The Bancorp (NASDAQ: TBBK) has KBRA credit ratings affirmed with stable outlook
Rhea-AI Filing Summary
The Bancorp, Inc. reported that Kroll Bond Rating Agency, LLC (KBRA) affirmed all long- and short-term credit ratings for the company and its wholly owned subsidiary, The Bancorp Bank, N.A. KBRA maintained BBB+ senior unsecured, BBB subordinated, and K2 short-term debt ratings for the company, and A- deposit and senior unsecured, BBB+ subordinated, and K2 short-term ratings for the bank, with a Stable outlook on long-term ratings.
KBRA highlighted The Bancorp’s leadership in banking-as-a-service and prepaid and debit cards, a 16% year-over-year increase in non-interest income in the first half of 2026 (excluding fintech loan credit enhancement), fee income of about 1.9% of average assets, return on average assets at or above 2.5% since 2023, and a total cost of funds of 1.86%. KBRA also cited a granular, durable deposit base and diversified, long-term fintech partnerships.
Positive
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Negative
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8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Company senior unsecured rating: BBB+
Bank deposit and senior unsecured rating: A-
Non-interest income growth: 16%
+3 more
6 metrics
Company senior unsecured rating
BBB+
KBRA affirmed rating for The Bancorp, Inc. senior unsecured debt
Bank deposit and senior unsecured rating
A-
KBRA affirmed ratings for The Bancorp Bank, N.A. deposit and senior unsecured debt
Non-interest income growth
16%
Year-over-year increase during the first half of 2026, excluding fintech loan credit enhancement
Fee income to average assets
1.9%
Fee income as a percentage of average assets in the first half of 2026
Return on average assets
2.5%
At or above this level since 2023, as cited by KBRA
Total cost of funds
1.86%
Total cost of funds for the first half of 2026
Key Terms
banking-as-a-service, non-interest income, cost of funds, return on average assets, +1 more
5 terms
banking-as-a-service financial
"a leader in the banking-as-a-service industry, particularly in the prepaid"
Banking-as-a-service is a model where a licensed bank provides core financial services—like deposit accounts, payments, lending, and compliance—as modular software that other companies can plug into their own products. For investors, it matters because it lets nonbank firms sell banking features without building a bank from scratch, creating new revenue streams, faster user growth, and platform value, while also concentrating regulatory and credit risks for providers.
non-interest income financial
"The Bancorp’s non-interest income increased 16% year over year"
Non-interest income is the money a bank or financial company earns from activities other than charging interest on loans, such as service fees, account charges, trading gains, and income from managing client investments. For investors, it matters because it diversifies a firm’s revenue stream—like a store that sells both products and offers repair services—making profits less tied to lending rates and helping stability when interest-driven income falls.
cost of funds financial
"KBRA highlighted The Bancorp’s total cost of funds of 1.86%"
The cost of funds is the average price a company or bank pays to obtain money—through deposits, loans, bonds or other borrowings—that it uses to run the business or make investments. It matters to investors because higher borrowing costs act like a heavier mortgage payment for a household, reducing profits, cash flow and the ability to pay dividends or invest in growth, while lower costs boost competitiveness and valuation.
return on average assets financial
"return on average assets has remained at or above 2.5% since 2023"
Return on average assets (ROAA) measures how efficiently a company turns its assets into profit by comparing profit after expenses to the average value of its assets over a period (usually the average of beginning and ending assets). It matters to investors because it shows how well management uses the company’s resources to generate returns—think of it as how much profit a baker earns from the oven space they actually used over time.
forward-looking statements regulatory
"Statements in this press release that are not historical facts are “forward-looking statements”"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What ratings did KBRA affirm for The Bancorp, Inc. (TBBK)?
KBRA affirmed BBB+ for senior unsecured debt, BBB for subordinated debt, and K2 for short-term debt at The Bancorp, Inc. The outlook on long-term ratings remains Stable, indicating KBRA sees no near-term pressure to change these ratings.
What ratings did KBRA affirm for The Bancorp Bank, N.A. (TBBK’s bank subsidiary)?
KBRA affirmed the bank’s A- ratings for deposit and senior unsecured debt, BBB+ for subordinated debt, and K2 for short-term deposit and debt. These affirmed ratings, with a Stable outlook on long-term ratings, reflect KBRA’s view of the bank’s credit profile.
How did The Bancorp, Inc. (TBBK) perform on non-interest income in early 2026?
The Bancorp’s non-interest income increased 16% year over year in the first half of 2026, excluding fintech loan credit enhancement. KBRA highlighted this growth, along with fee income of about 1.9% of average assets, as part of its ratings rationale.
What profitability metrics did KBRA highlight for The Bancorp, Inc. (TBBK)?
KBRA noted that The Bancorp’s return on average assets has remained at or above 2.5% since 2023. This sustained profitability level supported the affirmation of the company’s and bank’s credit ratings with a Stable long-term outlook.
What funding and partnership strengths did KBRA cite for The Bancorp, Inc. (TBBK)?
KBRA cited a total cost of funds of 1.86% for the first half of 2026 and described The Bancorp’s deposit base as granular and durable. It also noted effective management of fintech partnerships with mature companies under long-term contracts across multiple business lines.
How does KBRA describe The Bancorp, Inc. (TBBK) in the banking-as-a-service market?
KBRA cited The Bancorp’s long-standing leadership in banking-as-a-service, especially in prepaid and debit cards. The Bancorp is described as the largest issuer of prepaid cards in the U.S. by transaction volume and among the top U.S. debit card issuers.