The Bancorp (TBBK) investor relations material

Executive summary

• Q2 2026 EPS rose 14.2% to $1.45, with net income of $60.7 million and ROE at 34.7%, driven by fintech loan and fee growth, and supported by share repurchases.

• Maintains leadership as #1 U.S. prepaid card issuer and #6 in debit/prepaid volume, with fintech-driven banking and platform solutions.

• Strategic APEX 2030 plan targets 15–30% annualized EPS growth and near 100% net income return to shareholders.

• Cash App ramping up, expected to materially contribute to GDV and profitability by late Q4 2026 and Q1 2027.

Financial highlights

• Net interest income for Q2 2026 was $90.5 million, down 7.2% year-over-year, with NIM at 3.85% due to fintech loan growth and margin compression.

• Non-interest income was $73.0 million, with fintech fees up 14.7% to $40.9 million and non-interest income (excl. credit enhancement) at $47.3 million.

• Average fintech loans reached $1.39B (18% of total), up 159% year-over-year; fintech loans ended at $901.5 million, up 32.5% year-over-year.

• Average deposits increased 4.4% year-over-year to $8.41 billion; cost of deposits decreased to 1.63%.

• Book value per share at period end was $17.19, down from $18.60 year-over-year.

Outlook and guidance

• Full-year 2026 EPS guidance raised to $5.95–$6.05, with Q4 guidance of $1.65–$1.75; 2027 EPS guidance maintained at $8.10–$8.30.

• Growth driven by fintech revenue expansion, new partnerships, embedded finance, and share buybacks.

• NII expected to be flat in the second half of 2026; NIM may compress as fintech lending grows but offset by traditional lending.

• 2026 buybacks forecast at $200M, with future repurchases near 100% of annual net income.