WILMINGTON, DE — The Bancorp, Inc. (NASDAQ: TBBK) reported second-quarter 2025 net income of $59.8 million, or $1.27 per diluted share, marking a 21% year-over-year EPS increase and an 11% boost in net income. The rise in earnings per share was driven in part by share repurchases, which reduced outstanding shares by 6% over the year.
CEO Damian Kozlowski credited the quarter’s performance to continued fintech momentum and broader expansion. “We continue to have significant relationship and product expansion that we believe will drive future growth,” he said. “We are also announcing Project 7. We are targeting at least a $7 earnings per share run-rate by the fourth quarter of 2026.”
Return on assets stood at 2.6%, while return on equity reached 28%. Net interest income climbed 4% to $97.5 million, while total non-interest income was lifted by $4 million in consumer fintech loan fees and a $3.1 million one-time gain tied to the final liquidation of legacy commercial real estate assets.
The company’s net interest margin was 4.44%, down from 4.97% in Q2 2024 but up from 4.07% in Q1 2025. Loans rose to $6.54 billion, a 17% year-over-year gain.
The Bancorp’s card-based payment business also showed strong performance. Gross dollar volume on prepaid, debit, and credit cards reached $43.65 billion—an 18% increase from the same period last year. Total card and ACH-related fees rose 14% to $31.7 million.
Consumer fintech lending surged, growing to $680.5 million—a 19% increase over Q1 and a staggering 871% jump from the prior year. The portfolio includes secured credit cards and short-term liquidity loans that carry third-party guarantees against losses.
Additionally, the bank finalized a new five-year card issuing agreement with Block, Inc. (the parent of Cash App), with operations expected to launch in 2026.
Other portfolio movements included:
- Small business loans: Up 11% year over year to $1.05 billion
- Lease financing: Down 2% to $698.1 million
- Real estate bridge loans: Down 3% from Q1 to $2.14 billion
- SBLOC, IBLOC, and advisor loans: Up 4% year over year to $1.87 billion
Deposits averaged $8.06 billion during the quarter, up 20% year over year, with an average interest cost of 2.23%.
The Bancorp’s capital position remains robust. As of June 30, the bank’s Tier 1 leverage ratio was 9.40%, well above the regulatory threshold of 5%. Book value per share climbed to $18.60, up 18% from the prior year.
The company repurchased 753,898 shares at an average price of $49.75 during the quarter. Kozlowski reaffirmed the firm’s 2025 EPS guidance of $5.25 and expressed confidence in hitting the newly announced Project 7 benchmark, citing fintech revenue growth, operational efficiencies, and continued share repurchases as key drivers.
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