The Bancorp (NASDAQ: TBBK) posts strong Q1 EPS and sets 2027 guidance with major buybacks
Rhea-AI Filing Summary
The Bancorp, Inc. reported strong first-quarter 2026 results, with net income of $60.1 million and diluted EPS of $1.41, up 18% from a year earlier. Return on assets was 2.57% and return on equity was 35.1%, reflecting high profitability.
Total loans reached $7.88 billion and average deposits were $8.32 billion, driven largely by fintech relationships that now generate the vast majority of deposits and growing fee income. Net charge-offs and credit loss provisions declined versus 2025 as fintech credit performance improved.
Management reaffirmed 2026 EPS guidance of $5.90 and targets about $1.75 EPS in fourth-quarter 2026. Preliminary 2027 EPS is projected between $8.10 and $8.30, supported by fintech initiatives, platform efficiency and substantial share repurchases, including $50 million in buybacks during the quarter.
Positive
- Strong profitability and EPS growth: Q1 2026 net income reached $60.1 million and diluted EPS was $1.41, an 18% year-over-year increase, with ROA of 2.57% and ROE of 35.1%, indicating robust returns versus typical regional banks.
Negative
- None.
Insights
Q1 shows high profitability, growing fintech engine, and aggressive EPS targets supported by buybacks.
The Bancorp delivered diluted EPS of $1.41, with ROA of 2.57% and ROE of 35.1% for Q1 2026. Loan balances rose to $7.88B, led by a $1.07B year-over-year increase in fintech loans, while average deposits climbed to $8.32B, mostly from fintech partners.
Non-interest income excluding credit enhancement grew versus both Q4 and prior year, and fintech fees increased to $38.1M. Credit metrics improved: total provision fell to $27.6M and net charge-offs declined to 1.68% of average loans (annualized), aided by better unsecured fintech performance.
Management reaffirmed $5.90 EPS guidance for 2026 and introduced a $8.10–$8.30 range for 2027, tied to fintech growth, efficiency gains and substantial share repurchases. The company returned $50.0M via buybacks in Q1 and plans significant ongoing capital return, which could support EPS accretion if execution on fintech initiatives and partner timelines tracks expectations.
8-K Event Classification
Key Figures
Key Terms
gross dollar volume financial
Fintech loan credit enhancement financial
efficiency ratio financial
Tier 1 Capital to risk-weighted assets financial
nonperforming assets financial
Allowance for credit losses financial
Earnings Snapshot
Management reaffirmed 2026 EPS guidance of $5.90, targeted about $1.75 EPS in Q4 2026, and provided preliminary 2027 EPS guidance of $8.10 to $8.30.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
Commission File Number:
| (State or other jurisdiction of | (IRS Employer | |
| incorporation) | Identification No.) |
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
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Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
| Item 2.02. | Results of Operations and Financial Condition |
On April 23, 2026, The Bancorp, Inc. (the “Company”) issued a press release regarding its earnings for the three months ended March 31, 2026. A copy of this press release is furnished with this report as Exhibit 99.1.
| Item 7.01. | Regulation FD Disclosure |
The Company hereby furnishes the information set forth in the presentation attached hereto as Exhibit 99.2, which is incorporated herein by reference.
The information being furnished pursuant to Item 2.02 and Item 7.01 in this Current Report, including the exhibits hereto, is to be considered “furnished” pursuant to Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
| Item 9.01. | Financial Statements and Exhibits |
| (d) Exhibits | ||
| 99.1 | Press Release | |
| 99.2 | Investor Presentation | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: April 23, 2026 | The Bancorp, Inc. | |
| By: | /s/ Dominic Canuso | |
| Name: | Dominic Canuso | |
| Title: | Chief Financial Officer (Principal Financial Officer) | |
Exhibit 99.1
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
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. |
_______
* See “Non-GAAP Financial Measures” section at the end of the document for detailed description.
1
Wilmington, DE – April 23, 2026 – 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.”
| (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#.
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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.
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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.
4
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.
5
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. Contact
Andres Viroslav, Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Source: The Bancorp, Inc.
6
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 | ||||||
7
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 | ||||||||
8
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. |
9
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.
10
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 past due | 60-89 days past due | 90+ days still accruing | Non-accrual | Total past due | Current | Total 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, Inc. | The Bancorp Bank, N.A. | “Well 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.
11
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% | ||||||||||||
12
Exhibit 99.2
The Bancorp Investor Presentation April 2026
Forward Looking Statements & Other Disclosures © The Bancorp | Investor Presentation, April 2026 2 Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) 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.” These forward - looking statements rela te 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 Bancorp does not undertake any duty to publicly revise or update forward - looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation. , except as may be required under applicable law. This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), such as those identified in the Appendix. Any non - GAAP financial measures used in this presentation are in addition to, and should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. Non - GAAP financial measures are subject to significant inherent limitations. The non - GAAP measures presented herein may not be comparable to similar non - GAAP measures presented by other companies. This presentation includes market, industry and economic data that was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying economic and other assumptions relied upon by such sources. The Company believes that its market, industry, and economic data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp’s website at www.thebancorp.com .
Company Overview 3 We are defining the future of banking. Through our dynamic portfolio of payment, lending and platform solutions, we help propel our client's success, while delivering value to the investors we serve, the communities where we operate and the employees who enable our mutual success. Our Vision Fostering prosperity through the perpetual transformation of banking #1 U.S. Issuer of Prepaid cards #6 Debit and prepaid issuer volume Latest Nilson 1 rankings: 1) Nilson Report, April 2025 © The Bancorp | Investor Presentation, April 2026 Fintech Solutions Credit Solutions
Business Model and Strategy © The Bancorp | Investor Presentation, April 2026 4 Leading fintech sponsor bank combined with specialized lending across our Credit Solutions businesses Real Estate Bridge Lending Focus on value - add multifamily assets in primary markets Small Business Lending SBA and conventional loans for business growth Fleet Management Services Comprehensive financing for government and commercial fleets Institutional Banking Lending solutions for wealth management firms and clients Sponsored Lending Full range of lending programs with a suite of customizable options CREDIT SOLUTIONS FINTECH SOLUTIONS Payment Services Real - time, end - to - end payment processing Program Sponsorship Prepaid, debit and credit cards for nonbank companies Embedded Finance Integrated financial services programs for employees, customers and vendors
© The Bancorp | Investor Presentation, April 2026 5 Established: Maintain and grow sponsor bank market leadership, continue Credit Solutions businesses on and off - balance sheet, and seek to return ~100% of Net Income to shareholders annually Incremental: Launch Embedded Finance, transform balance sheet into fintech dominated mix and monetize core competencies Annual EPS Growth (strategy) 10% - 15% 5% - 15%+ Incremental APEX 2030 15% - 30%+ Annualized EPS Growth Financial Performance Expectations APEX 2030 strategic plan outlines the path to magnify our strong baseline earnings and deliver the financial performance of a fintech focused financial institution
Key Financial Metrics and Long - term Strategy © The Bancorp | Investor Presentation, April 2026 1) KBW Nasdaq Regional Banking Index (KRX) 2)All metrics are through 12/31/2025 6 Long - term strategy Performance 2025 2024 2023 2022 Key Metric Increase profitability through shift to Fintech dominated company with a bank 50%+ >2.5x banks 1 and driven by growing Fintech Solutions and Credit Solutions 29% 27% 26% 19% Return on equity Maximize productive use of assets and manage risk 4.0%+ Increasingly productive use of balance sheet and operating platform, increased fee revenue & decrease in efficiency ratio 2.5% 2.7% 2.6% 1.8% Return on assets Capital Return 2 4 - Year Cumulative Metrics Seek to return ~100% of net income to shareholders ~100% Capital management is an integral part of The Bancorp’s strategy including managing to an asset cap of $10B (per FRB Reg II, Durbin) 102% Capital returned as % of Net income $785 Total capital returned ($mm, via share buybacks) 30% % of Shares repurchased
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2022 2023 2024 2025 2026 Guidance Q4 2026 Annualized "Run Rate" 2027 Preliminary Guidance Earnings Per Share 1 (diluted) 7 We are focused on the Q4 2026 run - rate as the inflection point where key initiatives accelerate our growth and set us on the path to achieving our Apex 2030 plan. $7.00 run rate in Q4 2026 and $8.10 - $8.30 in 2027. Key assumptions: • Fintech revenue growth from existing programs, and new partnerships, credit sponsorship and embedded finance • Share buybacks driven by core earnings • Methodical reallocation or reduction in resources • Efficiency and productivity gains through the use of AI tools and scalable operational platform $5.90 $3.49 $4.29 $7.00 $8.10 - $8.30 $2.27 © The Bancorp | Investor Presentation, April 2026 $4.92 1) 2026, Q4 2026 run rate and 2027 guidance range assumes achievement of management’s key initiatives, including critical pieces of the Apex 2030 strategic plan. 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.
Fintech Solutions Overview © The Bancorp | Investor Presentation, April 2026 8 Key Statistics Total payment volume 1 $1T+ Gross dollar volume 1 (GDV) $186B Active Accounts 2 50 mm + Fintech Partners 2 40+ 1) Trailing twelve months (TTM) through Q1 2026 2) Q1 2026 Program Sponsorship D ebit , credit, and prepaid card issuing for fintechs Sponsored Lending Full range of lending programs including earned wage access, installment, and others with a suite of customizable options Payment Services Real - time, end - to - end payment processing including ACH, Fed Now, Push to Card, products Experienced fintech experts who combine urgency with rigor, leveraging technology, industry knowledge, creative expertise and regulatory acumen to partner with fintech innovators.
Embedded Finance Direct end - to - end delivery and program management of all current sponsorship offerings Fintech Solutions © The Bancorp | Investor Presentation, April 2026 9 Product overview $7.8B Deposits 1 (93% total bank deposits) $145mm Fee Income 2 1.64% Cost of Deposits 1 $1.65B Total Loans 3 (21% of total bank loans) Sponsored Lending • Origination of multiple credit products – Consumer installment – Secured card – Earned wage access – Other $18mm TTM Fee Income 1) Q1 2026 average 2) Trailing twelve months (TTM) through Q1 2026 . 3) Q1 2026 Payment Services • Full - spectrum suite of payments enables single - source provider advantage • All payment modalities serviced: Push2Card, ACH, RTP, Fed Now $22mm TTM Fee Income Program Sponsorship • 10+ Distinct consumer and commercial segments, such as: – Consumer debit – Healthcare – Corporate payments • #1 prepaid card issuer and #6 debit card issuer $105mm TTM Fee Income + = +
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2024 2025 Q1 2026 Credit Solutions Loans ($ billions) © The Bancorp | Investor Presentation, April 2026 1) Excludes fintech net charge - offs of $17.7mm, $151.1mm, and $30.2mm in 2024, 2025, and Q1 2026, respectively, and averag e fintech balances of $138mm, $607mm, and $1,115mm in 2024, 2025, and Q1 2026, respectively 10 Q1 Yield Strategy Overview Business 8.0% Deliver strong yields, fee income and moderate balance sheet growth Fleet vehicle leasing across commercial and government entities Commercial Fleet Leasing 7.0% Continue steady growth and credit performance while maintaining off balance sheet opportunities SBA 7a and 504, focused conventional lending with national footprint Small Business Lending 5.7% Maintain momentum in non - purpose securities lending (SBLOC) Lending and banking services to wealth managers and clients Institutional Banking 7.6% Maintain mix with opportunity to originate and sell 3 - 5 - year bridge loans for purchase and rehabilitation of multi - family workforce housing Real Estate Bridge Lending - Maintain strong credit performance Below market net charge - off ratio with uptick in 2025 driven by a few isolated Leasing clients Credit Performance 0.04% 0.10% 0.08% Charge - off ratio excl. Fintech 1 Balance mix and interest rates Credit Solutions Overview $6.2 $6.2 $5.8
© The Bancorp | Investor Presentation, April 2026 11 Securities Portfolio Carefully crafted portfolio focused on fixed rates with a 4.6 year duration 1 4.8% 5.2% 5.0% Yield 17% 18% 17% % Total Assets 83% 83% 82% Agency % Total 85% 84% 83% % Fixed Commercial Mortgage - backed securities Other Residential Mortgage - backed securities Asset - backed securities Liquidity Largely comprised of granular, transaction related deposits with significant unused borrowing capacity Deposits from Fintech Solutions 2 $7.8B Fintech Solutions deposits % of total deposits 2 93% Insured deposits (% of total) 3 9 4 % Unused lines across FHLB and FED 3 $3.0B Net deposits swept off balance sheet 3 $1.3B 1) Modified duration Q1 2026 2) Q1 2026 average 3) As of Q1 2026 51% 52% 52% 29% 31% 31% 14% 14% 14% 6% 3% 3% $1,503 $1,672 $1,647 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2024 2025 Q1 2026 Fair Value ($ millions)
-50% 0% 50% 100% 150% 200% 250% 300% 2021 2022 2023 2024 2025 2026 5 - Year % Change in Stock Price 1 Stock Performance vs Market Benchmarks © The Bancorp | Investor Presentation, April 2026 12 The Bancorp, S&P 500 and NASDAQ Banks indices The Bancorp has significantly outperformed both broad market indices and the KBW Nasdaq bank index since Q1 2021 159% 64% 29% S&P 500 KBW Bank Index 62% NASDAQ TBBK CAGR 1 - Year 2% 3 - Year 25% 5 - Year 21% KBW Regional Bank Index 4% 1) Reporting period: April 1, 2021 - April 1, 2026
0% 5% 10% 15% 20% 25% 30% 35% 2021 2022 2023 2024 2025 5 - Year ROE Performance 1 Return on Equity vs Market Benchmarks © The Bancorp | Investor Presentation, April 2026 13 The Bancorp, Select Peers, S&P 500 and NASDAQ Banks indices The Bancorp has significantly increased its profitability since 2021 29% KBW Regional Bank Index 9% 11% KBW Bank Index 16% Select Peers 2 1) ROE reflects annual data for fiscal years 2021 - 2025 2) Select Peers across sponsor bank market