The Bancorp Stock Earnings Reports

The Bancorp reported Q3 2025 results with EPS of $1.18, revenue growth (excluding consumer fintech credit enhancement) of 7% and fintech GDV up 16% year-over-year. Management highlighted three primary fintech initiatives: expanding credit sponsorship balances (up 15% sequentially and 180% YoY), launching an embedded finance platform (expected next year), and onboarding new programs (Cash App revenue expected in Q1 2026). The company is reducing criticized REBL assets (down $31M q/q) and expects further improvements as $102M of those loans are under contract. Under Project 7, the bank will restructure the institutional banking business in Q4 2025, cutting 30 roles to save roughly $8M in run-rate expenses while taking an estimated $1.3M restructuring charge. They’re also deploying an initial AI tool (one-time $300k investment) to reduce financial crimes narrative writing and expect ~ $1.5M in run-rate savings. Management lowered 2025 guidance to roughly $5.10/share primarily due to lower traditional lending balances and higher leasing credit provisions, set a target of a $7 EPS run rate by end of 2026, and provided preliminary 2027 guidance of $8.25 EPS. Deposits showed seasonal/ program-driven variability but liquidity remains ample. Credit headwinds in leasing (transportation/trucking) drove provisions and charge-offs; those portfolios are largely legacy and relatively limited in size. Management reiterated focus on continuing share buybacks (capital return) as a driver of EPS accretion, while noting timing and magnitude depend on program rollouts and stock price.