Overview

* The Bancorp Q3 net income rises 7% yr/yr, EPS up 13% due to share repurchases

* Net interest income for Q3 slightly increases to $94.2 mln from $93.7 mln yr/yr

* Company lowers 2025 EPS guidance to $5.10 due to lower lending balances

Outlook

* The Bancorp lowers 2025 EPS guidance to $5.10 from $5.25

* Company targets $7 EPS run-rate by Q4 2026

* The Bancorp initiates 2027 EPS guidance at $8.25

Result Drivers

* CARD SPENDING GROWTH - Gross dollar volume on prepaid, debit, and credit cards increased 16% yr/yr due to organic growth and new product launches

* CONSUMER FINTECH LOANS - Consumer fintech loans increased 180% yr/yr

* LOWER EPS GUIDANCE - Co lowers 2025 EPS guidance to $5.10 due to lower lending balances and increased credit provisions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $1.18

Q3 Net $54.92

Income mln

Q3 Net $94.19

Interest mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Bancorp Inc ( TBBK ) is $76.00, about 2.2% below its October 29 closing price of $77.64

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)