WILMINGTON, DE — The Bancorp, Inc. (Nasdaq: TBBK) reported a sharp fourth-quarter performance for 2025, delivering higher earnings and aggressive capital returns as growth in its fintech business offset margin pressure and rising costs.
The Wilmington-based financial holding company said fourth-quarter net income totaled $56.3 million, or $1.28 per diluted share, up from $1.15 a share a year earlier. Return on assets reached 2.53 percent, while return on equity climbed to 30.4 percent, reflecting continued profitability despite a modest decline in net interest margin .
Revenue strength was driven largely by fintech activity. Gross dollar volume across prepaid, debit, and credit card programs rose 16 percent from the prior year to $45.87 billion, while total fintech fees increased to $36.0 million for the quarter. Non-interest income accounted for nearly 47 percent of total revenue, highlighting the company’s increasing reliance on fee-based businesses .
Loans continued to expand, with loans net of deferred fees and costs ending the quarter at $7.12 billion, a 16 percent increase from the same period in 2024. Consumer fintech loans surged to $1.10 billion, more than doubling year over year and representing just over 15 percent of the total loan portfolio .
Net interest income declined slightly to $92.1 million as the company faced higher funding costs and a shift toward fintech loans that generate fees rather than interest. Net interest margin narrowed to 4.30 percent from 4.55 percent a year earlier .
Capital return was a defining feature of the quarter. The Bancorp repurchased $150.0 million of its common stock, or about 2.17 million shares, reducing outstanding shares by roughly 5 percent during the quarter. For the full year, share repurchases totaled $375.0 million, significantly shrinking equity while boosting per-share results .
Credit quality showed improvement late in the year, with total criticized assets falling sharply from the previous quarter, driven primarily by reductions in criticized real estate bridge loans. The allowance for credit losses rose to $66.2 million as of December 31, reflecting growth in the loan book and higher fintech exposure .
The company said its bank subsidiary remained well capitalized under federal regulatory standards at year-end. Additional details on the company and its operations are available at https://thebancorp.com/
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