The Bancorp (TBBK) Q4 2023 earnings summary

Executive summary

• FY 2023 net income was $192.3M and diluted EPS was $3.49, versus $130.2M and $2.27 in FY 2022.

• 2023 revenue growth reached 31%, with ROE of 25.6%, ROA of 2.59% and a 41% efficiency ratio.

• 2030 strategy targets new fintech services, monetization of regulatory and middle-office capabilities, and diversified fintech lending while keeping assets below $10B.

Financial highlights

• FY 2023 GAAP revenue was $466.146M, including $354.052M net interest income and $112.094M non-interest income.

• Q4 net income was $44.0M, or $0.81 diluted EPS; adjusted diluted EPS excluding the after-tax trust preferred security provision was $0.95.

• Q4 net interest income rose 20% YoY to $92.2M; net interest margin was 5.26%, versus 4.21% YoY and 5.07% QoQ.

• Q4 total revenue was $119.1M versus $102.5M YoY; non-interest income rose 5% to $27.0M.

• Book value per share increased 22% YoY to $15.17 at Dec. 31, 2023.

Outlook and guidance

• 2024 EPS guidance was $4.25, excluding planned share repurchases of $200M for the year; achievement depends on strategic and budgetary goals.

• Long-term targets include revenue above $1B, ROE above 40%, ROA above 4.0%, leverage above 10% and assets below $10B.

• Priorities include core lending, workforce apartment bridge lending, credit sponsorship, fintech services and adjacent wealth-management markets.