Bancorp, Inc 8-K, filed Oct 29, 2026
Bancorp, Inc. (TBBK)
8-K
2026-10-29
For: 2026-10-29
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Added on
October 29, 2026
About this 8-K
Bancorp, Inc filed this 8-K on October 29, 2026.
The Bancorp, Inc. reported 3Q 2026 net income of $62.8 million and EPS of $1.53, up 29.7% year over year. It maintained 2026 Core EPS guidance of $5.95 - $6.05 and initiated 2028 guidance of $8.00 - $8.20. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2026
(Exact name of registrant as specified in its charter)
Commission File Number: 000-51018
| (State or other jurisdiction of | (IRS Employer | ||||
| incorporation) | Identification No.) | ||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
| Item 2.02. | Results of Operations and Financial Condition | ||||
On October 29, 2026, The Bancorp, Inc. (the “Company”) issued a press release regarding its earnings for the three and nine months ended September 30, 2026. A copy of this press release is furnished with this report as Exhibit 99.1.
| Item 7.01. | Regulation FD Disclosure | ||||
The Company hereby furnishes the information set forth in the presentation attached hereto as Exhibit 99.2, which is incorporated herein by reference.
The information being furnished pursuant to Item 2.02 and Item 7.01 in this Current Report, including the exhibits hereto, is to be considered “furnished” pursuant to Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
| Item 9.01. | Financial Statements and Exhibits | ||||
(d)Exhibits
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | October 29, 2026 | The Bancorp, Inc. | |||||||||
| By: | /S/ DOMINIC C. CANUSO | ||||||||||
| Name: | Dominic C. Canuso | ||||||||||
| Title: | Chief Financial Officer (Principal Financial Officer) | ||||||||||
Exhibit 99.1
THE BANCORP REPORTS 3Q 2026 EPS OF $1.53, ROA OF 2.51%, AND ROE OF 36.0%
POWERED BY CONTINUOUS AND SUSTAINED GROWTH IN FINTECH FEES
Wilmington, DE – October 29, 2026 – The Bancorp, Inc. (NASDAQ: TBBK) (the “Company” or “we” or “our”), a financial holding company, today reported its financial results for the third quarter of 2026, reporting net income of $62.8 million and $1.53 per diluted share for the quarter, reflecting diluted EPS growth of 29.7% from the third quarter of 2025.
“It was a very eventful quarter for The Bancorp,” said Damian Kozlowski, CEO of The Bancorp, Inc. “We continued with strong momentum in Fintech and took actions to support future growth and increasing productivity and efficiency. I remain confident that we are well positioned to maintain our market-leading profitability and competitive position, while we continue to build and enhance our one-of-a-kind fintech ecosystem and franchise. We are maintaining Core EPS(1) guidance in the range of $5.95 - $6.05 a share for 2026(2), and providing a Core EPS(1) baseline range of $7.00 - $7.20 a share for 2027. In addition, we are initiating preliminary Core EPS(1) guidance for 2028 of $8.00 - $8.20 a share. Our guidance in 2026, 2027 and 2028 includes stock buybacks. We expect to repurchase $200 million of shares in 2026, or $50 million a quarter. We are currently targeting buyback amounts for 2027 through Q1 2028 to be approximately 100% of Adjusted net income(1). We expect our three major Fintech initiatives along with platform efficiency and productivity gains from our organizational restructuring and adoption of AI tools, plus capital return through continued buybacks, will be the driving forces behind EPS accretion. EPS gains are subject to development and implementation timelines in Fintech, and our stock price for buybacks.”
Selected GAAP financial results and metrics are as follows:
| (Dollars in thousands except where noted and per share data) | 3Q 2026 | 2Q 2026 | 3Q 2025 | |||||||||||||||||
| Results of Operations: | ||||||||||||||||||||
| Net income | $ | 62,780 | $ | 60,656 | $ | 54,927 | ||||||||||||||
| Net income per share - diluted | $ | 1.53 | $ | 1.45 | $ | 1.18 | ||||||||||||||
| Weighted average shares - diluted | 41,149,490 | 41,794,160 | 46,518,125 | |||||||||||||||||
| Net interest income | $ | 90,067 | $ | 90,466 | $ | 94,197 | ||||||||||||||
| Provision (reversal) for credit losses on non-fintech loans | $ | 655 | $ | 365 | $ | 5,755 | ||||||||||||||
| Non-interest income - total fintech fees | $ | 41,819 | $ | 40,894 | $ | 35,083 | ||||||||||||||
| Total non-interest expense | $ | 63,529 | $ | 56,476 | $ | 56,404 | ||||||||||||||
| Income tax expense | $ | 8,944 | $ | 20,285 | $ | 18,228 | ||||||||||||||
| Key Performance Metrics: | ||||||||||||||||||||
Return on assets(3) | 2.51 | % | 2.51 | % | 2.50 | % | ||||||||||||||
Return on equity(3) | 36.0 | % | 34.7 | % | 26.6 | % | ||||||||||||||
| Net interest margin | 3.75 | % | 3.85 | % | 4.45 | % | ||||||||||||||
| Book value per share (as of period end) | $ | 16.83 | $ | 17.19 | $ | 17.48 | ||||||||||||||
| Volume: | ||||||||||||||||||||
| Average loan portfolio (in millions) | $ | 7,908 | $ | 7,629 | $ | 6,689 | ||||||||||||||
| Average assets (in millions) | $ | 9,916 | $ | 9,704 | $ | 8,720 | ||||||||||||||
| Average deposits (in millions) | $ | 8,419 | $ | 8,414 | $ | 7,625 | ||||||||||||||
Gross dollar volume (GDV) of prepaid, debit and credit cards (in millions)(4) | $ | 54,328 | $ | 53,453 | $ | 44,038 | ||||||||||||||
____________________
(1)Adjusted net income and Core earnings per share (EPS) are financial measures that are not in accordance with U.S. generally accepted accounting principles (GAAP). The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most comparable GAAP estimates without unreasonable efforts because we are unable to predict, forecast or determine the probable significance of the items impacting these estimates with a reasonable degree of accuracy. See “Non-GAAP Financial Measures” section at the end of the document for a description of these measures.
1
(2)The 2026 guidance discussed in 2Q 2026 on a GAAP basis is consistent with the Core EPS range that would have been provided at that time.
(3)Annualized
(4)Represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.
GAAP results presented above are impacted by certain items that are excluded from Core results. Below is a summary of those items:
| (in thousands, except per share amounts) | 3Q 2026 | 2Q 2026 | 3Q 2025 | ||||||||||||||||||||||||||||||||||||||
| Total | Per share (after tax)(1) | Total | Per share (after tax)(1) | Total | Per share (after tax)(1) | ||||||||||||||||||||||||||||||||||||
| Restructuring costs | $ | 4,276 | (2) | $ | 0.08 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
| Legal settlement | 1,900 | (2) | 0.04 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) - Tax credits recognized related to prior periods | (7,284) | (0.18) | — | — | — | — | |||||||||||||||||||||||||||||||||||
__________
(1)See “Non-GAAP Financial Measures” section at the end of the document for a detailed description of these metrics and a reconciliation to the closest equivalent GAAP metric.
(2)Pre-tax
Non-interest expense for 3Q 2026 includes $4.3 million of costs related to the restructuring of our Small Business Lending business line and other departmental reductions, and $1.9 million related to an accrual for the estimated cost of a legal settlement.
In 3Q 2026, as part of our tax strategies, we purchased transferable tax credits to reduce our cash tax obligation for 2026 and certain eligible prior years. Our 3Q 2026 income tax expense includes $10.3 million of total benefits related to transferable investment tax credits, of which $3.0 million relates to 2026 taxes and $7.3 million is considered non-core as it relates to the carryback of credits to prior periods.
Our Adjusted net income(1) excludes the aforementioned items and totaled $60.4 million for 3Q 2026, compared to $54.9 million at 3Q 2025, a 9.9% increase, and level with $60.7 million at 2Q 2026.
Non-GAAP results and performance metrics are as follows:
| (Dollars in thousands except per share data) | 3Q 2026 | 2Q 2026 | 3Q 2025 | |||||||||||||||||
| Non-GAAP Results and Metrics: | ||||||||||||||||||||
Adjusted net income(1) | $ | 60,375 | $ | 60,656 | $ | 54,927 | ||||||||||||||
Core earnings per share - diluted(1) | $ | 1.47 | $ | 1.45 | $ | 1.18 | ||||||||||||||
Core non-interest expense(1) | $ | 57,353 | $ | 56,476 | $ | 56,404 | ||||||||||||||
Core income tax expense(1) | $ | 17,525 | $ | 20,285 | $ | 18,228 | ||||||||||||||
Core efficiency ratio(1) | 42.2 | % | 41.0 | % | 41.8 | % | ||||||||||||||
Core return on assets(1) | 2.42 | % | 2.51 | % | 2.50 | % | ||||||||||||||
Core return on equity(1) | 34.7 | % | 34.7 | % | 26.6 | % | ||||||||||||||
__________
(1)See “Non-GAAP Financial Measures” section at the end of the document for a detailed description of these metrics and a reconciliation to the closest equivalent GAAP metric.
Earnings Release Conference Call
Management will conduct a conference call to review third quarter of 2026 results at 8:00 AM ET on Friday, October 30, 2026. Interested parties may access the live conference call by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or by dialing 1.833.461.5787 and entering Conference ID 899117712.
For those who cannot access the live broadcast, the replay will be available following the live call via webcast on The Bancorp’s website or by visiting https://events.q4inc.com/attendee/899117712.
2
Third Quarter 2026 Highlights:
•Net interest margin of 3.75% compared to 4.45% for 3Q 2025 and 3.85% at 2Q 2026.
•Ending Loans, net of deferred fees and costs of $7.26 billion compared to $6.67 billion at 3Q 2025, an 8.8% increase, and $7.07 billion at 2Q 2026, a 2.6% increase (not annualized).
•Ending Fintech loans of $936.6 million, or 12.7% of total loans, a 19.3% increase from $785.0 million at 3Q 2025 and a 3.9% increase (not annualized) from $901.5 million at 2Q 2026. Average Fintech loans of $1.55 billion, a $906.7 million increase, or 141.4%, from 3Q 2025, and a $156.9 million increase, or 11.3% (not annualized), compared to 2Q 2026.
•Average deposits of $8.42 billion increased $794.2 million, or 10.4% from 3Q 2025 and were relatively consistent with $8.41 billion in 2Q 2026. The average cost of deposits was 1.72% compared to 2.04% for 3Q 2025 and 1.63% in 2Q 2026.
•GDV, representing the total amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A., totaled $54.33 billion, an increase of $10.29 billion, or 23.4%, compared to $44.04 billion in 3Q 2025 and an increase of $875.6 million, or 1.6% (not annualized), compared to 2Q 2026.
•Consumer credit fees from Fintech loans of $7.7 million, a 72.0% increase compared to $4.5 million in 3Q 2025 and an 18.1% increase from $6.5 million in 2Q 2026.
•Total prepaid, debit card, ACH, and other payment fees of $34.1 million, an 11.4% increase from $30.6 million in 3Q 2025, and relatively consistent with $34.3 million in 2Q 2026.
•Share repurchases of $50.0 million for 822,229 shares, or 2.0% of issued and outstanding shares, at an average cost of $60.81.
3
Third Quarter 2026 Discussion of Financial Results:
Loan Portfolio
The following table summarizes the total loan portfolio at September 30, 2026 compared to prior periods:
| (in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||||||||
| Mix | Mix | Mix | ||||||||||||||||||||||||
| Loans, at amortized cost: | ||||||||||||||||||||||||||
| Real estate bridge lending | $ | 2,427,108 | 33.0 | % | $ | 2,233,688 | 31.1 | % | $ | 2,131,689 | 31.3 | % | ||||||||||||||
| SBLOC / IBLOC | 1,830,690 | 24.9 | % | 1,825,301 | 25.4 | % | 1,609,047 | 23.6 | % | |||||||||||||||||
| Small business loans | 1,063,143 | 14.4 | % | 1,034,264 | 14.4 | % | 987,071 | 14.5 | % | |||||||||||||||||
| Fintech | 936,577 | 12.7 | % | 901,502 | 12.5 | % | 785,045 | 11.5 | % | |||||||||||||||||
| Direct lease financing | 641,008 | 8.7 | % | 670,902 | 9.3 | % | 693,322 | 10.2 | % | |||||||||||||||||
| Advisor financing | 196,858 | 2.7 | % | 240,049 | 3.3 | % | 285,531 | 4.2 | % | |||||||||||||||||
| Other loans | 147,799 | 2.0 | % | 152,604 | 2.3 | % | 164,487 | 2.4 | % | |||||||||||||||||
| Total loans | 7,243,183 | 98.4 | % | 7,058,310 | 98.3 | % | 6,656,192 | 97.7 | % | |||||||||||||||||
| Unamortized loan fees and costs | 14,466 | 0.2 | % | 15,596 | 0.2 | % | 16,445 | 0.2 | % | |||||||||||||||||
| Loans, net of deferred fees and costs | $ | 7,257,649 | 98.6 | % | $ | 7,073,906 | 98.5 | % | $ | 6,672,637 | 97.9 | % | ||||||||||||||
| Loans, at fair value: | ||||||||||||||||||||||||||
| SBLs, at fair value | $ | 52,198 | 0.7 | % | $ | 60,617 | 0.8 | % | $ | 71,829 | 1.1 | % | ||||||||||||||
| Real estate bridge loans (non-SBA), at fair value | 53,730 | 0.7 | % | 53,545 | 0.7 | % | 70,829 | 1.0 | % | |||||||||||||||||
| Total commercial loans, at fair value | $ | 105,928 | 1.4 | % | $ | 114,162 | 1.5 | % | $ | 142,658 | 2.1 | % | ||||||||||||||
| Total loan portfolio | $ | 7,363,577 | 100.0 | % | $ | 7,188,068 | 100.0 | % | $ | 6,815,295 | 100.0 | % | ||||||||||||||
As of September 30, 2026, Loans, net of deferred fees and costs were $7.26 billion, an 8.8% increase compared to $6.67 billion at September 30, 2025 and a 2.6% increase (not annualized) from $7.07 billion at June 30, 2026. The $585.0 million increase in Loans, net from September 30, 2025 was primarily driven by growth in REBL of $295.4 million, a $221.6 million increase in SBLOC/IBLOC, and an increase in Fintech loan growth of $151.5 million.
Fintech loans of $936.6 million include $259.8 million from secured credit card accounts and $676.8 million from short-term liquidity products, and account for 12.7% of the total loan portfolio. Secured credit card accounts are backed by cash collateral provided 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 a partner provides financial protection against consumer credit losses. We maintain cash collateral balances from our Fintech partners equivalent to the expected losses on dollars already lent, and have setoff rights related to other revenues generated through those relationships.
Average Fintech loans were $1.55 billion, a $906.7 million increase, or 141% from 3Q 2025, and an increase of $156.9 million, or 11% (not annualized), compared to 2Q 2026, continuing the strategic shift of the balance sheet towards sponsored lending.
4
Deposits & Liquidity
Average deposits for 3Q 2026 were $8.42 billion, a 10.4% increase from $7.63 billion in 3Q 2025, and relatively consistent with $8.41 billion in 2Q 2026. The increase from 3Q 2025 was primarily driven by continued growth in deposits sourced from our Fintech relationships.
The average interest rate on deposits for 3Q 2026 was 1.72%, a 32-basis point decrease compared to 3Q 2025, and a 9-basis point increase compared to 2Q 2026. The fluctuation from 3Q 2025 is driven by the mix of deposits and the short-term interest rate environment.
Our Fintech partnerships generate 96% of our total deposits, and such deposits are primarily low balance, insured deposits, and accordingly, do not constitute the same liquidity risk experienced by traditional branch deposit franchises. As of September 30, 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 September 30, 2026, we had $877.8 million 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 $744.7 million as of September 30, 2025 and $1.12 billion as of June 30, 2026.
We maintain secured borrowing lines of credit with the Federal Reserve Bank and Federal Home Loan Bank that are collateralized by pledged loans and investment securities. As of September 30, 2026, we had $1.11 billion of short-term borrowings under these facilities, which averaged $511.3 million for 3Q 2026, an increase from $45.1 million average balance for 3Q 2025. Based on the current amount of loans and securities pledged, there was $3.45 billion of additional available capacity at September 30, 2026.
Net Interest Income and Net Interest Margin
Net interest income was $90.1 million for 3Q 2026, a decrease compared to $94.2 million for 3Q 2025 and relatively consistent with $90.5 million for 2Q 2026.
The $4.1 million decrease compared to 3Q 2025 reflects $3.3 million higher interest cost for deposits and liabilities and $0.8 million lower interest income. The higher interest cost includes $1.4 million higher interest cost from senior debt issuance in August 2025, given the higher rate and upsizing. In addition, short term borrowing interest increased $4.6 million while deposit interest decreased $2.7 million, reflecting higher short term borrowings to fund new loans, our increased total funding requirement from higher average loan balances, partially offset by lower rates compared to the prior year quarter. The remaining decrease in net interest income was primarily driven by the shift of our portfolio mix to more Fintech loans for which we primarily earn fee income.
Net interest margin was 3.75% for 3Q 2026, compared to 4.45% for 3Q 2025 and 3.85% for 2Q 2026. The decline from 3Q 2025 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.
5
Credit Quality
| (dollars in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||
| For the three months ended: | ||||||||||||||||||||
| Provision for credit losses: | ||||||||||||||||||||
| Fintech | $ | 39,997 | $ | 25,766 | $ | 39,790 | ||||||||||||||
| Non-fintech | 655 | 365 | 5,755 | |||||||||||||||||
| Unfunded commitments | (21) | (42) | (491) | |||||||||||||||||
| Provision for credit losses, total | $ | 40,631 | $ | 26,089 | $ | 45,054 | ||||||||||||||
| Net charge-offs: | ||||||||||||||||||||
| Fintech | $ | 39,523 | $ | 24,802 | $ | 37,454 | ||||||||||||||
| Non-fintech | 1,141 | 851 | 3,332 | |||||||||||||||||
| Total net charge-offs | $ | 40,664 | $ | 25,653 | $ | 40,786 | ||||||||||||||
| As of period end: | ||||||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||
| Fintech | $ | 31,207 | $ | 30,733 | $ | 29,318 | ||||||||||||||
| Non-fintech | 32,276 | 32,762 | 34,834 | |||||||||||||||||
| Total allowance for credit losses | $ | 63,483 | $ | 63,495 | $ | 64,152 | ||||||||||||||
| Criticized Assets | $ | 166,533 | $ | 146,665 | $ | 268,690 | ||||||||||||||
Total provision, including provision for Fintech loans that are supported by credit enhancements, was $40.6 million in 3Q 2026, a $4.5 million decrease from $45.1 million in 3Q 2025 and a $14.5 million increase compared to $26.1 million in 2Q 2026. For Non-fintech loans, provision was $0.7 million in 3Q 2026, compared to $5.8 million in 3Q 2025 and $0.4 million in 2Q 2026. Non-fintech provision in 3Q 2025 was elevated driven by estimated losses for the direct leasing portfolio. Fintech loan provision was $40.0 million in 3Q 2026, compared to $39.8 million in 3Q 2025 and $25.8 million in 2Q 2026, driven by the relative charge-off levels in the respective periods.
Total net charge-offs, including Fintech loans which are supported by credit enhancements, were $40.7 million for 3Q 2026, relatively consistent with $40.8 million for 3Q 2025 and an increase from $25.7 million for 2Q 2026, resulting in ratios of total net charge-offs to average loans of 2.09%, 2.50% and 1.37% for the respective periods (annualized). For Non-fintech loans, net charge-offs were $1.1 million for 3Q 2026, compared to $3.3 million for 3Q 2025 and $0.9 million for 2Q 2026, resulting in ratios of non-fintech net charge-offs to non-fintech average loans of 0.07%, 0.23% and 0.06% for each of the respective periods (annualized). The elevated charge-offs in 3Q 2025 were due to credit performance in the leasing portfolio. Fintech net charge-offs were $39.5 million for 3Q 2026, compared to $37.5 million for 3Q 2025 and $24.8 million for 2Q 2026, resulting in ratios of Fintech net charge-offs to Fintech average loans of 10.21%, 23.37%, and 7.13% for each of the respective periods (annualized).
Total allowance for credit losses was $63.5 million, a slight decrease from $64.2 million at the end of 3Q 2025 and relatively consistent with $63.5 million at the end of 2Q 2026, resulting in total coverage of 0.87%, 0.96% and 0.90% at the end of the respective periods. Non-fintech allowance was $32.3 million, a slight decrease from $34.8 million at the end of 3Q 2025, and relatively consistent with $32.8 million at the end of 2Q 2026, resulting in non-fintech coverage of 0.51%, 0.59% and 0.53% at the end of the respective periods. Fintech allowance was $31.2 million, an increase from $29.3 million at the end of 3Q 2025 and a slight increase from $30.7 million at the end of 2Q 2026, resulting in Fintech coverage of 3.33%, 3.73%, and 3.41% at the end of the respective periods. The decrease in Fintech coverage from 3Q 2025 primarily reflects improved performance of those loans.
Ending total criticized loans of $166.5 million, a significant decrease from $268.7 million at 3Q 2025, and a 14% increase from $146.7 million at the end of 2Q 2026. The $102.2 million decrease from 3Q 2025 was primarily driven by a $121.3 million decrease in criticized REBL partially offset by a $22.7 million increase in small business loans. The $19.9 million increase from 2Q 2026 was primarily driven by a $17.8 million increase in criticized REBL loans. In October 2026, $27.6 million of the REBL criticized loans were recapitalized with new counterparties.
6
Non-Interest Income
The following table summarizes our non-interest income and related metrics:
| (dollars in thousands) | 3Q 2026 | 2Q 2026 | 3Q 2025 | |||||||||||||||||
| Total fintech fees | $ | 41,819 | $ | 40,894 | $ | 35,083 | ||||||||||||||
| Fintech loan credit enhancement | 39,997 | 25,766 | 39,790 | |||||||||||||||||
| Other non-interest income | 4,001 | 6,380 | 5,543 | |||||||||||||||||
| Total non-interest income | $ | 85,817 | $ | 73,040 | $ | 80,416 | ||||||||||||||
| Metrics: | ||||||||||||||||||||
| Non-interest income as a percentage of total revenue | 48.8 | % | 44.7 | % | 46.1 | % | ||||||||||||||
Core non-interest income as a percentage of total revenue (Non-GAAP)(1) | 33.7 | % | 34.3 | % | 30.1 | % | ||||||||||||||
| Fintech fees as a percentage of total revenue | 23.8 | % | 25.0 | % | 20.1 | % | ||||||||||||||
Core fintech fees as a percentage of total revenue (Non-GAAP)(1) | 30.8 | % | 29.7 | % | 26.0 | % | ||||||||||||||
Total non-interest income for 3Q 2026 was $85.8 million, which includes $40.0 million of credit enhancement income compared to $80.4 million in 3Q 2025 which includes $39.8 million of credit enhancement income and $73.0 million in 2Q 2026, which includes $25.8 million of credit enhancement income.
Total fintech fees for 3Q 2026 were $41.8 million, a $6.7 million increase, or 19.2%, compared to 3Q 2025, and a $0.9 million increase or 2.3% (not annualized), compared to 2Q 2026. The increase in total fintech fees was driven by organic volume growth with existing partners and products, and our focus on expanding our Fintech business.
Other non-interest income was $4.0 million, a $1.5 million decrease compared to 3Q 2025 and a $2.4 million decrease compared to 2Q 2026. The elevated other income for 3Q 2025 is primarily driven by $2.3 million from the forfeiture of an earnest money deposit for a terminated OREO sale agreement in 3Q 2025 and the elevated other income for 2Q 2026 is primarily driven by higher other fee income from loans.
Core non-interest income as a percentage of total revenue,(1) was 33.7% compared to 30.1% in 3Q 2025 and 34.3% in 2Q 2026. Core fintech fees as a percentage of total revenue,(1) were 30.8% compared to 26.0% in 3Q 2025 and 29.7% in 2Q 2026.
Non-Interest Expense
Total non-interest expense of $63.5 million increased $7.1 million from 3Q 2025 and increased $7.0 million from 2Q 2026. The increases are primarily driven by nonrecurring costs recognized in 3Q 2026, including $4.3 million related to restructuring our SBL business and other departmental reductions, and $1.9 million related to an accrual for the estimated cost of a legal settlement.
Core non-interest expense(1) was $57.4 million, compared to $56.4 million in 3Q 2025 and $56.5 million in 2Q 2026. The slight increase is primarily driven by increased legal costs.
Core efficiency ratio(1) was 42.2% for 3Q 2026, compared to 41.8% for 3Q 2025 and 41.0% for 2Q 2026.
Income Taxes
Income tax expense was $8.9 million for 3Q 2026, $20.3 million for 2Q 2026, and $18.2 million for 3Q 2025. Our effective income tax rate was 12.5% for 3Q 2026, 25.1% for 2Q 2026, and 24.9% for 3Q 2025.
Income tax expense for 3Q 2026 includes $10.3 million of total benefits related to our purchase of transferable tax credits. Of the credits recognized, $3.0 million relates to 2026 activity, and $7.3 million is considered non-core as it relates to carryback of credits to prior periods. We expect to continue to invest in tax credits in future periods, resulting in an estimated annual future effective tax rate of approximately 23.9%, compared to the full year 2025 effective tax rate of 24.7%.
________
(1) See “Non-GAAP Financial Measures” section at the end of the document for a detailed description of these metrics and a reconciliation to the closest equivalent GAAP metric.
7
Capital
The following table summarizes our regulatory capital ratios as of September 30, 2026.
| September 30, 2026 | ||||||||||||||||||||||||||
| The Bancorp, Inc. | The Bancorp Bank, N.A. | “Well Capitalized”(1) | ||||||||||||||||||||||||
| Tier 1 capital to average assets | 7.26 | % | 9.03 | % | 5.00 | % | ||||||||||||||||||||
| Tier 1 capital to risk-weighted assets | 11.37 | % | 14.11 | % | 8.00 | % | ||||||||||||||||||||
| Total capital to risk-weighted assets | 12.39 | % | 15.12 | % | 10.00 | % | ||||||||||||||||||||
| Common equity Tier 1 to risk-weighted assets | 11.37 | % | 14.11 | % | 6.50 | % | ||||||||||||||||||||
________
(1)“Well Capitalized” institution under federal regulations Basel III.
As of September 30, 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 of 9.03%, 14.11%, 15.12%, and 14.11%, respectively, and for the Company of 7.26%, 11.37%, 12.39%, and 11.37%, respectively.
Book value per common share at September 30, 2026 was $16.83, a decrease of $0.65 compared to $17.48 at September 30, 2025. Total shareholders’ equity of $676.8 million decreased by $101.4 million, driven by a decrease of $57.7 million, or $1.43 book value per share, from unrealized losses on our available for sale investment portfolio driven by market rate increases. In addition, the total change in shareholders' equity includes $302.7 million of share repurchases and excise tax, partially offset by $239.8 million of net income and $19.3 million of stock-based compensation. Outstanding shares decreased 4.308 million shares since September 30, 2025, driven primarily by share repurchases.
Book value per common share decreased $0.36 from $17.19 at June 30, 2026. Total shareholders' equity decreased by $28.6 million, driven by a decrease of $59.7 million, or $1.48 book value per share, from unrealized losses on our available for sale investment portfolio driven by market rate increases. The remaining total change in shareholders' equity includes $50.5 million of share repurchases and excise tax, partially offset by $62.8 million of net income.
During 3Q 2026, we repurchased 822,229 shares of our common stock, or 2.0% of issued and outstanding shares, at an average cost of $60.81 per share, for a total capital return of $50.0 million, resulting in ending outstanding shares of 40.221 million.
Year-to-date for 2026, we repurchased 2,535,419 shares of our common stock, or 6.0% of issued and outstanding shares, at an average cost of $59.16 per share, for a total capital return of $150.0 million.
8
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, 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/.
Forward-Looking Statements
Statements in this earnings release regarding The Bancorp’s business that are not historical facts are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “will,” “could,” “continue,” or the negative thereof and similar terms or expressions. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2026, 2027 and 2028 results, including earnings per share accretion, future growth, profitability, productivity and efficiency, our Fintech initiatives and revenue streams, the possible benefits relating to the adoption of AI tools, the impact of organizational restructuring, the amount of charges and savings from the restructuring, including the anticipated annualized run-rate savings, the timing of employee departures and completion of the restructuring, share repurchases, and tax credits. Such forward-looking statements relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.
The Bancorp, Inc. Contact
Dominic C. Canuso, EVP, Chief Financial Officer
(302) 385-5220
dcanuso@thebancorp.com
Source: The Bancorp, Inc.
9
THE BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)
| CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net interest income | $ | 90,067 | $ | 94,197 | $ | 269,347 | $ | 283,432 | |||||||||||||||
| Provision (reversal) for credit losses on non-fintech loans | 655 | 5,755 | (328) | 8,123 | |||||||||||||||||||
| Provision for credit losses on Fintech loans | 39,997 | 39,790 | 94,606 | 128,891 | |||||||||||||||||||
| Provision (reversal) for unfunded commitments | (21) | (491) | 43 | (744) | |||||||||||||||||||
| Provision for credit losses, total | 40,631 | 45,054 | 94,321 | 136,270 | |||||||||||||||||||
| Net interest income after provision for credit losses | 49,436 | 49,143 | 175,026 | 147,162 | |||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Fintech fees | |||||||||||||||||||||||
| ACH, card, and other payment fees | 6,104 | 5,077 | 18,459 | 15,771 | |||||||||||||||||||
| Prepaid, debit card and related fees | 27,988 | 25,513 | 82,455 | 77,340 | |||||||||||||||||||
| Consumer credit Fintech fees | 7,727 | 4,493 | 19,868 | 12,063 | |||||||||||||||||||
| Total fintech fees | 41,819 | 35,083 | 120,782 | 105,174 | |||||||||||||||||||
| Net realized and unrealized gains on commercial loans, at fair value | (32) | 1,005 | 104 | 1,710 | |||||||||||||||||||
| Leasing related income | 1,756 | 1,397 | 5,430 | 5,500 | |||||||||||||||||||
| Fintech loan credit enhancement | 39,997 | 39,790 | 94,606 | 128,891 | |||||||||||||||||||
| Other non-interest income | 2,277 | 3,141 | 10,460 | 6,526 | |||||||||||||||||||
| Total non-interest income | 85,817 | 80,416 | 231,382 | 247,801 | |||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Salaries and employee benefits | 36,124 | 37,350 | 110,102 | 108,153 | |||||||||||||||||||
| Restructuring costs | 4,276 | — | 5,201 | — | |||||||||||||||||||
| Data processing expense | 1,427 | 1,259 | 4,123 | 3,691 | |||||||||||||||||||
| Legal expense | 2,138 | 1,483 | 4,949 | 5,303 | |||||||||||||||||||
| Legal settlement (reimbursement) | 1,900 | — | (100) | — | |||||||||||||||||||
| FDIC insurance | 1,709 | 905 | 4,066 | 3,160 | |||||||||||||||||||
| Software | 5,982 | 5,040 | 16,983 | 15,197 | |||||||||||||||||||
| Other non-interest expense | 9,973 | 10,367 | 29,707 | 31,417 | |||||||||||||||||||
| Total non-interest expense | 63,529 | 56,404 | 175,031 | 166,921 | |||||||||||||||||||
| Income before income taxes | 71,724 | 73,155 | 231,377 | 228,042 | |||||||||||||||||||
| Income tax expense | 8,944 | 18,228 | 47,872 | 56,121 | |||||||||||||||||||
| Net income | $ | 62,780 | $ | 54,927 | $ | 183,505 | $ | 171,921 | |||||||||||||||
| Earnings per share - basic | $ | 1.54 | $ | 1.20 | $ | 4.43 | $ | 3.69 | |||||||||||||||
| Earnings per share - diluted | $ | 1.53 | $ | 1.18 | $ | 4.39 | $ | 3.64 | |||||||||||||||
| Weighted average shares - basic | 40,685,458 | 45,865,172 | 41,421,579 | 46,554,311 | |||||||||||||||||||
| Weighted average shares - diluted | 41,149,490 | 46,518,125 | 41,834,133 | 47,209,469 | |||||||||||||||||||
10
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Cash and due from banks | $ | 17,500 | $ | 9,527 | $ | 8,038 | $ | 10,162 | |||||||||||||||
| Interest-earning deposits | 70,857 | 70,556 | 104,611 | 74,517 | |||||||||||||||||||
| Total cash and cash equivalents | 88,357 | 80,083 | 112,649 | 84,679 | |||||||||||||||||||
| Investment securities, available-for-sale, at fair value | 1,523,501 | 1,614,890 | 1,671,750 | 1,384,256 | |||||||||||||||||||
| Commercial loans, at fair value | 105,928 | 114,162 | 139,389 | 142,658 | |||||||||||||||||||
| Loans, net of deferred fees and costs | 7,257,649 | 7,073,906 | 7,116,676 | 6,672,637 | |||||||||||||||||||
| Allowance for credit losses | (63,483) | (63,495) | (66,200) | (64,152) | |||||||||||||||||||
| Loans, net | 7,194,166 | 7,010,411 | 7,050,476 | 6,608,485 | |||||||||||||||||||
| Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks | 66,585 | 50,115 | 25,205 | 25,250 | |||||||||||||||||||
| Accrued interest receivable | 46,623 | 43,342 | 43,090 | 43,831 | |||||||||||||||||||
| Other real estate owned | 70,734 | 62,011 | 60,695 | 61,974 | |||||||||||||||||||
| Deferred tax asset, net | 38,585 | 23,491 | 18,679 | 10,034 | |||||||||||||||||||
| Credit enhancement asset | 31,207 | 30,733 | 31,138 | 29,318 | |||||||||||||||||||
| Other | 260,352 | 186,739 | 199,354 | 208,939 | |||||||||||||||||||
| Total assets | $ | 9,426,038 | $ | 9,215,977 | $ | 9,352,425 | $ | 8,599,424 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Demand and interest checking | $ | 7,257,924 | $ | 7,353,151 | $ | 7,827,037 | $ | 7,254,896 | |||||||||||||||
| Savings and money market | 79,583 | 123,051 | 338,459 | 75,901 | |||||||||||||||||||
| Total deposits | 7,337,507 | 7,476,202 | 8,165,496 | 7,330,797 | |||||||||||||||||||
| Short-term borrowings | 1,110,000 | 744,000 | 199,000 | 200,000 | |||||||||||||||||||
| Senior debt | 196,736 | 196,528 | 196,253 | 196,052 | |||||||||||||||||||
| Subordinated debenture | 13,401 | 13,401 | 13,401 | 13,401 | |||||||||||||||||||
| Other long-term borrowings | 4,298 | 4,327 | 13,712 | 13,806 | |||||||||||||||||||
| Other liabilities | 87,303 | 76,138 | 74,767 | 67,206 | |||||||||||||||||||
| Total liabilities | 8,749,245 | 8,510,596 | 8,662,629 | 7,821,262 | |||||||||||||||||||
| Total shareholders' equity | 676,793 | 705,381 | 689,796 | 778,162 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 9,426,038 | $ | 9,215,977 | $ | 9,352,425 | $ | 8,599,424 | |||||||||||||||
11
| AVERAGE BALANCE SHEET - QTD | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2026 | Three months ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Non-fintech loans | $ | 6,360,234 | $ | 110,241 | 6.93 | % | $ | 6,048,270 | $ | 113,907 | 7.53 | % | |||||||||||||||||||||||
Fintech loans(1) | 1,547,735 | 4,202 | 1.09 | % | 641,026 | 1,075 | 0.67 | % | |||||||||||||||||||||||||||
Loans, total(2) | 7,907,969 | 114,443 | 5.79 | % | 6,689,296 | 114,982 | 6.88 | % | |||||||||||||||||||||||||||
Investment securities | 1,588,403 | 20,065 | 5.05 | % | 1,426,443 | 17,458 | 4.90 | % | |||||||||||||||||||||||||||
| Interest-earning deposits | 100,918 | 1,042 | 4.13 | % | 354,991 | 3,954 | 4.46 | % | |||||||||||||||||||||||||||
| Total interest-earning assets | 9,597,290 | 135,550 | 5.65 | % | 8,470,730 | 136,394 | 6.44 | % | |||||||||||||||||||||||||||
| Allowance for credit losses | (52,589) | (59,166) | |||||||||||||||||||||||||||||||||
| Other assets | 371,601 | 308,654 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 9,916,302 | $ | 8,720,218 | |||||||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||
| Demand and interest checking | $ | 8,336,415 | $ | 35,365 | 1.70 | % | $ | 7,560,744 | $ | 38,233 | 2.02 | % | |||||||||||||||||||||||
| Savings and money market | 83,072 | 777 | 3.74 | % | 64,529 | 563 | 3.49 | % | |||||||||||||||||||||||||||
| Total deposits | 8,419,487 | 36,142 | 1.72 | % | 7,625,273 | 38,796 | 2.04 | % | |||||||||||||||||||||||||||
| Short-term borrowings | 511,321 | 5,135 | 4.02 | % | 45,067 | 495 | 4.39 | % | |||||||||||||||||||||||||||
| Long-term borrowings | 4,316 | 74 | 6.86 | % | 13,866 | 197 | 5.68 | % | |||||||||||||||||||||||||||
| Subordinated debentures | 13,401 | 237 | 7.07 | % | 13,401 | 259 | 7.73 | % | |||||||||||||||||||||||||||
| Senior debt | 196,599 | 3,895 | 7.92 | % | 140,992 | 2,450 | 6.95 | % | |||||||||||||||||||||||||||
| Total deposits and liabilities | 9,145,124 | 45,483 | 1.99 | % | 7,838,599 | 42,197 | 2.15 | % | |||||||||||||||||||||||||||
| Other liabilities | 80,091 | 62,405 | |||||||||||||||||||||||||||||||||
| Total liabilities | 9,225,215 | 7,901,004 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 691,087 | 819,214 | |||||||||||||||||||||||||||||||||
| $ | 9,916,302 | $ | 8,720,218 | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 90,067 | $ | 94,197 | |||||||||||||||||||||||||||||||
Net interest margin | 3.75 | % | 4.45 | % | |||||||||||||||||||||||||||||||
________
(1)Income related to non-interest bearing fintech loans is included in non-interest income.
(2)Loans, total includes Commercial loans, at fair value and Loans, net of deferred loan fees and costs. Non-accrual loans are included in the Average balance.
12
| AVERAGE BALANCE SHEET - YTD | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2026 | Nine months ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Non-fintech loans | $ | 6,246,850 | $ | 323,709 | 6.91 | % | $ | 6,000,321 | $ | 334,419 | 7.43 | % | |||||||||||||||||||||||
Fintech loans (1) | 1,352,831 | 8,862 | 0.87 | % | 548,909 | 1,801 | 0.44 | % | |||||||||||||||||||||||||||
Loans, total (2) | 7,599,681 | 332,571 | 5.83 | % | 6,549,230 | 336,220 | 6.84 | % | |||||||||||||||||||||||||||
Investment securities | 1,630,893 | 60,195 | 4.92 | % | 1,464,085 | 58,164 | 5.30 | % | |||||||||||||||||||||||||||
| Interest-earning deposits | 168,254 | 4,624 | 3.66 | % | 746,470 | 24,960 | 4.46 | % | |||||||||||||||||||||||||||
| Total interest-earning assets | 9,398,828 | 397,390 | 5.64 | % | 8,759,785 | 419,344 | 6.38 | % | |||||||||||||||||||||||||||
| Allowance for credit losses | (54,639) | (52,227) | |||||||||||||||||||||||||||||||||
| Other assets | 375,759 | 341,661 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 9,719,948 | $ | 9,049,219 | |||||||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||
| Demand and interest checking | $ | 8,246,396 | $ | 101,975 | 1.65 | % | $ | 7,906,597 | $ | 126,680 | 2.14 | % | |||||||||||||||||||||||
| Savings and money market | 137,360 | 3,790 | 3.68 | % | 88,687 | 2,454 | 3.69 | % | |||||||||||||||||||||||||||
| Total deposits | 8,383,756 | 105,765 | 1.68 | % | 7,995,284 | 129,134 | 2.15 | % | |||||||||||||||||||||||||||
| Short-term borrowings | 321,152 | 9,465 | 3.93 | % | 15,334 | 500 | 4.35 | % | |||||||||||||||||||||||||||
| Long-term borrowings | 9,349 | 418 | 5.96 | % | 13,957 | 590 | 5.64 | % | |||||||||||||||||||||||||||
| Subordinated debentures | 13,401 | 708 | 7.04 | % | 13,401 | 771 | 7.67 | % | |||||||||||||||||||||||||||
| Senior debt | 196,399 | 11,687 | 7.93 | % | 111,354 | 4,917 | 5.89 | % | |||||||||||||||||||||||||||
| Total deposits and liabilities | 8,924,057 | 128,043 | 1.91 | % | 8,149,330 | 135,912 | 2.22 | % | |||||||||||||||||||||||||||
| Other liabilities | 112,596 | 115,916 | |||||||||||||||||||||||||||||||||
| Total liabilities | 9,036,653 | 8,265,246 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 683,295 | 783,973 | |||||||||||||||||||||||||||||||||
| $ | 9,719,948 | $ | 9,049,219 | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 269,347 | $ | 283,432 | |||||||||||||||||||||||||||||||
Net interest margin | 3.82 | % | 4.32 | % | |||||||||||||||||||||||||||||||
________
(1)Income related to non-interest bearing fintech loans is included in non-interest income.
(2)Loans, total includes Commercial loans, at fair value and Loans, net of deferred loan fees and costs. Non-accrual loans are included in the Average balance.
13
| BUSINESS LINE QUARTERLY SUMMARY - AVERAGE QTD | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||||||||||
| Average Balance | Average Rate (2) | Average Balance | Average Rate (2) | Average Balance | Average Rate (2) | ||||||||||||||||||||||||||||||||||||
Total Loan Portfolio (1) | |||||||||||||||||||||||||||||||||||||||||
| Credit Solutions: | |||||||||||||||||||||||||||||||||||||||||
| Real estate bridge loans | $ | 2,380,541 | 7.60% | $ | 2,284,810 | 7.66% | $ | 2,236,827 | 8.35% | ||||||||||||||||||||||||||||||||
| SBLOC/IBLOC and Advisor financing | 2,049,856 | 5.76% | 2,034,126 | 5.72% | 1,881,334 | 6.49% | |||||||||||||||||||||||||||||||||||
| Small business lending | 1,102,354 | 7.37% | 1,075,470 | 7.21% | 1,042,929 | 7.72% | |||||||||||||||||||||||||||||||||||
| Direct lease financing | 662,686 | 7.95% | 675,230 | 8.00% | 699,387 | 8.06% | |||||||||||||||||||||||||||||||||||
| Other loans | 150,327 | 5.37% | 152,964 | 5.31% | 172,226 | 5.75% | |||||||||||||||||||||||||||||||||||
| Unamortized loan fees and costs | 14,470 | — | 15,442 | — | 15,567 | — | |||||||||||||||||||||||||||||||||||
| Total Credit Solutions | 6,360,234 | 6.93% | 6,238,042 | 6.91% | 6,048,270 | 7.53% | |||||||||||||||||||||||||||||||||||
| Sponsored Lending: | |||||||||||||||||||||||||||||||||||||||||
Fintech loans (3) | 1,547,735 | 1.09% | 1,390,866 | 0.82% | 641,026 | 0.67% | |||||||||||||||||||||||||||||||||||
| Total loan portfolio | $ | 7,907,969 | 5.79% | $ | 7,628,908 | 5.80% | $ | 6,689,296 | 6.88% | ||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||||||||
| Fintech | $ | 8,114,725 | 1.72% | $ | 8,085,670 | 1.63% | $ | 7,341,949 | 2.05% | ||||||||||||||||||||||||||||||||
| Non-fintech | 304,762 | 1.68% | 328,322 | 1.75% | 283,324 | 1.60% | |||||||||||||||||||||||||||||||||||
| Total deposits | $ | 8,419,487 | 1.72% | $ | 8,413,992 | 1.63% | $ | 7,625,273 | 2.04% | ||||||||||||||||||||||||||||||||
______________
(1)Total loan portfolio includes both loans recorded at amortized cost and loans at fair value.
(2)Rates are average annualized rates.
(3)Income related to non-interest-bearing loans is included in non-interest income.
14
| PORTFOLIO PERFORMANCE | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
Credit Quality
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||
Net charge-offs/average loans (annualized)(1) | ||||||||||||||||||||
| Fintech | 10.21 | % | 7.13 | % | 23.37 | % | ||||||||||||||
| Non-fintech | 0.07 | % | 0.06 | % | 0.23 | % | ||||||||||||||
| Total | 2.09 | % | 1.37 | % | 2.50 | % | ||||||||||||||
| Net charge-offs/average assets (annualized) | 1.64 | % | 1.06 | % | 1.87 | % | ||||||||||||||
| As of period end: | ||||||||||||||||||||
Nonperforming loans to total loans(1) | 0.89 | % | 1.05 | % | 1.35 | % | ||||||||||||||
| Nonperforming assets to total assets | 1.44 | % | 1.48 | % | 1.77 | % | ||||||||||||||
Allowance for credit losses to loans outstanding:(1) | ||||||||||||||||||||
| Fintech | 3.33 | % | 3.41 | % | 3.73 | % | ||||||||||||||
| Non-fintech | 0.51 | % | 0.53 | % | 0.59 | % | ||||||||||||||
| Total | 0.87 | % | 0.90 | % | 0.96 | % | ||||||||||||||
| Allowance for credit losses to total assets | 0.67 | % | 0.69 | % | 0.75 | % | ||||||||||||||
_____________
(1) Excludes loans recorded at fair value.
Loan Delinquency and Non-Accrual
| September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Past Due | |||||||||||||||||||||||||||||||||||||||||
| 30-59 days past due | 60-89 days past due | 90+ days still accruing | Non-accrual | Total past due | Current | Total loans | |||||||||||||||||||||||||||||||||||
| Real estate bridge loans | $ | 8,234 | $ | 19,360 | $ | — | $ | 12,700 | $ | 40,294 | $ | 2,386,814 | $ | 2,427,108 | |||||||||||||||||||||||||||
| SBLOC / IBLOC | 5,480 | 1,268 | — | — | 6,748 | 1,823,942 | 1,830,690 | ||||||||||||||||||||||||||||||||||
| Small business loans | 7,018 | 2,126 | 85 | 37,815 | 47,044 | 1,016,099 | 1,063,143 | ||||||||||||||||||||||||||||||||||
| Fintech | 32,280 | 8,888 | 4,211 | — | 45,379 | 891,198 | 936,577 | ||||||||||||||||||||||||||||||||||
| Direct lease financing | 1,941 | 1,635 | 2,560 | 7,149 | 13,285 | 627,723 | 641,008 | ||||||||||||||||||||||||||||||||||
| Advisor financing | — | — | — | — | — | 196,858 | 196,858 | ||||||||||||||||||||||||||||||||||
| Other loans | 92 | — | — | 248 | 340 | 147,459 | 147,799 | ||||||||||||||||||||||||||||||||||
| Total loans | $ | 55,045 | $ | 33,277 | $ | 6,856 | $ | 57,912 | $ | 153,090 | $ | 7,090,093 | $ | 7,243,183 | |||||||||||||||||||||||||||
15
NON-GAAP FINANCIAL MEASURES | ||
We use certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures are focused on adjusting certain metrics used to measure our performance to exclude the impact of items or events that management believes are not reflective of core operating performance (collectively “Non-core adjustments”). Management uses such non-GAAP financial measures to help evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, and assess our operational efficiencies.
For the periods presented, Non-core adjustments include:
Non-interest income-Fintech loan credit enhancement and Provision for credit losses on fintech loans. These amounts relate to estimated credit losses on the portfolio of fintech loans, and an amount recognized in Non-interest income—Fintech loan credit enhancement for the estimated recovery from a third party under credit enhancement agreements that cover losses from borrowers for fintech loans receivable. The measurement of the estimated credit losses and the estimated recovery from the credit enhancement are based on the same estimate and correlate to like amounts in our statement of operations.
Certain items or events that management believes are not reflective of core operating performance that were recorded in Non-interest expense, including Restructuring costs and Legal settlement (reimbursement).
Income tax benefits related to a one-time adjustment from purchased transferable tax credits that relate to prior tax years.
Non-GAAP measures include:
•Adjusted net income is calculated as: GAAP Net income, plus: (i) pre-tax Non-core adjustments, as defined above; (ii) Income tax expense or benefit related to Non-core adjustments; and (iii) Non-core adjustments to Income tax expense.
•Core earnings per share is calculated as: Adjusted net income (Non-GAAP), divided by weighted-average diluted shares.
•Core revenue is calculated as: the total of GAAP Net interest income and GAAP Non-interest income, less Fintech loan credit enhancement income.
•Core non-interest income is calculated as: GAAP Non-interest-income less Fintech loan credit enhancement income.
•Core non-interest expense is calculated as: GAAP Non-interest expense, less Non-core adjustments from Restructuring costs and Legal settlement (reimbursement).
•Core income tax expense is calculated as: GAAP Income tax expense, less (i) Income tax expense or benefit related to Pre-tax non-core adjustments; and (ii) Non-core adjustments to Income tax expense related to transferable tax credit carryback.
•Core return on assets is calculated as: Adjusted net income (Non-GAAP), divided by Average assets, as reported.
•Core return on equity is calculated as: Adjusted net income (Non-GAAP), divided by Average equity, as reported.
•Core efficiency ratio is calculated as Core non-interest expense (Non-GAAP) divided by Core revenue (Non-GAAP). This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
•Core non-interest income as a percentage of total revenue is calculated as: (i) Core Non-interest-income (Non-GAAP); divided by (ii) Core revenue (Non-GAAP). This ratio is used to compare the amount of non-interest income, which is primarily fee-based, to our total revenue each period to review the growth in our fee-based business.
•Core fintech fees as a percentage of total revenue is calculated as: (i) GAAP Non-interest income – Total fintech fees; divided by (ii) Core revenue (Non-GAAP). This metric is used to review the growth in our fintech business, which is one of our key areas of focus.
We believe that these non-GAAP measures are useful performance metrics for management, investors, and lenders, because they provide a means to evaluate period-to-period comparisons of the Company’s financial performance without the effects of certain adjustments in accordance with GAAP, and unusual, one-time, non-ordinary course items that are not reflective of core operating performance. Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in text or in the tables included or attached to this press release.
The presentation of certain prior period amounts has been updated to conform to current period presentation.
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except share and per share data) | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||
| Adjusted net income: | |||||||||||||||||||||||||||||||||||
| Net income, as reported | $ | 62,780 | $ | 60,656 | $ | 54,927 | $ | 183,505 | $ | 171,921 | |||||||||||||||||||||||||
| Less Non-core adjustments (pre-tax): | |||||||||||||||||||||||||||||||||||
| Fintech loan credit enhancement | (39,997) | (25,766) | (39,790) | (94,606) | (128,891) | ||||||||||||||||||||||||||||||
| Provision for credit losses on fintech loans | 39,997 | 25,766 | 39,790 | 94,606 | 128,891 | ||||||||||||||||||||||||||||||
| Restructuring costs | 4,276 | — | — | 5,201 | — | ||||||||||||||||||||||||||||||
| Legal settlement (reimbursement) | 1,900 | — | — | (100) | — | ||||||||||||||||||||||||||||||
| Pre-tax income, net of Non-core adjustments | $ | 68,956 | $ | 60,656 | $ | 54,927 | $ | 188,606 | $ | 171,921 | |||||||||||||||||||||||||
| Income tax expense on Non-core items | (1,297) | — | — | (1,071) | — | ||||||||||||||||||||||||||||||
| Non-core adjustments to Income tax expense: | |||||||||||||||||||||||||||||||||||
| Transferable tax credits carryback | (7,284) | — | — | (7,284) | — | ||||||||||||||||||||||||||||||
| Adjusted net income (Non-GAAP) | $ | 60,375 | $ | 60,656 | $ | 54,927 | $ | 180,251 | $ | 171,921 | |||||||||||||||||||||||||
| Core earnings per share: | |||||||||||||||||||||||||||||||||||
| Net income per share - diluted - as reported | $ | 1.53 | $ | 1.45 | $ | 1.18 | $ | 4.39 | $ | 3.64 | |||||||||||||||||||||||||
Less impact of Non-core adjustments, per share: (1) | |||||||||||||||||||||||||||||||||||
| Non-core adjustments (pre-tax) | 0.15 | — | — | 0.12 | — | ||||||||||||||||||||||||||||||
| Income tax expense on Non-core items | (0.03) | — | — | (0.03) | — | ||||||||||||||||||||||||||||||
| Non-core adjustments to Income tax expense | (0.18) | — | — | (0.17) | — | ||||||||||||||||||||||||||||||
| Core earnings per share - diluted (Non-GAAP) | $ | 1.47 | $ | 1.45 | $ | 1.18 | $ | 4.31 | $ | 3.64 | |||||||||||||||||||||||||
| Weighted average shares - diluted | 41,149,490 | 41,794,160 | 46,518,125 | 41,834,133 | 47,209,469 | ||||||||||||||||||||||||||||||
| Core revenue | |||||||||||||||||||||||||||||||||||
| Net interest income | $ | 90,067 | $ | 90,466 | $ | 94,197 | $ | 269,347 | $ | 283,432 | |||||||||||||||||||||||||
| Non-interest income | 85,817 | 73,040 | 80,416 | 231,382 | 247,801 | ||||||||||||||||||||||||||||||
| Total revenue | 175,884 | 163,506 | 174,613 | 500,729 | 531,233 | ||||||||||||||||||||||||||||||
| Less Non-core adjustments (pre-tax): | |||||||||||||||||||||||||||||||||||
| Fintech loan credit enhancement | 39,997 | $ | 25,766 | 39,790 | 94,606 | 128,891 | |||||||||||||||||||||||||||||
| Core revenue (Non-GAAP) | $ | 135,887 | $ | 137,740 | $ | 134,823 | $ | 406,123 | $ | 402,342 | |||||||||||||||||||||||||
| Core non-interest income | |||||||||||||||||||||||||||||||||||
| Non-interest income, as reported | $ | 85,817 | $ | 73,040 | $ | 80,416 | $ | 231,382 | $ | 247,801 | |||||||||||||||||||||||||
| Less Non-core adjustments (pre-tax): | |||||||||||||||||||||||||||||||||||
| Fintech loan credit enhancement | 39,997 | 25,766 | 39,790 | 94,606 | 128,891 | ||||||||||||||||||||||||||||||
| Core non-interest income (Non-GAAP) | $ | 45,820 | $ | 47,274 | $ | 40,626 | $ | 136,776 | $ | 118,910 | |||||||||||||||||||||||||
| Core non-interest expense: | |||||||||||||||||||||||||||||||||||
| Non-interest expense, as reported | $ | 63,529 | $ | 56,476 | $ | 56,404 | $ | 175,031 | $ | 166,921 | |||||||||||||||||||||||||
| Less Non-core adjustments (pre-tax): | |||||||||||||||||||||||||||||||||||
| Restructuring costs | 4,276 | — | — | 5,201 | — | ||||||||||||||||||||||||||||||
| Legal settlement (reimbursement) | 1,900 | — | — | (100) | — | ||||||||||||||||||||||||||||||
| Core non-interest expense (Non-GAAP) | $ | 57,353 | $ | 56,476 | $ | 56,404 | $ | 169,930 | $ | 166,921 | |||||||||||||||||||||||||
__________
(1)Non-core adjustments per share include Restructuring costs of $0.08 per share and $0.09 per share, and Legal settlement of $0.04 per share and an immaterial amount per share for the three and nine months ended September 30, 2026, respectively.
| RECONCILIATION OF NON-GAAP MEASURES (continued) | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||
| Core income tax expense: | |||||||||||||||||||||||||||||||||||
| Income tax expense, as reported | $ | 8,944 | $ | 20,285 | $ | 18,228 | $ | 47,872 | $ | 56,121 | |||||||||||||||||||||||||
| Less non-core adjustments: | |||||||||||||||||||||||||||||||||||
| Income tax expense on non-core items | (1,297) | — | — | (1,071) | — | ||||||||||||||||||||||||||||||
| Income tax expense (benefit): Transferable tax credits carryback | (7,284) | — | — | (7,284) | — | ||||||||||||||||||||||||||||||
| Core income tax expense (Non-GAAP) | $ | 17,525 | $ | 20,285 | $ | 18,228 | $ | 56,227 | $ | 56,121 | |||||||||||||||||||||||||
| Return on assets and Return on equity | |||||||||||||||||||||||||||||||||||
| Net income, as reported | $ | 62,780 | $ | 60,656 | $ | 54,927 | $ | 183,505 | $ | 171,921 | |||||||||||||||||||||||||
| Average assets, as reported | $ | 9,916,302 | $ | 9,703,591 | $ | 8,720,218 | $ | 9,719,948 | $ | 9,049,219 | |||||||||||||||||||||||||
| Average equity, as reported | $ | 691,087 | $ | 701,165 | $ | 819,214 | $ | 683,295 | $ | 783,973 | |||||||||||||||||||||||||
Return on assets(1) | 2.51 | % | 2.51 | % | 2.50 | % | 2.52 | % | 2.54 | % | |||||||||||||||||||||||||
Return on equity(1) | 36.0 | % | 34.7 | % | 26.6 | % | 35.9 | % | 29.3 | % | |||||||||||||||||||||||||
| Core return on assets and Core return on equity | |||||||||||||||||||||||||||||||||||
| Adjusted net income (Non-GAAP) | $ | 60,375 | $ | 60,656 | $ | 54,927 | $ | 180,251 | $ | 171,921 | |||||||||||||||||||||||||
| Average assets, as reported | 9,916,302 | 9,703,591 | 8,720,218 | 9,719,948 | 9,049,219 | ||||||||||||||||||||||||||||||
| Average equity, as reported | 691,087 | 701,165 | 819,214 | 683,295 | 783,973 | ||||||||||||||||||||||||||||||
Core return on assets (Non-GAAP)(1) | 2.42 | % | 2.51 | % | 2.50 | % | 2.48 | % | 2.54 | % | |||||||||||||||||||||||||
Core return on equity (Non-GAAP)(1) | 34.7 | % | 34.7 | % | 26.6 | % | 35.3 | % | 29.3 | % | |||||||||||||||||||||||||
| Core efficiency ratio: | |||||||||||||||||||||||||||||||||||
| Core non-interest expense (Non-GAAP) | $ | 57,353 | $ | 56,476 | $ | 56,404 | $ | 169,930 | $ | 166,921 | |||||||||||||||||||||||||
| Core revenue (Non-GAAP) | 135,887 | 137,740 | 134,823 | 406,123 | 402,342 | ||||||||||||||||||||||||||||||
| Core efficiency ratio (Non-GAAP) | 42.2 | % | 41.0 | % | 41.8 | % | 41.8 | % | 41.5 | % | |||||||||||||||||||||||||
| Non-interest income as a percentage of total revenue: | |||||||||||||||||||||||||||||||||||
| Non-interest income | $ | 85,817 | $ | 73,040 | $ | 80,416 | $ | 231,382 | $ | 247,801 | |||||||||||||||||||||||||
| Total revenue | 175,884 | 163,506 | 174,613 | 500,729 | 531,233 | ||||||||||||||||||||||||||||||
| Non-interest income as a percentage of total revenue | 48.8 | % | 44.7 | % | 46.1 | % | 46.2 | % | 46.6 | % | |||||||||||||||||||||||||
| Core non-interest income (Non-GAAP) | $ | 45,820 | $ | 47,274 | $ | 40,626 | $ | 136,776 | $ | 118,910 | |||||||||||||||||||||||||
| Core revenue (Non-GAAP) | 135,887 | 137,740 | 134,823 | 406,123 | 402,342 | ||||||||||||||||||||||||||||||
| Core non-interest income as a percentage of total revenue (Non-GAAP) | 33.7 | % | 34.3 | % | 30.1 | % | 33.7 | % | 29.6 | % | |||||||||||||||||||||||||
| Fintech fees as a percentage of total revenue: | |||||||||||||||||||||||||||||||||||
| Total fintech fees | $ | 41,819 | $ | 40,894 | $ | 35,083 | $ | 120,782 | $ | 105,174 | |||||||||||||||||||||||||
| Total revenue | 175,884 | 163,506 | 174,613 | 500,729 | 531,233 | ||||||||||||||||||||||||||||||
| Fintech fees as a percentage of total revenue | 23.8 | % | 25.0 | % | 20.1 | % | 24.1 | % | 19.8 | % | |||||||||||||||||||||||||
| Total fintech fees | $ | 41,819 | $ | 40,894 | $ | 35,083 | $ | 120,782 | $ | 105,174 | |||||||||||||||||||||||||
| Core revenue (Non-GAAP) | 135,887 | 137,740 | 134,823 | 406,123 | 402,342 | ||||||||||||||||||||||||||||||
| Core fintech fees as a percentage of total revenue (Non-GAAP) | 30.8 | % | 29.7 | % | 26.0 | % | 29.7 | % | 26.1 | % | |||||||||||||||||||||||||
__________
(1) Annualized
16
The Bancorp Investor Presentation October 2026
Forward Looking Statements & Other Disclosures © The Bancorp | Investor Presentation, October 2026 2 Statements in this presentation regarding The Bancorp’s business that are not historical facts are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “will,” “could,” “continue,” or the negative thereof and similar terms or expressions. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2026, 2027 and 2028 results, including earnings per share accretion, future growth, profitability, productivity and efficiency, our Fintech initiatives and revenue streams, the possible benefits relating to the adoption of AI tools, the impact of organizational restructuring, the amount of charges and savings from the restructuring, including the anticipated annualized run-rate savings, the timing of employee departures and completion of the restructuring, share repurchases, and tax credits. Such forward-looking statements relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this presentation. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law. except as may be required under applicable law. This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), such as those identified in the Appendix. Any non-GAAP financial measures used in this presentation are in addition to, and should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. Non-GAAP financial measures are subject to significant inherent limitations. The non-GAAP measures presented herein may not be comparable to similar non-GAAP measures presented by other companies. This presentation includes market, industry and economic data that was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources or ascertained the underlying economic and other assumptions relied upon by such sources. The Company believes that its market, industry, and economic data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp’s website at www.thebancorp.com..
Financial Highlights © The Bancorp | Investor Presentation, October 2026 3 3Q 2026 Highlights: • Core EPS of $1.47, up from $1.18 in 3Q 2025 • Core ROE of 34.7%, up from 26.6% in 3Q 2025 • Core Fintech Fees as % of Total Revenue of 30.8%, up from 26.0% in 3Q 2025 driven by organic volume growth with our fintech partners and products • Core efficiency ratio at 42.2% with continued focus on our cost discipline strategies • Ending loans of $7.3 billion, or up 9% from 3Q 2025 driven by growth in REBL, IB, and Fintech • Average Fintech loans grew to $1.5B for 3Q 2026, up 141% from 3Q 2025 3Q 2026 QTD $ in millions, except for per share amounts Reported Core1 Returns Net Income Per Share (EPS) $ 1.53 $ 1.47 Return on Assets (ROA) 2.51% 2.42% Return on Equity (ROE) 36.0% 34.7% Results of Operations Net Interest Income $ 90.1 - Fee Revenue $ 85.8 $ 45.8 Fintech Fee Revenue $ 41.8 - Noninterest Expense $ 63.5 $ 57.4 Net Income $ 62.8 $ 60.4 Key Performance Metrics Net Interest Margin (NIM) 3.75% - Fee Revenue % 48.8% 33.7% Fintech Fee Revenue % 23.8% 30.8% Efficiency Ratio - 42.2% 1These are non-GAAP financial measures and should be considered along with results prepared in accordance with Generally Accepted Accounting Principles (GAAP), and not as a substitute for GAAP results. See Appendix for reconciliation to GAAP financial information.
Company Overview 4 We are defining the future of banking. Through our dynamic portfolio of payment, lending and platform solutions, we help propel our clients’ success, while delivering value to the investors we serve, the communities where we operate and the employees who enable our mutual success. Our Vision Fostering prosperity through the perpetual transformation of banking #1 U.S. Issuer of Prepaid cards #6 Debit and prepaid issuer volume Latest Nilson1 rankings: 1) Nilson Report, April 2026 © The Bancorp | Investor Presentation, October 2026 Fintech Solutions Credit Solutions
Business Model and Strategy © The Bancorp | Investor Presentation, October 2026 5 Leading fintech sponsor bank combined with specialized lending across our Credit Solutions businesses Real Estate Bridge Lending Focus on value-add multifamily assets in primary markets Fleet Management Services Comprehensive financing for government and commercial fleets Institutional Banking Lending solutions for wealth management firms Sponsored Lending Full range of lending programs with a suite of customizable options CREDIT SOLUTIONSFINTECH SOLUTIONS Payment Services Real-time, end-to-end payment processing Program Sponsorship Prepaid debit and credit cards for nonbank companies Embedded Finance Integrated financial services platform for employees, customers and vendors Small Business Lending (Legacy1) SBA and conventional loans for business growth 1As previously disclosed in September 2026, The Bancorp is restructuring its Small Business Lending business line (“SBL”) and intends to discontinue retail and wholesale new originations by the end of 2026, while continuing to responsibly manage and serve existing SBL customers and the loan portfolio.
© The Bancorp | Investor Presentation, October 2026 6 Established: Maintain and grow sponsor bank market leadership, continue Credit Solutions businesses on and off-balance sheet, and execute share repurchase plan Incremental: Launch Embedded Finance, transform balance sheet towards fintech dominated mix and monetize core competencies Annual EPS Growth (strategy) 10%-15% 5%-15%+ Incremental APEX 2 0 3 0 15% - 30%+ Annualized EPS Growth Core Financial Performance Expectations APEX 2030 strategic plan outlines the path to magnify our strong baseline earnings and deliver the financial performance of a fintech focused financial institution
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2025 Actuals 2026 Guidance 2027 Guidance 2028 Preliminary Guidance Core Earnings Per Share (diluted)1 7 Key guidance assumptions: • Fintech revenue growth from existing programs, and new partnerships, credit sponsorship and embedded finance • Share buybacks driven by core earnings • Methodical reallocation or reduction in resources • Efficiency and productivity gains through the use of AI tools and scalable operational platform $5.95 - $6.05 $8.00 - $8.20 © The Bancorp | Investor Presentation, October 2026 1) 2026, 2027, and 2028 guidance ranges are core and assume achievement of management’s key initiatives, including critical pieces of the Apex 2030 strategic plan. The range for 2027 includes current expectation around a major partner transition along with updated expectations of partner pipeline and interest rate environment. Bar chart denotes mid-point of guidance ranges. Core earnings per share (EPS) is a financial measure that is not calculated in accordance with U.S. generally accepted accounting principles (GAAP). The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most comparable GAAP estimates without unreasonable efforts because we are unable to predict, forecast or determine the probable significance of the items impacting these estimates with a reasonable degree of accuracy. See “Non-GAAP Financial Measures” section at the end of the document for a description of these measures. 2) See “Reconciliation of Non-GAAP Measures” on page 22 $4.97 $7.00 - $7.20 2
Key Financial Metrics and Long-term Strategy © The Bancorp | Investor Presentation, October 2026 8 Key Metric (GAAP) 2022 2023 2024 2025 3Q YTD 2026 Performance Long-term strategy Return on equity 19% 26% 27% 29% 36% ~3.0x banks1 and driven by growing Fintech Solutions and Credit Solutions 50%+ Increase profitability through shift to fintech dominated company with a bank Return on assets 1.8% 2.6% 2.7% 2.5% 2.5% Increasingly productive use of balance sheet and operating platform, increased fee revenue & decrease in efficiency ratio 4.0%+ Maximize productive use of assets and manage risk Capital Return Since 20222 Cumulative Metrics Capital returned as % of Net income 98% Capital management is an integral part of The Bancorp’s strategy including managing to an asset cap of $10B (per FRB Reg II, Durbin) ~100% Seek to return approximately 100% of Adjusted net income to shareholders Total capital returned ($mm, via share buybacks) $935 % of Shares repurchased 34% 1) KBW Nasdaq Regional Banking Index (KRX) 2) All metrics are through 9/30/2026
Share Repurchase Plans © The Bancorp | Investor Presentation, October 2026 9 Increasing emphasis on capital return program, entirely through share repurchases Framework for new repurchase plan • The Company Board of Directors approved a new repurchase plan for 1Q 2027 through the end of 1Q 2028 • Targeting buyback amounts in 2027 and 1Q 2028 to be approximately 100% of cumulative Adjusted net income • The amount will be contingent on Adjusted net income performance and capital ratio levels, among other factors $60 $100 $250 $375 $150$130 $192 $218 $228 $184 46% 50% 76% 102% 98% 0% 30% 60% 90% 120% $0 $100 $200 $300 $400 2022 2023 2024 2025 YTD 2026 Share Repurchase vs. Net Income (GAAP) ($ millions) Buyback Net Income Cumulative Buyback % of NI
Fintech Solutions Overview © The Bancorp | Investor Presentation, October 2026 10 Key Statistics $1T+ Total payment volume1 $206B Gross dollar volume1 (GDV) 3 50mm+ Active Accounts2 40+ Fintech Partners2 1) Trailing twelve months (TTM) through 3Q 2026 2) As of 3Q 2026 3) Gross dollar volume (GDV) of prepaid, debit and credit cards represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A. Program Sponsorship Debit, credit, and prepaid card issuing for fintechs Sponsored Lending Full range of lending programs including lines of credit, deposit advance, installment, and others with a suite of customizable options Payment Services Real-time, end-to-end payment processing including ACH, FedNow, Push2Card products Experienced fintech experts who combine urgency with rigor, leveraging technology, industry knowledge, creative expertise and regulatory acumen to partner with fintech innovators
Embedded Finance Direct end-to-end delivery and program management of all current sponsorship offerings Fintech Solutions © The Bancorp | Investor Presentation, October 2026 11 Product overview $8.1B Deposits1 (96% total bank deposits) $157mm Fee Income2 1.72% Cost of Deposits1 $1.5B Average Total Loans1 (20% of total bank loans) Sponsored Lending • Origination of multiple credit products – Consumer installment – Secured card – Lines of credit – Deposit advance – Other $24mm TTM Fee Income 1) 3Q 2026 average 2) Trailing twelve months (TTM) through 3Q 2026 Payment Services • Full-spectrum suite of payments enables single- source provider advantage • All payment modalities serviced: Push2Card, ACH, RTP, FedNow $24mm TTM Fee Income Program Sponsorship • 15+ Distinct consumer and commercial segments, such as: – Consumer debit – Healthcare – Corporate payments • #1 prepaid card issuer and #6 debit card issuer $109mm TTM Fee Income + =+
Fintech Strategic Partner of Choice © The Bancorp | Investor Presentation, October 2026 12 The Bancorp is well positioned to compete across core sponsorship, embedded finance and sponsored lending Shared Foundation What powers all three Program Sponsorship • Market-leading scale, supported by high-volume, high-quality partner programs • Diversified across 40+ high quality fintech partners and 15+ defined product segments • Full sponsor-bank execution across issuing, account infrastructure, partner oversight and controls Sponsored Lending • We lend on the same rails we already sponsor • Full credit suite: lines of credit, installment, secured card, etc. • Partner risk-sharing and credit enhancements support risk adjusted growth Embedded Finance • Direct, end-to-end delivery and program management • Integrated program management: sponsorship and payments and lending • Deepens partner relationship and expands wallet share beyond card programs We support full product life cycle Partner focused with urgent, rigorous execution Compliance infrastructure built for fintech scale Product expertise across banking, payments and credit value chain
Fintech Platform Scale © The Bancorp | Investor Presentation, October 2026 13 Our platform enables growth in volume, products and risk management and delivers positive operating leverage Drivers of Operating Leverage Transaction Scale + Ecosystem Connectivity Large and growing sponsor bank with unified integration across payments infrastructure and partners AI Compounds the Advantage What we've built — and continue to enhance — rests on decades of regulatory experience and payments judgment that AI alone can't replicate Institutional Knowledge + Regulatory Depth AI and automation increase capacity, streamline processes and reduce the operating cost required to support additional growth 1See Non-GAAP Financial Measures in the Appendix for a detailed description and a reconciliation to the most directly comparable GAAP financial measures. Project Beacon AI-enabled automation initiative within our financial crimes function, has near 2x investigator productivity and achieved announced run rate cost savings FTS Operating Leverage and Expense per $ thousand of GDV1 Operating Leverage Expense /GDV 5.1% 6.3% 7.6% 11.6% 9.9%$0.61 $0.57 $0.55 $0.51 $0.45 $0.0 $0.3 $0.6 $0.9 0% 5% 10% 15% 2022 2023 2024 2025 2026 YTD Operating Leverage Exp/GDV
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2024 2025 Q3 2026 © The Bancorp | Investor Presentation, October 2026 14 Business Overview Strategy 3Q Yield Commercial Fleet Leasing Fleet vehicle leasing across commercial and government entities Deliver strong yields, fee income and moderate balance sheet growth 8.0% Small Business Lending SBA 7a and 504, focused conventional lending Discontinue new origination by end of 2026 and shift to portfolio management 7.4% Institutional Banking Lending and banking services to wealth managers and clients Maintain momentum in non- purpose securities lending (SBLOC) 5.8% Real Estate Bridge Lending 3-5-year bridge loans for purchase and rehabilitation of multi-family workforce housing Maintain mix with opportunity to originate and sell 7.6% Credit Performance Below market net charge-off ratio with uptick in 2025 driven by a few isolated Leasing clients Maintain strong credit performance - Charge-off ratio excl. Fintech1 0.08% 0.10% 0.05% Balance mix and interest rates Credit Solutions Overview $6.4$6.2 $5.7 1) Excludes fintech net charge-offs of $17.7mm, $151.1mm, and $94.5mm in 2024, 2025, and 3Q YTD 2026, respectively, which are fully offset by credit enhancement income and average fintech balances of $138mm, $607mm, and $1,353mm in 2024, 2025, and 3Q YTD 2026, respectively Credit Solutions Loans End of Period ($ billions)
Revenue Yield Funding Costs Provision Origination and Opex Marginal ROA Sponsored Lending Strategic Balance Sheet Transition © The Bancorp | Investor Presentation, October 2026 15 Illustrative marginal ROA opportunity Revenue Yield Funding Costs Provision Origination and Opex Marginal ROA Traditional Lending Share of Gross Yield (%) 4%-8% Share of Gross Yield (%) ~2% Traditional lending relies on higher operating costs and is more balance sheet and capital intensive Sponsored lending provides highly scalable operating platform and is an efficient use of balance sheet and return on capital 1) Net of credit risk shared with or retained by fintech partners. Illustrative economics shown as share of gross asset yield retained after costs; not actual reported figures. 1 2-4x Return on assets vs traditional lending model Lending Fees Interest Income Transaction Fees
51% 52% 53% 29% 28% 27% 14% 14% 14% 6% 6% 6% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Dec-24 Dec-25 Sept-26 Fair Value ($ millions) © The Bancorp | Investor Presentation, October 2026 16 Securities Portfolio Carefully crafted portfolio focused on fixed rates with a 4.7-year duration1 Yield 4 5.0% 5.2% 4.9% % Total Assets 17% 18% 16% Agency % Total 82% 83% 83% % Fixed 83% 84% 84% Commercial Mortgage- backed securities Other Residential Mortgage- backed securities Asset-backed securities Liquidity Largely comprised of granular, transaction related deposits with significant unused borrowing capacity $8.1B Deposits from Fintech Solutions2 $0.9B Net deposits swept off balance sheet3 $3.5B Unused lines across FHLB and FED3 96% Fintech Solutions deposits % of total deposits2 94% Insured deposits (% of total)3 1) 3Q 2026 Modified duration 2) 3Q 2026 average 3) As of 3Q 2026 4) YTD average yield Est. ~$128mm principal roll-off annually for the next 3 years $1,524 $1,672 $1,503
$1.60 $1.75 $1.83 $1.88 $1.94 $1.97 $2.03 $2.27 $2.66 $3.02 $3.40 $3.49 $3.68 $3.84 $3.96 $4.29 $4.43 $4.65 $4.79 $4.92 $5.14 $5.32 $5.67 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Earnings per Share TTM (GAAP $) Trailing-Twelve-Month Earnings Per Share © The Bancorp | Investor Presentation, October 2026 17 TTM GAAP EPS by quarter, 2021 – 2026 YTD 2023 2024 202520222021 2026 EPS growth momentum has continued since 2020, with TTM EPS increasing every quarter from 2021 through 2026 YTD Consistent Growth
7% 11% 12% 15% 18% 19% 26% 27% 29% 0% 10% 20% 30% 40% 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 ROE Performance1 (GAAP) Return on Equity vs Market Benchmarks © The Bancorp | Investor Presentation, October 2026 18 The Bancorp, KBW Regional Banks, and Select Peers 3 36% KBW Regional Bank Index 6% Select Peers2 1ROE reflects annual data for fiscal years 2017-2025, 2Q YTD for peers and index, and 3Q YTD 2026 for TBBK 2Select Peers across sponsor bank market 3Adjusted for sale of Safe Harbor IRA business The Bancorp has increased its profitability every year since 2017 10%
Stock Performance vs Market Benchmarks © The Bancorp | Investor Presentation, October 2026 19 The Bancorp, S&P 500, NASDAQ, and KBW Bank indices The Bancorp has largely outperformed both broad market indices and the KBW Nasdaq bank index since 3Q 2021 89% 78% 30% S&P 500 KBW Bank Index 86% NASDAQ CAGR TBBK (36%) 1-Year 12% 3-Year 14% 5-Year KBW Regional Bank Index 10% 1Reporting period: September 30, 2021 – September 30, 2026 -50% 0% 50% 100% 150% 200% 250% 2021 2022 2023 2024 2025 2026 % Change in Stock Price1
Appendix © The Bancorp | Investor Presentation, October 2026 20
Non-GAAP Financial Measures We use certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures are focused on adjusting certain metrics used to measure our performance to exclude the impact of items or events that management believes are not reflective of core operating performance (collectively “Non-core adjustments”). Management uses such non-GAAP financial measures to help evaluate our business on a consistent basis, measure our performance, identify trends affecting our business, and assess our operational efficiencies. For the periods presented, Non-core adjustments include: (i) Fintech loan credit enhancement; (ii) Provision for credit losses on fintech loans; (iii) Restructuring costs; (iv) Legal settlement (reimbursement); and (v) Income tax benefits related to a one-time adjustment from purchased transferable tax credits that relate to prior tax years. Non-GAAP measures include: • Adjusted net income is calculated as: GAAP Net income, plus: (i) pre-tax Non-core adjustments, as defined above; (ii) Income tax expense or benefit related to Non-core adjustments; and (iii) Non-core adjustments to Income tax expense. • Core earnings per share is calculated as: Adjusted net income (Non-GAAP), divided by weighted-average diluted shares. • Core revenue is calculated as: the total of GAAP Net interest income and GAAP Non-interest income, less Fintech loan credit enhancement income. • Core non-interest income is calculated as: GAAP Non-interest-income less Fintech loan credit enhancement income. • Core non-interest expense is calculated as: GAAP Non-interest expense, less Non-core adjustments from Restructuring costs and Legal settlement (reimbursement). • Core income tax expense is calculated as: GAAP Income tax expense, less (i) Income tax expense or benefit related to Pre-tax Non-core adjustments; and (ii) Non-core adjustments to Income tax expense related to transferable tax credit carryback. • Core return on assets is calculated as: Adjusted net income (Non-GAAP), divided by Average assets, as reported. • Core return on equity is calculated as: Adjusted net income (Non-GAAP), divided by Average equity, as reported. • Core efficiency ratio is calculated as Core non-interest expense (Non-GAAP) divided by Core revenue (Non-GAAP). This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency. • Core non-interest income as a percentage of total revenue is calculated as: (i) Core Non-interest-income (Non-GAAP); divided by (ii) Core revenue (Non-GAAP). This ratio is used to compare the amount of non-interest income, which is primarily fee-based, to our total revenue each period to review the growth in our fee-based business. • Core fintech fees as a percentage of total revenue is calculated as: (i) GAAP Non-interest income – Total fintech fees; divided by (ii) Core revenue (Non-GAAP). This metric is used to review the growth in our fintech business, which is one of our key areas of focus. • Core FTS fee revenue is calculated as: (i) Non-interest income attributed to the results of our Fintech Solutions (FTS) segment; less (ii) Fintech loan credit enhancement income. This amount is used in the Operating Leverage calculation, as discussed below. • Core FTS expense is calculated as: (i) Non-interest expense amounts directly attributed to the operations of our FTS segment, as presented in ‘Direct non-interest expense’ in our Segment results disclosed in our Form 10-Q; plus (ii) Non-interest expense allocated to our FTS segment; less Legal settlement (reimbursement). This amount is used in the Operating Leverage calculation, as discussed below. • Operating Leverage is calculated as: (i) Change in Core FTS fee revenue, adjusted from the prior year; less (ii) Change in FTS expense from the prior year. This ratio measures the relationship between growth in the operating income of the FTS segment to the fixed and variable expenses of the segment. • Core FTS Expense / GDV (per thousand) is calculated as: (i) Core FTS expense; divided by (ii) total Prepaid, debit and credit card gross dollar volume (GDV). This ratio measure the GDV volume to the FTS segment expense base. We believe that these non-GAAP measures are useful performance metrics for management, investors, and lenders, because they provide a means to evaluate period-to-period comparisons of the Company’s financial performance without the effects of certain adjustments in accordance with GAAP, and unusual, one-time, non-ordinary course items that are not reflective of core operating performance. Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in text or in the tables or attached to this presentation. The presentation of certain prior period amounts has been updated to conform to current period presentation. © The Bancorp | Investor Presentation, October 2026 21
Reconciliation of Non-GAAP Measures Three months ended Twelve months ended September 30, 2026 June 30, 2026 September 30, 2025 December 31, 2025 Net income, as reported $ 62,780 $ 60,656 $ 54,927 $ 228,213 Less: Fintech loan credit enhancement (39,997) (25,766) (39,790) (169,294) Less: Provision for credit losses on fintech loans 39,997 25,766 39,790 169,294 Less: Restructuring costs 4,276 - - 917 Less: Legal settlement 1,900 - - 2,000 Pre-tax income, net of Non-core adjustments $ 68,956 $ 60,656 $ 54,927 $231,130 Plus: Income tax expense on Non-core items (1,297) - - (613) Plus: Transferable tax credits carryback (7,284) - - - Adjusted net income (Non-GAAP) $ 60,375 $ 60,656 $ 54,927 $ 230,517 Net income per share – diluted – as reported $ 1.53 $ 1.45 $ 1.18 4.92 Plus: Non-core adjustments (pre-tax) 0.15 - - 0.06 Less: Income tax expense on Non-core items (0.03) - - (0.01) Less: Transferable tax credits carryback (0.18) - - - Core earnings per share – diluted (Non-GAAP) $ 1.47 $ 1.45 $ 1.18 $ 4.97 Weighted average shares - diluted 41,149,490 41,794,160 46,518,125 46,421,672 Return on assets, as reported 2.51% 2.51% 2.50% - Plus: Pre-tax adjustments 0.25 - - - Less: Tax impacts (0.34) - - - Core return on assets (Non-GAAP) 2.42% 2.51% 2.50% - Return on equity, as reported 36.0% 34.7% 26.6% - Plus: Pre-tax adjustments 3.5 - - - Less: Tax impacts (4.8) - - - Core return on equity (Non-GAAP) 34.7% 34.7% 26.6% - © The Bancorp | Investor Presentation, October 2026 ($ in thousands, except for per share amounts) 22 Three months ended September 30, 2026 June 30, 2026 September 30, 2025 Net interest income, as reported $ 90,067 $ 90,466 $ 94,197 Non-interest income, as reported 85,817 73,040 80,416 Less: Fintech loan credit enhancement 39,997 25,766 39,790 Core non-interest income (Non-GAAP) $ 45,820 $ 47,274 $ 40,626 Core revenue (Non-GAAP) $ 135,887 $ 137,740 $ 134,823 Fintech fee revenue, as reported $ 41,819 $ 40,894 $ 35,083 Non-interest expense, as reported $ 63,529 $ 56,476 $ 56,404 Less: Restructuring costs 4,276 - - Less: Legal settlement 1,900 - - Core non-interest expense (Non-GAAP) $ 57,353 $ 56,476 $ 56,404 Core efficiency ratio (Non-GAAP) 42.2% 41.0% 41.8% Core non-interest income as a percentage of total revenue (Non-GAAP) 33.7% 34.3% 30.1% Core fintech fees as a percentage of total revenue (Non-GAAP) 30.8% 29.7% 26.0% ($ in thousands, except for per share amounts)
Reconciliation of Non-GAAP Measures (continued) © The Bancorp | Investor Presentation, October 2026 2021 2022 2023 2024 2025 2026 YTD Financial Metrics Prepaid, debit and credit card gross dollar volume (GDV) $ 104,415,457 $ 114,532,981 $ 133,052,546 $ 152,637,453 $ 178,211,646 $ 160,294,171 Results of Operations (Fintech Solutions segment1) FTS fee revenue Non-interest income, as reported $ 82,343 $ 86,313 $ 99,376 $ 147,574 $ 310,555 $ 218,229 Less: Fintech loan credit enhancement,2 as reported — — — (30,651) (169,294) (94,606) Core FTS fee revenue (Non-GAAP) $ 82,343 $ 86,313 $ 99,376 $ 116,923 $ 141,261 $ 123,623 Annualized 165,283 FTS expense Direct non-interest expense, as reported 22,589 25,081 26,818 30,694 26,999 Non-interest expense allocation, as reported 46,941 50,590 56,468 60,265 47,779 Less: Legal settlement, as reported — — — — (1,900) Core FTS expense (Non-GAAP) $ 69,716 $ 69,530 $ 75,671 $ 83,286 $ 90,959 $ 72,878 Annualized 97,438 Key Performance Metrics Core FTS fee revenue growth 4.8% 15.1% 17.7% 20.8% 17.0% Core FTS expense growth (0.3%) 8.8% 10.1% 9.2% 7.1% Operating leverage (Non-GAAP) 5.1% 6.3% 7.6% 11.6% 9.9% Core FTS expense / $ GDV (per thousand) (Non-GAAP) $ 0.67 $ 0.61 $ 0.57 $ 0.55 $ 0.51 $ 0.45 ($ in thousands, except expense per $ GDV metric) 2We recognize non-interest income in our FTS segment (Fintech Solutions) related to a credit enhancement provided contractually by a Fintech partner. We began originating significant volumes of fintech loans in the fourth quarter of 2024. 23 1A discussion of our segments, our reporting methodology, and allocations of interest and non-interest expense are outlined in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, within Note 18, "Segment Financial Information."