The Bancorp, Inc. Reports Third Quarter 2025 Financial Results

The Bancorp, Inc. Reports Third Quarter 2025 Financial Results October 30, 2025 The Bancorp, Inc. (“The Bancorp” or the “Company” or “we” or “our”) (NASDAQ: TBBK), a financial holding company, today reported its financial results for the third quarter of 2025. Highlights The Bancorp reported net income of $54.9 million, or $1.18 per diluted share (“EPS”), for the quarter ended September 30, 2025, compared to net income of $51.5 million, or $1.04 per diluted share, for the quarter ended September 30, 2024, or an EPS increase of 13%. While net income increased 7% between these periods, outstanding shares were reduced as a result of share repurchases as detailed below.Return on assets and return on equity for the quarter ended September 30, 2025, amounted to 2.5% and 27%, respectively, compared to 2.5% and 26%, respectively, for the quarter ended September 30, 2024 (all percentages “annualized”).Net interest income increased to $94.2 million for the quarter ended September 30, 2025, compared to $93.7 million for the quarter ended September 30, 2024.Net interest margin amounted to 4.45% for the quarter ended September 30, 2025, compared to 4.78% for the quarter ended September 30, 2024, and 4.44% for the quarter ended June 30, 2025.The average interest rate on $7.84 billion of average deposits and interest-bearing liabilities during the third quarter of 2025 was 2.15%. compared to 2.54% for the third quarter of 2024. Average deposits of $7.63 billion for the third quarter of 2025 increased $618.2 million, or 9% over third quarter 2024.Gross dollar volume (“GDV”), representing the total amounts spent on prepaid, debit and credit cards totaled $44.04 billion for the quarter ended September 30, 2025, an increase of $6.14 billion, or 16%, compared to the quarter ended September 30, 2024. The increase reflected continued organic volume growth with existing partners and products and the impact of new products launched within the past year. Total prepaid, debit card, ACH, and other payment fees increased 10% to $30.6 million for the third quarter of 2025 compared to the third quarter of 2024.Loans, net of deferred fees and costs were $6.67 billion at September 30, 2025, compared to $5.91 billion at September 30, 2024 and $6.54 billion at June 30, 2025. Those changes reflected an increase of 2% quarter over linked quarter and an increase of 13% year over year.Real estate bridge loans (“REBLs”) characterized as criticized assets decreased in the third quarter of 2025 to $185.3 million at September 30, 2025 from $215.8 million at June 30, 2025. Included in the September 30, 2025 balance is $102.0 million of assets under contract and expected to close during the fourth quarter, thus further reducing the criticized balance if completed.Consumer fintech loans increased to $785.0 million at September 30, 2025, a 15% increase compared to the $680.5 million balance at June 30, 2025 and increased 180% compared to the September 30, 2024 balance of $280.1 million. Certain loan fees on consumer fintech loans are recorded as non-interest income. Such non-interest income amounted to $4.5 million for the quarter ended September 30, 2025 and $1.6 million for the quarter ended September 30, 2024.As of September 30, 2025, the Company’s 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 were 8.74%, 12.99%, 14.09% and 12.99%, respectively. Those respective ratios for our wholly owned subsidiary, The Bancorp Bank, N.A., at that date were 9.85%, 14.66%, 15.77% and 14.66% compared to well-capitalized minimums of 5%, 8%, 10%, and 6.5%. The Bancorp Bank, N.A. also remains well capitalized under banking regulations.Book value per common share at September 30, 2025, was $17.48 compared to $16.90 per common share at September 30, 2024, an increase of 3%.The Bancorp repurchased 2,034,053 shares of its common stock at an average cost of $73.74 per share during the quarter ended September 30, 2025. As a result of share repurchases, outstanding shares, net of treasury shares, at September 30, 2025 amounted to 44.5 million, compared to 48.2 million shares at September 30, 2024, or a reduction of 8%. “We had another successful quarter as we continue to build new Fintech capabilities and implement and expand partner programs,” said Damian Kozlowski, CEO of The Bancorp. He also noted that “We are lowering guidance from $5.25 to $5.10 earnings per share for 2025, primarily due to lower projected balances for our traditional lending businesses and an increased credit provision for leasing as a result of losses on the disposition of previously identified credits in trucking. In addition, we are not giving specific guidance for 2026 other than we are targeting a minimum $7 earnings per share run-rate by the fourth quarter of 2026. We are initiating preliminary guidance for 2027 of $8.25 earnings per share. We believe that our three major Fintech initiatives of credit sponsorship expansion, embedded finance platform development and new program implementations, plus platform efficiency and productivity gains from platform restructuring and new AI tools, and a continued high level of capital return through share buybacks, will contribute to earnings per share accretion. Earnings per share gains are subject to uncertainty, particularly as it relates to the development and implementation timelines in Fintech, and our stock price for buybacks.” Conference Call Webcast You may access the LIVE webcast of The Bancorp’s Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 31, 2025, by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or you may dial 1.800.549.8228, conference ID 37073. You may listen to the replay of the webcast following the live call on The Bancorp’s investor relations website (archived for one year) or telephonically until Friday, November 7, 2025, by dialing 1.888.660.6264, playback code 37073#. About The Bancorp The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, N.A, provides a variety of services including providing non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, 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 “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2025, 2026 and 2027 results, including earnings per share accretion, future growth, productivity and efficiency, the expansion, expected timelines and implementation of our Fintech initiatives, the possible benefits of our platform restructuring and adoption of AI tools, and share repurchases. Such forward-looking statements relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K/A, as amended, for the fiscal year ended December 31, 2024 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. Financial highlights (unaudited) Three months ended Nine months ended September 30, September 30, Condensed Consolidated Income Statements 2025 2024 2025 2024 (Dollars in thousands, except per share and share data) Net interest income $ 94,197 $ 93,732 $ 283,432 $ 281,945 Provision for credit losses on non-consumer fintech loans 5,755 3,476 8,123 7,316 Provision for credit losses on consumer fintech loans 39,790 — 128,891 — Provision (reversal) for unfunded commitments (491) 79 (744) (340) Non-interest income Fintech fees ACH, card and other payment processing fees 5,077 3,892 15,771 9,856 Prepaid, debit card and related fees 25,513 23,907 77,340 72,948 Consumer credit fintech fees 4,493 1,600 12,063 1,740 Total fintech fees 35,083 29,399 105,174 84,544 Net realized and unrealized gains on commercial loans, at fair value 1,005 606 1,710 2,205 Leasing related income 1,397 1,072 5,500 2,889 Consumer fintech loan credit enhancement 39,790 — 128,891 — Other non-interest income(1) 3,141 1,031 6,526 2,574 Total non-interest income 80,416 32,108 247,801 92,212 Non-interest expense Salaries and employee benefits 37,350 33,821 108,153 97,964 Data processing expense 1,259 1,408 3,691 4,252 Legal expense 1,483 1,055 5,303 2,509 FDIC insurance 905 904 3,160 2,618 Software 5,040 4,561 15,197 13,687 Other non-interest expense 10,367 11,506 31,417 30,383 Total non-interest expense 56,404 53,255 166,921 151,413 Income before income taxes 73,155 69,030 228,042 215,768 Income tax expense 18,228 17,513 56,121 54,136 Net income $ 54,927 $ 51,517 $ 171,921 $ 161,632 Net income per share - basic $ 1.20 $ 1.06 $ 3.69 $ 3.18 Net income per share - diluted $ 1.18 $ 1.04 $ 3.64 $ 3.15 Weighted average shares - basic 45,865,172 48,759,369 46,554,311 50,807,021 Weighted average shares - diluted 46,518,125 49,478,236 47,209,469 51,361,104 (1) For the three and nine months ended September 30, 2025, includes $2.3 million of income from the release of an earnest money deposit related to the termination of an agreement of sale for a $43.0 million other real estate owned apartment complex property. Condensed Consolidated Balance Sheets September 30, June 30, December 31, September 30, 2025 (unaudited) 2025 (unaudited) 2024 2024 (unaudited) (Dollars in thousands, except share data) Assets: Cash and cash equivalents Cash and due from banks $ 10,162 $ 11,637 $ 6,064 $ 8,660 Interest earning deposits at Federal Reserve Bank 74,517 328,628 564,059 47,105 Total cash and cash equivalents 84,679 340,265 570,123 55,765 Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss as of September 30, 2024, and $0 for all other periods presented 1,384,256 1,481,500 1,502,860 1,588,289 Commercial loans, at fair value 142,658 185,476 223,115 252,004 Loans, net of deferred fees and costs 6,672,637 6,535,432 6,113,628 5,906,616 Allowance for credit losses (64,152) (59,393) (44,853) (31,004) Loans, net 6,608,485 6,476,039 6,068,775 5,875,612 Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock 25,250 16,250 15,642 21,717 Premises and equipment, net 25,947 26,495 27,566 28,091 Accrued interest receivable 43,831 40,607 41,713 42,915 Intangible assets, net 955 1,055 1,254 1,353 Other real estate owned 61,974 66,054 62,025 61,739 Deferred tax asset, net 10,034 12,436 18,874 9,604 Credit enhancement asset 29,318 26,982 12,909 — Other assets 182,037 166,072 182,687 157,501 Total assets $ 8,599,424 $ 8,839,231 $ 8,727,543 $ 8,094,590 Liabilities: Deposits Demand and interest checking $ 7,254,896 $ 7,705,813 $ 7,434,212 $ 6,844,128 Savings and money market 75,901 60,122 311,834 81,624 Total deposits 7,330,797 7,765,935 7,746,046 6,925,752 Short-term borrowings 200,000 — — 135,000 Senior debt 196,052 96,391 96,214 96,125 Subordinated debenture 13,401 13,401 13,401 13,401 Other long-term borrowings 13,806 13,898 14,081 38,157 Other liabilities 67,206 89,340 68,018 70,829 Total liabilities $ 7,821,262 $ 7,978,965 $ 7,937,760 $ 7,279,264 Shareholders' equity: Common stock - authorized, 75,000,000 shares of $1.00 par value(1) 48,404 48,104 47,713 48,231 Additional paid-in capital 19,400 12,608 3,233 26,573 Retained earnings 951,076 896,149 779,155 723,247 Accumulated other comprehensive income (loss) 8,814 1,609 (17,637) 17,275 Treasury stock at cost(2) (249,532) (98,204) (22,681) — Total shareholders' equity 778,162 860,266 789,783 815,326 Total liabilities and shareholders' equity $ 8,599,424 $ 8,839,231 $ 8,727,543 $ 8,094,590 September 30, June 30, December 31, September 30, 2025 (unaudited) 2025 (unaudited) 2024 2024 (unaudited) (1)Common stock Shares issued 48,404,006 48,104,006 47,713,481 48,230,334 Shares outstanding 44,528,879 46,262,932 47,310,750 48,230,334 (2)Treasury stock 3,875,127 1,841,074 402,731 — Average balance sheet and net interest income Three months ended September 30, 2025 Three months ended September 30, 2024 (Dollars in thousands; unaudited) Average Average Average Average Assets: Balance Interest Rate Balance Interest Rate Interest earning assets: Loans, net of deferred fees and costs(1) $ 6,681,717 $ 114,841 6.87% $ 6,017,911 $ 116,367 7.73% Leases-bank qualified(2) 7,579 179 9.45% 5,151 146 11.34% Investment securities-taxable 1,418,058 17,354 4.90% 1,575,091 19,767 5.02% Investment securities-nontaxable(2) 8,385 131 6.25% 2,927 55 7.52% Interest earning deposits at Federal Reserve Bank 354,991 3,954 4.46% 247,344 3,387 5.48% Net interest earning assets 8,470,730 136,459 6.44% 7,848,424 139,722 7.12% Allowance for credit losses (59,166) (28,254) Other assets 308,654 222,646 $ 8,720,218 $ 8,042,816 Liabilities and Shareholders' Equity: Deposits: Demand and interest checking $ 7,560,744 $ 38,233 2.02% $ 6,942,029 $ 42,149 2.43% Savings and money market 64,529 563 3.49% 65,079 549 3.37% Total deposits 7,625,273 38,796 2.04% 7,007,108 42,698 2.44% Short-term borrowings 45,067 495 4.39% 73,480 1,030 5.61% Long-term borrowings 13,866 197 5.68% 38,235 689 7.21% Subordinated debentures 13,401 259 7.73% 13,401 297 8.87% Senior debt 140,992 2,450 6.95% 96,071 1,234 5.14% Total deposits and liabilities 7,838,599 42,197 2.15% 7,228,295 45,948 2.54% Other liabilities 62,405 18,362 Total liabilities 7,901,004 7,246,657 Shareholders' equity 819,214 796,159 $ 8,720,218 $ 8,042,816 Net interest income on tax equivalent basis(2) $ 94,262 $ 93,774 Tax equivalent adjustment 65 42 Net interest income $ 94,197 $ 93,732 Net interest margin(2) 4.45% 4.78% (1) Includes commercial loans, at fair value. All periods include non-accrual loans. (2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024. Average balance sheet and net interest income Nine months ended September 30, 2025 Nine months ended September 30, 2024 (Dollars in thousands; unaudited) Average Average Average Average Assets: Balance Interest Rate Balance Interest Rate Interest earning assets: Loans, net of deferred fees and costs(1) $ 6,542,172 $ 335,831 6.84% $ 5,828,938 $ 345,497 7.90% Leases-bank qualified(2) 7,058 492 9.29% 4,840 379 10.44% Investment securities-taxable(3) 1,456,402 57,874 5.30% 1,255,532 46,921 4.98% Investment securities-nontaxable(2) 7,683 367 6.37% 2,905 155 7.11% Interest earning deposits at Federal Reserve Bank 746,470 24,960 4.46% 486,883 19,948 5.46% Net interest earning assets 8,759,785 419,524 6.39% 7,579,098 412,900 7.26% Allowance for credit losses (52,227) (27,993) Other assets 341,661 280,733 $ 9,049,219 $ 7,831,838 Liabilities and Shareholders' Equity: Deposits: Demand and interest checking $ 7,906,597 $ 126,680 2.14% $ 6,684,671 $ 120,405 2.40% Savings and money market 88,687 2,454 3.69% 58,777 1,453 3.30% Total deposits 7,995,284 129,134 2.15% 6,743,448 121,858 2.41% Short-term borrowings 15,334 500 4.35% 55,820 2,344 5.60% Repurchase agreements — — — 4 — — Long-term borrowings 13,957 590 5.64% 38,371 2,060 7.16% Subordinated debentures 13,401 771 7.67% 13,401 880 8.76% Senior debt 111,354 4,917 5.89% 95,983 3,701 5.14% Total deposits and liabilities 8,149,330 135,912 2.22% 6,947,027 130,843 2.51% Other liabilities 115,916 73,507 Total liabilities 8,265,246 7,020,534 Shareholders' equity 783,973 811,304 $ 9,049,219 $ 7,831,838 Net interest income on tax equivalent basis(2) $ 283,612 $ 282,057 Tax equivalent adjustment 180 112 Net interest income $ 283,432 $ 281,945 Net interest margin(2) 4.32% 4.96% (1) Includes commercial loans, at fair value. All periods include non-accrual loans. (2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024. (3) The nine months ended September 30, 2025 includes $3.0 million of interest income from a security that was known as “CRE-2” and which relates to the Company’s discontinued commercial real estate securitization business. The CRE-2 interest was repaid in the second quarter of 2025 as a result of the final sale of underlying collateral related to that security. CRE-2 was the last security remaining related to the Company’s discontinued commercial real estate securitization business. Capital ratios Tier 1 capital Tier 1 capital Total capital Common equity to average to risk-weighted to risk-weighted Tier 1 to risk assets ratio assets ratio assets ratio weighted assets As of September 30, 2025 The Bancorp, Inc. 8.74% 12.99% 14.09% 12.99% The Bancorp Bank, National Association 9.85% 14.66% 15.77% 14.66% "Well capitalized" institution (under federal regulations-Basel III) 5.00% 8.00% 10.00% 6.50% As of December 31, 2024 The Bancorp, Inc. 9.41% 13.85% 14.65% 13.85% The Bancorp Bank, National Association 10.38% 15.25% 16.06% 15.25% "Well capitalized" institution (under federal regulations-Basel III) 5.00% 8.00% 10.00% 6.50% Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Selected operating ratios Return on average assets(1) 2.50% 2.55% 2.54% 2.76% Return on average equity(1) 26.60% 25.74% 29.32% 26.61% Net interest margin 4.45% 4.78% 4.32% 4.96% (1) Annualized. Book value per share table September 30, June 30, December 31, September 30, 2025 2025 2024 2024 Book value per share $ 17.48 $ 18.60 $ 16.69 $ 16.90 Gross dollar volume (“GDV”)(1) Three months ended September 30, June 30, December 31, September 30, 2025 2025 2024 2024 (Dollars in thousands) Prepaid and debit card GDV $ 44,037,511 $ 43,649,005 $ 39,656,909 $ 37,898,006 (1) Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A. Business line quarterly summary: Quarter ended September 30, 2025 (Dollars in millions) Balances % Growth Major business lines Average approximate rates(1) Total loan portfolio(2) Year over Year Linked quarter annualized Loans Institutional banking(3) 6.5% $ 1,895 6% 5% Small business lending(4) 7.6% 1,059 12% 9% Direct lease financing 8.1% 693 (3%) (3%) Real estate bridge loans (non-SBA) - recorded at fair value 6.6% 71 nm nm Real estate bridge loans - recorded at amortized cost 8.5% 2,132 (3%) (1%) Consumer fintech loans - interest bearing 5.1% 105 nm nm Consumer fintech loans - non-interest bearing(5) — 680 nm nm Other loans(6) 5.9% 164 nm (14%) Unamortized loan fees and costs — 16 nm nm Weighted average yield 6.8% $ 6,815 Non-interest income: Fintech fees % Growth Deposits: Fintech solutions group Current quarter Year over Year Fintech deposits and fees 2.1% $ 7,342 10% nm $ 35.1 19% (1) Average rates are for the three months ended September 30, 2025. (2) Loan and deposit categories are based on period-end and average quarterly balances, respectively. Total loan portfolio includes both loans recorded at amortized cost and loans at fair value. (3) Institutional Banking loans are comprised of securities-backed lines of credit (“SBLOC’) loans collateralized by marketable securities, insurance-backed lines of credit (“IBLOC”) loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing. (4) Small Business Lending (“SBL”) is substantially comprised of Small Business Administration (“SBA”)-guaranteed loans and includes SBL loans at fair value. Growth rates exclude the impact of $4 million of loans that do not qualify for true sale accounting at September 30, 2025 compared to $4 million at prior quarter end and $28 million at September 30, 2024. (5) Income related to non-interest-bearing balances is included in non-interest income. (6) Includes warehouse financing related to loan sales to third-party purchasers of $122.5 million. Summary of credit lines available The Bancorp Bank, N.A. maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity. September 30, 2025 (Dollars in thousands) Federal Reserve Bank $ 2,064,218 Federal Home Loan Bank 912,186 Total lines of credit capacity $ 2,976,404 Current balance – Short-term borrowings 200,000 Available capacity $ 2,776,404 Estimated insured vs. uninsured deposits The vast majority of The Bancorp Bank, N.A.’s deposits are low balance, insured deposits, and accordingly do not constitute the liquidity risk experienced by certain institutions. The deposit base is comprised as follows: September 30, 2025 Insured 92% Low balance accounts(1) 3% Other uninsured 5% Total deposits 100% (1) Comprised of small balances, such as anonymous gift cards and corporate incentive cards for which there is no identified depositor. Loan Portfolio September 30, June 30, December 31, September 30, 2025 (unaudited) 2025 (unaudited) 2024 2024 (unaudited) (Dollars in thousands) SBL non-real estate $ 222,933 $ 204,087 $ 190,322 $ 179,915 SBL commercial mortgage 729,620 723,754 662,091 665,608 SBL construction 34,518 30,705 34,685 30,158 Small business loans 987,071 958,546 887,098 875,681 Direct lease financing 693,322 698,086 700,553 711,836 SBLOC / IBLOC(1) 1,609,047 1,601,405 1,564,018 1,543,215 Advisor financing 285,531 272,155 273,896 248,422 Real estate bridge loans 2,131,689 2,140,039 2,109,041 2,189,761 Consumer fintech(2) 785,045 680,487 454,357 280,092 Other loans 164,487 169,945 111,328 46,586 6,656,192 6,520,663 6,100,291 5,895,593 Unamortized loan fees and costs 16,445 14,769 13,337 11,023 Total loans, including unamortized fees and costs $ 6,672,637 $ 6,535,432 $ 6,113,628 $ 5,906,616 (1) SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At September 30, 2025 and December 31, 2024, IBLOC loans amounted to $471.6 million and $548.1 million, respectively. (2) At September 30, 2025, consumer fintech loans consisted of $416.0 million of secured credit card loans, with the balance comprised of other short-term extensions of credit. The Bancorp Bank, N.A. emphasizes safety and soundness, and its balance sheet has a risk profile enhanced by the special nature of the collateral supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have experienced various economic stresses. At September 30, 2025, consumer fintech loans included $416.0 million of secured credit card accounts, which are backed dollar for dollar by cash collateral by each individual cardholder and are required to be repaid in-full monthly. The remaining consumer fintech loans consist of cashflow underwritten short-term liquidity products to individual borrowers ranging in maturities from 30 to 365 days, with The Bancorp Bank, N.A.’s partner(s) providing a full guarantee against losses. The Bancorp Bank, N.A. maintains cash collateral for the expected losses on dollars already lent, as well as right of offset against other revenues generated through those relationships. The REBL portfolio is largely comprised of rehabilitation bridge loans for apartment buildings. The Company has minimal exposure to non-multifamily commercial real estate such as office buildings. These loans generally have three-year terms with two one-year extension options to allow for the rehabilitation work to be completed and rentals stabilized for an extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders. The REBL portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While the macro-economic environment has challenged the multifamily bridge space, the stability of the Company’s REBL portfolio is evidenced by the estimated values of the underlying collateral. The Company’s $2.13 billion REBL portfolio at September 30, 2025 has a weighted average origination date “as is” loan-to-value ratio of 70%, based on third-party appraisals. Further, the weighted average origination date “as stabilized” loan-to-value ratio (“LTV”), which measures the estimated value of the apartments after the rehabilitation is complete, may provide even greater protection. As part of the underwriting process, The Bancorp Bank, N.A. reviews prospective borrowers’ previous rehabilitation experience in addition to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news searches, lien searches, visitations by bank personnel and/or designated engineers, and other information sources. Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early identification of potential issues and expedited action to address on a timely basis. Operations and ongoing loan evaluation are overseen by multiple levels of management in addition to the REBL team’s experienced professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes a separate loan committee specific to REBL, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the REBL team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses methodology, all of which similarly do not report to anyone on the REBL team. The SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50%-60% LTVs. Additional details regarding our loan portfolios are included in the following sections of this press release. This press release also discloses in this press release is the summarization of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s risk profile inherent in its loan portfolios, funding, and earnings levels, may present opportunities to further increase stockholder value, while still prudently maintaining capital levels. Small Business Lending Small business loans as of September 30, 2025 Loan principal (Dollars in millions) Commercial mortgage SBA(1) $ 378 Construction SBA(2) 21 Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(3) 121 Non-SBA SBLs 128 Subtotal - SBL loans, excluding guaranteed portion and Other $ 648 U.S. government guaranteed portion of SBA loans(4) 407 Other(5) 4 Total SBL principal $ 1,059 SBL, at amortized cost 987 SBL, included in loans, at fair value(6) 72 Total SBL principal $ 1,059 (1) Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50%-60%, to which The Bancorp Bank, N.A. adheres. (2) Includes $15 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $6 million in SBA interim loans with an approved SBA post-construction full takeout/payoff. (3) Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the borrower must pledge that available collateral to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners. (4) Includes the portion of SBA 7(a) Program loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk. (5) Comprised of $4 million of loans sold that do not qualify for true sale accounting. (6) The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated. Small business loans by type as of September 30, 2025 (Excludes government guaranteed portion of SBA 7(a) Program and Other loans) SBL commercial mortgage(1) SBL construction(1) SBL non-real estate Total % Total (Dollars in millions) Funeral homes and funeral services $ 45 $ — $ 39 $ 84 13% Hotels (except casino hotels) and motels 83 — — 83 13% Full-service restaurants 31 2 3 36 6% Child day care services 26 — 4 30 5% Car washes 11 13 — 24 4% Homes for the elderly 21 — — 21 3% Gasoline stations with convenience stores 15 1 — 16 2% Outpatient mental health and substance abuse centers 15 — — 15 2% General line grocery merchant wholesalers 13 — — 13 2% Plumbing, heating, and air-conditioning companies 10 — 1 11 2% Fitness and recreational sports centers 7 — 2 9 1% Caterers 9 — — 9 1% Offices of lawyers 9 — — 9 1% Limited-service restaurants 4 — 3 7 1% All other specialty trade contractors 6 — 1 7 1% Used car dealers 7 — — 7 1% Charter bus industry 6 — — 6 1% Lessors of nonresidential buildings 6 — — 6 1% General warehousing and storage 6 — — 6 1% Automotive body, paint, and interior repair 6 — — 6 1% Nursing care facilities 6 — — 6 1% Appliance repair and maintenance 6 — — 6 1% Residential remodelers 5 — — 5 1% Offices of dentists 5 — — 5 1% Other(2) 179 8 34 221 34% Total $ 537 $ 24 $ 87 $ 648 100% (1) Of the SBL commercial mortgage and SBL construction loans, $162 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans sold that do not qualify for true sale accounting. (2) Loan types of less than $5 million are spread over approximately one hundred different business types. SBL State diversification as of September 30, 2025 (Excludes government guaranteed portion of SBA 7(a) Program loans and Other loans) SBL commercial mortgage(1) SBL construction(1) SBL non-real estate Total % Total (Dollars in millions) California $ 142 $ 7 $ 9 $ 158 24% Florida 85 8 5 98 15% North Carolina 44 — 4 48 7% New York 41 — 3 44 7% Texas 30 5 6 41 6% New Jersey 30 — 9 39 6% Georgia 29 3 2 34 5% Pennsylvania 19 — 13 32 5% Maine 17 — 12 29 4% Other states 100 1 24 125 21% Total $ 537 $ 24 $ 87 $ 648 100% (1) Of the SBL commercial mortgage and SBL construction loans, $162 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans that do not qualify for true sale accounting. Top 10 SBL loans as of September 30, 2025 (Excludes government guaranteed portion of SBA 7(a) Program loans and Other loans) Type State Balance (Dollars in millions) General line grocery merchant wholesalers CA $ 13 Funeral homes and funeral services ME 12 Funeral homes and funeral services PA 12 Outpatient mental health and substance abuse center FL 10 Hotel FL 8 Funeral homes and funeral services ME 8 Lawyer's office CA 8 Hotel VA 7 Hotel NC 7 Charter bus industry NY 6 Total $ 91 Commercial Real Estate Bridge Lending Commercial real estate bridge lending, excluding SBA loans, are as follows: Type as of September 30, 2025 Type # Loans Balance Weighted average origination date LTV Weighted average interest rate (Dollars in millions) Real estate bridge loans (multifamily apartment loans recorded at amortized cost)(1) 178 $ 2,132 70% 8.48% Real estate bridge loans (non-SBA), at fair value 5 71 66% 6.60% Total commercial real estate loans 183 $ 2,203 70% 8.42% (1) In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale but are now being retained on the balance sheet. In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third-party appraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 60%. State diversification as of September 30, 2025 15 largest loans as of September 30, 2025 State Balance Origination date LTV State Balance Origination date LTV (Dollars in millions) (Dollars in millions) Texas $ 618 71% Texas $ 46 75% Georgia 317 70% Texas 41 64% Florida 233 68% Michigan 39 62% New Jersey 138 69% New Jersey 35 62% Indiana 137 71% Florida 35 72% Ohio 120 71% Pennsylvania 34 63% Michigan 75 64% Indiana 34 76% Other states each <$70 million 565 69% Texas 32 67% Total $ 2,203 70% New Jersey 31 71% Texas 31 77% Georgia 30 69% Ohio 29 74% Texas 27 79% New Jersey 26 71% Texas 25 70% 15 largest commercial real estate loans $ 495 70% Institutional Banking Institutional banking loans outstanding at September 30, 2025 Type Principal % of total (Dollars in millions) SBLOC $ 1,137 60% IBLOC 472 25% Advisor financing 286 15% Total $ 1,895 100% SBLOC For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOC loans generally has been less, for two reasons. First, many collateral accounts are “balanced” and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral. Top 10 SBLOC loans at September 30, 2025 Principal amount % Principal to collateral (Dollars in millions) $ 24 10% 10 34% 9 35% 8 83% 8 10% 8 46% 7 20% 7 4% 6 33% 6 37% Total and weighted average $ 93 28% IBLOC IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, ten insurance companies have been approved and, as of October 28, 2025, all were rated A- (Excellent) or better by AM BEST. Direct Lease Financing Direct lease financing by type as of September 30, 2025 Principal balance(1) % Total (Dollars in millions) Government agencies and public institutions(2) $ 131 19% Real estate and rental and leasing 130 19% Construction 124 18% Waste management and remediation services 94 14% Health care and social assistance 29 4% Other services (except public administration) 25 4% Professional, scientific, and technical services 20 3% Transit and other transportation 19 3% Wholesale trade 17 2% General freight trucking 12 2% Arts, entertainment, and recreation 11 2% Finance and insurance 10 1% Other 71 9% Total $ 693 100% (1) Of the total $693 million of direct lease financing, $640 million consisted of vehicle and financing leases with the remaining balance consisting of equipment leases. (2) Includes public universities as well as school districts. Direct lease financing by state as of September 30, 2025 State Principal balance % Total (Dollars in millions) Florida $ 120 17% New York 56 9% Utah 53 8% Connecticut 48 7% California 43 6% Pennsylvania 40 6% Texas 37 5% Maryland 30 4% New Jersey 29 4% North Carolina 21 3% Idaho 19 3% Alabama 17 2% Georgia 16 2% Ohio 15 2% Tennessee 13 2% Other states 136 20% Total $ 693 100% Portfolio Performance Allowance for credit losses Nine months ended Year ended September 30, September 30, December 31, 2025 (unaudited) 2024 (unaudited) 2024 (Dollars in thousands) Balance in the allowance for credit losses at beginning of period $ 44,853 $ 27,378 $ 27,378 Loans charged-off: SBA non-real estate 546 431 708 Direct lease financing 4,416 3,625 4,575 Consumer fintech 142,062 — 19,619 Other loans 924 16 18 Total 147,948 4,072 24,920 Recoveries: SBA non-real estate 73 102 229 Direct lease financing 575 279 318 Consumer fintech 29,580 — 1,877 Other loans 5 1 1 Total 30,233 382 2,425 Net charge-offs 117,715 3,690 22,495 Provision for credit losses on non-consumer fintech loans 8,123 7,316 9,319 Provision for credit losses on consumer fintech loans 128,891 — 30,651 Balance in allowance for credit losses at end of period $ 64,152 $ 31,004 $ 44,853 Net charge-offs/average loans 1.85% 0.07% 0.40% Net charge-offs/average assets 1.30% 0.05% 0.28% Loan delinquency and Non-accrual September 30, 2025 30-59 days 60-89 days 90+ days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ — $ — $ 2 $ 7,125 $ 7,127 $ 215,806 $ 222,933 SBL commercial mortgage — — — 16,178 16,178 713,442 729,620 SBL construction — — — 2,917 2,917 31,601 34,518 Direct lease financing 2,422 8,045 251 5,896 16,614 676,708 693,322 SBLOC / IBLOC 3,922 — 1,184 446 5,552 1,603,495 1,609,047 Advisor financing — — — — — 285,531 285,531 Real estate bridge loans — 19,372 17,942 36,677 73,991 2,057,698 2,131,689 Consumer fintech 20,439 1,951 1,163 — 23,553 761,492 785,045 Other loans 75 — 3 147 225 164,262 164,487 Unamortized loan fees and costs — — — — — 16,445 16,445 $ 26,858 $ 29,368 $ 20,545 $ 69,386 $ 146,157 $ 6,526,480 $ 6,672,637 Other loan information Of the $55.1 million special mention and $130.2 million substandard loans real estate bridge loans at September 30, 2025, none were modified in the third quarter of 2025. Other real estate owned year to date activity Nine months ended September 30, 2025 Beginning balance $ 62,025 Transfer from loans, net 2,401 Total realized net gains included in earnings: Non-interest expense - other 594 Sales (4,926) Advances 1,880 Ending balance $ 61,974 Other real estate owned includes a REBL apartment building rehabilitation bridge loan with a balance of $43.0 million and $41.1 million as of September 30, 2025, and December 31, 2024, respectively. As of September 30, 2025, the majority of capital improvements on the property have been completed. Third-party appraisals on the property as of June 30, 2025, for “as stabilized” and "as is" values are $59.1 million and $51.4 million, respectively, or respective LTVs of 73% and 83%. As previously disclosed, in June 2025, the Company terminated a pending agreement of sale for the property and demanded the escrow agent release to Company all earnest money deposits received to date, totaling $3.0 million. On June 26, 2025, without providing any legal or contractual basis to do so, the purchaser objected to the release of the earnest money deposits. In the third quarter of 2025, the matter was settled for $2.3 million which was recognized in other non-interest income. Asset Quality Ratios September 30, June 30, December 31, September 30, 2025 2025 2024 2024 Nonperforming loans to total loans 1.35% 0.96% 0.55% 0.52% Nonperforming assets to total assets 1.77% 1.45% 1.14% 1.28% Allowance for credit losses to total loans 0.96% 0.91% 0.73% 0.52% Non-GAAP Financial Measures Calculation of efficiency ratio The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. 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. Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 (Dollars in thousands) Net interest income $ 94,197 $ 93,732 $ 283,432 $ 281,945 Non-interest income 80,416 32,108 247,801 92,212 Less: Consumer fintech loan credit enhancement (39,790) — (128,891) — Adjusted total revenue(1) $ 134,823 $ 125,840 $ 402,342 $ 374,157 Non-interest expense $ 56,404 $ 53,255 $ 166,921 $ 151,413 Efficiency ratio 42% 42% 41% 40% (1) Excludes consumer fintech loan credit enhancement income which represents the amount of consumer fintech loan charge-offs that we expect to recover under third-party contracts. The provision for those loans correlates to a like amount of credit enhancement income. Source: The Bancorp, Inc.