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Bancorp Inc (TBBK)
NASDAQ:TBBK
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Bancorp
(NASDAQ:TBBK)
74Outperform
Bancorp (TBBK) vs. S&P 500 (SPY)
Market Cap
$2.41B
Dividend YieldN/A
Average Volume (3M)568.99K
Price to Earnings (P/E)11.7
Beta (1Y)1.24
Revenue Growth11.72%
EPS Growth23.37%
CountryUS
Employees757
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)4.29
Shares Outstanding48,067,177
10 Day Avg. Volume591,676
30 Day Avg. Volume568,985
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)N/A
Price to Sales (P/S)5.03
Price to Cash Flow (P/CF)12.10
P/FCF Ratio7.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$69.00Price Target Upside37.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Bancorp Business Overview & Revenue Model
Company DescriptionThe Bancorp, Inc. (TBBK) is a financial holding company that operates primarily through its subsidiary, The Bancorp Bank, offering a range of financial services. It provides private-label banking and technology solutions to non-bank companies, including banking-as-a-service (BaaS), payments, health savings accounts, and institutional banking. The company is known for its specialization in providing customized banking solutions tailored to the needs of its diverse clientele, which includes fintech companies, small businesses, and individual consumers.
How the Company Makes MoneyThe Bancorp makes money by leveraging its banking platform to offer a variety of financial products and services. Key revenue streams include fees and interest from its payments and card services, including prepaid cards and credit card issuing services. The company also generates income through interest income on loans and investment securities. Bancorp's strategic partnerships with fintech companies and other non-bank entities enable it to broaden its service offerings and capture a larger market share in the financial services industry. Additionally, it earns revenue from its health savings account services and institutional banking activities. These diverse income streams allow Bancorp to maintain a robust financial position in the evolving banking landscape.
Bancorp Financial Statement Overview
Summary
Bancorp shows strong financial health with notable revenue growth and profitability. The balance sheet is stable with low leverage, and cash flows are well-managed. Some concerns exist regarding the absence of EBIT data in 2024 and negative investing cash flow, but overall financials are solid.Income Statement
Bancorp has demonstrated strong revenue growth over the years, with a notable increase in total revenue from $279.5M in 2020 to $447.8M in 2023. The company maintains a consistent gross profit margin, as gross profit equals total revenue. Net profit margin has also improved substantially, reflecting efficient cost management and profitability. However, EBIT is not available for 2024, limiting a complete analysis of operational efficiency.85
Very Positive
Balance Sheet
Bancorp's balance sheet shows growing stockholders' equity, increasing from $652.5M in 2021 to $789.8M in 2024, indicating strong shareholder value. The debt-to-equity ratio is low due to negligible total debt, which suggests a solid financial position with minimal leverage risk. However, the equity ratio shows a slight decrease, which might suggest a slower growth in equity compared to total assets.78
Positive
Cash Flow
The operating cash flow has improved over time, showcasing healthy cash generation from operations. The free cash flow growth rate is positive, indicating effective capital management. However, the negative investing cash flow, particularly in 2024, could suggest high capital expenditures or investments which may need monitoring. The free cash flow to net income ratio is robust, indicating strong cash flow relative to earnings.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 146.48M | 447.82M | 354.52M | 315.63M | 279.48M | Gross Profit |
| 146.48M | 447.82M | 354.52M | 315.63M | 279.48M | EBIT |
| -337.42M | 279.59M | 239.15M | 144.38M | 107.77M | EBITDA |
| 0.00 | 0.00 | 181.21M | 147.47M | 112.04M | Net Income Common Stockholders |
| 217.54M | 192.30M | 130.21M | 110.65M | 80.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.51B | 4.82M | 1.65B | 1.56B | 1.55B | Total Assets |
| 8.73B | 7.71B | 7.90B | 6.84B | 6.28B | Total Debt |
| 123.70M | 147.82M | 122.48M | 151.60M | 151.99M | Net Debt |
| -6.06M | 143.00M | -765.71M | -450.18M | -193.52M | Total Liabilities |
| 7.94B | 6.90B | 7.21B | 151.60M | 151.99M | Stockholders Equity |
| 789.78M | 807.28M | 694.03M | 652.45M | 581.16M |
| Cash Flow | Free Cash Flow | |||
| 229.53M | 174.03M | 115.85M | 82.34M | -515.92M | Operating Cash Flow |
| 229.53M | 186.72M | 120.98M | 83.89M | -512.18M | Investing Cash Flow |
| -1.51B | 415.55M | -828.10M | -305.90M | -595.79M | Financing Cash Flow |
| 812.74M | -452.37M | 993.52M | 478.28M | 509.02M |
Bancorp Technical Analysis
Negative
50.18
Price Trends
56.01
Negative
55.57
Negative
50.16
Positive
Market Momentum
-1.80
Positive
29.15
Positive
21.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBK, the sentiment is Negative. The current price of 50.18 is below the 20-day moving average (MA) of 56.52, below the 50-day MA of 56.01, and above the 200-day MA of 50.16, indicating a neutral trend. The MACD of -1.80 indicates Positive momentum. The RSI at 29.15 is Positive, neither overbought nor oversold. The STOCH value of 21.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBBK.
Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.41B | 11.68 | 27.24% | ― | 11.72% | 23.37% | |
72 Outperform | $1.51B | 9.45 | 10.44% | ― | -3.61% | -29.58% | |
70 Outperform | $6.82B | 14.43 | 6.60% | 3.10% | 11.96% | 11.66% | |
68 Neutral | $11.68B | 10.13 | 15.89% | 2.67% | 13.84% | 2.04% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
63 Neutral | $7.37B | 11.64 | 10.72% | 4.87% | -6.54% | -21.90% |
* Financial Sector Average
Performance Comparison
TBBK
Bancorp
49.74
13.39
36.84%
CMA
Comerica
56.97
7.86
16.00%
EWBC
East West Bancorp
84.35
9.89
13.28%
PB
Prosperity Bancshares
70.66
10.15
16.77%
CUBI
Customers Bancorp
48.20
-4.05
-7.75%
Bancorp Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -12.94% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a robust performance for The Bancorp in fiscal 2024, driven by substantial EPS growth and fintech expansion. Despite some challenges such as interest margin compression and increased expenses, the company shows confidence with affirmed 2025 guidance and reduced substandard loans.Highlights
Strong EPS Growth
The Bancorp reported an EPS of $1.15 for Q4 and $4.29 for the full year 2024. This represents a year-over-year increase of 41% for the quarter and 23% for the full year.
Significant Fintech Growth
Fintech fees grew by 18% for the year and 29% for Q4 year-over-year. GDV grew 15% over the prior year, with a 19% increase in Q4.
Reduction in Substandard Loans
Year-end substandard loans in the REBL portfolio declined by 14% compared to September 30, 2024, due to a loan portfolio sale.
Affirmed 2025 Guidance
Guidance for 2025 is set at $5.25 per share, not including $150 million of share buybacks planned for 2025.
Lowlights
Interest Margin Compression
Net interest margin for Q4 2024 was 4.55%, down from 4.78% in Q3 2024, due to $1.3 million of prior period interest reversal on REBL loans.
Increase in Non-Interest Expense
Non-interest expense for Q4 2024 was $51.8 million, a 14% increase from Q4 2023. This includes a 22% increase in salaries and benefits.
Emergence of Non-Accrual Loans
After quarter-end, two smaller non-accrual loans totaling under $10 million emerged, indicating potential challenges in the REBL book.
Company Guidance
During The Bancorp, Inc.'s Q4 and Fiscal 2024 earnings call, the company reported a significant increase in earnings per share (EPS), reaching $1.15 for the fourth quarter and $4.29 for the full year, reflecting a year-over-year increase of 41% for the quarter and 23% for the year. This growth was driven by an 8% rise in total revenue, boosted by fintech fees, which saw an 18% annual growth, and a substantial 29% increase in the fourth quarter. Gross Dollar Volume (GDV) expanded by 15% over the year, with a notable 19% jump in the fourth quarter. Additionally, the company executed a $250 million share buyback, reducing shares by approximately 10%. The Fintech Solutions Group demonstrated robust profitability, with credit sponsorship fees growing 91% quarter-over-quarter, and the company anticipates credit sponsorship balances to approach $1 billion by the end of 2025. Despite a fourth-quarter net interest margin decrease to 4.55%, the company maintains strong loan coverage and expects further reductions in substandard loans. Looking forward, Bancorp affirms a 2025 EPS guidance of $5.25, excluding anticipated $150 million in share buybacks to address $96 million of senior secured debt repayment.Bancorp Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Bancorp Reports Strong Q4 2024 Earnings Growth
Positive
Jan 30, 2025
On December 31, 2024, The Bancorp Bank, a subsidiary of The Bancorp, Inc., completed the sale of an $82 million real estate bridge loan portfolio, contributing to a 14% reduction in substandard loans. The company reported a 42% increase in earnings per share for Q4 2024 compared to the previous year, driven by share repurchases and organic growth in prepaid and debit card usage. Despite a slight decrease in net interest margin, the company maintained a strong capital position and reported an increase in both net interest income and loan volumes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.