TBBK · The Bancorp, Inc.

The Bancorp delivered strong Q1 2026 results with net income of $60.1 million and EPS of $1.41, reflecting 18% YoY growth fueled by robust expansion in loans, deposits, and payments volume. Key drivers included a 22% YoY increase in net loans to $7.75 billion, primarily from Fintech loans surging 187% YoY to $1.65 billion (20.9% of total loans), supported by secured credit cards and short-term liquidity products with credit enhancements mitigating risk. Average deposits rose 9% QoQ to $8.32 billion at a lower 1.70% rate, with 93% from Fintech partnerships, maintaining high insurability (94%) and liquidity via $2.98 billion unused borrowing capacity. GDV grew 18% YoY to $52.51 billion, boosting payment fees 5% to $32.5 million, while Fintech credit fees jumped 55% to $5.6 million. Despite a net interest margin contraction to 3.87% from portfolio mix shift toward fee-heavy Fintech lending, non-interest income held at $72.5 million (45% of revenue). Credit quality strengthened with total provision down to $27.6 million, non-Fintech reversal of $1.3 million, and criticized REBL assets dropping 29% QoQ to $59.1 million. Management reaffirmed 2026 EPS guidance at $5.90 (Q4 $1.75) and raised 2027 outlook to $8.10-$8.30, underpinned by Fintech initiatives, AI-driven efficiencies, and aggressive capital returns including $50 million Q1 buyback (2% of shares) toward $200 million annual target and ~100% net income payout thereafter. CEO Kozlowski highlighted above-industry GDV trends and Fintech progress as core to EPS accretion under the APEX 2030 plan.