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The Bancorp, Inc.
TBBK
#4383
Rank
A$3.98 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
A$97.80
Share price
-0.52%
Change (1 day)
-6.62%
Change (1 year)
๐Ÿฆ Banks๐Ÿ’ณ Financial services
Categories
  1. The Bancorp, Inc.
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2026 Q2

The Bancorp, Inc. - 10-Q quarterly report FY2026 Q2


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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2026
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from: _____ to _____
Commission file number: 000-51018
THE BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware
23-3016517
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)
409 Silverside Road, Wilmington, DE 19809
(302) 385-5000
(Address of principal executive offices and zip code)(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each Exchange on Which Registered
Common Stock, par value $1.00 per shareTBBK
Nasdaq Global Select
Indicate by check mark whether the registrant (1 ) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
xAccelerated filer oNon-accelerated filero
Smaller reporting company oEmerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of July 31, 2026, there were 40,786,809 outstanding shares of common stock, $1.00 par value.

THE BANCORP, INC.
Form 10-Q Index
Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
THE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
2026		December 31,
2025
(Dollars in thousands, except share data)(unaudited)
ASSETS:
Cash and cash equivalents
Cash and due from banks$9,527 $8,038 
Interest-earning deposits 70,556 104,611 
Total cash and cash equivalents80,083 112,649 
Investment securities, available-for-sale, at fair value1,614,890 1,671,750 
Commercial loans, at fair value 114,162 139,389 
Loans, net of deferred loan fees and costs7,073,906 7,116,676 
Allowance for credit losses(63,495)(66,200)
Loans, net7,010,411 7,050,476 
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks50,115 25,205 
Premises and equipment, net28,282 29,834 
Accrued interest receivable43,342 43,090 
Other real estate owned 62,011 60,695 
Deferred tax asset, net23,491 18,679 
Credit enhancement asset30,733 31,138 
Other assets158,457 169,520 
Total assets$9,215,977 $9,352,425 
LIABILITIES:
Deposits
Demand and interest checking$7,353,151 $7,827,037 
Savings and money market123,051 338,459 
Total deposits7,476,202 8,165,496 
Short-term borrowings744,000 199,000 
Senior debt196,528 196,253 
Subordinated debentures13,401 13,401 
Other long-term borrowings4,327 13,712 
Other liabilities76,138 74,767 
Total liabilities8,510,596 8,662,629 
SHAREHOLDERS' EQUITY:
Common stock - authorized, 75,000,000 shares of $1.00 par value;
48,805,314 and 41,043,479 shares issued and outstanding, respectively, at June 30, 2026 and
48,404,006 and 42,355,361 shares issued and outstanding, respectively, at December 31, 2025
48,805 48,404 
Additional paid-in capital33,858 24,207 
Retained earnings 1,128,093 1,007,368 
Accumulated other comprehensive (loss) income (3,595)10,839 
Treasury stock at cost, 7,761,835 shares at June 30, 2026 and 6,048,645 shares at December 31, 2025
(501,780)(401,022)
Total shareholders' equity705,381 689,796 
Total liabilities and shareholders' equity$9,215,977 $9,352,425 
The accompanying notes are an integral part of these consolidated statements.
3
THE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in thousands, except share and per share data)
Interest income:
Loans, including fees$110,583 $112,326 $218,128 $221,238 
Investment securities:
Taxable interest 19,924 22,393 39,844 40,520 
Tax-exempt interest 156 103 286 186 
Interest-earning deposits 1,386 8,326 3,582 21,006 
132,049 143,148 261,840 282,950 
Interest expense:
Deposits34,334 43,963 69,623 90,338 
Short-term borrowings2,949 5 4,330 5 
Long-term borrowings147 198 344 393 
Senior debt3,917 1,233 7,792 2,467 
Subordinated debentures236 257 471 512 
41,583 45,656 82,560 93,715 
Net interest income90,466 97,492 179,280 189,235 
Provision (reversal) for credit losses on non-fintech loans365 1,494 (983)2,368 
Provision for credit losses on fintech loans25,766 43,233 54,609 89,101 
Provision (reversal) for unfunded commitments(42)(364)64 (253)
Provision for credit losses, total26,089 44,363 53,690 91,216 
Net interest income after provision for credit losses64,377 53,129 125,590 98,019 
Non-interest income:
Fintech fees:
ACH, card and other payment fees 6,559 5,562 12,355 10,694 
Prepaid, debit card and related fees27,790 26,113 54,467 51,827 
Consumer credit fintech fees6,545 3,970 12,141 7,570 
Total fintech fees40,894 35,645 78,963 70,091 
Net realized and unrealized gains on commercial loans, at fair value130 344 136 705 
Leasing related income1,773 2,131 3,674 4,103 
Fintech loan credit enhancement25,766 43,233 54,609 89,101 
Other4,477 2,390 8,183 3,385 
Total non-interest income73,040 83,743 145,565 167,385 
Non-interest expense:
Salaries and employee benefits37,426 37,134 74,903 70,803 
Depreciation 1,230 1,125 2,475 2,229 
Rent and related occupancy cost 1,668 1,717 3,359 3,285 
Data processing expense1,387 1,227 2,696 2,432 
Audit expense 498 545 1,139 1,199 
Legal expense 1,221 1,863 2,811 3,820 
Legal settlement (reimbursement)— — (2,000)— 
FDIC insurance 1,106 1,202 2,357 2,255 
Software5,632 5,144 11,001 10,157 
Insurance1,069 1,145 2,251 2,402 
Telecom and IT network communications292 308 576 641 
Consulting147 436 357 892 
Other 4,800 5,377 9,577 10,402 
Total non-interest expense56,476 57,223 111,502 110,517 
Income before income taxes80,941 79,649 159,653 154,887 
Income tax expense 20,285 19,828 38,928 37,893 
Net income$60,656 $59,821 $120,725 $116,994 
Net income per share - basic$1.46 $1.28 $2.89 $2.49 
Net income per share - diluted$1.45 $1.27 $2.86 $2.46 
Weighted average shares - basic41,461,88946,598,53541,795,74046,904,592
Weighted average shares - diluted41,794,16047,182,77042,180,51647,565,580
The accompanying notes are an integral part of these consolidated statements.
4
THE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in thousands)
Net income$60,656 $59,821 $120,725 $116,994 
Other comprehensive (loss) income, net—
     Investment securities available for sale:
Change in net unrealized (loss) gain(9,407)4,598 (19,247)25,660 
Income tax (benefit) expense related to items of other comprehensive income(2,353)1,149 (4,813)6,414 
Other comprehensive (loss) income, net(7,054)3,449 (14,434)19,246 
Comprehensive income $53,602 $63,270 $106,291 $136,240 
The accompanying notes are an integral part of these consolidated statements.
5
THE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
(Dollars in thousands, except share data)
For the three and six months ended June 30, 2026
Common
stock
shares issued		Common
stock		Additional
paid-in
capital		Retained
earnings		Accumulated other comprehensive income (loss)Treasury
stock		Total
Balance at January 1, 202648,404,006$48,404 $24,207 $1,007,368 $10,839 $(401,022)$689,796 
Net income—— — 60,069 — — 60,069 
Common stock issued from restricted units, net of tax benefits346,245346 (346)— — — — 
Stock-based compensation—— 4,755 — — — 4,755 
Other comprehensive loss net of reclassification adjustments and tax—— — — (7,380)— (7,380)
Common stock repurchases and excise tax(1)
—— — — — (50,290)(50,290)
Balance at March 31, 202648,750,25148,750 28,616 1,067,437 3,459 (451,312)696,950 
Net income —— — 60,656 — — 60,656 
Common stock issued from restricted units, net of tax benefits55,06355 (55)— — — — 
Stock-based compensation —— 5,297 — — — 5,297 
Other comprehensive loss net of reclassification adjustments and tax—— — — (7,054)— (7,054)
Common stock repurchases and excise tax(1)
—— — — — (50,468)(50,468)
Balance at June 30, 202648,805,314$48,805 $33,858 $1,128,093 $(3,595)$(501,780)$705,381 
(1)For the three months ended March 31, 2026 and June 30, 2026, common stock repurchases include 843,061 and 870,129, respectively, of shares repurchased in connection with the Company's share repurchase program approved by the Board of Directors. See Note 8. Shareholders’ Equity for further information.


The accompanying notes are an integral part of these consolidated statements.
6
THE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
(CONTINUED)
(Dollars in thousands, except share data)
For the three and six months ended June 30, 2025
Common
stock
shares issued		Common
stock		Additional
paid-in
capital		Retained
earnings		Accumulated other comprehensive income (loss)Treasury
stock		Total
Balance at January 1, 202547,713,481$47,713 $3,233 $779,155 $(17,637)$(22,681)$789,783 
Net income —— — 57,173 — — 57,173 
Common stock issued from restricted units, net of tax benefits353,697354 (354)— — — — 
Stock-based compensation —— 4,591 — — — 4,591 
Other comprehensive income net of reclassification adjustments and tax—— — — 15,797 — 15,797 
Common stock repurchases and excise tax(1)
—— — — — (37,657)(37,657)
Balance at March 31, 202548,067,17848,067 7,470 836,328 (1,840)(60,338)829,687 
Net income—— — 59,821 — — 59,821 
Common stock issued from restricted units, net of tax benefits36,82837 (37)— — — — 
Stock-based compensation—— 5,175 — — — 5,175 
Other comprehensive income net of reclassification adjustments and tax—— — — 3,449 — 3,449 
Common stock repurchases and excise tax(1)
—— — — (37,866)(37,866)
Balance at June 30, 202548,104,006$48,104 $12,608 $896,149 $1,609 $(98,204)$860,266 
(1)For the three months ended March 31, 2025 and June 30, 2025, common stock repurchases include 753,898 and 684,445, respectively, of shares repurchased in connection with the Company's share repurchase program approved by the Board of Directors. See Note 8. Shareholders’ Equity for further information.

The accompanying notes are an integral part of these consolidated statements.
7
THE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30,
20262025
(Dollars in thousands)
Operating activities:
Net income $120,725 $116,994 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation2,475 2,229 
Provision for credit losses, total53,690 91,216 
Fintech loan credit enhancement income(54,609)(89,101)
Accretion of fees, premiums, and discounts, net(2,368)(1,137)
Stock-based compensation expense 10,052 9,766 
Realized gains on commercial loans, at fair value(136)(705)
Gain on sale of fixed assets(38)(7)
(Increase) decrease in accrued interest receivable(252)1,106 
(Increase) decrease in other assets(10,600)19,127 
Increase (decrease) in other liabilities1,166 (4,425)
Net cash provided by operating activities120,105 145,063 
Investing activities:
Purchase of investment securities available-for-sale(9,113)(53,071)
Proceeds from redemptions and prepayments of securities available-for-sale 49,068 125,978 
Capitalized investment in other real estate owned(540)(1,756)
Sale of repossessed assets1,269 2,600 
Proceeds from sale of other real estate owned180 — 
Net increase in loans(18,655)(505,136)
Credit enhancement agreement cash inflows55,014 75,028 
Proceeds from sale of fixed assets 49 121 
Commercial loans, at fair value drawn during the period(133)(2,953)
Payments on commercial loans, at fair value16,176 41,174 
Purchases of premises and equipment(934)(1,272)
Net cash provided by (used in) investing activities92,381 (319,287)
Financing activities:
Net (decrease) increase in deposits(689,294)19,889 
Proceeds from short-term borrowings 545,000 — 
Repurchases of common stock and excise tax(100,758)(75,523)
Net cash used in financing activities(245,052)(55,634)
Net decrease in cash and cash equivalents(32,566)(229,858)
Cash and cash equivalents, beginning of period112,649 570,123 
Cash and cash equivalents, end of period$80,083 $340,265 
Supplemental cash flow information:
Interest paid $83,488 $95,231 
Transfers (from) to other real estate owned from commercial loans, at fair value, and loans, net$956 $2,273 
Leased vehicles transferred to repossessed assets$1,504 $2,395 
The accompanying notes are an integral part of these consolidated statements.
8
THE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Organization and Nature of Operations
The Bancorp, Inc. (the “Company”) is a Delaware corporation and a registered financial holding company. Its primary, wholly-owned subsidiary is The Bancorp Bank, National Association (the “Bank”), which is a federally chartered commercial bank located in Sioux Falls, South Dakota and is a Federal Deposit Insurance Corporation (“FDIC”) insured institution. As a federally chartered institution, its primary regulator is the Office of the Comptroller of the Currency (“OCC”). The Company has three reportable segments which consist of Fintech Solutions, Credit Solutions and Corporate.
Through partner relationships, Fintech Solutions delivers payment, deposit, and lending products that attract deposits and generate fee income. Deposits generated through these partner relationships are deployed into loan and lease products offered by both Fintech sponsored lending and the Credit Solutions business line. The Company primarily earns fee-based income from fintech products, and such products include sponsored issuance of deposit accounts and debit, credit, and prepaid cards; sponsored lending products for fintech partners; and payment processing solutions, including acquiring, ACH, and near-and real-time payment services in support of its partners.
Credit Solutions is our lending operation and makes the following types of loans: (i) Real estate bridge lending (“REBL”); (ii) Institutional Banking comprised of security-backed lines of credit (“SBLOC”), cash value insurance policy-backed lines of credit (“IBLOC”) and advisor financing; and (iii) Commercial Loans which includes Small Business Loans (“SBL”) which is comprised primarily of Small Business Administration (“SBA”) loans and direct lease financing.
The Company and the Bank are affected by state and federal legislation and regulations and are subject to regulation by certain state and federal agencies. Accordingly, they are examined periodically by those regulatory authorities.

Note 2. Significant Accounting Policies
Basis of Presentation
The financial statements of the Company, as of June 30, 2026 and for the three and six-month periods ended June 30, 2026 and 2025, are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). However, in the opinion of management, these interim financial statements include all necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December, 31, 2025 (the “2025 Form 10-K”). The results of operations for the three and six-month periods ended June 30, 2026 may not necessarily be indicative of the results of operations anticipated for the full year ending December 31, 2026.
Certain prior period amounts have been reclassified to conform to current period presentation.
There have been no significant changes as of June 30, 2026 from the Company’s significant accounting policies as described in the 2025 Form 10-K.
Subsequent Events
The Company evaluated its June 30, 2026 financial statements for subsequent events through the date the consolidated financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements.
9
Note 3. Earnings Per Share
The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period, assuming all potentially dilutive common shares were issued.
Diluted earnings per share considers the potential dilution that could occur if securities, including stock options and RSUs or other contracts to issue common stock were exercised and converted into common stock. Stock options are dilutive if their exercise prices are less than the current stock price. RSUs are dilutive because they represent grants over vesting periods which do not require employees to pay exercise prices. The dilution shown in the tables below includes the potential dilution from both stock options and RSUs. The weighted-average computation of the dilutive effect of potentially issuable shares of Common stock under the treasury stock method excludes the effect of securities that would be anti-dilutive.
The calculation of weighted-average common shares outstanding during each respective period includes activity related to share repurchases made under the Company’s share repurchase programs, as discussed further in “Note 8. Shareholders’ Equity.”
The following table summarizes the calculation of earnings per share:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in thousands except share and per share data)
Net income$60,656 $59,821 $120,725 $116,994 
Weighted average shares - basic41,461,889 46,598,535 41,795,74046,904,592
Effect of dilutive securities:
Common stock options and RSUs332,271 584,235 384,776 660,988 
Weighted average shares - diluted41,794,160 47,182,770 42,180,516 47,565,580 
Basic and diluted earnings per share:
Net income per share - basic$1.46 $1.28 $2.89 $2.49 
Effect of dilutive securities:
Common stock options and RSUs(0.01)(0.01)(0.03)(0.03)
Net income per share - diluted$1.45 $1.27 $2.86 $2.46 
Included in the computation of diluted shares:
Stock options with exercise price below average market price
Share count368,293622,677368,293622,677
Minimum exercise price$8.57 $6.87 $8.57 $6.87 
Maximum exercise price$43.89 $35.17 $43.89 $35.17 
Excluded from the computation of diluted shares: Antidilutive securities
Outstanding stock-based compensation awards, shares32,624 78,240 32,624 78,240 
10
Note 4. Investment Securities
The Company’s investments in debt securities are classified as available-for-sale, and are summarized as follows (dollars in thousands):
June 30, 2026
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
U.S. Government agency securities$23,151 $8 $(635)$22,524 
Asset-backed securities226,817 145 (393)226,569 
Tax-exempt obligations of states and political subdivisions14,612 72 (48)14,636 
Taxable obligations of states and political subdivisions16,677 49 (55)16,671 
Residential mortgage-backed securities433,475 5,800 (4,362)434,913 
Collateralized mortgage obligation securities52,889 — (1,377)51,512 
Commercial mortgage-backed securities852,092 7,339 (11,366)848,065 
$1,619,713 $13,413 $(18,236)$1,614,890 
December 31, 2025
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
U.S. Government agency securities$25,503 $63 $(457)$25,109 
Asset-backed securities234,029 205 (133)234,101 
Tax-exempt obligations of states and political subdivisions9,614 62 (40)9,636 
Taxable obligations of states and political subdivisions18,941 45 (59)18,927 
Residential mortgage-backed securities454,837 13,039 (3,553)464,323 
Collateralized mortgage obligation securities58,129 44 (593)57,580 
Commercial mortgage-backed securities856,273 14,306 (8,505)862,074 
$1,657,326 $27,764 $(13,340)$1,671,750 
The amortized cost and fair value of the Company’s investment securities at June 30, 2026, by contractual maturity, are shown below (dollars in thousands). Expected maturities may differ from contractual maturities based on the timing of cashflows from the underlying collateral.
Available-for-sale
Amortized
cost		Fair
value
Due before one year$22,388 $22,293 
Due after one year through five years305,089 304,637 
Due after five years through ten years495,145 496,867 
Due after ten years797,091 791,093 
$1,619,713 $1,614,890 
11
The table below indicates the length of time individual securities had been in a continuous unrealized loss position (dollars in thousands):
June 30, 2026
Less than 12 months12 months or longerTotal
Fair ValueUnrealized lossesFair ValueUnrealized lossesFair ValueUnrealized losses
U.S. Government agency securities$8,423 $(132)$10,304 $(503)$18,727 $(635)
Asset-backed securities107,184 (393)— — 107,184 (393)
Tax-exempt obligations of states and political subdivisions6,442 (45)1,157 (3)7,599 (48)
Taxable obligations of states and political subdivisions980 — 9,212 (55)10,192 (55)
Residential mortgage-backed securities61,524 (622)27,414 (3,740)88,938 (4,362)
Collateralized mortgage obligation securities40,458 (776)11,054 (601)51,512 (1,377)
Commercial mortgage-backed securities245,216 (3,490)104,297 (7,876)349,513 (11,366)
Total unrealized loss position investment securities$470,227 $(5,458)$163,438 $(12,778)$633,665 $(18,236)
December 31, 2025
Less than 12 months12 months or longerTotal
Fair ValueUnrealized lossesFair ValueUnrealized lossesFair ValueUnrealized losses
U.S. Government agency securities$2,521 $(1)$11,660 $(456)$14,181 $(457)
Asset-backed securities59,024 (133)— — 59,024 (133)
Tax-exempt obligations of states and political subdivisions3,456 (33)1,153 (7)4,609 (40)
Taxable obligations of states and political subdivisions— — 14,053 (59)14,053 (59)
Residential mortgage-backed securities18,630 (62)28,886 (3,491)47,516 (3,553)
Collateralized mortgage obligation securities34,149 (75)12,721 (518)46,870 (593)
Commercial mortgage-backed securities173,572 (873)119,778 (7,632)293,350 (8,505)
Total unrealized loss position investment securities$291,352 $(1,177)$188,251 $(12,163)$479,603 $(13,340)

Note 5. Loans, net
The Company’s loans originate from several lending lines of business, including:
•SBLs, or small business loans, are comprised primarily of Small Business Administration “SBA” loans.
•Direct lease financing includes lease financing for commercial and government vehicle fleets and, to a lesser extent, provides lease financing for other equipment.
•SBLOC, or securities-backed lines of credit, are made to individuals, trusts and other entities and are secured by a pledge of marketable securities maintained in one or more accounts for which the Company obtains a securities account control agreement.
•IBLOC, or insurance policy cash value-backed lines of credit, are collateralized by the cash surrender value of eligible insurance policies.
•Advisor financing are loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal succession.
•REBL, or real estate bridge lending, are transitional commercial mortgage loans which are made to improve and rehabilitate existing properties which already have cash flow, and which are collateralized by those properties.
12
•Fintech loans consist of short-term extensions of credit, including secured credit card loans, made in conjunction with marketers and servicers.
•Other loans include warehouse financing of REBL loan sales to third-party purchasers, and loans the Company generally no longer offers, including commercial loans, CRA loans and HELOC.
Major classifications of loans, excluding commercial loans at fair value, are as follows (dollars in thousands):
June 30,
2026		December 31,
2025
Loans recorded at amortized cost:
SBL non-real estate $255,424 $235,282 
SBL commercial mortgage757,154 749,234 
SBL construction 21,686 22,382 
SBLs1,034,264 1,006,898 
Direct lease financing 670,902 685,422 
SBLOC / IBLOC1,825,301 1,669,985 
Advisor financing240,049 294,236 
Real estate bridge lending2,233,688 2,188,952 
Fintech(1)
901,502 1,097,998 
Other loans(2)
152,604 157,416 
Total loans7,058,310 7,100,907 
Unamortized loan fees and costs15,596 15,769 
Total loans, net of deferred loan fees and costs$7,073,906 $7,116,676 
_________
(1)As of June 30, 2026 and December 31, 2025, fintech loans included $336.3 million and $729.1 million of secured credit card accounts which are backed dollar for dollar by cash collateral by each individual cardholder and are required to be repaid in full monthly. For secured credit card accounts, we recognize a loan receivable and a deposit liability for the cash collateral that secures those accounts. The remaining fintech loans consist of cashflow underwritten short-term liquidity products to individual borrowers ranging in maturity from 30 to 365 days.
(2)As of June 30, 2026 and December 31, 2025, Other loans includes $110.0 million and $110.7 million, respectively, related to the warehouse financing of REBL sales to third-party purchasers.
During the six months ended June 30, 2026 and 2025, the Company purchased $7.7 million and $19.8 million of SBLs, respectively, none of which were credit deteriorated. Additionally, in the six months ended June 30, 2026 and 2025, the Company participated in SBLs with other institutions in the amount of $0.3 million and $4.7 million, respectively.
Non-Accrual and Delinquency
A detail of the Company’s delinquent and non-accrual loans by loan category is as follows (dollars in thousands):
June 30, 2026
Past-due and Non-Accrual
30-59 days
past due		60-89 days
past due		90+ days
still accruing		Non-accrualTotal past due
and non-accrual		CurrentTotal
loans
SBL non-real estate $1,892 $— $— $10,756 $12,648 $242,776 $255,424 
SBL commercial mortgage— — — 26,868 26,868 730,286 757,154 
SBL construction — — — 2,660 2,660 19,026 21,686 
Direct lease financing 1,642 165 506 9,120 11,433 659,469 670,902 
SBLOC / IBLOC3,222 119 — — 3,341 1,821,960 1,825,301 
Advisor financing— — — — — 240,049 240,049 
Real estate bridge lending— — — 22,454 22,454 2,211,234 2,233,688 
Fintech22,956 4,087 1,798 — 28,841 872,661 901,502 
Other loans431 — 1 390 822 151,782 152,604 
$30,143 $4,371 $2,305 $72,248 $109,067 $6,949,243 $7,058,310 
13
December 31, 2025
Past-due and Non-Accrual
30-59 days
past due		60-89 days
past due		90+ days
still accruing		Non-accrualTotal past due
and non-accrual		CurrentTotal
loans
SBL non-real estate $1,515 $344 $— $8,639 $10,498 $224,784 $235,282 
SBL commercial mortgage224 — — 21,977 22,201 727,033 749,234 
SBL construction — — — 2,660 2,660 19,722 22,382 
Direct lease financing 2,461 894 1,457 12,066 16,878 668,544 685,422 
SBLOC / IBLOC5,328 65 251 446 6,090 1,663,895 1,669,985 
Advisor financing— — — — — 294,236 294,236 
Real estate bridge lending— — 14,459 9,755 24,214 2,164,738 2,188,952 
Fintech24,701 3,791 2,030 — 30,522 1,067,476 1,097,998 
Other loans209 111 2 142 464 156,952 157,416 
$34,438 $5,205 $18,199 $55,685 $113,527 $6,987,380 $7,100,907 
The following table summarizes non-accrual loans with and without a specific ACL (dollars in thousands):
June 30, 2026December 31, 2025
Non-accrual loans with a related ACL Related ACLNon-accrual loans without a related
ACL		Total non-accrual loansNon-accrual loans with a related ACL Related ACLNon-accrual loans without a related
ACL		Total non-accrual loans
SBL non-real estate$8,233 $1,504 $2,523 $10,756 $5,361 $963 $3,278 $8,639 
SBL commercial mortgage4,797 690 22,071 26,868 3,009 801 18,968 21,977 
SBL construction710 37 1,950 2,660 710 35 1,950 2,660 
Direct lease financing7,679 2,175 1,441 9,120 11,881 4,211 185 12,066 
SBLOC / IBLOC— — — — 446 207 — 446 
Real estate bridge lending12,700 796 9,754 22,454 — — 9,755 9,755 
Other loans— — 390 390 — — 142 142 
$34,119 $5,202 $38,129 $72,248 $21,407 $6,217 $34,278 $55,685 
Interest which would have been earned on loans classified as non-accrual for the six months ended June 30, 2026 and 2025, was $2.5 million and $1.1 million, respectively. No income on non-accrual loans was recognized during the three and six months ended June 30, 2026 or 2025.
During the six months ended June 30, 2026 amounts reversed from interest income totaled $0.8 million, and primarily consist of $0.4 million of REBL, $0.3 million of SBL commercial mortgage and $0.1 million of SBL non-real estate. During the six months ended June 30, 2025 amounts reversed from interest income totaled $1.7 million and primarily consist of $1.2 million of REBL and $0.3 million of SBL commercial mortgage. The interest reversals represent interest receivable balance on loans at the time of transfer into non-accrual status.
Loan Modifications
Loans modified to borrowers experiencing financial difficulty, and related information are as follows (dollars in thousands):
Three months ended June 30, 2026Six months ended June 30, 2026
Payment deferralPayment delay and term extensionTotalPercent of total loan categoryPayment deferralPayment delay and term extensionTotalPercent of total loan category
SBL non-real estate$2,098 $35 $2,133 0.84 %$2,098 $35 $2,133 0.84 %
SBL commercial mortgage697 — 697 0.09 %697 — 697 0.09 %
Total$2,795 $35 $2,830 0.04%$2,795 $35 $2,830 0.04 %
14

Three months ended June 30, 2025Six months ended June 30, 2025
Payment deferralInterest rate reduction and payment deferralTotalPercent of total loan categoryPayment deferralInterest rate reduction and payment deferralTotalPercent of total loan category
SBL non-real estate$— $1,348 $1,348 0.66%$4,991 $1,348 $6,339 3.11%
SBL commercial mortgage— — — — 2,738 — 2,738 0.38%
Total$— $1,348 $1,348 0.02%$7,729 $1,348 $9,077 0.14%

The following tables show an analysis of the delinquency status at the end of the respective periods for loans that were modified during the periods presented (dollars in thousands):
Three months ended June 30, 2026
30-59 days
past due		60-89 days
past due		90+ days
still accruing		Non-accrualTotal
delinquent		CurrentTotal
SBL non-real estate$— $— $— $1,723 $1,723 $410 $2,133 
SBL commercial mortgage— — — 697 697 — 697 
$— $— $— $2,420 $2,420 $410 $2,830 
Three months ended June 30, 2025
30-59 days
past due		60-89 days
past due		90+ days
still accruing		Non-accrualTotal
delinquent		CurrentTotal
SBL non-real estate $— $1,348 $— $— $1,348 $— $1,348 
SBL commercial mortgage— — — — — — — 
$— $1,348 $— $— $1,348 $— $1,348 
Six months ended June 30, 2026
30-59 days
past due		60-89 days
past due		90+ days
still accruing		Non-accrualTotal
delinquent		CurrentTotal
SBL non-real estate$— $— $— $1,723 $1,723 $410 $2,133 
SBL commercial mortgage— — — 697 697 — 697 
$— $— $— $2,420 $2,420 $410 $2,830 
Six months ended June 30, 2025
30-59 days
past due		60-89 days
past due		90+ days
still accruing		Non-accrualTotal
delinquent		CurrentTotal
SBL non-real estate$— $1,348 $— $— $1,348 $4,991 $6,339 
SBL commercial mortgage— — — — — 2,738 2,738 
$— $1,348 $— $— $1,348 $7,729 $9,077 

The following tables describe the financial effect of modifications made during the periods presented:
Three months ended June 30, 2026Six months ended June 30, 2026
Combined Rate and MaturityCombined Rate and Maturity
Weighted average interest reductionWeighted average term extension (in months)
More-than-insignificant-payment delay
Weighted average interest reductionWeighted average term extension (in months)
More-than-insignificant-payment delay
SBL non-real estate —440.84 %—440.84 %
SBL commercial mortgage——0.09 %——0.09 %
Three months ended June 30, 2025Six months ended June 30, 2025
Combined Rate and MaturityCombined Rate and Maturity
Weighted average interest reductionWeighted average term extension (in months)
More-than-insignificant-payment delay
Weighted average interest reductionWeighted average term extension (in months)
More-than-insignificant-payment delay
SBL non-real estate1.00%——1.00%—2.45%
SBL commercial mortgage—————0.38%
15
The Company had no commitments to extend additional credit to loans classified as modified as of June 30, 2026, and there were $0.3 million specific reserves on the $2.8 million of loans classified as modified.
Allowance for Credit Loss
The Company had no significant changes to its quantitative and qualitative measures used in measuring the allowance for credit losses as of June 30, 2026. For additional information regarding the Company’s allowance estimate, see Note 2, “Summary of Significant Accounting Policies” and Note 5, “Loans, net,” in the 2025 Form 10-K.
A summary of the Company’s primary portfolio pools and loans accordingly classified by year of origination is as follows (dollars in thousands):
As of June 30, 2026
20262025202420232022PriorRevolvingTotal
Pass$34,924 $70,539 $46,520 $55,570 $14,163 $15,705 $— $237,421 
Special mention— — — 1,952 1,388 43 — 3,383 
Substandard— — 2,104 6,847 4,678 991 — 14,620 
SBL non-real estate, total34,924 70,539 48,624 64,369 20,229 16,739 — 255,424 
Non-rated154 — — — — — — 154 
Pass 67,301 112,280 142,557 75,000 92,774 211,081 — 700,993 
Special mention— — 494 733 8,113 11,382 — 20,722 
Substandard— — 2,377 13,511 8,025 11,372 — 35,285 
SBL commercial mortgage, total67,455 112,280 145,428 89,244 108,912 233,835 — 757,154 
Pass 3,643 11,976 — 3,408 — — — 19,027 
Substandard— — — — — 2,659 — 2,659 
SBL construction, total3,643 11,976 — 3,408 — 2,659 — 21,686 
Non-rated1,199 — — — — — — 1,199 
Pass 131,306 209,481 143,471 94,643 64,870 13,079 — 656,850 
Special mention194 320 211 149 166 66 — 1,106 
Substandard— — 2,149 5,661 3,003 934 — 11,747 
Direct lease financing, total132,699 209,801 145,831 100,453 68,039 14,079 — 670,902 
Non-rated— — — — — — 14,631 14,631 
Pass— — — — — — 1,810,661 1,810,661 
Substandard— — — — — — 9 9 
SBLOC/IBLOC, total— — — — — — 1,825,301 1,825,301 
Pass 5,638 58,826 64,039 46,510 37,056 19,245 — 231,314 
Special mention— — — — 957 7,778 — 8,735 
Advisor financing, total5,638 58,826 64,039 46,510 38,013 27,023 — 240,049 
Pass407,408 707,145 386,489 150,852 473,513 62,069 — 2,187,476 
Substandard— — 23,757 — 12,700 9,755 — 46,212 
REBL, total407,408 707,145 410,246 150,852 486,213 71,824 — 2,233,688 
Non-rated274,510 7,415 — — — — 617,779 899,704 
Substandard1,313 485 — — — — — 1,798 
Fintech, total275,823 7,900 — — — — 617,779 901,502 
Non-rated3,315 — — — — 11,820 1,038 16,173 
Pass 227 56,994 53,830 159 250 24,582 — 136,042 
Substandard— — — — — 389 — 389 
Other loans, total3,542 56,994 53,830 159 250 36,791 1,038 152,604 
Total loans$931,132 $1,235,461 $867,998 $454,995 $721,656 $402,950 $2,444,118 $7,058,310 
16
As of December 31, 2025
20252024202320222021PriorRevolvingTotal
Pass $70,191 $50,083 $60,331 $17,797 $12,295 $6,765 $— $217,462 
Special mention— 262 992 1,480 — 71 — 2,805 
Substandard— 1,171 6,635 4,276 1,360 1,573 — 15,015 
SBL non-real estate, total70,191 51,516 67,958 23,553 13,655 8,409 — 235,282 
Pass 107,357 156,610 83,047 105,359 69,554 166,921 — 688,848 
Special mention— 2,749 2,708 4,406 4,275 7,459 — 21,597 
Substandard— 706 9,622 14,656 8,579 5,226 — 38,789 
SBL commercial mortgage, total107,357 160,065 95,377 124,421 82,408 179,606 — 749,234 
Pass 4,769 10,449 4,504 — — — — 19,722 
Substandard— — — — 1,950 710 — 2,660 
SBL construction, total4,769 10,449 4,504 — 1,950 710 — 22,382 
Non-rated1,777 — — — — — — 1,777 
Pass 253,367 177,838 121,969 87,456 20,241 4,269 — 665,140 
Special mention719 410 759 295 3 — — 2,186 
Substandard16 2,741 7,321 4,335 1,839 67 — 16,319 
Direct lease financing, total255,879 180,989 130,049 92,086 22,083 4,336 — 685,422 
Non-rated— — — — — — 6,882 6,882 
Pass— — — — — — 1,662,616 1,662,616 
Substandard— — — — — — 487 487 
SBLOC/IBLOC, total— — — — — — 1,669,985 1,669,985 
Pass68,249 69,705 70,411 48,197 16,471 12,253 — 285,286 
Special mention— — — 979 7,971 — — 8,950 
Advisor financing, total68,249 69,705 70,411 49,176 24,442 12,253 — 294,236 
Pass689,651 453,603 271,554 569,730 120,938 — — 2,105,476 
Special mention— — — — 9,576 — — 9,576 
Substandard— 42,735 — 21,411 9,754 — — 73,900 
REBL, total689,651 496,338 271,554 591,141 140,268 — — 2,188,952 
Non-rated141,605 — — — — — 954,364 1,095,969 
Substandard2,029 — — — — — — 2,029 
Fintech, total143,634 — — — — — 954,364 1,097,998 
Non-rated494 — — — — 8,852 — 9,346 
Pass 56,998 54,458 160 252 343 34,621 1,096 147,928 
Substandard— — — — — 142 — 142 
Other loans, total57,492 54,458 160 252 343 43,615 1,096 157,416 
Total loans$1,397,222 $1,023,520 $640,013 $880,629 $285,149 $248,929 $2,625,445 $7,100,907 
In the above tables, the special mention classification indicates weaknesses that may, if not cured, threaten the borrower’s future repayment ability. A substandard classification reflects an existing weakness indicating the possible inadequacy of net worth and other repayment sources. These classifications are used both by regulators and peers, as they have been correlated with an increased probability of credit losses.
17
A detail of the changes in the ACL is as follows (in thousands):
June 30, 2026
SBL non-real estateSBL commercial mortgageSBL constructionDirect lease financing SBLOC / IBLOCAdvisor financingREBLFintechOther loansTotal
Beginning 1/1/2026$6,337 $3,118 $235 $15,675 $1,041 $2,207 $5,949 $31,137 $501 $66,200 
Charge-offs(172)(486)— (956)(446)— — (89,106)— (91,166)
Recoveries75 — — 167 — — — 34,093 500 34,835 
Provision (reversal)998 813 (25)(2,670)318 (407)536 54,609 (546)53,626 
Ending balance$7,238 $3,445 $210 $12,216 $913 $1,800 $6,485 $30,733 $455 $63,495 
June 30, 2025
SBL non-real estateSBL commercial mortgageSBL constructionDirect lease financing SBLOC / IBLOCAdvisor financingREBLFintechOther loansTotal
Beginning 1/1/2025$4,972 $3,203 $342 $13,125 $1,195 $2,054 $6,603 $12,909 $450 $44,853 
Charge-offs(171)— — (1,520)— — — (89,627)(704)(92,022)
Recoveries61 — — 429 — — — 14,599 4 15,093 
Provision (reversal)326 (190)124 1,504 (188)(13)16 89,101 789 91,469 
Ending balance$5,188 $3,013 $466 $13,538 $1,007 $2,041 $6,619 $26,982 $539 $59,393 
A summary of the Company’s gross charge-offs classified by portfolio segment and year of origination are as follows (dollars in thousands):
Six months ended June 30, 2026
20262025202420232022PriorRevolvingTotal
SBL non-real estate$— $— $— $— $(172)$— $— $(172)
SBL commercial mortgage— — — — — (486)— (486)
Direct lease financing— — (191)(309)(386)(70)— (956)
IBLOC— — — — — — (446)(446)
Fintech(1,862)(14,966)— — — — (72,278)(89,106)
Total Charge-offs$(1,862)$(14,966)$(191)$(309)$(558)$(556)$(72,724)$(91,166)
Six months ended June 30, 2025
20252024202320222021PriorRevolvingTotal
SBL non-real estate$— $— $— $(62)$— $(109)$— $(171)
Direct lease financing— (139)(320)(884)(177)— — (1,520)
Fintech(369)(2,184)— — — — (87,074)(89,627)
Other loans— — — — — (704)— (704)
Total Charge-offs$(369)$(2,323)$(320)$(946)$(177)$(813)$(87,074)$(92,022)
The Company has agreements with a partner to originate and service fintech loans, which includes credit enhancement provisions through which incurred losses on fintech loans are covered by the partner. The Company recognizes an estimate of loss on this portfolio through its allowance for credit losses on its fintech loans on the Condensed Consolidated Balance Sheets, with provision for credit losses on fintech loans recognized on the Condensed Consolidated Statements of Operations. In addition, the Company recognizes a corresponding amount of credit enhancement asset on the Condensed Consolidated Balance Sheets and non-interest income — fintech loan credit enhancement in the Condensed Consolidated Statements of Operations. The measurement of the expected loan losses and the related credit enhancement are based on the same estimate and are equal and correlate to like amounts in the Condensed Consolidated Statements of Operations. The Company has recognized a credit enhancement asset on the Condensed Consolidated Balance Sheets related to the estimated recovery of its realized losses on fintech loans of $30.7 million and $31.1 million as of June 30, 2026 and December 31, 2025, respectively. All fintech loans are covered by credit enhancement agreements as of June 30, 2026.
18
Direct lease financing
The scheduled maturities of the direct financing leases reconciled to the total lease receivables as of June 30, 2026 are as follows (dollars in thousands):
Remaining 2026$171,677 
2027158,455 
2028106,615 
202963,329 
203028,964 
2031 and thereafter 8,118 
Total undiscounted cash flows537,158 
Residual value(1)
218,114 
Difference between undiscounted cash flows and discounted cash flows(84,370)
Present value of lease payments recorded as lease receivables$670,902 
(1) Of the total residual value, $41.1 million is not guaranteed by the lessee or other guarantors.
Off-Balance Sheet Exposure
In addition to estimating credit loss for outstanding loans, the Company estimates expected credit losses over the entire period in which there is exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The estimate of loss for unfunded loan commitments relates to our off-balance sheet credit exposure, and is adjusted through the provision for unfunded commitments. The estimate considers the likelihood that funding will occur over the estimated life of the commitment. The amount of the reserve on such exposures as of June 30, 2026 and as of December 31, 2025 was $1.5 million and $1.4 million, respectively, and is recognized within Other liabilities in the Condensed Consolidated Balance Sheets.

Note 6. Debt
The Company’s debt and borrowing arrangements consist of:
June 30,
2026		December 31,
2025
(Dollars in thousands)
Short-term borrowings$744,000 $199,000 
Senior debt:
Senior notes due 2030$200,000 $200,000 
Debt issuance costs(3,472)(3,747)
Senior debt, net$196,528 $196,253 
Subordinated debentures$13,401 $13,401 
Other long-term borrowings$4,327 $13,712 
Assets pledged as collateral that are not available to pay the Company’s general obligations as of June 30, 2026 consisted of $4.87 billion of loans held for investment at amortized cost and $1.36 billion of investment securities that were pledged for short-term-borrowing agreements. In addition, there were $4.3 million of loans held for investment at amortized cost that were pledged for other long-term borrowings at June 30, 2026.
Short-term borrowings
The Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank lines are periodically utilized to manage liquidity. The amount of loans pledged varies and the collateral may be unpledged at any time to the extent the collateral exceeds advances. As of June 30, 2026, based on the amount of loans and investment securities pledged, as outlined above, total capacity of short-term borrowings was $4.53 billion, there was $744.0 million borrowed and $3.79 billion available capacity.
19

Note 7. Fair Value Measurements
Recurring Measurements
Assets measured at fair value on a recurring basis are outlined below, summarized by fair value hierarchy (dollars in thousands):
June 30, 2026
TotalLevel 1Level 2Level 3
Investment securities, available-for-sale:
U.S. Government agency securities$22,524 $— $22,524 $— 
Asset-backed securities226,569 — 226,569 — 
Obligations of states and political subdivisions31,307 — 31,307 — 
Residential mortgage-backed securities434,913 — 434,913 — 
Collateralized mortgage obligation securities51,512 — 51,512 — 
Commercial mortgage-backed securities848,065 — 848,065 — 
Total investment securities, available-for-sale1,614,890 — 1,614,890 — 
Commercial loans, at fair value114,162 — — 114,162 
Credit enhancement asset30,733 — 30,733 — 
$1,759,785 $— $1,645,623 $114,162 
December 31, 2025
TotalLevel 1Level 2Level 3
Investment securities, available-for-sale:
U.S. Government agency securities$25,109 $— $25,109 $— 
Asset-backed securities234,101 — 234,101 — 
Obligations of states and political subdivisions28,563 — 28,563 — 
Residential mortgage-backed securities464,323 — 464,323 — 
Collateralized mortgage obligation securities57,580 — 57,580 — 
Commercial mortgage-backed securities862,074 — 862,074 — 
Total investment securities, available-for-sale1,671,750 — 1,671,750 — 
Commercial loans, at fair value139,389 — — 139,389 
Credit enhancement asset31,138 — 31,138 — 
$1,842,277 $— $1,702,888 $139,389 
Activity in Level 3 Commercial loans at fair value is summarized below (dollars in thousands):
Six Months Ended June 30,
20262025
Beginning balance$139,389 $223,115 
Total net gains (realized/unrealized) included in earnings(1)
136 705 
Purchases, advances, sales and settlements:
Advances133 2,953 
Settlements(25,496)(41,297)
Ending balance$114,162 $185,476 
Amount included in earnings attributable to the change in unrealized gains (losses)
     related to assets still held at period end		$— $— 
(1)For commercial loans at fair value, gains or losses are recognized in Non-interest income—Net realized and unrealized gains on commercial loans, at fair value in the Condensed Consolidated Statement of Operations.
20
Information related to assumptions used in the valuation of Level 3 instruments is as follows:
Discount Rate Assumption
At June 30, 2026At December 31, 2025
RangeWeighted averageRangeWeighted average
Commercial loans, at fair value:
Commercial - SBA5.71 %5.71 %5.73 %5.73 %
Non-SBA commercial real estate8.50 %8.50 %
6.50%-8.98%
6.94 %
Non-Recurring Measurements
Assets measured at fair value on a nonrecurring basis consist of certain loans that are collateral-dependent with specific reserves that are recognized in Loans, net on our Condensed Consolidated Balance Sheets, and Other real estate owned.
Collateral-dependent loans were $28.9 million and $15.2 million as of June 30, 2026 and December 31, 2025, respectively. Loans recorded at amortized cost that are in non-accrual status are treated as collateral dependent to the extent they have resulted from borrower financial difficulty (and not from administrative delays or other mitigating factors) and are not brought current. For these loans, fair value is measured based on inputs including recent sales of similar collateral, and is a Level 3 measurement. At June 30, 2026, the Company’s basis in the non-accrual loans, or the loan principal of $34.1 million was reduced by specific reserves of $5.2 million within the ACL as of that date, representing the deficiency between principal and estimated collateral values, which were reduced by estimated costs to sell.
Other real estate owned (OREO) were $62.0 million and $60.7 million as of June 30, 2026 and December 31, 2025, respectively and are periodically measured for impairment based on any decline in fair value below carrying value. For OREO, fair value is based upon appraisals of the underlying collateral by third-party appraisers, reduced by 7% to 10% for estimated selling costs, and is a Level 3 non-recurring measurement. During the three and six months ended June 30, 2026 and 2025, the Company did not recognize any unrealized losses from the impairment of OREO and did not recognize any gains (losses) on the disposition of OREO. Unrealized and realized gains or losses on OREO are recognized in Other Non-interest expense in the Condensed Consolidated Statements.
Fair Value of Other Financial Instruments
The following tables provide information regarding carrying amounts and estimated fair values of all the Company’s financial instruments (dollars in thousands):
June 30, 2026
Fair Value
Carrying
amount		Total
Fair Value		Level 1Level 2Level 3
ASSETS:
Investment securities, available-for-sale$1,614,890 $1,614,890 $— $1,614,890 $— 
Commercial loans, at fair value 114,162 114,162 — — 114,162 
Loans, net of deferred loan fees and costs7,073,906 7,046,464 — — 7,046,464 
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks50,115 50,115 — — 50,115 
Accrued interest receivable43,342 43,342 — 43,342 — 
Credit enhancement asset30,733 30,733 — 30,733 — 
LIABILITIES:
Deposits
Demand and interest checking$7,353,151 $7,353,151 $— $7,353,151 $— 
Savings and money market 123,051 123,051 — 123,051 — 
Short-term borrowings744,000 744,000 — 744,000 — 
Senior debt196,528 204,262 — 204,262 — 
Subordinated debentures13,401 9,668 — — 9,668 
Other long-term borrowings4,327 4,327 — 4,327 — 
Other liabilities: Accrued interest payable5,457 5,457 — 5,457 — 
21
December 31, 2025
Fair Value
Carrying
amount		Total
Fair Value		Level 1Level 2Level 3
ASSETS:
Investment securities, available-for-sale$1,671,750 $1,671,750 $— $1,671,750 $— 
Commercial loans, at fair value 139,389 139,389 — — 139,389 
Loans, net of deferred loan fees and costs7,116,676 7,073,348 — — 7,073,348 
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks25,205 25,205 — — 25,205 
Accrued interest receivable43,090 43,090 — 43,090 — 
Credit enhancement asset31,138 31,138 — 31,138 — 
LIABILITIES:
Deposits
Demand and interest checking$7,827,037 $7,827,037 $— $7,827,037 $— 
Savings and money market 338,459 338,459 — 338,459 — 
Short-term borrowings199,000 199,000 — 199,000 — 
Senior debt196,253 202,503 — 202,503 — 
Subordinated debentures 13,401 11,220 — — 11,220 
Other long-term borrowings13,712 13,712 — 13,712 — 
Other liabilities: Accrued interest payable6,802 6,802 — 6,802 — 

Note 8. Shareholders’ Equity
Share Repurchases
2026 Repurchase Program
On July 7, 2025, the Board authorized a share repurchase program of up to $200.0 million for 2026 (the “2026 Repurchase Plan”).
During the three and six months ended June 30, 2026, the Company repurchased 870,129 and 1,713,190 shares of its common stock in the open market under the 2026 Repurchase Program at an average price of $57.46 and $58.37 per share, respectively.
2025 Repurchase Program
On October 23, 2024, the Board approved a common stock repurchase program for the 2025 fiscal year (the “2025 Repurchase Program”), which authorizes the Company to repurchase $37.5 million in value of the Company’s common stock per fiscal quarter in 2025, for a maximum amount of $150.0 million. On July 7, 2025, the Board authorized the increase of the capacity of the Company’s existing share repurchase program for the third and fourth quarters of 2025 to $300.0 million.
During the three and six months ended June 30, 2025, the Company repurchased 753,898 and 1,438,343 shares of its common stock in the open market under the 2025 Repurchase Program at an average price of $49.75 and $52.15 per share, respectively.
Stock-Based Compensation
Restricted Stock Units (RSUs)
In the first quarter of 2026, the Company granted 388,821 RSUs, having a vesting period of three years. At issuance, the RSUs had a fair value of $62.05 per unit.
For additional information regarding the Company’s stock-based compensation plans, see Note 13, “Stock-Based Compensation,” in the 2025 Form 10-K.
22
Note 9. Regulatory Matters
It is the policy of the Federal Reserve that financial holding companies should pay cash dividends on common stock only out of income available over the past year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. The policy provides that a financial holding company should not maintain a level of cash dividends that undermines the financial holding company’s ability to serve as a source of strength to its banking subsidiaries.
Various federal and state statutory provisions limit the amount of dividends that subsidiary banks can pay to their holding companies without regulatory approval. Without the prior approval of the OCC, a dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years. Additionally, a dividend may not be paid in excess of a bank’s retained earnings. Moreover, an insured depository institution may not pay a dividend if the payment would cause it to be less than “adequately capitalized” under the prompt corrective action framework as defined in the Federal Deposit Insurance Act or if the institution is in default in the payment of an assessment due to the FDIC. Similarly, a banking organization that fails to satisfy regulatory minimum capital conservation buffer requirements will be subject to certain limitations, which include restrictions on capital distributions.
In addition to these explicit limitations, federal and state regulatory agencies are authorized to prohibit a banking subsidiary or financial holding company from engaging in an unsafe or unsound practice. Depending upon the circumstances, the agencies could take the position that paying a dividend would constitute an unsafe or unsound banking practice.
As of June 30, 2026, the Bank met all regulatory requirements for classification as well capitalized under the regulatory framework for prompt corrective action.
The following table sets forth our regulatory capital ratios for the periods indicated:
Tier 1 capital
to average
assets ratio		Tier 1 capital
to risk-weighted
assets ratio		Total capital
to risk-weighted
assets ratio		Common equity
Tier 1 to risk
weighted assets
As of June 30, 2026
The Bancorp, Inc.7.26%11.41%12.45%11.41%
The Bancorp Bank, National Association9.09%14.27%15.32%14.27%
"Well capitalized" institution (under federal regulations-Basel III)5.00%8.00%10.00%6.50%
As of December 31, 2025
The Bancorp, Inc.7.64%11.08%12.19%11.08%
The Bancorp Bank, National Association9.70%14.03%15.13%14.03%
"Well capitalized" institution (under federal regulations-Basel III)5.00%8.00%10.00%6.50%

Note 10. Commitments and Contingencies
THE CFPB CID Matter. On March 27, 2023, the Bank received a Civil Investigative Demand (“CID”) from the Consumer Financial Protection Bureau (“CFPB”) seeking documents and information related to the Bank’s escheatment practices in connection with certain accounts offered through one of the Bank’s program partners. The Bank responded to the CID and has not received further inquiries from the CFPB regarding the matter.

The City Attorney of San Francisco Matter. On November 21, 2023, TBBK Card Services, Inc. (“TBBK Card”), a wholly-owned subsidiary of the Bank, was served with a complaint filed in the Superior Court of the State of California (the “California Superior Court”), captioned People of the State of California, acting by and through San Francisco City Attorney David Chiu, Plaintiff v. InComm Financial Services, Inc., TBBK Card Services, Inc., Sutton Bank, Pathward, N.A., and Does 1-10, Defendants. The complaint principally alleges that the defendants engaged in unlawful, unfair, or fraudulent business acts and practices related to the packaging of “Vanilla” prepaid cards and the refund process for unauthorized transactions that occurred due to card draining practices. On December 14, 2023, the case was removed to the U.S. District Court for the Northern District of California. On March 26, 2024, the case was remanded to the California
23
Superior Court. TBBK Card has vigorously defended against the claims. On May 6, 2024, TBBK Card filed a motion to quash service of the summons as to TBBK Card for lack of personal jurisdiction. TBBK Card’s motion to quash, and subsequent related appeals, were denied. On December 12, 2025, an amended complaint containing additional factual allegations was filed in the California Superior Court. The Company is not yet able to determine whether the ultimate resolution of this matter will have a material adverse effect on the Company’s financial condition or operations.

The Oxygen Matter. On November 25, 2024, the Bank commenced arbitration through the American Arbitration Association seeking approximately $1.808 million from Oxygen, Inc. (“Oxygen”) owed under a Private Label Account Program Agreement related to unpaid invoices and indemnification obligations owed by Oxygen. On January 13, 2025, Oxygen answered the Bank’s arbitration demand, generally denying the allegations made by the Bank, and filed a Counterclaim against the Bank. The Counterclaim alleges (i) that the termination of the Private Label Account Program Agreement was pretextual, (ii) the Bank breached its notification obligations in terminating the Private Label Account Program Agreement, (iii) the Bank breached the implied covenant of good faith and fair dealing, and (iv) conversion of $1.2 million by the Bank. The ad damnum clause of the Counterclaim also seeks compensatory damages in an amount not less than $40 million. The Bank believes it has meritorious defenses and intends to vigorously defend against the Counterclaim. The Company is not yet able to determine whether the ultimate resolution of this matter will have a material adverse effect on the Company’s financial condition or operations.

The Putative Class Action Matter. On March 14, 2025, Nathan Linden filed a putative securities class action complaint captioned Nathan Linden v. The Bancorp, Inc., et al. in the U.S. District Court for the District of Delaware against the Company and certain of its current and former officers. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder and purports to assert a class action on behalf of persons and entities that purchased or otherwise acquired Company securities between January 25, 2024 and March 4, 2025. The complaint alleges, among other things, that the defendants made materially false and/or misleading statements and omissions about the Company’s business, prospects, and operations, with a focus on the Company’s commercial real estate bridge loan (“REBL”) portfolio and related provision for credit losses. On September 29, 2025, the court appointed Southeastern Pennsylvania Transportation Authority (“SEPTA”) as lead plaintiff; the case is now captioned Southeastern Pennsylvania Transportation Authority v. The Bancorp, Inc., et al. On December 22, 2025, SEPTA filed its amended class action complaint, which alleges that between January 26, 2024 and March 25, 2025, the defendants made materially false and/or misleading statements and omissions about certain loans in the Company’s REBL portfolio and related provision for credit losses. The named plaintiff seeks unspecified damages, fees, interest, and costs. The Company intends to vigorously defend against the allegations in the amended complaint. On February 20, 2026, the Company filed its motion to dismiss the amended complaint. On April 21, 2026, SEPTA filed its opposition to the Company’s motion to dismiss. On June 5, 2026, the Company filed its reply in support of its motion to dismiss. The Court’s decision on the Company’s motion to dismiss the amended complaint remains pending.. The Company is not yet able to determine whether the ultimate resolution of the matter will have a material adverse effect on the Company’s financial condition or operations.

The Ingenium Matter. On February 2, 2026, the Bank was made aware of a complaint filed in the Delaware Superior Court, Complex Commercial Division by Ingenium Capital Group, LLC (“Ingenium”) captioned as Ingenium Capital Group, LLC v. The Bancorp Bank, N.A., C.A. No. N26C-01-487 PAW CCLD. Prior to service of the complaint, on February 19, 2026, Ingenium filed its amended complaint. In the amended complaint, Ingenium alleges that the Bank committed fraud or breached a letter of understanding signed in January 2023 by inducing Ingenium to invest upwards of $10 million in Oxygen, Inc. (the same entity that the Bank is arbitrating against in the Oxygen Matter described above) and then by terminating its contract with Oxygen in February 2024. The amended complaint seeks not less than $10 million in damages, plus costs of litigation, and interest. The Bank intends to vigorously defend against the claims. On May 19, 2026, the Bank filed its motion to dismiss the amended complaint. On June 26, 2026, Ingenium filed its opposition to the Bank’s motion to dismiss. As of June 30, 2026, briefing on the Bank’s motion to dismiss had not yet been completed. We are not yet able to estimate any potential liability of the Bank.

In addition, we are a party to various routine legal proceedings arising out of the ordinary course of our business. Management believes that none of these actions, individually or in the aggregate, will have a material adverse effect on our financial condition or operation.


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Note 11. Segment Financials
The Company's operations are substantially all located in the United States, and are reported under three segments: Fintech, Credit Solutions (which has three sub-segments) and Corporate.
The following tables provide segment information for the periods indicated (dollars in thousands):
Three months ended June 30, 2026
Credit Solutions
FintechREBLInstitutional BankingCommercialCorporateTotal
Interest income$2,834 $45,103 $29,104 $32,883 $22,125 $132,049 
Interest allocation63,802 (24,265)(18,502)(17,894)(3,141)— 
Interest expense32,897 — 1,226 10 7,450 41,583 
Net interest income 33,739 20,838 9,376 14,979 11,534 90,466 
Provision for credit losses(1)
25,765 (294)60 1,071 (513)26,089 
Non-interest income(1)
67,366 2,772 733 1,929 240 73,040 
Direct non-interest expense:
Salaries and employee benefits4,875 1,203 776 4,678 25,894 37,426 
 Data processing expense378 48 647 1 313 1,387 
Software284 28 645 440 4,235 5,632 
Other 2,482 1,192 274 1,823 6,260 12,031 
Total direct non-interest expense8,019 2,471 2,342 6,942 36,702 56,476 
Income before non-interest expense allocations67,321 21,433 7,707 8,895 (24,415)80,941 
Non-interest expense allocations:
Risk, financial crimes, and compliance7,838 713 942 1,541 (11,034)— 
Information technology and operations3,735 242 1,123 2,133 (7,233)— 
Other allocated expenses4,069 838 1,426 1,966 (8,299)— 
Total non-interest expense allocations15,642 1,793 3,491 5,640 (26,566)— 
Income before taxes51,679 19,640 4,216 3,255 2,151 80,941 
Income tax expense12,951 4,922 1,057 816 539 20,285 
Net income $38,728 $14,718 $3,159 $2,439 $1,612 $60,656 

Three months ended June 30, 2025
Credit Solutions
FintechREBLInstitutional BankingCommercialCorporateTotal
Interest income$486 $48,904 $29,069 $32,990 $31,699 $143,148 
Interest allocation64,622 (23,479)(16,583)(16,947)(7,613)— 
Interest expense42,814 — 888 10 1,944 45,656 
Net interest income22,294 25,425 11,598 16,033 22,142 97,492 
Provision for credit losses(1)
43,233 (116)(146)1,425 (33)44,363 
Non-interest income(1)
78,907 2,283 79 2,443 31 83,743 
Direct non-interest expense:
Salaries and employee benefits4,401 1,160 2,545 4,688 24,340 37,134 
Data processing expense335 46 497 1 348 1,227 
Software148 27 717 505 3,747 5,144 
Other2,988 1,249 275 2,141 7,065 13,718 
Total direct non-interest expense7,872 2,482 4,034 7,335 35,500 57,223 
Income before non-interest expense allocations50,096 25,342 7,789 9,716 (13,294)79,649 
Non-interest expense allocations:
Risk, financial crimes, and compliance7,490 604 839 1,365 (10,298)— 
Information technology and operations3,613 199 1,535 2,101 (7,448)— 
Other allocated expenses4,091 833 1,755 1,958 (8,637)— 
Total non-interest expense allocations15,194 1,636 4,129 5,424 (26,383)— 
Income before taxes34,902 23,706 3,660 4,292 13,089 79,649 
Income tax expense8,689 5,901 911 1,068 3,259 19,828 
Net income$26,213 $17,805 $2,749 $3,224 $9,830 $59,821 
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Six months ended June 30, 2026
Credit Solutions
FintechREBLInstitutional BankingCommercialCorporateTotal
Interest income$4,660 $89,810 $56,948 $65,261 $45,161 $261,840 
Interest allocation120,762 (45,928)(34,137)(33,887)(6,810)— 
Interest expense64,761 — 2,732 20 15,047 82,560 
Net interest income 60,661 43,882 20,079 31,354 23,304 179,280 
Provision for credit losses(1)
54,609 553 (100)(826)(546)53,690 
Non-interest income(1)
135,797 3,939 1,051 4,516 262 145,565 
Direct non-interest expense
Salaries and employee benefits9,624 2,328 1,816 9,699 51,436 74,903 
Data processing expense759 92 1,228 3 614 2,696 
Software527 56 1,269 948 8,201 11,001 
Other 5,169 2,428 550 3,864 10,891 22,902 
Total direct non-interest expense16,079 4,904 4,863 14,514 71,142 111,502 
Income before non-interest expense allocations125,770 42,364 16,367 22,182 (47,030)159,653 
Non-interest expense allocations:
Risk, financial crimes, and compliance15,649 1,420 1,881 3,071 (22,021)— 
Information technology and operations7,538 497 2,335 4,436 (14,806)— 
Other allocated expenses8,193 1,732 2,910 4,032 (16,867)— 
Total non-interest expense allocations31,380 3,649 7,126 11,539 (53,694)— 
Income before taxes94,390 38,715 9,241 10,643 6,664 159,653 
Income tax expense 23,068 9,440 2,247 2,566 1,607 38,928 
Net income $71,322 $29,275 $6,994 $8,077 $5,057 $120,725 

Six months ended June 30, 2025
Credit Solutions
FintechREBLInstitutional BankingCommercialCorporateTotal
Interest income$726 $96,775 $57,081 $64,897 $63,471 $282,950 
Interest allocation138,002 (47,848)(33,319)(34,663)(22,172)— 
Interest expense85,557 — 2,531 20 5,607 93,715 
Net interest income53,171 48,927 21,231 30,214 35,692 189,235 
Provision for credit losses(1)
89,101 192 (214)2,189 (52)91,216 
Non-interest income(1)
159,249 2,803 354 4,785 194 167,385 
Direct non-interest expense
Salaries and employee benefits8,730 2,374 5,345 9,978 44,376 70,803 
Data processing expense622 82 990 4 734 2,432 
Software306 53 1,483 979 7,336 10,157 
Other5,599 2,809 594 4,258 13,865 27,125 
Total direct non-interest expense15,257 5,318 8,412 15,219 66,311 110,517 
Income before non-interest expense allocations108,062 46,220 13,387 17,591 (30,373)154,887 
Non-interest expense allocations:
Risk, financial crimes, and compliance14,529 1,180 1,627 2,662 (19,998)— 
Information technology and operations7,119 389 3,051 4,111 (14,670)— 
Other allocated expenses8,178 1,657 3,444 3,884 (17,163)— 
Total non-interest expense allocations29,826 3,226 8,122 10,657 (51,831)— 
Income before taxes78,236 42,994 5,265 6,934 21,458 154,887 
Income tax expense19,140 10,518 1,288 1,696 5,251 37,893 
Net income$59,096 $32,476 $3,977 $5,238 $16,207 $116,994 

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_______________
(1) The following table summarizes the Non-interest income of the Fintech segment from the above segment net income tables. Fintech loan credit enhancement income represents the estimated recovery from a Fintech partner for losses on Fintech loans, where the measurement of the expected loan loss recorded in Provision for credit losses and estimated recovery from credit enhancement are based on the same estimate. The remaining amount of Fintech non-interest income is other fee income.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fintech loan credit enhancement$25,766 $43,233 $54,609 $89,101 
Fintech - other fee income41,600 35,674 81,188 70,148 
Fintech - Non-interest income, total$67,366 $78,907 $135,797 $159,249 

June 30, 2026
Credit Solutions
FintechREBLInstitutional BankingCommercialCorporateTotal
Total assets$1,014,634 $2,396,193 $2,081,888 $1,772,547 $1,950,715 $9,215,977 
Total liabilities$7,146,532 $1,350 $240,205 $6,673 $1,115,836 $8,510,596 
December 31, 2025
Credit Solutions
FintechREBLInstitutional BankingCommercialCorporateTotal
Total assets$1,177,306 $2,362,489 $1,981,479 $1,762,882 $2,068,269 $9,352,425 
Total liabilities$7,377,441 $1,817 $269,743 $5,591 $1,008,037 $8,662,629 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) provides information about our results of operations, financial condition, liquidity and asset quality. This information is intended to facilitate your understanding and assessment of significant changes and trends related to our financial condition and results of operations. This MD&A should be read in conjunction with our financial information in our Annual Report on Form 10-K for the year ended December, 31, 2025 (the “2025 Form 10-K”) and the interim Condensed Consolidated Financial Statements and notes thereto contained in this Quarterly Report on Form 10-Q.
MD&A is organized in the following sections:
•Overview
•Executive Summary
•Results of Operations
•Financial Condition
•Liquidity and Capital Resources
•Asset and Liability Management
Important Note Regarding Forward-Looking Statements
When used in this Quarterly Report on Form 10-Q, statements regarding The Bancorp’s business, that are not historical facts, are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward-looking statements include but are not limited to, statements regarding our annual fiscal 2026 results, increased growth, profitability, and volumes, and our ability to reallocate or reduce resources, and relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic, political, and technological factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to, the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our 2025 Form 10-K and other documents that we file from time to time with the Securities and Exchange Commission as well as the following:
•an inconsistent recovery from an extended period of unpredictable economic and growth conditions in the U.S. economy may adversely impact our assets and operating results and result in increases in payment defaults and other credit risks, decreases in the fair value of some assets and increases in our provision for credit losses;
•weak economic and credit market conditions, either globally, nationally or regionally, may result in a reduction in our capital base, reducing our ability to maintain deposits at current levels;
•changes in the interest rate environment, particularly in response to inflation, could adversely affect our revenue and expenses and the availability and cost of capital, cash flows and liquidity;
•volatility in the banking sector (including perception of such conditions) and responsive actions taken by governmental agencies to stabilize the financial system could result in increased regulation or liquidity constraints;
•operating costs may increase;
•adverse legislation or governmental or regulatory policies may be promulgated;
•we may fail to satisfy our regulators with respect to legislative and regulatory requirements;
•management and other key personnel may leave or change roles without effective replacements;
•increased competition may reduce our client base or cause us to lose market share;
•the costs of our interest-bearing liabilities, principally deposits, may increase relative to the interest received on our interest-bearing assets, principally loans, thereby decreasing our net interest income;
•loan and investment yields may decrease, resulting in a lower net interest margin;
•geographic concentration could result in our loan portfolio being adversely affected by regional economic factors;
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•the market value of real estate that secures certain of our loans may be adversely affected by economic and market conditions and other conditions outside of our control such as lack of demand, natural disasters, changes in neighborhood values, competitive overbuilding, weather, casualty losses and occupancy rates;
•cybersecurity risks, including data security breaches, ransomware, malware, “denial of service” attacks and identity theft, could result in disclosure of confidential information, operational interruptions and legal and financial exposure;
•natural disasters, pandemics, other public health crises, acts of terrorism, geopolitical conflict, including trade disputes and tariffs, sanctions, war or armed conflict, such as the conflicts between Russia and Ukraine and the ongoing military operations involving the U.S., Israel and Iran, and the possible expansion of such conflicts in surrounding areas, or other catastrophic events could disrupt the systems of us or third-party service providers and negatively impact general economic conditions;
•we may not be able to sustain our historical growth rates in our loan, prepaid and debit card and other lines of business;
•our focus on growth in fintech solutions and investing in our infrastructure, including through artificial intelligence tools to gain efficiency and productivity, and the future potential impact on our operations and financial condition may result in new operational, legal and financial risks;
•risks related to actual or threatened litigation;
•our ability to maintain effective internal control over financial reporting;
•our internal controls and procedures may fail or be circumvented, and our risk management policies may not be adequate; and
•we may not be able to manage credit risk to desired levels, improve our net interest margin and monitor interest rate sensitivity, manage our real estate exposure to capital levels and maintain flexibility if we achieve asset growth.
We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof and are based on information presently available to our management. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q except as required by applicable law.
Overview
We are a Delaware financial holding company, and our primary, wholly owned subsidiary is The Bancorp Bank, National Association. The Bank is a federally chartered commercial bank located in Sioux Falls, South Dakota and is an FDIC insured institution. Most of our revenue and income is currently generated through the Bank. An overview of our operations follows, including discussion of Fintech Solutions and Credit Solutions.
Our business strategy is focused on Fintech Solutions, which partners with fintech companies and other technology focused payment-based providers (collectively “partners”) to deliver payment, deposit, and sponsored lending products that attract stable, lower-cost deposits and generate fee income. Our fintech services are provided to organizations with a pre-existing customer base, and the products are tailored to support or complement the services provided by these organizations to their customers. We typically provide these services under the name and through the facilities of each organization with whom we develop a relationship. Fintech services include:
Program sponsorship includes debit, credit and prepaid cards that we issue for companies that market directly to end users. Our card-accessed deposit account types are diverse and include: consumer and business debit, general purpose reloadable prepaid, pre-tax medical spending benefit, payroll, gift, government, corporate incentive, reward, business payment accounts and others. The Bank issues the cards, provides access to the card networks, maintains deposits, and is the sponsor bank of record for accounts.
Payment services delivers real-time, end-to-end payment processing, including automated clearing house (“ACH”) and Rapid Funds Transfer products. Our ACH accounts facilitate bill payments and our acquiring accounts provide clearing and settlement services for payments made to merchants which must be settled through associations such as Visa or Mastercard.
Sponsored lending, or Fintech loans, consist of secured credit cards and unsecured short-term extensions of credit that are originated by the Bank, with the marketing and servicing assistance of our partners. The revenue generated through fintech loan agreements is primarily fee revenue and not interest income.
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Deposits generated through these partner relationships are deployed into loan and lease products offered by both Fintech sponsored lending and the Credit Solutions business line. As of June 30, 2026, 96% of our total deposits were sourced from the Fintech Solutions business, primarily from program sponsorship.
Credit Solutions is our lending business and is focused on offering flexible, specialty credit solutions, and we develop customized products and programs to meet the needs of our clients. Our loan programs include: (i) Real estate bridge lending (REBL), which is comprised primarily of apartment building rehabilitation loans; (ii) Institutional Banking, which is comprised of security-backed lines of credit (SBLOC), cash value insurance policy-backed lines of credit (IBLOC) and advisor financing; and (iii) Commercial Loans which includes Small Business Loans (“SBL”) which is comprised primarily of Small Business Administration (“SBA”) loans and direct lease financing. Our total loan portfolio also includes the Fintech loans generated by the Fintech Solutions business. The loans in our non-fintech portfolio are secured by collateral, and the fintech loans are backed by credit enhancement agreements from our partners.
Executive Summary
We remain focused on growing our fintech revenues through new partnerships, products and services. Fintech loans of $901.5 million as of June 30, 2026 increased 32% compared to the June 30, 2025 balance of $680.5 million. Certain loan fees on fintech loans are recorded as non-interest income and totaled $6.5 million for the quarter ended June 30, 2026, a 65% increase compared to $4.0 million for the quarter ended June 30, 2025.
We continue to invest in our infrastructure, with a focus on investing in artificial intelligence tools to gain efficiency and productivity of our people and platform, and reallocating or reducing resources where appropriate. We believe that our infrastructure can accommodate significant additional growth without proportionate increases in expense.
We remain focused on returning capital through share repurchases, and repurchased 870,129 shares of our common stock at an average cost of $57.46 per share during the quarter ended June 30, 2026. Primarily driven by share repurchases, outstanding shares, net of treasury shares at June 30, 2026 decreased 3% to 41.043 million from 42.355 million shares at December 31, 2025.
Financial Highlights
Financial highlights include:
(Dollars in millions, except per share data)Three months ended June 30,Six months ended June 30,
2026202520262025
Results of Operations
Net income$60.7$59.8$120.7$117.0
Net income per share - basic$1.46$1.28$2.89$2.49
Net income per share - diluted$1.45$1.27$2.86$2.46
Key Performance Indicators
Return on assets2.51%2.64%2.53%2.56%
Return on equity34.7%28.4%34.90%28.60%
Equity to assets (as of period end)n/an/a7.65%9.73%
Net interest margin3.85%4.44%3.86%4.25%
Average deposits$8,414$8,057$8,366$8,183
Average loans and leases$7,629$6,569$7,443$6,478
Non-interest income: fintech fees$40.9 $35.6 $79.0 $70.1 
Prepaid, debit and credit card gross dollar volume (GDV)(1)
$53,453 $43,649 $105,966 $88,299 
(1)Gross dollar volume represents the total dollar amount spent on prepaid, debit and credit cards issued by The Bancorp Bank, N.A.
Our net income increased to $60.7 million in the second quarter of 2026 from $59.8 million in the second quarter of 2025, an increase of $0.9 million, or 1.4%.
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Earnings per diluted share increased to $1.45 in the second quarter of 2026 from $1.27 in the second quarter of 2025, an increase of 14.2%, driven both by the increase in net income and a 5.4 million decrease in weighted average diluted shares, primarily driven by our share repurchase activity during the year.
Key components of our change in net income between periods include:
•Net interest income decreased $7.0 million, consisting of an $11.1 million decrease in interest income partially offset by a $4.1 million decrease in interest expense. The most significant drivers of the decrease in interest income are $6.9 million lower interest income from deposits driven by elevated average interest-earning deposits from customers in the second quarter of 2025 due to wildfire insurance refund balances, a $3.0 million one-time gain recognized in investment interest income in the second quarter of 2025 from the repayment of a CRE-2 investment security. The decrease in interest expense is primarily driven by $9.6 million lower interest expense on deposit balances partially offset by higher interest expense of $2.7 million from senior debt due to the August 2025 facility upsizing and increase in rate.
•Non-interest income decreased $10.7 million, to $73.0 million in the second quarter of 2026 from $83.7 million in the second quarter of 2025. That decrease is driven by a $17.4 million decrease in Fintech loan credit enhancement income driven by improved performance of fintech loans, partially offset by a $5.3 million increase in total fintech fees primarily driven by volume growth, and a $2.1 million increase in other non-interest income driven by higher other fee income on loans and deposit sweep income.
•Provision for credit losses, total decreased $18.3 million, to $26.1 million in the second quarter of 2026, from $44.4 million in the second quarter of 2025. That decrease includes a $17.4 million decrease in provision for fintech loans, which directly relates to the credit enhancement income decrease outlined above. See further discussion of fintech loans and the related credit enhancement in “Financial Condition—Total Loan Portfolio—Fintech Programs” in this MD&A.
Detailed discussion of our financial results and the drivers of these fluctuations follows in “Results of Operations.”
Our strategic focus on growing our fintech business fee-based income and fintech loan portfolio had an impact on our KPIs as follows:
Average loans and leases grew to $7.63 billion in the second quarter of 2026 from $6.57 billion in the second quarter of 2025, an increase of $1.06 billion or 16.1%, primarily driven by a $853.9 million increase in our average fintech portfolio, reflecting our continued strategic shift towards sponsored lending.
Non-interest income fintech fees increased $5.3 million, or 14.7%, to $40.9 million in the second quarter of 2026, which includes a $2.5 million increase in consumer credit fintech fees and a $2.7 million increase in prepaid, debit card, ACH and other fees. The growth in consumer credit fintech fees reflects continued organic volume growth with existing partners and products and the impact of new products launched within the past year. The growth in prepaid, debit card and related fees is driven by an increase in gross dollar volume (“GDV”) to $53.5 billion, a 22.5% increase from $43.6 billion in the second quarter of 2025. GDV growth may not have a direct impact on the related fee income due to the different product fee structures within the total mix.
Net interest margin decreased to 3.85% in the second quarter of 2026 from 4.44% in the second quarter of 2025, driven by the shift in our loan portfolio to a greater percentage of fintech loans, for which we primarily earn fee income and not interest income, combined with the impact of Federal Reserve rate decreases from the third and fourth quarters of 2025. See further discussion of the growth in Fintech lending contributing to margin compression under “Results of Operations—Net Interest Income—Growth of Fintech Lending” in the following section.
Our efforts to return capital to shareholders through share repurchases have had an impact on our ratio of equity to assets. At June 30, 2026, the ratio of equity to assets was 7.65%, compared to 7.38% at December 31, 2025, primarily driven by reductions in equity from share repurchases partially offset by an increase in equity capital from retained earnings.
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Results of Operations - Three Months Ended June 30, 2026 and 2025
Net Interest Income
Our net interest income for the second quarter of 2026 decreased $7.0 million, or 7.2%, to $90.5 million from $97.5 million in the second quarter of 2025.
Growth of Fintech Lending. Our strategy is to continue to drive growth in our Fintech lending business, as seen by the shift in mix to Fintech representing 18.2% of our total average loan portfolio in the second quarter of 2026, compared to 8.2% for the second quarter of 2025. A significant portion of these loans are zero percent interest and, as such, do not recognize interest income, however we do generate fee revenue from these loans, through our partnership agreements. This mix shift to non-interest earning loans results in a reduction of the calculated average rate earned by total loans, average rate earned by our total interest-earning assets, and net interest margin in the above analysis. Offsetting these impacts is the growth in Consumer fintech fee income recognized within non-interest income in our Consolidated Statements of Operations which was $6.5 million and $4.0 million for the second quarters of 2026 and 2025, respectively.
We expect to continue to increase the proportion of Fintech loans in our portfolio through the remainder of 2026 and beyond, and therefore we expect to see continued compression in our average rate earned on loans, and net interest margin, as the mix of fintech loans continues to grow. However, we also expect growth in our fintech fees within non-interest income driven by the increase in that portfolio.
Interest Income
Interest income for the second quarter of 2026 was $132.0 million, a decrease of $11.1 million from $143.1 million in the second quarter of 2025, primarily driven by $6.9 million lower income on interest-earning deposits and a one-time gain in 2025 of $3.0 million from a CRE-2 investment security, which was repaid in full. In the second quarter of 2025, average deposits on balance sheet from customers of $756.6 million was significantly higher than $155.5 million in second quarter of 2026, driven by higher fintech on-balance sheet volumes.
Interest income from loans was $110.6 million in the second quarter of 2026, $1.7 million lower than $112.3 million in the second quarter of 2025, driven by $4.1 million lower interest earned on non-fintech loans partially offset by $2.3 million higher interest earned on fintech loans. For non-fintech loans, lower interest earned was primarily driven by lower rates, as the average rate decreased to 6.91% for the second quarter of 2026, compared to 7.42% for the second quarter of 2025, while average balance was 3.4% higher. The loan portfolio average rate reflects the impact of Federal Reserve rate decreases which continued in the third and fourth quarters of 2025. For fintech loans, higher interest income of $2.3 million was driven by higher volumes of interest-earning fintech loans. See “Growth of Fintech Lending” discussion above for further information.
Interest Expense
Interest expense for the second quarter of 2026 decreased $4.1 million to $41.6 million from $45.7 million in the second quarter of 2025, driven by $9.6 million lower interest expense on deposits, partially offset by $2.9 million higher interest on short-term borrowings and $2.7 million higher interest expense on senior debt.
Interest expense on deposits was $9.6 million lower, primarily driven by lower rates in 2026. Interest expense on short-term deposits was $2.9 million higher in 2026, as that funding source was utilized to fund higher average loans on balance sheet in the second quarter of 2026, compared to limited utilization in second quarter of 2025. Interest expense on senior debt was $2.7 million higher, due to higher outstanding principal and higher rate on senior debt. In August 2025, $200 million of 7.375% Senior Notes due 2030 were issued, the proceeds of which were used in part to repay at maturity the $100 million of outstanding 4.75% Senior notes due 2025.
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Average Daily Balances
The following table presents the average daily balances of assets, liabilities and shareholders’ equity and the respective interest earned or paid on interest-earning assets and interest-bearing liabilities, as well as average annualized rates, for the periods indicated:
(Dollars in thousands)Three months ended June 30,
20262025Increase (Decrease) due to:
Average BalanceInterestAvg. RateAverage BalanceInterestAvg. RateVolumeRateTotal
Assets:
Interest-earning assets:
Non-fintech loans$6,231,014 $107,634 6.91%$6,023,895 $111,702 7.42 %$3,841 $(7,909)$(4,068)
Fintech loans1,390,866 2,834 0.82%$536,978 4860.36 %773 1,575 2,348 
Loans, net of deferred loan fees and costs(1)
7,621,880 110,468 5.80%6,560,873 112,188 6.84 %4,614 (6,334)(1,720)
Leases-bank qualified(2)
7,028 146 8.31%7,723 174 9.01 %(16)(12)(28)
Investment securities-taxable(3)
1,619,710 19,924 4.92%1,462,603 22,393 6.12 %2,405 (1,857)548 
Investment securities-nontaxable(2)
12,648 197 6.23%8,385 131 6.25 %67 (1)66 
Interest-earning deposits 155,465 1,386 3.57%756,603 8,326 4.40 %(6,615)(325)(6,940)
Total interest-earning assets9,416,731 132,121 5.61%8,796,187 143,212 6.51 %455 (8,529)(8,074)
Allowance for credit losses(55,726)(52,444)
Other assets342,586 344,627 
Total assets$9,703,591 $9,088,370 
Liabilities and shareholders' equity:
Demand and interest checking$8,311,353 $33,400 1.61%$7,991,121 $43,402 2.17 %$1,739 $(11,741)$(10,002)
Savings and money market102,639 934 3.64%65,637 561 3.42 %316 57 373 
Total deposits 8,413,992 34,334 1.63%8,056,758 43,963 2.18 %2,055 (11,684)(9,629)
Short-term borrowings302,236 2,949 3.90%439 5 4.56 %3,437 (493)2,944 
Long-term borrowings10,146 147 5.80%13,957 198 5.67 %(54)3 (51)
Subordinated debt13,401 236 7.04%13,401 257 7.67 %— (21)(21)
Senior debt196,391 3,917 7.98%96,333 1,233 5.12 %1,281 1,403 2,684 
Total deposits and liabilities8,936,166 41,583 1.86%8,180,888 45,656 2.23 %6,719 (10,792)(4,073)
Other liabilities66,260 62,505 
Total liabilities 9,002,426 8,243,393 
Shareholders' equity701,165 844,977 
$9,703,591 $9,088,370 
Net interest income on tax equivalent basis(2)
$90,538 $97,556 $(6,264)$2,263 $(4,001)
Tax equivalent adjustment7264
Net interest income$90,466 $97,492 
Net interest margin(2)
3.85%4.44 %
_________
(1)Includes commercial loans, at fair value and non-accrual loans.
(2)Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2026 and 2025.
(3)Interest income in the second quarter of 2025 includes $3.0 million from a security that was known as “CRE-2” and which was related to the Company’s discontinued commercial real estate securitization business. CRE-2 was repaid in full in the quarter resulting in a one-time gain of $3.0 million, which was excluded from change due to rate in the above analysis.
For the second quarter of 2026 compared to second quarter of 2025, average interest-earning assets increased $620.5 million, reflecting a $1.06 billion increase in average loans and leases and a $161.4 million increase in average investment securities, partially offset by a decrease in average interest-earning deposits of $601.1 million. For those respective periods, average deposits and liabilities increased $755.3 million, driven by a $357.2 million increase in deposits, $301.8 million increase in short-term borrowings and a $100.1 million increase in senior debt.
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Net Interest Margin

Our net interest margin (calculated by dividing net interest income by average interest-earning assets) for the second quarter of 2026 was 3.85% compared to 4.44% for the second quarter of 2025, a decrease of 59 basis points. The average yield on interest-earning assets decreased 90 basis points, due to the shift of our portfolio mix to more fintech loans where we primarily earn fee income as discussed further under “Growth of Fintech Lending” above, plus lower market short-term interest rates. In addition, the cost of deposits and interest-bearing liabilities decreased 37 basis points, or a net change of 53 basis points, driven primarily by a 55 basis point decrease in average rate on deposits primarily due to a lower rate environment in the second quarter of 2026.
Provision for Credit Losses
Our provision for credit losses was $26.1 million for the second quarter of 2026, a decrease of $18.3 million compared to a provision of $44.4 million for the second quarter of 2025. The decrease is primarily attributable to $17.4 million lower provision for fintech loans driven by improved performance of that loan portfolio. The lower fintech loan provision correlates to a lower amount of related non-interest income from a credit enhancement contractually provided by a third party. Accordingly, there was no related net impact from these amounts. See further discussion of this program in “Financial Condition—Allowance for Credit Loss—Fintech Programs” in MD&A.
In addition, the provision for credit losses on non-fintech loans was $0.4 million in the second quarter of 2026 compared to provision expense of $1.5 million in the second quarter of 2025.
For more information about our provision, allowance and credit loss experience, see “Financial Condition—Portfolio Performance” below and “Note 5. Loans, net” to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
Non-Interest Income
Non-interest income was $73.0 million in the second quarter of 2026, a decrease of $10.7 million compared to $83.7 million in the second quarter of 2025. The decrease between those respective periods is primarily driven by a $17.4 million decrease in fintech loan credit enhancement income, which was partially offset by $5.3 million in higher total fintech fees and $2.1 million of higher other non-interest income.
Fintech loan credit enhancement income decreased $17.4 million driven by improved performance of fintech loans, which correlates to a like amount for provision for credit losses on fintech loans. See further discussion above under “Provision for Credit Losses.”
Total fintech fees increased $5.3 million, which includes a $1.7 million increase in prepaid, debit card and related fees, or 6.4%, to $27.8 million for the second quarter of 2026, compared to $26.1 million in the second quarter of 2025, driven by higher transaction volume from new clients and organic growth from existing clients. In addition, ACH, card and other payment processing fees increased $1.0 million, or 17.9%, to $6.6 million for the second quarter of 2026, compared to $5.6 million in the second quarter of 2025, reflecting an increase in rapid funds transfer volume. Consumer credit fintech fees increased $2.5 million, or 64.9%, to $6.5 million for the second quarter of 2026, compared to $4.0 million in the second quarter of 2025, reflecting increased loan volume.
Other non-interest income increased $2.1 million for the second quarter of 2026, compared to the second quarter of 2025, primarily driven by $1.3 million higher other fee income from loans and $0.7 million of fees earned on deposit sweeps.
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Non-Interest Expense
The following table presents the principal categories of non-interest expense for the periods indicated:
Three months ended June 30, 2026
20262025Increase (Decrease)
(Dollars in thousands)
Salaries and employee benefits$37,426 $37,134 $292 
Depreciation 1,230 1,125 105 
Rent and related occupancy cost 1,668 1,717 (49)
Data processing expense1,387 1,227 160 
Audit expense 498 545 (47)
Legal expense 1,221 1,863 (642)
FDIC insurance 1,106 1,202 (96)
Software5,632 5,144 488 
Insurance1,069 1,145 (76)
Telecom and IT network communications292 308 (16)
Consulting147 436 (289)
Other 4,800 5,377 (577)
Total non-interest expense$56,476 $57,223 $(747)
Total non-interest expense was $56.5 million for the second quarter of 2026, a decrease of $0.7 million, or 1.3%, compared to $57.2 million for the second quarter of 2025. The decrease reflects a $0.6 million decrease in legal expense due to higher costs in 2025 for payments related matters and regulatory filings.
Income Taxes
Income tax expense was $20.3 million for the second quarter of 2026 compared to $19.8 million in the second quarter of 2025. Our effective tax rate was 25.1%, and 24.9% in the second quarters of 2026 and 2025, respectively, based on a 21% federal tax rate and the impact of various state income taxes.
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Results of Operations - Six Months Ended June 30, 2026 and 2025
Net Interest Income
Our net interest income for the six months ended June 30, 2026 decreased $10.0 million, or 5.3%, to $179.3 million from $189.2 million in the six months ended June 30, 2025.
Growth of Fintech Lending. Our strategy is to continue to drive growth in our Fintech lending business, as seen in the shift in mix to Fintech representing 16.8% of our total average loan portfolio in the six months ended June 30, 2026, compared to 7.8% for the six months ended June 30, 2025. A significant portion of these loans are zero percent interest and, as such, do not recognize interest income, however we do generate fee revenue from these loans, through our partnership agreements. The shift to non-interest earning loans results in a reduction of the calculated average rate earned by total loans, average rate earned by our total interest-earning assets, and net interest margin in the above analysis. Offsetting these impacts is the growth in Consumer fintech fee income recognized within non-interest income in our Consolidated Statements of Operations which was $12.1 million and $7.6 million for the six months ended June 30, 2026 and 2025, respectively.
We expect to continue to increase the proportion of Fintech loans in our portfolio for the remainder of 2026 and beyond, and therefore we expect to see continued compression in our average rate earned on loans, and net interest margin, as the mix of fintech loans continues to grow. However, we also expect growth in our fintech fees within non-interest income driven by the increase in that portfolio.
Interest Income
Interest income for the six months ended June 30, 2026 was $261.8 million, a decrease of $21.2 million from $283.0 million in the six months ended June 30, 2025, primarily driven by $17.4 million lower income on interest-earning deposits and a one-time gain in 2025 of $3.0 million from a CRE-2 investment security which was repaid in full. In the six months ended June 30, 2025, average interest earning deposits on balance sheet of $945.5 million was significantly higher than $202.5 million in six months ended June 30, 2026, driven by one-time volumes from wildfire insurance refunds and higher fintech on-balance sheet volumes.
Interest income from loans was $218.1 million in the six months ended June 30, 2026, $3.1 million lower than $221.2 million in the six months ended June 30, 2025, driven by $7.0 million lower interest earned on non-fintech loans partially offset by $3.9 million higher interest earned on fintech loans. For non-fintech loans, lower interest earned was primarily driven by lower rates, as the average rate decreased to 6.90% for the six months ended June 30, 2026, compared to 7.38% for the six months ended June 30, 2025, while average balance was 3.6% higher. The loan portfolio average rate reflects the impact of Federal Reserve rate decreases which continued in the third and fourth quarters of 2025. For fintech loans, higher interest income of $3.9 million was driven by higher volumes of interest-earning fintech loans. See “Growth of Fintech Lending” discussion above for further information.
Interest Expense
Interest expense for the six months ended June 30, 2026 decreased $11.1 million to $82.6 million from $93.7 million in the six months ended June 30, 2025, driven by $20.7 million lower interest expense on deposits, partially offset by $4.3 million higher interest on short-term borrowings and $5.3 million higher interest expense on senior debt.
Interest expense on deposits was $20.7 million lower due to higher average balance of deposits in 2025 related to wildfire insurance refunds, and lower rates in 2026. Interest expense on short-term borrowings was $4.3 million higher in 2026, as that funding source was utilized to fund higher average loans on balance sheet in the six months ended June 30, 2026, compared to limited utilization in 2025. Interest expense on senior debt was $5.3 million higher, due to higher outstanding principal and higher rate on senior debt. In August 2025, $200 million of 7.375% Senior Notes due 2030 were issued, the proceeds of which were used in part to repay at maturity the $100 million of outstanding 4.75% Senior notes due 2025.
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Average Daily Balances
The following table presents the average daily balances of assets, liabilities and shareholders’ equity and the respective interest earned or paid on interest-earning assets and interest-bearing liabilities, as well as average annualized rates, for the periods indicated:
(Dollars in thousands)Six Months Ended June 30,
20262025Increase (Decrease) due to:
Average BalanceInterestAvg. RateAverage BalanceInterestAvg. RateVolumeRateTotal
Assets:
Interest-earning assets:
Non-fintech loans$6,182,243 $213,232 6.90%$5,969,155 $220,265 7.38 %$7,863 $(14,896)$(7,033)
Fintech loans1,253,763 4,660 0.74%502,087 7250.29 %1,085 2,850 3,935 
Loans, net of deferred loan fees and costs(1)
7,436,006 217,892 5.86%6,471,242 220,990 6.83 %8,948 (12,046)(3,098)
Leases-bank qualified(2)
6,975 298 8.54%6,793 313 9.22 %8 (23)(15)
Investment securities-taxable(3)
1,640,946 39,844 4.86%1,475,892 40,520 5.49 %4,531 (2,190)2,341 
Investment securities-nontaxable(2)
11,543 362 6.27%7,326 236 6.44 %136 (10)126 
Interest-earning deposits 202,480 3,582 3.54%945,453 21,006 4.44 %(16,507)(917)(17,424)
Total interest-earning assets9,297,950 261,978 5.64%8,906,706 283,065 6.36 %(2,884)(15,186)(18,070)
Allowance for credit losses(55,680)(48,700)
Other assets362,748 354,939 
Total assets$9,605,018 $9,212,945 
Liabilities and shareholders' equity:
Demand and interest checking$8,200,639 $66,610 1.62%$8,082,390 $88,447 2.19 %$1,294 $(23,131)$(21,837)
Savings and money market164,954 3,013 3.65%100,966 1,891 3.75 %1,198 (76)1,122 
Total deposits 8,365,593 69,623 1.66%8,183,356 90,338 2.21 %2,492 (23,207)(20,715)
Short-term borrowings224,492 4,330 3.86%220 5 4.55 %5,097 (772)4,325 
Long-term borrowings11,907 344 5.78%14,003 393 5.61 %(59)10 (49)
Subordinated debt13,401 471 7.03%13,401 512 7.64 %— (41)(41)
Senior debt196,297 7,792 7.94%96,289 2,467 5.12 %2,562 2,763 5,325 
Total deposits and liabilities8,811,690 82,560 1.87%8,307,269 93,715 2.26 %10,092 (21,247)(11,155)
Other liabilities95,739 80,651 
Total liabilities 8,907,429 8,387,920 
Shareholders' equity697,589 825,025 
$9,605,018 $9,212,945 
Net interest income on tax equivalent basis(2)
$179,418 $189,350 $(12,976)$6,061 $(6,915)
Tax equivalent adjustment138115
Net interest income$179,280 $189,235 
Net interest margin(2)
3.86%4.25 %
(1)Includes commercial loans, at fair value and non-accrual loans.
(2)Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2026 and 2025.
(3)Interest income in 2025 includes $3.0 million from a security that was known as “CRE-2” and which was related to the Company’s discontinued commercial real estate securitization business. CRE-2 was repaid in full in the second quarter of 2025, resulting in a one-time gain of $3.0 million, which was excluded from change due to rate in the above analysis.
For the six months ended June 30, 2026 compared to six months ended June 30, 2025, average interest-earning assets increased $391.2 million, reflecting a $964.9 million increase in average loans and leases and a $169.3 million increase in average investment securities, partially offset by a decrease in average interest-earning deposits of $743.0 million. For those respective periods, average deposits and liabilities increased $504.4 million, primarily driven by a $224.3 million increase in short-term borrowings and a $100.0 million increase in senior debt.
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Net Interest Margin
Our net interest margin (calculated by dividing net interest income by average interest-earning assets) for the six months ended June 30, 2026 was 3.86% compared to 4.25% for the six months ended June 30, 2025, a decrease of 39 basis points. The average yield on interest-earning assets decreased 72 basis points, due to the shift of our portfolio mix to more fintech loans where we primarily earn fee income as discussed further under “Growth of Fintech Lending” above, plus lower market short-term interest rates. In addition, the cost of deposits and interest-bearing liabilities decreased 39 basis points, or a net change of 33 basis points, driven primarily by a 55 basis point decrease in average rate on deposits primarily due to a lower rate environment in the six months ended June 30, 2026.
Provision for Credit Losses
Our provision for credit losses was $53.7 million for the six months ended June 30, 2026, a decrease of $37.5 million compared to a provision of $91.2 million for the six months ended June 30, 2025. The decrease is primarily attributable to $34.5 million lower provision for fintech loans driven by improved performance of that loan portfolio. The lower fintech loan provision correlates to a lower amount of related non-interest income from a credit enhancement contractually provided by a third party. Accordingly, there was no related net impact from these amounts. See further discussion of this program in “Financial Condition—Allowance for Credit Loss—Fintech Programs” in MD&A.
In addition, the provision for credit losses on non-fintech loans was a release of $1.0 million in the six months ended June 30, 2026 compared to provision expense of $2.4 million in the six months ended June 30, 2025. The provision release in the six months ended June 30, 2026 is primarily driven by improvements in credit quality of the direct lease financing portfolio.
For more information about our provision, allowance and credit loss experience, see “Financial Condition—Portfolio Performance” below and “Note 5. Loans” to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
Non-Interest Income
Non-interest income was $145.6 million in the six months ended June 30, 2026, a decrease of $21.8 million compared to $167.4 million in the six months ended June 30, 2025. The decrease between those respective periods is primarily driven by a $34.5 million decrease in fintech loan credit enhancement income, which was partially offset by $8.9 million in higher total fintech fees and $4.8 million of higher other non-interest income.
Fintech loan credit enhancement income decreased $34.5 million driven by improved performance of fintech loans, which correlates to a like amount for provision for credit losses on fintech loans. See further discussion above under “Provision for Credit Losses.”
Total fintech fees increased $8.9 million, which includes a $2.7 million increase in prepaid, debit card and related fees, or 5.1%, to $54.5 million for the six months ended June 30, 2026, compared to $51.8 million in the six months ended June 30, 2025, driven by higher transaction volume from new clients and organic growth from existing clients. In addition, ACH, card and other payment processing fees increased $1.7 million, or 15.5%, to $12.4 million for the six months ended June 30, 2026, compared to $10.7 million in the six months ended June 30, 2025, reflecting an increase in rapid funds transfer volume. Consumer credit fintech fees increased $4.5 million to $12.1 million for the six months ended June 30, 2026, compared to $7.6 million in the six months ended June 30, 2025, reflecting increased loan volume.
Other non-interest income increased $4.8 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily driven by $2.5 million higher other fee income from loans and $1.6 million of fees earned on deposit sweeps.
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Non-Interest Expense
The following table presents the principal categories of non-interest expense for the periods indicated:
Six months ended June 30, 2026
20262025Increase (Decrease)
(Dollars in thousands)
Salaries and employee benefits$74,903 $70,803 $4,100 
Depreciation 2,475 2,229 246 
Rent and related occupancy cost 3,359 3,285 74 
Data processing expense2,696 2,432 264 
Audit expense 1,139 1,199 (60)
Legal expense 2,811 3,820 (1,009)
Legal settlement (reimbursement)(2,000)— (2,000)
FDIC insurance 2,357 2,255 102 
Software11,001 10,157 844 
Insurance2,251 2,402 (151)
Telecom and IT network communications576 641 (65)
Consulting357 892 (535)
Other 9,577 10,402 (825)
Total non-interest expense$111,502 $110,517 $985 
Total non-interest expense was $111.5 million for the six months ended June 30, 2026, an increase of $1.0 million, or 0.9%, compared to $110.5 million for the six months ended June 30, 2025. The increase reflects $4.1 million higher salaries and benefits expense primarily driven by higher costs from incentive compensation accruals and costs related to organization changes, partially offset by a $2.0 million legal settlement reimbursement from insurance in the first quarter of 2026 related to a legal settlement that was previously expensed in fourth quarter of 2025 and a $1.0 million decrease in legal expense due to higher costs in 2025 for payments related matters and regulatory filings.
Income Taxes
Income tax expense was $38.9 million for the six months ended June 30, 2026 compared to $37.9 million in the six months ended June 30, 2025. Our effective tax rate was 24.4% and 24.5% in the six months ended June 30, 2026 and 2025, respectively, based on a 21% federal tax rate and the impact of various state income taxes.
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Financial Condition
Total Assets
Total assets at June 30, 2026 were $9.22 billion, a $136.4 million decrease from $9.35 billion at December 31, 2025. The change in total assets was primarily driven by a $40.1 million decrease in our total loan portfolio and a $56.9 million decrease in investment securities.
We are managing our balance sheet to remain under $10 billion in assets in order to maintain our exemption from regulated limits on interchange fees, among other benefits, under the Durbin Amendment and the Federal Reserve’s implementing regulations. Our strategy in managing our balance sheet includes balancing our investments in our loan portfolio and investment securities to strategically direct the growth of our business, and sweeping deposits off-balance sheet to other financial institutions, as discussed further in “Financial Condition—Deposits” in MD&A.
Investment Securities
The following table presents a summary of our available-for-sale investment securities, by major category:
June 30,
2026		December 31, 2025
(Dollars in thousands)
U.S. Government agency securities$22,524 $25,109 
Asset-backed securities226,569 234,101 
Tax-exempt obligations of states and political subdivisions14,636 9,636 
Taxable obligations of states and political subdivisions16,671 18,927 
Residential mortgage-backed securities434,913 464,323 
Collateralized mortgage obligation securities51,512 57,580 
Commercial mortgage-backed securities848,065 862,074 
Total Investment securities available for sale, at fair value$1,614,890 $1,671,750 
The following table shows the contractual maturity distribution and the weighted average yield of our investment securities as of June 30, 2026 (dollars in thousands). The weighted average yield was calculated by dividing the amount of individual securities to total securities in each category, multiplying by the yield of the individual security and adding the results of those individual computations.
(Dollars in thousands)Zero to one yearAfter one to five yearsAfter five to ten yearsOver ten years
BalanceAverage yieldBalanceAverage yieldBalanceAverage yieldBalanceAverage yieldTotal balance
U.S. Government agency securities$— — $3,518 2.82%$12,812 4.83%$6,194 3.35%$22,524 
Asset-backed securities1,464 5.33%5,591 5.49%59,273 5.47%160,241 5.31%226,569 
Tax-exempt obligations of states and political subdivisions(1)
1,157 2.30%— — 1,993 3.87%11,486 4.53%14,636 
Taxable obligations of states and political subdivisions10,166 3.72%4,364 3.45%— — 2,141 6.00%16,671 
Residential mortgage-backed securities3 2.40%— — 1,962 4.90%432,948 4.98%434,913 
Collateralized mortgage obligation securities21 2.06%— — 3 3.07%51,488 4.15%51,512 
Commercial mortgage-backed securities9,482 2.39%291,164 4.38%420,824 4.70%126,595 4.00%848,065 
Total$22,293 $304,637 $496,867 $791,093 $1,614,890 
Weighted average yield3.19%4.36%4.79%4.82%
(1)If adjusted to their taxable equivalents, yields would approximate 2.91%, 4.90%, and 5.73% for zero to one year, five to ten years, and over ten years, respectively, at a federal tax rate of 21%.
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Total Loan Portfolio
The following table summarizes our loan portfolio, by loan category (dollars in thousands):
June 30
2026		December 31
2025
Loans recorded at amortized cost:
Small business loans (SBL) non-real estate $255,424 $235,282 
SBL commercial mortgage757,154 749,234 
SBL construction 21,686 22,382 
SBLs1,034,264 1,006,898 
Direct lease financing 670,902 685,422 
SBLOC / IBLOC(1)
1,825,301 1,669,985 
Advisor financing240,049 294,236 
Real estate bridge lending (REBL)2,233,688 2,188,952 
Fintech901,502 1,097,998 
Other loans(2)
152,604 157,416 
7,058,310 7,100,907 
Unamortized loan fees and costs15,596 15,769 
Total loans, net of deferred loan fees and costs$7,073,906 $7,116,676 
Commercial loans, at fair value:
SBLs, at fair value$60,617 $68,374 
REBL, at fair value53,545 71,015 
Total commercial loans, at fair value $114,162 $139,389 
Total loan portfolio$7,188,068 $7,256,065 
(1)Includes Securities-backed lines of credit (SBLOC) and Insurance policy cash value-backed lines of credit (IBLOC).
(2) As of June 30, 2026 and December 31, 2025, Other loans includes $110.0 million and $110.7 million, respectively, related to warehouse financing of REBL loan sales to third-party purchasers.
The majority of our loan portfolio is recorded at amortized cost and recognized net of an allowance for credit loss. Loans, net of deferred loan fees and costs decreased to $7.07 billion at June 30, 2026 from $7.12 billion at December 31, 2025. This $42.8 million decrease is primarily driven by a decrease in fintech loans of $196.5 million, partially offset by a $155.3 million increase in SBLOC/IBLOC. The decline in fintech loans was primarily attributable to a change in payment processing, which impacted period-end balances and did not reflect a change in underlying customer activity.

Commercial loans, at fair value are comprised of non-SBA commercial real estate loans and SBA loans which had been originated for sale or securitization through the first quarter of 2020, and which are now being held for investment on the balance sheet. These loans continue to be recognized at fair value, and this portfolio declined $25.2 million from December 31, 2025, as this portfolio continues to runoff. All originations are now being recognized at amortized cost.
The underlying nature of the collateral for our loan portfolio includes:
•SBL non-real estate are collateralized by business assets, which may include certain real estate;
•SBL commercial mortgage and construction are collateralized by real estate for small businesses;
•SBLOC are collateralized by marketable investment securities while IBLOC are collateralized by the cash value of life insurance;
•Advisor financing are collateralized by investment advisors’ business franchises;
•REBL are primarily collateralized by apartment buildings, or other commercial real estate; and
•Direct lease financing are collateralized primarily by vehicles or equipment.
Fintech loans include secured credit card accounts of $336.3 million and $729.1 million as of June 30, 2026 and December 31, 2025, respectively, which are backed dollar-for-dollar by cash collateral by each individual cardholder that are recognized as deposits on our Condensed Consolidated Balance Sheets, and these loans are required to be repaid in full monthly. The remaining fintech loans consist of cashflow underwritten short-term liquidity products to individual
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borrowers ranging in maturity from 30 to 365 days. All fintech loans are covered by credit enhancement agreements, as discussed further below under “Fintech Programs.”
The following table summarizes the concentration by state of our real estate bridge loans (dollars in thousands):
As of June 30, 2026
BalanceOrigination date LTV
REBL concentration by state:
Texas$600,157 72%
Georgia346,616 72%
Florida276,253 67%
Missouri108,056 74%
Michigan98,090 64%
Ohio95,889 71%
Other States each <$90 million708,627 70%
Total$2,233,688 
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Portfolio Estimated Maturities
The following table presents loan categories by maturity for the period indicated. Actual repayments historically have, and will likely in the future, differ significantly from contractual maturities because individual borrowers generally have the right to prepay loans, with or without prepayment penalties. See “Asset and Liability Management” in this MD&A for a discussion of interest rate risk.
June 30, 2026
Within one year One to five years After five but within 15 years After 15 years Total
(Dollars in thousands)
Loans, net of deferred loan fees and costs:
SBL non-real estate$336 $13,433 $241,655 $— $255,424 
SBL commercial mortgage12,402 39,638 262,402 442,712 757,154 
SBL construction 1,290 — 7,133 13,263 21,686 
Direct lease financing123,051 528,362 19,489 — 670,902 
SBLOC / IBLOC1,825,301 — — — 1,825,301 
Advisor financing3,347 118,042 118,660 — 240,049 
Real estate bridge lending887,269 1,346,419 — — 2,233,688 
Fintech901,502 — — — 901,502 
Other loans83,217 48,682 11,820 8,885 152,604 
Commercial loans, at fair value12,757 54,866 12,763 33,776 114,162 
Total $3,850,472 $2,149,442 $673,922 $498,636 $7,172,472 
Unamortized loan fees and costs15,596 
Total loan portfolio$7,188,068 
Loan maturities after one year with:
Fixed rates
SBL non-real estate$967 $— $— $967 
SBL commercial mortgage7,467 2,417 — 9,884 
Direct lease financing507,398 16,569 — 523,967 
Advisor financing117,564 117,804 — 235,368 
Real estate bridge lending1,076,711 — — 1,076,711 
Other loans3,132 5,298 6,089 14,519 
Commercial loans, at fair value42,409 — — 42,409 
Total loans with fixed rates$1,755,648 $142,088 $6,089 $1,903,825 
Variable rates
SBL non-real estate$12,466 $241,655 $— $254,121 
SBL commercial mortgage32,171 259,985 442,712 734,868 
SBL construction — 7,133 13,263 20,396 
Direct lease financing20,964 2,920 — 23,884 
Advisor financing478 856 — 1,334 
Real estate bridge lending269,708 — — 269,708 
Other loans45,550 6,522 2,796 54,868 
Commercial loans, at fair value12,457 12,763 33,776 58,996 
Total with variable rates$393,794 $531,834 $492,547 $1,418,175 
Total maturities after one year$2,149,442 $673,922 $498,636 $3,322,000 
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Portfolio Performance
Loans are considered to be non-performing if they are on a non-accrual basis or are past due 90 days or more and still accruing interest. A loan which is past due 90 days or more and still accruing interest remains on accrual status only when it is both adequately secured as to principal and interest and is in the process of collection.
The following table summarizes our non-performing assets, with discussion of significant changes between periods to follow (dollars in thousands):
June 30,
2026		December 31,
2025
(Dollars in thousands)
Non-accrual loans:
SBL non-real estate $10,756 $8,639 
SBL commercial mortgage26,868 21,977 
SBL construction2,660 2,660 
Direct lease financing9,120 12,066 
SBLOC/IBLOC— 446 
Real estate bridge lending22,454 9,755 
Other loans390 142 
Total non-accrual loans72,248 55,685 
Loans past due 90 days or more and still accruing2,305 18,199 
Total non-performing loans74,553 73,884 
Other real estate owned (OREO)62,011 60,695 
Total non-performing assets$136,564 $134,579 
Non-accrual loans increased $16.6 million, primarily driven by a $12.7 million increase in REBL loans and $4.9 million increase in SBL commercial mortgage.
Loans past due 90 days or more still accruing interest amounted to $2.3 million at June 30, 2026 and $18.2 million at December 31, 2025. The $15.9 million decrease is primarily driven by a $14.5 million REBL loan that left 90 days or more past due status after we entered into a loan agreement with a new borrower with greater financial capacity.
We evaluate loans under an internal loan risk rating system as a means of identifying problem loans. At June 30, 2026, there were $146.7 million of loans classified as special mention and substandard in total, a decrease of $47.8 million, or 24.6%, from $194.5 million at December 31, 2025. The decrease is primarily driven by a $37.3 million decrease in criticized Real estate bridge loans.
See “Note 5. Loans” to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for further information on classified loans.
Asset Quality Ratios
The following tables summarize select asset quality ratios for the periods indicated:
As of
June 30, 2026December 31, 2025
TotalFintechNon-fintechTotalFintechNon-fintech
ACL to loans 0.90%3.41%0.53%0.93%2.84%0.58%
Non-performing loan ratios:
ACL to non-performing loans85.2%
n/m(1)
45.0%89.6%
n/m(1)
48.8%
Non-performing loans to total loans(2)
1.05%0.20%1.18%1.04%0.18%1.19%
Non-performing assets to total assets(1)
1.48%1.44%
___________________
(1)ACL to non-performing loan ratio for Fintech is not meaningful primarily due to the short duration of those loans.
(2)Includes loans 90 days past due still accruing interest.
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Six Months Ended June 30,
20262025
TotalFintechNon-fintechTotalFintechNon-fintech
Net charge-offs to average loans (annualized)1.54%8.78%0.04%2.45%29.89%0.07%
Allowance for Credit Losses (“ACL”) to total loans decreased slightly to 0.90% at June 30, 2026 compared to 0.93% at December 31, 2025. The fintech ACL to Loans ratio increased to 3.41% as of June 30, 2026 from 2.84% at December 31, 2025 as the ACL did not decrease proportional to the decrease in this population.
Non-performing loan ratios are also calculated showing fintech and non-fintech separately, as fintech has a relatively small contribution to the non-performing loan population due to the short-term nature of those receivables, the majority of are charged off before they reach 90 days past due. However, the fintech loan receivable portfolio growth does have an impact on the denominator of those ratios in total.
ACL to non-performing loans—Total decreased to 85.2% at June 30, 2026 from 89.6% at December 31, 2025, and for non-fintech, the ratios are 45.0% and 48.8% for the respective periods. Non-performing loans are subject to specific review when preparing our allowance for credit losses estimate. We assess the collectability of the receivables, the nature of the non-performance status, the loan to collateral value, and other factors, when determining whether a specific reserve is required. The ACL as of June 30, 2026 declined as the 4% decrease in the ACL was greater than the 1% increase in non-performing loans.
Non-performing loans to total loans increased to 1.05% at June 30, 2026, from 1.04% at December 31, 2025.
Non-performing assets to total assets ratio increased to 1.48% at June 30, 2026 from 1.44% at December 31, 2025.
See further discussion of the non-performing loan population directly above under “Portfolio Performance.”
Net charge-offs to average loans was 1.51% for the six months ended June 30, 2026 compared to 2.38% for the six months ended June 30, 2025.
Fintech net charge-offs to average loans of 8.78% for the six months ended June 30, 2026 was an improvement from 29.89% for the six months ended June 30, 2025, driven by improved performance of unsecured loans. Any net charge-offs on fintech loans are covered by credit enhancement agreements, through which a partner of the Fintech business covers incurred losses on such fintech loans. The measurement of the ACL for fintech loans and the related credit enhancement are based on the same estimate and are equal and correlate to like amounts in our income statement. See “Total Loan Portfolio—Fintech Programs” for further discussion of the credit enhancement.
Excluding fintech loans, net charge-offs to average loans was 0.04% for the six months ended June 30, 2026 and 0.06% for the six months ended June 30, 2025. The decline is primarily driven by improved performance of the direct lease financing portfolio.
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Non-Accrual and 90+ Days Past Due Loans
The following tables summarize non-accrual loans and loans past due 90 days or more still accruing interest, by year of origination:
As of June 30, 2026
20262025202420232022PriorRevolvingTotal
90+ Days past due$— $— $— $— $— $— $— $— 
Non-accrual— — 746 4,522 4,543 945 10,756 
Total SBL non-real estate— — 746 4,522 4,543 945 — 10,756 
90+ Days past due— — — — — — — — 
Non-accrual— — 697 10,600 7,596 7,975 26,868 
Total SBL commercial mortgage— — 697 10,600 7,596 7,975 — 26,868 
90+ Days past due— — — — — — — — 
Non-accrual— — — — — 2,660 — 2,660 
Total SBL construction— — — — — 2,660 — 2,660 
90+ Days past due248 — 50 152 50 6 — 506 
Non-accrual— — 1,020 5,157 2,396 547 — 9,120 
Total direct lease financing248 — 1,070 5,309 2,446 553 — 9,626 
90+ Days past due— — — — — — — — 
Non-accrual— — — — — — — — 
Total IBLOC— — — — — — — — 
90+ Days past due— — — — — — — — 
Non-accrual— — — — 12,700 9,754 — 22,454 
Total real estate bridge lending— — — — 12,700 9,754 — 22,454 
90+ Days past due1,313 485 — — — — — 1,798 
Non-accrual— — — — — — — — 
Total fintech loans1,313 485 — — — — — 1,798 
90+ Days past due— — — — — 1 — 1 
Non-accrual— — — — — 390 — 390 
Total other loans— — — — — 391 — 391 
Total 90+ Days past due$1,561 $485 $50 $152 $50 $7 $— $2,305 
Total Non-accrual$— $— $2,463 $20,279 $27,235 $22,271 $— $72,248 
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As of December 31, 2025
20252024202320222021PriorRevolvingTotal
90+ Days past due$— $— $— $— $— $— $— $— 
Non-accrual— 405 3,109 2,705 1,360 1,060 — 8,639 
Total SBL non-real estate— 405 3,109 2,705 1,360 1,060 — 8,639 
90+ Days past due— — — — — — — — 
Non-accrual— 706 5,318 7,596 6,049 2,308 — 21,977 
Total SBL commercial mortgage— 706 5,318 7,596 6,049 2,308 — 21,977 
90+ Days past due— — — — — — — — 
Non-accrual— — — — 1,950 710 — 2,660 
Total SBL construction— — — — 1,950 710 — 2,660 
90+ Days past due120 — 92 98 — 1,147 — 1,457 
Non-accrual— 1,696 6,302 3,254 787 27 — 12,066 
Total direct lease financing120 1,696 6,394 3,352 787 1,174 — 13,523 
90+ Days past due— — — — — — 251 251 
Non-accrual— — — — — — 446 446 
Total IBLOC— — — — — — 697 697 
90+ Days past due— — — — 14,459 — — 14,459 
Non-accrual— — — — 9,755 — — 9,755 
Total real estate bridge lending— — — — 24,214 — — 24,214 
90+ Days past due2,030 — — — — — — 2,030 
Non-accrual— — — — — — — — 
Total fintech loans2,030 — — — — — — 2,030 
90+ Days past due— — — — — 2 — 2 
Non-accrual— — — — — 142 — 142 
Total other loans— — — — — 144 — 144 
Total 90+ Days past due$2,150 $— $92 $98 $14,459 $1,149 $251 $18,199 
Total Non-accrual$— $2,807 $14,729 $13,555 $19,901 $4,247 $446 $55,685 
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Allowance for Credit Losses
We review the adequacy of our ACL on at least a quarterly basis to determine a provision for credit losses to maintain our ACL at a level we believe is appropriate to recognize current expected credit losses. A summary of loans recorded at amortized cost and the allowance follows (dollars in thousands):
June 30, 2026December 31, 2025
Allowance for
credit loss		Loans, net of
deferred loan
fees and costs		% of
total loans		Allowance for
credit loss		Loans, net of
deferred loan
fees and costs		% of
total loans
SBL non-real estate $7,238 $255,424 3.62%$6,337 $235,282 3.31%
SBL commercial mortgage3,445 757,154 10.73%3,118 749,234 10.55%
SBL construction 210 21,686 0.30%235 22,382 0.32%
Total SBLs10,893 1,034,264 14.65%9,690 1,006,898 14.18%
Direct lease financing12,216 670,902 9.51%15,675 685,422 9.65%
SBLOC / IBLOC913 1,825,301 25.86%1,041 1,669,985 23.52%
Advisor financing1,800 240,049 3.40%2,207 294,236 4.14%
Real estate bridge lending6,485 2,233,688 31.65%5,949 2,188,952 30.83%
Fintech30,733 901,502 12.77%31,137 1,097,998 15.46%
Other loans 455 152,604 2.16%501 157,416 2.22%
Total loans$63,495 $7,058,310 100.00%$66,200 $7,100,907 100.00%
Deferred costs— 15,596 — 15,769 
Total loans, net of deferred costs$63,495 $7,073,906 $66,200 $7,116,676 
The ACL decreased $2.7 million from December 31, 2025, primarily driven by a $3.5 million decrease in reserves on direct lease financing, driven by improved credit performance on the underlying loan portfolio segment.
Fintech Programs
Our fintech programs include consumer transaction accounts and fintech loans.
Consumer transaction accounts consist primarily of Bank-issued stored value prepaid or debit cards. For this program, we recognize a deposit liability for the current balance of the cards and recognize fee-based revenue in Non-interest income—Prepaid, debit card and related fees; we do not have any receivables or allowance risk related to the payment programs.
Fintech loans consist of short-term loans originated by our Bank, with the marketing and servicing assistance of third-party relationships. Loans receivable originated under these fintech agreements are governed by an agreement with the borrower and may include: secured credit cards and unsecured short-term extensions of credit. For the secured credit card program, we recognize a loan receivable and a deposit liability for the cash collateral that secures those accounts. Unsecured fintech loans include payroll advance and other short term-extensions of credit; those accounts are typically repaid within a year of origination.
As of June 30, 2026, and December 31, 2025, all fintech loans, both secured and unsecured, are covered by credit enhancement agreements. The third-party agreements governing the fintech loans include provisions for credit enhancements, through which the third party guarantees losses on such fintech loans (either in whole or in part). When a fintech loan meets a defined delinquency level, we recognize a charge-off of the receivable, and the incurred losses are covered by the third party. Any subsequent recoveries from the charged-off loan are credited to the third party.
The third-party relationship agreements governing fintech loans include requirements for pledging cash reserve accounts at the Bank as collateral for loss exposure, through which we can collect when losses occur. The reserve accounts are then replenished by the counterparties based on contractually required thresholds. In addition to the reserve accounts, the agreements also provide for the right to offset any cashflows we owe to the third parties (such as for monthly revenues) against any net realized loan losses. While we continually monitor the risk of these counterparties, establish the reserve thresholds at levels we consider appropriate to cover loss exposure on these short-term loan receivables, and we have additional protection from our rights to net realized loan losses against cashflows owed to the third party, if the third party defaults under their agreement and/or is unable to fulfill their contractual obligations to replenish the reserve account and cover losses, we may be exposed to loan losses in excess of our net reserve position.
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The loan receivable agreement with the borrower and the third-party credit enhancement agreements are required to be accounted for separately as freestanding contracts in accordance with U.S. GAAP. As such, we recognize the separate units of account as follows:
Fintech loans receivable from the borrower are recognized on the Balance sheet, along with an estimate of credit loss for fintech loans through the allowance. Provision for credit losses on fintech loans is recognized on the Statement of Operations.
A credit enhancement asset is recognized on the Balance Sheet for the estimated recovery under the third-party credit enhancement agreement, and the Company recognizes non-interest income—fintech loan credit enhancement on the Statement of Operations. In addition, deposit liability on our Balance Sheets includes amounts for reserve account collateral held to fund losses under the credit enhancement agreements.
The measurement of the estimated credit losses and the expected recovery from the credit enhancement are based on the same estimate and correlate to like amounts in our financial statements. We recognized credit enhancement assets of $30.7 million and $31.1 million on the Balance Sheets as of June 30, 2026, and December 31, 2025, respectively.
Net Charge-offs
The following tables present a ratio of net charge-offs to average loans outstanding, for each loan category. Average loans excludes commercial loans, at fair value. (dollars in thousands)
Six months ended June 30, 2026Six months ended June 30, 2025
Net charge-offs (recovery)Average loan balanceRatioNet
charge-offs		Average loan balanceRatio
SBL non-real estate $97 $241,612 0.04%$110 $197,205 0.06%
SBL commercial mortgage486 741,100 0.07%— 692,923 —%
SBL construction — 19,861 —%— 32,695 —%
Direct lease financing789 678,412 0.12%1,091 699,320 0.16%
SBLOC / IBLOC446 1,721,861 0.03%— 1,582,712 —%
Advisor financing— 274,102 —%— 273,026 —%
Real estate bridge lending— 2,214,969 —%— 2,124,540 —%
Fintech55,013 1,253,763 4.39%75,028 567,422 13.22%
Other loans (500)155,524 (0.32%)700 140,637 0.50%
Total$56,331 $7,301,204 0.77%$76,929 $6,310,480 1.22%
Net charge-offs were $56.3 million for the six months ended June 30, 2026, a decrease of $20.6 million from net charge-offs of $76.9 million during the six months ended June 30, 2025.
For fintech, in the six months ended June 30, 2026, $55.0 million of net charge-offs were recognized, or an 8.78% ratio to average loans (annualized), compared to $75.0 million, and 29.89% for the prior year period. The improved fintech charge-off levels reflect better credit performance of the unsecured fintech loans.

Excluding fintech, net charge-offs on the remaining portfolio were $1.3 million for the six months ended June 30, 2026 and $1.9 million for the six months ended June 30, 2025.
Deposits
Our primary source of funding is deposit acquisition. At June 30, 2026, we had total deposits of $7.48 billion compared to $8.17 billion at December 31, 2025, which reflected a decrease of $689.3 million, or 8.4%. Due to the nature of our deposit products, daily deposit balances are subject to variability, and deposits averaged $8.41 billion in the second quarter of 2026. As of June 30, 2026, 94% of the deposits are insured, 3% are low balance accounts (such as anonymous gift cards and corporate incentive cards for which there is no identified depositor) and 3% are other uninsured deposits.
Demand and interest checking is $7.35 billion of total deposits as of June 30, 2026, and primarily consists of balances from prepaid, debit and other payment card accounts that the Bank issues to fund payments for salary, medical spending, commercial, general purpose reloadable, corporate and other incentive, gift, government payments and transaction accounts. These accounts have an established history of stability and lower cost than certain other types of funding. Deposits also include payment processing balances, funds received as collateral supporting the secured credit card program of our Fintech segment, and small population of traditional deposits.
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Savings and money market is $123.1 million of total deposits as of June 30, 2026.
We do not have a traditional branch system. Our deposit accounts are comprised primarily of millions of small transaction-based consumer balances which are obtained through and with the assistance of our partners. We have long-term contractual relationships with the partners of our Fintech business which sponsor such accounts as discussed further in Item 1. “Business—Our Strategies” in our 2025 Form 10-K.
Of our $7.48 billion total deposits at June 30, 2026, the top three affinity groups accounted for approximately $4.72 billion, the next three largest $1.36 billion, and the four subsequent largest $755 million. The top ten partner relationships at June 30, 2026 consisted of $3.70 billion related to payroll, debit, and government-based accounts such as child support, and $3.13 billion related to consumer and business payment companies, including companies sponsoring incentive and gift card payments.
Of our $8.17 billion total deposits at year-end 2025, the top three affinity groups accounted for approximately $3.83 billion, the next three largest $1.35 billion, and the four subsequent largest $812 million. The top ten partner relationships at year end 2025 consisted of $3.20 billion related to payroll, debit, and government-based accounts such as child support, and $2.80 billion related to consumer and business payment companies, including companies sponsoring incentive and gift card payments.
In addition, we sweep deposits off our balance sheet to other institutions as part of our funding strategies, which totaled $1.12 billion and $849.9 million as of June 30, 2026 and December 31, 2025, respectively. Such sweeps are utilized to manage our balance sheet composition and deposit portfolio diversity.
The following table presents the average balance and rates paid on deposits for the periods indicated (dollars in thousands):
Six months ended June 30,
20262025
Average
balance		Average
rate		Average
balance		Average
rate
Demand and interest checking$8,200,639 1.62%$8,082,390 2.19%
Savings and money market 164,954 3.65%100,966 3.75%
Total deposits$8,365,593 1.66%$8,183,356 2.21%
Of the demand and interest checking balance shown above, $132.9 million and $138.7 million for 2026 and 2025, respectively, represented balances on which we paid interest. The remaining balance for each period reflects amounts subject to fees paid to third parties, which are based upon a contractual percentage applied to a rate index, generally the effective federal funds rate, and therefore classified as interest expense.
Short-term Borrowings
Short-term borrowings consist of amounts borrowed on our lines of credit with the Federal Reserve Bank or FHLB. There were $744.0 million and $199.0 million of borrowings with FHLB at June 30, 2026 and December 31, 2025, respectively. Our use of short-term borrowings fluctuates based on our current funding needs for loans. We generally utilize overnight borrowings to manage our daily reserve requirements at the Federal Reserve.
The following table summarizes short-term borrowings (dollars in thousands):
Six months ended June 30,
20262025
Short-term borrowings
Balance at period end$744,000 $— 
Average balance year-to-date224,492 220 
Maximum month-end balance885,000 — 
Weighted average rate year-to-date3.86 %4.55 %
Rate at period end3.94%—
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Liquidity and Capital Resources
Liquidity defines our ability to generate funds at a reasonable cost to support asset growth, meet deposit withdrawals, satisfy borrowing needs and otherwise operate on an ongoing basis. Maintaining an adequate level of liquidity depends on the institution’s ability to efficiently meet both expected and unexpected cash flows without adversely affecting daily operations or financial condition. The Company’s liquidity management policy requirements include sustaining defined liquidity minimums, concentration monitoring and management, stress testing, contingency planning and related oversight. Based on our sources of funding and liquidity discussed below, we believe we have sufficient liquidity and capital resources available for our needs in the next 12 months and for the foreseeable future. We invest the funds we do not need for daily operations primarily in our interest-bearing account at the Federal Reserve. We actively monitor our positions and contingent funding sources daily.
Deposits. Our primary source of funding has been consumer deposits generated through partner relationships. Average total deposits increased by $357.2 million, or 4.4%, to $8.41 billion for the second quarter of 2026 compared to the second quarter of 2025. While we do not have a traditional branch system, we believe that our core deposits, which include our demand, interest checking, savings and money market accounts, have similar characteristics to those of a bank with a branch system, but are tied to long-term partner contracts. Certain components of our deposits experience seasonality, creating greater excess liquidity at certain times. The largest deposit inflows occur in the first quarter of the year when certain of our accounts are credited with tax refund payments from the U.S. Treasury.
As of June 30, 2026, 94% of the deposits are insured, 3% are low balance accounts (such as anonymous gift cards and corporate incentive cards for which there is no identified depositor) and 3% are other uninsured deposits. We do not believe that such uninsured accounts present a significant liquidity risk.
In addition, we sweep deposits off our balance sheet to other institutions as part of our funding strategies, which totaled $1.12 billion and $849.9 million as of June 30, 2026 and December 31, 2025, respectively. Such sweeps are utilized to optimize diversity within our funding structure by managing the percentage of individual client deposits to total deposits. Deposit sweeps represent an amount of deposits that are greater than our current needs to fund our assets. The swept deposits serve as a source of contingent liquidity, as we may move a portion of those deposits back on balance sheet, at our election.
Other Funding Sources. While consumer deposit accounts, including prepaid and debit card accounts, comprise the vast majority of our funding sources, we maintain secured borrowing lines with the FHLB and the Federal Reserve that are collateralized by pledged loans and investment securities. As of June 30, 2026, we had $744.0 million borrowed under these facilities, and based on the current amount of loans and securities pledged there is $3.79 billion of additional available capacity which we can access anytime, which is an increase from $199.0 million borrowed and $3.19 billion available capacity based on assets pledged as of December 31, 2025. We expect to continue to maintain our facilities with the FHLB and Federal Reserve.
Loans. We utilize the deposits that are primarily generated by our Fintech business to fund our credit solutions business and the sponsored lending loans of fintech. Historically, growth in deposits has funded growth of loans. Average loans and leases grew to $7.63 billion in the second quarter of 2026 from $6.57 billion in the second quarter of 2025, an increase of $1.06 billion representing a use of funds.
Investment Securities. One source of contingent liquidity is available-for-sale securities, which amounted to $1.61 billion at June 30, 2026, compared to $1.67 billion at December 31, 2025. In the second quarter of 2026, $9.1 million of securities purchased were exceeded by $49.1 million of securities cash inflows.
Cash. At June 30, 2026, our interest-earning deposits within cash and cash equivalents were $70.6 million, and primarily consisted of deposits with the Federal Reserve. Interest-earning deposit average balances decreased to $155.5 million in the second quarter of 2026 from $756.6 million in the second quarter of 2025.
Funding Commitments and Uses. As a holding company conducting substantially all our business through our subsidiaries, our near-term need for liquidity consists principally of cash for required interest payments on debt, which
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includes semi-annual interest payments on the 2030 Senior Notes of $7.4 million, and quarterly interest payments on the subordinated debentures of $300,000, and cash required to fund operating costs.
We had outstanding commitments to fund loans, including unused lines of credit, of $2.49 billion as of June 30, 2026. The majority of our commitments are variable rate and originate with SBLOC. The amount of such commitments represents amounts unfunded under existing loan agreements, where there is capacity for the customer to borrow additional amounts as long as there is no violation of any condition of the contract. The funding requirements for such commitments occur on a measured basis over time and would be funded by normal deposit growth.
As of June 30, 2026, we had cash reserves of $11.6 million at the holding company. Stock repurchases along with interest payments on our debt instruments have historically been funded by dividends from the Bank, as have interest payments on the above debt instruments. Stock repurchases may be terminated at any time. The holding company’s sources of liquidity are primarily comprised of dividends paid by the Bank to the Company, and the issuance of debt.
Capital Resources and Requirements. We must comply with capital adequacy guidelines issued by our regulators. The following table sets forth our regulatory capital ratios and the required levels to be considered a "well capitalized" institution as of June 30, 2026:
Tier 1 capital
to average
assets ratio		Tier 1 capital
to risk-weighted
assets ratio		Total capital
to risk-weighted
assets ratio		Common equity
Tier 1 to risk
weighted assets
As of June 30, 2026
The Bancorp, Inc.7.26%11.41%12.45%11.41%
The Bancorp Bank, National Association9.09%14.27%15.32%14.27%
"Well capitalized" institution (under federal regulations-Basel III)5.00%8.00%10.00%6.50%
At June 30, 2026, the Bank was “well capitalized” under banking regulations.
Asset and Liability Management
Our principal market exposure is to interest rate risk, specifically changes in the Federal Reserve overnight federal funds rate, due to their impact on our net interest income and the market value of our interest-earning assets.
We assess our interest rate risk using both: (i) a Gap Analysis that outlines the estimated timing of when interest-bearing assets and liabilities mature, repay or reprice; and (ii) a Sensitivity Analysis that measures the potential impact on our net portfolio value based on hypothetical changes in interest rates.
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Gap Analysis
The following table sets forth the amounts of interest-earning assets and interest-bearing liabilities that were outstanding at June 30, 2026 and the portions of each financial instrument that are anticipated, based upon certain assumptions, to mature or reset in each future period:
1-9091-3641-33-5Over 5
DaysDaysYearsYearsYears
(Dollars in thousands)
Interest-earning assets:
Commercial loans, at fair value$55,504 $3,734 $52,983 $1,543 $398 
Loans, net of deferred loan fees and costs3,812,761 713,069 1,628,251 760,617 159,208 
Investment securities276,785 35,146 171,768 308,291 822,900 
Interest-earning deposits70,556 — — — — 
Total interest-earning assets4,215,606 751,949 1,853,002 1,070,451 982,506 
Interest-bearing liabilities:
Deposits: Transaction accounts, as adjusted3,676,576 — — — — 
Deposits: Savings and money market123,051 — — — — 
Short-term borrowings744,000 — — — — 
Senior debt and subordinated debentures13,401 — — 196,528 — 
Total interest-bearing liabilities4,557,028 — — 196,528 — 
Gap$(341,422)$751,949 $1,853,002 $873,923 $982,506 
Cumulative gap$(341,422)$410,527 $2,263,529 $3,137,452 $4,119,958 
Gap to assets ratio(4)%8 %21 %9 %11 %
Cumulative gap to assets ratio(4)%4 %25 %34 %45 %
The above table provides an approximation of the projected repricing of assets and liabilities at period end on the basis of contractual terms, except for adjustments as noted:
•Loans at fair value and Loans, net – We do not assume any prepayment of fixed-rate loans.
•Investment securities – Prepayment adjustments are made for mortgage and asset backed securities based on historical data and current market trends.
•Deposits – Transaction accounts are comprised primarily of demand deposits. The majority of transaction and savings balances are assumed to be “core” deposits, or deposits that will generally remain with us regardless of market interest rates. We estimate the repricing characteristics of these deposits based on historical performance, past experience, judgmental predictions and other deposit behavior assumptions. However, we may choose not to reprice liabilities proportionally to changes in market interest rates for competitive or other reasons.
Additionally, while demand deposits are non-interest-bearing, related fees paid to affinity groups may reprice according to specified indices, and as such those fees are included in interest expense. We have adjusted the transaction account balances downward to better reflect the impact of their partial adjustment to changes in rates.
Although a gap analysis is a useful measurement device available to management in determining the existence of interest rate exposure, its static focus as of a particular date makes it necessary to utilize other techniques in measuring exposure to changes in interest rates. For example, gap analysis is limited in its ability to predict trends in future earnings and makes no assumptions about changes in prepayment tendencies, deposit or loan maturity preferences or repricing time lags that may occur in response to a change in the interest rate environment.
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Interest Rate Sensitivity Analysis
The following table shows impact of hypothetical instantaneous parallel shifts in the yield curve on our net portfolio value and annual net interest income:
(Dollars in thousands)Net portfolio value at Net interest income
June 30, 2026June 30, 2026
Rate scenario Amount Percent
Change		Amount Percent
Change
+200 basis points $1,649,135 (1.75)%$363,582 (3.82)%
+100 basis points 1,663,244 (0.91)%370,792 (1.91)%
Flat rate 1,678,496 —378,021 —
-100 basis points 1,684,368 0.35%385,294 1.92%
-200 basis points1,674,459 (0.24)%390,367 3.27%
These sensitivities are hypothetical and are presented for illustrative purposes only. Changes in fair value and the impact on our net interest income generally cannot be extrapolated because the relationship of the change in fair value may not be linear. Actual interest rate sensitivity could vary substantially from the above analysis if different assumptions are used or actual experience differs from presumed behavior of various deposit and loan categories.

Item 3. Quantitative and Qualitative Disclosures About Market Risk
Information about market risk for the quarter ended June 30, 2026 is included in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Asset and Liability Management” of this Quarterly Report on Form 10-Q. Except for such information, there has been no material change to our assessment of our sensitivity to market risk as discussed our Annual Report on Form 10-K for the year ended December, 31, 2025.

Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer (our principal financial officer), as appropriate, to allow timely decisions regarding required disclosure. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.
Under the supervision of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at a reasonable level of assurance as of June 30, 2026.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings
For a discussion of our material pending legal proceedings, see “Note 10. Commitments and Contingencies” to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Item 1A. Risk Factors
There have been no material changes or additions to the risk factors disclosed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December, 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Stock Repurchases
The following table sets forth information regarding the Company’s repurchases of its common stock during the quarter ended June 30, 2026:
PeriodTotal number of shares purchased Average price paid per share
Total number of shares purchased as part of publicly announced plans or programs(1)
Approximate dollar value of shares that may yet be purchased under the plans or programs(2)
(Dollars in thousands, except per share data)
April 1, 2026 - April 30, 2026261,106$59.00 261,106$134,594 
May 1, 2026 - May 31, 2026286,000$56.02 286,000$118,572 
June 1, 2026 - June 30, 2026323,023$57.49 323,023$100,000 
Total870,129$57.46 870,129$100,000 
(1)On July 7, 2025, our Board of Directors approved a common stock repurchase program for the 2026 fiscal year (the “2026 Common Stock Repurchase Program”). Under the 2026 Common Stock Repurchase Program, the Company was authorized to repurchase up to $200.0 million of repurchases depending on the share price, securities laws and stock exchange rules which regulate such repurchases, and repurchased shares may have been reissued for various corporate purposes.
(2)The Company may repurchase shares through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 under the Exchange Act. The share repurchase program may be suspended, amended or discontinued at any time. The 2026 authorization had an expiration date of December 31, 2026.

Item 3. Default Upon Senior Securities
None.

Item 4. Mine Safety Disclosures
Not applicable.

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Item 5. Other Information
During the quarter ended June 30, 2026, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Item 408 of Regulation S-K.

Item 6. Exhibits
Exhibit No.Description
31.1
Rule 13a-14(a)/15d-14(a) Certifications*
31.2
Rule 13a-14(a)/15d-14(a) Certifications*
32.1
Section 1350 Certifications**
32.2
Section 1350 Certifications**
101.INSInline XBRL Instance Document***
101.SCHInline XBRL Taxonomy Extension Schema Document*
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document*
101.LABInline XBRL Taxonomy Extension Label Linkbase Document*
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document*
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*
*Filed herewith.
**Furnished herewith.
***The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
THE BANCORP, INC.
(Registrant)
August 6, 2026
/S/ DAMIAN KOZLOWSKI
DateDamian Kozlowski
Chief Executive Officer
(principal executive officer)
August 6, 2026
/S/ DOMINIC C. CANUSO
DateDominic C. Canuso
Chief Financial Officer
(principal financial and accounting officer)
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