The Bancorp Reports 2Q 2026 EPS of $1.45, ROA of 2.51%, and ROE of 34.7% Driven by Strong Growth in Loans and Fintech Fees; Continued Improvement in Credit and Cost Efficiencies

The Bancorp Reports 2Q 2026 EPS of $1.45, ROA of 2.51%, and ROE of 34.7% Driven by Strong Growth in Loans and Fintech Fees; Continued Improvement in Credit and Cost Efficiencies WILMINGTON, Del.--( BUSINESS WIRE)--The Bancorp, Inc. (NASDAQ: TBBK), a financial holding company, today reported its financial results for the second quarter of 2026, reporting net income of $60.7 million and $1.45 per diluted share for the quarter, reflecting diluted EPS growth of 14.2% from the second quarter of 2025.

“Our performance in the second quarter of 2026 significantly surpassed our own forecasts of profitability and GDV growth, which we believe demonstrates our strong momentum as we head into the second half of the year,” said Damian Kozlowski, President and CEO of The Bancorp. “We are increasing our full-year 2026 EPS guidance to a range of $5.95-$6.05, which includes a range of $1.65-$1.75 in the fourth quarter. We are maintaining our 2027 EPS guidance range of between $8.10-$8.30.”

(Dollars in thousands except per share data and where otherwise noted. Unaudited)

2Q 2026

1Q 2026

2Q 2025

Key Performance Metrics:

Return on assets (1)

2.51

2.57

2.64

Return on equity (1)

34.7

35.1

28.4

Efficiency ratio (2)

41.0

41.5

Net interest margin

3.85

3.87

4.44

Non-interest income as a percentage of total revenue

44.7

45.0

46.2

Non-interest income as a percentage of total revenue (excluding credit enhancement income) (2)

34.3

33.0

29.4

Fintech fees as a percentage of total revenue

25.0

23.6

19.7

Fintech fees as a percentage of total revenue (excluding credit enhancement income) (2)

29.7

28.7

25.8

Book value per share (as of period end)

17.19

16.65

18.60

Results of Operations:

Net income

60,656

60,069

59,821

Net income per share - diluted

1.45

1.41

1.27

Weighted average shares - diluted

41,794,160

42,594,824

47,182,770

Net interest income

90,466

88,814

97,492

Provision (reversal) for credit losses on non-fintech loans

365

(1,348

)

1,494

Non-interest income - total fintech fees

40,894

38,069

35,645

Total non-interest expense

56,476

55,026

57,223

Income tax expense

20,285

18,643

19,828

Volume:

Average loan portfolio (dollars in millions)

7,629

7,255

6,569

Average assets (dollars in millions)

9,704

9,484

9,088

Average deposits (dollars in millions)

8,414

8,317

8,057

Prepaid debit, and credit card gross dollar volume (GDV) (3)

53,452,821

52,512,908

43,649,005

(1)

Annualized.

(2)

See “Non-GAAP Financial Measures” section at the end of the document for detailed description.

(3)

Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.

Earnings Release Conference Call

Management will conduct a conference call to review second quarter of 2026 results at 8:00 AM ET on Friday, July 31, 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 274712196.

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/274712196.

Financial Results:

Loan Portfolio

The following table summarizes our total loan portfolio at June 30, 2026 compared to prior periods:

(in thousands)

June 30,

2026

March 31,

2026

June 30,

2025

Mix

Loans, at amortized cost:

Real estate bridge lending

2,233,688

31.1

2,279,454

28.9

2,140,039

31.8

SBLOC / IBLOC

1,825,301

25.4

1,708,709

21.7

1,601,405

23.8

Small business loans

1,034,264

14.4

998,860

12.7

958,546

14.3

Fintech

901,502

12.5

1,646,600

20.9

680,487

10.1

Direct lease financing

670,902

9.3

678,740

8.6

698,086

10.4

Advisor financing

240,049

3.3

270,811

3.4

272,155

4.0

Other loans

152,604

2.3

155,825

2.0

169,945

2.7

Total loans

7,058,310

98.3

7,738,999

98.2

6,520,663

97.1

Unamortized loan fees and costs

15,596

0.2

14,684

0.2

14,769

0.2

Loans, net of deferred fees and costs

7,073,906

98.5

7,753,683

98.4

6,535,432

97.3

Loans, at fair value:

SBLs, at fair value

60,617

0.8

64,530

0.8

76,830

1.1

Real estate bridge loans (non-SBA), at fair value

53,545

0.7

63,730

0.8

108,646

1.6

Total commercial loans, at fair value

114,162

1.5

128,260

1.6

185,476

2.7

Total loan portfolio

7,188,068

100.0

7,881,943

100.0

6,720,908

100.0

As of June 30, 2026, Loans, net of deferred fees and costs were $7.07 billion, an 8.8% decrease (not annualized) from $7.75 billion at March 31, 2026, and an 8.2% increase compared to $6.54 billion at June 30, 2025. The $679.8 million decrease in Loans, net from March 31, 2026 was primarily driven by a $745.1 million decrease in fintech loans, partially offset by a $116.6 million increase in securities-backed lines of credit (“SBLOC”) and insurance policy cash value-backed lines of credit (“IBLOC”). The decline in Fintech balance compared to prior quarter was primarily attributable to a change in payment processing timing, which impacted period-end balances and did not reflect a change in underlying customer activity. The $538.5 million increase in Loans, net from June 30, 2025 was primarily driven by growth in fintech loans of $221.0 million reflecting the continued growth in sponsored lending, and a $223.9 million increase in SBLOC/IBLOC.

Fintech loans of $901.5 million include $336.3 million from secured credit card accounts and $565.2 million from short-term liquidity products, and account for 12.5% of the total loan portfolio. Secured credit card accounts are backed by cash collateral 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 our partners provide financial protection against consumer credit losses. We maintain cash collateral balances for our fintech partners equivalent to the expected losses on dollars already lent, as well as having the offset rights related to other revenues generated through those relationships.

Average Fintech loans were $1.39 billion, an $853.9 million increase, or 159% from 2Q 2025, and an increase of $275.7 million, or 25% (not annualized), compared to 1Q 2026.

Deposits & Liquidity

Average deposits for 2Q 2026 were $8.41 billion, a 1.2% increase (not annualized) from $8.32 billion in 1Q 2026, and a 4.4% increase from $8.06 billion in 2Q 2025. The increase from 2Q 2025 was primarily driven by continued growth in deposits sourced from our fintech relationships.

The average interest rate on deposits for 2Q 2026 was 1.63%, a 7-basis point decrease compared to 1Q 2026 and a 55-basis point decrease compared to 2Q 2025, 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 low balance, insured deposits, and accordingly, do not constitute the same liquidity risk experienced by traditional branch deposit franchises. As of June 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 June 30, 2026, we had $1.12 billion 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 $1.34 billion as of March 31, 2026 and $617.4 million as of June 30, 2025.

We maintain secured borrowing lines of credit with the Federal Reserve Bank and Federal Home Loan Bank that are collateralized by pledged loans and investments. As of June 30, 2026, we had $744.0 million of short-term borrowings under these facilities, which averaged $302.2 million for 2Q 2026. Based on the current amount of loans and securities pledged, there was $3.79 billion of additional available capacity.

Net Interest Income and Net Interest Margin

Net interest income was $90.5 million for 2Q 2026, compared to $88.8 million for 1Q 2026 and $97.5 million for 2Q 2025. The $1.7 million increase compared to 1Q 2026 was driven primarily by slightly higher interest earning assets. The $7.0 million decrease compared to 2Q 2025 was driven by $2.7 million higher interest cost from senior debt issuance in 3Q 2025, given the higher rate and upsizing, a one-time gain recognized in 2Q 2025 of $3.0 million from the repayment of a CRE-2 investment security, and the remaining decrease 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 3.85% for 2Q 2026, compared to 3.87% for 1Q 2026 and 4.44% for 2Q 2025. The decline from 2Q 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.

Credit Quality

Total Provision, including provision for fintech loans that are supported by credit enhancements, was $26.1 million in 2Q 2026, a $1.5 million decrease compared to $27.6 million in 1Q 2026, and an $18.3 million decrease from $44.4 million in 2Q 2025. Provision expense for non-Fintech loans was $0.4 million in 2Q 2026, compared to a provision release of $(1.3) million in 1Q 2026 and a provision expense of $1.5 million in 2Q 2025. Provision in 2Q 2026 reflects continued improvement in performance of the Leasing, Real estate bridge lending (“REBL”) and Institutional Banking portfolios, while the provision release in 1Q 2026 was primarily driven by improvements in credit performance in our leasing portfolio. Provision for fintech loans was $25.8 million in 2Q 2026, compared to $28.8 million in 1Q 2026 and $43.2 million in 2Q 2025. The lower provision for fintech loans was primarily driven by lower charge-offs and improved credit quality.

The allowance for credit losses was $63.5 million at June 30, 2026, consisting of $30.7 million related to fintech loans, or 3.41% of fintech loans, and $32.8 million for non-fintech loans, or 0.53% of non-fintech loans. That compares to the allowance at March 31, 2026 of $63.0 million, consisting of $29.8 million for fintech, or 1.81% of fintech loans, and $33.2 million for non-fintech, or 0.54% of non-fintech loans. The fintech coverage ratio increase from 1.81% to 3.41% was driven by the previously mentioned customer payment cycle changes that meaningfully reduced the mix of secured credit cards in the total fintech portfolio. Secured credit cards have a low rate of expected loss, and the shift in fintech to more unsecured products resulted in an increase in the ending blended coverage rate. Allowance at June 30, 2025 was $59.4 million, consisting of $27.0 million related to fintech loans, or 3.97% of fintech loans, and $32.4 million allowance for non-fintech loans, or 0.55% of non-fintech loans. The decrease in fintech coverage from 3.97% at June 30, 2025 to 3.41% at June 30, 2026 primarily reflects improved performance of those loans.

Total net charge-offs for 2Q 2026, including fintech loans which are supported by credit enhancements, were $25.7 million, a decrease from $30.7 million for 1Q 2026 and a decrease from $37.8 million for 2Q 2025, resulting in ratios of total net charge-offs to average loans of 1.35%, 1.69%, and 2.30% for the respective periods (annualized). The improvement in net charge-offs was primarily driven by improved performance of the fintech portfolio. Net charge-offs for non-fintech loans were $0.9 million for 2Q 2026, compared to $0.5 million for 1Q 2026 and $1.4 million for 2Q 2025, resulting in ratios of non-fintech net charge-offs to non-fintech average loans of 0.05%, 0.03%, and 0.09% (annualized) for each of the respective periods.

Ending total criticized loans of $146.7 million at 2Q 2026 decreased 10% from $163.1 million at the end of 1Q 2026 primarily driven by a $12.9 million decrease in criticized REBL and a $4.3 million decrease in direct lease financing, partially offset by a $1.3 million increase in criticized small business loans. Ending criticized loans showed significant improvement from $305.2 million at 2Q 2025, with the $158.5 million decrease primarily driven by a $169.6 million decrease in criticized REBL and an $11.1 million decrease in criticized direct lease financing, partially offset by a $21.5 million increase in criticized small business loans.

Non-Interest Income

Non-interest income for 2Q 2026 was $73.0 million, which includes $25.8 million of credit enhancement income compared to $72.5 million in 1Q 2026, which includes $28.8 million of credit enhancement income and $83.7 million in 2Q 2025 which includes $43.2 million of credit enhancement income.

Excluding credit enhancement, non-interest income for 2Q 2026 was $47.3 million, a $3.6 million increase, or 8.2% (not annualized), compared to 1Q 2026, and a $6.8 million increase, or 16.7%, compared to 2Q 2025. The $3.6 million increase compared to 1Q 2026 was primarily driven by a $2.8 million increase in total fintech fees and a $0.8 million increase in other non-interest income, primarily driven by higher other fee income from loans. The $6.8 million increase compared to 2Q 2025 reflects a $5.3 million increase in total fintech fees, driven by organic volume growth with existing partners and products, and our focus on expanding our fintech business. In addition, other non-interest income increased $2.1 million from 2Q 2025, primarily driven by $1.3 million of higher other fee income from loans and $0.7 million earned on deposit sweeps.

Non-interest income mix to total revenue, excluding credit enhancement,* was 34.3% compared to 33.0% in 1Q 2026 and 29.4% in 2Q 2025. Fintech fees as a percentage of total revenue, excluding credit enhancement,* were 29.7% compared to 28.7% in 1Q 2026 and 25.8% in 2Q 2025.

Non-Interest Expense

Total non-interest expense of $56.5 million increased $1.5 million from 1Q 2026 and decreased $0.7 million from 2Q 2025. The increase from 1Q 2026 was primarily driven by a $(2.0) million legal settlement recovery recognized in 1Q 2026. The decrease of $0.7 million from 2Q 2025 was primarily driven by $0.6 million lower legal expense. Revenue growth continues to outpace cost growth, driven by our investments in AI, repositioning our revenues towards Fintech, and the demonstrated scale of our Fintech platform.

Efficiency ratio was 41.0% for 2Q 2026, compared to 41.5% for 1Q 2026 and 41.5% for 2Q 2025.*

Income Taxes

Income tax expense was $20.3 million for 2Q 2026, $18.6 million for 1Q 2026, and $19.8 million for 2Q 2025. Our effective income tax rate was 25.1% for 2Q 2026, 23.7% for 1Q 2026, and 24.9% for 2Q 2025. The relatively lower rate for 1Q 2026 was primarily driven by vesting activity of stock awards in that period.

Capital

As of June 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 for the Bank of 9.09%, 14.27%, 15.32%, and 14.27%, respectively, and for the Company of 7.26%, 11.41%, 12.45%, and 11.41%, respectively.

Book value per common share at June 30, 2026 was $17.19, compared to $16.65 at March 31, 2026 (a 13.0% increase, annualized). Total shareholders’ equity of $705.4 million increased by $8.4 million, primarily driven by $60.7 million of net income partially offset by $50.5 million of share repurchases and excise tax.

Compared to June 30, 2025, total shareholders’ equity decreased by $154.9 million, primarily driven by $403.6 million of share repurchases partially offset by $231.9 million of net income and $19.9 million of stock-based compensation. Outstanding shares decreased 5.219 million shares since June 30, 2025, driven by share repurchases.

Outstanding shares decreased by 815,066 since March 31, 2026 to 41.043 million, driven primarily by share repurchases. During 2Q 2026, we repurchased 870,129 shares of our common stock, or 2.1% of issued and outstanding shares, at an average cost of $57.46 per share, for a total capital return of $50.0 million.

________

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, Small Business Lending, 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 and 2027 results, including earnings per share accretion, future growth, profitability, productivity and efficiency, the expansion, expected timelines, and implementation of our Fintech initiatives and revenue streams, 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 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.

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Dollars in thousands, except share and per share data)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Net interest income

90,466

97,492

179,280

189,235

Provision (reversal) for credit losses on non-fintech loans

365

1,494

(983

)

2,368

Provision for credit losses on fintech loans

25,766

43,233

54,609

89,101

Provision (reversal) for unfunded commitments

(42

)

(364

)

(253

)

Provision for credit losses, total

26,089

44,363

53,690

91,216

Net interest income after provision for credit losses

64,377

53,129

125,590

98,019

Non-interest income:

Fintech fees

ACH, card, and other payment fees

6,559

5,562

12,355

10,694

Prepaid, debit card and related fees

27,790

26,113

54,467

51,827

Consumer credit fintech fees

6,545

3,970

12,141

7,570

Total fintech fees

40,894

35,645

78,963

70,091

Net realized and unrealized gains on commercial loans, at fair value

130

344

136

705

Leasing related income

1,773

2,131

3,674

4,103

Fintech loan credit enhancement

25,766

43,233

54,609

89,101

Other non-interest income

4,477

2,390

8,183

3,385

Total non-interest income

73,040

83,743

145,565

167,385

Non-interest expense:

Salaries and employee benefits

37,426

37,134

74,903

70,803

Data processing expense

1,387

1,227

2,696

2,432

Legal expense

1,221

1,863

2,811

3,820

Legal settlement (reimbursement)

—

(2,000

)

—

FDIC insurance

1,106

1,202

2,357

2,255

Software

5,632

5,144

11,001

10,157

Other non-interest expense

9,704

10,653

19,734

21,050

Total non-interest expense

56,476

57,223

111,502

110,517

Income before income taxes

80,941

79,649

159,653

154,887

Income tax expense

20,285

19,828

38,928

37,893

Net income

60,656

59,821

120,725

116,994

Earnings per share - basic

1.46

1.28

2.89

2.49

Earnings per share - diluted

1.45

1.27

2.86

2.46

Weighted average shares - basic

41,461,889

46,598,535

41,795,740

46,904,592

Weighted average shares - diluted

41,794,160

47,182,770

42,180,516

47,565,580

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

June 30,

2026

March 31,

2026

December 31,

2025

June 30,

2025

Assets:

Cash and cash equivalents

Cash and due from banks

9,527

8,673

8,038

11,637

Interest-earning deposits

70,556

58,510

104,611

328,628

Total cash and cash equivalents

80,083

67,183

112,649

340,265

Investment securities, available-for-sale, at fair value

1,614,890

1,646,541

1,671,750

1,481,500

Commercial loans, at fair value

114,162

128,260

139,389

185,476

Loans, net of deferred fees and costs

7,073,906

7,753,683

7,116,676

6,535,432

Allowance for credit losses

(63,495

)

(63,017

)

(66,200

)

(59,393

)

Loans, net

7,010,411

7,690,666

7,050,476

6,476,039

Stock in Federal Reserve, Federal Home Loan and

Atlantic Central Bankers Banks

50,115

37,785

25,205

16,250

Accrued interest receivable

43,342

41,315

43,090

40,607

Other real estate owned

62,011

60,998

60,695

66,054

Deferred tax asset, net

23,491

21,139

18,679

12,436

Credit enhancement asset

30,733

29,769

31,138

26,982

Other

186,739

175,108

199,354

193,622

Total assets

9,215,977

9,898,764

9,352,425

8,839,231

Liabilities:

Deposits

Demand and interest checking

7,353,151

8,281,037

7,827,037

7,705,813

Savings and money market

123,051

148,988

338,459

60,122

Total deposits

7,476,202

8,430,025

8,165,496

7,765,935

Short-term borrowings

744,000

470,000

199,000

—

Senior debt

196,528

196,320

196,253

96,391

Subordinated debenture

13,401

Other long-term borrowings

4,327

13,626

13,712

13,898

Other liabilities

76,138

78,442

74,767

89,340

Total liabilities

8,510,596

9,201,814

8,662,629

7,978,965

Total shareholders' equity

705,381

696,950

689,796

860,266

Total liabilities and shareholders' equity

9,215,977

9,898,764

9,352,425

8,839,231

AVERAGE BALANCE SHEET - QTD

(Dollars in thousands)

Three months ended June 30, 2026

Three months ended June 30, 2025

Average Balance

Interest

Average

Rate

Average Balance

Interest

Average

Rate

Assets:

Interest-earning assets:

Non-fintech loans

6,231,014

107,634

6.91

6,023,895

111,702

7.42

Fintech loans

1,390,866

2,834

0.82

536,978

486

0.36

Loans, net of deferred fees and costs (1)

7,621,880

110,468

5.80

6,560,873

112,188

6.84

Leases-bank qualified (2)

7,028

146

8.31

7,723

174

9.01

Investment securities-taxable

1,619,710

19,924

4.92

1,462,603

22,393

6.12

Investment securities-nontaxable (2)

12,648

197

6.23

8,385

131

6.25

Interest-earning deposits

155,465

1,386

3.57

756,603

8,326

4.40

Total interest-earning assets

9,416,731

132,121

5.61

8,796,187

143,212

6.51

Allowance for credit losses

(55,726

)

(52,444

)

Other assets

342,586

344,627

Total assets

9,703,591

9,088,370

Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking

8,311,353

33,400

1.61

7,991,121

43,402

2.17

Savings and money market

102,639

934

3.64

65,637

561

3.42

Total deposits

8,413,992

34,334

1.63

8,056,758

43,963

2.18

Short-term borrowings

302,236

2,949

3.90

439

4.56

Long-term borrowings

10,146

147

5.80

13,957

198

5.67

Subordinated debentures

13,401

236

7.04

13,401

257

7.67

Senior debt

196,391

3,917

7.98

96,333

1,233

5.12

Total deposits and liabilities

8,936,166

41,583

1.86

8,180,888

45,656

2.23

Other liabilities

66,260

62,505

Total liabilities

9,002,426

8,243,393

Shareholders' equity

701,165

844,977

9,703,591

9,088,370

Net interest income on tax equivalent basis (2)

90,538

97,556

Tax equivalent adjustment

Net interest income

90,466

97,492

Net interest margin (2)

3.85

4.44

________

(1)

Includes commercial loans, at fair value. All periods include non-accrual loans.

(2)

Full taxable equivalent basis, using 21% statutory federal tax rate.

AVERAGE BALANCE SHEET - YTD

(Dollars in thousands)

Six months ended June 30, 2026

Six months ended June 30, 2025

Average Balance

Interest

Average

Rate

Average Balance

Interest

Average

Rate

Assets:

Interest-earning assets:

Non-fintech loans

6,182,243

213,232

6.90

5,969,155

220,265

7.38

Fintech loans

1,253,763

4,660

0.74

502,087

725

0.29

Loans, net of deferred fees and costs (1)

7,436,006

217,892

5.86

6,471,242

220,990

6.83

Leases-bank qualified (2)

6,975

298

8.54

6,793

313

9.22

Investment securities-taxable

1,640,946

39,844

4.86

1,475,892

40,520

5.49

Investment securities-nontaxable (2)

11,543

362

6.27

7,326

236

6.44

Interest-earning deposits

202,480

3,582

3.54

945,453

21,006

4.44

Total interest-earning assets

9,297,950

261,978

5.64

8,906,706

283,065

6.36

Allowance for credit losses

(55,680

)

(48,700

)

Other assets

362,748

354,939

Total assets

9,605,018

9,212,945

Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking

8,200,639

66,610

1.62

8,082,390

88,447

2.19

Savings and money market

164,954

3,013

3.65

100,966

1,891

3.75

Total deposits

8,365,593

69,623

1.66

8,183,356

90,338

2.21

Short-term borrowings

224,492

4,330

3.86

220

4.55

Long-term borrowings

11,907

344

5.78

14,003

393

5.61

Subordinated debentures

13,401

471

7.03

13,401

512

7.64

Senior debt

196,297

7,792

7.94

96,289

2,467

5.12

Total deposits and liabilities

8,811,690

82,560

1.87

8,307,269

93,715

2.26

Other liabilities

95,739

80,651

Total liabilities

8,907,429

8,387,920

Shareholders' equity

697,589

825,025

9,605,018

9,212,945

Net interest income on tax equivalent basis (2)

179,418

189,350

Tax equivalent adjustment

138

115

Net interest income

179,280

189,235

Net interest margin (2)

3.86

4.25

________

(1)

Includes commercial loans, at fair value. All periods include non-accrual loans.

(2)

Full taxable equivalent basis, using 21% statutory federal tax rate.

BUSINESS LINE QUARTERLY SUMMARY - AVERAGE QTD

(Dollars in thousands)

Three Months Ended

June 30, 2026

March 31, 2026

June 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 - amortized cost

2,226,725

7.88

2,203,082

7.99

2,178,842

8.78

Real estate bridge loans - fair value

58,085

6.96

66,399

6.79

119,746

7.52

SBLOC/IBLOC and Advisor financing

2,034,126

5.74

1,957,376

5.77

1,857,293

6.28

Small business lending

1,075,471

7.26

1,057,893

7.20

1,007,394

7.41

Direct lease financing

675,230

8.02

681,629

8.13

706,326

8.20

Other loans

152,964

5.11

158,114

5.22

148,282

5.50

Unamortized loan fees and costs

15,441

—

15,357

—

13,735

—

Total Credit Solutions

6,238,042

6.99

6,139,850

7.06

6,031,618

7.59

Sponsored Lending:

Fintech loans

1,390,866

0.82

1,115,138

0.65

536,978

0.36

Total loan portfolio

7,628,908

5.81

7,254,988

6.01

6,568,596

6.86

Deposits:

Fintech

8,085,670

1.63

7,775,692

1.64

7,761,241

2.21

Non-fintech

328,322

1.76

540,965

2.57

295,517

1.56

Total deposits

8,413,992

1.63

8,316,657

1.70

8,056,758

2.18

______________

(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.

PORTFOLIO PERFORMANCE

(Dollars in thousands)

Credit Quality

June 30,

2026

March 31,

2026

June 30,

2025

As of period end:

Nonperforming loans to total loans (1)

1.05

0.97

0.96

Nonperforming assets to total assets

1.48

1.37

1.45

Allowance for credit losses to loans outstanding: (1)

Fintech

3.41

1.81

3.97

Non-fintech

0.53

0.54

0.55

Total

0.90

0.81

0.91

Allowance for credit losses to total assets

0.69

0.64

0.67

For the three months ended:

Net charge-offs:

Fintech

24,802

30,211

36,450

Non-fintech

851

467

1,381

Total

25,653

30,678

37,831

Net charge-offs/average loans (annualized)

1.35

1.69

2.30

Net charge-offs/average assets (annualized)

1.06

1.29

1.67

_____________

(1)

Excludes loans recorded at fair value.

Loan Delinquency and Non-Accrual

June 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

—

22,454

2,211,234

2,233,688

SBLOC / IBLOC

3,222

119

—

3,341

1,821,960

1,825,301

Small business loans

1,892

—

40,284

42,176

992,088

1,034,264

Fintech

22,956

4,087

1,798

—

28,841

872,661

901,502

Direct lease financing

1,642

165

506

9,120

11,433

659,469

670,902

Advisor financing

—

240,049

Other loans

431

—

390

822

151,782

152,604

Total loans

30,143

4,371

2,305

72,248

109,067

6,949,243

7,058,310

CAPITAL RATIOS

June 30, 2026

The Bancorp, Inc.

The Bancorp Bank, N.A.

“Well Capitalized" (1)

Tier 1 capital to average assets

7.26

9.09

5.00

Tier 1 capital to risk-weighted assets

11.41

14.27

8.00

Total capital to risk-weighted assets

12.45

15.32

10.00

Common equity Tier 1 to risk-weighted assets

11.41

14.27

6.50

_____________

(1)

“Well Capitalized” institution under federal regulations Basel III.

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 Non-interest income-Fintech loan credit enhancement. That income amount relates to credit enhancement agreements from third parties that cover losses from borrowers for fintech loans receivable. We recognize provision expense for credit losses on fintech loans and separately record an amount in Non-interest income—Fintech loan credit enhancement for the recovery from the third party. 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. Our non-GAAP metrics are calculated to remove the volatility of that credit enhancement recovery from measures used to review the performance and growth of our business.

Non-GAAP measures include:

Efficiency ratio is calculated as: (i) GAAP total non-interest expense; divided by (ii) the total of GAAP Net interest income and Non-interest income less Fintech loan credit enhancement income, or “Adjusted total revenue.” 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.

Total revenue, excluding credit enhancement, is calculated as: the total of GAAP Net interest income and Non-interest income less Fintech loan credit enhancement income. This figure adjusts our total revenue for amounts received related to credit enhancement agreements, to remove the volatility of that credit enhancement recovery when measuring our revenue results.

Non-interest income, excluding credit enhancement, is calculated as: GAAP Non-interest-income less Fintech loan credit enhancement income. This figure adjusts our non-interest income for amounts received related to credit enhancement agreements, to remove the volatility of that credit enhancement recovery when measuring our non-interest income results.

Non-interest income as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest-income less Fintech loan credit enhancement income; divided by (ii) Adjusted total revenue. 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.

Fintech fees as a percentage of total revenue (excluding credit enhancement) is calculated as: (i) GAAP Non-interest income – Total fintech fees; divided by (ii) Adjusted total revenue. This ratio is used to compare the amount of fintech fee revenue to our total revenue each period to review the growth in that revenue area, 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 that may not necessarily be indicative of current 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.

Reconciliation of Non-GAAP Measures:

(Dollars in thousands)

Three months ended

Six months ended

June 30,

2026

March 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Net interest income

90,466

88,814

97,492

179,280

189,235

Non-interest income

73,040

72,525

83,743

145,565

167,385

Total revenue

163,506

161,339

181,235

324,845

356,620

Less: Fintech loan credit enhancement

(25,766

)

(28,843

)

(43,233

)

(54,609

)

(89,101

)

Adjusted total revenue

137,740

132,496

138,002

270,236

267,519

Non-interest income

73,040

72,525

83,743

145,565

167,385

Less: Fintech loan credit enhancement

(25,766

)

(28,843

)

(43,233

)

(54,609

)

(89,101

)

Adjusted non-interest income

47,274

43,682

40,510

90,956

78,284

Non-interest expense

56,476

55,026

57,223

111,502

110,517

Non-interest income - total fintech fees

40,894

38,069

35,645

78,963

70,091

Non-GAAP Measures

Efficiency ratio

E/C

41.0

41.5

41.3

Total revenue, excluding credit enhancement

137,740

132,496

138,002

270,236

267,519

Non-interest income, excluding credit enhancement

47,274

43,682

40,510

90,956

78,284

Non-interest income as a percentage of total revenue

A/B

44.7

45.0

46.2

44.8

46.9

Non-interest income as a percentage of total revenue (excluding credit enhancement)

D/C

34.3

33.0

29.4

33.7

29.3

Fintech fees as a percentage of total revenue

F/B

25.0

23.6

19.7

24.3

19.7

Fintech fees as a percentage of total revenue (excluding credit enhancement income)

F/C

29.7

28.7

25.8

29.2

26.2