The Bancorp, Inc. Reports Third Quarter 2025 Financial Results

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. (“The Bancorp” or the “Company” or “we” or “our”) (NASDAQ: TBBK), a financial holding company, today reported its financial results for the third quarter of 2025.

Highlights

• The Bancorp reported net income of $54.9 million, or $1.18 per diluted share (“EPS”), for the quarter ended September 30, 2025, compared to net income of $51.5 million, or $1.04 per diluted share, for the quarter ended September 30, 2024, or an EPS increase of 13%. While net income increased 7% between these periods, outstanding shares were reduced as a result of share repurchases as detailed below.

• Return on assets and return on equity for the quarter ended September 30, 2025, amounted to 2.5% and 27%, respectively, compared to 2.5% and 26%, respectively, for the quarter ended September 30, 2024 (all percentages “annualized”).

• Net interest income increased to $94.2 million for the quarter ended September 30, 2025, compared to $93.7 million for the quarter ended September 30, 2024.

• Net interest margin amounted to 4.45% for the quarter ended September 30, 2025, compared to 4.78% for the quarter ended September 30, 2024, and 4.44% for the quarter ended June 30, 2025.

• The average interest rate on $7.84 billion of average deposits and interest-bearing liabilities during the third quarter of 2025 was 2.15%. compared to 2.54% for the third quarter of 2024. Average deposits of $7.63 billion for the third quarter of 2025 increased $618.2 million, or 9% over third quarter 2024.

• Gross dollar volume (“GDV”), representing the total amounts spent on prepaid, debit and credit cards totaled $44.04 billion for the quarter ended September 30, 2025, an increase of $6.14 billion, or 16%, compared to the quarter ended September 30, 2024. The increase reflected continued organic volume growth with existing partners and products and the impact of new products launched within the past year. Total prepaid, debit card, ACH, and other payment fees increased 10% to $30.6 million for the third quarter of 2025 compared to the third quarter of 2024.

• Loans, net of deferred fees and costs were $6.67 billion at September 30, 2025, compared to $5.91 billion at September 30, 2024 and $6.54 billion at June 30, 2025. Those changes reflected an increase of 2% quarter over linked quarter and an increase of 13% year over year.

• Real estate bridge loans (“REBLs”) characterized as criticized assets decreased in the third quarter of 2025 to $185.3 million at September 30, 2025 from $215.8 million at June 30, 2025. Included in the September 30, 2025 balance is $102.0 million of assets under contract and expected to close during the fourth quarter, thus further reducing the criticized balance if completed.

• Consumer fintech loans increased to $785.0 million at September 30, 2025, a 15% increase compared to the $680.5 million balance at June 30, 2025 and increased 180% compared to the September 30, 2024 balance of $280.1 million. Certain loan fees on consumer fintech loans are recorded as non-interest income. Such non-interest income amounted to $4.5 million for the quarter ended September 30, 2025 and $1.6 million for the quarter ended September 30, 2024.

• As of September 30, 2025, the Company’s 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 were 8.74%, 12.99%, 14.09% and 12.99%, respectively. Those respective ratios for our wholly owned subsidiary, The Bancorp Bank, N.A., at that date were 9.85%, 14.66%, 15.77% and 14.66% compared to well-capitalized minimums of 5%, 8%, 10%, and 6.5%. The Bancorp Bank, N.A. also remains well capitalized under banking regulations.

• Book value per common share at September 30, 2025, was $17.48 compared to $16.90 per common share at September 30, 2024, an increase of 3%.

• The Bancorp repurchased 2,034,053 shares of its common stock at an average cost of $73.74 per share during the quarter ended September 30, 2025. As a result of share repurchases, outstanding shares, net of treasury shares, at September 30, 2025 amounted to 44.5 million, compared to 48.2 million shares at September 30, 2024, or a reduction of 8%.

“We had another successful quarter as we continue to build new Fintech capabilities and implement and expand partner programs,” said Damian Kozlowski, CEO of The Bancorp. He also noted that “We are lowering guidance from $5.25 to $5.10 earnings per share for 2025, primarily due to lower projected balances for our traditional lending businesses and an increased credit provision for leasing as a result of losses on the disposition of previously identified credits in trucking. In addition, we are not giving specific guidance for 2026 other than we are targeting a minimum $7 earnings per share run-rate by the fourth quarter of 2026. We are initiating preliminary guidance for 2027 of $8.25 earnings per share. We believe that our three major Fintech initiatives of credit sponsorship expansion, embedded finance platform development and new program implementations, plus platform efficiency and productivity gains from platform restructuring and new AI tools, and a continued high level of capital return through share buybacks, will contribute to earnings per share accretion. Earnings per share gains are subject to uncertainty, particularly as it relates to the development and implementation timelines in Fintech, and our stock price for buybacks.”

Conference Call Webcast

You may access the LIVE webcast of The Bancorp’s Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 31, 2025, 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 37073. You may listen to the replay of the webcast following the live call on The Bancorp’s investor relations website (archived for one year) or telephonically until Friday, November 7, 2025, by dialing 1.888.660.6264, playback code 37073#.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, N.A, provides a variety of services including providing non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, 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 2025, 2026 and 2027 results, including earnings per share accretion, future growth, productivity and efficiency, the expansion, expected timelines and implementation of our Fintech initiatives, 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/A, 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.
Financial highlights
(unaudited)
	Three months ended						Nine months ended
	September 30,						September 30,
Condensed Consolidated Income Statements	2025			2024			2025			2024
	(Dollars in thousands, except per share and share data)
Net interest income	$	94,197		$	93,732		$	283,432		$	281,945
Provision for credit losses on non-consumer fintech loans		5,755			3,476			8,123			7,316
Provision for credit losses on consumer fintech loans		39,790			—			128,891			—
Provision (reversal) for unfunded commitments		(491)			79			(744)			(340)
Non-interest income
Fintech fees
ACH, card and other payment processing fees		5,077			3,892			15,771			9,856
Prepaid, debit card and related fees		25,513			23,907			77,340			72,948
Consumer credit fintech fees		4,493			1,600			12,063			1,740
Total fintech fees		35,083			29,399			105,174			84,544
Net realized and unrealized gains on commercial
loans, at fair value		1,005			606			1,710			2,205
Leasing related income		1,397			1,072			5,500			2,889
Consumer fintech loan credit enhancement		39,790			—			128,891			—
Other non-interest income(1)		3,141			1,031			6,526			2,574
Total non-interest income		80,416			32,108			247,801			92,212
Non-interest expense
Salaries and employee benefits		37,350			33,821			108,153			97,964
Data processing expense		1,259			1,408			3,691			4,252
Legal expense		1,483			1,055			5,303			2,509
FDIC insurance		905			904			3,160			2,618
Software		5,040			4,561			15,197			13,687
Other non-interest expense		10,367			11,506			31,417			30,383
Total non-interest expense		56,404			53,255			166,921			151,413
Income before income taxes		73,155			69,030			228,042			215,768
Income tax expense		18,228			17,513			56,121			54,136
Net income	$	54,927		$	51,517		$	171,921		$	161,632
Net income per share - basic	$	1.20		$	1.06		$	3.69		$	3.18
Net income per share - diluted	$	1.18		$	1.04		$	3.64		$	3.15
Weighted average shares - basic		45,865,172			48,759,369			46,554,311			50,807,021
Weighted average shares - diluted		46,518,125			49,478,236			47,209,469			51,361,104
(1) For the three and nine months ended September 30, 2025, includes $2.3 million of income from the release of an earnest money deposit related to the termination of an agreement of sale for a $43.0 million other real estate owned apartment complex property.

Condensed Consolidated Balance Sheets	September 30,			June 30,			December 31,			September 30,
	2025 (unaudited)			2025 (unaudited)			2024			2024 (unaudited)
		(Dollars in thousands, except share data)
Assets:
Cash and cash equivalents
Cash and due from banks	$	10,162		$	11,637		$	6,064		$	8,660
Interest earning deposits at Federal Reserve Bank		74,517			328,628			564,059			47,105
Total cash and cash equivalents		84,679			340,265			570,123			55,765
Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss as of September 30, 2024, and $0 for all other periods presented		1,384,256			1,481,500			1,502,860			1,588,289
Commercial loans, at fair value		142,658			185,476			223,115			252,004
Loans, net of deferred fees and costs		6,672,637			6,535,432			6,113,628			5,906,616
Allowance for credit losses		(64,152)			(59,393)			(44,853)			(31,004)
Loans, net		6,608,485			6,476,039			6,068,775			5,875,612
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock		25,250			16,250			15,642			21,717
Premises and equipment, net		25,947			26,495			27,566			28,091
Accrued interest receivable		43,831			40,607			41,713			42,915
Intangible assets, net		955			1,055			1,254			1,353
Other real estate owned		61,974			66,054			62,025			61,739
Deferred tax asset, net		10,034			12,436			18,874			9,604
Credit enhancement asset		29,318			26,982			12,909			—
Other assets		182,037			166,072			182,687			157,501
Total assets	$	8,599,424		$	8,839,231		$	8,727,543		$	8,094,590
Liabilities:
Deposits
Demand and interest checking	$	7,254,896		$	7,705,813		$	7,434,212		$	6,844,128
Savings and money market		75,901			60,122			311,834			81,624
Total deposits		7,330,797			7,765,935			7,746,046			6,925,752
Short-term borrowings		200,000			—			—			135,000
Senior debt		196,052			96,391			96,214			96,125
Subordinated debenture		13,401			13,401			13,401			13,401
Other long-term borrowings		13,806			13,898			14,081			38,157
Other liabilities		67,206			89,340			68,018			70,829
Total liabilities	$	7,821,262		$	7,978,965		$	7,937,760		$	7,279,264
Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value(1)		48,404			48,104			47,713			48,231
Additional paid-in capital		19,400			12,608			3,233			26,573
Retained earnings		951,076			896,149			779,155			723,247
Accumulated other comprehensive income (loss)		8,814			1,609			(17,637)			17,275
Treasury stock at cost(2)		(249,532)			(98,204)			(22,681)			—
Total shareholders' equity		778,162			860,266			789,783			815,326
Total liabilities and shareholders' equity	$	8,599,424		$	8,839,231		$	8,727,543		$	8,094,590
	September 30,			June 30,			December 31,			September 30,
	2025 (unaudited)			2025 (unaudited)			2024			2024 (unaudited)
(1)Common stock
Shares issued		48,404,006			48,104,006			47,713,481			48,230,334
Shares outstanding		44,528,879			46,262,932			47,310,750			48,230,334
(2)Treasury stock		3,875,127			1,841,074			402,731			—

Average balance sheet and net interest income		Three months ended September 30, 2025									Three months ended September 30, 2024
		(Dollars in thousands; unaudited)
		Average						Average			Average					Average
Assets:		Balance			Interest			Rate			Balance			Interest		Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)	$	6,681,717		$	114,841			6.87%		$	6,017,911		$	116,367		7.73%
Leases-bank qualified(2)		7,579			179			9.45%			5,151			146		11.34%
Investment securities-taxable		1,418,058			17,354			4.90%			1,575,091			19,767		5.02%
Investment securities-nontaxable(2)		8,385			131			6.25%			2,927			55		7.52%
Interest earning deposits at Federal Reserve Bank		354,991			3,954			4.46%			247,344			3,387		5.48%
Net interest earning assets		8,470,730			136,459			6.44%			7,848,424			139,722		7.12%
Allowance for credit losses		(59,166)									(28,254)
Other assets		308,654									222,646
	$	8,720,218								$	8,042,816
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	7,560,744		$	38,233			2.02%		$	6,942,029		$	42,149		2.43%
Savings and money market		64,529			563			3.49%			65,079			549		3.37%
Total deposits		7,625,273			38,796			2.04%			7,007,108			42,698		2.44%
Short-term borrowings		45,067			495			4.39%			73,480			1,030		5.61%
Long-term borrowings		13,866			197			5.68%			38,235			689		7.21%
Subordinated debentures		13,401			259			7.73%			13,401			297		8.87%
Senior debt		140,992			2,450			6.95%			96,071			1,234		5.14%
Total deposits and liabilities		7,838,599			42,197			2.15%			7,228,295			45,948		2.54%
Other liabilities		62,405									18,362
Total liabilities		7,901,004									7,246,657
Shareholders' equity		819,214									796,159
	$	8,720,218								$	8,042,816
Net interest income on tax equivalent basis(2)				$	94,262								$	93,774
Tax equivalent adjustment					65									42
Net interest income				$	94,197								$	93,732
Net interest margin(2)								4.45%								4.78%
(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 and net interest income	Nine months ended September 30, 2025									Nine months ended September 30, 2024
		(Dollars in thousands; unaudited)
	Average							Average		Average						Average
Assets:	Balance			Interest				Rate		Balance			Interest			Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)	$	6,542,172		$	335,831			6.84%		$	5,828,938		$	345,497		7.90%
Leases-bank qualified(2)		7,058			492			9.29%			4,840			379		10.44%
Investment securities-taxable(3)		1,456,402			57,874			5.30%			1,255,532			46,921		4.98%
Investment securities-nontaxable(2)		7,683			367			6.37%			2,905			155		7.11%
Interest earning deposits at Federal Reserve Bank		746,470			24,960			4.46%			486,883			19,948		5.46%
Net interest earning assets		8,759,785			419,524			6.39%			7,579,098			412,900		7.26%
Allowance for credit losses		(52,227)									(27,993)
Other assets		341,661									280,733
	$	9,049,219								$	7,831,838
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	7,906,597		$	126,680			2.14%		$	6,684,671		$	120,405		2.40%
Savings and money market		88,687			2,454			3.69%			58,777			1,453		3.30%
Total deposits		7,995,284			129,134			2.15%			6,743,448			121,858		2.41%
Short-term borrowings		15,334			500			4.35%			55,820			2,344		5.60%
Repurchase agreements		—			—			—			4			—		—
Long-term borrowings		13,957			590			5.64%			38,371			2,060		7.16%
Subordinated debentures		13,401			771			7.67%			13,401			880		8.76%
Senior debt		111,354			4,917			5.89%			95,983			3,701		5.14%
Total deposits and liabilities		8,149,330			135,912			2.22%			6,947,027			130,843		2.51%
Other liabilities		115,916									73,507
Total liabilities		8,265,246									7,020,534
Shareholders' equity		783,973									811,304
	$	9,049,219								$	7,831,838
Net interest income on tax equivalent basis(2)				$	283,612								$	282,057
Tax equivalent adjustment					180									112
Net interest income				$	283,432								$	281,945
Net interest margin(2)								4.32%								4.96%
(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 nine months ended September 30, 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.

Capital ratios	Tier 1 capital		Tier 1 capital		Total capital		Common equity
	to average		to risk-weighted		to risk-weighted		Tier 1 to risk
	assets ratio		assets ratio		assets ratio		weighted assets
As of September 30, 2025
The Bancorp, Inc.	8.74%		12.99%		14.09%		12.99%
The Bancorp Bank, National Association	9.85%		14.66%		15.77%		14.66%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%		8.00%		10.00%		6.50%
As of December 31, 2024
The Bancorp, Inc.	9.41%		13.85%		14.65%		13.85%
The Bancorp Bank, National Association	10.38%		15.25%		16.06%		15.25%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%		8.00%		10.00%		6.50%

	Three months ended						Nine months ended
	September 30,						September 30,
	2025			2024			2025			2024
Selected operating ratios
Return on average assets(1)		2.50%			2.55%			2.54%			2.76%
Return on average equity(1)		26.60%			25.74%			29.32%			26.61%
Net interest margin		4.45%			4.78%			4.32%			4.96%
(1) Annualized.

Book value per share table	September 30,			June 30,			December 31,			September 30,
	2025			2025			2024			2024
Book value per share	$	17.48		$	18.60		$	16.69		$	16.90

Gross dollar volume (“GDV”)(1)	Three months ended
	September 30,			June 30,			December 31,			September 30,
	2025			2025			2024			2024
		(Dollars in thousands)
Prepaid and debit card GDV	$	44,037,511		$	43,649,005		$	39,656,909		$	37,898,006
(1) Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.

Business line quarterly summary:
Quarter ended September 30, 2025
(Dollars in millions)
					Balances
							% Growth
Major business lines		Average approximate rates(1)			Total loan portfolio(2)		Year over Year		Linked quarter annualized
Loans
Institutional banking(3)		6.5%		$	1,895		6%		5%
Small business lending(4)		7.6%			1,059		12%		9%
Direct lease financing		8.1%			693		(3%)		(3%)
Real estate bridge loans (non-SBA) - recorded at fair value		6.6%			71		nm		nm
Real estate bridge loans - recorded at amortized cost		8.5%			2,132		(3%)		(1%)
Consumer fintech loans - interest bearing		5.1%			105		nm		nm
Consumer fintech loans - non-interest bearing(5)		—			680		nm		nm
Other loans(6)		5.9%			164		nm		(14%)
Unamortized loan fees and costs		—			16		nm		nm
Weighted average yield		6.8%		$	6,815							Non-interest income: Fintech fees
														% Growth
Deposits: Fintech solutions group												Current quarter		Year over Year
Fintech deposits and fees		2.1%		$	7,342		10%		nm		$	35.1		19%
(1) Average rates are for the three months ended September 30, 2025.
(2) 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.
(3) Institutional Banking loans are comprised of securities-backed lines of credit (“SBLOC’) loans collateralized by marketable securities, insurance-backed lines of credit (“IBLOC”) loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.
(4) Small Business Lending (“SBL”) is substantially comprised of Small Business Administration (“SBA”)-guaranteed loans and includes SBL loans at fair value. Growth rates exclude the impact of $4 million of loans that do not qualify for true sale accounting at September 30, 2025 compared to $4 million at prior quarter end and $28 million at September 30, 2024.
(5) Income related to non-interest-bearing balances is included in non-interest income.
(6) Includes warehouse financing related to loan sales to third-party purchasers of $122.5 million.

Summary of credit lines available

The Bancorp Bank, N.A. maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.

	September 30, 2025
		(Dollars in thousands)
Federal Reserve Bank	$	2,064,218
Federal Home Loan Bank		912,186
Total lines of credit capacity	$	2,976,404
Current balance – Short-term borrowings		200,000
Available capacity	$	2,776,404

Estimated insured vs. uninsured deposits

The vast majority of The Bancorp Bank, N.A.’s deposits are low balance, insured deposits, and accordingly do not constitute the liquidity risk experienced by certain institutions. The deposit base is comprised as follows:

	September 30, 2025
Insured		92%
Low balance accounts(1)		3%
Other uninsured		5%
Total deposits		100%
(1) Comprised of small balances, such as anonymous gift cards and corporate incentive cards for which there is no identified depositor.

Loan Portfolio	September 30,			June 30,			December 31,			September 30,
	2025 (unaudited)			2025 (unaudited)			2024			2024 (unaudited)
	(Dollars in thousands)
SBL non-real estate	$	222,933		$	204,087		$	190,322		$	179,915
SBL commercial mortgage		729,620			723,754			662,091			665,608
SBL construction		34,518			30,705			34,685			30,158
Small business loans		987,071			958,546			887,098			875,681
Direct lease financing		693,322			698,086			700,553			711,836
SBLOC / IBLOC(1)		1,609,047			1,601,405			1,564,018			1,543,215
Advisor financing		285,531			272,155			273,896			248,422
Real estate bridge loans		2,131,689			2,140,039			2,109,041			2,189,761
Consumer fintech(2)		785,045			680,487			454,357			280,092
Other loans		164,487			169,945			111,328			46,586
		6,656,192			6,520,663			6,100,291			5,895,593
Unamortized loan fees and costs		16,445			14,769			13,337			11,023
Total loans, including unamortized fees and costs	$	6,672,637		$	6,535,432		$	6,113,628		$	5,906,616
(1) SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At September 30, 2025 and December 31, 2024, IBLOC loans amounted to $471.6 million and $548.1 million, respectively.
(2) At September 30, 2025, consumer fintech loans consisted of $416.0 million of secured credit card loans, with the balance comprised of other short-term extensions of credit.

The Bancorp Bank, N.A. emphasizes safety and soundness, and its balance sheet has a risk profile enhanced by the special nature of the collateral supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have experienced various economic stresses.

At September 30, 2025, consumer fintech loans included $416.0 million of secured credit card accounts, which are backed dollar for dollar by cash collateral by each individual cardholder and are required to be repaid in-full monthly. The remaining consumer fintech loans consist of cashflow underwritten short-term liquidity products to individual borrowers ranging in maturities from 30 to 365 days, with The Bancorp Bank, N.A.’s partner(s) providing a full guarantee against losses. The Bancorp Bank, N.A. maintains cash collateral for the expected losses on dollars already lent, as well as right of offset against other revenues generated through those relationships.

The REBL portfolio is largely comprised of rehabilitation bridge loans for apartment buildings. The Company has minimal exposure to non-multifamily commercial real estate such as office buildings. These loans generally have three-year terms with two one-year extension options to allow for the rehabilitation work to be completed and rentals stabilized for an extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders.

The REBL portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While the macro-economic environment has challenged the multifamily bridge space, the stability of the Company’s REBL portfolio is evidenced by the estimated values of the underlying collateral. The Company’s $2.13 billion REBL portfolio at September 30, 2025 has a weighted average origination date “as is” loan-to-value ratio of 70%, based on third-party appraisals. Further, the weighted average origination date “as stabilized” loan-to-value ratio (“LTV”), which measures the estimated value of the apartments after the rehabilitation is complete, may provide even greater protection.

As part of the underwriting process, The Bancorp Bank, N.A. reviews prospective borrowers’ previous rehabilitation experience in addition to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news searches, lien searches, visitations by bank personnel and/or designated engineers, and other information sources. Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early identification of potential issues and expedited action to address on a timely basis.

Operations and ongoing loan evaluation are overseen by multiple levels of management in addition to the REBL team’s experienced professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes a separate loan committee specific to REBL, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the REBL team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses methodology, all of which similarly do not report to anyone on the REBL team.

The SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50%-60% LTVs.

Additional details regarding our loan portfolios are included in the following sections of this press release. This press release also discloses in this press release is the summarization of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s risk profile inherent in its loan portfolios, funding, and earnings levels, may present opportunities to further increase stockholder value, while still prudently maintaining capital levels.

Small Business Lending

Small business loans as of September 30, 2025
		Loan principal
		(Dollars in millions)
Commercial mortgage SBA(1)		$	378
Construction SBA(2)			21
Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(3)			121
Non-SBA SBLs			128
Subtotal - SBL loans, excluding guaranteed portion and Other		$	648
U.S. government guaranteed portion of SBA loans(4)			407
Other(5)			4
Total SBL principal		$	1,059
SBL, at amortized cost			987
SBL, included in loans, at fair value(6)			72
Total SBL principal		$	1,059
(1) Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50%-60%, to which The Bancorp Bank, N.A. adheres.
(2) Includes $15 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $6 million in SBA interim loans with an approved SBA post-construction full takeout/payoff.
(3) Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the borrower must pledge that available collateral to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners.
(4) Includes the portion of SBA 7(a) Program loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.
(5) Comprised of $4 million of loans sold that do not qualify for true sale accounting.
(6) The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated.

Small business loans by type as of September 30, 2025
(Excludes government guaranteed portion of SBA 7(a) Program and Other loans)
		SBL commercial mortgage(1)			SBL construction(1)			SBL non-real estate			Total				% Total
			(Dollars in millions)
Funeral homes and funeral services		$	45		$	—		$	39		$	84			13%
Hotels (except casino hotels) and motels			83			—			—			83			13%
Full-service restaurants			31			2			3			36			6%
Child day care services			26			—			4			30			5%
Car washes			11			13			—			24			4%
Homes for the elderly			21			—			—			21			3%
Gasoline stations with convenience stores			15			1			—			16			2%
Outpatient mental health and substance abuse centers			15			—			—			15			2%
General line grocery merchant wholesalers			13			—			—			13			2%
Plumbing, heating, and air-conditioning companies			10			—			1			11			2%
Fitness and recreational sports centers			7			—			2			9			1%
Caterers			9			—			—			9			1%
Offices of lawyers			9			—			—			9			1%
Limited-service restaurants			4			—			3			7			1%
All other specialty trade contractors			6			—			1			7			1%
Used car dealers			7			—			—			7			1%
Charter bus industry			6			—			—			6			1%
Lessors of nonresidential buildings			6			—			—			6			1%
General warehousing and storage			6			—			—			6			1%
Automotive body, paint, and interior repair			6			—			—			6			1%
Nursing care facilities			6			—			—			6			1%
Appliance repair and maintenance			6			—			—			6			1%
Residential remodelers			5			—			—			5			1%
Offices of dentists			5			—			—			5			1%
Other(2)			179			8			34			221			34%
Total		$	537		$	24		$	87		$	648			100%
(1) Of the SBL commercial mortgage and SBL construction loans, $162 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans sold that do not qualify for true sale accounting.
(2) Loan types of less than $5 million are spread over approximately one hundred different business types.

SBL State diversification as of September 30, 2025
(Excludes government guaranteed portion of SBA 7(a) Program loans and Other loans)
		SBL commercial mortgage(1)			SBL construction(1)			SBL non-real estate			Total				% Total
			(Dollars in millions)
California		$	142		$	7		$	9		$	158			24%
Florida			85			8			5			98			15%
North Carolina			44			—			4			48			7%
New York			41			—			3			44			7%
Texas			30			5			6			41			6%
New Jersey			30			—			9			39			6%
Georgia			29			3			2			34			5%
Pennsylvania			19			—			13			32			5%
Maine			17			—			12			29			4%
Other states			100			1			24			125			21%
Total		$	537		$	24		$	87		$	648			100%
(1) Of the SBL commercial mortgage and SBL construction loans, $162 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans that do not qualify for true sale accounting.

Top 10 SBL loans as of September 30, 2025
(Excludes government guaranteed portion of SBA 7(a) Program loans and Other loans)
Type		State		Balance
		(Dollars in millions)
General line grocery merchant wholesalers		CA		$	13
Funeral homes and funeral services		ME			12
Funeral homes and funeral services		PA			12
Outpatient mental health and substance abuse center		FL			10
Hotel		FL			8
Funeral homes and funeral services		ME			8
Lawyer's office		CA			8
Hotel		VA			7
Hotel		NC			7
Charter bus industry		NY			6
Total				$	91

Commercial Real Estate Bridge Lending

Commercial real estate bridge lending, excluding SBA loans, are as follows:
Type as of September 30, 2025
Type			# Loans			Balance		Weighted average origination date LTV		Weighted average interest rate
			(Dollars in millions)
Real estate bridge loans (multifamily apartment loans recorded at amortized cost)(1)			178		$	2,132		70%		8.48%
Real estate bridge loans (non-SBA), at fair value			5			71		66%		6.60%
Total commercial real estate loans			183		$	2,203		70%		8.42%
(1) In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale but are now being retained on the balance sheet. In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third-party appraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 60%.

State diversification as of September 30, 2025									15 largest loans as of September 30, 2025
State			Balance			Origination date LTV			State				Balance		Origination date LTV
(Dollars in millions)									(Dollars in millions)
Texas		$	618			71%			Texas			$	46		75%
Georgia			317			70%			Texas				41		64%
Florida			233			68%			Michigan				39		62%
New Jersey			138			69%			New Jersey				35		62%
Indiana			137			71%			Florida				35		72%
Ohio			120			71%			Pennsylvania				34		63%
Michigan			75			64%			Indiana				34		76%
Other states each <$70 million			565			69%			Texas				32		67%
Total		$	2,203			70%			New Jersey				31		71%
									Texas				31		77%
									Georgia				30		69%
									Ohio				29		74%
									Texas				27		79%
									New Jersey				26		71%
									Texas				25		70%
									15 largest commercial real estate loans			$	495		70%

Institutional Banking

Institutional banking loans outstanding at September 30, 2025
Type	Principal			% of total
		(Dollars in millions)
SBLOC	$	1,137		60%
IBLOC		472		25%
Advisor financing		286		15%
Total	$	1,895		100%

SBLOC

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOC loans generally has been less, for two reasons. First, many collateral accounts are “balanced” and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.

Top 10 SBLOC loans at September 30, 2025
	Principal amount			% Principal to collateral
	(Dollars in millions)
	$	24		10%
		10		34%
		9		35%
		8		83%
		8		10%
		8		46%
		7		20%
		7		4%
		6		33%
		6		37%
Total and weighted average	$	93		28%

IBLOC

IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, ten insurance companies have been approved and, as of October 28, 2025, all were rated A- (Excellent) or better by AM BEST.

Direct Lease Financing

Direct lease financing by type as of September 30, 2025
		Principal balance(1)		% Total
		(Dollars in millions)
Government agencies and public institutions(2)	$	131		19%
Real estate and rental and leasing		130		19%
Construction		124		18%
Waste management and remediation services		94		14%
Health care and social assistance		29		4%
Other services (except public administration)		25		4%
Professional, scientific, and technical services		20		3%
Transit and other transportation		19		3%
Wholesale trade		17		2%
General freight trucking		12		2%
Arts, entertainment, and recreation		11		2%
Finance and insurance		10		1%
Other		71		9%
Total	$	693		100%
(1) Of the total $693 million of direct lease financing, $640 million consisted of vehicle and financing leases with the remaining balance consisting of equipment leases.
(2) Includes public universities as well as school districts.

Direct lease financing by state as of September 30, 2025
State		Principal balance		% Total
		(Dollars in millions)
Florida	$	120		17%
New York		56		9%
Utah		53		8%
Connecticut		48		7%
California		43		6%
Pennsylvania		40		6%
Texas		37		5%
Maryland		30		4%
New Jersey		29		4%
North Carolina		21		3%
Idaho		19		3%
Alabama		17		2%
Georgia		16		2%
Ohio		15		2%
Tennessee		13		2%
Other states		136		20%
Total	$	693		100%

Portfolio Performance
Allowance for credit losses		Nine months ended					Year ended
	September 30,			September 30,			December 31,
	2025 (unaudited)			2024 (unaudited)			2024
	(Dollars in thousands)
Balance in the allowance for credit losses at beginning of period	$	44,853		$	27,378		$	27,378
Loans charged-off:
SBA non-real estate		546			431			708
Direct lease financing		4,416			3,625			4,575
Consumer fintech		142,062			—			19,619
Other loans		924			16			18
Total		147,948			4,072			24,920
Recoveries:
SBA non-real estate		73			102			229
Direct lease financing		575			279			318
Consumer fintech		29,580			—			1,877
Other loans		5			1			1
Total		30,233			382			2,425
Net charge-offs		117,715			3,690			22,495
Provision for credit losses on non-consumer fintech loans		8,123			7,316			9,319
Provision for credit losses on consumer fintech loans		128,891			—			30,651
Balance in allowance for credit losses at end of period	$	64,152		$	31,004		$	44,853
Net charge-offs/average loans		1.85%			0.07%			0.40%
Net charge-offs/average assets		1.30%			0.05%			0.28%

Loan delinquency and Non-accrual	September 30, 2025
	30-59 days			60-89 days			90+ days						Total						Total
	past due			past due			still accruing			Non-accrual			past due			Current			loans
SBL non-real estate	$	—		$	—		$	2		$	7,125		$	7,127		$	215,806		$	222,933
SBL commercial mortgage		—			—			—			16,178			16,178			713,442			729,620
SBL construction		—			—			—			2,917			2,917			31,601			34,518
Direct lease financing		2,422			8,045			251			5,896			16,614			676,708			693,322
SBLOC / IBLOC		3,922			—			1,184			446			5,552			1,603,495			1,609,047
Advisor financing		—			—			—			—			—			285,531			285,531
Real estate bridge loans		—			19,372			17,942			36,677			73,991			2,057,698			2,131,689
Consumer fintech		20,439			1,951			1,163			—			23,553			761,492			785,045
Other loans		75			—			3			147			225			164,262			164,487
Unamortized loan fees and costs		—			—			—			—			—			16,445			16,445
	$	26,858		$	29,368		$	20,545		$	69,386		$	146,157		$	6,526,480		$	6,672,637

Other loan information

Of the $55.1 million special mention and $130.2 million substandard loans real estate bridge loans at September 30, 2025, none were modified in the third quarter of 2025.

Other real estate owned year to date activity
	Nine months ended
	September 30, 2025
Beginning balance	$	62,025
Transfer from loans, net		2,401
Total realized net gains included in earnings: Non-interest expense - other		594
Sales		(4,926)
Advances		1,880
Ending balance	$	61,974

Other real estate owned includes a REBL apartment building rehabilitation bridge loan with a balance of $43.0 million and $41.1 million as of September 30, 2025, and December 31, 2024, respectively. As of September 30, 2025, the majority of capital improvements on the property have been completed. Third-party appraisals on the property as of June 30, 2025, for “as stabilized” and "as is" values are $59.1 million and $51.4 million, respectively, or respective LTVs of 73% and 83%.

As previously disclosed, in June 2025, the Company terminated a pending agreement of sale for the property and demanded the escrow agent release to Company all earnest money deposits received to date, totaling $3.0 million. On June 26, 2025, without providing any legal or contractual basis to do so, the purchaser objected to the release of the earnest money deposits. In the third quarter of 2025, the matter was settled for $2.3 million which was recognized in other non-interest income.

Asset Quality Ratios
	September 30,			June 30,			December 31,			September 30,
	2025			2025			2024			2024
Nonperforming loans to total loans		1.35%			0.96%			0.55%			0.52%
Nonperforming assets to total assets		1.77%			1.45%			1.14%			1.28%
Allowance for credit losses to total loans		0.96%			0.91%			0.73%			0.52%

Non-GAAP Financial Measures

Calculation of efficiency ratio

The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. 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.

	Three months ended						Nine months ended
	September 30,			September 30,			September 30,			September 30,
	2025			2024			2025			2024
	(Dollars in thousands)
Net interest income	$	94,197		$	93,732		$	283,432		$	281,945
Non-interest income		80,416			32,108			247,801			92,212
Less: Consumer fintech loan credit enhancement		(39,790)			—			(128,891)			—
Adjusted total revenue(1)	$	134,823		$	125,840		$	402,342		$	374,157
Non-interest expense	$	56,404		$	53,255		$	166,921		$	151,413
Efficiency ratio		42%			42%			41%			40%
(1) Excludes consumer fintech loan credit enhancement income which represents the amount of consumer fintech loan charge-offs that we expect to recover under third-party contracts. The provision for those loans correlates to a like amount of credit enhancement income.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251030546928/en/

The Bancorp, Inc.

Andres Viroslav

Director, Investor Relations

215-861-7990

andres.viroslav@thebancorp.com

Source: The Bancorp, Inc.