In This Article:
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Earnings Per Share (EPS): $1.19 per diluted share, a 12% increase over Q1 2024.
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Net Income: Impacted by provisions for credit losses and credit enhancement income, both at $45.9 million, resulting in no net impact.
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Net Interest Income: Decreased by 3% compared to Q1 2024.
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Net Interest Margin: 4.07%, down from 4.55% in Q4 2024.
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Fintech Solutions Group GDP: Increased 18% year over year.
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Total Fees: Grew 26% year over year.
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Credit Sponsorship Balances: Grew to $574 million, a 26% increase quarter over quarter.
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Loan Balances: Grew 17% year over year; excluding consumer fintech loans, grew 6%.
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Average Fintech Solutions Deposits: Increased 26% to $7.81 billion from $6.18 billion in Q1 2024.
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Non-Interest Income: $37.8 million, a 29% increase over Q1 2024.
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Prepaid, Debit Card, ACH, and Other Payment Fees: Increased 13% to $30.8 million.
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Consumer Credit Fintech Fees: $3.6 million.
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Non-Interest Expense: $53.3 million, a 14% increase over Q1 2024.
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Salaries and Benefits: Increased by 11%.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The Bancorp Inc (NASDAQ:TBBK) reported a 12% increase in earnings per diluted share for Q1 2025 compared to Q1 2024.
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The fintech Solutions Group showed significant momentum with GDP increasing 18% year over year and total fees growing 26%.
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Credit sponsorship balances grew 26% quarter over quarter, with expectations to exceed $1 billion by year-end 2025.
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The company successfully reduced substandard assets in its rebel portfolio, with a 1% decrease in substandard loans and a 20% decrease in special mentioned loans compared to the prior quarter.
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The Bancorp Inc (NASDAQ:TBBK) confirmed its guidance of $5.25 per diluted share for 2025, excluding the impact of $150 million in stock buybacks authorized for the year.
Negative Points
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Net interest income was down 3% compared to Q1 2024, impacted by a lower rate environment.
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The net interest margin decreased to 4.07% from 4.55% in Q4 2024.
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Non-interest expense increased by 14% compared to Q1 2024, including an 11% rise in salaries and benefits.
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The fintech loan yields fell more than deposit rates, impacting the net interest margin.
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The company experienced volatility in deposit costs due to insurance settlements, which temporarily increased funding costs.
Q & A Highlights
Q: Can you provide the average yield on fintech loans over the last couple of quarters and your current asset sensitivity with a 25-basis point rate cut? A: For fintech loans, we get a 0% interest rate deposit and 5% on the loans, which translates into a fee. This is not very sensitive to rate changes. Our asset sensitivity has been reduced significantly, moving from 8% to close to 1% last quarter, but it can vary between 1% to 3% depending on deposit surges and utilization.