WILMINGTON, DE — The Bancorp, Inc. (NASDAQ: TBBK) reported another solid quarter of growth, driven by strong fintech lending activity, higher transaction volumes, and an aggressive share repurchase strategy.
For the third quarter ended September 30, 2025, the financial holding company posted net income of $54.9 million, or $1.18 per diluted share, up from $51.5 million, or $1.04 per share, a year earlier. The 13% earnings-per-share increase reflected both stronger performance and a smaller share base following significant buybacks.
Return on assets remained steady at 2.5%, while return on equity rose to 27%, compared to 26% in the prior-year quarter. Net interest income inched higher to $94.2 million from $93.7 million, with a net interest margin of 4.45%.
Average deposits climbed 9% year over year to $7.63 billion, while the average interest rate paid on deposits and liabilities fell to 2.15%. Gross dollar volume across prepaid, debit, and credit cards jumped 16% to $44.04 billion, underscoring continued fintech momentum. Payment fees increased 10% to $30.6 million, supported by organic growth and new product launches.
Total loans rose to $6.67 billion, a 13% increase from a year earlier. Real estate bridge loans categorized as criticized assets declined to $185.3 million from $215.8 million in the previous quarter, with over half of those assets already under contract for sale.
Consumer fintech lending surged 180% year over year to $785 million, generating $4.5 million in non-interest income during the quarter.
The company’s capital position remains strong, with The Bancorp Bank, N.A. exceeding all well-capitalized regulatory thresholds. Book value per share grew 3% to $17.48.
During the quarter, The Bancorp repurchased over two million shares at an average price of $73.74, reducing outstanding shares by 8% compared to last year.
“We had another successful quarter as we continue to build new Fintech capabilities and expand partner programs,” said CEO Damian Kozlowski. He noted revised 2025 earnings guidance of $5.10 per share, down from $5.25, citing lower traditional lending volumes and higher credit provisions tied to trucking sector losses.
Looking ahead, Kozlowski projected a minimum earnings run rate of $7 per share by late 2026 and preliminary 2027 guidance of $8.25, fueled by fintech initiatives, operational restructuring, AI integration, and continued share repurchases.
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