Key Highlights

  • Net income was $62.8 million, or $1.53 per diluted share, up 29.7% in EPS from $1.18.
  • Return on equity was 36.0% and Return on Assets was 2.51%.
  • Fintech fees reached $41.8 million, versus $35.1 million a year earlier.
  • Net interest Margin was 3.75%, down from 4.45% a year ago.
  • Gross dollar Volume on prepaid, debit and Credit cards was $54.3 billion, up from $44.0 billion.

EPS up 29.7% as the share count shrinks

The Bancorp (NASDAQ:TBBK), a Wilmington, Delaware financial Holding Company whose bank issues prepaid, debit and credit cards, reported third quarter 2026 results on October 29, 2026. Net Income was $62.8 million, or $1.53 per diluted share, compared with $60.7 million, or $1.45, in the second quarter and $54.9 million, or $1.18, a year earlier.

Diluted EPS grew 29.7% year over year, outpacing the 14.3% rise in net income on a calculated basis. The gap reflects a smaller share count, with weighted diluted shares at 41.1 million versus 46.5 million.

Return on assets was 2.51%, near flat against 2.50%, while Return on Equity improved to 36.0% from 26.6%. Book Value per share was $16.83, compared with $17.48 a year earlier.

Fintech fees and card volume keep growing

Non-interest income from Fintech fees totaled $41.8 million, up from $35.1 million in the third quarter of 2025 and $40.9 million in the second quarter. Gross dollar volume of cards issued by the bank was $54.3 billion, versus $44.0 billion a year earlier.

CEO Damian Kozlowski said the company continued with strong momentum in Fintech and took actions to support future growth and increasing productivity and efficiency.

Average loans were $7.9 billion versus $6.7 billion, average assets were $9.9 billion versus $8.7 billion, and average deposits were $8.4 billion versus $7.6 billion.

Margin compresses and expenses step up

Net interest income was $90.1 million, down from $94.2 million, even as average loans grew. Net interest margin fell to 3.75% from 4.45%, and from 3.85% in the second quarter.

Total non-interest expense rose to $63.5 million from $56.4 million. The figure includes $4.3 million of costs tied to restructuring the Small Business Lending business line and other departmental reductions, along with a $1.9 million accrual for the estimated cost of a legal settlement.

The provision for credit losses on non-fintech loans was $655 thousand, down from $5.8 million a year ago.

Revenue mix and tax rate on a calculated basis

Net interest income plus fintech fees totaled about $131.9 million, with fintech fees making up roughly 32% of that sum. On the same basis, the effective tax rate was about 12.5% against about 24.9% a year earlier, which helps explain why net income rose faster than pre-tax trends alone would suggest.

Tax credits lower the tax bill

Income tax expense was $8.9 million, versus $18.2 million a year earlier and $20.3 million in the second quarter. As part of its tax strategy, the company purchased transferable tax credits to reduce its cash tax obligation for 2026 and certain eligible prior years.

The third quarter tax line includes $10.3 million of benefits from those credits, of which $3.0 million relates to 2026 and $7.3 million to prior periods. Excluding restructuring, the legal settlement and the prior-period credits, core results differ from GAAP by the per-share amounts of $0.08, $0.04 and negative $0.18.

Readers following the name will likely watch fintech fee growth, margin direction and the effect of the restructuring on expenses.