Shares of Bancorp Inc. (TBBK 2.15%), which specializes in providing private-label banking, surged as much as 33% at one point today after the company reported Q1 earnings ahead of expectations.
For the quarter, Bancorp earnings jumped -- going from a net loss of $0.29 per share in Q1 2016 to positive net income of $8 million, or $0.14 per share, for this quarter. Some of the biggest highlights for the quarter included strong growth in non-interest income and direct-lease financing.
Bancorp calls itself "a trailblazer in financial services," as it offers private-label banking and technology solutions for companies from small start-ups to Fortune 500 corporations. The company's services range from payments and institutional banking to health-benefit banking, which the company believes position it for growth in a competitive market with behemoth financial services companies in its industry.
While today's results look largely positive, they're coming off a rough couple of years. Bancorp CEO Damian Kozlowski said in this release that:
While 2016 was a very difficult year for The Bancorp, first quarter 2017 financial results reflect the planned return to profitability. While we did incur financial losses in 2016, it did set the stage to make progress on many key issues that faced The Bancorp. I believe that the actions taken in 2016 have resulted in a much stronger platform and the first quarter was the start of what we believe will be a year of improving performance.
Even after today's big rise, shares are down around 33% over the last two years. Still, Kozlowski said that, while the company has a long way to go to fully recover, he thinks this quarter was "a turning point."