- The Bancorp, Inc. (TBBK, Financial) reports a 12% increase in EPS for Q1 2025.
- Gross dollar volume up 18% year-over-year, fueled by fintech growth.
- Book value per share sees a 13% increase to $17.66.
The Bancorp, Inc. (TBBK), headquartered in Wilmington, Delaware, reported its financial results for the first quarter ending March 31, 2025. The company saw net income of $57.2 million, translating to an earnings per share (EPS) of $1.19, marking a 12% increase from the $1.06 per share posted in the same quarter of 2024. This improvement was supported by the reduction in outstanding shares due to increased stock buybacks in 2024.
The company’s return on assets for the quarter was 2.5%, and return on equity was 29%, compared to 3.0% and 28% respectively, for the same period in the previous year. Despite a 3% decline in net interest income to $91.7 million from $94.4 million in Q1 2024, The Bancorp made considerable gains in non-interest income, driven by a significant increase in fintech-related fees, totaling $3.6 million for the quarter, up from zero in 2024, due to new consumer fintech loan fees.
The Bancorp reported a 4.07% net interest margin for Q1 2025, a decline from 5.15% in Q1 2024. The loans, net of deferred fees and costs, amounted to $6.38 billion at the end of March 2025, reflecting a 17% year-over-year growth.
In the realm of fintech solutions, The Bancorp saw a significant rise in gross dollar volume (GDV) by 18% to $44.65 billion compared to the quarter ended March 31, 2024. This was attributed to organic growth among existing partners and the addition of new clients. The total prepaid, debit card, ACH, and other payment fees also increased by 13%, reaching $30.8 million.
The Bancorp's capital position remains robust with the Tier 1 capital ratio to average assets at 8.93% and Tier 1 capital to risk-weighted assets at 13.94%, above the well-capitalized minimums of 5% and 8%, respectively. The book value per common share increased by 13% to $17.66 as of March 31, 2025, up from $15.63 as of March 31, 2024.
Looking ahead, CEO Damian Kozlowski confirmed guidance of $5.25 EPS for 2025, providing further assurance of the company's growth trajectory and resilience in a challenging economic environment.
