The Bancorp Bank, N.A., a wholly owned subsidiary of The Bancorp, Inc., announced the next phase of its ongoing efforts to align its business priorities, operating model, and resources with Apex 2030, its long-term strategic plan.
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The Bancorp is restructuring its Small Business Lending business line (“SBL”) and intends to discontinue retail and wholesale new originations by the end of 2026, while continuing to responsibly manage and serve existing SBL customers and the loan portfolio. In addition, staffing adjustments were made across several other areas of the organization as it continues to refine workflows, expand automation and artificial intelligence, optimize costs and allocate capital with discipline and invest in its highest-value strategic priorities.
In connection with these changes, the restructuring will eliminate 64 currently filled positions across the organization, or 9% of the enterprise-wide workforce, and 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. Separate from the 64 positions eliminated in the restructuring, 16 additional positions have been, or are expected to be, vacated and not backfilled. The discontinuance of these 80 positions is expected to generate approximately $14 million in annualized run-rate savings. Combined with the 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.
“We have a clear strategic map of where The Bancorp is headed and are making these changes consistent with our fintech pipeline and growth expectations,” said Damian Kozlowski, Chief Executive Officer for The Bancorp. “Advancing Apex 2030 requires us to align our people, capital and technology with the opportunities that offer the greatest potential to create durable value. By simplifying how we operate and building a more focused, technology-enabled organization, we can move faster, serve our partners more effectively and sustain strong performance over the long term. We recognize that these changes affect valued colleagues, and we are grateful for their contributions to The Bancorp.”
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