The Bancorp(US:TBBK)2026-01-29 21:31Financial Performance - Fourth Quarter 2025 EPS was $1.28, an 11% increase from $1.15 in 4Q 2024, with a net income of $56.3 million compared to $55.9 million in the prior year[1][2] - Net interest income decreased to $92.1 million from $94.3 million in 4Q 2024, with a net interest margin of 4.30%, down from 4.55% in the prior year[1][13] - Total revenue for the three months ended December 31, 2025, was $172,611, a slight decrease from $174,613 in September 2025 and an increase from $159,598 in December 2024[55] - Adjusted total revenue for the year ended December 31, 2025, was $534,550, compared to $503,104 in 2024, reflecting growth in revenue[55] Loan and Deposit Growth - Ending loans reached $7.12 billion, a 16% increase year-over-year from $6.11 billion in 4Q 2024, and a 7% increase from $6.67 billion in 3Q 2025[1][8] - Consumer fintech loans totaled $1.10 billion, representing 15.1% of total loans, marking a 142% increase from $454.4 million in 4Q 2024[1][9] - Average deposits were $7.60 billion, a 1% increase from $7.55 billion in 4Q 2024, with 95% of deposits sourced from fintech partnerships[1][10][11] - Total deposits reached $8,165,496 thousand, reflecting a 5.38% increase from $7,746,046 thousand year-over-year[35] Credit Quality - Provision for credit losses on non-consumer fintech loans was $0.9 million in 4Q 2025, a decrease from $5.7 million in 3Q 2025[15][16] - The allowance for credit losses was $66.2 million as of December 31, 2025, up from $44.9 million at the end of 2024, with consumer fintech loans coverage at 2.84% and non-fintech loans at 0.58%[17] - Total net charge-offs for Q4 2025 were $39.2 million, a decrease from $40.8 million in Q3 2025, resulting in a charge-off ratio of 2.29%[18] - Non-fintech loans net charge-offs were $0.6 million for Q4 2025, down from $3.3 million in Q3 2025, with a charge-off ratio of 0.04%[19] - Nonperforming loans to total loans decreased to 1.04% as of December 31, 2025, down from 1.35% in September 2025 and 0.55% in December 2024[46] Non-Interest Income - Non-interest income accounted for 46.7% of total revenue, up from 40.9% in 4Q 2024, with fintech fees contributing 20.8% of total revenue[1][4] - Non-interest income for Q4 2025 was $80.5 million, driven by a $3.7 million increase in fintech fees, which accounted for 27% of total revenues excluding credit enhancement income[21] - Non-interest income as a percentage of total revenue (excluding credit enhancement) was 30.4% for the three months ended December 31, 2025, compared to 30.1% in September 2025 and 26.9% in December 2024[55] - Fintech fees as a percentage of total revenue (excluding credit enhancement) were 27.2% for the three months ended December 31, 2025, compared to 26.0% in September 2025 and 25.0% in December 2024[55] Shareholder Returns - Share repurchases totaled $150 million for 2,173,518 shares, representing 5% of issued shares, at an average cost of $69.01[1][4] - The company repurchased 2,173,518 shares at an average cost of $69.01 per share, totaling $150.0 million in Q4 2025, with a full-year capital return of $375.0 million[29] Guidance and Outlook - The company initiated guidance for 2026 at $5.90 EPS, targeting at least $1.75 for 4Q 2026, and a preliminary outlook of $8.25 for 2027[3] Efficiency and Expenses - Total non-interest expense increased by $4.4 million, or 8%, from Q4 2024, primarily due to legal costs related to a settlement[22] - The efficiency ratio was 42.5% for Q4 2025, compared to 41.8% in Q3 2025 and 40.2% in Q4 2024[23] Asset and Liability Management - Total assets increased to $9,352,425 thousand as of December 31, 2025, up from $8,727,543 thousand a year earlier, representing a growth of 7.15%[35] - Total liabilities increased to $8,662,629 thousand as of December 31, 2025, up from $7,937,760 thousand a year prior, marking a growth of 9.14%[35] - Shareholders' equity decreased to $689,796 thousand from $789,783 thousand year-over-year, a decline of 12.59%[35] Capital Adequacy - The total allowance for credit losses on loans to total loans was 0.93% as of December 31, 2025, compared to 0.96% in September 2025 and 0.73% in December 2024[46] - Total capital to risk-weighted assets ratio was 12.19% as of December 31, 2025, compared to 15.13% in September 2025, indicating a decrease in capital adequacy[48]