Bancorp (TBBK) AI Stock Analysis

• Market Cap: $2.47B
• Dividend Yield: N/A
• Average Volume (3M): 635.32K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.11
• Revenue Growth: 29.24%
• EPS Growth: 21.49%
• Country: US
• Employees: 771
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.28
• Shares Outstanding: 43,917,625
• 10 Day Avg. Volume: 547,830
• 30 Day Avg. Volume: 635,321
• PEG Ratio: 0.92
• Price to Book (P/B): 4.48
• Price to Sales (P/S): 4.48
• P/FCF Ratio: 11.66
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.67
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 10.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.43
• Revenue Forecast (FY): $697.60M

• Rating: 67 Neutral
• Price Target: $63.00 ▼(-1.82% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid underlying financial strength and a constructive earnings outlook with significant buybacks and strong ROE. This is partly offset by weakening price trend/negative momentum signals and financial risks highlighted by the 2025 revenue drop and increased leverage; valuation is supportive with a modest P/E.

Positive Factors

High ROE & Margins

Record ROE near 30% indicates efficient capital deployment and strong underlying margins. Sustained high returns support internal capital formation and credible shareholder distributions (buybacks), enabling reinvestment and resilience without frequent external capital needs if profitability endures.

Strong Cash Generation

Operating cash flow > net income and FCF equaling net income signal solid cash conversion. Durable cash generation underpins sustained buybacks, funds fintech platform investment, and provides a liquidity buffer through credit cycles, reducing reliance on unstable funding sources.

Scalable Fintech Fee Platform

Rapid credit sponsorship growth and rising fintech fees reflect a scalable partner model that can shift revenue mix toward recurring, higher-margin fee income. Doubling program scale toward $2–$3B would durablely diversify revenue away from pure interest income sensitivity.

Negative Factors

Sharp 2025 Revenue Decline

A ~20% revenue drop in 2025 raises questions about growth durability; underlying organic revenue ex-credit-enhancement grew only modestly. Slower top-line momentum increases reliance on buybacks and efficiency gains to meet EPS targets and makes long-term earnings more execution-sensitive.

Increased Leverage

A material rise in debt-to-equity to ~0.61 meaningfully increases financial risk relative to recent years. Higher leverage reduces capital flexibility, raises sensitivity to credit losses or rate moves, and constrains the bank's ability to absorb shocks while executing growth initiatives.

Funding & Partner Concentration

Extreme reliance on fintech-sourced deposits and off-balance sweeps concentrates funding and operational risk. Partner flow volatility or contractual changes could quickly shift deposit levels and NIM, making funding stability and margin durability contingent on partner retention and program structure.

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 other financial products. The company earns interest on loans issued to customers, which often includes commercial real estate loans, residential mortgages, and personal loans. Additionally, Bancorp collects fees from various banking services, such as account maintenance fees, transaction fees, and service charges. The company may also earn income through investment securities and treasury management services. Strategic partnerships with other financial institutions and technology providers may enhance Bancorp's service offerings and contribute to its revenue streams, while effective risk management practices help maintain profitability across its lending operations.

Bancorp Financial Statement Overview

Summary

Strong profitability and earnings quality (high margins; operating cash flow > net income in 2025) are tempered by a sharp 2025 revenue decline and a meaningful leverage step-up versus recent years, increasing sensitivity to any slowdown or credit stress.

Income Statement

Profitability is a clear strength, with consistently high margins and solid earnings power (2025 net margin ~33% and EBIT margin ~44%). Over the 2020–2024 period, revenue expanded meaningfully, but 2025 showed a sharp revenue decline (~-20% year over year), which raises questions about near-term growth durability despite still-strong profits.

Balance Sheet

Returns on equity are strong and improving (roughly mid-teens in 2020 to ~33% in 2025), pointing to efficient capital use. The main weakness is a notable shift in leverage: debt-to-equity was low in 2022–2024 (~0.16–0.18) but jumped to ~0.61 in 2025 alongside a drop in equity, signaling a higher-risk balance sheet profile versus recent history.

Cash Flow

Cash generation remains healthy, with operating cash flow exceeding net income in 2025 (about 1.33x) and free cash flow matching net income (1.0x), supporting earnings quality. However, free cash flow fell materially in 2025 (~-31% growth), and cash-flow momentum has been more volatile across the period than the income statement suggests.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	690.46M	710.11M	611.60M	413.98M	326.86M
Gross Profit	512.77M	495.38M	447.82M	347.42M	312.51M
EBITDA	303.04M	296.31M	259.85M	181.21M	147.47M
Net Income	228.21M	217.54M	192.30M	130.21M	110.65M
Balance Sheet
Total Assets	9.35B	8.73B	7.71B	7.90B	6.84B
Cash, Cash Equivalents and Short-Term Investments	1.68B	620.77M	1.79B	1.65B	1.56B
Total Debt	422.37M	123.70M	147.82M	122.48M	151.60M
Total Liabilities	8.66B	7.94B	6.90B	7.21B	6.19B
Stockholders Equity	689.80M	789.78M	807.28M	694.03M	652.45M
Cash Flow
Free Cash Flow	265.01M	222.68M	174.03M	114.48M	82.34M
Operating Cash Flow	265.01M	227.65M	186.72M	119.61M	83.89M
Investing Cash Flow	-1.06B	-1.51B	415.55M	-826.73M	-305.90M
Financing Cash Flow	341.70M	812.74M	-452.37M	993.52M	478.28M

Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 64.17 is above the 20-day moving average (MA) of 59.83, below the 50-day MA of 65.36, and below the 200-day MA of 65.48, indicating a bearish trend. The MACD of -2.59 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 26.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBBK.

Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	79 Outperform	$3.98B	18.13	6.25%	3.05%	11.05%	-10.78%
FBP	77 Outperform	$3.46B	10.19	18.97%	3.38%	2.35%	13.72%
FULT	75 Outperform	$3.81B	10.18	11.71%	3.52%	9.60%	20.38%
FIBK	73 Outperform	$3.66B	12.10	8.95%	5.24%	-5.43%	4.19%
RNST	72 Outperform	$3.70B	18.84	5.52%	2.47%	20.26%	-35.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TBBK	67 Neutral	$2.47B	11.73	30.85%	―	29.24%	21.49%

Bancorp Corporate Events

Bancorp Posts Strong Q4 2025 Results Amid Headwinds

On January 29, 2026, The Bancorp reported fourth-quarter 2025 results showing net income of $56.3 million, or $1.28 per diluted share, up 11% from a year earlier, with a return on assets of 2.53% and return on equity of 30.4%. The quarter was characterized by a strong but slightly compressed net interest margin of 4.30%, robust loan growth to $7.12 billion, and especially rapid expansion in consumer fintech loans, which more than doubled year-on-year to $1.10 billion and helped lift fintech-related fees and total non-interest income to 46.7% of revenue. The bank also reported higher payment activity, with gross dollar volume on prepaid, debit and credit cards rising 16% versus the prior year, while criticized real estate bridge loans fell sharply, suggesting improving credit quality in that portfolio. Management acknowledged that despite record fourth-quarter EPS and ROE, results fell short of internal expectations due to the prolonged government shutdown’s drag on transaction volumes and deposits, delayed contribution from sponsored credit, net interest margin pressure, and an unexpected legal settlement, even as it continued aggressive capital return via $150 million of share repurchases in the quarter, equivalent to about 5% of shares outstanding, underscoring a strategy focused on fintech-driven growth and shareholder returns.

The most recent analyst rating on (TBBK) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Bancorp stock, see the TBBK Stock Forecast page.