The Bancorp Surpasses Q3 Expectations with 25% Core EPS Growth and Fintech Fee Growth Reaching 19%
The Bancorp Inc. has reported a strong third quarter of 2026, with core earnings per share (EPS) growing by an impressive 25% year-over-year. This significant growth was driven in part by the company's fintech fee growth, which reached 19% year-over-year, and fintech fee growth including interest income, which hit 27% year-over-year.
In a call with investors on October 30th, 2026, Damian Kozlowski, Chief Executive Officer of The Bancorp, highlighted the company's achievements in the quarter. He noted that the company's three major fintech initiatives continue to show positive results and substantial momentum. First, he mentioned the ramp-up of Cash App, which is expected to start contributing more to the company's financials as it approaches the end of the year, with a meaningful impact in the beginning of 2027.
However, Kozlowski also announced that The Bancorp's partner, Chime, has proposed the acquisition of Stride Bank. In response, The Bancorp will be redeploying its balance sheet and employing cost management strategies to mitigate the profitability impact. As a result, the company has updated its 2027 EPS guidance for the likely impact and added EPS guidance for 2028.
Additionally, Kozlowski highlighted the signing of a new major fintech lending relationship with a partner who will announce this initiative soon. The Bancorp has also launched its embedded Finetics platform, branded Finetics, which is expected to provide a comprehensive bank-led solution and lead to significant partnerships in the future.
The company initiated restructuring in the third quarter, discontinuing the origination of SBL loans by the end of the year to provide room for fintech loan growth and more profitable traditional niche credits. This decision has resulted in staffing reductions, with an anticipated $5 million in restructuring costs. However, The Bancorp expects annual run-rate savings of $14 million from these changes.
As the company grows its fintech business, it plans to reallocate headcount to support main fintech initiatives. With a focus on innovation and growth, The Bancorp continues to demonstrate its commitment to delivering strong financial performance and expanding its presence in the fintech space.
