Bancorp, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. Guidance figures: 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• EPS rose 18% on higher net income: Diluted EPS was $1.41, up 18% from $1.19 a year earlier. Net income was $60.1 million, against $57.2 million, on 42.6 million diluted shares versus 48.0 million. Source
• Fintech loans reached 20.9% of book: Fintech loans were $1.65 billion, or 20.9% of total loans, up from $574.0 million a year earlier and $1.10 billion at year-end. Management described a continuing shift toward sponsored lending. Source
• Gross dollar volume grew 18%: Prepaid and debit gross dollar volume was $52.51 billion, up 18% from a year earlier. Total fintech fees were $38.1 million, up from $34.4 million, driven by organic volume growth with existing partners. Source
• Margin fell to 3.87% on mix: Net interest margin was 3.87%, down from 4.30% in fourth quarter 2025 and 4.07% a year earlier. Management cited mix and the lag of short-term rates on variable rate loans. Source
• Total provision fell to $27.6 million: Total provision was $27.6 million, down from $41.4 million in fourth quarter 2025 and $46.9 million a year earlier. Non-fintech provision was a $1.3 million reversal, tied to leasing. Source
• Repurchased $50.0 million of stock: The company bought back 843,061 shares, or 2% of shares outstanding, at an average $59.31 for $50.0 million. Shares outstanding fell to 41.859 million since year-end 2025. Source
• 2026 EPS guidance held; 2027 framed as range: Management kept 2026 guidance and gave 2027 EPS as a range. It described the range as generally consistent with the previous target, citing partner timelines for launches. Source
• Three Fintech initiatives drive EPS: Management named three major Fintech initiatives, platform efficiency gains from restructuring and AI tools, and continued buybacks as the drivers of EPS accretion. Source

“We started 2026 with robust above industry trend GDV growth and substantial progress in our Fintech initiatives, as well as strong year-over-year EPS growth,”

Damian Kozlowski, CEO and President of The Bancorp

Guidance

What changed from last quarter

• Guidance kept: 2026 diluted EPS guidance of $5.90 was maintained from the prior release. Source
• Guidance kept: Fourth quarter 2026 EPS is stated as $1.75, where the prior release said at least $1.75. Source
• New: Organization changes produced $1.1 million of costs in the quarter. Source

Results and growth drivers

• EPS rose 18% on higher net income: Diluted EPS was $1.41, up 18% from $1.19 a year earlier. Net income was $60.1 million, against $57.2 million, on 42.6 million diluted shares versus 48.0 million. Source
• Returns on equity and assets rose: Return on equity was 35.1%, up from 28.6% a year earlier, and return on assets was 2.57%, against 2.49%. Book value per share was $16.65 at March 31, 2026. Source
• Non-interest income share of revenue fell: Non-interest income was 45.0% of total revenue, down from 47.7% a year earlier. Excluding credit enhancement income, the share was 33.0%, up from 29.2%. Source

Loans and business lines

• Loans up 22% from a year earlier: Loans net of deferred fees were $7.75 billion, up 9% from year-end and 22% from March 2025. Growth came mainly from fintech loans, SBLOC and IBLOC lines, and small business loans. Source
• Fintech loans reached 20.9% of book: Fintech loans were $1.65 billion, or 20.9% of total loans, up from $574.0 million a year earlier and $1.10 billion at year-end. Management described a continuing shift toward sponsored lending. Source
• Real estate bridge criticized balances fell: Criticized real estate bridge loans fell to $59.1 million from $83.5 million at 4Q 2025, a 29% decrease, and were 70% below the $200.0 million of a year earlier. Source

“We believe our three major Fintech initiatives, along with platform efficiency gains from restructuring and AI tools, plus a high-level of capital return through continued buybacks, will be the driving forces behind EPS accretion.”

Damian Kozlowski, CEO and President of The Bancorp

Payments and fintech fees

• Gross dollar volume grew 18%: Prepaid and debit gross dollar volume was $52.51 billion, up 18% from a year earlier. Total fintech fees were $38.1 million, up from $34.4 million, driven by organic volume growth with existing partners. Source
• Consumer credit fees up 55%: Fees on consumer credit from fintech loans rose to $5.6 million from $3.6 million a year earlier and $4.5 million in fourth quarter 2025. Source
• Credit enhancement income fell: Credit enhancement income, from third-party agreements covering fintech loan losses, was $28.8 million. That compares with $40.4 million in fourth quarter 2025 and $45.9 million a year earlier. Source

Net interest margin and income

• Margin fell to 3.87% on mix: Net interest margin was 3.87%, down from 4.30% in fourth quarter 2025 and 4.07% a year earlier. Management cited mix and the lag of short-term rates on variable rate loans. Source
• Net interest income declined: Net interest income was $88.8 million, down from $92.1 million in fourth quarter 2025 and $91.7 million a year earlier. The company attributed the decline to lower non-fintech loan rates and a shift to fintech loans. Source
• Deposit cost fell 53 basis points: Average deposit rate was 1.70%, down 7 basis points from fourth quarter 2025 and 53 basis points from a year earlier, which management attributed to deposit mix and short-term rates. Source

Costs, efficiency and tax

• Efficiency ratio improved to 41.5%: Efficiency ratio was 41.5%, against 42.5% in fourth quarter 2025 and 41.1% a year earlier. Non-interest expense was $55.0 million, down $1.2 million from fourth quarter. Source
• Legal settlement swung to recovery: A $2.0 million legal settlement expense in fourth quarter became a $2.0 million insurance-related recovery in the first quarter, a $4.0 million favorable variance from the prior quarter. Source
• Organization changes added salary costs: Salary and benefits rose $3.8 million from a year earlier, including $1.1 million tied to organization changes and $1.8 million of higher incentive accruals. Source
• Effective tax rate eased to 23.7%: Effective tax rate was 23.7%, down from 24.9% in fourth quarter 2025 and 24.0% a year earlier. Management attributed the change to vesting of stock awards. Source

Credit quality

• Total provision fell to $27.6 million: Total provision was $27.6 million, down from $41.4 million in fourth quarter 2025 and $46.9 million a year earlier. Non-fintech provision was a $1.3 million reversal, tied to leasing. Source
• Net charge-offs fell to 1.68%: Net charge-offs were $30.7 million, or 1.68% of average loans annualized, against 2.29% in fourth quarter 2025. Management attributed the improvement to fintech loan performance. Source
• Allowance and criticized assets lower: Allowance was $63.0 million, or 1.81% of fintech loans and 0.54% of non-fintech loans. Total criticized assets were $163.1 million, down 16% from $194.5 million. Source

Deposits and funding

• Fintech supplies most deposits: Fintech partnerships generate 93% of total deposits, in low balance insured accounts. Management said these do not carry the liquidity risk of branch deposit franchises. Source
• Off-balance sheet deposits reached $1.34B: Off-balance sheet deposits were $1.34 billion, swept to other institutions to manage balance sheet composition, up from $849.9 million at December 31, 2025. Source
• Borrowing capacity of $2.98 billion: Short-term borrowings were $470.0 million under Federal Reserve and FHLB lines, and $2.98 billion of additional capacity remained against pledged loans and securities. Source

Capital, buybacks and guidance

• Repurchased $50.0 million of stock: The company bought back 843,061 shares, or 2% of shares outstanding, at an average $59.31 for $50.0 million. Shares outstanding fell to 41.859 million since year-end 2025. Source
• Bank capital above well-capitalized: The Bank's CET1 ratio was 14.06% and leverage ratio 9.18%, while the company's CET1 ratio was 11.21%. Both sit above well-capitalized benchmarks. Source
• 2026 EPS guidance held; 2027 framed as range: Management kept 2026 guidance and gave 2027 EPS as a range. It described the range as generally consistent with the previous target, citing partner timelines for launches. Source

Strategy and fintech initiatives

• Three Fintech initiatives drive EPS: Management named three major Fintech initiatives, platform efficiency gains from restructuring and AI tools, and continued buybacks as the drivers of EPS accretion. Source
• Credit enhancements cover fintech loans: All fintech loans are covered by credit enhancements, under which partners provide financial protection against consumer credit losses. Source
• Secured cards and short-term liquidity products: Fintech loans comprised $1.22 billion of secured credit card accounts and $427.3 million of short-term liquidity products, with product maturities from 30 to 365 days. Source

Figures management reported

Risks management discussed

• Operational: Timing of new product and program launches depends on partner timelines, which management said may affect the 2027 EPS range. Source
• Financial: Fintech credit exposure is covered by partner credit enhancement and cash collateral, which management said equals expected losses on amounts already lent. Source
• External: Net interest margin declined on mix and on the lagged timing of short-term rates for variable rate loans. Source

Earlier plans management reported on

• Not stated: Management said it maintained the 2026 and fourth quarter 2026 EPS guidance. No delivery status was stated. Source
• Not stated: Management kept $200 million of 2026 repurchases, $50 million a quarter. The first quarter repurchase of $50.0 million is reported without a stated status. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.