The Bancorp (TBBK) Q4 2025 earnings summary

Executive summary

• Q4 2025 EPS was $1.28, up 11% year-over-year, with net income of $56.3 million and record ROE of 30.4%, driven by fintech fee growth, platform efficiency, and capital return initiatives.

• Fintech loans now comprise 15.1% of the portfolio, with fintech fees up 48% year-over-year.

• Strategic plan (APEX 2030) targets fintech-dominated growth, operational efficiency, and maximizing shareholder returns.

• Share repurchases totaled $150 million in Q4 and $375 million for the year, reducing outstanding shares by 5%.

• Three main fintech initiatives—credit sponsorship, embedded finance, and new program launches—are positioned for significant future value creation.

Financial highlights

• ROE reached a record 30.4% in Q4 and 28.9% for the full year, with ROA at 2.53% in Q4.

• Loan portfolio grew 16% year-over-year to $7.12 billion, led by a 142% increase in consumer fintech loans.

• Non-interest income (excluding credit enhancement) accounted for just over 30% of revenue in Q4; fintech fees reached $36.0 million.

• Average deposits were $7.6 billion in Q4, with 95% from fintech and 92–94% insured.

• Net interest margin declined to 4.30% from 4.55% year-over-year.

Outlook and guidance

• 2026 EPS guidance is $5.90, with a Q4 2026 target of $1.75 per share; preliminary 2027 EPS guidance is $8.25.

• 2026 buybacks forecast at $200 million, with nearly 100% of earnings to be returned via buybacks in 2027.

• Annualized EPS growth targeted at 15–30%+ through 2030, driven by fintech expansion and operational improvements.

• EPS growth driven by fintech initiatives, platform efficiency, AI tools, and capital return.

• NIM expected to compress near 4% as fee income grows to 35% of total revenue (excluding credit enhancement).