The Bancorp Sets 2027 Core EPS at $7.00-$7.20, Previews 2028 Core EPS

The Bancorp set a 2027 core earnings per share range of $7.00 to $7.20 and preliminary 2028 core EPS of $8.00 to $8.20, reflecting updated expectations for Chime, its business pipeline and interest rates. Both outlook ranges include stock buybacks.

Core EPS is a non-GAAP measure. The Bancorp said it could not reconcile its forward estimates with generally accepted accounting principles (GAAP) without unreasonable effort. In July, the company maintained a 2027 EPS outlook of $8.10 to $8.30, but did not describe that measure as core. For the third quarter, The Bancorp posted core diluted EPS of $1.47 and GAAP diluted EPS of $1.53.

In September, Chime struck a $590 million cash deal to acquire Stride Bank. The transaction is slated to close in the first half of 2027, pending regulatory approvals and customary closing conditions. After the acquisition closes, Chime expects to consolidate its banking activities at Stride, which has been its bank partner for more than seven years.

The current agreement runs through July 2028, then renews annually unless either party provides written nonrenewal notice at least 365 days before the term expires. On an Oct. 30 call, CEO Damian Kozlowski said Chime had not given notice to end the agreement. The Bancorp did not quantify how much Chime contributed to the change in its outlook.

CFO Dominic Canuso said the revised expectations reflected Chime’s growth and timing, the pipeline for embedded finance and lending, and a smaller net-interest-income effect from rates. He described buybacks and tax benefits as offsets. Canuso also said management was not prepared to discuss specific transition details. The Bancorp’s buyback target for 2027 through the first quarter of 2028 is about 100% of adjusted net income.