The Bancorp, Inc. ("The Bancorp" or the "Company" or "we" or "our") (NASDAQ:TBBK), a financial holding company, today reported its financial results for the third quarter of 2025.

Highlights

The Bancorp reported net income of $54.9 million, or $1.18 per diluted share ("EPS"), for the quarter ended September 30, 2025, compared to net income of $51.5 million, or $1.04 per diluted share, for the quarter ended September 30, 2024, or an EPS increase of 13%. While net income increased 7% between these periods, outstanding shares were reduced as a result of share repurchases as detailed below.

Return on assets and return on equity for the quarter ended September 30, 2025, amounted to 2.5% and 27%, respectively, compared to 2.5% and 26%, respectively, for the quarter ended September 30, 2024 (all percentages "annualized").

Net interest income increased to $94.2 million for the quarter ended September 30, 2025, compared to $93.7 million for the quarter ended September 30, 2024.

Net interest margin amounted to 4.45% for the quarter ended September 30, 2025, compared to 4.78% for the quarter ended September 30, 2024, and 4.44% for the quarter ended June 30, 2025.

The average interest rate on $7.84 billion of average deposits and interest-bearing liabilities during the third quarter of 2025 was 2.15%. compared to 2.54% for the third quarter of 2024. Average deposits of $7.63 billion for the third quarter of 2025 increased $618.2 million, or 9% over third quarter 2024.

Gross dollar volume ("GDV"), representing the total amounts spent on prepaid, debit and credit cards totaled $44.04 billion for the quarter ended September 30, 2025, an increase of $6.14 billion, or 16%, compared to the quarter ended September 30, 2024. The increase reflected continued organic volume growth with existing partners and products and the impact of new products launched within the past year. Total prepaid, debit card, ACH, and other payment fees increased 10% to $30.6 million for the third quarter of 2025 compared to the third quarter of 2024.

Loans, net of deferred fees and costs were $6.67 billion at September 30, 2025, compared to $5.91 billion at September 30, 2024 and $6.54 billion at June 30, 2025. Those changes reflected an increase of 2% quarter over linked quarter and an increase of 13% year over year.

Real estate bridge loans ("REBLs") characterized as criticized assets decreased in the third quarter of 2025 to $185.3 million at September 30, 2025 from $215.8 million at June 30, 2025. Included in the September 30, 2025 balance is $102.0 million of assets under contract and expected to close during the fourth quarter, thus further reducing the criticized balance if completed.

Consumer fintech loans increased to $785.0 million at September 30, 2025, a 15% increase compared to the $680.5 million balance at June 30, 2025 and increased 180% compared to the September 30, 2024 balance of $280.1 million. Certain loan fees on consumer fintech loans are recorded as non-interest income. Such non-interest income amounted to $4.5 million for the quarter ended September 30, 2025 and $1.6 million for the quarter ended September 30, 2024.

As of September 30, 2025, the Company's Tier 1 capital to average assets (leverage), Tier 1 capital to risk-weighted assets, total capital to risk-weighted assets and common equity Tier 1 to risk-weighted assets ratios were 8.74%, 12.99%, 14.09% and 12.99%, respectively. Those respective ratios for our wholly owned subsidiary, The Bancorp Bank, N.A., at that date were 9.85%, 14.66%, 15.77% and 14.66% compared to well-capitalized minimums of 5%, 8%, 10%, and 6.5%. The Bancorp Bank, N.A. also remains well capitalized under banking regulations.

Book value per common share at September 30, 2025, was $17.48 compared to $16.90 per common share at September 30, 2024, an increase of 3%.

The Bancorp repurchased 2,034,053 shares of its common stock at an average cost of $73.74 per share during the quarter ended September 30, 2025. As a result of share repurchases, outstanding shares, net of treasury shares, at September 30, 2025 amounted to 44.5 million, compared to 48.2 million shares at September 30, 2024, or a reduction of 8%.

"We had another successful quarter as we continue to build new Fintech capabilities and implement and expand partner programs," said Damian Kozlowski, CEO of The Bancorp. He also noted that "We are lowering guidance from $5.25 to $5.10 earnings per share for 2025, primarily due to lower projected balances for our traditional lending businesses and an increased credit provision for leasing as a result of losses on the disposition of previously identified credits in trucking. In addition, we are not giving specific guidance for 2026 other than we are targeting a minimum $7 earnings per share run-rate by the fourth quarter of 2026. We are initiating preliminary guidance for 2027 of $8.25 earnings per share. We believe that our three major Fintech initiatives of credit sponsorship expansion, embedded finance platform development and new program implementations, plus platform efficiency and productivity gains from platform restructuring and new AI tools, and a continued high level of capital return through share buybacks, will contribute to earnings per share accretion. Earnings per share gains are subject to uncertainty, particularly as it relates to the development and implementation timelines in Fintech, and our stock price for buybacks."

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 31, 2025, by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com or you may dial 1.800.549.8228, conference ID 37073. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website (archived for one year) or telephonically until Friday, November 7, 2025, by dialing 1.888.660.6264, playback code 37073#.

About The Bancorp

The Bancorp, Inc. (NASDAQ:TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, N.A, provides a variety of services including providing non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, visit https://thebancorp.com/.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp's business that are not historical facts, are "forward-looking statements." These statements may be identified by the use of forward-looking terminology, including, but not limited to the words "intend," "may," "believe," "will," "expect," "look," "anticipate," "plan," "estimate," "continue," or similar words. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2025, 2026 and 2027 results, including earnings per share accretion, future growth, productivity and efficiency, the expansion, expected timelines and implementation of our Fintech initiatives, the possible benefits of our platform restructuring and adoption of AI tools, and share repurchases. Such forward-looking statements relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp's filings with the Securities and Exchange Commission, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Annual Report on Form 10-K/A, as amended, for the fiscal year ended December 31, 2024 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.

The Bancorp, Inc.
Financial highlights
(unaudited)

	Three months ended				Nine months ended
	September 30,				September 30,
Condensed Consolidated Income Statements	2025		2024		2025		2024
	(Dollars in thousands, except per share and share data)

Net interest income	$	94,197	$	93,732	$	283,432	$	281,945
Provision for credit losses on non-consumer fintech loans		5,755		3,476		8,123		7,316
Provision for credit losses on consumer fintech loans		39,790		—		128,891		—
Provision (reversal) for unfunded commitments		(491)		79		(744)		(340)
Non-interest income
Fintech fees
ACH, card and other payment processing fees		5,077		3,892		15,771		9,856
Prepaid, debit card and related fees		25,513		23,907		77,340		72,948
Consumer credit fintech fees		4,493		1,600		12,063		1,740
Total fintech fees		35,083		29,399		105,174		84,544
Net realized and unrealized gains on commercial
loans, at fair value		1,005		606		1,710		2,205
Leasing related income		1,397		1,072		5,500		2,889
Consumer fintech loan credit enhancement		39,790		—		128,891		—
Other non-interest income⁽¹⁾		3,141		1,031		6,526		2,574
Total non-interest income		80,416		32,108		247,801		92,212
Non-interest expense
Salaries and employee benefits		37,350		33,821		108,153		97,964
Data processing expense		1,259		1,408		3,691		4,252
Legal expense		1,483		1,055		5,303		2,509
FDIC insurance		905		904		3,160		2,618
Software		5,040		4,561		15,197		13,687
Other non-interest expense		10,367		11,506		31,417		30,383
Total non-interest expense		56,404		53,255		166,921		151,413
Income before income taxes		73,155		69,030		228,042		215,768
Income tax expense		18,228		17,513		56,121		54,136
Net income	$	54,927	$	51,517	$	171,921	$	161,632

Net income per share - basic	$	1.20	$	1.06	$	3.69	$	3.18

Net income per share - diluted	$	1.18	$	1.04	$	3.64	$	3.15
Weighted average shares - basic		45,865,172		48,759,369		46,554,311		50,807,021
Weighted average shares - diluted		46,518,125		49,478,236		47,209,469		51,361,104

⁽¹⁾For the three and nine months ended September 30, 2025, includes $2.3 million of income from the release of an earnest money deposit related to the termination of an agreement of sale for a $43.0 million other real estate owned apartment complex property.


Condensed Consolidated Balance Sheets	September 30,		June 30,		December 31,		September 30,
	2025 (unaudited)		2025 (unaudited)		2024		2024 (unaudited)
		(Dollars in thousands, except share data)
Assets:
Cash and cash equivalents
Cash and due from banks	$	10,162	$	11,637	$	6,064	$	8,660
Interest earning deposits at Federal Reserve Bank		74,517		328,628		564,059		47,105
Total cash and cash equivalents		84,679		340,265		570,123		55,765

Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss as of September 30, 2024, and $0 for all other periods presented		1,384,256		1,481,500		1,502,860		1,588,289
Commercial loans, at fair value		142,658		185,476		223,115		252,004
Loans, net of deferred fees and costs		6,672,637		6,535,432		6,113,628		5,906,616
Allowance for credit losses		(64,152)		(59,393)		(44,853)		(31,004)
Loans, net		6,608,485		6,476,039		6,068,775		5,875,612
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock		25,250		16,250		15,642		21,717
Premises and equipment, net		25,947		26,495		27,566		28,091
Accrued interest receivable		43,831		40,607		41,713		42,915
Intangible assets, net		955		1,055		1,254		1,353
Other real estate owned		61,974		66,054		62,025		61,739
Deferred tax asset, net		10,034		12,436		18,874		9,604
Credit enhancement asset		29,318		26,982		12,909		—
Other assets		182,037		166,072		182,687		157,501
Total assets	$	8,599,424	$	8,839,231	$	8,727,543	$	8,094,590

Liabilities:
Deposits
Demand and interest checking	$	7,254,896	$	7,705,813	$	7,434,212	$	6,844,128
Savings and money market		75,901		60,122		311,834		81,624
Total deposits		7,330,797		7,765,935		7,746,046		6,925,752

Short-term borrowings		200,000		—		—		135,000
Senior debt		196,052		96,391		96,214		96,125
Subordinated debenture		13,401		13,401		13,401		13,401
Other long-term borrowings		13,806		13,898		14,081		38,157
Other liabilities		67,206		89,340		68,018		70,829
Total liabilities	$	7,821,262	$	7,978,965	$	7,937,760	$	7,279,264

Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value⁽¹⁾		48,404		48,104		47,713		48,231
Additional paid-in capital		19,400		12,608		3,233		26,573
Retained earnings		951,076		896,149		779,155		723,247
Accumulated other comprehensive income (loss)		8,814		1,609		(17,637)		17,275
Treasury stock at cost⁽²⁾		(249,532)		(98,204)		(22,681)		—
Total shareholders' equity		778,162		860,266		789,783		815,326

Total liabilities and shareholders' equity	$	8,599,424	$	8,839,231	$	8,727,543	$	8,094,590

	September 30,		June 30,		December 31,		September 30,
	2025 (unaudited)		2025 (unaudited)		2024		2024 (unaudited)
⁽¹⁾Common stock
Shares issued		48,404,006		48,104,006		47,713,481		48,230,334
Shares outstanding		44,528,879		46,262,932		47,310,750		48,230,334
⁽²⁾Treasury stock		3,875,127		1,841,074		402,731		—

Average balance sheet and net interest income		Three months ended September 30, 2025					Three months ended September 30, 2024
		(Dollars in thousands; unaudited)
		Average			Average		Average			Average
Assets:		Balance		Interest	Rate		Balance		Interest	Rate

Interest earning assets:
Loans, net of deferred fees and costs⁽¹⁾	$	6,681,717	$	114,841	6.87%	$	6,017,911	$	116,367	7.73%
Leases-bank qualified⁽²⁾		7,579		179	9.45%		5,151		146	11.34%
Investment securities-taxable		1,418,058		17,354	4.90%		1,575,091		19,767	5.02%
Investment securities-nontaxable⁽²⁾		8,385		131	6.25%		2,927		55	7.52%
Interest earning deposits at Federal Reserve Bank		354,991		3,954	4.46%		247,344		3,387	5.48%
Net interest earning assets		8,470,730		136,459	6.44%		7,848,424		139,722	7.12%

Allowance for credit losses		(59,166)					(28,254)
Other assets		308,654					222,646
	$	8,720,218				$	8,042,816

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	7,560,744	$	38,233	2.02%	$	6,942,029	$	42,149	2.43%
Savings and money market		64,529		563	3.49%		65,079		549	3.37%
Total deposits		7,625,273		38,796	2.04%		7,007,108		42,698	2.44%

Short-term borrowings		45,067		495	4.39%		73,480		1,030	5.61%
Long-term borrowings		13,866		197	5.68%		38,235		689	7.21%
Subordinated debentures		13,401		259	7.73%		13,401		297	8.87%
Senior debt		140,992		2,450	6.95%		96,071		1,234	5.14%
Total deposits and liabilities		7,838,599		42,197	2.15%		7,228,295		45,948	2.54%

Other liabilities		62,405					18,362
Total liabilities		7,901,004					7,246,657

Shareholders' equity		819,214					796,159
	$	8,720,218				$	8,042,816
Net interest income on tax equivalent basis⁽²⁾			$	94,262				$	93,774

Tax equivalent adjustment				65					42

Net interest income			$	94,197				$	93,732
Net interest margin⁽²⁾					4.45%					4.78%

⁽¹⁾ Includes commercial loans, at fair value. All periods include non-accrual loans.
⁽²⁾Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024.



Average balance sheet and net interest income	Nine months ended September 30, 2025					Nine months ended September 30, 2024
		(Dollars in thousands; unaudited)
	Average				Average	Average				Average
Assets:	Balance		Interest		Rate	Balance		Interest		Rate

Interest earning assets:
Loans, net of deferred fees and costs⁽¹⁾	$	6,542,172	$	335,831	6.84%	$	5,828,938	$	345,497	7.90%
Leases-bank qualified⁽²⁾		7,058		492	9.29%		4,840		379	10.44%
Investment securities-taxable⁽³⁾		1,456,402		57,874	5.30%		1,255,532		46,921	4.98%
Investment securities-nontaxable⁽²⁾		7,683		367	6.37%		2,905		155	7.11%
Interest earning deposits at Federal Reserve Bank		746,470		24,960	4.46%		486,883		19,948	5.46%
Net interest earning assets		8,759,785		419,524	6.39%		7,579,098		412,900	7.26%

Allowance for credit losses		(52,227)					(27,993)
Other assets		341,661					280,733
	$	9,049,219				$	7,831,838

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	7,906,597	$	126,680	2.14%	$	6,684,671	$	120,405	2.40%
Savings and money market		88,687		2,454	3.69%		58,777		1,453	3.30%
Total deposits		7,995,284		129,134	2.15%		6,743,448		121,858	2.41%

Short-term borrowings		15,334		500	4.35%		55,820		2,344	5.60%
Repurchase agreements		—		—	—		4		—	—
Long-term borrowings		13,957		590	5.64%		38,371		2,060	7.16%
Subordinated debentures		13,401		771	7.67%		13,401		880	8.76%
Senior debt		111,354		4,917	5.89%		95,983		3,701	5.14%
Total deposits and liabilities		8,149,330		135,912	2.22%		6,947,027		130,843	2.51%

Other liabilities		115,916					73,507
Total liabilities		8,265,246					7,020,534

Shareholders' equity		783,973					811,304
	$	9,049,219				$	7,831,838
Net interest income on tax equivalent basis⁽²⁾			$	283,612				$	282,057

Tax equivalent adjustment				180					112

Net interest income			$	283,432				$	281,945
Net interest margin⁽²⁾					4.32%					4.96%

⁽¹⁾ Includes commercial loans, at fair value. All periods include non-accrual loans.
⁽²⁾Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024.
⁽³⁾ The nine months ended September 30, 2025 includes $3.0 million of interest income from a security that was known as "CRE-2" and which relates to the Company's discontinued commercial real estate securitization business. The CRE-2 interest was repaid in the second quarter of 2025 as a result of the final sale of underlying collateral related to that security. CRE-2 was the last security remaining related to the Company's discontinued commercial real estate securitization business.

Capital ratios	Tier 1 capital	Tier 1 capital	Total capital	Common equity
	to average	to risk-weighted	to risk-weighted	Tier 1 to risk
	assets ratio	assets ratio	assets ratio	weighted assets
As of September 30, 2025
The Bancorp, Inc.	8.74%	12.99%	14.09%	12.99%
The Bancorp Bank, National Association	9.85%	14.66%	15.77%	14.66%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%	8.00%	10.00%	6.50%

As of December 31, 2024
The Bancorp, Inc.	9.41%	13.85%	14.65%	13.85%
The Bancorp Bank, National Association	10.38%	15.25%	16.06%	15.25%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%	8.00%	10.00%	6.50%

	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Selected operating ratios
Return on average assets⁽¹⁾		2.50%		2.55%		2.54%		2.76%
Return on average equity⁽¹⁾		26.60%		25.74%		29.32%		26.61%
Net interest margin		4.45%		4.78%		4.32%		4.96%

⁽¹⁾ Annualized.

Book value per share table	September 30,		June 30,		December 31,		September 30,
	2025		2025		2024		2024
Book value per share	$	17.48	$	18.60	$	16.69	$	16.90

Gross dollar volume ("GDV")⁽¹⁾	Three months ended
	September 30,		June 30,		December 31,		September 30,
	2025		2025		2024		2024
		(Dollars in thousands)
Prepaid and debit card GDV	$	44,037,511	$	43,649,005	$	39,656,909	$	37,898,006

⁽¹⁾Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.

Business line quarterly summary:
Quarter ended September 30, 2025
(Dollars in millions)
			Balances
				% Growth
Major business lines	Average approximate rates⁽¹⁾		Total loan portfolio⁽²⁾	Year over Year	Linked quarter annualized
Loans
Institutional banking⁽³⁾	6.5%	$	1,895	6%	5%
Small business lending⁽⁴⁾	7.6%		1,059	12%	9%
Direct lease financing	8.1%		693	(3%)	(3%)
Real estate bridge loans (non-SBA) - recorded at fair value	6.6%		71	nm	nm
Real estate bridge loans - recorded at amortized cost	8.5%		2,132	(3%)	(1%)
Consumer fintech loans - interest bearing	5.1%		105	nm	nm
Consumer fintech loans - non-interest bearing⁽⁵⁾	—		680	nm	nm
Other loans⁽⁶⁾	5.9%		164	nm	(14%)
Unamortized loan fees and costs	—		16	nm	nm
Weighted average yield	6.8%	$	6,815				Non-interest income: Fintech fees
								% Growth
Deposits: Fintech solutions group							Current quarter	Year over Year
Fintech deposits and fees	2.1%	$	7,342	10%	nm	$	35.1	19%

⁽¹⁾Average rates are for the three months ended September 30, 2025.
⁽²⁾Loan and deposit categories are based on period-end and average quarterly balances, respectively. Total loan portfolio includes both loans recorded at amortized cost and loans at fair value.
⁽³⁾Institutional Banking loans are comprised of securities-backed lines of credit ("SBLOC') loans collateralized by marketable securities, insurance-backed lines of credit ("IBLOC") loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.
⁽⁴⁾Small Business Lending ("SBL") is substantially comprised of Small Business Administration ("SBA")-guaranteed loans and includes SBL loans at fair value. Growth rates exclude the impact of $4 million of loans that do not qualify for true sale accounting at September 30, 2025 compared to $4 million at prior quarter end and $28 million at September 30, 2024.
⁽⁵⁾Income related to non-interest-bearing balances is included in non-interest income.
⁽⁶⁾Includes warehouse financing related to loan sales to third-party purchasers of $122.5 million.

Summary of credit lines available

The Bancorp Bank, N.A. maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.


	September 30, 2025
		(Dollars in thousands)
Federal Reserve Bank	$	2,064,218
Federal Home Loan Bank		912,186
Total lines of credit capacity	$	2,976,404

Current balance – Short-term borrowings		200,000
Available capacity	$	2,776,404

Estimated insured vs. uninsured deposits

The vast majority of The Bancorp Bank, N.A.'s deposits are low balance, insured deposits, and accordingly do not constitute the liquidity risk experienced by certain institutions. The deposit base is comprised as follows:


	September 30, 2025
Insured		92%
Low balance accounts⁽¹⁾		3%
Other uninsured		5%
Total deposits		100%

⁽¹⁾Comprised of small balances, such as anonymous gift cards and corporate incentive cards for which there is no identified depositor.

Loan Portfolio	September 30,		June 30,		December 31,		September 30,
	2025 (unaudited)		2025 (unaudited)		2024		2024 (unaudited)
	(Dollars in thousands)

SBL non-real estate	$	222,933	$	204,087	$	190,322	$	179,915
SBL commercial mortgage		729,620		723,754		662,091		665,608
SBL construction		34,518		30,705		34,685		30,158
Small business loans		987,071		958,546		887,098		875,681
Direct lease financing		693,322		698,086		700,553		711,836
SBLOC / IBLOC⁽¹⁾		1,609,047		1,601,405		1,564,018		1,543,215
Advisor financing		285,531		272,155		273,896		248,422
Real estate bridge loans		2,131,689		2,140,039		2,109,041		2,189,761
Consumer fintech⁽²⁾		785,045		680,487		454,357		280,092
Other loans		164,487		169,945		111,328		46,586
		6,656,192		6,520,663		6,100,291		5,895,593
Unamortized loan fees and costs		16,445		14,769		13,337		11,023
Total loans, including unamortized fees and costs	$	6,672,637	$	6,535,432	$	6,113,628	$	5,906,616

⁽¹⁾SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At September 30, 2025 and December 31, 2024, IBLOC loans amounted to $471.6 million and $548.1 million, respectively.
⁽²⁾At September 30, 2025, consumer fintech loans consisted of $416.0 million of secured credit card loans, with the balance comprised of other short-term extensions of credit.

The Bancorp Bank, N.A. emphasizes safety and soundness, and its balance sheet has a risk profile enhanced by the special nature of the collateral supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have experienced various economic stresses.

At September 30, 2025, consumer fintech loans included $416.0 million of secured credit card accounts, which are backed dollar for dollar by cash collateral by each individual cardholder and are required to be repaid in-full monthly. The remaining consumer fintech loans consist of cashflow underwritten short-term liquidity products to individual borrowers ranging in maturities from 30 to 365 days, with The Bancorp Bank, N.A.'s partner(s) providing a full guarantee against losses. The Bancorp Bank, N.A. maintains cash collateral for the expected losses on dollars already lent, as well as right of offset against other revenues generated through those relationships.

The REBL portfolio is largely comprised of rehabilitation bridge loans for apartment buildings. The Company has minimal exposure to non-multifamily commercial real estate such as office buildings. These loans generally have three-year terms with two one-year extension options to allow for the rehabilitation work to be completed and rentals stabilized for an extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders.

The REBL portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While the macro-economic environment has challenged the multifamily bridge space, the stability of the Company's REBL portfolio is evidenced by the estimated values of the underlying collateral. The Company's $2.13 billion REBL portfolio at September 30, 2025 has a weighted average origination date "as is" loan-to-value ratio of 70%, based on third-party appraisals. Further, the weighted average origination date "as stabilized" loan-to-value ratio ("LTV"), which measures the estimated value of the apartments after the rehabilitation is complete, may provide even greater protection.

As part of the underwriting process, The Bancorp Bank, N.A. reviews prospective borrowers' previous rehabilitation experience in addition to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news searches, lien searches, visitations by bank personnel and/or designated engineers, and other information sources. Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early identification of potential issues and expedited action to address on a timely basis.

Operations and ongoing loan evaluation are overseen by multiple levels of management in addition to the REBL team's experienced professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes a separate loan committee specific to REBL, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the REBL team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses methodology, all of which similarly do not report to anyone on the REBL team.

The SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50%-60% LTVs.

Additional details regarding our loan portfolios are included in the following sections of this press release. This press release also discloses in this press release is the summarization of the earnings contributions of our payments businesses, which further enhances The Bancorp's risk profile. The Company's risk profile inherent in its loan portfolios, funding, and earnings levels, may present opportunities to further increase stockholder value, while still prudently maintaining capital levels.

Small Business Lending

Small business loans as of September 30, 2025

	Loan principal
	(Dollars in millions)
Commercial mortgage SBA⁽¹⁾	$	378
Construction SBA⁽²⁾		21
Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans⁽³⁾		121
Non-SBA SBLs		128
Subtotal - SBL loans, excluding guaranteed portion and Other	$	648
U.S. government guaranteed portion of SBA loans⁽⁴⁾		407
Other⁽⁵⁾		4
Total SBL principal	$	1,059

SBL, at amortized cost		987
SBL, included in loans, at fair value⁽⁶⁾		72
Total SBL principal	$	1,059

⁽¹⁾Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50%-60%, to which The Bancorp Bank, N.A. adheres.
⁽²⁾Includes $15 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $6 million in SBA interim loans with an approved SBA post-construction full takeout/payoff.
⁽³⁾Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the borrower must pledge that available collateral to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners.
⁽⁴⁾Includes the portion of SBA 7(a) Program loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.
⁽⁵⁾Comprised of $4 million of loans sold that do not qualify for true sale accounting.
⁽⁶⁾The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated.

Small business loans by type as of September 30, 2025

(Excludes government guaranteed portion of SBA 7(a) Program and Other loans)

	SBL commercial mortgage⁽¹⁾		SBL construction⁽¹⁾		SBL non-real estate		Total		% Total
		(Dollars in millions)
Funeral homes and funeral services	$	45	$	—	$	39	$	84	13%
Hotels (except casino hotels) and motels		83		—		—		83	13%
Full-service restaurants		31		2		3		36	6%
Child day care services		26		—		4		30	5%
Car washes		11		13		—		24	4%
Homes for the elderly		21		—		—		21	3%
Gasoline stations with convenience stores		15		1		—		16	2%
Outpatient mental health and substance abuse centers		15		—		—		15	2%
General line grocery merchant wholesalers		13		—		—		13	2%
Plumbing, heating, and air-conditioning companies		10		—		1		11	2%
Fitness and recreational sports centers		7		—		2		9	1%
Caterers		9		—		—		9	1%
Offices of lawyers		9		—		—		9	1%
Limited-service restaurants		4		—		3		7	1%
All other specialty trade contractors		6		—		1		7	1%
Used car dealers		7		—		—		7	1%
Charter bus industry		6		—		—		6	1%
Lessors of nonresidential buildings		6		—		—		6	1%
General warehousing and storage		6		—		—		6	1%
Automotive body, paint, and interior repair		6		—		—		6	1%
Nursing care facilities		6		—		—		6	1%
Appliance repair and maintenance		6		—		—		6	1%
Residential remodelers		5		—		—		5	1%
Offices of dentists		5		—		—		5	1%
Other⁽²⁾		179		8		34		221	34%
Total	$	537	$	24	$	87	$	648	100%

⁽¹⁾Of the SBL commercial mortgage and SBL construction loans, $162 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans sold that do not qualify for true sale accounting.
⁽²⁾Loan types of less than $5 million are spread over approximately one hundred different business types.

SBL State diversification as of September 30, 2025

(Excludes government guaranteed portion of SBA 7(a) Program loans and Other loans)

	SBL commercial mortgage⁽¹⁾		SBL construction⁽¹⁾		SBL non-real estate		Total		% Total
		(Dollars in millions)
California	$	142	$	7	$	9	$	158	24%
Florida		85		8		5		98	15%
North Carolina		44		—		4		48	7%
New York		41		—		3		44	7%
Texas		30		5		6		41	6%
New Jersey		30		—		9		39	6%
Georgia		29		3		2		34	5%
Pennsylvania		19		—		13		32	5%
Maine		17		—		12		29	4%
Other states		100		1		24		125	21%
Total	$	537	$	24	$	87	$	648	100%

⁽¹⁾Of the SBL commercial mortgage and SBL construction loans, $162 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans that do not qualify for true sale accounting.

Top 10 SBL loans as of September 30, 2025

(Excludes government guaranteed portion of SBA 7(a) Program loans and Other loans)

Type	State	Balance
	(Dollars in millions)
General line grocery merchant wholesalers	CA	$	13
Funeral homes and funeral services	ME		12
Funeral homes and funeral services	PA		12
Outpatient mental health and substance abuse center	FL		10
Hotel	FL		8
Funeral homes and funeral services	ME		8
Lawyer's office	CA		8
Hotel	VA		7
Hotel	NC		7
Charter bus industry	NY		6
Total		$	91

Commercial Real Estate Bridge Lending

Commercial real estate bridge lending, excluding SBA loans, are as follows:

Type as of September 30, 2025

Type	# Loans		Balance	Weighted average origination date LTV	Weighted average interest rate
	(Dollars in millions)
Real estate bridge loans (multifamily apartment loans recorded at amortized cost)⁽¹⁾	178	$	2,132	70%	8.48%
Real estate bridge loans (non-SBA), at fair value	5		71	66%	6.60%
Total commercial real estate loans	183	$	2,203	70%	8.42%

⁽¹⁾In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale but are now being retained on the balance sheet. In addition to "as is" origination date appraisals, on which the weighted average origination date LTVs are based, third-party appraisers also estimated "as stabilized" values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date "as stabilized" LTV was estimated at 60%.

State diversification as of September 30, 2025				15 largest loans as of September 30, 2025

State		Balance	Origination date LTV	State		Balance	Origination date LTV
(Dollars in millions)				(Dollars in millions)
Texas	$	618	71%	Texas	$	46	75%
Georgia		317	70%	Texas		41	64%
Florida		233	68%	Michigan		39	62%
New Jersey		138	69%	New Jersey		35	62%
Indiana		137	71%	Florida		35	72%
Ohio		120	71%	Pennsylvania		34	63%
Michigan		75	64%	Indiana		34	76%
Other states each <$70 million		565	69%	Texas		32	67%
Total	$	2,203	70%	New Jersey		31	71%
				Texas		31	77%
				Georgia		30	69%
				Ohio		29	74%
				Texas		27	79%
				New Jersey		26	71%
				Texas		25	70%
				15 largest commercial real estate loans	$	495	70%

Institutional Banking

Institutional banking loans outstanding at September 30, 2025

Type	Principal		% of total
		(Dollars in millions)
SBLOC	$	1,137	60%
IBLOC		472	25%
Advisor financing		286	15%
Total	$	1,895	100%

SBLOC

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOC loans generally has been less, for two reasons. First, many collateral accounts are "balanced" and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.

Top 10 SBLOC loans at September 30, 2025

	Principal amount		% Principal to collateral
	(Dollars in millions)
	$	24	10%
		10	34%
		9	35%
		8	83%
		8	10%
		8	46%
		7	20%
		7	4%
		6	33%
		6	37%
Total and weighted average	$	93	28%

IBLOC

IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, ten insurance companies have been approved and, as of October 28, 2025, all were rated A- (Excellent) or better by AM BEST.

Direct Lease Financing

Direct lease financing by type as of September 30, 2025

		Principal balance⁽¹⁾	% Total
		(Dollars in millions)
Government agencies and public institutions⁽²⁾	$	131	19%
Real estate and rental and leasing		130	19%
Construction		124	18%
Waste management and remediation services		94	14%
Health care and social assistance		29	4%
Other services (except public administration)		25	4%
Professional, scientific, and technical services		20	3%
Transit and other transportation		19	3%
Wholesale trade		17	2%
General freight trucking		12	2%
Arts, entertainment, and recreation		11	2%
Finance and insurance		10	1%
Other		71	9%
Total	$	693	100%

⁽¹⁾Of the total $693 million of direct lease financing, $640 million consisted of vehicle and financing leases with the remaining balance consisting of equipment leases.
⁽²⁾Includes public universities as well as school districts.

Direct lease financing by state as of September 30, 2025

State		Principal balance	% Total
		(Dollars in millions)
Florida	$	120	17%
New York		56	9%
Utah		53	8%
Connecticut		48	7%
California		43	6%
Pennsylvania		40	6%
Texas		37	5%
Maryland		30	4%
New Jersey		29	4%
North Carolina		21	3%
Idaho		19	3%
Alabama		17	2%
Georgia		16	2%
Ohio		15	2%
Tennessee		13	2%
Other states		136	20%
Total	$	693	100%

Portfolio Performance

Allowance for credit losses		Nine months ended			Year ended
	September 30,		September 30,		December 31,
	2025 (unaudited)		2024 (unaudited)		2024
	(Dollars in thousands)

Balance in the allowance for credit losses at beginning of period	$	44,853	$	27,378	$	27,378

Loans charged-off:
SBA non-real estate		546		431		708
Direct lease financing		4,416		3,625		4,575
Consumer fintech		142,062		—		19,619
Other loans		924		16		18
Total		147,948		4,072		24,920

Recoveries:
SBA non-real estate		73		102		229
Direct lease financing		575		279		318
Consumer fintech		29,580		—		1,877
Other loans		5		1		1
Total		30,233		382		2,425
Net charge-offs		117,715		3,690		22,495
Provision for credit losses on non-consumer fintech loans		8,123		7,316		9,319
Provision for credit losses on consumer fintech loans		128,891		—		30,651

Balance in allowance for credit losses at end of period	$	64,152	$	31,004	$	44,853
Net charge-offs/average loans		1.85%		0.07%		0.40%
Net charge-offs/average assets		1.30%		0.05%		0.28%

Loan delinquency and Non-accrual	September 30, 2025
	30-59 days		60-89 days		90+ days				Total				Total
	past due		past due		still accruing		Non-accrual		past due		Current		loans
SBL non-real estate	$	—	$	—	$	2	$	7,125	$	7,127	$	215,806	$	222,933
SBL commercial mortgage		—		—		—		16,178		16,178		713,442		729,620
SBL construction		—		—		—		2,917		2,917		31,601		34,518
Direct lease financing		2,422		8,045		251		5,896		16,614		676,708		693,322
SBLOC / IBLOC		3,922		—		1,184		446		5,552		1,603,495		1,609,047
Advisor financing		—		—		—		—		—		285,531		285,531
Real estate bridge loans		—		19,372		17,942		36,677		73,991		2,057,698		2,131,689
Consumer fintech		20,439

The Bancorp, Inc. Reports Third Quarter 2025 Financial Results