The Bancorp, Inc.NASDAQ: TBBK

The Bancorp, Inc. Reports First Quarter Financial Results

· Issued by The Bancorp, Inc. via Business Wire
Watch The Bancorp explain itThe Bancorp, Inc. (TBBK) Q2 2026 Earnings Call · Replay · Jul 31

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