TBBK The Bancorp, Inc.

NASDAQ
$69.68

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

Thursday, April 23, 2026 · 4:05 PM ET Business Wire

First Quarter 2026 Highlights

  • Earnings per diluted share (“EPS”) of $1.41 compared to $1.19 for 1Q 2025, an increase of 18%.
  • Return on assets of 2.57% compared to 2.49% for 1Q 2025.
  • Return on equity of 35.1% compared to 28.6% for 1Q 2025.
  • Net income of $60.1 million compared to net income of $57.2 million for 1Q 2025.
  • Net interest income of $88.8 million compared to $91.7 million for 1Q 2025.
  • Net interest margin of 3.87% compared to 4.07% for 1Q 2025.
  • Ending Loans, net of deferred fees and costs of $7.75 billion, compared to $6.38 billion at 1Q 2025, a 22% increase, and $7.12 billion at 4Q 2025, a 9% increase (not annualized).
  • Ending Fintech loans of $1.65 billion, or 20.9% of total loans, compared to $574.0 million at 1Q 2025, a 187% increase, and $1.10 billion at 4Q 2025, a 50% increase (not annualized).
  • Average deposits of $8.32 billion increased $5.3 million, or less than 1% from $8.31 billion in 1Q 2025 and increased $721.1 million, or 9%, from $7.60 billion in 4Q 2025. The average interest rate was 1.70% compared to 2.23% for 1Q 2025 and 1.77% in 4Q 2025.
  • Gross dollar volume (“GDV”), representing the total amount spent on prepaid, debit and credit cards totaled $52.51 billion, an increase of $7.86 billion, or 18%, compared to 1Q 2025.
  • Fees on consumer credit from fintech loans increased 55% to $5.6 million for 1Q 2026 compared to $3.6 million for 1Q 2025 and increased 24% from $4.5 million in 4Q 2025.
  • Total prepaid, debit card, ACH, and other payment fees of $32.5 million, a 5% increase, compared to $30.8 million in 1Q 2025.
  • Non-interest income totaled $72.5 million, or 45.0% of total revenue and $43.7 million*, or 33.0% when excluding credit enhancement income.* This compares to 47.7% of total revenue in 1Q 2025, or 29.2% when excluding credit enhancement income.*
  • Ending Real estate bridge loans (“REBL”) characterized as criticized assets decreased to $59.1 million from $83.5 million at 4Q 2025, a 29% decrease and decreased 70% compared to $200.0 million at 1Q 2025.
  • Share repurchases of $50.0 million, for 843,061 shares, or 2.0% of issued and outstanding shares, at an average cost of $59.31.

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.

_______ 

* See “Non-GAAP Financial Measures” section at the end of the document for detailed description.

Non-Interest Expense

Total non-interest expense of $55.0 million decreased $1.2 million from 4Q 2025 and increased $1.7 million from 1Q 2025. The decrease from 4Q 2025 is primarily driven by a $4.0 million favorable variance in legal settlements where we recognized a $2.0 million expense in 4Q 2025 and a $2.0 million recovery in 1Q 2026. That amount was partially offset by higher salary and benefits costs of $3.1 million, driven primarily by $2.6 million related to timing of incentive accruals.

The increase of $1.7 million from 1Q 2025 is primarily driven by $3.8 million higher salary and employee benefits including $1.1 million of costs incurred in 1Q 2026 associated with organization changes and $1.8 million of higher costs related to incentive accruals, partially offset by $2.0 million reimbursement from insurance related to a legal settlement that was previously expensed in 4Q 2025.

Efficiency ratio* was 41.5% for 1Q 2026, compared to 42.5% for 4Q 2025 and 41.1% for 1Q 2025.

Income Taxes

Income tax expense was $18.6 million for 1Q 2026, $18.7 million for 4Q 2025, and $18.1 million for 1Q 2025. Our effective income tax rate was 23.7% for 1Q 2026, 24.9% for 4Q 2025, and 24.0% for 1Q 2025. The decline in rate for the first quarters is primarily driven by vesting activity of stock awards in those periods.

Capital

As of March 31, 2026, capital levels for The Bancorp Bank, N.A. (the “Bank”) continue to be strong and in excess of the “well capitalized” regulatory benchmarks, with Tier 1 Capital to average assets (Leverage), Tier 1 Capital to Risk-Weighted Assets, Total Capital to Risk-Weighted Assets and Common Equity Tier 1 to Risk-Weighted Assets ratios for the Bank of 9.18%, 14.06%, 15.10%, and 14.06%, respectively, and for the Company of 7.30%, 11.21%, 12.26%, and 11.21%, respectively.

Book value per common share at March 31, 2026 was $16.65, compared to $16.29 at December 31, 2025 (a 9% increase, annualized). Total shareholders’ equity increased by $7.2 million, driven primarily by $60.1 million of net income partially offset by $50.3 million of share repurchases. Compared to March 31, 2025, total shareholders’ equity decreased by $132.7 million, primarily driven by $391.0 million of share repurchases partially offset by $231.1 million of net income and $19.8 million of stock-based compensation. Outstanding shares decreased 5.121 million since March 31, 2025, driven primarily by share repurchases.

Outstanding shares decreased by 496,816 since December 31, 2025 to 41.859 million, driven primarily by share repurchases. During 1Q 2026, we repurchased 843,061 shares of our common stock, or 2% of issued and outstanding shares, at an average cost of $59.31 per share for a total capital return of $50.0 million.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), through its subsidiary, The Bancorp Bank, N.A., is defining the future of banking. As one of the first banks to embrace fintech, The Bancorp has been a driving force behind the industry’s evolution, serving as an essential financial enabler of Fintech innovation for more than 25 years. Led by its Fintech Solutions business, the company delivers a dynamic portfolio of payment and lending solutions that empowers its clients to turn bold ideas into real-world success.

Ranked by the Nilson Report as the No. 1 issuer of prepaid cards in the U.S. and among the top 10 debit card issuers nationally, The Bancorp also holds leading positions in its Institutional Banking, Small Business Lending, Fleet Management Services, and Real Estate Bridge Lending businesses. Across every line of business, The Bancorp fosters prosperity through the perpetual transformation of banking and aims to drive growth for its clients, investors, employees, and the communities it serves. For more information, visit https://thebancorp.com/.

_______

* See “Non-GAAP Financial Measures” section at the end of the document for detailed description.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp’s business that are not historical facts, are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “will,” “could,” “continue” or the negative thereof and similar terms or expressions. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2026 and 2027 results, including earnings per share accretion, future growth, profitability, productivity and efficiency, the expansion, expected timelines, and implementation of our Fintech initiatives and revenue streams, the possible benefits of our platform restructuring and adoption of AI tools, and share repurchases. Such forward-looking statements relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.

 
THE BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)
 
 
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except share and per share data)
 

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31,

 

2026

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

88,814

 

$

91,743

 

 

 

 

 

 

Provision (reversal) for credit losses on non-fintech loans

 

(1,348)

 

 

874

Provision for credit losses on fintech loans

 

28,843

 

 

45,868

Provision for unfunded commitments

 

106

 

 

111

Provision for credit losses, total

 

27,601

 

 

46,853

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

Fintech fees

 

 

 

 

 

ACH, card and other payment fees

 

5,796

 

 

5,132

Prepaid, debit card and related fees

 

26,677

 

 

25,714

Consumer credit fintech fees

 

5,596

 

 

3,600

Total fintech fees

 

38,069

 

 

34,446

Net realized and unrealized gains on commercial loans, at fair value

 

6

 

 

361

Leasing related income

 

1,901

 

 

1,972

Fintech loan credit enhancement

 

28,843

 

 

45,868

Other non-interest income

 

3,706

 

 

995

Total non-interest income

 

72,525

 

 

83,642

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

37,477

 

 

33,669

Data processing expense

 

1,309

 

 

1,205

Legal expense

 

1,590

 

 

1,957

Legal settlement (reimbursement)

 

(2,000)

 

 

—

FDIC insurance

 

1,251

 

 

1,053

Software

 

5,369

 

 

5,013

Other non-interest expense

 

10,030

 

 

10,397

Total non-interest expense

 

55,026

 

 

53,294

Income before income taxes

 

78,712

 

 

75,238

Income tax expense

 

18,643

 

 

18,065

Net income

$

60,069

 

$

57,173

 

 

 

 

 

 

Earnings per share - basic

$

1.43

 

$

1.21

Earnings per share - diluted

$

1.41

 

$

1.19

 

 

 

 

 

 

Weighted average shares - basic

 

42,133,301

 

 

47,214,050

Weighted average shares - diluted

 

42,594,824

 

 

47,959,292

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2026

 

2025

 

2025

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

8,673

 

$

8,038

 

$

10,162

 

$

9,684

Interest earning deposits

 

58,510

 

 

104,611

 

 

74,517

 

 

1,011,585

Total cash and cash equivalents

 

67,183

 

 

112,649

 

 

84,679

 

 

1,021,269

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities, available-for-sale, at fair value

 

1,646,541

 

 

1,671,750

 

 

1,384,256

 

 

1,488,184

Commercial loans, at fair value

 

128,260

 

 

139,389

 

 

142,658

 

 

211,580

Loans, net of deferred fees and costs

 

7,753,683

 

 

7,116,676

 

 

6,672,637

 

 

6,380,150

Allowance for credit losses

 

(63,017)

 

 

(66,200)

 

 

(64,152)

 

 

(52,497)

Loans, net

 

7,690,666

 

 

7,050,476

 

 

6,608,485

 

 

6,327,653

Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock

 

37,785

 

 

25,205

 

 

25,250

 

 

16,250

Accrued interest receivable

 

41,315

 

 

43,090

 

 

43,831

 

 

42,464

Other real estate owned

 

60,998

 

 

60,695

 

 

61,974

 

 

67,129

Deferred tax asset, net

 

21,139

 

 

18,679

 

 

10,034

 

 

13,585

Credit enhancement asset

 

29,769

 

 

31,138

 

 

29,318

 

 

20,199

Other

 

175,108

 

 

199,354

 

 

208,939

 

 

177,414

Total assets

$

9,898,764

 

$

9,352,425

 

$

8,599,424

 

$

9,385,727

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

8,281,037

 

$

7,827,037

 

$

7,254,896

 

$

8,283,262

Savings and money market

 

148,988

 

 

338,459

 

 

75,901

 

 

81,320

Total deposits

 

8,430,025

8,165,496

7,330,797

8,364,582

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

470,000

 

 

199,000

 

 

200,000

 

 

—

Senior debt

 

196,320

 

 

196,253

 

 

196,052

 

 

96,303

Subordinated debenture

 

13,401

 

 

13,401

 

 

13,401

 

 

13,401

Other long-term borrowings

 

13,626

 

 

13,712

 

 

13,806

 

 

13,988

Other liabilities

 

78,442

74,767

67,206

67,766

Total liabilities

$

9,201,814

$

8,662,629

$

7,821,262

$

8,556,040

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

696,950

 

 

689,796

 

 

778,162

 

 

829,687

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

9,898,764

$

9,352,425

$

8,599,424

$

9,385,727

 
AVERAGE BALANCE SHEET - QTD
(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2026

 

 

Three months ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

Average

 

 

 

 

Average

Assets:

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-fintech loans

$

6,132,928

 

$

105,598

 

 

6.89%

 

$

5,913,806

 

$

108,562

 

7.34%

Fintech loans

 

1,115,138

 

 

1,826

 

 

0.66%

 

 

466,809

 

 

240

 

0.21%

Loans, net of deferred fees and costs(1)

$

7,248,066

 

$

107,424

 

 

5.93%

 

$

6,380,615

 

$

108,802

 

6.82%

Leases-bank qualified(2)

 

6,922

 

 

152

 

 

8.78%

 

 

5,853

 

 

139

 

9.50%

Investment securities-taxable

 

1,662,417

 

 

19,920

 

 

4.79%

 

 

1,489,329

 

 

18,127

 

4.87%

Investment securities-nontaxable(2)

 

10,426

 

 

165

 

 

6.33%

 

 

6,256

 

 

105

 

6.71%

Interest earning deposits

 

250,018

 

 

2,196

 

 

3.51%

 

 

1,136,402

 

 

12,680

 

4.46%

Net interest earning assets

 

9,177,849

 

 

129,857

 

 

5.66%

 

 

9,018,455

 

 

139,853

 

6.20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(55,633)

 

 

 

 

 

 

 

 

(44,915)

 

 

 

 

 

Other assets

 

361,873

 

 

 

 

 

 

 

 

345,791

 

 

 

 

 

 

$

9,484,089

 

 

 

 

 

 

 

$

9,319,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and interest checking

$

8,088,696

 

$

33,210

 

 

1.64%

 

$

8,174,676

 

$

45,045

 

2.20%

Savings and money market

 

227,961

 

 

2,079

 

 

3.65%

 

 

136,688

 

 

1,330

 

3.89%

Total deposits

 

8,316,657

 

 

35,289

 

 

1.70%

 

 

8,311,364

 

 

46,375

 

2.23%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

145,884

 

 

1,381

 

 

3.79%

 

 

—

 

 

—

 

—

Long-term borrowings

 

13,687

 

 

197

 

 

5.76%

 

 

14,050

 

 

195

 

5.55%

Subordinated debentures

 

13,401

 

 

235

7.01%

 

 

13,401

 

 

255

7.61%

Senior debt

 

196,203

 

 

3,875

7.90%

 

 

96,244

 

 

1,234

5.13%

Total deposits and liabilities

 

8,685,832

 

 

40,977

 

 

1.89%

 

 

8,435,059

 

 

48,059

 

2.28%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

104,884

 

 

 

 

 

 

 

 

74,537

 

 

 

 

 

Total liabilities

 

8,790,716

 

 

 

 

 

 

 

 

8,509,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

693,373

 

 

 

 

 

 

 

 

809,735

 

 

 

 

 

 

$

9,484,089

 

 

 

 

 

 

 

$

9,319,331

 

 

 

 

 

Net interest income on tax equivalent basis(2)

 

 

 

$

88,880

 

 

 

 

 

$

91,794

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

66

 

 

 

 

 

 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

88,814

 

 

 

$

91,743

Net interest margin(2)

 

 

 

 

 

 

 

3.87%

 

 

 

 

 

 

 

4.07%

(1)

Includes commercial loans, at fair value. All periods include non-accrual loans.

(2)

Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2026 and 2025.

 

 

 

 

 

 

 

 

 

 

BUSINESS LINE QUARTERLY SUMMARY

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2026

 

 

 

 

 

 

 

% Growth in balance

Loans:

 

 

Total(1)

 

Average rates(2)

 

Linked quarter
annualized

 

Year over Year

Real estate bridge loans - recorded at amortized cost

$

2,279,454

 

7.63%

 

16.54%

 

3.05%

Real estate bridge loans (non-SBA) - recorded at fair value

 

63,730

 

6.79%

 

nm

 

nm

SBLOC/IBLOC and Advisor financing

 

1,979,520

 

5.66%

 

3.12%

 

7.40%

Small business lending

 

1,063,390

 

6.98%

 

(4.42%)

 

6.48%

Fintech loans - non-interest bearing(3)

 

1,473,238

 

—

 

nm

 

nm

Fintech loans - interest bearing

 

173,362

 

4.88%

 

nm

 

nm

Direct lease financing

 

678,740

 

8.01%

 

(3.90%)

 

(4.40%)

Other loans

 

155,825

 

5.54%

 

(4.04%)

 

38.73%

Unamortized loan fees and costs

 

14,684

 

—

 

nm

 

nm

Total loan portfolio

$

7,881,943

 

5.54%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Fintech

 

$

7,775,692

 

1.64%

 

30.23%

 

(0.49%)

Non-fintech

 

 

540,965

 

2.57%

 

nm

 

nm

Total deposits

 

$

8,316,657

 

1.70%

 

 

 

 

(1)

Loan and deposit categories are based on period-end and average quarterly balances, respectively. Total loan portfolio includes both loans recorded at amortized cost and loans at fair value.

(2)

Average annualized rates are for the three months ended March 31, 2026.

(3)

Income related to non-interest-bearing balances is included in non-interest income.

PORTFOLIO PERFORMANCE

(Dollars in thousands)
 
Credit Quality

 

March 31,

 

December 31,

 

March 31,

 

2026

 

2025

 

2025

As of period end:

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.97%

 

 

1.04%

 

 

0.51%

Nonperforming assets to total assets

 

1.37%

 

 

1.44%

 

 

1.10%

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans(1)

 

0.81%

 

 

0.93%

 

 

0.82%

Allowance for credit losses on loans to total assets

 

0.64%

 

 

0.71%

 

 

0.56%

 

 

 

 

 

 

 

 

 

For the three months ended:

 

 

 

 

 

 

 

 

Net charge-offs:

 

 

 

 

 

 

 

 

Fintech

$

30,212

 

$

38,584

 

$

38,578

Non-fintech

 

466

 

 

629

 

 

520

Total

$

30,678

 

$

39,213

 

$

39,098

 

 

 

 

 

 

 

 

 

Net charge-offs/average loans (annualized)

 

1.68%

 

 

2.29%

 

 

2.44%

Net charge-offs/average assets (annualized)

 

1.28%

 

 

1.77%

 

 

1.68%

_____________

(1)

Excludes loans recorded at fair value.

Loan Delinquency and Non-Accrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

30-59 days

 

60-89 days

 

90+ days

 

 

 

 

Total

 

 

 

 

Total

 

past due

 

past due

 

still accruing

 

Non-accrual

 

past due

 

Current

 

loans

Real estate bridge loans

$

—

 

$

—

 

$

—

 

$

22,454

 

$

22,454

 

$

2,257,000

 

$

2,279,454

SBLOC / IBLOC

 

5,847

 

 

6,011

 

 

—

 

 

446

 

 

12,304

 

 

1,696,405

 

 

1,708,709

SBL non-real estate

 

1,227

 

 

1,750

 

 

—

 

 

9,726

 

 

12,703

 

 

229,742

 

 

242,445

SBL commercial mortgage

 

1,680

 

 

—

 

 

—

 

 

26,358

 

 

28,038

 

 

708,432

 

 

736,470

SBL construction

 

—

 

 

—

 

 

—

 

 

2,660

 

 

2,660

 

 

17,285

 

 

19,945

Fintech

 

17,188

 

 

3,214

 

 

1,762

 

 

—

 

 

22,164

 

 

1,624,436

 

 

1,646,600

Direct lease financing

 

3,846

 

 

1,115

 

 

411

 

 

10,743

 

 

16,115

 

 

662,625

 

 

678,740

Advisor financing

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

270,811

 

 

270,811

Other loans

 

110

 

 

—

 

 

1

 

 

406

 

 

517

 

 

155,308

 

 

155,825

Unamortized loan fees and costs

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

14,684

 

 

14,684

 

$

29,898

 

$

12,090

 

$

2,174

 

$

72,793

 

$

116,955

 

$

7,636,728

 

$

7,753,683

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2026

 

 

 

The Bancorp Bank,

 

"Well

 

The Bancorp, Inc.

 

N.A.

 

Capitalized"(1)

 

 

 

 

 

 

Tier 1 capital to average assets

7.30%

 

9.18%

 

5.00%

Tier 1 capital to risk-weighted assets

11.21%

 

14.06%

 

8.00%

Total capital to risk-weighted assets

12.26%

 

15.10%

 

10.00%

Common equity Tier 1 to risk-weighted assets

11.21%

 

14.06%

 

6.50%

 

 

 

 

 

 

(1)

“Well capitalized” institution under federal regulations Basel III.

NON-GAAP FINANCIAL MEASURES

We use certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures are focused on adjusting certain metrics used to measure our performance to exclude the impact of Non-interest income-Fintech loan credit enhancement. That income amount relates to credit enhancement agreements from third parties that cover losses from borrowers for fintech loans receivable. We recognize provision expense for credit losses on fintech loans, and separately record an amount in Non-interest income—Fintech loan credit enhancement for the recovery from the third-party. The measurement of the estimated credit losses and the estimated recovery from the credit enhancement are based on the same estimate and correlate to like amounts in our statement of operations. Our non-GAAP metrics are calculated to remove the volatility of that credit enhancement recovery from measures used to review the performance and growth of our business.

Non-GAAP measures include:

Efficiency ratio is calculated as: (i) GAAP total non-interest expense; divided by (ii) the total of GAAP Net interest income and Non-interest income less Fintech loan credit enhancement income, or “Adjusted total revenue.” This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.

Total revenue, excluding credit enhancement is calculated as: the total of GAAP Net interest income and Non-interest income less Fintech loan credit enhancement income. This figure adjusts our total revenue for amounts received related to credit enhancement agreements, to remove the volatility of that credit enhancement recovery when measuring our revenue results.

Non-interest income, excluding credit enhancement is calculated as: GAAP Non-interest-income less Fintech loan credit enhancement income. This figure adjusts our non-interest income for amounts received related to credit enhancement agreements, to remove the volatility of that credit enhancement recovery when measuring our non-interest income results.

Non-interest income as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest-income less Fintech loan credit enhancement income; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of non-interest income, which is primarily fee-based, to our total revenue each period to review the growth in our fee-based business.

Fintech fees as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest income – Total fintech fees; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of fintech fee revenue to our total revenue each period to review the growth in that revenue area, which is one of our key areas of focus.

We believe that these non-GAAP measures are useful performance metrics for management, investors, and lenders, because it provides a means to evaluate period-to-period comparisons of the Company's financial performance without the effects of certain adjustments in accordance with GAAP that may not necessarily be indicative of current operating performance. Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.

Reconciliation of Non-GAAP Measures:

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31,

 

December 31,

 

March 31,

 

 

2026

 

2025

 

2025

Net interest income

 

$

88,814

 

$

92,079

 

$

91,743

Non-interest income

A

 

72,525

 

 

80,532

 

 

83,642

Total revenue

B

 

161,339

 

 

172,611

 

 

175,385

Less: Fintech loan credit enhancement

 

 

(28,843)

 

 

(40,403)

 

 

(45,868)

Adjusted total revenue

C

$

132,496

 

$

132,208

 

$

129,517

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

72,525

 

 

80,532

 

 

83,642

Less: Fintech loan credit enhancement

 

 

(28,843)

 

 

(40,403)

 

 

(45,868)

Adjusted non-interest income

D

$

43,682

 

$

40,129

 

$

37,774

 

 

 

 

 

 

 

 

 

 

Non-interest expense

E

$

55,026

 

$

56,193

 

$

53,294

Non-interest income - total fintech fees

F

$

38,069

 

$

35,973

 

$

34,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures

 

 

 

 

 

 

 

 

 

Efficiency ratio

E/C

 

41.5%

 

 

42.5%

 

 

41.1%

 

 

 

 

 

 

 

 

 

 

Total revenue, excluding credit enhancement

C

$

132,496

 

$

132,208

 

$

129,517

Non-interest income, excluding credit enhancement

D

$

43,682

 

$

40,129

 

$

37,774

 

 

 

 

 

 

 

 

 

 

Non-interest income as a percentage of total revenue

A/B

 

45.0%

 

 

46.7%

 

 

47.7%

Non-interest income as a percentage of total revenue (excluding credit enhancement)

D/C

 

33.0%

 

 

30.4%

 

 

29.2%

 

 

 

 

 

 

 

 

 

 

Fintech fees as a percentage of total revenue

F/B

 

23.6%

 

 

20.8%

 

 

19.6%

Fintech fees as a percentage of total revenue (excluding credit enhancement income)

F/C

 

28.7%

 

 

27.2%

 

 

26.6%

 

The Bancorp, Inc.
Andres Viroslav, Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com

Source: The Bancorp, Inc.

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