Business Wire·Oct 29, 2026, 4:05 PM ET

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

TBBK

The Bancorp, Inc. reported third quarter 2026 net income of $62.8 million, or $1.53 per diluted share, reflecting a 29.7% year-over-year growth in diluted EPS.
Total non-interest income reached $85.8 million, driven by $41.8 million in total fintech fees and $40.0 million in fintech loan credit enhancement income.
Net interest margin decreased to 3.75% in 3Q 2026 from 4.45% in 3Q 2025, primarily due to a portfolio mix shift toward fee-based fintech loans.
Total loans net of deferred fees and costs increased 8.8% year-over-year to $7.26 billion, with fintech loans growing 19.3% to $936.6 million.
Average deposits rose 10.4% to $8.42 billion, while the average cost of deposits declined to 1.72% from 2.04% in the prior year quarter.
Total provision for credit losses was $40.6 million, with fintech loans accounting for $40.0 million of the total provision.
Total net charge-offs were $40.7 million, resulting in an annualized charge-off ratio of 2.09% compared to 2.50% in 3Q 2025.
The company repurchased 822,229 shares for $50.0 million during the quarter, achieving a year-to-date buyback total of $150.0 million.
Management maintained 2026 Core EPS guidance in the range of $5.95 to $6.05, added 2027 guidance of $7.00 to $7.20, and initiated 2028 preliminary guidance of $8.00 to $8.20.
Total non-interest expense increased to $63.5 million, including $4.3 million in restructuring costs and $1.9 million for a legal settlement accrual.
Core efficiency ratio for the quarter was 42.2%, compared to 41.8% in 3Q 2025 and 41.0% in 2Q 2026.
The Bancorp Bank, N.A. maintained capital ratios well above "Well Capitalized" regulatory benchmarks, with a Tier 1 capital to risk-weighted assets ratio of 14.11%.
Adjusted net income (Non-GAAP) totaled $60.4 million, representing a 9.9% increase from $54.9 million in 3Q 2025.