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The Bancorp Reports 1Q 2026 EPS of $1.41, ROA of 2.57%, and ROE of 35.1% Driven by Strong Growth in Loans, Deposits and Payments Volume, and Supported by Continued Improvement in Credit Performance

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  • The Bancorp, Inc. reported First Quarter 2026 net income of $60.1 million, an 18% increase from $57.2 million in 1Q 2025.
  • Earnings per diluted share ("EPS") reached $1.41 in 1Q 2026, up from $1.19 in the prior year period.
  • Return on equity rose to 35.1% in 1Q 2026 compared to 28.6% in 1Q 2025, while return on assets increased to 2.57% from 2.49%.
  • Net interest income decreased to $88.8 million from $91.7 million in 1Q 2025, driven by lower rates on non-fintech loans and a portfolio shift toward fee-based fintech products.
  • Net interest margin narrowed to 3.87% in 1Q 2026 from 4.07% in 1Q 2025 due to portfolio mix changes and timing of rate adjustments.
  • Ending loans, net of deferred fees, grew 22% year-over-year to $7.75 billion, with fintech loans surging 187% to $1.65 billion, representing 20.9% of the total portfolio.
  • Gross dollar volume ("GDV") for prepaid, debit, and credit cards totaled $52.51 billion, an 18% increase from 1Q 2025.
  • Fees on consumer credit from fintech loans increased 55% year-over-year to $5.6 million, while total payment fees rose 5% to $32.5 million.
  • Non-interest income was $72.5 million, or 45.0% of total revenue, though excluding credit enhancement income, this portion represented 33.0% of revenue.
  • Real estate bridge loans characterized as criticized assets decreased 70% year-over-year to $59.1 million.
  • The company repurchased 843,061 shares for $50.0 million during the quarter, maintaining an average cost of $59.31 per share.
  • Management reaffirmed 2026 EPS guidance of $5.90 and raised 2027 EPS expectations to a range of $8.10 to $8.30.
  • The outlook includes $200 million in total share repurchases for 2026, with a plan to return nearly 100% of net income through buybacks in subsequent years.
  • Average deposits increased 9% from 4Q 2025 to $8.32 billion, with the average interest rate declining to 1.70%.
  • Total provision for credit losses was $27.6 million in 1Q 2026, a decrease from $46.9 million in 1Q 2025, driven by improved fintech loan performance.
  • Total net charge-offs fell to $30.7 million in 1Q 2026 from $39.1 million in 1Q 2025, resulting in an annualized net charge-off ratio of 1.68%.
  • The efficiency ratio improved to 41.5% in 1Q 2026 from 41.1% in 1Q 2025, reflecting a $2.0 million legal settlement recovery offset by higher salary costs.
  • Book value per share increased to $16.65 at March 31, 2026, from $16.29 at December 31, 2025.
  • Capital ratios remained strong, with Tier 1 capital to risk-weighted assets at 14.06% for The Bancorp Bank, N.A., exceeding "well capitalized" regulatory benchmarks.