Joe Yancunis's questions to Bancorp Inc (TBBK) leadership • Q1 2025
Question
Joe Yancunis asked for confirmation that the credit sponsorship program could reach its year-end targets with only its four current programs. He also questioned if the company would front-load its share repurchase activity given the stock's recent performance. Finally, he inquired if The Bancorp's extensive payment volume data revealed any changes in consumer behavior amid economic uncertainty.
Answer
CEO Damian Kozlowski confirmed that the four existing credit sponsorship programs are projected to surpass the $1 billion year-end target. Regarding capital allocation, he reiterated the plan to use ~$100 million of net income to repay debt and $150 million for buybacks, but noted that refinancing the debt to increase buybacks is under consideration, though no decision has been made. On consumer behavior, Kozlowski explained that inflation is a net positive for their nominal GDV and that their payment volume is largely non-discretionary, making it resilient to downturns in consumer spending.