WILMINGTON, DE — The Bancorp, Inc. (NASDAQ: TBBK) received a series of credit rating upgrades from Kroll Bond Rating Agency, LLC (KBRA), reflecting the company’s strong position in the banking-as-a-service (BaaS) sector, solid capital metrics, and rising non-interest income.
For the parent company, KBRA raised the senior unsecured debt rating from BBB to BBB+, the subordinated debt rating from BBB– to BBB, and the short-term debt rating from K3 to K2. The Bancorp Bank, N.A., the company’s wholly owned banking subsidiary, also saw multiple upgrades: its deposit and senior unsecured debt ratings were lifted from BBB+ to A–, while its subordinated debt rating moved up to BBB+ from BBB. The bank’s short-term deposit and debt ratings of K2 were affirmed.
In tandem with the upgrades, KBRA revised its outlook on all long-term ratings to Stable from Positive.
According to KBRA, the improvements are driven by The Bancorp’s leadership in the BaaS space, especially in prepaid and debit cards. The agency noted that the Bank is the largest issuer of prepaid cards in the U.S. by transaction volume.
The ratings agency also highlighted The Bancorp’s notable non-interest income performance. In the first half of 2025, the company reported $78 million in fee revenues, marking a 30% year-over-year increase and representing 1.7% of average assets—well above peer averages.
Capital strength remains another differentiator. As of the second quarter, the company reported a Common Equity Tier 1 (CET1) capital ratio of 14.4%, outpacing comparable institutions.
KBRA emphasized that its credit ratings are independent opinions, not investment advice, and should not be interpreted as statements of fact. Nonetheless, the ratings boost underscores The Bancorp’s operational resilience and strategic positioning in a rapidly evolving digital banking environment.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.