Core Deposits Continue To Grow Significantly at TBBK
Analyst Bob Ramsey of FBR Capital Markets maintains his “market perform” rating on The Bancorp Inc (NASDAQ: TBBK), while raising his estimates for the company. The target price for TBBK has been raised from $6 to $7.
According to FBR Capital Markets, The Bancorp’s low-cost deposit gathering strategies would drive the company’s core deposit growth over the forthcoming quarters. Core deposits comprise 95% of TBBK’s total deposits and they have grown at a CAGR of 53% over the past couple of years. Moreover, capital raised during 3Q09 has led to new relationships and a stronger client pipeline, the analyst says.
Although profitability remains weak, the company’s growth and NIM (Net Interest Margin) prospects are bright. FBR Capital Markets has raised its EPS estimates for 2009, 2010 and 2011 from $0.08 to $0.10, from $0.05 to $0.25 and from $0.25 to $0.55, respectively.
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