On September 1, 2026, The Bancorp Bank, N.A. (the "Bank"), a wholly owned subsidiary of The Bancorp, Inc. (the "Company"), implemented an organizational restructuring to further align its resources and business with the Company’s strategic priorities (the "Restructuring"). As part of the Restructuring, the Bank intends to discontinue the origination of retail and wholesale Small Business Lending ("SBL") loans by the end of 2026, and focus on managing its existing SBL loan portfolio. In connection with these changes to the SBL business and broader business needs across other departments, the Bank is also implementing staffing reductions. The Restructuring will eliminate 64 currently filled positions across the organization, representing approximately 9% of the Bank’s workforce.

 

The Company currently estimates that it will incur approximately $5.6 million in charges in connection with the Restructuring, consisting primarily of cash expenditures for severance payments, employee benefits, outplacement services, retention payments, and other related costs. The Company expects to recognize $4.5 million of these charges in the third quarter of 2026 and to substantially complete the Restructuring by the end of the fourth quarter of 2026. The Restructuring, together with 16 additional positions unrelated to the Restructuring that, since June 2026, have been, or are expected to be, vacated and not backfilled, is expected to generate approximately $14 million in annualized run-rate savings. Combined with the Bank’s previously disclosed efforts to reorganize the Institutional Banking business in the fourth quarter of 2025, the Company expects it will generate over $20 million in annualized run-rate savings.

 

The Company may incur additional expenses not currently contemplated as a result of events associated with the Restructuring.