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Bancorp
(NASDAQ:TBBK)
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Rating:73Outperform
Price Target:
$75.00
▲(11.97% Upside)
Action:Upgraded
Date:07/31/26
The score is driven primarily by solid financial performance (strong profitability/ROE and healthy free cash flow) and a positive earnings outlook with large planned buybacks and raised longer-term EPS expectations. The main constraints are the recent slowdown in reported revenue, a meaningful step-up in leverage, and near-term margin pressure tied to mix shift toward lower-yielding fintech lending. Technicals add support via a clear uptrend, while valuation appears reasonable based on the provided P/E but lacks dividend-yield support.
Positive Factors
High profitability and ROE
Sustained high profitability and a ROE above 30% indicate efficient use of capital and strong core economics. This underpins internal capital generation, funds buybacks and reinvestment, and provides a durable buffer versus cyclical earnings swings while supporting strategic fintech investment.
Negative Factors
Marked increase in leverage
A material step-up in leverage raises funding and solvency sensitivity, reducing cushion against earnings or NIM shocks. Higher debt amplifies volatility in returns, constrains optionality for acquisitions or capital allocation, and elevates refinancing and liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and ROE
Sustained high profitability and a ROE above 30% indicate efficient use of capital and strong core economics. This underpins internal capital generation, funds buybacks and reinvestment, and provides a durable buffer versus cyclical earnings swings while supporting strategic fintech investment.
Read all positive factors
Bancorp (TBBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.79B
Dividend YieldN/A
Average Volume (3M)432.93K
Price to Earnings (P/E)12.4
Beta (1Y)1.28
Revenue Growth2.66%
EPS Growth13.98%
CountryUS
Employees733
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.21
Shares Outstanding41,634,438
10 Day Avg. Volume393,061
30 Day Avg. Volume432,929
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$82.33Price Target Upside22.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.91
Revenue Forecast (FY)$678.76M
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
null...
Bancorp Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook: strong profitability (ROE 35.1%, ROA 2.57%), robust loan and revenue growth, rapid expansion in fintech credit sponsorship balances and fee income, and a clear capital-return plan with substantial share buybacks and maintained EPS guidance. At the same time, management acknowledged near-term margin pressure (NIM down 43 bps Q/Q) driven by mix shifts toward lower-yielding fintech lending and timing risks tied to partner launches and embedded finance monetization, plus some remaining asset-yield compression and operational items (Aubrey stabilization). Overall, the positive items (growth, profitability, fee diversification, buybacks and improving credit metrics) materially outweigh the mentioned challenges, though execution and timing risks remain important to monitor.Positive Updates
Strong Profitability Metrics and EPS Growth
Reported EPS of $1.41 (reference to quarter stated on call) with year-over-year EPS growth of 18%. First quarter ROE was 35.1% and ROA was 2.57%, demonstrating high profitability and capital efficiency.
Negative Updates
Net Interest Margin Decline
Reported NIM was 3.87%, down 43 basis points quarter-over-quarter and down 20 basis points year-over-year. Management cited loan mix shift to credit sponsorship and lagged effects of lower short-term rates as drivers of the decline.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability Metrics and EPS Growth
Reported EPS of $1.41 (reference to quarter stated on call) with year-over-year EPS growth of 18%. First quarter ROE was 35.1% and ROA was 2.57%, demonstrating high profitability and capital efficiency.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of $5.90 EPS (including $1.75 in Q4 ’26) and gave 2027 EPS guidance of $8.10–$8.30; they forecast $200 million of share repurchases in 2026 (about $50 million per quarter) and expect 2027 buybacks to be roughly 100% of net income. They plan to launch at least two significant fintech programs in 2026 and to announce at least one embedded‑finance client (noting embedded finance will contribute very little revenue in ’26 but more in ’27), are targeting roughly $2.0 billion of fintech lending by year‑end (credit‑sponsorship balances were $1.65 billion at quarter end), and said EPS accretion will be driven by three fintech initiatives, platform efficiency gains (including AI and restructuring) and high capital returns, while cautioning that timing of fintech ramps will determine when the upside is realized.Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 778.88M | 690.46M | 710.11M | 611.60M | 413.98M | 326.86M |
| Gross Profit | 532.58M | 512.77M | 495.38M | 447.82M | 347.42M | 312.51M |
| EBITDA | 311.30M | 307.69M | 296.31M | 259.85M | 181.21M | 147.47M |
| Net Income | 231.11M | 228.21M | 217.54M | 192.30M | 130.21M | 110.65M |
Balance Sheet | ||||||
| Total Assets | 9.90B | 9.35B | 8.73B | 7.71B | 7.90B | 6.84B |
| Cash, Cash Equivalents and Short-Term Investments | 89.14M | 132.52M | 620.77M | 1.79B | 1.65B | 1.56B |
| Total Debt | 223.35M | 223.37M | 123.70M | 147.82M | 122.48M | 151.60M |
| Total Liabilities | 9.20B | 8.66B | 7.94B | 6.90B | 7.21B | 6.19B |
| Stockholders Equity | 696.95M | 689.80M | 789.78M | 807.28M | 694.03M | 652.45M |
Cash Flow | ||||||
| Free Cash Flow | 214.25M | 257.92M | 222.68M | 174.03M | 114.48M | 82.34M |
| Operating Cash Flow | 217.75M | 265.01M | 227.65M | 186.72M | 119.61M | 83.89M |
| Investing Cash Flow | -1.42B | -1.06B | -1.51B | 415.55M | -826.73M | -305.90M |
| Financing Cash Flow | 246.06M | 341.70M | 812.74M | -452.37M | 993.52M | 478.28M |
Bancorp Technical Analysis
Positive
66.98
Price Trends
60.91
Positive
58.61
Positive
62.01
Positive
Market Momentum
1.57
Positive
56.50
Neutral
41.37
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 66.98 is above the 20-day moving average (MA) of 66.73, above the 50-day MA of 60.91, and above the 200-day MA of 62.01, indicating a bullish trend. The MACD of 1.57 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 41.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.42B | 12.10 | 19.03% | 2.64% | 2.45% | 26.38% | |
76 Outperform | $4.02B | 12.97 | 8.13% | 2.12% | 27.48% | 31.72% | |
75 Outperform | $4.04B | 15.13 | 7.66% | 2.89% | 34.13% | 25.12% | |
73 Outperform | $2.79B | 12.44 | 32.32% | ― | 2.66% | 13.98% | |
73 Outperform | $4.65B | 11.64 | 11.15% | 3.05% | 0.31% | 22.36% | |
69 Neutral | $3.69B | 11.70 | 9.55% | 4.93% | -8.83% | 45.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TBBK
Bancorp
67.07
2.59
4.02%
FBP
First Bancorp Puerto Rico
28.93
9.18
46.49%
FIBK
First Interstate Bancsystem
38.02
10.33
37.32%
FULT
Fulton Financial
24.33
7.21
42.11%
INDB
Independent Bank
83.83
21.91
35.39%
RNST
Renasant
43.57
8.44
24.02%
Bancorp Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Bancorp Shareholders Reelect Board and Approve Executive Pay
Positive
Jun 1, 2026
At The Bancorp, Inc.’s annual meeting of stockholders held on May 27, 2026, shareholders voted to elect all ten director nominees to one-year terms ending at the 2027 annual meeting, confirming continuity in the company’s board leaders...
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.