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Sep 30
Bancorp Q3 2025 Earnings Report
The Bancorp, Inc. reported its financial results for the third quarter of 2025, showing increased net income and EPS compared to the previous year, driven by growth in gross dollar volume and consumer fintech loans, despite a slight decrease in net interest margin.
Key Takeaways
The Bancorp, Inc. delivered a strong third quarter in 2025, with net income rising to $54.9 million and diluted EPS increasing by 13% to $1.18. This performance was bolstered by a 16% increase in Gross Dollar Volume and significant growth in consumer fintech loans. However, the net interest margin saw a slight decline, and the company adjusted its full-year EPS guidance downwards due to traditional lending and leasing credit provisions.
Net income for Q3 2025 increased by 7% to $54.9 million, up from $51.5 million in Q3 2024.
Diluted EPS grew by 13% to $1.18 in Q3 2025, compared to $1.04 in Q3 2024.
Gross Dollar Volume (GDV) reached $44.04 billion, a 16% increase year-over-year, reflecting strong organic growth and new product launches.
The company lowered its 2025 EPS guidance from $5.25 to $5.10, primarily due to lower projected balances in traditional lending and increased credit provision for leasing.
Bancorp
Bancorp
Bancorp Revenue by Segment
Revenue by Segment
Total Fintech Fees Revenue
CapyFin.comACH, Card & Other Payment Processing Fees Revenue
CapyFin.comPrepaid, Debit Card & Related Fees Revenue
CapyFin.comConsumer Fintech Fees Revenue
CapyFin.comLeasing Related Income Revenue
CapyFin.comConsumer Fintech Loan Credit Enhancement Revenue
CapyFin.comNet Realized & Unrealized Gains on Commercial Loans, at Fair Value Revenue
CapyFin.comOther Non-Interest Income Revenue
CapyFin.com Forward Guidance
The Bancorp is lowering its 2025 EPS guidance but is targeting a minimum $7 EPS run-rate by Q4 2026 and initiating preliminary 2027 guidance of $8.25 EPS, driven by Fintech initiatives, platform efficiencies, and continued share buybacks.
Positive Outlook
- Targeting a minimum $7 earnings per share run-rate by the fourth quarter of 2026.
- Initiating preliminary guidance for 2027 of $8.25 earnings per share.
- Expects earnings per share accretion from three major Fintech initiatives: credit sponsorship expansion, embedded finance platform development, and new program implementations.
- Anticipates platform efficiency and productivity gains from platform restructuring and new AI tools.
- Plans for a continued high level of capital return through share buybacks to contribute to EPS accretion.
Challenges Ahead
- Lowering 2025 EPS guidance from $5.25 to $5.10.
- Primary reason for lowered guidance is lower projected balances for traditional lending businesses.
- Increased credit provision for leasing due to losses on the disposition of previously identified credits in trucking.
- Earnings per share gains are subject to uncertainty, particularly related to the development and implementation timelines in Fintech.
- Stock price for buybacks is a factor that could impact EPS gains.