The Bancorp completes $200 million senior notes offering

WILMINGTON - The Bancorp, Inc. (NASDAQ:TBBK), a $3.02 billion market cap financial institution, announced Monday it has completed the sale of $200 million in senior notes due 2030, with a 7.375% interest rate. The notes were sold at par, generating approximately $197 million in net proceeds after underwriting discount but before transaction expenses. According to InvestingPro data, the company maintains a "GREAT" financial health score, suggesting strong operational stability.

According to the press release, the company plans to use the proceeds to redeem or repay at maturity all $100 million of its outstanding 4.75% Senior Notes due 2025, fund its share repurchase program, and for general corporate purposes, which may include providing capital to support growth of its subsidiary, The Bancorp Bank, National Association. InvestingPro analysis reveals management has been aggressively buying back shares, with the stock showing strong momentum, up over 25% year-to-date.

The notes, which will mature on September 1, 2030, were offered through a registration statement filed with the Securities and Exchange Commission. Interest will be payable semi-annually beginning March 1, 2026. The notes are redeemable in whole or in part beginning 30 days prior to maturity at 100% of principal plus accrued interest.

Piper Sandler & Co. and Raymond James & Associates, Inc. served as book-running managers for the offering.

The Bancorp describes itself as the third-largest bank by asset size in South Dakota and the top issuer of prepaid cards in the U.S. The company provides banking services to non-bank financial companies through various business lines including Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending. Trading at a P/E ratio of 13.9 with revenue growth of 11.2% over the last twelve months, the company’s detailed financial analysis and 8 additional ProTips are available through InvestingPro’s comprehensive research reports.

In other recent news, The Bancorp reported its second-quarter 2025 earnings, showing a slight miss in earnings per share (EPS) but a significant beat in revenue forecasts. The company’s EPS was $1.27, narrowly missing the expected $1.28, while revenue reached $181.24 million, surpassing the forecast of $166 million. Despite the positive revenue figures, the stock experienced a decline in aftermarket trading. In addition to earnings, Raymond James upgraded The Bancorp’s stock rating from Outperform to Strong Buy. This upgrade was accompanied by an increased price target from $71.00 to $76.00. The decision followed meetings with Bancorp’s CEO and other executives, highlighting plans to enhance partnerships with fintech companies like Chime, PayPal, and Block. These developments reflect ongoing strategic efforts and recent financial performance at The Bancorp.

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