The Bancorp Q2 net income rises

Overview

• The Bancorp Q2 net income rises 11% yr/yr to $59.8 mln

• EPS for Q2 increases 21% to $1.27, reflecting reduced outstanding shares

• Net interest income grows 4% to $97.5 mln

Outlook

• Company maintains 2025 EPS guidance at $5.25

• The Bancorp targets $7 EPS run-rate by Q4 2026

• Expansion of services to Block Inc expected in 2026

• Company sees fintech growth driving future results

Result Drivers

• FINTECH LOAN GROWTH - Consumer fintech loans increased 871% yr/yr, contributing significantly to non-interest income

• CRE-2 INTEREST INCOME - Final sale of collateral from discontinued CRE securitization business added $3.1 mln to interest income

• CARD VOLUME EXPANSION - Gross dollar volume from prepaid, debit, and credit cards rose 18%, driven by organic growth and new product launches

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Bancorp Inc is $65.00, about 6.9% below its July 23 closing price of $69.50

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw4xlwzWa