%
Allowance for credit losses to total loans		0.82%			0.73%			0.52%			0.53%

(1) In the first quarter of 2024, a $39.4 million apartment building rehabilitation bridge loan was transferred to nonaccrual status. On April 2, 2024, the same loan was transferred from nonaccrual status to other real estate owned. We completed the majority of the capital improvements at the property and have agreed to a sale with a sales price that is expected to cover the current balance plus the forecasted cost of improvements to the property. The March 31, 2025, other real estate owned balance of $42.5 million compares to a September 2023 third-party “as is” appraisal of $47.8 million, or an 86% “as is” LTV, after considering the $1.6 million of earnest money deposits in connection with the property’s sale in process.  Although the payment date for the additional earnest money deposit of $1.4 million was extended to April 28, 2025 to facilitate a change in ownership by the purchaser, the purchaser has made additional investments, including providing insurance coverage at the property.  The closing date remains May 23, 2025, with an option for two additional, 30-day extensions in exchange for additional consideration of $1.0 million per extension.

Gross dollar volume (GDV)(1)	Three months ended
	March 31,			December 31,			September 30,			March 31,
	2025			2024			2024			2024
		(Dollars in thousands)
Prepaid and debit card GDV	$	44,650,422		$	39,656,909		$	37,898,006		$	37,943,338
(1) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank, N.A.

Business line quarterly summary:
Quarter ended March 31, 2025
(Dollars in millions)
					Balances
							% Growth
Major business lines		Average approximate rates(1)			Balances(2)		Year over Year		Linked quarter annualized
Loans
Institutional banking(3)		6.1%		$	1,843		3%		1%
Small business lending(4)		7.1%			1,009		12%		11%
Leasing		8.1%			710		1%		5%
Commercial real estate (non-SBA loans, at fair value)		7.7%			128		nm		nm
Real estate bridge loans (recorded at book value)		8.5%			2,212		5%		20%
Consumer fintech loans - interest bearing		5.0%			25		nm		nm
Consumer fintech loans - non-interest bearing(5)		—			549		nm		nm
Weighted average yield		6.8%		$	6,476							Non-interest income
														% Growth
Deposits: Fintech solutions group												Current quarter		Year over Year
Prepaid and debit card issuance, consumer fintech loan fees, and other payments fees		2.2%		$	7,814		26%		nm		$	34.4		26%

(1) Average rates are for the three months ended March 31, 2025.

(2) Loan and deposit categories are based on period-end and average quarterly balances, respectively.

(3) Institutional Banking loans are comprised of SBLOC loans collateralized by marketable securities, IBLOC loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.

(4) Small Business Lending is substantially comprised of SBA-guaranteed loans. Growth rates exclude the impact of $4 million of loans that do not qualify for true sale accounting at March 31, 2025 compared to $9 million at prior quarter end and $29 million at March 31, 2024.

(5) Income related to non-interest-bearing balances is included in non-interest income.

Summary of credit lines available

The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.

	March 31, 2025
		(Dollars in thousands)
Federal Reserve Bank	$	2,014,390
Federal Home Loan Bank		1,071,418
Total lines of credit available	$	3,085,808

Estimated insured vs uninsured deposits

The vast majority of The Bancorp’s deposits are insured and low balance and accordingly do not constitute the liquidity risk experienced by certain institutions. Accordingly, the deposit base is comprised as follows.

	March 31, 2025
Insured		95%
Low balance accounts		3%
Other uninsured		2%
Total deposits		100%

Calculation of efficiency ratio (non-GAAP)(1)
	Three months ended						Year ended
	March 31,			March 31,			December 31,
	2025			2024			2024
	(Dollars in thousands)
Net interest income	$	91,743		$	94,418		$	376,241
Non-interest income(2)		37,774			29,382			126,863
Total revenue	$	129,517		$	123,800		$	503,104
Non-interest expense	$	53,294		$	46,712		$	203,225
Efficiency ratio		41%			38%			40%
(1) The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
(2) Excludes consumer fintech loan credit enhancement income of $45.9 million and $30.7 million at March 31, 2025 and December 31, 2024, respectively.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250424708419/en/

The Bancorp, Inc. Contact

Andres Viroslav

Director, Investor Relations

215-861-7990

andres.viroslav@thebancorp.com

Source: The Bancorp, Inc.