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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 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. |
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Financial highlights |
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(unaudited) |
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|
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||
|
Three months ended |
|
Year ended |
|||||||
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March 31, |
|
December 31, |
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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 | |||||||||||||
