FBK - The Bancorp Deserves More Time For The Bullish Thesis To Play Out

2024-05-06 12:00:54 ET

Summary

• The Bancorp's focus on building up its payments ecosystem has led to a significant premium in its stock price relative to other banks.
• The bank's financial performance has been impressive, with net interest income and non-interest income increasing, leading to higher net profits.
• The quality of The Bancorp's assets is high, with a low percentage of uninsured deposits and a strong return on assets and equity.

Over a year ago, in March of 2023, I decided to get more familiar with publicly traded banks. I had looked at them before, but never terribly in depth. However, I viewed the banking crisis that began that month as an opportunity to dig deeper into the space. And for the most part, my track record in evaluating these companies has proven to be quite positive. Some, I have been wrong about. And others, I have not yet seen the outcome that I have anticipated. But in this latter case, I do think that the companies in question require some additional time for the thesis to play out....

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