Bancorp (TBBK) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: N/A
• Average Volume (3M): 645.74K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.11
• Revenue Growth: 25.43%
• EPS Growth: 21.96%
• Country: US
• Employees: 771
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.27
• Shares Outstanding: 46,065,384
• 10 Day Avg. Volume: 539,065
• 30 Day Avg. Volume: 645,736
• PEG Ratio: 0.52
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 11.83
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $76.00
• Price Target Upside: -0.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $87.00 ▲(14.26% Upside)

Bancorp's overall stock score is driven by strong financial performance and strategic corporate events that enhance its growth potential. While technical indicators show positive momentum, valuation remains a concern with the P/E ratio suggesting fair value. Earnings call insights highlight both growth opportunities and risks, particularly in the fintech sector.

Bancorp Business Overview & Revenue Model

Company Description

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank that provides banking products and services in the United States. The company offers a range of deposit products and services, including checking, savings, money market, and commercial accounts; and prepaid and debit cards. It also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; institutional banking services; vehicle fleet, other equipment leasing, and commercial fleet leasing services consist of commercial vehicles, including trucks and special purpose vehicles, and equipment; and real estate bridge lending, as well as small business administration, commercial mortgage-backed, and commercial real estate loans. The company offers private label banking; credit and debit card payment processing services for independent service organizations; and internet banking services. The Bancorp, Inc. was incorporated in 1999 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees for services provided. The major revenue streams include interest earned on commercial and consumer loans, which is a significant part of their earnings, and interest from securities and other investments. Additionally, Bancorp earns fees from various banking services such as account maintenance, transaction processing, and ATM services. The company may also benefit from partnerships with other financial institutions or fintech companies, which can enhance its service offerings and expand its customer base, contributing to overall revenue growth.

Bancorp Financial Statement Overview

Summary

Bancorp demonstrates strong financial health with robust profitability, efficient operations, and prudent leverage management. While there are slight declines in some margins, the company maintains a solid growth trajectory and effective cash flow management.

Income Statement

Bancorp's income statement shows strong profitability with a consistent net profit margin above 27% and a healthy revenue growth rate of 7.78% in the TTM period. The gross profit margin remains robust, although it has slightly decreased over the years. EBIT and EBITDA margins are solid, indicating efficient operations. However, the slight decline in margins over time suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, indicating prudent leverage management. Return on equity is strong at 27.24%, showcasing effective use of equity to generate profits. The equity ratio is not directly provided, but the overall asset base appears well-capitalized. The slight increase in debt over time warrants monitoring.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 24.98% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is modest, suggesting room for improvement in cash conversion. The free cash flow to net income ratio is nearly 1, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	815.78M	710.11M	611.60M	413.98M	326.86M	295.40M
Gross Profit	515.89M	495.38M	447.82M	347.42M	315.63M	273.13M
EBITDA	304.51M	296.31M	259.85M	181.21M	147.47M	112.04M
Net Income	224.42M	217.54M	192.30M	130.21M	110.65M	80.08M
Balance Sheet
Total Assets	8.84B	8.73B	7.71B	7.90B	6.84B	6.28B
Cash, Cash Equivalents and Short-Term Investments	1.82B	620.77M	1.79B	1.65B	1.56B	1.55B
Total Debt	123.69M	123.70M	147.82M	122.48M	151.60M	151.99M
Total Liabilities	7.98B	7.94B	6.90B	7.21B	6.19B	5.70B
Stockholders Equity	860.27M	789.78M	807.28M	694.03M	652.45M	581.16M
Cash Flow
Free Cash Flow	350.13M	222.68M	174.03M	114.48M	82.34M	116.95M
Operating Cash Flow	355.82M	227.65M	186.72M	119.61M	83.89M	120.69M
Investing Cash Flow	-854.87M	-1.51B	415.55M	-826.73M	-305.90M	-1.23B
Financing Cash Flow	433.73M	812.74M	-452.37M	993.52M	478.28M	509.02M

Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBK, the sentiment is Positive. The current price of 76.14 is below the 20-day moving average (MA) of 76.56, above the 50-day MA of 71.74, and above the 200-day MA of 58.72, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 37.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TBBK.

Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	81 Outperform	$3.54B	11.73	18.38%	3.18%	3.10%	3.14%
INDB	79 Outperform	$3.46B	15.68	6.29%	3.37%	3.67%	-10.83%
TBBK	78 Outperform	$3.51B	16.37	27.41%	―	25.43%	21.96%
FIBK	73 Outperform	$3.34B	14.36	6.91%	5.90%	-2.11%	-8.95%
FULT	71 Outperform	$3.34B	10.75	10.08%	3.92%	17.61%	1.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RNST	67 Neutral	$3.50B	14.53	5.21%	2.39%	21.87%	-3.27%

Bancorp Corporate Events

Bancorp Completes $200 Million Senior Note Offering

On August 18, 2025, The Bancorp, Inc. announced the completion of a $200 million senior note offering with a 7.375% interest rate due in 2030. The proceeds will be used to redeem existing notes, fund a share repurchase program, and support general corporate purposes, including growth capital for its subsidiary, The Bancorp Bank, N.A. This strategic financial move is expected to strengthen the company’s financial position and support its growth initiatives.

Bancorp Credit Ratings Upgraded by Kroll Bond Agency

On August 4, 2025, The Bancorp, Inc. announced that Kroll Bond Rating Agency, LLC upgraded its long- and short-term credit ratings, reflecting the company’s strong position in the banking as a service industry. The upgrades, which include improvements in senior unsecured and subordinated debt ratings, underscore The Bancorp’s robust non-interest income growth and above-peer capital levels, enhancing its market positioning and stability outlook.

Bancorp Reports Strong Q2 2025 Financial Performance

The Bancorp, Inc. reported a strong financial performance for the second quarter of 2025, with a net income of $59.8 million, marking an 11% increase from the previous year. The company saw significant growth in consumer fintech loans, which surged by 871% year-over-year, and an 18% increase in gross dollar volume from card services. The Bancorp’s strategic initiatives, such as share repurchases and expansion of services with Block, Inc., are expected to drive future growth and enhance shareholder value. The company maintains a robust capital position, with key financial ratios well above regulatory requirements.

Bancorp Expands Partnership with Block for Card Issuance

On July 10, 2025, The Bancorp, Inc. announced an amendment to its Master Services Agreement with Block, Inc., enhancing their partnership to include debit and prepaid card issuance for Cash App customers. This expansion, set to begin in 2026, signifies a strategic move to strengthen Bancorp’s position in the financial services market and potentially broaden its customer base through Block’s platform.

Bancorp Increases Share Repurchase Program to $500M

On July 7, 2025, Bancorp, Inc.’s Board of Directors authorized an increase in the company’s share repurchase program, allowing up to $500 million in repurchases by the end of 2026. This move, funded by cash and refinancing of debt, aims to enhance shareholder value, though the company retains flexibility regarding the timing and amount of repurchases based on market conditions.