The Bancorp Reports $57.2 Million Net Income in Q1 2025, Up from $56.4 Million

The Bancorp, Inc. reported a net income of $57.2 million for the first quarter of 2025, reflecting a slight increase from $56.4 million in the same period of 2024. Earnings per diluted share rose to $1.19, compared to $1.06 a year earlier. The company's total assets increased to $9.39 billion, up from $8.73 billion at the end of 2024, driven by a rise in loans and deposits. Total loans reached $6.38 billion, a growth of $266.5 million from the previous quarter, while total deposits rose to $8.36 billion, marking an increase of $618.5 million or 8.0%.

In terms of operational performance, Bancorp's net interest income decreased by 2.8% to $91.7 million, down from $94.4 million in the first quarter of 2024. This decline was attributed to a decrease in interest income from loans, which fell to $108.9 million from $114.3 million, despite an increase in average loans and leases. The provision for credit losses on non-consumer fintech loans was $874,000, significantly lower than the $2.4 million recorded in the same quarter last year. Non-interest income surged to $83.6 million, a substantial increase from $29.4 million in the prior year, largely due to consumer fintech loan credit enhancement income and increased fees from payment processing.

The company also experienced notable changes in its loan portfolio. The allowance for credit losses (ACL) increased to $52.5 million, representing 0.82% of total loans, compared to 0.73% at the end of 2024. This increase was primarily due to higher reserves on consumer fintech loans, which have not yet incurred losses. The non-performing loans decreased to $32.8 million, down from $33.8 million at the end of 2024, while the total non-accrual loans rose to $31.8 million from $27.9 million, reflecting ongoing monitoring and adjustments in the loan portfolio.

Strategically, Bancorp has continued to focus on its fintech and specialty finance segments, which have been key drivers of revenue. The company has also implemented a stock repurchase program, authorizing up to $150 million in buybacks for 2025, with $37.5 million planned for each quarter. The outlook for the remainder of 2025 remains cautiously optimistic, with management emphasizing the importance of maintaining liquidity and capital resources while navigating potential economic challenges. The company is committed to enhancing its operational efficiency and managing credit risk effectively as it continues to grow its loan and deposit base.