Eric Longach's questions to Bancorp Inc (TBBK) leadership • Q2 2025
Question
Eric Longach of Cygnus Capital questioned the outlook for the ~$1.4 billion in 'Rebel' portfolio loans maturing within a year, the reasons for the sequential rise in non-accrual loans despite prior commentary, the justification for a higher appraisal on the Aubrey property, and the accounting treatment for the disputed earnest money deposit.
Answer
CEO Damian Kozlowski responded that the bank has high visibility into the maturing Rebel loans and is comfortable extending performing loans for sponsors. He attributed the rise in non-accruals to a surprise failure of the Aubrey property sale and a prudent reclassification of another loan, not a systemic issue. He explained the higher Aubrey appraisal was due to significant property improvements and increased occupancy. Regarding the earnest money, he clarified it has not been recognized as income yet due to the dispute but the company expects to collect it.