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

Key Terms

gross dollar volume technical

Gross dollar volume is the total dollar value of all shares or securities traded on an exchange or platform over a given period, calculated by multiplying each trade’s share count by its price and adding them up. Think of it like the total sales dollars at a busy store: higher gross dollar volume shows more trading activity and liquidity, which matters to investors because it affects how easily positions can be bought or sold and signals market interest in a security.

credit enhancement income financial

Credit enhancement income is the money earned from tools or agreements that make a loan or bond safer for lenders — for example, guarantees, reserve funds, or letters of credit that backstop payments. Think of it like a fee or interest earned for providing an insurance layer that reduces the chance of loss; for investors, it affects the expected cash flow and risk profile of a security and can change yield, price stability, and credit ratings.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

tier 1 capital regulatory

Tier 1 capital is a bank’s core financial cushion—mainly common stock, retained earnings and certain reserves—that can absorb losses while the bank keeps operating. Investors care because it signals a lender’s ability to survive stress, meet regulatory requirements and continue lending or paying dividends; think of it as the engine’s safety margin that keeps a car running through bumps in the road.

risk-weighted assets regulatory

Risk-weighted assets are a bank’s assets (like loans and investments) adjusted by how risky regulators consider each one, so safer items count less and riskier items count more. Think of it as packing a suitcase where heavy, fragile items take up more “real” space; higher risk-weighted assets mean a bank must hold more capital as a cushion. Investors watch this because it affects a bank’s safety, regulatory limits and ability to lend or return money to shareholders.

common equity tier 1 regulatory

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.

senior note financial

A senior note is a loan-like security a company issues to raise money, promising regular interest payments and to return the principal at a set date. It has higher repayment priority than other company debts, so if the company struggles the holders get paid before subordinated creditors; think of it as standing earlier in line at a checkout. That priority typically means lower risk and lower yield, making senior notes useful for assessing repayment likelihood and credit strength.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

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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.

WILMINGTON, Del.--(BUSINESS WIRE)-- 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.

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* 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/.

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* 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

Source: The Bancorp, Inc.