The Bancorp, Inc. (TBBK) reported fourth-quarter adjusted EPS of $1.28, missing the $1.46 consensus estimate. Quarterly revenue of $172.6 million rose 16.1% year-over-year but fell short of the $194.1 million forecast. The miss was primarily due to Net Interest Income (NII) totaling $92.1 million, a 2.4% decrease from the prior year, as NIM compressed to 4.30%.
Efficiency ratios rose to 42.5%, impacted by a one-time legal settlement. However, the Fintech Solutions segment remained a bright spot, with gross dollar volume (GDV) increasing 16% to $45.9 billion. Full-year 2025 net income reached $4.92 per share, an 11% increase over 2024. Similar to the “seat-count” headwinds in the SaaS sector, the bank noted that lower deposit flows among certain fintech partners were partially responsible for the NII shortfall.