The Bancorp (TBBK) investor relations material

Executive summary

• EPS rose 18% year-over-year to $1.41, with ROE at 35.1% and ROA at 2.57%, driven by strong loan, deposit, and payments growth, and improved credit performance.

• Ranked #1 U.S. issuer of prepaid cards and #6 in debit and prepaid issuer volume as of April 2025.

• Business model combines fintech sponsorship with specialized lending, including real estate, small business, fleet management, and institutional banking.

• Continued onboarding and expansion of fintech programs, including the launch of the Cash App program and platform efficiency initiatives.

• Fintech initiatives and AI tools are expected to drive future EPS growth.

Financial highlights

• Net interest income was $88.8 million, with net interest margin at 3.87%, down from prior quarters due to loan mix shift and lower short-term rates.

• Revenue grew 15% year-over-year, driven by fintech initiatives and strong GDV growth of 18%.

• Ending loans reached $7.75 billion, up 9% linked-quarter and 22% year-over-year.

• Off-balance sheet deposits rose to $1.34 billion from $850 million in Q4 2025.

• Efficiency ratio was 41.5%, with total non-interest expense at $55.0 million, mainly from higher salaries and incentive accruals.

Outlook and guidance

• 2026 EPS guidance maintained at $5.90, with Q4 2026 EPS expected at $1.75.

• 2027 EPS projected in the range of $8.10–$8.30, with significant share repurchases planned.

• APEX 2030 strategic plan targets 15–30% annualized EPS growth, focusing on fintech revenue, partnerships, and operational efficiency.

• Embedded finance revenue expected to be minimal in 2026, with more impact in 2027–2028.

• Commitment to returning nearly 100% of net income to shareholders annually.