Bancorp Inc (TBBK)

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