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The Bancorp Reports 1Q 2026 EPS of $1.41, ROA of 2.57%, and ROE of 35.1% Driven by Strong Growth in Loans, Deposits and Payments Volume, and Supported by Continued Improvement in Credit PerformanceApril 23, 2026 4:05 PM
Business Wire
First Quarter 2026 Highlights
Earnings per diluted share (“EPS”) of $1.41 compared to $1.19 for 1Q 2025, an increase of 18%.
Return on assets of 2.57% compared to 2.49% for 1Q 2025.
Return on equity of 35.1% compared to 28.6% for 1Q 2025.
Net income of $60.1 million compared to net income of $57.2 million for 1Q 2025.
Net interest income of $88.8 million compared to $91.7 million for 1Q 2025.
Net interest margin of 3.87% compared to 4.07% for 1Q 2025.
Ending Loans, net of deferred fees and costs of $7.75 billion, compared to $6.38 billion at 1Q 2025, a 22% increase, and $7.12 billion at 4Q 2025, a 9% increase (not annualized).
Ending Fintech loans of $1.65 billion, or 20.9% of total loans, compared to $574.0 million at 1Q 2025, a 187% increase, and $1.10 billion at 4Q 2025, a 50% increase (not annualized).
Average deposits of $8.32 billion increased $5.3 million, or less than 1% from $8.31 billion in 1Q 2025 and increased $721.1 million, or 9%, from $7.60 billion in 4Q 2025. The average interest rate was 1.70% compared to 2.23% for 1Q 2025 and 1.77% in 4Q 2025.
Gross dollar volume (“GDV”), representing the total amount spent on prepaid, debit and credit cards totaled $52.51 billion, an increase of $7.86 billion, or 18%, compared to 1Q 2025.
Fees on consumer credit from fintech loans increased 55% to $5.6 million for 1Q 2026 compared to $3.6 million for 1Q 2025 and increased 24% from $4.5 million in 4Q 2025.
Total prepaid, debit card, ACH, and other payment fees of $32.5 million, a 5% increase, compared to $30.8 million in 1Q 2025.
Non-interest income totaled $72.5 million, or 45.0% of total revenue and $43.7 million*, or 33.0% when excluding credit enhancement income.* This compares to 47.7% of total revenue in 1Q 2025, or 29.2% when excluding credit enhancement income.*
Ending Real estate bridge loans (“REBL”) characterized as criticized assets decreased to $59.1 million from $83.5 million at 4Q 2025, a 29% decrease and decreased 70% compared to $200.0 million at 1Q 2025.
Share repurchases of $50.0 million, for 843,061 shares, or 2.0% of issued and outstanding shares, at an average cost of $59.31.
The Bancorp, Inc. (NASDAQ: TBBK), a financial holding company, today reported its financial results for the first quarter of 2026, reporting net income of $60.1 million and $1.41 per diluted share for the quarter, which is an 18% growth from the first quarter of 2025.
“We started 2026 with robust above industry trend GDV growth and substantial progress in our Fintech initiatives, as well as strong year-over-year EPS growth,” said Damian Kozlowski, CEO and President of The Bancorp. “We are maintaining guidance at $5.90 EPS for 2026, and $1.75 per share in the fourth quarter 2026. Our expectation for 2027 EPS is now in the range of $8.10 to $8.30. The range for 2027 is generally consistent with the previous target while recognizing that the timing of new product and program launches can be subject to partner timelines. Our outlook for 2026 and 2027 includes significant share repurchases, including $200 million total or $50 million a quarter in 2026 followed by near-100% of net income returned through share repurchases thereafter. We believe our three major Fintech initiatives, along with platform efficiency gains from restructuring and AI tools, plus a high-level of capital return through continued buybacks, will be the driving forces behind EPS accretion.”
_______
*
See “Non-GAAP Financial Measures” section at the end of the document for detailed description.
(Dollars in thousands except EPS and except where noted. Unaudited)
1Q 2026
4Q 2025
1Q 2025
Key Performance Metrics:
Return on assets(1)
2.57%
2.53%
2.49%
Return on equity(1)
35.1%
30.4%
28.6%
Efficiency ratio(2)
41.5%
42.5%
41.1%
Net interest margin
3.87%
4.30%
4.07%
Non-interest income as a percentage of total revenue
45.0%
46.7%
47.7%
Non-interest income as a percentage of total revenue (excluding credit enhancement income)(2)
33.0%
30.4%
29.2%
Fintech fees as a percentage of total revenue
23.6%
20.8%
19.6%
Fintech fees as a percentage of total revenue (excluding credit enhancement income)(2)
28.7%
27.2%
26.6%
Book value per share (as of period end)
$
16.65
$
16.29
$
17.66
Results of Operations:
Net income
$
60,069
$
56,292
$
57,173
Net income per share - diluted
$
1.41
$
1.28
$
1.19
Weighted average shares - diluted
42,594,824
44,078,506
47,959,292
Net interest income
$
88,814
$
92,079
$
91,743
Provision (reversal) for credit losses on non-fintech loans
$
(1,348)
$
858
$
874
Non-interest income - total fintech fees
$
38,069
$
35,973
$
34,446
Total non-interest expense
$
55,026
$
56,193
$
53,294
Income tax expense
$
18,643
$
18,703
$
18,065
Volume:
Average loan portfolio (dollars in millions)
$
7,255
$
6,847
$
6,386
Average assets (dollars in millions)
$
9,484
$
8,838
$
9,319
Average deposits (dollars in millions)
$
8,317
$
7,596
$
8,311
Prepaid and debit card gross dollar volume (GDV)(3)
$
52,512,908
$
45,874,708
$
44,650,422
(1)
Annualized.
(2)
See “Non-GAAP Financial Measures” section at the end of the document for detailed description.
(3)
Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.
Earnings Release Conference Call
Management will conduct a conference call to review first quarter 2026 results at 8:00 AM ET Friday, April 24, 2026. Interested parties may access the conference call live by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or you may dial 1.800.715.9871, conference ID 9545117.
For those who cannot access the live conference call, a replay of the webcast will be accessible shortly after the event concludes through our Investor Relations website, or you may access the replay telephonically until Friday, May 1, 2026, by dialing 1.800.770.2030, playback code 9545117#.
Financial Results:
Loan Portfolio
The following table summarizes our total loan portfolio at March 31, 2026 compared to prior periods:
(in thousands, unaudited)
March 31,
December 31,
March 31,
2026
2025
2025
Mix
Mix
Mix
Loans, at amortized cost:
Real estate bridge lending
$
2,279,454
28.9%
$
2,188,952
30.2%
$
2,212,054
33.6%
SBLOC / IBLOC
1,708,709
21.7%
1,669,985
23.0%
1,577,170
23.9%
Small business loans
998,860
12.7%
1,006,898
13.9%
915,230
13.9%
Fintech
1,646,600
20.9%
1,097,998
15.1%
574,048
8.7%
Direct lease financing
678,740
8.6%
685,422
9.4%
709,978
10.8%
Advisor financing
270,811
3.4%
294,236
4.1%
265,950
4.0%
Other loans
155,825
2.0%
157,416
2.2%
112,322
1.7%
7,738,999
98.2%
7,100,907
97.9%
6,366,752
96.6%
Unamortized loan fees and costs
14,684
0.2%
15,769
0.2%
13,398
0.2%
Loans, net of deferred fees and costs
$
7,753,683
98.4%
$
7,116,676
98.1%
$
6,380,150
96.8%
Loans, at fair value:
SBLs, at fair value
$
64,530
0.8%
$
68,374
0.9%
$
83,448
1.3%
Real estate bridge loans (non-SBA), at fair value
63,730
0.8%
71,015
1.0%
128,132
1.9%
Total commercial loans, at fair value
$
128,260
1.6%
$
139,389
1.9%
$
211,580
3.2%
Total loan portfolio
$
7,881,943
100.0%
$
7,256,065
100.0%
$
6,591,730
100.0%
At March 31, 2026, Loans, net of deferred fees and costs were $7.75 billion, a 9% increase (not annualized) from $7.12 billion at December 31, 2025, and a 22% increase compared to $6.38 billion at March 31, 2025. The $1.37 billion increase from March 31, 2025 is primarily driven by growth in fintech loans of $1.07 billion, $131.5 million increase in securities-backed lines of credit (“SBLOC”) and insurance policy cash value-backed lines of credit (“IBLOC”), and $83.6 million increase in small business loans.
Fintech loans of $1.65 billion include $1.22 billion from secured credit card accounts and $427.3 million from short-term liquidity products, and account for 20.9% of the total loan portfolio, continuing the strategic shift of the balance sheet towards sponsored lending. Secured credit card accounts are backed by cash collateral by each individual cardholder, held on the balance sheet as non-interest earning deposits, with the loan balance required to be repaid in full monthly. Short-term liquidity products to individual borrowers range in maturity from 30 days to 365 days. All fintech loans are covered by credit enhancements, where our partners provide financial protection against consumer credit losses. We maintain cash collateral balances equivalent to the expected losses on dollars already lent, as well as having the right to offset other revenues generated through those relationships.
Deposits & Liquidity
Average deposits for the fourth quarter were $8.32 billion, a 9% increase (not annualized) from $7.60 billion in 4Q 2025, and less than 1% increase from $8.31 billion in 1Q 2025. The increase from 4Q 2025 is primarily driven by continued growth in deposits sourced from our fintech relationships.
The average interest rate on deposits for 1Q 2026 was 1.70%, a 7 basis point decrease compared to 4Q 2025 and a 53 basis point decrease compared to 1Q 2025, driven by the mix of deposits and the short-term interest rate environment.
Our fintech partnerships generate 93% of our total deposits, and are low balance, insured deposits, and accordingly, do not constitute the same liquidity risk experienced by traditional branch deposit franchises. As of March 31, 2026, 94% of the deposits are insured, 3% are low balance accounts such as anonymous gift cards and corporate incentive cards for which there is no identified depositor, and 3% are other uninsured deposits.
As of March 31 2026, we had $1.34 billion of off-balance sheet deposits, which consist of deposits swept to other financial institutions to manage our balance sheet composition and deposit portfolio diversity. Off-balance sheet deposits were $849.9 million as of December 31, 2025 and $793.1 million as of March 31, 2025.
We maintain secured borrowing lines of credit with the Federal Reserve Bank and Federal Home Loan Bank that are collateralized by pledged loans and investments. As of March 31, 2026, we had $470.0 million of short-term borrowings under these facilities, which averaged $145.9 million for 1Q 2026. Based on the current amount of loans and securities pledged, there is $2.98 billion of additional available capacity.
Net Interest Income and Net Interest Margin
Net interest income of $88.8 million for 1Q 2026, compared to $92.1 million for 4Q 2025 and $91.7 million for 1Q 2025. The decrease compared to 4Q 2025 was driven primarily by lower rate on non-fintech loans combined with the shift in our portfolio to more fintech loans, for which we primarily earn fee income. The decrease compared to 1Q 2025 was primarily driven by the upsizing and the higher rate of the senior note debt issuance that occurred in 3Q 2025.
Net interest margin was 3.87% for 1Q 2026, compared to 4.30% for 4Q 2025 and 4.07% for 1Q 2025. The decline from 4Q 2025 was primarily driven by mix and the lag timing of short-term interest rates on variable rate loans. The decline from prior year quarter was primarily driven by the shift of our portfolio mix to more fintech loans for which we primarily earn fee income, although we recognize interest income on certain fintech loan products.
Credit Quality
Total Provision, including provision for fintech loans that are supported by credit enhancements, was $27.6 million in 1Q 2026, a decrease compared to $41.4 million in 4Q 2025, and a decrease from $46.9 million in 1Q 2025. Provision for non-Fintech loans was a reversal of $1.3 million in 1Q 2026, compared to provision expense of $0.9 million in 4Q 2025 and $0.9 million in 1Q 2025. The provision reversal in 1Q 2026 was primarily driven by improvements in credit performance in our leasing portfolio. Provision for fintech loans was $28.8 million in 1Q 2026, compared to $40.4 million in 4Q 2025 and $45.9 million in 1Q 2025. The lower provision for fintech loans was primarily driven by improved performance in unsecured credit products.
The allowance for credit losses was $63.0 million at March 31, 2026, consisting of $29.8 million related to fintech loans, or 1.81% of fintech loans, and $33.2 million for non-fintech loans, or 0.54% of non-fintech loans. That compares to the allowance at December 31, 2025 of $66.2 million, consisting of $31.1 million for fintech, or 2.84% of fintech loans, and $35.1 million for non-fintech, or 0.58% of non-fintech loans. Allowance at March 31, 2025 was $52.5 million, consisting of $20.2 million related to fintech loans, or 3.52% of fintech loans, and $32.3 million allowance for non-fintech loans, or 0.56% of non-fintech loans.
Total net charge-offs for 1Q 2026, including fintech loans which are supported by credit enhancements, were $30.7 million, a decrease from $39.2 million for 4Q 2025 and a decrease from $39.1 million for 1Q 2025, resulting in ratios of total net charge-offs to average loans of 1.68%, 2.29% and 2.44% for the respective periods (annualized). The improvement in net charge-offs was driven by improved performance of fintech loans. Net charge-offs for non-fintech loans were $0.5 million for 1Q 2026, flat compared to $0.6 million for 4Q 2025 and $0.5 million for 1Q 2025, resulting in ratios of non-fintech net charge-offs to non-fintech average loans of 0.03%, 0.04% and 0.02% (annualized) for each of the respective periods.
Ending total criticized assets of $163.1 million at 1Q 2026, a 16% decrease from $194.5 million at the end of 4Q 2025 primarily driven by a $24.4 million decrease in criticized Real estate bridge loans, and a $6.3 million decrease in criticized small business loans.
Non-Interest Income
Non-interest income for 1Q 2026 was $72.5 million, which is comprised of $28.8 million of credit enhancement income and $43.7 million of other non-interest income. This compares to $80.5 million in 4Q 2025, comprised of $40.4 million of credit enhancement income and $40.1 million of other non-interest income. Non-interest income for 1Q 2025 was $83.6 million, comprised of $45.9 million of credit enhancement income and $37.8 million of other non-interest income.
Excluding credit enhancement, non-interest income for 1Q 2026 was $43.7 million, a $3.6 million increase compared to 4Q 2025, and a $5.9 million increase compared to 1Q 2025. The $3.6 million increase compared to 4Q 2025 was primarily driven by a $2.1 million increase in total fintech fees and a $1.3 million increase in other non-interest income primarily driven by $0.9 million earned on deposit sweeps. The $5.9 million increase compared to 1Q 2025 reflects a $3.6 million increase in total fintech fees, driven by organic volume growth with existing partners and products, and our focus on expanding our fintech business. In addition, other non-interest income increased $2.7 million from 1Q 2025, primarily driven by $1.1 million of higher other fee income from loans and $0.9 million earned on deposit sweeps.
Non-interest income mix to total revenue, excluding credit enhancement*, was 33.0% compared to 30.4% in 4Q 2025 and 29.2% in 1Q 2025. Fintech fees as a percentage of total revenue, excluding credit enhancement* is 28.7% compared to 27.2% in 4Q 2025 and 26.6% in 1Q 2025.
_______
* See “Non-GAAP Financial Measures” section at the end of the document for detailed description.
Non-Interest Expense
Total non-interest expense of $55.0 million decreased $1.2 million from 4Q 2025 and increased $1.7 million from 1Q 2025. The decrease from 4Q 2025 is primarily driven by a $4.0 million favorable variance in legal settlements where we recognized a $2.0 million expense in 4Q 2025 and a $2.0 million recovery in 1Q 2026. That amount was partially offset by higher salary and benefits costs of $3.1 million, driven primarily by $2.6 million related to timing of incentive accruals.
The increase of $1.7 million from 1Q 2025 is primarily driven by $3.8 million higher salary and employee benefits including $1.1 million of costs incurred in 1Q 2026 associated with organization changes and $1.8 million of higher costs related to incentive accruals, partially offset by $2.0 million reimbursement from insurance related to a legal settlement that was previously expensed in 4Q 2025.
Efficiency ratio* was 41.5% for 1Q 2026, compared to 42.5% for 4Q 2025 and 41.1% for 1Q 2025.
Income Taxes
Income tax expense was $18.6 million for 1Q 2026, $18.7 million for 4Q 2025, and $18.1 million for 1Q 2025. Our effective income tax rate was 23.7% for 1Q 2026, 24.9% for 4Q 2025, and 24.0% for 1Q 2025. The decline in rate for the first quarters is primarily driven by vesting activity of stock awards in those periods.
Capital
As of March 31, 2026, capital levels for The Bancorp Bank, N.A. (the “Bank”) continue to be strong and in excess of the “well capitalized” regulatory benchmarks, with Tier 1 Capital to average assets (Leverage), Tier 1 Capital to Risk-Weighted Assets, Total Capital to Risk-Weighted Assets and Common Equity Tier 1 to Risk-Weighted Assets ratios for the Bank of 9.18%, 14.06%, 15.10%, and 14.06%, respectively, and for the Company of 7.30%, 11.21%, 12.26%, and 11.21%, respectively.
Book value per common share at March 31, 2026 was $16.65, compared to $16.29 at December 31, 2025 (a 9% increase, annualized). Total shareholders’ equity increased by $7.2 million, driven primarily by $60.1 million of net income partially offset by $50.3 million of share repurchases. Compared to March 31, 2025, total shareholders’ equity decreased by $132.7 million, primarily driven by $391.0 million of share repurchases partially offset by $231.1 million of net income and $19.8 million of stock-based compensation. Outstanding shares decreased 5.121 million since March 31, 2025, driven primarily by share repurchases.
Outstanding shares decreased by 496,816 since December 31, 2025 to 41.859 million, driven primarily by share repurchases. During 1Q 2026, we repurchased 843,061 shares of our common stock, or 2% of issued and outstanding shares, at an average cost of $59.31 per share for a total capital return of $50.0 million.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), through its subsidiary, The Bancorp Bank, N.A., is defining the future of banking. As one of the first banks to embrace fintech, The Bancorp has been a driving force behind the industry’s evolution, serving as an essential financial enabler of Fintech innovation for more than 25 years. Led by its Fintech Solutions business, the company delivers a dynamic portfolio of payment and lending solutions that empowers its clients to turn bold ideas into real-world success.
Ranked by the Nilson Report as the No. 1 issuer of prepaid cards in the U.S. and among the top 10 debit card issuers nationally, The Bancorp also holds leading positions in its Institutional Banking, Small Business Lending, Fleet Management Services, and Real Estate Bridge Lending businesses. Across every line of business, The Bancorp fosters prosperity through the perpetual transformation of banking and aims to drive growth for its clients, investors, employees, and the communities it serves. For more information, visit https://thebancorp.com/.
_______
* See “Non-GAAP Financial Measures” section at the end of the document for detailed description.
Forward-Looking Statements
Statements in this earnings release regarding The Bancorp’s business that are not historical facts, are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “will,” “could,” “continue” or the negative thereof and similar terms or expressions. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2026 and 2027 results, including earnings per share accretion, future growth, profitability, productivity and efficiency, the expansion, expected timelines, and implementation of our Fintech initiatives and revenue streams, the possible benefits of our platform restructuring and adoption of AI tools, and share repurchases. Such forward-looking statements relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.
THE BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except share and per share data)
Three months ended
March 31,
2026
2025
Net interest income
$
88,814
$
91,743
Provision (reversal) for credit losses on non-fintech loans
(1,348)
874
Provision for credit losses on fintech loans
28,843
45,868
Provision for unfunded commitments
106
111
Provision for credit losses, total
27,601
46,853
Non-interest income:
Fintech fees
ACH, card and other payment fees
5,796
5,132
Prepaid, debit card and related fees
26,677
25,714
Consumer credit fintech fees
5,596
3,600
Total fintech fees
38,069
34,446
Net realized and unrealized gains on commercial loans, at fair value
6
361
Leasing related income
1,901
1,972
Fintech loan credit enhancement
28,843
45,868
Other non-interest income
3,706
995
Total non-interest income
72,525
83,642
Non-interest expense:
Salaries and employee benefits
37,477
33,669
Data processing expense
1,309
1,205
Legal expense
1,590
1,957
Legal settlement (reimbursement)
(2,000)
—
FDIC insurance
1,251
1,053
Software
5,369
5,013
Other non-interest expense
10,030
10,397
Total non-interest expense
55,026
53,294
Income before income taxes
78,712
75,238
Income tax expense
18,643
18,065
Net income
$
60,069
$
57,173
Earnings per share - basic
$
1.43
$
1.21
Earnings per share - diluted
$
1.41
$
1.19
Weighted average shares - basic
42,133,301
47,214,050
Weighted average shares - diluted
42,594,824
47,959,292
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
March 31,
December 31,
September 30,
March 31,
2026
2025
2025
2025
Assets:
Cash and cash equivalents
Cash and due from banks
$
8,673
$
8,038
$
10,162
$
9,684
Interest earning deposits
58,510
104,611
74,517
1,011,585
Total cash and cash equivalents
67,183
112,649
84,679
1,021,269
Investment securities, available-for-sale, at fair value
1,646,541
1,671,750
1,384,256
1,488,184
Commercial loans, at fair value
128,260
139,389
142,658
211,580
Loans, net of deferred fees and costs
7,753,683
7,116,676
6,672,637
6,380,150
Allowance for credit losses
(63,017)
(66,200)
(64,152)
(52,497)
Loans, net
7,690,666
7,050,476
6,608,485
6,327,653
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock
37,785
25,205
25,250
16,250
Accrued interest receivable
41,315
43,090
43,831
42,464
Other real estate owned
60,998
60,695
61,974
67,129
Deferred tax asset, net
21,139
18,679
10,034
13,585
Credit enhancement asset
29,769
31,138
29,318
20,199
Other
175,108
199,354
208,939
177,414
Total assets
$
9,898,764
$
9,352,425
$
8,599,424
$
9,385,727
Liabilities:
Deposits
Demand and interest checking
$
8,281,037
$
7,827,037
$
7,254,896
$
8,283,262
Savings and money market
148,988
338,459
75,901
81,320
Total deposits
8,430,025
8,165,496
7,330,797
8,364,582
Short-term borrowings
470,000
199,000
200,000
—
Senior debt
196,320
196,253
196,052
96,303
Subordinated debenture
13,401
13,401
13,401
13,401
Other long-term borrowings
13,626
13,712
13,806
13,988
Other liabilities
78,442
74,767
67,206
67,766
Total liabilities
$
9,201,814
$
8,662,629
$
7,821,262
$
8,556,040
Total shareholders' equity
696,950
689,796
778,162
829,687
Total liabilities and shareholders' equity
$
9,898,764
$
9,352,425
$
8,599,424
$
9,385,727
AVERAGE BALANCE SHEET - QTD
(Dollars in thousands)
Three months ended March 31, 2026
Three months ended March 31, 2025
Average
Average
Average
Average
Assets:
Balance
Interest
Rate
Balance
Interest
Rate
Interest earning assets:
Non-fintech loans
$
6,132,928
$
105,598
6.89%
$
5,913,806
$
108,562
7.34%
Fintech loans
1,115,138
1,826
0.66%
466,809
240
0.21%
Loans, net of deferred fees and costs(1)
$
7,248,066
$
107,424
5.93%
$
6,380,615
$
108,802
6.82%
Leases-bank qualified(2)
6,922
152
8.78%
5,853
139
9.50%
Investment securities-taxable
1,662,417
19,920
4.79%
1,489,329
18,127
4.87%
Investment securities-nontaxable(2)
10,426
165
6.33%
6,256
105
6.71%
Interest earning deposits
250,018
2,196
3.51%
1,136,402
12,680
4.46%
Net interest earning assets
9,177,849
129,857
5.66%
9,018,455
139,853
6.20%
Allowance for credit losses
(55,633)
(44,915)
Other assets
361,873
345,791
$
9,484,089
$
9,319,331
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking
$
8,088,696
$
33,210
1.64%
$
8,174,676
$
45,045
2.20%
Savings and money market
227,961
2,079
3.65%
136,688
1,330
3.89%
Total deposits
8,316,657
35,289
1.70%
8,311,364
46,375
2.23%
Short-term borrowings
145,884
1,381
3.79%
—
—
—
Long-term borrowings
13,687
197
5.76%
14,050
195
5.55%
Subordinated debentures
13,401
235
7.01%
13,401
255
7.61%
Senior debt
196,203
3,875
7.90%
96,244
1,234
5.13%
Total deposits and liabilities
8,685,832
40,977
1.89%
8,435,059
48,059
2.28%
Other liabilities
104,884
74,537
Total liabilities
8,790,716
8,509,596
Shareholders' equity
693,373
809,735
$
9,484,089
$
9,319,331
Net interest income on tax equivalent basis(2)
$
88,880
$
91,794
Tax equivalent adjustment
66
51
Net interest income
$
88,814
$
91,743
Net interest margin(2)
3.87%
4.07%
(1)
Includes commercial loans, at fair value. All periods include non-accrual loans.
(2)
Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2026 and 2025.
BUSINESS LINE QUARTERLY SUMMARY
(Dollars in thousands)
Three months ended March 31, 2026
% Growth in balance
Loans:
Total(1)
Average rates(2)
Linked quarter
annualized
Year over Year
Real estate bridge loans - recorded at amortized cost
$
2,279,454
7.63%
16.54%
3.05%
Real estate bridge loans (non-SBA) - recorded at fair value
63,730
6.79%
nm
nm
SBLOC/IBLOC and Advisor financing
1,979,520
5.66%
3.12%
7.40%
Small business lending
1,063,390
6.98%
(4.42%)
6.48%
Fintech loans - non-interest bearing(3)
1,473,238
—
nm
nm
Fintech loans - interest bearing
173,362
4.88%
nm
nm
Direct lease financing
678,740
8.01%
(3.90%)
(4.40%)
Other loans
155,825
5.54%
(4.04%)
38.73%
Unamortized loan fees and costs
14,684
—
nm
nm
Total loan portfolio
$
7,881,943
5.54%
Deposits:
Fintech
$
7,775,692
1.64%
30.23%
(0.49%)
Non-fintech
540,965
2.57%
nm
nm
Total deposits
$
8,316,657
1.70%
(1)
Loan and deposit categories are based on period-end and average quarterly balances, respectively. Total loan portfolio includes both loans recorded at amortized cost and loans at fair value.
(2)
Average annualized rates are for the three months ended March 31, 2026.
(3)
Income related to non-interest-bearing balances is included in non-interest income.
PORTFOLIO PERFORMANCE
(Dollars in thousands)
Credit Quality
March 31,
December 31,
March 31,
2026
2025
2025
As of period end:
Nonperforming loans to total loans
0.97%
1.04%
0.51%
Nonperforming assets to total assets
1.37%
1.44%
1.10%
Allowance for credit losses on loans to total loans(1)
0.81%
0.93%
0.82%
Allowance for credit losses on loans to total assets
0.64%
0.71%
0.56%
For the three months ended:
Net charge-offs:
Fintech
$
30,212
$
38,584
$
38,578
Non-fintech
466
629
520
Total
$
30,678
$
39,213
$
39,098
Net charge-offs/average loans (annualized)
1.68%
2.29%
2.44%
Net charge-offs/average assets (annualized)
1.28%
1.77%
1.68%
_____________
(1)
Excludes loans recorded at fair value.
Loan Delinquency and Non-Accrual
March 31, 2026
30-59 days
60-89 days
90+ days
Total
Total
past due
past due
still accruing
Non-accrual
past due
Current
loans
Real estate bridge loans
$
—
$
—
$
—
$
22,454
$
22,454
$
2,257,000
$
2,279,454
SBLOC / IBLOC
5,847
6,011
—
446
12,304
1,696,405
1,708,709
SBL non-real estate
1,227
1,750
—
9,726
12,703
229,742
242,445
SBL commercial mortgage
1,680
—
—
26,358
28,038
708,432
736,470
SBL construction
—
—
—
2,660
2,660
17,285
19,945
Fintech
17,188
3,214
1,762
—
22,164
1,624,436
1,646,600
Direct lease financing
3,846
1,115
411
10,743
16,115
662,625
678,740
Advisor financing
—
—
—
—
—
270,811
270,811
Other loans
110
—
1
406
517
155,308
155,825
Unamortized loan fees and costs
—
—
—
—
—
14,684
14,684
$
29,898
$
12,090
$
2,174
$
72,793
$
116,955
$
7,636,728
$
7,753,683
CAPITAL RATIOS
As of March 31, 2026
The Bancorp Bank,
"Well
The Bancorp, Inc.
N.A.
Capitalized"(1)
Tier 1 capital to average assets
7.30%
9.18%
5.00%
Tier 1 capital to risk-weighted assets
11.21%
14.06%
8.00%
Total capital to risk-weighted assets
12.26%
15.10%
10.00%
Common equity Tier 1 to risk-weighted assets
11.21%
14.06%
6.50%
(1)
“Well capitalized” institution under federal regulations Basel III.
NON-GAAP FINANCIAL MEASURES
We use certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures are focused on adjusting certain metrics used to measure our performance to exclude the impact of Non-interest income-Fintech loan credit enhancement. That income amount relates to credit enhancement agreements from third parties that cover losses from borrowers for fintech loans receivable. We recognize provision expense for credit losses on fintech loans, and separately record an amount in Non-interest income—Fintech loan credit enhancement for the recovery from the third-party. The measurement of the estimated credit losses and the estimated recovery from the credit enhancement are based on the same estimate and correlate to like amounts in our statement of operations. Our non-GAAP metrics are calculated to remove the volatility of that credit enhancement recovery from measures used to review the performance and growth of our business.
Non-GAAP measures include:
Efficiency ratio is calculated as: (i) GAAP total non-interest expense; divided by (ii) the total of GAAP Net interest income and Non-interest income less Fintech loan credit enhancement income, or “Adjusted total revenue.” This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
Total revenue, excluding credit enhancement is calculated as: the total of GAAP Net interest income and Non-interest income less Fintech loan credit enhancement income. This figure adjusts our total revenue for amounts received related to credit enhancement agreements, to remove the volatility of that credit enhancement recovery when measuring our revenue results.
Non-interest income, excluding credit enhancement is calculated as: GAAP Non-interest-income less Fintech loan credit enhancement income. This figure adjusts our non-interest income for amounts received related to credit enhancement agreements, to remove the volatility of that credit enhancement recovery when measuring our non-interest income results.
Non-interest income as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest-income less Fintech loan credit enhancement income; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of non-interest income, which is primarily fee-based, to our total revenue each period to review the growth in our fee-based business.
Fintech fees as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest income – Total fintech fees; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of fintech fee revenue to our total revenue each period to review the growth in that revenue area, which is one of our key areas of focus.
We believe that these non-GAAP measures are useful performance metrics for management, investors, and lenders, because it provides a means to evaluate period-to-period comparisons of the Company's financial performance without the effects of certain adjustments in accordance with GAAP that may not necessarily be indicative of current operating performance. Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.
Reconciliation of Non-GAAP Measures:
(Dollars in thousands)
Three months ended
March 31,
December 31,
March 31,
2026
2025
2025
Net interest income
$
88,814
$
92,079
$
91,743
Non-interest income
A
72,525
80,532
83,642
Total revenue
B
161,339
172,611
175,385
Less: Fintech loan credit enhancement
(28,843)
(40,403)
(45,868)
Adjusted total revenue
C
$
132,496
$
132,208
$
129,517
Non-interest income
72,525
80,532
83,642
Less: Fintech loan credit enhancement
(28,843)
(40,403)
(45,868)
Adjusted non-interest income
D
$
43,682
$
40,129
$
37,774
Non-interest expense
E
$
55,026
$
56,193
$
53,294
Non-interest income - total fintech fees
F
$
38,069
$
35,973
$
34,446
Non-GAAP Measures
Efficiency ratio
E/C
41.5%
42.5%
41.1%
Total revenue, excluding credit enhancement
C
$
132,496
$
132,208
$
129,517
Non-interest income, excluding credit enhancement
D
$
43,682
$
40,129
$
37,774
Non-interest income as a percentage of total revenue
A/B
45.0%
46.7%
47.7%
Non-interest income as a percentage of total revenue (excluding credit enhancement)
D/C
33.0%
30.4%
29.2%
Fintech fees as a percentage of total revenue
F/B
23.6%
20.8%
19.6%
Fintech fees as a percentage of total revenue (excluding credit enhancement income)
F/C
28.7%
27.2%
26.6%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260422177210/en/
The Bancorp, Inc.
Andres Viroslav, Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Original: The Bancorp Reports 1Q 2026 EPS of $1.41, ROA of 2.57%, and ROE of 35.1% Driven by Strong Growth in Loans, Deposits and Payments Volume, and Supported by Continued Improvement in Credit Performance
US Market News
4月前
The Bancorp Reports 4Q 2025 EPS of $1.28, ROA of 2.53% and ROE of 30.4% Driven by NIM of 4.30%, Continued Fintech Fee Growth, and $150 Million in Share Repurchases in the QuarterJanuary 29, 2026 4:25 PM
Business Wire
Fourth Quarter 2025 Highlights
Earnings per diluted share (“EPS”) of $1.28 compared to $1.15 for 4Q 2024, an increase of 11%.
Return on assets of 2.53% compared to 2.60% for 4Q 2024.
Return on equity of 30.43% compared to 27.71% for 4Q 2024.
Net income of $56.3 million compared to net income of $55.9 million for 4Q 2024.
Net interest income of $92.1 million compared to $94.3 million for 4Q 2024.
Net interest margin of 4.30% compared to 4.55% for 4Q 2024.
Ending Loans, net of deferred fees and costs of $7.12 billion, compared to $6.11 billion at 4Q 2024, or 16% increase, and $6.67 billion at 3Q 2025, or 7% increase (not annualized).
Ending Consumer fintech loans of $1.10 billion, or 15.1% of total loans, compared to $454.4 million at 4Q 2024, or 142% increase, and $785.0 million at 3Q 2025, or 40% increase (not annualized).
Average deposits of $7.60 billion increased $41.0 million, or 1% from $7.55 billion in 4Q 2024. The average interest rate was 1.77% compared to 2.25% for 4Q 2024.
Gross dollar volume (“GDV”), representing the total amounts spent on prepaid, debit and credit cards totaled $45.87 billion, an increase of $6.22 billion, or 16%, compared to 4Q 2024.
Fees on consumer fintech loans increased 48% to $4.5 million for 4Q 2025 compared to $3.0 million for 4Q 2024 and $4.5 million in 3Q 2025.
Total prepaid, debit card, ACH, and other payment fees of $31.5 million, or 8% increase, compared to $29.2 million in 4Q 2024.
Non-interest income totaled $80.5 million, or 46.7% of total revenue and $40.1 million, or 30.4% when excluding credit enhancement income. This compares to 40.9% of total revenue in 4Q 2024, or 26.9% when excluding credit enhancement income.
Ending Real estate bridge loans (“REBLs”) characterized as criticized assets decreased to $83.5 million from $185.3 million at 3Q 2025, or 55% decrease.
Share repurchases of $150.0 million, for 2,173,518 shares, or 5% of issued and outstanding shares, at an average cost of $69.01.
The Bancorp, Inc. (NASDAQ: TBBK), a financial holding company, today reported its financial results for the fourth quarter of 2025. For fourth quarter 2025, the Company reported net income of $56.3 million, or $1.28 per diluted share.
“We are pleased with the significant progress made this year in strengthening our platform and deepening and expanding new and existing relationships. While we ended the year with record fourth quarter EPS and ROE, we did fall short of our expectations and guidance due to a culmination of factors, including the prolonged government shutdown’s impact on transaction volume and deposit flows, the strong ramp-up in sponsored credit materializing later than expected, some unanticipated NIM compression, and an unexpected legal settlement cost,” said Damian Kozlowski, CEO and President of The Bancorp. “2025 demonstrated significant progress on our path to substantial growth in new revenue streams and enhanced profitability driven by our best-in-class Fintech ecosystem. We are initiating guidance at $5.90 EPS for 2026 and targeting at least $1.75 a share in the fourth quarter 2026. We maintain a preliminary outlook for 2027 of $8.25. Guidance for 2026 includes share repurchases under the existing repurchase program of $200 million or $50 million per quarter, and we forecast returning near 100% of earnings through share repurchases in 2027.
Our three major Fintech initiatives of platform efficiency, productivity gains from platform restructuring and AI tools, plus a high-level of capital return, will be the driving forces behind continued EPS accretion. EPS gains are subject to development and implementation timelines in Fintech, and our stock price for buybacks.”
(Dollars in thousands except EPS and except where noted. Unaudited)
4Q 2025
3Q 2025
4Q 2024
Key Performance Metrics:
Return on assets(1)
2.53%
2.50%
2.60%
Return on equity
30.4%
26.6%
27.7%
Efficiency ratio(2)
42.5%
41.8%
40.2%
Net interest margin
4.30%
4.45%
4.55%
Non-interest income as a percentage of total revenue
46.7%
46.1%
40.9%
Non-interest income as a percentage of total revenue (excluding credit enhancement income)(2)
30.4%
30.1%
26.9%
Fintech fees as a percentage of total revenue
20.8%
20.1%
20.2%
Fintech fees as a percentage of total revenue (excluding credit enhancement income)(2)
27.2%
26.0%
25.0%
Book value per share (as of period end)
$
16.29
$
17.48
$
16.69
Results of Operations:
Net income
$
56,292
$
54,927
$
55,908
Net income per share - diluted
$
1.28
$
1.18
$
1.15
Weighted average shares - diluted
44,078,506
46,518,125
48,639,936
Net interest income
$
92,079
$
94,197
$
94,296
Provision for credit losses on non-consumer fintech loans
$
858
$
5,755
$
2,003
Non-interest income - total fintech fees
$
35,973
$
35,083
$
32,254
Total non-interest expense
$
56,193
$
56,404
$
51,812
Income tax expense
$
18,703
$
18,228
$
20,480
Volume:
Average loan portfolio (dollars in millions)
$
6,847
$
6,689
$
6,199
Average assets (dollars in millions)
$
8,838
$
8,720
$
8,550
Average deposits (dollars in millions)
$
7,596
$
7,625
$
7,555
Prepaid and debit card gross dollar volume (GDV)(3)
$
45,874,708
$
44,037,511
$
39,656,909
(1) Annualized.
(2) See calculation of Non-GAAP financial measures.
(3) Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.
Earnings Release Conference Call
Management will conduct a conference call to review fourth quarter 2025 results at 8:00 AM ET Friday, January 30, 2026. Interested parties may access the conference call live by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or you may dial 1.800.549.8228, conference ID 65852.
For those who cannot access the live conference call, a replay of the webcast will be accessible shortly after the event concludes through our Investor Relations website, or you may access the replay telephonically until Friday, February 6, 2026, by dialing 1.888.660.6264, playback code 65852#.
Financial Results:
Loan Portfolio
The following table summarizes our total loan portfolio at December 31, 2025 compared to prior periods:
(Dollars in thousands, unaudited)
December 31,
September 30,
December 31,
2025
2025
2024
Mix
Mix
Mix
Loans, at amortized cost:
Real estate bridge loans
$
2,188,952
30.2%
$
2,131,689
31.3%
$
2,109,041
33.2%
SBLOC / IBLOC
1,669,985
23.0%
1,609,047
23.6%
1,564,018
24.7%
Small business loans
1,013,596
14.0%
987,071
14.5%
887,098
14.0%
Consumer fintech
1,097,998
15.1%
785,045
11.5%
454,357
7.2%
Direct lease financing
685,422
9.4%
693,322
10.2%
700,553
11.1%
Advisor financing
294,236
4.1%
285,531
4.2%
273,896
4.3%
Other loans
150,718
2.1%
164,487
2.4%
111,328
1.8%
7,100,907
97.9%
6,656,192
97.7%
6,100,291
96.3%
Unamortized loan fees and costs
15,769
0.2%
16,445
0.2%
13,337
0.2%
Loans, net of deferred fees and costs
$
7,116,676
98.1%
$
6,672,637
97.9%
$
6,113,628
96.5%
Loans, at fair value:
SBLs, at fair value
$
68,374
0.9%
$
71,829
1.1%
$
89,902
1.4%
Real estate bridge loans (non-SBA), at fair value
71,015
1.0%
70,829
1.0%
133,213
2.1%
Total commercial loans, at fair value
$
139,389
1.9%
$
142,658
2.1%
$
223,115
3.5%
Total loan portfolio
$
7,256,065
100.0%
$
6,815,295
100.0%
$
6,336,743
100.0%
At December 31, 2025, Loans, net of deferred fees and costs were $7.12 billion, a 27% increase (annualized) from $6.67 billion at September 30, 2025, and a 16% increase compared to $6.11 billion at December 31, 2024. The $1.00 billion increase from December 2024 is primarily driven by growth in fintech loans of $643.6 million, $126.5 million increase in Small business lending (“SBL”) loans and $106.0 million increase in Securities-backed lines of credit (“SBLOC”) and Insurance policy cash value-backed lines of credit (“IBLOC”).
Consumer fintech loans of $1.1 billion include $729 million from secured credit card accounts and $369 million from short-term liquidity products, and now account for 15.1% of the total loan portfolio. Secured credit card accounts are backed dollar for dollar by cash collateral by each individual cardholder and are required to be repaid in-full monthly. Short-term liquidity products to individual borrowers range in maturity from 30 days to 365 days. All fintech loans are covered by credit enhancements, where our partners provide financial protection against consumer losses. We maintain cash collateral balances equivalent to the expected losses on dollars already lent, as well as having the right to offset other revenues generated through those relationships.
Deposits & Liquidity
Average deposits were $7.60 billion, a 2% decrease (annualized) from $7.63 billion at September 30, 2025, and a 1% increase compared to $7.55 billion at December 31, 2024. The increase from prior year is primarily driven by increases in deposits sourced from our fintech relationships.
95% of our total deposits are generated through our Fintech partnerships, and are low balance, insured deposits, and accordingly do not constitute the liquidity risk experienced by certain institutions. As of December 31, 2025, 94% of the deposits are insured, 3% are low balance accounts (such as anonymous gift cards and corporate incentive cards for which there is no identified depositor), and 3% are other uninsured deposits.
The average interest rate on deposits for 4Q 2025 was 1.77%, compared to 2.25% for 4Q 2024.
We maintain secured borrowing lines of credit with the Federal Reserve Bank and Federal Home Loan Bank that are collateralized by pledged loans and investments. As of December 31, 2025, we had $199.0 million of short-term borrowings under these facilities, and $3.19 billion of additional available capacity which we can access as needed.
Net Interest Income and Net Interest Margin
Net interest income decreased to $92.1 million for 4Q 2025, compared to $94.2 million for 3Q 2025 and $94.3 million for 4Q 2024. Net interest margin was 4.30% for 4Q 2025, compared to 4.45% for 3Q September 30, 2025 and 4.55% for 4Q 2024.
Net interest income and margin for 4Q 2025 each show a slight decline from prior periods, due to a full quarter of higher debt cost from our 3Q 2025 senior debt issuance, a shift in loan portfolio to more fintech loans that earn fee income but have zero margin, combined with our strategies for investment securities.
Credit Quality
Total Provision, including provision for investment securities and provision for fintech loans which are supported by credit enhancements, was $41.4 million in 4Q 2025, a decrease compared to $45.1 million in 3Q 2025, and an increase from $31.4 million in 4Q 2024.
Provision for non-consumer fintech loans was $0.9 million in 4Q 2025, a decrease compared to $5.7 million in 3Q 2025 which was elevated primarily due to realized losses on a set of truck leases. For 4Q 2024, provision for non-consumer fintech loans was $2.0 million.
The allowance for credit losses was $66.2 million at December 31, 2025, consisting of $31.1 million related to consumer fintech loans, or 2.84% coverage, and $35.1 million for non-fintech loans, or 0.58% coverage. That compares to the allowance as of December 31, 2024 of $44.9 million, consisting of $12.9 million related to consumer fintech loans, or 2.84% coverage, and $31.9 million allowance for non-fintech loans, or 0.56% coverage. Allowance as of September 30, 2025 was $64.2 million, consisting of $29.3 million for fintech, or 3.73% coverage, and $34.8 million for non-fintech, or 0.52% coverage.
Total net charge-offs for 4Q 2025, including fintech loans which are supported by credit enhancements, were $39.2 million, a decrease from $40.8 million for 3Q 2025 and an increase from $18.8 million for 4Q 2024, resulting in ratios of Total net charge-offs to average loans of 2.29%, 2.44% and 1.21% for the respective periods (annualized).
Net charge-offs for non-fintech loans were $0.6 million for 4Q 2025, a decrease compared to $3.3 million for 3Q 2025 and $1.1 million for 4Q 2024, resulting in ratios of non-fintech net charge-offs to average loans of 0.04%, 0.22% and 0.07% for the respective periods (annualized).
Ending total criticized assets of $194.5 million at 4Q 2025, compared to $268.7 million at the end of 3Q 2025 and $286.9 million at year end 2024. The change in total criticized assets in 4Q 2025 was primarily driven by a $101.8 million decrease in Real estate bridge loans characterized as criticized assets, partially offset by a $26.1 million increase in SBL criticized assets.
Non-Interest Income
Non-interest income for 4Q 2025 was $80.5 million, which is comprised of $40.4 million of credit enhancement income and $40.1 million of other non-interest income. This compares to 3Q 2025 with $80.4 million non-interest income, comprised of $39.8 million of credit enhancement income and $40.6 million of other non-interest income. Non-interest income for 4Q 2024 was $65.3 million, comprised of $30.7 million of credit enhancement income and $34.6 million of other non-interest income. Non-interest income for 3Q 2025 includes $2.3 million from the release of earnest money deposit related to an OREO sale agreement
The growth in non-interest income versus 4Q 2024 is primarily driven by the $3.7 million increase in total fintech fees, as fintech fees grew to 27% of our total revenues excluding credit enhancement income*. This growth reflects organic volume growth with existing partners and products, and our focus on expanding our fintech business.
Non-Interest Expense
Total non-interest expense increased $4.4 million, or 8%, from 4Q 2024 and was relatively consistent with 3Q 2025. The increase from 4Q 2024 is primarily driven by $2.0 million of legal costs related to a settlement in 4Q 2025, and $1.1 million of higher software costs. Compared to 3Q 2025, the higher costs due to the $2.0 million legal settlement is offset by $2.9 million lower salary and employee benefits due to adjustments to incentive accruals. The amount of legal settlement recognized is the gross expense amount and excludes any potential insurance recovery that may occur in the future related to the settlement and previously incurred legal costs.
Efficiency ratio* was 42.5% for 4Q 2025, compared to 41.8% for 3Q 2025 and 40.2% for 4Q 2024.
Income Taxes
Income tax expense was $18.7 million for 4Q 2025, $18.2 million for 3Q 2025, and $20.5 million for 4Q 2024. Our effective income tax rate was 24.9% for the 4Q 2025 and 3Q 2025, and 26.8% for 4Q 2024.
* See Non-GAAP Measures.
Capital
As of December 31, 2025, The Bancorp Bank, N.A (“the Bank”)’s capital levels continue to be strong and in excess of the “well capitalized” regulatory benchmarks, with Tier 1 Capital to average assets (Leverage), Tier 1 Capital to Risk-Weighted Assets, Total Capital to Risk-Weighted Assets and Common Equity Tier 1 to Risk-Weighted Assets ratios for the Bank of 9.70%, 14.03%, 15.13% and 14.03%, respectively, and for the Company of 7.64%, 11.08%, 12.19% and 11.08%, respectively.
Book value per common share at December 31, 2025 was $16.29, compared to $17.48 at September 30, 2025 (a 27% decrease, annualized). Total shareholders’ equity decreased by $88.4 million, driven primarily by $150.0 million of share repurchases partially offset by $56.3 million of net income for the period. Outstanding shares decreased 2.2 million to 42,355,361 driven primarily by share repurchases.
Book value per common share at December 31, 2025 was $16.29, compared to $16.69 at December 31, 2024 (a 2% decrease). Total shareholders’ equity decreased by $100.0 million since December 31, 2024, primarily driven by $378.3 million decrease in capital from share repurchases, partially offset by $228.2 million net income and $19.6 million of share-based compensation and $28.5 million of other comprehensive income from mark to market gains on available-for-sale investment securities. Outstanding shares decreased 5.0 million to 42,355,361, driven primarily by our share repurchases over the past year.
We repurchased 2,173,518 shares of our common stock, or 5% of issued and outstanding shares, at an average cost of $69.01 per share for a total capital return of $150.0 million during 4Q 2025. These repurchases bring our repurchases year-to-date in 2025 to 5,645,914 shares, or 12%, at an average price of $66.42, bringing the full year capital return to $375.0 million. The Company’s Board of Directors has authorized up to $200 million of repurchases for 2026.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), through its subsidiary, The Bancorp Bank, N.A., is defining the future of banking. As one of the first banks to embrace fintech, The Bancorp has been a driving force behind the industry’s evolution, serving as an essential financial enabler of fintech innovation for more than 25 years. Led by its Fintech Solutions business, the company delivers a dynamic portfolio of payment and lending solutions that empowers its clients to turn bold ideas into real-world success.
Ranked by the Nilson Report as the No. 1 issuer of prepaid cards in the U.S. and among the top 10 debit card issuers nationally, The Bancorp also holds leading positions in its Institutional Banking, Small Business Lending, Fleet Management Services, and Real Estate Bridge Lending businesses. Across every line of business, The Bancorp fosters prosperity through the perpetual transformation of banking and aims to drive growth for its clients, investors, employees, and the communities it serves. For more information, visit https://thebancorp.com/.
Forward-Looking Statements
Statements in this earnings release regarding The Bancorp’s business that are not historical facts, are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2026, 2027 and 2028 results, including earnings per share accretion, future growth, profitability, productivity and efficiency, the expansion, expected timelines and implementation of our Fintech initiatives and revenue streams, the possible benefits of our platform restructuring and adoption of AI tools, and share repurchases. Such forward-looking statements relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2024 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.
THE BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except share and per share data)
Three months ended
Year ended
December 31,
December 31,
2025
2024
2025
2024
Net interest income
$
92,079
$
94,296
$
375,511
$
376,241
Provision for credit losses on non-consumer fintech loans
858
2,003
8,981
9,319
Provision for credit losses on consumer fintech loans
40,403
30,651
169,294
30,651
Provision (reversal) for unfunded commitments
162
(256)
(582)
(596)
Provision reversal for credit loss on security
—
(1,000)
—
(1,000)
Provision for credit loss, total
41,423
31,398
177,693
38,374
Non-interest income
Fintech fees
ACH, card and other payment processing fees
5,250
4,740
21,021
14,596
Prepaid, debit card and related fees
26,206
24,465
103,546
97,413
Consumer credit fintech fees
4,517
3,049
16,580
4,789
Total fintech fees
35,973
32,254
141,147
116,798
Net realized and unrealized gains on commercial
loans, at fair value
105
527
1,815
2,732
Leasing related income
1,635
1,032
7,135
3,921
Consumer fintech loan credit enhancement
40,403
30,651
169,294
30,651
Other non-interest income
2,416
838
8,942
3,412
Total non-interest income
80,532
65,302
328,333
157,514
Non-interest expense
Salaries and employee benefits
34,401
33,633
142,554
131,597
Data processing expense
1,273
1,414
4,964
5,666
Legal expense
1,387
856
6,690
3,081
FDIC insurance
1,383
961
4,543
3,579
Software
5,344
4,226
20,541
17,913
Other non-interest expense
12,405
10,722
43,822
41,389
Total non-interest expense
56,193
51,812
223,114
203,225
Income before income taxes
74,995
76,388
303,037
292,156
Income tax expense
18,703
20,480
74,824
74,616
Net income
$
56,292
$
55,908
$
228,213
$
217,540
Net income per share - basic
$
1.30
$
1.17
$
4.99
$
4.35
Net income per share - diluted
$
1.28
$
1.15
$
4.92
$
4.29
Weighted average shares - basic
43,444,819
47,771,547
45,770,549
50,063,620
Weighted average shares - diluted
44,078,506
48,639,936
46,421,672
50,713,140
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
December 31,
September 30,
June 30,
December 31,
2025
2025
2025
2024
Assets:
Cash and cash equivalents
Cash and due from banks
$
8,038
$
10,162
$
11,637
$
6,064
Interest earning deposits at Federal Reserve Bank
104,611
74,517
328,628
564,059
Total cash and cash equivalents
112,649
84,679
340,265
570,123
Investment securities, available-for-sale, at fair value
1,671,750
1,384,256
1,481,500
1,502,860
Commercial loans, at fair value
139,389
142,658
185,476
223,115
Loans, net of deferred fees and costs
7,116,676
6,672,637
6,535,432
6,113,628
Allowance for credit losses
(66,200)
(64,152)
(59,393)
(44,853)
Loans, net
7,050,476
6,608,485
6,476,039
6,068,775
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock
25,205
25,250
16,250
15,642
Accrued interest receivable
43,090
43,831
40,607
41,713
Other real estate owned
60,695
61,974
66,054
62,025
Deferred tax asset, net
18,679
10,034
12,436
18,874
Credit enhancement asset
31,138
29,318
26,982
12,909
Other
199,354
208,939
193,622
211,507
Total assets
$
9,352,425
$
8,599,424
$
8,839,231
$
8,727,543
Liabilities:
Deposits
Demand and interest checking
$
7,827,037
$
7,254,896
$
7,705,813
$
7,434,212
Savings and money market
338,459
75,901
60,122
311,834
Total deposits
8,165,496
7,330,797
7,765,935
7,746,046
Short-term borrowings
199,000
200,000
—
—
Senior debt
196,253
196,052
96,391
96,214
Subordinated debenture
13,401
13,401
13,401
13,401
Other long-term borrowings
13,712
13,806
13,898
14,081
Other liabilities
74,767
67,206
89,340
68,018
Total liabilities
$
8,662,629
$
7,821,262
$
7,978,965
$
7,937,760
Total shareholders' equity
689,796
778,162
860,266
789,783
Total liabilities and shareholders' equity
$
9,352,425
$
8,599,424
$
8,839,231
$
8,727,543
AVERAGE BALANCE SHEET - QTD
(Dollars in thousands)
Three months ended December 31, 2025
Three months ended December 31, 2024
Average
Average
Average
Average
Assets:
Balance
Interest
Rate
Balance
Interest
Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)
$
6,839,842
$
111,682
6.53%
$
6,193,762
$
112,908
7.29%
Leases-bank qualified(2)
7,303
163
8.93%
5,728
143
9.99%
Investment securities-taxable
1,489,384
18,147
4.87%
1,556,698
19,341
4.97%
Investment securities-nontaxable(2)
7,889
123
6.24%
5,221
82
6.28%
Interest earning deposits at Federal Reserve Bank
225,411
1,971
3.50%
527,849
6,378
4.83%
Net interest earning assets
8,569,829
132,086
6.17%
8,289,258
138,852
6.70%
Allowance for credit losses
(64,087)
(30,829)
Other assets
331,887
291,977
$
8,837,629
$
8,550,406
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking
$
7,471,587
$
32,180
1.72%
$
7,443,308
$
41,436
2.23%
Savings and money market
123,956
1,437
4.64%
111,231
1,078
3.88%
Total deposits
7,595,543
33,617
1.77%
7,554,539
42,514
2.25%
Short-term borrowings
184,844
1,998
4.32%
9,673
125
5.17%
Long-term borrowings
13,774
194
5.64%
25,886
360
5.56%
Subordinated debentures
13,401
249
7.43%
13,401
275
8.21%
Senior debt
196,120
3,888
7.93%
96,156
1,234
5.13%
Total deposits and liabilities
8,003,682
39,946
2.00%
7,699,655
44,508
2.31%
Other liabilities
99,967
48,196
Total liabilities
8,103,649
7,747,851
Shareholders' equity
733,980
802,555
$
8,837,629
$
8,550,406
Net interest income on tax equivalent basis(2)
$
92,140
$
94,344
Tax equivalent adjustment
61
48
Net interest income
$
92,079
$
94,296
Net interest margin(2)
4.30%
4.55%
(1) Includes commercial loans, at fair value. All periods include non-accrual loans.
(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024.
AVERAGE BALANCE SHEET - YTD
(Dollars in thousands)
Year ended December 31, 2025
Year ended December 31, 2024
Average
Average
Average
Average
Assets:
Balance
Interest
Rate
Balance
Interest
Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)
$
6,617,201
$
447,513
6.76%
$
5,920,643
$
458,405
7.74%
Leases-bank qualified(2)
7,120
655
9.20%
5,064
522
10.31%
Investment securities-taxable(3)
1,464,716
76,021
5.19%
1,331,234
66,262
4.98%
Investment securities-nontaxable(2)
7,735
490
6.33%
3,487
237
6.80%
Interest earning deposits at Federal Reserve Bank
615,134
26,931
4.38%
497,180
26,326
5.30%
Net interest earning assets
8,711,906
551,610
6.33%
7,757,608
551,752
7.11%
Allowance for credit losses
(55,217)
(28,707)
Other assets
329,121
308,814
$
8,985,810
$
8,037,715
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking
$
7,796,951
$
158,860
2.04%
$
6,875,368
$
161,841
2.35%
Savings and money market
97,577
3,891
3.99%
71,962
2,531
3.52%
Total deposits
7,894,528
162,751
2.06%
6,947,330
164,372
2.37%
Short-term borrowings
58,060
2,498
4.30%
44,220
2,469
5.58%
Repurchase agreements
—
—
—
3
—
—
Long-term borrowings
13,911
784
5.64%
35,232
2,420
6.87%
Subordinated debentures
13,401
1,020
7.61%
13,401
1,155
8.62%
Senior debt
132,720
8,805
6.63%
96,027
4,935
5.14%
Total deposits and liabilities
8,112,620
175,858
2.17%
7,136,213
175,351
2.46%
Other liabilities
83,651
102,970
Total liabilities
8,196,271
7,239,183
Shareholders' equity
789,539
798,532
$
8,985,810
$
8,037,715
Net interest income on tax equivalent basis(2)
$
375,752
$
376,401
Tax equivalent adjustment
241
160
Net interest income
$
375,511
$
376,241
Net interest margin(2)
4.31%
4.85%
(1) Includes commercial loans, at fair value. All periods include non-accrual loans.
(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024.
(3) The year ended December 31, 2025 includes $3.0 million of interest income from a security that was known as “CRE-2” and which relates to the Company’s discontinued commercial real estate securitization business. The CRE-2 interest was repaid in the second quarter of 2025 as a result of the final sale of underlying collateral related to that security. CRE-2 was the last security remaining related to the Company’s discontinued commercial real estate securitization business.
BUSINESS LINE QUARTERLY SUMMARY
(Dollars in thousands)
Three months ended December 31, 2025
% Growth in balance
Loans:
Total(1)
Average rates(2)
Linked quarter annualized
Year over Year
Real estate bridge loans - recorded at amortized cost
$
2,188,952
7.91%
10.69%
3.79%
Real estate bridge loans (non-SBA) - recorded at fair value
71,015
6.60%
nm
nm
SBLOC/IBLOC and Advisor financing
1,964,221
6.14%
14.56%
6.86%
Small business lending
1,081,970
7.22%
8.69%
10.75%
Consumer fintech loans - non-interest bearing(3)
954,364
—
nm
nm
Consumer fintech loans - interest bearing
143,634
4.88%
nm
nm
Direct lease financing
685,422
7.95%
(4.62%)
(2.28%)
Other loans
150,718
5.59%
(31.71%)
35.64%
Unamortized loan fees and costs
15,769
—
nm
nm
Total loan portfolio
$
7,256,065
6.15%
Deposits:
Fintech
$
7,229,310
1.71%
(6.16%)
3.49%
Non-fintech
366,233
2.85%
nm
nm
Total deposits
$
7,595,543
1.77%
(1) Loan and deposit categories are based on period-end and average quarterly balances, respectively. Total loan portfolio includes both loans recorded at amortized cost and loans at fair value.
(2) Average annualized rates are for the three months ended December 31, 2025.
(3) Income related to non-interest-bearing balances is included in non-interest income.
PORTFOLIO PERFORMANCE
(Dollars in thousands)
Credit Quality
December 31,
September 30,
December 31,
2025
2025
2024
As of period end:
Nonperforming loans to total loans
1.04%
1.35%
0.55%
Nonperforming assets to total assets
1.44%
1.77%
1.14%
Allowance for credit losses on loans to total loans(1)
0.93%
0.96%
0.73%
Allowance for credit losses on loans and investment securities to total assets
0.71%
0.75%
0.51%
For the three months ended:
Net charge-offs:
Fintech
$
38,584
$
37,454
$
17,742
Non-fintech
629
3,332
1,063
Total
$
39,213
$
40,786
$
18,805
Net charge-offs/average loans (annualized)
2.29%
2.44%
1.21%
Net charge-offs/average assets (annualized)
1.77%
1.87%
0.88%
(1) Excludes loans recorded at fair value.
Loan Delinquency and Non-Accrual
December 31, 2025
30-59 days
past due
60-89 days
past due
90+ days
still accruing
Non-accrual
Total
past due
Current
Total
loans
Real estate bridge loans
$
—
$
—
$
14,459
$
9,755
$
24,214
$
2,164,738
$
2,188,952
SBLOC / IBLOC
5,328
65
251
446
6,090
1,663,895
1,669,985
SBL non-real estate
1,515
344
—
8,639
10,498
227,821
238,319
SBL commercial mortgage
224
—
—
21,977
22,201
730,694
752,895
SBL construction
—
—
—
2,660
2,660
19,722
22,382
Consumer fintech
24,701
3,791
2,030
—
30,522
1,067,476
1,097,998
Direct lease financing
2,431
889
1,567
12,066
16,953
668,469
685,422
Advisor financing
—
—
—
—
—
294,236
294,236
Other loans
209
111
2
142
464
150,254
150,718
Unamortized loan fees and costs
—
—
—
—
—
15,769
15,769
$
34,408
$
5,200
$
18,309
$
55,685
$
113,602
$
7,003,074
$
7,116,676
CAPITAL RATIOS
As of December 31, 2025
The Bancorp, Inc.
The Bancorp Bank, N.A.
"Well Capitalized"(1)
Tier 1 capital to average assets
7.64%
9.70%
5.00%
Tier 1 capital to risk-weighted assets
11.08%
14.03%
8.00%
Total capital to risk-weighted assets
12.19%
15.13%
10.00%
Common equity Tier 1 to risk-weighted assets
11.08%
14.03%
6.50%
(1) “Well capitalized” institution under federal regulations Basel III.
NON-GAAP FINANCIAL MEASURES
We use certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures are focused on adjusting certain metrics used to measure our performance to exclude the impact of Non-interest income--Consumer fintech loan credit enhancement. That income amount relates to credit enhancement agreements from third parties that cover losses from borrowers for fintech loans receivable. We recognize provision expense for credit losses on consumer fintech loans, and separately record an amount in Non-interest income--Consumer fintech loan credit enhancement for the recovery from the third-party. The measurement of the estimated credit losses and the estimated recovery from the credit enhancement are based on the same estimate and correlate to like amounts in our statement of operations. Our non-GAAP metrics are calculated to remove the volatility of that credit enhancement recovery from measures used to review the performance and growth of our business.
Non-GAAP measures include:
Efficiency ratio is calculated as: (i) GAAP total non-interest expense; divided by (ii) the total of GAAP net interest income and non-interest income less Consumer fintech loan credit enhancement income, or “Adjusted total revenue”. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
Non-interest income as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest-income less Consumer fintech loan credit enhancement income; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of non-interest income, which is primarily fee-based, to our total revenue each period to review the growth in our fee-based business.
Fintech fees as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest income – total fintech fees; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of fintech fee revenue to our total revenue each period to review the growth in that revenue area, which is one of our key areas of focus.
We believe that these non-GAAP measures are useful performance metrics for management, investors and lenders, because it provides a means to evaluate period-to-period comparisons of the Company's financial performance without the effects of certain adjustments in accordance with GAAP that may not necessarily be indicative of current operating performance. Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.
Reconciliation of Non-GAAP Measures:
(Dollars in thousands)
Three months ended
Year ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net interest income
$
92,079
$
94,197
$
94,296
$
375,511
$
376,241
Non-interest income
A
80,532
80,416
65,302
328,333
157,514
Total revenue
B
172,611
174,613
159,598
703,844
533,755
Less: Consumer fintech loan credit enhancement
(40,403)
(39,790)
(30,651)
(169,294)
(30,651)
Adjusted total revenue
C
$
132,208
$
134,823
$
128,947
$
534,550
$
503,104
Non-interest income
80,532
80,416
65,302
328,333
157,514
Less: Consumer fintech loan credit enhancement
(40,403)
(39,790)
(30,651)
(169,294)
(30,651)
Adjusted non-interest income
D
$
40,129
$
40,626
$
34,651
$
159,039
$
126,863
Non-interest expense
E
$
56,193
$
56,404
$
51,812
$
223,114
$
203,225
Non-interest income - total fintech fees
F
$
35,973
$
35,083
$
32,254
$
141,147
$
116,798
Non-GAAP Measures
Efficiency ratio
E/C
42.5%
41.8%
40.2%
41.7%
40.4%
Non-interest income as a percentage of total revenue
A/B
46.7%
46.1%
40.9%
46.6%
29.5%
Non-interest income as a percentage of total revenue (excluding credit enhancement)
D/C
30.4%
30.1%
26.9%
29.8%
25.2%
Fintech fees as a percentage of total revenue
F/B
20.8%
20.1%
20.2%
20.1%
21.9%
Fintech fees as a percentage of total revenue (excluding credit enhancement income)
F/C
27.2%
26.0%
25.0%
26.4%
23.2%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260128786658/en/
The Bancorp, Inc.
Andres Viroslav, Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Original: The Bancorp Reports 4Q 2025 EPS of $1.28, ROA of 2.53% and ROE of 30.4% Driven by NIM of 4.30%, Continued Fintech Fee Growth, and $150 Million in Share Repurchases in the Quarter