How did TBBK's Q1 2024 EPS outperform forecasts?

The Bancorp (TBBK) reported an EPS of $1.15 for Q1 2024, which is slightly higher than the forecasted EPS of $1.13. This indicates that the company's performance exceeded expectations. Here are some key factors that contributed to this outcome:

1. **Sale of REBL Portfolio**: The sale of the $82 million REBL portfolio on December 31, 2024, was a significant event. It included a $32.5 million classified loan that was current with respect to monthly payments. The sale provided liquidity to the portfolio and was conducted with a 25% payment guaranty, which reinforced the strength of the portfolio. This transaction likely had a positive impact on the company's financial results, including EPS.
2. **Credit Quality Improvement**: The company reported that credit migration was plateauing, and they were actively working to resolve problem loans. This suggests that the credit quality of the bank's loan portfolio was improving, which could have contributed to higher earnings and a better EPS.

In summary, The Bancorp's Q1 2024 EPS outperformed forecasts due to the sale of the REBL portfolio, which enhanced liquidity and reinforced the strength of the portfolio, and the improvement in credit quality, which likely led to higher earnings. These factors, combined with effective management, likely contributed to the company's better-than-expected financial performance.