The Bancorp(US:TBBK)2025-08-07 22:28Financial Performance - Net income for Q2 2025 increased to $59.8 million, or $1.27 per diluted share, compared to $53.7 million, or $1.05 per diluted share in Q2 2024[173] - Net interest income for Q2 2025 increased by $3.7 million, or 3.9%, to $97.5 million compared to $93.8 million in Q2 2024[174] - Non-interest income surged to $83.7 million in Q2 2025, a $53.0 million increase, or 172.6%, from $30.7 million in Q2 2024[182] - Net income for the first six months of 2025 was $117.0 million, or $2.46 per diluted share, compared to $110.1 million, or $2.10 per diluted share, for the same period in 2024, reflecting an increase of 6.5%[188] - Net interest income for the first six months of 2025 increased by $1.0 million, or 0.5%, to $189.2 million from $188.2 million in the first six months of 2024[189] Loan and Lease Growth - Average loans and leases rose to $6.57 billion in Q2 2025, up from $5.75 billion in Q2 2024[171] - Average loans and leases increased to $6.48 billion for the first six months of 2025, an increase of $739.9 million, or 12.9%, from $5.74 billion for the same period in 2024[191] - Total loans increased to $6.54 billion at June 30, 2025, up from $6.11 billion at December 31, 2024, representing a growth of approximately 7%[241] Interest Rates and Margins - Net interest margin decreased to 4.44% in Q2 2025 from 4.97% in Q2 2024, reflecting the impact of Federal Reserve rate decreases[169] - Average yield on loans decreased to 6.84% in Q2 2025 from 8.00% in Q2 2024, a decline of 116 basis points[176] - The net interest margin for the first six months of 2025 was 4.25%, a decrease of 81 basis points from 5.06% in the first six months of 2024[193] Credit Losses and Provisions - Provision for credit losses was $44.4 million in Q2 2025, significantly higher than $1.3 million in Q2 2024[181] - Provision for credit losses on non-consumer fintech loans remained stable at $1.5 million in both Q2 2025 and Q2 2024[171] - The allowance for credit losses (ACL) was $59.4 million, or 0.91% of total loans, as of June 30, 2025, compared to $44.9 million, or 0.73%, at December 31, 2024[200] - Net charge-offs for the six months ended June 30, 2025, were $76.9 million, a significant increase from $2.6 million during the same period in 2024[278] Non-Interest Income and Expenses - Total non-interest expense rose to $57.2 million in Q2 2025, an increase of $5.8 million, or 11.2%, compared to $51.4 million in Q2 2024[185] - Salaries and employee benefits expense increased to $37.1 million for the second quarter of 2025, an increase of $3.3 million, or 9.7%, from $33.9 million for the same period in 2024[190] - Legal expense increased by $1.2 million, or 194.3%, to $1.9 million in the second quarter of 2025 from $633,000 in the second quarter of 2024[190] Asset and Deposit Management - Total assets increased to $8.84 billion as of June 30, 2025, up from $8.73 billion at December 31, 2024, driven by loan growth across various categories[231] - Average total deposits increased by $1.34 billion, or 19.9%, to $8.06 billion for the second quarter of 2025 compared to the same quarter in 2024[209] - Total deposits increased to $7.77 billion at June 30, 2025, reflecting a $19.9 million increase, or 0.3%, from $7.75 billion at December 31, 2024[295] Capital and Regulatory Ratios - As of June 30, 2025, The Bancorp, Inc. reported a Tier 1 capital to risk-weighted assets ratio of 14.42%, significantly above the regulatory minimum of 8.0%[219] - The Bancorp Bank, National Association's total capital ratio was 16.83% as of June 30, 2025, well above the required minimum of 10.0%[219] Loan Performance and Delinquencies - The ratio of non-performing loans to total loans rose to 0.96% as of June 30, 2025, compared to 0.34% a year earlier[277] - Total non-performing loans amounted to $62.5 million, an increase from $33.8 million at December 31, 2024[281] - The total past due amount across all loan types as of June 30, 2025, was $112.849 million, with total current loans at $6,422.583 million[266] Strategic Initiatives - The company is pursuing the release of $3.0 million in earnest money deposits related to a terminated sale agreement[159] - The company expects to fund its increased share repurchase program, totaling up to $500 million through year-end 2026, with cash on hand and refinancing of maturing debt[302]