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.
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.”
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| * | See “Non-GAAP Financial Measures” section at the end of the document for detailed description. | |
| (Dollars in thousands except EPS and except where noted. Unaudited) | ||||||||
| 1Q 2026 | 4Q 2025 | 1Q 2025 | ||||||
| Key Performance Metrics: | ||||||||
| Return on assets(1) | 2.57% | 2.53% | 2.49% | |||||
| Return on equity(1) | 35.1% | 30.4% | 28.6% | |||||
| Efficiency ratio(2) | 41.5% | 42.5% | 41.1% | |||||
| Net interest margin | 3.87% | 4.30% | 4.07% | |||||
| Non-interest income as a percentage of total revenue | 45.0% | 46.7% | 47.7% | |||||
| Non-interest income as a percentage of total revenue (excluding credit enhancement income)(2) | 33.0% | 30.4% | 29.2% | |||||
| Fintech fees as a percentage of total revenue | 23.6% | 20.8% | 19.6% | |||||
| Fintech fees as a percentage of total revenue (excluding credit enhancement income)(2) | 28.7% | 27.2% | 26.6% | |||||
| Book value per share (as of period end) | $ | 16.65 | $ | 16.29 | $ | 17.66 | ||
| Results of Operations: | ||||||||
| Net income | $ | 60,069 | $ | 56,292 | $ | 57,173 | ||
| Net income per share – diluted | $ | 1.41 | $ | 1.28 | $ | 1.19 | ||
| Weighted average shares – diluted | 42,594,824 | 44,078,506 | 47,959,292 | |||||
| Net interest income | $ | 88,814 | $ | 92,079 | $ | 91,743 | ||
| Provision (reversal) for credit losses on non-fintech loans | $ | (1,348) | $ | 858 | $ | 874 | ||
| Non-interest income – total fintech fees | $ | 38,069 | $ | 35,973 | $ | 34,446 | ||
| Total non-interest expense | $ | 55,026 | $ | 56,193 | $ | 53,294 | ||
| Income tax expense | $ | 18,643 | $ | 18,703 | $ | 18,065 | ||
| Volume: | ||||||||
| Average loan portfolio (dollars in millions) | $ | 7,255 | $ | 6,847 | $ | 6,386 | ||
| Average assets (dollars in millions) | $ | 9,484 | $ | 8,838 | $ | 9,319 | ||
| Average deposits (dollars in millions) | $ | 8,317 | $ | 7,596 | $ | 8,311 | ||
| Prepaid and debit card gross dollar volume (GDV)(3) | $ | 52,512,908 | $ | 45,874,708 | $ | 44,650,422 | ||
| (1) | Annualized. | |
| (2) | See “Non-GAAP Financial Measures” section at the end of the document for detailed description. | |
| (3) | Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A. |
Earnings Release Conference Call
Management will conduct a conference call to review first quarter 2026 results at 8:00 AM ET Friday, April 24, 2026. Interested parties may access the conference call live by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or you may dial 1.800.715.9871, conference ID 9545117.
For those who cannot access the live conference call, a replay of the webcast will be accessible shortly after the event concludes through our Investor Relations website, or you may access the replay telephonically until Friday, May 1, 2026, by dialing 1.800.770.2030, playback code 9545117#.
Financial Results:
Loan Portfolio
The following table summarizes our total loan portfolio at March 31, 2026 compared to prior periods:
| (in thousands, unaudited) | March 31, | December 31, | March 31, | ||||||||
| 2026 | 2025 | 2025 | |||||||||
| Mix | Mix | Mix | |||||||||
| Loans, at amortized cost: | |||||||||||
| Real estate bridge lending | $ | 2,279,454 | 28.9% | $ | 2,188,952 | 30.2% | $ | 2,212,054 | 33.6% | ||
| SBLOC / IBLOC | 1,708,709 | 21.7% | 1,669,985 | 23.0% | 1,577,170 | 23.9% | |||||
| Small business loans | 998,860 | 12.7% | 1,006,898 | 13.9% | 915,230 | 13.9% | |||||
| Fintech | 1,646,600 | 20.9% | 1,097,998 | 15.1% | 574,048 | 8.7% | |||||
| Direct lease financing | 678,740 | 8.6% | 685,422 | 9.4% | 709,978 | 10.8% | |||||
| Advisor financing | 270,811 | 3.4% | 294,236 | 4.1% | 265,950 | 4.0% | |||||
| Other loans | 155,825 | 2.0% | 157,416 | 2.2% | 112,322 | 1.7% | |||||
| 7,738,999 | 98.2% | 7,100,907 | 97.9% | 6,366,752 | 96.6% | ||||||
| Unamortized loan fees and costs | 14,684 | 0.2% | 15,769 | 0.2% | 13,398 | 0.2% | |||||
| Loans, net of deferred fees and costs | $ | 7,753,683 | 98.4% | $ | 7,116,676 | 98.1% | $ | 6,380,150 | 96.8% | ||
| Loans, at fair value: | |||||||||||
| SBLs, at fair value | $ | 64,530 | 0.8% | $ | 68,374 | 0.9% | $ | 83,448 | 1.3% | ||
| Real estate bridge loans (non-SBA), at fair value | 63,730 | 0.8% | 71,015 | 1.0% | 128,132 | 1.9% | |||||
| Total commercial loans, at fair value | $ | 128,260 | 1.6% | $ | 139,389 | 1.9% | $ | 211,580 | 3.2% | ||
| Total loan portfolio | $ | 7,881,943 | 100.0% | $ | 7,256,065 | 100.0% | $ | 6,591,730 | 100.0% | ||
At March 31, 2026, Loans, net of deferred fees and costs were $7.75 billion, a 9% increase (not annualized) from $7.12 billion at December 31, 2025, and a 22% increase compared to $6.38 billion at March 31, 2025. The $1.37 billion increase from March 31, 2025 is primarily driven by growth in fintech loans of $1.07 billion, $131.5 million increase in securities-backed lines of credit (“SBLOC”) and insurance policy cash value-backed lines of credit (“IBLOC”), and $83.6 million increase in small business loans.
Fintech loans of $1.65 billion include $1.22 billion from secured credit card accounts and $427.3 million from short-term liquidity products, and account for 20.9% of the total loan portfolio, continuing the strategic shift of the balance sheet towards sponsored lending. Secured credit card accounts are backed by cash collateral by each individual cardholder, held on the balance sheet as non-interest earning deposits, with the loan balance required to be repaid in full monthly. Short-term liquidity products to individual borrowers range in maturity from 30 days to 365 days. All fintech loans are covered by credit enhancements, where our partners provide financial protection against consumer credit losses. We maintain cash collateral balances equivalent to the expected losses on dollars already lent, as well as having the right to offset other revenues generated through those relationships.
Deposits & Liquidity
Average deposits for the fourth quarter were $8.32 billion, a 9% increase (not annualized) from $7.60 billion in 4Q 2025, and less than 1% increase from $8.31 billion in 1Q 2025. The increase from 4Q 2025 is primarily driven by continued growth in deposits sourced from our fintech relationships.
The average interest rate on deposits for 1Q 2026 was 1.70%, a 7 basis point decrease compared to 4Q 2025 and a 53 basis point decrease compared to 1Q 2025, driven by the mix of deposits and the short-term interest rate environment.
Our fintech partnerships generate 93% of our total deposits, and are low balance, insured deposits, and accordingly, do not constitute the same liquidity risk experienced by traditional branch deposit franchises. As of March 31, 2026, 94% of the deposits are insured, 3% are low balance accounts such as anonymous gift cards and corporate incentive cards for which there is no identified depositor, and 3% are other uninsured deposits.
As of March 31 2026, we had $1.34 billion of off-balance sheet deposits, which consist of deposits swept to other financial institutions to manage our balance sheet composition and deposit portfolio diversity. Off-balance sheet deposits were $849.9 million as of December 31, 2025 and $793.1 million as of March 31, 2025.
We maintain secured borrowing lines of credit with the Federal Reserve Bank and Federal Home Loan Bank that are collateralized by pledged loans and investments. As of March 31, 2026, we had $470.0 million of short-term borrowings under these facilities, which averaged $145.9 million for 1Q 2026. Based on the current amount of loans and securities pledged, there is $2.98 billion of additional available capacity.
Net Interest Income and Net Interest Margin
Net interest income of $88.8 million for 1Q 2026, compared to $92.1 million for 4Q 2025 and $91.7 million for 1Q 2025. The decrease compared to 4Q 2025 was driven primarily by lower rate on non-fintech loans combined with the shift in our portfolio to more fintech loans, for which we primarily earn fee income. The decrease compared to 1Q 2025 was primarily driven by the upsizing and the higher rate of the senior note debt issuance that occurred in 3Q 2025.
Net interest margin was 3.87% for 1Q 2026, compared to 4.30% for 4Q 2025 and 4.07% for 1Q 2025. The decline from 4Q 2025 was primarily driven by mix and the lag timing of short-term interest rates on variable rate loans. The decline from prior year quarter was primarily driven by the shift of our portfolio mix to more fintech loans for which we primarily earn fee income, although we recognize interest income on certain fintech loan products.
Credit Quality
Total Provision, including provision for fintech loans that are supported by credit enhancements, was $27.6 million in 1Q 2026, a decrease compared to $41.4 million in 4Q 2025, and a decrease from $46.9 million in 1Q 2025. Provision for non-Fintech loans was a reversal of $1.3 million in 1Q 2026, compared to provision expense of $0.9 million in 4Q 2025 and $0.9 million in 1Q 2025. The provision reversal in 1Q 2026 was primarily driven by improvements in credit performance in our leasing portfolio. Provision for fintech loans was $28.8 million in 1Q 2026, compared to $40.4 million in 4Q 2025 and $45.9 million in 1Q 2025. The lower provision for fintech loans was primarily driven by improved performance in unsecured credit products.
The allowance for credit losses was $63.0 million at March 31, 2026, consisting of $29.8 million related to fintech loans, or 1.81% of fintech loans, and $33.2 million for non-fintech loans, or 0.54% of non-fintech loans. That compares to the allowance at December 31, 2025 of $66.2 million, consisting of $31.1 million for fintech, or 2.84% of fintech loans, and $35.1 million for non-fintech, or 0.58% of non-fintech loans. Allowance at March 31, 2025 was $52.5 million, consisting of $20.2 million related to fintech loans, or 3.52% of fintech loans, and $32.3 million allowance for non-fintech loans, or 0.56% of non-fintech loans.
Total net charge-offs for 1Q 2026, including fintech loans which are supported by credit enhancements, were $30.7 million, a decrease from $39.2 million for 4Q 2025 and a decrease from $39.1 million for 1Q 2025, resulting in ratios of total net charge-offs to average loans of 1.68%, 2.29% and 2.44% for the respective periods (annualized). The improvement in net charge-offs was driven by improved performance of fintech loans. Net charge-offs for non-fintech loans were $0.5 million for 1Q 2026, flat compared to $0.6 million for 4Q 2025 and $0.5 million for 1Q 2025, resulting in ratios of non-fintech net charge-offs to non-fintech average loans of 0.03%, 0.04% and 0.02% (annualized) for each of the respective periods.
Ending total criticized assets of $163.1 million at 1Q 2026, a 16% decrease from $194.5 million at the end of 4Q 2025 primarily driven by a $24.4 million decrease in criticized Real estate bridge loans, and a $6.3 million decrease in criticized small business loans.
Non-Interest Income
Non-interest income for 1Q 2026 was $72.5 million, which is comprised of $28.8 million of credit enhancement income and $43.7 million of other non-interest income. This compares to $80.5 million in 4Q 2025, comprised of $40.4 million of credit enhancement income and $40.1 million of other non-interest income. Non-interest income for 1Q 2025 was $83.6 million, comprised of $45.9 million of credit enhancement income and $37.8 million of other non-interest income.
Excluding credit enhancement, non-interest income for 1Q 2026 was $43.7 million, a $3.6 million increase compared to 4Q 2025, and a $5.9 million increase compared to 1Q 2025. The $3.6 million increase compared to 4Q 2025 was primarily driven by a $2.1 million increase in total fintech fees and a $1.3 million increase in other non-interest income primarily driven by $0.9 million earned on deposit sweeps. The $5.9 million increase compared to 1Q 2025 reflects a $3.6 million increase in total fintech fees, driven by organic volume growth with existing partners and products, and our focus on expanding our fintech business. In addition, other non-interest income increased $2.7 million from 1Q 2025, primarily driven by $1.1 million of higher other fee income from loans and $0.9 million earned on deposit sweeps.
Non-interest income mix to total revenue, excluding credit enhancement*, was 33.0% compared to 30.4% in 4Q 2025 and 29.2% in 1Q 2025. Fintech fees as a percentage of total revenue, excluding credit enhancement* is 28.7% compared to 27.2% in 4Q 2025 and 26.6% in 1Q 2025.
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| * See “Non-GAAP Financial Measures” section at the end of the document for detailed description. |
Non-Interest Expense
Total non-interest expense of $55.0 million decreased $1.2 million from 4Q 2025 and increased $1.7 million from 1Q 2025. The decrease from 4Q 2025 is primarily driven by a $4.0 million favorable variance in legal settlements where we recognized a $2.0 million expense in 4Q 2025 and a $2.0 million recovery in 1Q 2026. That amount was partially offset by higher salary and benefits costs of $3.1 million, driven primarily by $2.6 million related to timing of incentive accruals.
The increase of $1.7 million from 1Q 2025 is primarily driven by $3.8 million higher salary and employee benefits including $1.1 million of costs incurred in 1Q 2026 associated with organization changes and $1.8 million of higher costs related to incentive accruals, partially offset by $2.0 million reimbursement from insurance related to a legal settlement that was previously expensed in 4Q 2025.
Efficiency ratio* was 41.5% for 1Q 2026, compared to 42.5% for 4Q 2025 and 41.1% for 1Q 2025.
Income Taxes
Income tax expense was $18.6 million for 1Q 2026, $18.7 million for 4Q 2025, and $18.1 million for 1Q 2025. Our effective income tax rate was 23.7% for 1Q 2026, 24.9% for 4Q 2025, and 24.0% for 1Q 2025. The decline in rate for the first quarters is primarily driven by vesting activity of stock awards in those periods.
Capital
As of March 31, 2026, capital levels for The Bancorp Bank, N.A. (the “Bank”) continue to be strong and in excess of the “well capitalized” regulatory benchmarks, with Tier 1 Capital to average assets (Leverage), Tier 1 Capital to Risk-Weighted Assets, Total Capital to Risk-Weighted Assets and Common Equity Tier 1 to Risk-Weighted Assets ratios for the Bank of 9.18%, 14.06%, 15.10%, and 14.06%, respectively, and for the Company of 7.30%, 11.21%, 12.26%, and 11.21%, respectively.
Book value per common share at March 31, 2026 was $16.65, compared to $16.29 at December 31, 2025 (a 9% increase, annualized). Total shareholders’ equity increased by $7.2 million, driven primarily by $60.1 million of net income partially offset by $50.3 million of share repurchases. Compared to March 31, 2025, total shareholders’ equity decreased by $132.7 million, primarily driven by $391.0 million of share repurchases partially offset by $231.1 million of net income and $19.8 million of stock-based compensation. Outstanding shares decreased 5.121 million since March 31, 2025, driven primarily by share repurchases.
Outstanding shares decreased by 496,816 since December 31, 2025 to 41.859 million, driven primarily by share repurchases. During 1Q 2026, we repurchased 843,061 shares of our common stock, or 2% of issued and outstanding shares, at an average cost of $59.31 per share for a total capital return of $50.0 million.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), through its subsidiary, The Bancorp Bank, N.A., is defining the future of banking. As one of the first banks to embrace fintech, The Bancorp has been a driving force behind the industry’s evolution, serving as an essential financial enabler of Fintech innovation for more than 25 years. Led by its Fintech Solutions business, the company delivers a dynamic portfolio of payment and lending solutions that empowers its clients to turn bold ideas into real-world success.
Ranked by the Nilson Report as the No. 1 issuer of prepaid cards in the U.S. and among the top 10 debit card issuers nationally, The Bancorp also holds leading positions in its Institutional Banking, Small Business Lending, Fleet Management Services, and Real Estate Bridge Lending businesses. Across every line of business, The Bancorp fosters prosperity through the perpetual transformation of banking and aims to drive growth for its clients, investors, employees, and the communities it serves. For more information, visit https://thebancorp.com/.
