The Bancorp, Inc. (TBBK) Bundle
A Brief History of The Bancorp, Inc.
The Bancorp, Inc. (NASDAQ: TBBK) has established itself as a significant player in the financial services sector, particularly focusing on payment processing and banking solutions. As of September 30, 2024, the company reported a net income of $51.5 million, equivalent to $1.04 per diluted share, reflecting a 3% increase year-over-year. The company’s revenue sources are diversified, with net interest income for the third quarter reaching $93.7 million, a 5% increase from the previous year.
Financial Performance Overview
In 2024, The Bancorp continued to report strong growth across its business lines. Key financial metrics as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $51.5 million | $50.1 million | +3% |
| Net Interest Income | $93.7 million | $88.9 million | +5% |
| Total Revenue | $125.8 million | $115.7 million | +9% |
| Efficiency Ratio | 42% | 41% | +1% |
| Return on Assets | 2.5% | 2.7% | -0.2% |
| Return on Equity | 26% | 26% | 0% |
Loan Portfolio Growth
The Bancorp's total loans, net of deferred fees and costs, amounted to $5.91 billion as of September 30, 2024, marking a 14% increase from $5.20 billion in the previous year. This growth is attributed to various factors including:
- Real Estate Bridge Loans: $2.19 billion, an 18% increase year-over-year.
- Small Business Loans: $979.2 million, reflecting a 14% year-over-year increase.
- Direct Lease Financing: Increased by 6% year-over-year to $711.8 million.
Capital and Liquidity Position
The Bancorp's capital ratios indicate a robust financial position, with tier 1 capital to risk-weighted assets at 13.62% as of September 30, 2024, significantly above regulatory minimums. The company maintains substantial lines of credit, totaling $3.08 billion, to support its liquidity needs.
Shareholder Value and Stock Performance
In 2024, The Bancorp repurchased 1,037,069 shares at an average cost of $48.21 per share, reducing outstanding shares to 48.2 million. The book value per common share increased to $16.90 from $14.36 a year earlier, reflecting an 18% growth.
Overall, The Bancorp has demonstrated resilience and growth in a competitive market, leveraging its unique offerings in fintech and traditional banking to enhance shareholder value and drive operational efficiency.
A Who Owns The Bancorp, Inc. (TBBK)
Major Shareholders
As of 2024, the ownership structure of The Bancorp, Inc. (TBBK) includes a mix of institutional investors and individual shareholders. The largest shareholders are as follows:
| Shareholder | Ownership (%) | Shares Owned | Type |
|---|---|---|---|
| BlackRock Inc. | 10.2% | 4,920,000 | Institutional |
| The Vanguard Group | 8.9% | 4,250,000 | Institutional |
| Dimensional Fund Advisors | 7.5% | 3,600,000 | Institutional |
| State Street Corporation | 5.2% | 2,500,000 | Institutional |
| Insider Ownership | 3.4% | 1,600,000 | Insider |
Insider Ownership
Insider ownership consists of executives and board members holding shares in the company. The following details the key insiders:
| Name | Position | Shares Owned | Ownership (%) |
|---|---|---|---|
| W. M. Duffy | CEO | 500,000 | 1.0% |
| J. L. Smith | CFO | 300,000 | 0.6% |
| A. K. Patel | Board Member | 250,000 | 0.5% |
| M. J. Thompson | Board Member | 550,000 | 1.1% |
Institutional Ownership Breakdown
Institutional investors hold a significant portion of The Bancorp's shares. The following table outlines the top institutional investors:
| Institution | Shares Owned | Ownership (%) |
|---|---|---|
| BlackRock Inc. | 4,920,000 | 10.2% |
| The Vanguard Group | 4,250,000 | 8.9% |
| Dimensional Fund Advisors | 3,600,000 | 7.5% |
| State Street Corporation | 2,500,000 | 5.2% |
Share Repurchase Program
The Bancorp has actively engaged in a share repurchase program, which has reduced the number of outstanding shares. Key details include:
- Shares repurchased in 2024: 1,037,069
- Average cost per share: $48.21
- Outstanding shares as of September 30, 2024: 48,200,000
- Reduction in shares from December 31, 2023: 9%
Stock Performance
The stock performance of TBBK has shown notable trends in 2024. Relevant figures include:
| Date | Closing Price ($) | Market Cap ($ Millions) |
|---|---|---|
| January 1, 2024 | 44.00 | 2,100 |
| April 1, 2024 | 50.00 | 2,400 |
| July 1, 2024 | 48.50 | 2,300 |
| September 30, 2024 | 47.00 | 2,260 |
Recent Financial Highlights
As of September 30, 2024, The Bancorp reported significant financial metrics:
- Net income: $51.5 million
- Net income per diluted share: $1.04
- Return on assets: 2.5%
- Return on equity: 26%
- Book value per share: $16.90
The Bancorp, Inc. (TBBK) Mission Statement
The Bancorp, Inc. (TBBK) is dedicated to providing innovative financial solutions and services while maintaining a commitment to safety and soundness. The company aims to empower its clients through a diverse range of banking products and services that cater to both businesses and consumers.
Financial Performance Overview
As of September 30, 2024, The Bancorp reported a net income of $51.5 million, translating to $1.04 per diluted share, which marks a 13% increase in EPS compared to $0.92 per diluted share in the previous year. The net income increased by 3% year-over-year, reflecting the company’s strong operational performance.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $51.5 million | $50.1 million | 3% |
| EPS (Diluted) | $1.04 | $0.92 | 13% |
| Return on Assets (ROA) | 2.5% | 2.7% | -7.41% |
| Return on Equity (ROE) | 26% | 26% | 0% |
| Net Interest Income | $93.7 million | $88.9 million | 5% |
| Net Interest Margin | 4.78% | 5.07% | -5.73% |
Loan Portfolio and Growth
As of September 30, 2024, The Bancorp's total loans, net of deferred fees and costs, stood at $5.91 billion, a 14% increase year-over-year. The bank's small business loans amounted to $979.2 million, marking a 14% increase compared to the previous year.
| Loan Type | Amount (in billions) | Change (%) |
|---|---|---|
| Total Loans | $5.91 | 14% |
| Small Business Loans | $0.979 | 14% |
| Real Estate Bridge Loans | $2.19 | 18% |
| Direct Lease Financing | $0.712 | 6% |
Capital Adequacy
The Bancorp maintains a strong capital position, with tier 1 capital ratios significantly exceeding regulatory requirements. As of September 30, 2024, the ratios were as follows:
| Capital Ratio | Ratio (%) | Minimum Requirement (%) |
|---|---|---|
| Tier 1 Capital to Average Assets | 9.86% | 5% |
| Tier 1 Capital to Risk-Weighted Assets | 13.62% | 8% |
| Total Capital to Risk-Weighted Assets | 14.19% | 10% |
| Common Equity Tier 1 to Risk-Weighted Assets | 13.62% | 6.5% |
Shareholder Value
The Bancorp has actively engaged in share repurchase programs, reducing its outstanding shares from 53.2 million at the end of 2023 to 48.2 million by September 30, 2024, a reduction of 9%. The average cost per share repurchased was $48.21.
| Metric | Value |
|---|---|
| Outstanding Shares (Sept 30, 2024) | 48.2 million |
| Outstanding Shares (Dec 31, 2023) | 53.2 million |
| Shares Repurchased | 1,037,069 |
| Average Cost per Share | $48.21 |
Deposits and Funding
Total deposits as of September 30, 2024, were reported at $7.01 billion, reflecting a growth of 11% year-over-year. The funding structure is robust, with a significant portion of deposits being FDIC-insured.
| Deposit Type | Amount (in billions) | Percentage of Total Deposits |
|---|---|---|
| Total Deposits | $7.01 | 100% |
| Insured Deposits | $6.52 | 93% |
| Low Balance Accounts | $0.21 | 3% |
| Other Uninsured Deposits | $0.28 | 4% |
Efficiency Ratios
The Bancorp's efficiency ratio for the third quarter of 2024 was recorded at 42%, indicating a stable performance in managing expenses relative to income.
| Efficiency Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Efficiency Ratio | 42% | 41% |
How The Bancorp, Inc. (TBBK) Works
Financial Performance Overview
The Bancorp, Inc. reported a net income of $51.5 million for the third quarter of 2024, translating to earnings per diluted share of $1.04, reflecting a 13% increase over the previous year’s earnings of $0.92 per share.
Net interest income for the same period was $93.7 million, up 5% from $88.9 million in the third quarter of 2023.
The efficiency ratio stood at 42%, indicating effective management of expenses relative to income.
Loan Portfolio
As of September 30, 2024, total loans, net of deferred fees and costs, amounted to $5.91 billion, representing a 14% increase year-over-year.
Key components of the loan portfolio included:
- Small Business Loans (SBLs): $979.2 million, a 14% increase year-over-year.
- Real Estate Bridge Loans: $2.19 billion, an 18% increase year-over-year.
- Direct Lease Financing: $711.8 million, a 6% increase year-over-year.
| Loan Type | Amount (in billions) | Year-over-Year Growth |
|---|---|---|
| Total Loans | $5.91 | 14% |
| Small Business Loans | $0.979 | 14% |
| Real Estate Bridge Loans | $2.19 | 18% |
| Direct Lease Financing | $0.712 | 6% |
Deposits and Funding Sources
Average deposits for the third quarter of 2024 totaled $7.01 billion, reflecting an increase of 11% compared to the same period in 2023.
The Bancorp’s funding structure is primarily composed of FDIC-insured deposits, with 93% of deposits being insured as of September 30, 2024.
Capital Ratios
The Bancorp maintains a solid capital position with the following ratios as of September 30, 2024:
- Tier 1 Capital to Average Assets: 9.86%
- Tier 1 Capital to Risk-Weighted Assets: 13.62%
- Total Capital to Risk-Weighted Assets: 14.19%
- Common Equity Tier 1 to Risk-Weighted Assets: 13.62%
These ratios significantly exceed the well-capitalized minimums set by regulatory standards.
Market Position and Strategic Focus
The Bancorp focuses on niche lending markets, particularly in small business and real estate bridge loans. The company’s real estate bridge loans are primarily rehabilitation loans for apartment buildings, which are expected to stabilize and refinance over time.
As part of its strategic initiatives, The Bancorp has emphasized the importance of safety and soundness, with a risk profile that is strengthened through its unique loan collateral and funding sources.
Recent Developments
In the third quarter of 2024, The Bancorp repurchased 1,037,069 shares of its common stock at an average cost of $48.21 per share. The company continues to monitor its loan portfolio closely, especially the segments classified as special mention or substandard, with a proactive approach to managing credit risk.
Summary of Financial Highlights
| Metric | Value |
|---|---|
| Net Income | $51.5 million |
| Earnings Per Share | $1.04 |
| Net Interest Income | $93.7 million |
| Total Loans | $5.91 billion |
| Total Deposits | $7.01 billion |
| Efficiency Ratio | 42% |
| Tier 1 Capital Ratio | 9.86% |
How The Bancorp, Inc. (TBBK) Makes Money
Revenue Generation Overview
The Bancorp, Inc. primarily generates revenue through two main streams: net interest income and non-interest income. For the third quarter of 2024, total revenue amounted to $125.84 million, with net interest income contributing $93.73 million and non-interest income adding $32.11 million.
| Revenue Components | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Interest Income | $93.73 | $88.88 |
| Non-Interest Income | $32.11 | $26.78 |
| Total Revenue | $125.84 | $115.66 |
Net Interest Income
Net interest income represents the difference between interest earned on loans and investments and interest paid on deposits and borrowings. In the third quarter of 2024, The Bancorp's net interest margin was 4.78%, down from 5.07% in the same quarter of 2023. This decrease was influenced by reversals of prior period interest income related to non-accrual loans.
The company reported an average interest rate of 2.54% on $7.23 billion of average deposits and interest-bearing liabilities. The total loans outstanding, net of deferred fees and costs, were $5.91 billion as of September 30, 2024, representing a 14% year-over-year increase.
Non-Interest Income
Non-interest income includes various fees and charges from services such as payment processing and card issuance. For Q3 2024, non-interest income grew by 16% year-over-year, totaling $32.11 million. This increase was driven by a 15% growth in gross dollar volume for prepaid and debit cards, reaching $37.90 billion.
Loan Portfolio Composition
The Bancorp's loan portfolio is diversified across several categories, including:
- Real Estate Bridge Loans: $2.19 billion (18% increase year-over-year)
- Small Business Loans: $979.2 million (14% increase year-over-year)
- Direct Lease Financing: $711.8 million (6% increase year-over-year)
| Loan Categories | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Real Estate Bridge Loans | $2,190 | $1,850 |
| Small Business Loans | $979.2 | $860.0 |
| Direct Lease Financing | $711.8 | $670.0 |
Operational Efficiency
The Bancorp's efficiency ratio, which measures operating expenses as a percentage of total revenue, was 42% for Q3 2024, slightly up from 41% in Q3 2023. This indicates effective management of operational costs relative to revenue generation.
Capital Position
As of September 30, 2024, The Bancorp maintained a robust capital position with tier 1 capital ratios significantly exceeding minimum regulatory requirements:
- Tier 1 Capital to Average Assets: 9.86%
- Total Capital to Risk-Weighted Assets: 14.19%
- Common Equity Tier 1 to Risk-Weighted Assets: 13.62%
Shareholder Returns
The Bancorp repurchased 1,037,069 shares of its common stock at an average price of $48.21 during Q3 2024, reducing outstanding shares to 48.2 million. The book value per share increased to $16.90, an 18% rise from the previous year.
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Article updated on 8 Nov 2024
Resources:
- The Bancorp, Inc. (TBBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Bancorp, Inc. (TBBK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Bancorp, Inc. (TBBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.