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Bancorp
(NASDAQ:TBBK)
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Rating:69Neutral
Price Target:
$55.00
▼(-17.89% Downside)
Action:Downgraded
Date:09/10/26
The score is driven primarily by strong underlying profitability/cash generation and a very constructive earnings outlook with raised guidance and continued capital return plans. Offsetting these positives are weak technicals (price well below major moving averages and negative MACD) and elevated balance-sheet risk from the sharp TTM leverage increase; valuation (low P/E) is supportive but secondary.
Positive Factors
Fintech and payments growth
Rapid fintech loan, fee, and payment-volume growth is expanding Bancorp’s technology-enabled banking platform. Increasing partner activity and scale can strengthen recurring noninterest income, improve operating leverage, and reinforce its position in banking-as-a-service over the next several quarters.
Negative Factors
Sharp leverage increase
The substantial increase in leverage reduces financial flexibility and raises sensitivity to funding costs, liquidity needs, and weaker credit conditions. Although returns on equity are strong, a more leveraged balance sheet could constrain capital allocation and make future earnings less resilient.
Read all positive and negative factors
Positive Factors
Negative Factors
Fintech and payments growth
Rapid fintech loan, fee, and payment-volume growth is expanding Bancorp’s technology-enabled banking platform. Increasing partner activity and scale can strengthen recurring noninterest income, improve operating leverage, and reinforce its position in banking-as-a-service over the next several quarters.
Read all positive factors
Bancorp (TBBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend YieldN/A
Average Volume (3M)601.40K
Price to Earnings (P/E)9.0
Beta (1Y)1.32
Revenue Growth2.65%
EPS Growth13.98%
CountryUS
Employees733
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.39
Shares Outstanding40,786,808
10 Day Avg. Volume515,720
30 Day Avg. Volume601,405
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)4.48
Price to Sales (P/S)4.48
P/FCF Ratio11.98
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue4.71
Enterprise Value/Gross Profit6.69
Enterprise Value/Ebitda11.41
Forecast
1Y Price Target
$80.67Price Target Upside20.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.99
Revenue Forecast (FY)$618.43M
Bancorp Business Overview & Revenue Model
Company Description
The Bancorp, Inc. operates as the parent financial company for The Bancorp Bank, providing a comprehensive range of banking products and services across the United States. Its diverse offerings include various deposit accounts, such as checking, s...
How the Company Makes Money
The Bancorp primarily makes money through (1) net interest income and (2) non-interest income tied to payments and partner-enabled banking programs.
1) Net interest income (interest spread)
- Core mechanism: The bank earns interest and fees on in...
Bancorp Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit EPS growth, very high ROE, robust fintech GDV and fee growth, raised FY26 guidance and tight 2027 preliminary targets, plus continued capital returns and AI-driven efficiency gains. The challenges cited were mostly timing, seasonality and liquidity management items (billing/payment timing change, quarter-to-quarter sweep variability, transient short-term borrowings, and expected NIM mix pressure). These negatives appear manageable and largely explained by seasonality, strategic funding choices, or short-term timing of fintech program ramps.Positive Updates
Earnings and Profitability
EPS of $1.45 in Q2 2026, up 14.2% year-over-year; ROE of 34.7% (roughly three times the banking industry average) with management expecting sizable increases over the next 3 years.
Negative Updates
Period-End Loan Volatility from Billing Timing Change
Ending loans declined sequentially due to a one-time change in payment/billing timing with a lending partner (accelerated payment due date by 1 day). Management says economics and customer performance were unaffected, but period-end balances were reduced.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and Profitability
EPS of $1.45 in Q2 2026, up 14.2% year-over-year; ROE of 34.7% (roughly three times the banking industry average) with management expecting sizable increases over the next 3 years.
Read all positive updates
Company Guidance
Management raised 2026 EPS guidance to $5.95–$6.05 (targeting Q4 ’26 of $1.65–$1.75) and reiterated preliminary 2027 EPS of $8.10–$8.30; 2026 buybacks are forecast at $200M ($50M/quarter) and future repurchases are expected to be near 100% of annual net income, driving estimated annual EPS accretion of ~5–10% (before net income growth) and a faster buyback cadence (company returned 100% of equity in 4.5 years, expects ~3 years over the next 3 years and ~2 years thereafter).
Those targets are supported by Q2 results: EPS $1.45 (+14.2% YoY), ROE 34.7%, NIM 3.85%, average loans $7.63B (+5% sequential, +16% YoY), average fintech loans $1.39B (18% of loans vs 15% in Q1 and 8% in Q2 ’25), fintech GDV +22.5% YoY, fintech revenue +21% YoY, fintech fees adding 28 bps to NIM (24 bps in prior quarter, 18 bps in Q2 ’25), noninterest income ex-credit enhancement $47.3M (34.3% of revenue; fintech fees 29.7%), noninterest expense $56.5M (efficiency ratio 41%), and $1.1B of off‑balance-sheet sweeps (down 16% Q1, up 32% vs YE ’25).Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 757.15M | 690.46M | 710.11M | 611.60M | 413.98M | 326.86M |
| Gross Profit | 533.13M | 512.77M | 495.38M | 447.82M | 347.42M | 312.51M |
| EBITDA | 312.70M | 307.69M | 296.31M | 259.85M | 181.21M | 147.47M |
| Net Income | 231.94M | 228.21M | 217.54M | 192.30M | 130.21M | 110.65M |
Balance Sheet | ||||||
| Total Assets | 9.22B | 9.35B | 8.73B | 7.71B | 7.90B | 6.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 132.52M | 620.77M | 1.79B | 1.65B | 1.56B |
| Total Debt | 958.26M | 223.37M | 123.70M | 147.82M | 122.48M | 151.60M |
| Total Liabilities | 8.51B | 8.66B | 7.94B | 6.90B | 7.21B | 6.19B |
| Stockholders Equity | 705.38M | 689.80M | 789.78M | 807.28M | 694.03M | 652.45M |
Cash Flow | ||||||
| Free Cash Flow | 163.62M | 257.92M | 222.68M | 174.03M | 114.48M | 82.34M |
| Operating Cash Flow | 166.70M | 265.01M | 227.65M | 186.72M | 119.61M | 83.89M |
| Investing Cash Flow | -579.16M | -1.06B | -1.51B | 415.55M | -826.73M | -305.90M |
| Financing Cash Flow | 152.28M | 341.70M | 812.74M | -452.37M | 993.52M | 478.28M |
Bancorp Technical Analysis
Negative
66.98
Price Trends
59.49
Negative
60.06
Negative
59.95
Negative
Market Momentum
-2.94
Negative
31.09
Neutral
44.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBK, the sentiment is Negative. The current price of 66.98 is above the 20-day moving average (MA) of 49.45, above the 50-day MA of 59.49, and above the 200-day MA of 59.95, indicating a bearish trend. The MACD of -2.94 indicates Negative momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 44.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBBK.
Bancorp Risk Analysis
Bancorp disclosed 1 risk factors in its most recent earnings report. Bancorp reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.60B | 11.97 | 10.91% | 0.35% | 7.11% | 132.73% | |
71 Outperform | $1.49B | 8.96 | 20.58% | 0.28% | 1.95% | 6.07% | |
69 Neutral | $1.97B | 8.95 | 32.32% | ― | 2.65% | 13.98% | |
68 Neutral | $2.50B | 8.72 | 13.57% | ― | 11.55% | 103.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $1.49B | 42.25 | 4.09% | 22.10% | 9.21% | 234.88% | |
56 Neutral | $622.77M | -162.96 | -0.80% | ― | 7.30% | -106.97% |
* Financial Sector Average
TBBK
Bancorp
48.25
-28.11
-36.81%
CASH
Pathward Financial
71.87
-1.85
-2.50%
CUBI
Customers Bancorp
74.04
9.35
14.45%
TFIN
Triumph Financial
62.53
15.30
32.39%
LOB
Live Oak Bancshares
34.48
-1.02
-2.88%
CCB
Coastal Financial
40.74
-64.79
-61.39%
Bancorp Corporate Events
Business Operations and StrategyExecutive/Board Changes
Bancorp Restructuring to Advance Apex 2030 Strategy
Negative
Sep 4, 2026
On September 1, 2026, The Bancorp Bank, N.A. initiated an organizational restructuring to align its operations with the Apex 2030 strategic plan, including a decision to discontinue new retail and wholesale Small Business Lending originations by y...
Business Operations and StrategyFinancial Disclosures
KBRA Affirms The Bancorp Credit Ratings with Stable Outlook
Positive
Aug 3, 2026
On August 3, 2026, The Bancorp, Inc. reported that Kroll Bond Rating Agency affirmed all long- and short-term credit ratings for both the holding company and The Bancorp Bank, N.A., with a stable outlook on long-term ratings. The affirmed grades i...
Business Operations and StrategyStock BuybackFinancial Disclosures
Bancorp boosts Q2 earnings on strong fintech growth
Positive
Jul 30, 2026
The Bancorp reported second-quarter 2026 net income of $60.7 million and diluted EPS of $1.45, up 14.2% from a year earlier, with return on equity rising to 34.7% despite a lower net interest margin. Results were driven by strong loan growth, part...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.