{"success":true,"data":{"pressRelease":{"id":"7473","rtpr_id":"nBw1dCbZ9a","ticker":"TBBK","exchange":"NASDAQ","all_tickers":["TBBK"],"title":"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","author":"Business Wire","published_at":"2026-04-23T20:05:01.068Z","article_body":"The Bancorp Reports 1Q 2026 EPS of $1.41, ROA of 2.57%, and ROE of 35.1%\nDriven by Strong Growth in Loans, Deposits and Payments Volume, and Supported\nby Continued Improvement in Credit Performance\n\nFirst Quarter 2026 Highlights\n\n\n * Earnings per diluted share (“EPS”) of $1.41 compared to $1.19 for 1Q 2025,\nan increase of 18%.\n\n * Return on assets of 2.57% compared to 2.49% for 1Q 2025.\n\n * Return on equity of 35.1% compared to 28.6% for 1Q 2025.\n\n * Net income of $60.1 million compared to net income of $57.2 million for 1Q\n2025.\n\n * Net interest income of $88.8 million compared to $91.7 million for 1Q 2025.\n\n * Net interest margin of 3.87% compared to 4.07% for 1Q 2025.\n\n * Ending Loans, net of deferred fees and costs of $7.75 billion, compared to\n$6.38 billion at 1Q 2025, a 22% increase, and $7.12 billion at 4Q 2025, a 9%\nincrease (not annualized).\n\n * Ending Fintech loans of $1.65 billion, or 20.9% of total loans, compared to\n$574.0 million at 1Q 2025, a 187% increase, and $1.10 billion at 4Q 2025, a\n50% increase (not annualized).\n\n * Average deposits of $8.32 billion increased $5.3 million, or less than 1% from\n$8.31 billion in 1Q 2025 and increased $721.1 million, or 9%, from $7.60\nbillion in 4Q 2025. The average interest rate was 1.70% compared to 2.23% for\n1Q 2025 and 1.77% in 4Q 2025.\n\n * Gross dollar volume (“GDV”), representing the total amount spent on\nprepaid, debit and credit cards totaled $52.51 billion, an increase of $7.86\nbillion, or 18%, compared to 1Q 2025.\n\n * Fees on consumer credit from fintech loans increased 55% to $5.6 million for\n1Q 2026 compared to $3.6 million for 1Q 2025 and increased 24% from $4.5\nmillion in 4Q 2025.\n\n * Total prepaid, debit card, ACH, and other payment fees of $32.5 million, a 5%\nincrease, compared to $30.8 million in 1Q 2025.\n\n * Non-interest income totaled $72.5 million, or 45.0% of total revenue and $43.7\nmillion*, or 33.0% when excluding credit enhancement income.* This compares to\n47.7% of total revenue in 1Q 2025, or 29.2% when excluding credit enhancement\nincome.*\n\n * Ending Real estate bridge loans (“REBL”) characterized as criticized\nassets decreased to $59.1 million from $83.5 million at 4Q 2025, a 29%\ndecrease and decreased 70% compared to $200.0 million at 1Q 2025.\n\n * Share repurchases of $50.0 million, for 843,061 shares, or 2.0% of issued and\noutstanding shares, at an average cost of $59.31.\n\nThe Bancorp, Inc. (NASDAQ: TBBK), a financial holding company, today reported\nits financial results for the first quarter of 2026, reporting net income of\n$60.1 million and $1.41 per diluted share for the quarter, which is an 18%\ngrowth from the first quarter of 2025.\n\n“We started 2026 with robust above industry trend GDV growth and substantial\nprogress in our Fintech initiatives, as well as strong year-over-year EPS\ngrowth,” said Damian Kozlowski, CEO and President of The Bancorp. “We are\nmaintaining guidance at $5.90 EPS for 2026, and $1.75 per share in the fourth\nquarter 2026. Our expectation for 2027 EPS is now in the range of $8.10 to\n$8.30. The range for 2027 is generally consistent with the previous target\nwhile recognizing that the timing of new product and program launches can be\nsubject to partner timelines. Our outlook for 2026 and 2027 includes\nsignificant share repurchases, including $200 million total or $50 million a\nquarter in 2026 followed by near-100% of net income returned through share\nrepurchases thereafter. We believe our three major Fintech initiatives, along\nwith platform efficiency gains from restructuring and AI tools, plus a\nhigh-level of capital return through continued buybacks, will be the driving\nforces behind EPS accretion.”\n _______ \n * See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n\n                   \n (Dollars in thousands except EPS and except where noted. Unaudited)                 \n 1Q 2026   4Q 2025   1Q 2025 \n Key Performance Metrics:                 \n Return on assets((1))   2.57%     2.53%     2.49% \n Return on equity((1))   35.1%     30.4%     28.6% \n Efficiency ratio((2))   41.5%     42.5%     41.1% \n Net interest margin   3.87%     4.30%     4.07% \n Non-interest income as a percentage of total revenue   45.0%     46.7%     47.7% \n Non-interest income as a percentage of total revenue (excluding credit   33.0%     30.4%     29.2% \n enhancement income)((2)) \n Fintech fees as a percentage of total revenue   23.6%     20.8%     19.6% \n Fintech fees as a percentage of total revenue (excluding credit enhancement   28.7%     27.2%     26.6% \n income)((2)) \n Book value per share (as of period end) $ 16.65   $ 16.29   $ 17.66 \n                   \n Results of Operations:                 \n Net income $ 60,069   $ 56,292   $ 57,173 \n Net income per share - diluted $ 1.41   $ 1.28   $ 1.19 \n Weighted average shares - diluted   42,594,824     44,078,506     47,959,292 \n                   \n Net interest income $ 88,814   $ 92,079   $ 91,743 \n Provision (reversal) for credit losses on non-fintech loans $ (1,348)   $ 858   $ 874 \n Non-interest income - total fintech fees $ 38,069   $ 35,973   $ 34,446 \n Total non-interest expense $ 55,026   $ 56,193   $ 53,294 \n Income tax expense $ 18,643   $ 18,703   $ 18,065 \n                   \n Volume:                 \n Average loan portfolio (dollars in millions) $ 7,255   $ 6,847   $ 6,386 \n Average assets (dollars in millions) $ 9,484   $ 8,838   $ 9,319 \n Average deposits (dollars in millions) $ 8,317   $ 7,596   $ 8,311 \n Prepaid and debit card gross dollar volume (GDV)((3)) $ 52,512,908   $ 45,874,708   $ 44,650,422 \n\n ((1)) Annualized. \n ((2)) See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n ((3)) Gross dollar volume represents the total dollar amount spent on prepaid, debit \n and credit cards issued by The Bancorp Bank, N.A. \n\n\nEarnings Release Conference Call\n\nManagement will conduct a conference call to review first quarter 2026 results\nat 8:00 AM ET Friday, April 24, 2026. Interested parties may access the\nconference call live by clicking on the webcast link on The Bancorp’s\nhomepage at www.thebancorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.thebancorp.com&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=www.thebancorp.com&index=1&md5=0493f6e4402dc3c15f58526516729d1a)\nor you may dial 1.800.715.9871, conference ID 9545117.\n\nFor those who cannot access the live conference call, a replay of the webcast\nwill be accessible shortly after the event concludes through our Investor\nRelations website, or you may access the replay telephonically until Friday,\nMay 1, 2026, by dialing 1.800.770.2030, playback code 9545117#.\n\nFinancial Results:\n\nLoan Portfolio\n\nThe following table summarizes our total loan portfolio at March 31, 2026\ncompared to prior periods:\n                         \n   \n (in thousands, unaudited) March 31,   December 31,   March 31, \n   2026   2025   2025 \n       Mix       Mix       Mix \n Loans, at amortized cost:                       \n Real estate bridge lending $ 2,279,454 28.9%   $ 2,188,952 30.2%   $ 2,212,054 33.6% \n SBLOC / IBLOC   1,708,709 21.7%     1,669,985 23.0%     1,577,170 23.9% \n Small business loans   998,860 12.7% 1,006,898 13.9% 915,230 13.9% \n Fintech   1,646,600 20.9%     1,097,998 15.1%     574,048 8.7% \n Direct lease financing   678,740 8.6%     685,422 9.4%     709,978 10.8% \n Advisor financing   270,811 3.4%     294,236 4.1%     265,950 4.0% \n Other loans   155,825 2.0%     157,416 2.2%     112,322 1.7% \n     7,738,999 98.2%     7,100,907 97.9%     6,366,752 96.6% \n Unamortized loan fees and costs   14,684 0.2% 15,769 0.2% 13,398 0.2% \n Loans, net of deferred fees and costs $ 7,753,683 98.4% $ 7,116,676 98.1% $ 6,380,150 96.8% \n       \n Loans, at fair value:     \n SBLs, at fair value $ 64,530 0.8% $ 68,374 0.9% $ 83,448 1.3% \n Real estate bridge loans (non-SBA), at fair value   63,730 0.8% 71,015 1.0% 128,132 1.9% \n Total commercial loans, at fair value $ 128,260 1.6% $ 139,389 1.9% $ 211,580 3.2% \n                     \n Total loan portfolio $ 7,881,943 100.0%   $ 7,256,065 100.0%   $ 6,591,730 100.0% \n\n\nAt March 31, 2026, Loans, net of deferred fees and costs were $7.75 billion, a\n9% increase (not annualized) from $7.12 billion at December 31, 2025, and a\n22% increase compared to $6.38 billion at March 31, 2025. The $1.37 billion\nincrease from March 31, 2025 is primarily driven by growth in fintech loans of\n$1.07 billion, $131.5 million increase in securities-backed lines of credit\n(“SBLOC”) and insurance policy cash value-backed lines of credit\n(“IBLOC”), and $83.6 million increase in small business loans.\n\nFintech loans of $1.65 billion include $1.22 billion from secured credit card\naccounts and $427.3 million from short-term liquidity products, and account\nfor 20.9% of the total loan portfolio, continuing the strategic shift of the\nbalance sheet towards sponsored lending. Secured credit card accounts are\nbacked by cash collateral by each individual cardholder, held on the balance\nsheet as non-interest earning deposits, with the loan balance required to be\nrepaid in full monthly. Short-term liquidity products to individual borrowers\nrange in maturity from 30 days to 365 days. All fintech loans are covered by\ncredit enhancements, where our partners provide financial protection against\nconsumer credit losses. We maintain cash collateral balances equivalent to the\nexpected losses on dollars already lent, as well as having the right to offset\nother revenues generated through those relationships.\n\nDeposits & Liquidity\n\nAverage deposits for the fourth quarter were $8.32 billion, a 9% increase (not\nannualized) from $7.60 billion in 4Q 2025, and less than 1% increase from\n$8.31 billion in 1Q 2025. The increase from 4Q 2025 is primarily driven by\ncontinued growth in deposits sourced from our fintech relationships.\n\nThe average interest rate on deposits for 1Q 2026 was 1.70%, a 7 basis point\ndecrease compared to 4Q 2025 and a 53 basis point decrease compared to 1Q\n2025, driven by the mix of deposits and the short-term interest rate\nenvironment.\n\nOur fintech partnerships generate 93% of our total deposits, and are low\nbalance, insured deposits, and accordingly, do not constitute the same\nliquidity risk experienced by traditional branch deposit franchises. As of\nMarch 31, 2026, 94% of the deposits are insured, 3% are low balance accounts\nsuch as anonymous gift cards and corporate incentive cards for which there is\nno identified depositor, and 3% are other uninsured deposits.\n\nAs of March 31 2026, we had $1.34 billion of off-balance sheet deposits, which\nconsist of deposits swept to other financial institutions to manage our\nbalance sheet composition and deposit portfolio diversity. Off-balance sheet\ndeposits were $849.9 million as of December 31, 2025 and $793.1 million as of\nMarch 31, 2025.\n\nWe maintain secured borrowing lines of credit with the Federal Reserve Bank\nand Federal Home Loan Bank that are collateralized by pledged loans and\ninvestments. As of March 31, 2026, we had $470.0 million of short-term\nborrowings under these facilities, which averaged $145.9 million for 1Q 2026.\nBased on the current amount of loans and securities pledged, there is $2.98\nbillion of additional available capacity.\n\nNet Interest Income and Net Interest Margin\n\nNet interest income of $88.8 million for 1Q 2026, compared to $92.1 million\nfor 4Q 2025 and $91.7 million for 1Q 2025. The decrease compared to 4Q 2025\nwas driven primarily by lower rate on non-fintech loans combined with the\nshift in our portfolio to more fintech loans, for which we primarily earn fee\nincome. The decrease compared to 1Q 2025 was primarily driven by the upsizing\nand the higher rate of the senior note debt issuance that occurred in 3Q 2025.\n\nNet interest margin was 3.87% for 1Q 2026, compared to 4.30% for 4Q 2025 and\n4.07% for 1Q 2025. The decline from 4Q 2025 was primarily driven by mix and\nthe lag timing of short-term interest rates on variable rate loans. The\ndecline from prior year quarter was primarily driven by the shift of our\nportfolio mix to more fintech loans for which we primarily earn fee income,\nalthough we recognize interest income on certain fintech loan products.\n\nCredit Quality\n\nTotal Provision, including provision for fintech loans that are supported by\ncredit enhancements, was $27.6 million in 1Q 2026, a decrease compared to\n$41.4 million in 4Q 2025, and a decrease from $46.9 million in 1Q 2025.\nProvision for non-Fintech loans was a reversal of $1.3 million in 1Q 2026,\ncompared to provision expense of $0.9 million in 4Q 2025 and $0.9 million in\n1Q 2025. The provision reversal in 1Q 2026 was primarily driven by\nimprovements in credit performance in our leasing portfolio. Provision for\nfintech loans was $28.8 million in 1Q 2026, compared to $40.4 million in 4Q\n2025 and $45.9 million in 1Q 2025. The lower provision for fintech loans was\nprimarily driven by improved performance in unsecured credit products.\n\nThe allowance for credit losses was $63.0 million at March 31, 2026,\nconsisting of $29.8 million related to fintech loans, or 1.81% of fintech\nloans, and $33.2 million for non-fintech loans, or 0.54% of non-fintech loans.\nThat compares to the allowance at December 31, 2025 of $66.2 million,\nconsisting of $31.1 million for fintech, or 2.84% of fintech loans, and $35.1\nmillion for non-fintech, or 0.58% of non-fintech loans. Allowance at March 31,\n2025 was $52.5 million, consisting of $20.2 million related to fintech loans,\nor 3.52% of fintech loans, and $32.3 million allowance for non-fintech loans,\nor 0.56% of non-fintech loans.\n\nTotal net charge-offs for 1Q 2026, including fintech loans which are supported\nby credit enhancements, were $30.7 million, a decrease from $39.2 million for\n4Q 2025 and a decrease from $39.1 million for 1Q 2025, resulting in ratios of\ntotal net charge-offs to average loans of 1.68%, 2.29% and 2.44% for the\nrespective periods (annualized). The improvement in net charge-offs was driven\nby improved performance of fintech loans. Net charge-offs for non-fintech\nloans were $0.5 million for 1Q 2026, flat compared to $0.6 million for 4Q 2025\nand $0.5 million for 1Q 2025, resulting in ratios of non-fintech net\ncharge-offs to non-fintech average loans of 0.03%, 0.04% and 0.02%\n(annualized) for each of the respective periods.\n\nEnding total criticized assets of $163.1 million at 1Q 2026, a 16% decrease\nfrom $194.5 million at the end of 4Q 2025 primarily driven by a $24.4 million\ndecrease in criticized Real estate bridge loans, and a $6.3 million decrease\nin criticized small business loans.\n\nNon-Interest Income\n\nNon-interest income for 1Q 2026 was $72.5 million, which is comprised of $28.8\nmillion of credit enhancement income and $43.7 million of other non-interest\nincome. This compares to $80.5 million in 4Q 2025, comprised of $40.4 million\nof credit enhancement income and $40.1 million of other non-interest income.\nNon-interest income for 1Q 2025 was $83.6 million, comprised of $45.9 million\nof credit enhancement income and $37.8 million of other non-interest income.\n\nExcluding credit enhancement, non-interest income for 1Q 2026 was $43.7\nmillion, a $3.6 million increase compared to 4Q 2025, and a $5.9 million\nincrease compared to 1Q 2025. The $3.6 million increase compared to 4Q 2025\nwas primarily driven by a $2.1 million increase in total fintech fees and a\n$1.3 million increase in other non-interest income primarily driven by $0.9\nmillion earned on deposit sweeps. The $5.9 million increase compared to 1Q\n2025 reflects a $3.6 million increase in total fintech fees, driven by organic\nvolume growth with existing partners and products, and our focus on expanding\nour fintech business. In addition, other non-interest income increased $2.7\nmillion from 1Q 2025, primarily driven by $1.1 million of higher other fee\nincome from loans and $0.9 million earned on deposit sweeps.\n\nNon-interest income mix to total revenue, excluding credit enhancement*, was\n33.0% compared to 30.4% in 4Q 2025 and 29.2% in 1Q 2025. Fintech fees as a\npercentage of total revenue, excluding credit enhancement* is 28.7% compared\nto 27.2% in 4Q 2025 and 26.6% in 1Q 2025.\n _______  \n * See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n\n\nNon-Interest Expense\n\nTotal non-interest expense of $55.0 million decreased $1.2 million from 4Q\n2025 and increased $1.7 million from 1Q 2025. The decrease from 4Q 2025 is\nprimarily driven by a $4.0 million favorable variance in legal settlements\nwhere we recognized a $2.0 million expense in 4Q 2025 and a $2.0 million\nrecovery in 1Q 2026. That amount was partially offset by higher salary and\nbenefits costs of $3.1 million, driven primarily by $2.6 million related to\ntiming of incentive accruals.\n\nThe increase of $1.7 million from 1Q 2025 is primarily driven by $3.8 million\nhigher salary and employee benefits including $1.1 million of costs incurred\nin 1Q 2026 associated with organization changes and $1.8 million of higher\ncosts related to incentive accruals, partially offset by $2.0 million\nreimbursement from insurance related to a legal settlement that was previously\nexpensed in 4Q 2025.\n\nEfficiency ratio* was 41.5% for 1Q 2026, compared to 42.5% for 4Q 2025 and\n41.1% for 1Q 2025.\n\nIncome Taxes\n\nIncome tax expense was $18.6 million for 1Q 2026, $18.7 million for 4Q 2025,\nand $18.1 million for 1Q 2025. Our effective income tax rate was 23.7% for 1Q\n2026, 24.9% for 4Q 2025, and 24.0% for 1Q 2025. The decline in rate for the\nfirst quarters is primarily driven by vesting activity of stock awards in\nthose periods.\n\nCapital\n\nAs of March 31, 2026, capital levels for The Bancorp Bank, N.A. (the\n“Bank”) continue to be strong and in excess of the “well capitalized”\nregulatory benchmarks, with Tier 1 Capital to average assets (Leverage), Tier\n1 Capital to Risk-Weighted Assets, Total Capital to Risk-Weighted Assets and\nCommon Equity Tier 1 to Risk-Weighted Assets ratios for the Bank of 9.18%,\n14.06%, 15.10%, and 14.06%, respectively, and for the Company of 7.30%,\n11.21%, 12.26%, and 11.21%, respectively.\n\nBook value per common share at March 31, 2026 was $16.65, compared to $16.29\nat December 31, 2025 (a 9% increase, annualized). Total shareholders’ equity\nincreased by $7.2 million, driven primarily by $60.1 million of net income\npartially offset by $50.3 million of share repurchases. Compared to March 31,\n2025, total shareholders’ equity decreased by $132.7 million, primarily\ndriven by $391.0 million of share repurchases partially offset by $231.1\nmillion of net income and $19.8 million of stock-based compensation.\nOutstanding shares decreased 5.121 million since March 31, 2025, driven\nprimarily by share repurchases.\n\nOutstanding shares decreased by 496,816 since December 31, 2025 to 41.859\nmillion, driven primarily by share repurchases. During 1Q 2026, we repurchased\n843,061 shares of our common stock, or 2% of issued and outstanding shares, at\nan average cost of $59.31 per share for a total capital return of $50.0\nmillion.\n\nAbout The Bancorp\n\nThe Bancorp, Inc\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.thebancorp.com&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=The+Bancorp%2C+Inc&index=2&md5=4619f2f94b56f112fc59a6ed097151da)\n. (NASDAQ: TBBK), through its subsidiary, The Bancorp Bank, N.A., is defining\nthe future of banking. As one of the first banks to embrace fintech, The\nBancorp has been a driving force behind the industry’s evolution, serving as\nan essential financial enabler of Fintech innovation for more than 25 years.\nLed by its Fintech Solutions business, the company delivers a dynamic\nportfolio of payment and lending solutions that empowers its clients to turn\nbold ideas into real-world success.\n\nRanked by the Nilson Report as the No. 1 issuer of prepaid cards in the U.S.\nand among the top 10 debit card issuers nationally, The Bancorp also holds\nleading positions in its Institutional Banking\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2Finstitutional-banking%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Institutional+Banking&index=3&md5=c195db9189441f081f30f6b92bda24cb)\n, Small Business Lending\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2Fcommercial-lending%2Fsmall-business-lending%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Small+Business+Lending&index=4&md5=ee0b37642124bd09ab1a49ee54a9368d)\n, Fleet Management Services\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2Fcommercial-lending%2Ffleet-management-services%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Fleet+Management+Services&index=5&md5=34be486e8ecd32f37aa3df27b9bd41f7)\n, and Real Estate Bridge Lending\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2FReal-estate-bridge-lending%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Real+Estate+Bridge+Lending&index=6&md5=6d7d13a0733814343168f40b29e68664)\nbusinesses. Across every line of business, The Bancorp fosters prosperity\nthrough the perpetual transformation of banking and aims to drive growth for\nits clients, investors, employees, and the communities it serves. For more\ninformation, visit https://thebancorp.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=https%3A%2F%2Fthebancorp.com%2F&index=7&md5=03d45800347023e4191327d99e25081d)\n.\n _______ \n * See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n\n\nForward-Looking Statements\n\nStatements in this earnings release regarding The Bancorp’s business that\nare not historical facts, are “forward-looking statements.” These\nstatements may be identified by the use of forward-looking terminology,\nincluding, but not limited to the words “estimate,” “project,”\n“plan,” “believe,” “expect,” “anticipate,” “intend,”\n“may,” “will,” “could,” “continue” or the negative thereof and\nsimilar terms or expressions. Forward-looking statements include, but are not\nlimited to, statements regarding our anticipated 2026 and 2027 results,\nincluding earnings per share accretion, future growth, profitability,\nproductivity and efficiency, the expansion, expected timelines, and\nimplementation of our Fintech initiatives and revenue streams, the possible\nbenefits of our platform restructuring and adoption of AI tools, and share\nrepurchases. Such forward-looking statements relate to our current\nassumptions, projections, and expectations about our business and future\nevents, including current expectations about important economic and political\nfactors, among other factors, and are subject to risks and uncertainties,\nwhich could cause the actual results, events, or achievements to differ\nmaterially from those set forth in or implied by the forward-looking\nstatements and related assumptions. Factors that could cause results to differ\nfrom those expressed in the forward-looking statements also include, but are\nnot limited to the risks and uncertainties referenced or described in The\nBancorp’s filings with the Securities and Exchange Commission, including the\n“Risk Factors” and “Management’s Discussion and Analysis of Financial\nCondition and Results of Operations” sections of the Company’s Annual\nReport on Form 10-K for the fiscal year ended December 31, 2025 and other\ndocuments that the Company files from time to time with the Securities and\nExchange Commission. The forward-looking statements speak only as of the date\nof this press release. The Bancorp does not undertake any duty to publicly\nrevise or update forward-looking statements in this press release to reflect\nevents or circumstances that arise after the date of this press release,\nexcept as may be required under applicable law.\n   \n THE BANCORP, INC. \n SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) \n   \n   \n CONDENSED CONSOLIDATED INCOME STATEMENTS \n (Dollars in thousands, except share and per share data) \n   \n             \n     Three months ended \n     March 31, \n   2026   2025 \n             \n             \n Net interest income $ 88,814   $ 91,743 \n             \n Provision (reversal) for credit losses on non-fintech loans   (1,348)     874 \n Provision for credit losses on fintech loans   28,843     45,868 \n Provision for unfunded commitments   106     111 \n Provision for credit losses, total   27,601     46,853 \n             \n Non-interest income:           \n Fintech fees           \n ACH, card and other payment fees   5,796     5,132 \n Prepaid, debit card and related fees   26,677     25,714 \n Consumer credit fintech fees   5,596     3,600 \n Total fintech fees   38,069     34,446 \n Net realized and unrealized gains on commercial loans, at fair value   6     361 \n Leasing related income   1,901     1,972 \n Fintech loan credit enhancement   28,843     45,868 \n Other non-interest income   3,706     995 \n Total non-interest income   72,525     83,642 \n             \n Non-interest expense:           \n Salaries and employee benefits   37,477     33,669 \n Data processing expense   1,309     1,205 \n Legal expense   1,590     1,957 \n Legal settlement (reimbursement)   (2,000)     — \n FDIC insurance   1,251     1,053 \n Software   5,369     5,013 \n Other non-interest expense   10,030     10,397 \n Total non-interest expense   55,026     53,294 \n Income before income taxes   78,712     75,238 \n Income tax expense   18,643     18,065 \n Net income $ 60,069   $ 57,173 \n             \n Earnings per share - basic $ 1.43   $ 1.21 \n Earnings per share - diluted $ 1.41   $ 1.19 \n             \n Weighted average shares - basic   42,133,301     47,214,050 \n Weighted average shares - diluted   42,594,824     47,959,292 \n\n   \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (Dollars in thousands, except share and per share data) \n   \n                         \n   March 31,   December 31,   September 30,   March 31, \n   2026   2025   2025   2025 \n                         \n Assets:                       \n Cash and cash equivalents                       \n Cash and due from banks $ 8,673   $ 8,038   $ 10,162   $ 9,684 \n Interest earning deposits   58,510     104,611     74,517     1,011,585 \n Total cash and cash equivalents   67,183     112,649     84,679     1,021,269 \n                         \n Investment securities, available-for-sale, at fair value   1,646,541     1,671,750     1,384,256     1,488,184 \n Commercial loans, at fair value   128,260     139,389     142,658     211,580 \n Loans, net of deferred fees and costs   7,753,683     7,116,676     6,672,637     6,380,150 \n Allowance for credit losses   (63,017)     (66,200)     (64,152)     (52,497) \n Loans, net   7,690,666     7,050,476     6,608,485     6,327,653 \n Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve   37,785     25,205     25,250     16,250 \n Bank stock \n Accrued interest receivable   41,315     43,090     43,831     42,464 \n Other real estate owned   60,998     60,695     61,974     67,129 \n Deferred tax asset, net   21,139     18,679     10,034     13,585 \n Credit enhancement asset   29,769     31,138     29,318     20,199 \n Other   175,108     199,354     208,939     177,414 \n Total assets $ 9,898,764   $ 9,352,425   $ 8,599,424   $ 9,385,727 \n                         \n Liabilities:                       \n Deposits                       \n Demand and interest checking $ 8,281,037   $ 7,827,037   $ 7,254,896   $ 8,283,262 \n Savings and money market   148,988     338,459     75,901     81,320 \n Total deposits   8,430,025 8,165,496 7,330,797 8,364,582 \n                         \n Short-term borrowings   470,000     199,000     200,000     — \n Senior debt   196,320     196,253     196,052     96,303 \n Subordinated debenture   13,401     13,401     13,401     13,401 \n Other long-term borrowings   13,626     13,712     13,806     13,988 \n Other liabilities   78,442 74,767 67,206 67,766 \n Total liabilities $ 9,201,814 $ 8,662,629 $ 7,821,262 $ 8,556,040 \n                         \n Total shareholders' equity   696,950     689,796     778,162     829,687 \n                 \n Total liabilities and shareholders' equity $ 9,898,764 $ 9,352,425 $ 8,599,424 $ 9,385,727 \n\n   \n AVERAGE BALANCE SHEET - QTD \n (Dollars in thousands) \n                                   \n                                   \n     Three months ended March 31, 2026     Three months ended March 31, 2025 \n                                   \n     Average           Average     Average         Average \n Assets:   Balance     Interest     Rate     Balance     Interest   Rate \n                                   \n Interest earning assets:                                 \n Non-fintech loans $ 6,132,928   $ 105,598     6.89%   $ 5,913,806   $ 108,562   7.34% \n Fintech loans   1,115,138     1,826     0.66%     466,809     240   0.21% \n Loans, net of deferred fees and costs((1)) $ 7,248,066   $ 107,424     5.93%   $ 6,380,615   $ 108,802   6.82% \n Leases-bank qualified((2))   6,922     152     8.78%     5,853     139   9.50% \n Investment securities-taxable   1,662,417     19,920     4.79%     1,489,329     18,127   4.87% \n Investment securities-nontaxable((2))   10,426     165     6.33%     6,256     105   6.71% \n Interest earning deposits   250,018     2,196     3.51%     1,136,402     12,680   4.46% \n Net interest earning assets   9,177,849     129,857     5.66%     9,018,455     139,853   6.20% \n                                   \n Allowance for credit losses   (55,633)                 (44,915)           \n Other assets   361,873                 345,791           \n   $ 9,484,089               $ 9,319,331           \n                                   \n Liabilities and Shareholders' Equity:                                 \n Deposits:                                 \n Demand and interest checking $ 8,088,696   $ 33,210     1.64%   $ 8,174,676   $ 45,045   2.20% \n Savings and money market   227,961     2,079     3.65%     136,688     1,330   3.89% \n Total deposits   8,316,657     35,289     1.70%     8,311,364     46,375   2.23% \n                                   \n Short-term borrowings   145,884     1,381     3.79%     —     —   — \n Long-term borrowings   13,687     197     5.76%     14,050     195   5.55% \n Subordinated debentures   13,401     235 7.01%     13,401     255 7.61% \n Senior debt   196,203     3,875 7.90%     96,244     1,234 5.13% \n Total deposits and liabilities   8,685,832     40,977     1.89%     8,435,059     48,059   2.28% \n                                   \n Other liabilities   104,884                 74,537           \n Total liabilities   8,790,716                 8,509,596           \n                                   \n Shareholders' equity   693,373                 809,735           \n   $ 9,484,089               $ 9,319,331           \n Net interest income on tax equivalent basis((2))       $ 88,880           $ 91,794   \n                         \n Tax equivalent adjustment       66             51   \n                           \n Net interest income     $ 88,814       $ 91,743 \n Net interest margin((2))               3.87%               4.07% \n\n ((1)) Includes commercial loans, at fair value. All periods include non-accrual \n loans. \n ((2)) Full taxable equivalent basis, using 21% respective statutory federal tax \n rates in 2026 and 2025. \n\n                     \n BUSINESS LINE QUARTERLY SUMMARY \n (Dollars in thousands) \n                     \n                     \n     Three months ended March 31, 2026 \n               % Growth in balance \n Loans:     Total((1))   Average rates((2))   Linked quarter   Year over Year \n \nannualized \n Real estate bridge loans - recorded at amortized cost $ 2,279,454   7.63%   16.54%   3.05% \n Real estate bridge loans (non-SBA) - recorded at fair value   63,730   6.79%   nm   nm \n SBLOC/IBLOC and Advisor financing   1,979,520   5.66%   3.12%   7.40% \n Small business lending   1,063,390   6.98%   (4.42%)   6.48% \n Fintech loans - non-interest bearing((3))   1,473,238   —   nm   nm \n Fintech loans - interest bearing   173,362   4.88%   nm   nm \n Direct lease financing   678,740   8.01%   (3.90%)   (4.40%) \n Other loans   155,825   5.54%   (4.04%)   38.73% \n Unamortized loan fees and costs   14,684   —   nm   nm \n Total loan portfolio $ 7,881,943   5.54%         \n                     \n Deposits:                   \n Fintech   $ 7,775,692   1.64%   30.23%   (0.49%) \n Non-fintech     540,965   2.57%   nm   nm \n Total deposits   $ 8,316,657   1.70%         \n\n ((1)) Loan and deposit categories are based on period-end and average quarterly \n balances, respectively. Total loan portfolio includes both loans recorded at \n amortized cost and loans at fair value. \n ((2)) Average annualized rates are for the three months ended March 31, 2026. \n ((3)) Income related to non-interest-bearing balances is included in non-interest \n income. \n\n PORTFOLIO PERFORMANCE \n (Dollars in thousands) \n   \n Credit Quality \n   March 31,   December 31,   March 31, \n   2026   2025   2025 \n As of period end:                 \n Nonperforming loans to total loans   0.97%     1.04%     0.51% \n Nonperforming assets to total assets   1.37%     1.44%     1.10% \n                   \n Allowance for credit losses on loans to total loans((1))   0.81%     0.93%     0.82% \n Allowance for credit losses on loans to total assets   0.64%     0.71%     0.56% \n                   \n For the three months ended:                 \n Net charge-offs:                 \n Fintech $ 30,212   $ 38,584   $ 38,578 \n Non-fintech   466     629     520 \n Total $ 30,678   $ 39,213   $ 39,098 \n                   \n Net charge-offs/average loans (annualized)   1.68%     2.29%     2.44% \n Net charge-offs/average assets (annualized)   1.28%     1.77%     1.68% \n\n _____________ \n ((1)) Excludes loans recorded at fair value. \n\n Loan Delinquency and Non-Accrual \n                                           \n   March 31, 2026 \n   30-59 days   60-89 days   90+ days         Total         Total \n   past due   past due   still accruing   Non-accrual   past due   Current   loans \n Real estate bridge loans $ —   $ —   $ —   $ 22,454   $ 22,454   $ 2,257,000   $ 2,279,454 \n SBLOC / IBLOC   5,847     6,011     —     446     12,304     1,696,405     1,708,709 \n SBL non-real estate   1,227     1,750     —     9,726     12,703     229,742     242,445 \n SBL commercial mortgage   1,680     —     —     26,358     28,038     708,432     736,470 \n SBL construction   —     —     —     2,660     2,660     17,285     19,945 \n Fintech   17,188     3,214     1,762     —     22,164     1,624,436     1,646,600 \n Direct lease financing   3,846     1,115     411     10,743     16,115     662,625     678,740 \n Advisor financing   —     —     —     —     —     270,811     270,811 \n Other loans   110     —     1     406     517     155,308     155,825 \n Unamortized loan fees and costs   —     —     —     —     —     14,684     14,684 \n   $ 29,898   $ 12,090   $ 2,174   $ 72,793   $ 116,955   $ 7,636,728   $ 7,753,683 \n\n CAPITAL RATIOS \n             \n             \n   As of March 31, 2026 \n       The Bancorp Bank,   \"Well \n   The Bancorp, Inc.   N.A.   Capitalized\"((1)) \n             \n Tier 1 capital to average assets 7.30%   9.18%   5.00% \n Tier 1 capital to risk-weighted assets 11.21%   14.06%   8.00% \n Total capital to risk-weighted assets 12.26%   15.10%   10.00% \n Common equity Tier 1 to risk-weighted assets 11.21%   14.06%   6.50% \n             \n\n ((1)) “Well capitalized” institution under federal regulations Basel III. \n\n\nNON-GAAP FINANCIAL MEASURES\n\nWe use certain financial measures which are not calculated and presented in\naccordance with U.S. generally accepted accounting principles (“GAAP”).\nThese measures are focused on adjusting certain metrics used to measure our\nperformance to exclude the impact of Non-interest income-Fintech loan credit\nenhancement. That income amount relates to credit enhancement agreements from\nthird parties that cover losses from borrowers for fintech loans receivable.\nWe recognize provision expense for credit losses on fintech loans, and\nseparately record an amount in Non-interest income—Fintech loan credit\nenhancement for the recovery from the third-party. The measurement of the\nestimated credit losses and the estimated recovery from the credit enhancement\nare based on the same estimate and correlate to like amounts in our statement\nof operations. Our non-GAAP metrics are calculated to remove the volatility of\nthat credit enhancement recovery from measures used to review the performance\nand growth of our business.\n\nNon-GAAP measures include:\n\nEfficiency ratio is calculated as: (i) GAAP total non-interest expense;\ndivided by (ii) the total of GAAP Net interest income and Non-interest income\nless Fintech loan credit enhancement income, or “Adjusted total revenue.”\nThis ratio compares revenues generated with the amount of expense required to\ngenerate such revenues and may be used as one measure of overall efficiency.\n\nTotal revenue, excluding credit enhancement is calculated as: the total of\nGAAP Net interest income and Non-interest income less Fintech loan credit\nenhancement income. This figure adjusts our total revenue for amounts received\nrelated to credit enhancement agreements, to remove the volatility of that\ncredit enhancement recovery when measuring our revenue results.\n\nNon-interest income, excluding credit enhancement is calculated as: GAAP\nNon-interest-income less Fintech loan credit enhancement income. This figure\nadjusts our non-interest income for amounts received related to credit\nenhancement agreements, to remove the volatility of that credit enhancement\nrecovery when measuring our non-interest income results.\n\nNon-interest income as a percentage of total revenue (excluding credit\nenhancement) is calculated as: (i) GAAP Non-interest-income less Fintech loan\ncredit enhancement income; divided by (ii) Adjusted total revenue. This ratio\nis used to compare the amount of non-interest income, which is primarily\nfee-based, to our total revenue each period to review the growth in our\nfee-based business.\n\nFintech fees as a percentage of total revenue (excluding credit enhancement)\nis calculated as: (i) GAAP Non-interest income – Total fintech fees; divided\nby (ii) Adjusted total revenue. This ratio is used to compare the amount of\nfintech fee revenue to our total revenue each period to review the growth in\nthat revenue area, which is one of our key areas of focus.\n\nWe believe that these non-GAAP measures are useful performance metrics for\nmanagement, investors, and lenders, because it provides a means to evaluate\nperiod-to-period comparisons of the Company's financial performance without\nthe effects of certain adjustments in accordance with GAAP that may not\nnecessarily be indicative of current operating performance. Non-GAAP financial\nmeasures should not be considered as an alternative to GAAP financial\nmeasures. They may not be indicative of the historical operating results of\nthe Company nor are they intended to be predictive of potential future\nresults. Investors should not consider non-GAAP financial measures in\nisolation or as a substitute for performance measures calculated in accordance\nwith GAAP.\n Reconciliation of Non-GAAP Measures: \n (Dollars in thousands) \n   \n                     \n     Three months ended \n     March 31,   December 31,   March 31, \n     2026   2025   2025 \n Net interest income   $ 88,814   $ 92,079   $ 91,743 \n Non-interest income A   72,525     80,532     83,642 \n Total revenue B   161,339     172,611     175,385 \n Less: Fintech loan credit enhancement     (28,843)     (40,403)     (45,868) \n Adjusted total revenue C $ 132,496   $ 132,208   $ 129,517 \n                     \n Non-interest income     72,525     80,532     83,642 \n Less: Fintech loan credit enhancement     (28,843)     (40,403)     (45,868) \n Adjusted non-interest income D $ 43,682   $ 40,129   $ 37,774 \n                     \n Non-interest expense E $ 55,026   $ 56,193   $ 53,294 \n Non-interest income - total fintech fees F $ 38,069   $ 35,973   $ 34,446 \n                     \n                     \n Non-GAAP Measures                   \n Efficiency ratio E/C   41.5%     42.5%     41.1% \n                     \n Total revenue, excluding credit enhancement C $ 132,496   $ 132,208   $ 129,517 \n Non-interest income, excluding credit enhancement D $ 43,682   $ 40,129   $ 37,774 \n                     \n Non-interest income as a percentage of total revenue A/B   45.0%     46.7%     47.7% \n Non-interest income as a percentage of total revenue (excluding credit D/C   33.0%     30.4%     29.2% \n enhancement) \n                     \n Fintech fees as a percentage of total revenue F/B   23.6%     20.8%     19.6% \n Fintech fees as a percentage of total revenue (excluding credit enhancement F/C   28.7%     27.2%     26.6% \n income) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260422177210/en/\n(https://www.businesswire.com/news/home/20260422177210/en/)\n\nThe Bancorp, Inc. \n\nAndres Viroslav, Director, Investor Relations\n\n215-861-7990\n\nandres.viroslav@thebancorp.com (mailto:andres.viroslav@thebancorp.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw1dCbZ9a","title":"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","author":"Business Wire","ticker":"TBBK","created":"2026-04-23T20:05:01.068Z","tickers":["TBBK"],"exchange":"NASDAQ","article_body":"The Bancorp Reports 1Q 2026 EPS of $1.41, ROA of 2.57%, and ROE of 35.1%\nDriven by Strong Growth in Loans, Deposits and Payments Volume, and Supported\nby Continued Improvement in Credit Performance\n\nFirst Quarter 2026 Highlights\n\n\n * Earnings per diluted share (“EPS”) of $1.41 compared to $1.19 for 1Q 2025,\nan increase of 18%.\n\n * Return on assets of 2.57% compared to 2.49% for 1Q 2025.\n\n * Return on equity of 35.1% compared to 28.6% for 1Q 2025.\n\n * Net income of $60.1 million compared to net income of $57.2 million for 1Q\n2025.\n\n * Net interest income of $88.8 million compared to $91.7 million for 1Q 2025.\n\n * Net interest margin of 3.87% compared to 4.07% for 1Q 2025.\n\n * Ending Loans, net of deferred fees and costs of $7.75 billion, compared to\n$6.38 billion at 1Q 2025, a 22% increase, and $7.12 billion at 4Q 2025, a 9%\nincrease (not annualized).\n\n * Ending Fintech loans of $1.65 billion, or 20.9% of total loans, compared to\n$574.0 million at 1Q 2025, a 187% increase, and $1.10 billion at 4Q 2025, a\n50% increase (not annualized).\n\n * Average deposits of $8.32 billion increased $5.3 million, or less than 1% from\n$8.31 billion in 1Q 2025 and increased $721.1 million, or 9%, from $7.60\nbillion in 4Q 2025. The average interest rate was 1.70% compared to 2.23% for\n1Q 2025 and 1.77% in 4Q 2025.\n\n * Gross dollar volume (“GDV”), representing the total amount spent on\nprepaid, debit and credit cards totaled $52.51 billion, an increase of $7.86\nbillion, or 18%, compared to 1Q 2025.\n\n * Fees on consumer credit from fintech loans increased 55% to $5.6 million for\n1Q 2026 compared to $3.6 million for 1Q 2025 and increased 24% from $4.5\nmillion in 4Q 2025.\n\n * Total prepaid, debit card, ACH, and other payment fees of $32.5 million, a 5%\nincrease, compared to $30.8 million in 1Q 2025.\n\n * Non-interest income totaled $72.5 million, or 45.0% of total revenue and $43.7\nmillion*, or 33.0% when excluding credit enhancement income.* This compares to\n47.7% of total revenue in 1Q 2025, or 29.2% when excluding credit enhancement\nincome.*\n\n * Ending Real estate bridge loans (“REBL”) characterized as criticized\nassets decreased to $59.1 million from $83.5 million at 4Q 2025, a 29%\ndecrease and decreased 70% compared to $200.0 million at 1Q 2025.\n\n * Share repurchases of $50.0 million, for 843,061 shares, or 2.0% of issued and\noutstanding shares, at an average cost of $59.31.\n\nThe Bancorp, Inc. (NASDAQ: TBBK), a financial holding company, today reported\nits financial results for the first quarter of 2026, reporting net income of\n$60.1 million and $1.41 per diluted share for the quarter, which is an 18%\ngrowth from the first quarter of 2025.\n\n“We started 2026 with robust above industry trend GDV growth and substantial\nprogress in our Fintech initiatives, as well as strong year-over-year EPS\ngrowth,” said Damian Kozlowski, CEO and President of The Bancorp. “We are\nmaintaining guidance at $5.90 EPS for 2026, and $1.75 per share in the fourth\nquarter 2026. Our expectation for 2027 EPS is now in the range of $8.10 to\n$8.30. The range for 2027 is generally consistent with the previous target\nwhile recognizing that the timing of new product and program launches can be\nsubject to partner timelines. Our outlook for 2026 and 2027 includes\nsignificant share repurchases, including $200 million total or $50 million a\nquarter in 2026 followed by near-100% of net income returned through share\nrepurchases thereafter. We believe our three major Fintech initiatives, along\nwith platform efficiency gains from restructuring and AI tools, plus a\nhigh-level of capital return through continued buybacks, will be the driving\nforces behind EPS accretion.”\n _______ \n * See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n\n                   \n (Dollars in thousands except EPS and except where noted. Unaudited)                 \n 1Q 2026   4Q 2025   1Q 2025 \n Key Performance Metrics:                 \n Return on assets((1))   2.57%     2.53%     2.49% \n Return on equity((1))   35.1%     30.4%     28.6% \n Efficiency ratio((2))   41.5%     42.5%     41.1% \n Net interest margin   3.87%     4.30%     4.07% \n Non-interest income as a percentage of total revenue   45.0%     46.7%     47.7% \n Non-interest income as a percentage of total revenue (excluding credit   33.0%     30.4%     29.2% \n enhancement income)((2)) \n Fintech fees as a percentage of total revenue   23.6%     20.8%     19.6% \n Fintech fees as a percentage of total revenue (excluding credit enhancement   28.7%     27.2%     26.6% \n income)((2)) \n Book value per share (as of period end) $ 16.65   $ 16.29   $ 17.66 \n                   \n Results of Operations:                 \n Net income $ 60,069   $ 56,292   $ 57,173 \n Net income per share - diluted $ 1.41   $ 1.28   $ 1.19 \n Weighted average shares - diluted   42,594,824     44,078,506     47,959,292 \n                   \n Net interest income $ 88,814   $ 92,079   $ 91,743 \n Provision (reversal) for credit losses on non-fintech loans $ (1,348)   $ 858   $ 874 \n Non-interest income - total fintech fees $ 38,069   $ 35,973   $ 34,446 \n Total non-interest expense $ 55,026   $ 56,193   $ 53,294 \n Income tax expense $ 18,643   $ 18,703   $ 18,065 \n                   \n Volume:                 \n Average loan portfolio (dollars in millions) $ 7,255   $ 6,847   $ 6,386 \n Average assets (dollars in millions) $ 9,484   $ 8,838   $ 9,319 \n Average deposits (dollars in millions) $ 8,317   $ 7,596   $ 8,311 \n Prepaid and debit card gross dollar volume (GDV)((3)) $ 52,512,908   $ 45,874,708   $ 44,650,422 \n\n ((1)) Annualized. \n ((2)) See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n ((3)) Gross dollar volume represents the total dollar amount spent on prepaid, debit \n and credit cards issued by The Bancorp Bank, N.A. \n\n\nEarnings Release Conference Call\n\nManagement will conduct a conference call to review first quarter 2026 results\nat 8:00 AM ET Friday, April 24, 2026. Interested parties may access the\nconference call live by clicking on the webcast link on The Bancorp’s\nhomepage at www.thebancorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.thebancorp.com&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=www.thebancorp.com&index=1&md5=0493f6e4402dc3c15f58526516729d1a)\nor you may dial 1.800.715.9871, conference ID 9545117.\n\nFor those who cannot access the live conference call, a replay of the webcast\nwill be accessible shortly after the event concludes through our Investor\nRelations website, or you may access the replay telephonically until Friday,\nMay 1, 2026, by dialing 1.800.770.2030, playback code 9545117#.\n\nFinancial Results:\n\nLoan Portfolio\n\nThe following table summarizes our total loan portfolio at March 31, 2026\ncompared to prior periods:\n                         \n   \n (in thousands, unaudited) March 31,   December 31,   March 31, \n   2026   2025   2025 \n       Mix       Mix       Mix \n Loans, at amortized cost:                       \n Real estate bridge lending $ 2,279,454 28.9%   $ 2,188,952 30.2%   $ 2,212,054 33.6% \n SBLOC / IBLOC   1,708,709 21.7%     1,669,985 23.0%     1,577,170 23.9% \n Small business loans   998,860 12.7% 1,006,898 13.9% 915,230 13.9% \n Fintech   1,646,600 20.9%     1,097,998 15.1%     574,048 8.7% \n Direct lease financing   678,740 8.6%     685,422 9.4%     709,978 10.8% \n Advisor financing   270,811 3.4%     294,236 4.1%     265,950 4.0% \n Other loans   155,825 2.0%     157,416 2.2%     112,322 1.7% \n     7,738,999 98.2%     7,100,907 97.9%     6,366,752 96.6% \n Unamortized loan fees and costs   14,684 0.2% 15,769 0.2% 13,398 0.2% \n Loans, net of deferred fees and costs $ 7,753,683 98.4% $ 7,116,676 98.1% $ 6,380,150 96.8% \n       \n Loans, at fair value:     \n SBLs, at fair value $ 64,530 0.8% $ 68,374 0.9% $ 83,448 1.3% \n Real estate bridge loans (non-SBA), at fair value   63,730 0.8% 71,015 1.0% 128,132 1.9% \n Total commercial loans, at fair value $ 128,260 1.6% $ 139,389 1.9% $ 211,580 3.2% \n                     \n Total loan portfolio $ 7,881,943 100.0%   $ 7,256,065 100.0%   $ 6,591,730 100.0% \n\n\nAt March 31, 2026, Loans, net of deferred fees and costs were $7.75 billion, a\n9% increase (not annualized) from $7.12 billion at December 31, 2025, and a\n22% increase compared to $6.38 billion at March 31, 2025. The $1.37 billion\nincrease from March 31, 2025 is primarily driven by growth in fintech loans of\n$1.07 billion, $131.5 million increase in securities-backed lines of credit\n(“SBLOC”) and insurance policy cash value-backed lines of credit\n(“IBLOC”), and $83.6 million increase in small business loans.\n\nFintech loans of $1.65 billion include $1.22 billion from secured credit card\naccounts and $427.3 million from short-term liquidity products, and account\nfor 20.9% of the total loan portfolio, continuing the strategic shift of the\nbalance sheet towards sponsored lending. Secured credit card accounts are\nbacked by cash collateral by each individual cardholder, held on the balance\nsheet as non-interest earning deposits, with the loan balance required to be\nrepaid in full monthly. Short-term liquidity products to individual borrowers\nrange in maturity from 30 days to 365 days. All fintech loans are covered by\ncredit enhancements, where our partners provide financial protection against\nconsumer credit losses. We maintain cash collateral balances equivalent to the\nexpected losses on dollars already lent, as well as having the right to offset\nother revenues generated through those relationships.\n\nDeposits & Liquidity\n\nAverage deposits for the fourth quarter were $8.32 billion, a 9% increase (not\nannualized) from $7.60 billion in 4Q 2025, and less than 1% increase from\n$8.31 billion in 1Q 2025. The increase from 4Q 2025 is primarily driven by\ncontinued growth in deposits sourced from our fintech relationships.\n\nThe average interest rate on deposits for 1Q 2026 was 1.70%, a 7 basis point\ndecrease compared to 4Q 2025 and a 53 basis point decrease compared to 1Q\n2025, driven by the mix of deposits and the short-term interest rate\nenvironment.\n\nOur fintech partnerships generate 93% of our total deposits, and are low\nbalance, insured deposits, and accordingly, do not constitute the same\nliquidity risk experienced by traditional branch deposit franchises. As of\nMarch 31, 2026, 94% of the deposits are insured, 3% are low balance accounts\nsuch as anonymous gift cards and corporate incentive cards for which there is\nno identified depositor, and 3% are other uninsured deposits.\n\nAs of March 31 2026, we had $1.34 billion of off-balance sheet deposits, which\nconsist of deposits swept to other financial institutions to manage our\nbalance sheet composition and deposit portfolio diversity. Off-balance sheet\ndeposits were $849.9 million as of December 31, 2025 and $793.1 million as of\nMarch 31, 2025.\n\nWe maintain secured borrowing lines of credit with the Federal Reserve Bank\nand Federal Home Loan Bank that are collateralized by pledged loans and\ninvestments. As of March 31, 2026, we had $470.0 million of short-term\nborrowings under these facilities, which averaged $145.9 million for 1Q 2026.\nBased on the current amount of loans and securities pledged, there is $2.98\nbillion of additional available capacity.\n\nNet Interest Income and Net Interest Margin\n\nNet interest income of $88.8 million for 1Q 2026, compared to $92.1 million\nfor 4Q 2025 and $91.7 million for 1Q 2025. The decrease compared to 4Q 2025\nwas driven primarily by lower rate on non-fintech loans combined with the\nshift in our portfolio to more fintech loans, for which we primarily earn fee\nincome. The decrease compared to 1Q 2025 was primarily driven by the upsizing\nand the higher rate of the senior note debt issuance that occurred in 3Q 2025.\n\nNet interest margin was 3.87% for 1Q 2026, compared to 4.30% for 4Q 2025 and\n4.07% for 1Q 2025. The decline from 4Q 2025 was primarily driven by mix and\nthe lag timing of short-term interest rates on variable rate loans. The\ndecline from prior year quarter was primarily driven by the shift of our\nportfolio mix to more fintech loans for which we primarily earn fee income,\nalthough we recognize interest income on certain fintech loan products.\n\nCredit Quality\n\nTotal Provision, including provision for fintech loans that are supported by\ncredit enhancements, was $27.6 million in 1Q 2026, a decrease compared to\n$41.4 million in 4Q 2025, and a decrease from $46.9 million in 1Q 2025.\nProvision for non-Fintech loans was a reversal of $1.3 million in 1Q 2026,\ncompared to provision expense of $0.9 million in 4Q 2025 and $0.9 million in\n1Q 2025. The provision reversal in 1Q 2026 was primarily driven by\nimprovements in credit performance in our leasing portfolio. Provision for\nfintech loans was $28.8 million in 1Q 2026, compared to $40.4 million in 4Q\n2025 and $45.9 million in 1Q 2025. The lower provision for fintech loans was\nprimarily driven by improved performance in unsecured credit products.\n\nThe allowance for credit losses was $63.0 million at March 31, 2026,\nconsisting of $29.8 million related to fintech loans, or 1.81% of fintech\nloans, and $33.2 million for non-fintech loans, or 0.54% of non-fintech loans.\nThat compares to the allowance at December 31, 2025 of $66.2 million,\nconsisting of $31.1 million for fintech, or 2.84% of fintech loans, and $35.1\nmillion for non-fintech, or 0.58% of non-fintech loans. Allowance at March 31,\n2025 was $52.5 million, consisting of $20.2 million related to fintech loans,\nor 3.52% of fintech loans, and $32.3 million allowance for non-fintech loans,\nor 0.56% of non-fintech loans.\n\nTotal net charge-offs for 1Q 2026, including fintech loans which are supported\nby credit enhancements, were $30.7 million, a decrease from $39.2 million for\n4Q 2025 and a decrease from $39.1 million for 1Q 2025, resulting in ratios of\ntotal net charge-offs to average loans of 1.68%, 2.29% and 2.44% for the\nrespective periods (annualized). The improvement in net charge-offs was driven\nby improved performance of fintech loans. Net charge-offs for non-fintech\nloans were $0.5 million for 1Q 2026, flat compared to $0.6 million for 4Q 2025\nand $0.5 million for 1Q 2025, resulting in ratios of non-fintech net\ncharge-offs to non-fintech average loans of 0.03%, 0.04% and 0.02%\n(annualized) for each of the respective periods.\n\nEnding total criticized assets of $163.1 million at 1Q 2026, a 16% decrease\nfrom $194.5 million at the end of 4Q 2025 primarily driven by a $24.4 million\ndecrease in criticized Real estate bridge loans, and a $6.3 million decrease\nin criticized small business loans.\n\nNon-Interest Income\n\nNon-interest income for 1Q 2026 was $72.5 million, which is comprised of $28.8\nmillion of credit enhancement income and $43.7 million of other non-interest\nincome. This compares to $80.5 million in 4Q 2025, comprised of $40.4 million\nof credit enhancement income and $40.1 million of other non-interest income.\nNon-interest income for 1Q 2025 was $83.6 million, comprised of $45.9 million\nof credit enhancement income and $37.8 million of other non-interest income.\n\nExcluding credit enhancement, non-interest income for 1Q 2026 was $43.7\nmillion, a $3.6 million increase compared to 4Q 2025, and a $5.9 million\nincrease compared to 1Q 2025. The $3.6 million increase compared to 4Q 2025\nwas primarily driven by a $2.1 million increase in total fintech fees and a\n$1.3 million increase in other non-interest income primarily driven by $0.9\nmillion earned on deposit sweeps. The $5.9 million increase compared to 1Q\n2025 reflects a $3.6 million increase in total fintech fees, driven by organic\nvolume growth with existing partners and products, and our focus on expanding\nour fintech business. In addition, other non-interest income increased $2.7\nmillion from 1Q 2025, primarily driven by $1.1 million of higher other fee\nincome from loans and $0.9 million earned on deposit sweeps.\n\nNon-interest income mix to total revenue, excluding credit enhancement*, was\n33.0% compared to 30.4% in 4Q 2025 and 29.2% in 1Q 2025. Fintech fees as a\npercentage of total revenue, excluding credit enhancement* is 28.7% compared\nto 27.2% in 4Q 2025 and 26.6% in 1Q 2025.\n _______  \n * See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n\n\nNon-Interest Expense\n\nTotal non-interest expense of $55.0 million decreased $1.2 million from 4Q\n2025 and increased $1.7 million from 1Q 2025. The decrease from 4Q 2025 is\nprimarily driven by a $4.0 million favorable variance in legal settlements\nwhere we recognized a $2.0 million expense in 4Q 2025 and a $2.0 million\nrecovery in 1Q 2026. That amount was partially offset by higher salary and\nbenefits costs of $3.1 million, driven primarily by $2.6 million related to\ntiming of incentive accruals.\n\nThe increase of $1.7 million from 1Q 2025 is primarily driven by $3.8 million\nhigher salary and employee benefits including $1.1 million of costs incurred\nin 1Q 2026 associated with organization changes and $1.8 million of higher\ncosts related to incentive accruals, partially offset by $2.0 million\nreimbursement from insurance related to a legal settlement that was previously\nexpensed in 4Q 2025.\n\nEfficiency ratio* was 41.5% for 1Q 2026, compared to 42.5% for 4Q 2025 and\n41.1% for 1Q 2025.\n\nIncome Taxes\n\nIncome tax expense was $18.6 million for 1Q 2026, $18.7 million for 4Q 2025,\nand $18.1 million for 1Q 2025. Our effective income tax rate was 23.7% for 1Q\n2026, 24.9% for 4Q 2025, and 24.0% for 1Q 2025. The decline in rate for the\nfirst quarters is primarily driven by vesting activity of stock awards in\nthose periods.\n\nCapital\n\nAs of March 31, 2026, capital levels for The Bancorp Bank, N.A. (the\n“Bank”) continue to be strong and in excess of the “well capitalized”\nregulatory benchmarks, with Tier 1 Capital to average assets (Leverage), Tier\n1 Capital to Risk-Weighted Assets, Total Capital to Risk-Weighted Assets and\nCommon Equity Tier 1 to Risk-Weighted Assets ratios for the Bank of 9.18%,\n14.06%, 15.10%, and 14.06%, respectively, and for the Company of 7.30%,\n11.21%, 12.26%, and 11.21%, respectively.\n\nBook value per common share at March 31, 2026 was $16.65, compared to $16.29\nat December 31, 2025 (a 9% increase, annualized). Total shareholders’ equity\nincreased by $7.2 million, driven primarily by $60.1 million of net income\npartially offset by $50.3 million of share repurchases. Compared to March 31,\n2025, total shareholders’ equity decreased by $132.7 million, primarily\ndriven by $391.0 million of share repurchases partially offset by $231.1\nmillion of net income and $19.8 million of stock-based compensation.\nOutstanding shares decreased 5.121 million since March 31, 2025, driven\nprimarily by share repurchases.\n\nOutstanding shares decreased by 496,816 since December 31, 2025 to 41.859\nmillion, driven primarily by share repurchases. During 1Q 2026, we repurchased\n843,061 shares of our common stock, or 2% of issued and outstanding shares, at\nan average cost of $59.31 per share for a total capital return of $50.0\nmillion.\n\nAbout The Bancorp\n\nThe Bancorp, Inc\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.thebancorp.com&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=The+Bancorp%2C+Inc&index=2&md5=4619f2f94b56f112fc59a6ed097151da)\n. (NASDAQ: TBBK), through its subsidiary, The Bancorp Bank, N.A., is defining\nthe future of banking. As one of the first banks to embrace fintech, The\nBancorp has been a driving force behind the industry’s evolution, serving as\nan essential financial enabler of Fintech innovation for more than 25 years.\nLed by its Fintech Solutions business, the company delivers a dynamic\nportfolio of payment and lending solutions that empowers its clients to turn\nbold ideas into real-world success.\n\nRanked by the Nilson Report as the No. 1 issuer of prepaid cards in the U.S.\nand among the top 10 debit card issuers nationally, The Bancorp also holds\nleading positions in its Institutional Banking\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2Finstitutional-banking%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Institutional+Banking&index=3&md5=c195db9189441f081f30f6b92bda24cb)\n, Small Business Lending\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2Fcommercial-lending%2Fsmall-business-lending%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Small+Business+Lending&index=4&md5=ee0b37642124bd09ab1a49ee54a9368d)\n, Fleet Management Services\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2Fcommercial-lending%2Ffleet-management-services%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Fleet+Management+Services&index=5&md5=34be486e8ecd32f37aa3df27b9bd41f7)\n, and Real Estate Bridge Lending\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2FCredit-solutions%2FReal-estate-bridge-lending%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=Real+Estate+Bridge+Lending&index=6&md5=6d7d13a0733814343168f40b29e68664)\nbusinesses. Across every line of business, The Bancorp fosters prosperity\nthrough the perpetual transformation of banking and aims to drive growth for\nits clients, investors, employees, and the communities it serves. For more\ninformation, visit https://thebancorp.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fthebancorp.com%2F&esheet=54520992&newsitemid=20260422177210&lan=en-US&anchor=https%3A%2F%2Fthebancorp.com%2F&index=7&md5=03d45800347023e4191327d99e25081d)\n.\n _______ \n * See “Non-GAAP Financial Measures” section at the end of the document for \n detailed description. \n\n\nForward-Looking Statements\n\nStatements in this earnings release regarding The Bancorp’s business that\nare not historical facts, are “forward-looking statements.” These\nstatements may be identified by the use of forward-looking terminology,\nincluding, but not limited to the words “estimate,” “project,”\n“plan,” “believe,” “expect,” “anticipate,” “intend,”\n“may,” “will,” “could,” “continue” or the negative thereof and\nsimilar terms or expressions. Forward-looking statements include, but are not\nlimited to, statements regarding our anticipated 2026 and 2027 results,\nincluding earnings per share accretion, future growth, profitability,\nproductivity and efficiency, the expansion, expected timelines, and\nimplementation of our Fintech initiatives and revenue streams, the possible\nbenefits of our platform restructuring and adoption of AI tools, and share\nrepurchases. Such forward-looking statements relate to our current\nassumptions, projections, and expectations about our business and future\nevents, including current expectations about important economic and political\nfactors, among other factors, and are subject to risks and uncertainties,\nwhich could cause the actual results, events, or achievements to differ\nmaterially from those set forth in or implied by the forward-looking\nstatements and related assumptions. Factors that could cause results to differ\nfrom those expressed in the forward-looking statements also include, but are\nnot limited to the risks and uncertainties referenced or described in The\nBancorp’s filings with the Securities and Exchange Commission, including the\n“Risk Factors” and “Management’s Discussion and Analysis of Financial\nCondition and Results of Operations” sections of the Company’s Annual\nReport on Form 10-K for the fiscal year ended December 31, 2025 and other\ndocuments that the Company files from time to time with the Securities and\nExchange Commission. The forward-looking statements speak only as of the date\nof this press release. The Bancorp does not undertake any duty to publicly\nrevise or update forward-looking statements in this press release to reflect\nevents or circumstances that arise after the date of this press release,\nexcept as may be required under applicable law.\n   \n THE BANCORP, INC. \n SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) \n   \n   \n CONDENSED CONSOLIDATED INCOME STATEMENTS \n (Dollars in thousands, except share and per share data) \n   \n             \n     Three months ended \n     March 31, \n   2026   2025 \n             \n             \n Net interest income $ 88,814   $ 91,743 \n             \n Provision (reversal) for credit losses on non-fintech loans   (1,348)     874 \n Provision for credit losses on fintech loans   28,843     45,868 \n Provision for unfunded commitments   106     111 \n Provision for credit losses, total   27,601     46,853 \n             \n Non-interest income:           \n Fintech fees           \n ACH, card and other payment fees   5,796     5,132 \n Prepaid, debit card and related fees   26,677     25,714 \n Consumer credit fintech fees   5,596     3,600 \n Total fintech fees   38,069     34,446 \n Net realized and unrealized gains on commercial loans, at fair value   6     361 \n Leasing related income   1,901     1,972 \n Fintech loan credit enhancement   28,843     45,868 \n Other non-interest income   3,706     995 \n Total non-interest income   72,525     83,642 \n             \n Non-interest expense:           \n Salaries and employee benefits   37,477     33,669 \n Data processing expense   1,309     1,205 \n Legal expense   1,590     1,957 \n Legal settlement (reimbursement)   (2,000)     — \n FDIC insurance   1,251     1,053 \n Software   5,369     5,013 \n Other non-interest expense   10,030     10,397 \n Total non-interest expense   55,026     53,294 \n Income before income taxes   78,712     75,238 \n Income tax expense   18,643     18,065 \n Net income $ 60,069   $ 57,173 \n             \n Earnings per share - basic $ 1.43   $ 1.21 \n Earnings per share - diluted $ 1.41   $ 1.19 \n             \n Weighted average shares - basic   42,133,301     47,214,050 \n Weighted average shares - diluted   42,594,824     47,959,292 \n\n   \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (Dollars in thousands, except share and per share data) \n   \n                         \n   March 31,   December 31,   September 30,   March 31, \n   2026   2025   2025   2025 \n                         \n Assets:                       \n Cash and cash equivalents                       \n Cash and due from banks $ 8,673   $ 8,038   $ 10,162   $ 9,684 \n Interest earning deposits   58,510     104,611     74,517     1,011,585 \n Total cash and cash equivalents   67,183     112,649     84,679     1,021,269 \n                         \n Investment securities, available-for-sale, at fair value   1,646,541     1,671,750     1,384,256     1,488,184 \n Commercial loans, at fair value   128,260     139,389     142,658     211,580 \n Loans, net of deferred fees and costs   7,753,683     7,116,676     6,672,637     6,380,150 \n Allowance for credit losses   (63,017)     (66,200)     (64,152)     (52,497) \n Loans, net   7,690,666     7,050,476     6,608,485     6,327,653 \n Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve   37,785     25,205     25,250     16,250 \n Bank stock \n Accrued interest receivable   41,315     43,090     43,831     42,464 \n Other real estate owned   60,998     60,695     61,974     67,129 \n Deferred tax asset, net   21,139     18,679     10,034     13,585 \n Credit enhancement asset   29,769     31,138     29,318     20,199 \n Other   175,108     199,354     208,939     177,414 \n Total assets $ 9,898,764   $ 9,352,425   $ 8,599,424   $ 9,385,727 \n                         \n Liabilities:                       \n Deposits                       \n Demand and interest checking $ 8,281,037   $ 7,827,037   $ 7,254,896   $ 8,283,262 \n Savings and money market   148,988     338,459     75,901     81,320 \n Total deposits   8,430,025 8,165,496 7,330,797 8,364,582 \n                         \n Short-term borrowings   470,000     199,000     200,000     — \n Senior debt   196,320     196,253     196,052     96,303 \n Subordinated debenture   13,401     13,401     13,401     13,401 \n Other long-term borrowings   13,626     13,712     13,806     13,988 \n Other liabilities   78,442 74,767 67,206 67,766 \n Total liabilities $ 9,201,814 $ 8,662,629 $ 7,821,262 $ 8,556,040 \n                         \n Total shareholders' equity   696,950     689,796     778,162     829,687 \n                 \n Total liabilities and shareholders' equity $ 9,898,764 $ 9,352,425 $ 8,599,424 $ 9,385,727 \n\n   \n AVERAGE BALANCE SHEET - QTD \n (Dollars in thousands) \n                                   \n                                   \n     Three months ended March 31, 2026     Three months ended March 31, 2025 \n                                   \n     Average           Average     Average         Average \n Assets:   Balance     Interest     Rate     Balance     Interest   Rate \n                                   \n Interest earning assets:                                 \n Non-fintech loans $ 6,132,928   $ 105,598     6.89%   $ 5,913,806   $ 108,562   7.34% \n Fintech loans   1,115,138     1,826     0.66%     466,809     240   0.21% \n Loans, net of deferred fees and costs((1)) $ 7,248,066   $ 107,424     5.93%   $ 6,380,615   $ 108,802   6.82% \n Leases-bank qualified((2))   6,922     152     8.78%     5,853     139   9.50% \n Investment securities-taxable   1,662,417     19,920     4.79%     1,489,329     18,127   4.87% \n Investment securities-nontaxable((2))   10,426     165     6.33%     6,256     105   6.71% \n Interest earning deposits   250,018     2,196     3.51%     1,136,402     12,680   4.46% \n Net interest earning assets   9,177,849     129,857     5.66%     9,018,455     139,853   6.20% \n                                   \n Allowance for credit losses   (55,633)                 (44,915)           \n Other assets   361,873                 345,791           \n   $ 9,484,089               $ 9,319,331           \n                                   \n Liabilities and Shareholders' Equity:                                 \n Deposits:                                 \n Demand and interest checking $ 8,088,696   $ 33,210     1.64%   $ 8,174,676   $ 45,045   2.20% \n Savings and money market   227,961     2,079     3.65%     136,688     1,330   3.89% \n Total deposits   8,316,657     35,289     1.70%     8,311,364     46,375   2.23% \n                                   \n Short-term borrowings   145,884     1,381     3.79%     —     —   — \n Long-term borrowings   13,687     197     5.76%     14,050     195   5.55% \n Subordinated debentures   13,401     235 7.01%     13,401     255 7.61% \n Senior debt   196,203     3,875 7.90%     96,244     1,234 5.13% \n Total deposits and liabilities   8,685,832     40,977     1.89%     8,435,059     48,059   2.28% \n                                   \n Other liabilities   104,884                 74,537           \n Total liabilities   8,790,716                 8,509,596           \n                                   \n Shareholders' equity   693,373                 809,735           \n   $ 9,484,089               $ 9,319,331           \n Net interest income on tax equivalent basis((2))       $ 88,880           $ 91,794   \n                         \n Tax equivalent adjustment       66             51   \n                           \n Net interest income     $ 88,814       $ 91,743 \n Net interest margin((2))               3.87%               4.07% \n\n ((1)) Includes commercial loans, at fair value. All periods include non-accrual \n loans. \n ((2)) Full taxable equivalent basis, using 21% respective statutory federal tax \n rates in 2026 and 2025. \n\n                     \n BUSINESS LINE QUARTERLY SUMMARY \n (Dollars in thousands) \n                     \n                     \n     Three months ended March 31, 2026 \n               % Growth in balance \n Loans:     Total((1))   Average rates((2))   Linked quarter   Year over Year \n \nannualized \n Real estate bridge loans - recorded at amortized cost $ 2,279,454   7.63%   16.54%   3.05% \n Real estate bridge loans (non-SBA) - recorded at fair value   63,730   6.79%   nm   nm \n SBLOC/IBLOC and Advisor financing   1,979,520   5.66%   3.12%   7.40% \n Small business lending   1,063,390   6.98%   (4.42%)   6.48% \n Fintech loans - non-interest bearing((3))   1,473,238   —   nm   nm \n Fintech loans - interest bearing   173,362   4.88%   nm   nm \n Direct lease financing   678,740   8.01%   (3.90%)   (4.40%) \n Other loans   155,825   5.54%   (4.04%)   38.73% \n Unamortized loan fees and costs   14,684   —   nm   nm \n Total loan portfolio $ 7,881,943   5.54%         \n                     \n Deposits:                   \n Fintech   $ 7,775,692   1.64%   30.23%   (0.49%) \n Non-fintech     540,965   2.57%   nm   nm \n Total deposits   $ 8,316,657   1.70%         \n\n ((1)) Loan and deposit categories are based on period-end and average quarterly \n balances, respectively. Total loan portfolio includes both loans recorded at \n amortized cost and loans at fair value. \n ((2)) Average annualized rates are for the three months ended March 31, 2026. \n ((3)) Income related to non-interest-bearing balances is included in non-interest \n income. \n\n PORTFOLIO PERFORMANCE \n (Dollars in thousands) \n   \n Credit Quality \n   March 31,   December 31,   March 31, \n   2026   2025   2025 \n As of period end:                 \n Nonperforming loans to total loans   0.97%     1.04%     0.51% \n Nonperforming assets to total assets   1.37%     1.44%     1.10% \n                   \n Allowance for credit losses on loans to total loans((1))   0.81%     0.93%     0.82% \n Allowance for credit losses on loans to total assets   0.64%     0.71%     0.56% \n                   \n For the three months ended:                 \n Net charge-offs:                 \n Fintech $ 30,212   $ 38,584   $ 38,578 \n Non-fintech   466     629     520 \n Total $ 30,678   $ 39,213   $ 39,098 \n                   \n Net charge-offs/average loans (annualized)   1.68%     2.29%     2.44% \n Net charge-offs/average assets (annualized)   1.28%     1.77%     1.68% \n\n _____________ \n ((1)) Excludes loans recorded at fair value. \n\n Loan Delinquency and Non-Accrual \n                                           \n   March 31, 2026 \n   30-59 days   60-89 days   90+ days         Total         Total \n   past due   past due   still accruing   Non-accrual   past due   Current   loans \n Real estate bridge loans $ —   $ —   $ —   $ 22,454   $ 22,454   $ 2,257,000   $ 2,279,454 \n SBLOC / IBLOC   5,847     6,011     —     446     12,304     1,696,405     1,708,709 \n SBL non-real estate   1,227     1,750     —     9,726     12,703     229,742     242,445 \n SBL commercial mortgage   1,680     —     —     26,358     28,038     708,432     736,470 \n SBL construction   —     —     —     2,660     2,660     17,285     19,945 \n Fintech   17,188     3,214     1,762     —     22,164     1,624,436     1,646,600 \n Direct lease financing   3,846     1,115     411     10,743     16,115     662,625     678,740 \n Advisor financing   —     —     —     —     —     270,811     270,811 \n Other loans   110     —     1     406     517     155,308     155,825 \n Unamortized loan fees and costs   —     —     —     —     —     14,684     14,684 \n   $ 29,898   $ 12,090   $ 2,174   $ 72,793   $ 116,955   $ 7,636,728   $ 7,753,683 \n\n CAPITAL RATIOS \n             \n             \n   As of March 31, 2026 \n       The Bancorp Bank,   \"Well \n   The Bancorp, Inc.   N.A.   Capitalized\"((1)) \n             \n Tier 1 capital to average assets 7.30%   9.18%   5.00% \n Tier 1 capital to risk-weighted assets 11.21%   14.06%   8.00% \n Total capital to risk-weighted assets 12.26%   15.10%   10.00% \n Common equity Tier 1 to risk-weighted assets 11.21%   14.06%   6.50% \n             \n\n ((1)) “Well capitalized” institution under federal regulations Basel III. \n\n\nNON-GAAP FINANCIAL MEASURES\n\nWe use certain financial measures which are not calculated and presented in\naccordance with U.S. generally accepted accounting principles (“GAAP”).\nThese measures are focused on adjusting certain metrics used to measure our\nperformance to exclude the impact of Non-interest income-Fintech loan credit\nenhancement. That income amount relates to credit enhancement agreements from\nthird parties that cover losses from borrowers for fintech loans receivable.\nWe recognize provision expense for credit losses on fintech loans, and\nseparately record an amount in Non-interest income—Fintech loan credit\nenhancement for the recovery from the third-party. The measurement of the\nestimated credit losses and the estimated recovery from the credit enhancement\nare based on the same estimate and correlate to like amounts in our statement\nof operations. Our non-GAAP metrics are calculated to remove the volatility of\nthat credit enhancement recovery from measures used to review the performance\nand growth of our business.\n\nNon-GAAP measures include:\n\nEfficiency ratio is calculated as: (i) GAAP total non-interest expense;\ndivided by (ii) the total of GAAP Net interest income and Non-interest income\nless Fintech loan credit enhancement income, or “Adjusted total revenue.”\nThis ratio compares revenues generated with the amount of expense required to\ngenerate such revenues and may be used as one measure of overall efficiency.\n\nTotal revenue, excluding credit enhancement is calculated as: the total of\nGAAP Net interest income and Non-interest income less Fintech loan credit\nenhancement income. This figure adjusts our total revenue for amounts received\nrelated to credit enhancement agreements, to remove the volatility of that\ncredit enhancement recovery when measuring our revenue results.\n\nNon-interest income, excluding credit enhancement is calculated as: GAAP\nNon-interest-income less Fintech loan credit enhancement income. This figure\nadjusts our non-interest income for amounts received related to credit\nenhancement agreements, to remove the volatility of that credit enhancement\nrecovery when measuring our non-interest income results.\n\nNon-interest income as a percentage of total revenue (excluding credit\nenhancement) is calculated as: (i) GAAP Non-interest-income less Fintech loan\ncredit enhancement income; divided by (ii) Adjusted total revenue. This ratio\nis used to compare the amount of non-interest income, which is primarily\nfee-based, to our total revenue each period to review the growth in our\nfee-based business.\n\nFintech fees as a percentage of total revenue (excluding credit enhancement)\nis calculated as: (i) GAAP Non-interest income – Total fintech fees; divided\nby (ii) Adjusted total revenue. This ratio is used to compare the amount of\nfintech fee revenue to our total revenue each period to review the growth in\nthat revenue area, which is one of our key areas of focus.\n\nWe believe that these non-GAAP measures are useful performance metrics for\nmanagement, investors, and lenders, because it provides a means to evaluate\nperiod-to-period comparisons of the Company's financial performance without\nthe effects of certain adjustments in accordance with GAAP that may not\nnecessarily be indicative of current operating performance. Non-GAAP financial\nmeasures should not be considered as an alternative to GAAP financial\nmeasures. They may not be indicative of the historical operating results of\nthe Company nor are they intended to be predictive of potential future\nresults. Investors should not consider non-GAAP financial measures in\nisolation or as a substitute for performance measures calculated in accordance\nwith GAAP.\n Reconciliation of Non-GAAP Measures: \n (Dollars in thousands) \n   \n                     \n     Three months ended \n     March 31,   December 31,   March 31, \n     2026   2025   2025 \n Net interest income   $ 88,814   $ 92,079   $ 91,743 \n Non-interest income A   72,525     80,532     83,642 \n Total revenue B   161,339     172,611     175,385 \n Less: Fintech loan credit enhancement     (28,843)     (40,403)     (45,868) \n Adjusted total revenue C $ 132,496   $ 132,208   $ 129,517 \n                     \n Non-interest income     72,525     80,532     83,642 \n Less: Fintech loan credit enhancement     (28,843)     (40,403)     (45,868) \n Adjusted non-interest income D $ 43,682   $ 40,129   $ 37,774 \n                     \n Non-interest expense E $ 55,026   $ 56,193   $ 53,294 \n Non-interest income - total fintech fees F $ 38,069   $ 35,973   $ 34,446 \n                     \n                     \n Non-GAAP Measures                   \n Efficiency ratio E/C   41.5%     42.5%     41.1% \n                     \n Total revenue, excluding credit enhancement C $ 132,496   $ 132,208   $ 129,517 \n Non-interest income, excluding credit enhancement D $ 43,682   $ 40,129   $ 37,774 \n                     \n Non-interest income as a percentage of total revenue A/B   45.0%     46.7%     47.7% \n Non-interest income as a percentage of total revenue (excluding credit D/C   33.0%     30.4%     29.2% \n enhancement) \n                     \n Fintech fees as a percentage of total revenue F/B   23.6%     20.8%     19.6% \n Fintech fees as a percentage of total revenue (excluding credit enhancement F/C   28.7%     27.2%     26.6% \n income) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260422177210/en/\n(https://www.businesswire.com/news/home/20260422177210/en/)\n\nThe Bancorp, Inc. \n\nAndres Viroslav, Director, Investor Relations\n\n215-861-7990\n\nandres.viroslav@thebancorp.com (mailto:andres.viroslav@thebancorp.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-23T20:05:02.006863797Z","server_sent_at_ms":1776974702006},"received_at":"2026-04-23T20:05:02.061Z","source_url":"https://www.businesswire.com/news/home/20260422177210/en/"},"analysis":{"id":"5625","press_release_id":"7473","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":[],"eventType":"earnings","narrative":"The Bancorp reported first-quarter 2026 EPS of $1.41, an 18% increase from the prior year, supported by a 22% year-over-year rise in total loans to $7.75 billion.\n\nFintech loans surged 187% to $1.65 billion, now representing 20.9% of the total loan portfolio, while gross dollar volume grew 18% to $52.51 billion.\n\nManagement maintained 2026 EPS guidance at $5.90 and introduced a 2027 outlook of $8.10 to $8.30, supported by continued aggressive share repurchases totaling $50 million in the quarter.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Fintech loan growth explodes 187% as Bancorp raises the bar with new 2027 EPS guidance."},"keyFigures":{"eps":1.41,"guidance":"2026 EPS $5.90; 2027 EPS $8.10-$8.30","customDimensions":{"roa_percent":2.57,"roe_percent":35.1,"gdv_billions":52.51,"net_income_millions":60.1,"fintech_loans_billions":1.65}},"quotedText":"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","namedEntities":{"people":[{"name":"Damian Kozlowski","role":"CEO and President"},{"name":"Andres Viroslav","role":"Director, Investor Relations"}],"products":["Real estate bridge loans","SBLOC / IBLOC","Fintech loans","Direct lease financing","Advisor financing"],"companies":[{"name":"The Bancorp, Inc.","ticker":"TBBK"},{"name":"The Bancorp Bank, N.A."},{"name":"Federal Reserve Bank"},{"name":"Federal Home Loan Bank"},{"name":"Atlantic Central Bankers Bank"}],"dollarAmounts":[{"amount":"$1.41","context":"Earnings per diluted share for 1Q 2026"},{"amount":"$60.1 million","context":"Net income for 1Q 2026"},{"amount":"$7.75 billion","context":"Ending Loans, net of deferred fees and costs"},{"amount":"$1.65 billion","context":"Ending Fintech loans"},{"amount":"$52.51 billion","context":"Gross dollar volume (GDV)"},{"amount":"$50.0 million","context":"Share repurchases"}]},"materialImpact":{"score":4,"reasoning":"The company delivered an 18% year-over-year increase in EPS and significant expansion in its fintech loan portfolio (up 187%). 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