Slide 1: Investor Presentation Second Quarter 2013
Investor Presentation Second Quarter, 2013 NASDAQ: TBBK
Slide 2: Forward Looking Statements
Forward Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding The Bancorp, Inc.’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. These statements ma
Slide 3: Planning for Growth with Safety and Soundness
The Bancorp, Inc. Planning for Growth with Safety and Soundness • Strategic Goal: – Create and grow a stable, profitable institution with the optimum reliance on capital, risk management and technology, and manage it with knowledgeable and experienced management and senior officers • Tactical Approa
Slide 4: Planning for Growth
The Bancorp, Inc. Planning for Growth
Slide 5: Business Model: A Distinct Business Strategy
Securities Portfolio Primarily highly rated government obligations • Interest Income Government Guaranteed Lending (GGL) Includes loans to franchisees; 75% guaranteed by U.S. government • Interest Income Commercial Mortgage Backed Securities (CMBS) • Non- Interest Income Automobile Fleet Leasing • I
Slide 6: Revenue Composition
Revenue Composition Post Provision Income ( 1, 2) (1) Post provision income is calculated as follows: net interest income less provision for loan and lease losses plus non-interest income excluding gains on sales of investment securities and other than temporary impairment on securities. For reconci
Slide 7: Prepaid Gross Dollar Volume and Cardholder Growth
Prepaid Gross Dollar Volume (GDV) (1) and Cardholder Growth (2) (1) Gross Dollar Volume (GDV) is the total amount spent on all cards outstanding within a given period. The bar graph represents the gross dollar volume for the period segmented by the program contract date (2) Number of active cards as
Slide 8: Non-Interest Income-Generating Strategies: Growth and Sustainability
Non-Interest Income-Generating Strategies: Growth and Sustainability (1) Compound annual growth rate is calculated for the years 2010 through 2012 (2) Not meaningful (3) Excludes gains on investment securities 107% Increase $ (2) (3)
Slide 9: Scalable Business Model: Non-Interest Income/Non-Interest Expense
Scalable Business Model: Non-Interest Income/Non-Interest Expense (1) • Non-interest income is approximately three fourths of non-interest expense, driving improving operating earnings (1) Excludes gains on investment securities and nonrecurring expenses; 2011 includes a one-time gain of $718,000 re
Slide 10: Compressed Interest Rate Environment: Net Interest Income Generators
56% 44% Compressed Interest Rate Environment: Net Interest Income Generators (1) Compound annual growth rate is calculated for the years 2010 through 2012 (2) Other is comprised of net interest income produced by the following areas: Investment Securities, Leasing Portfolio, Government Guaranteed Le
Slide 11: Operating Leverage: Adjusted Operating Earnings
Operating Leverage: Adjusted Operating Earnings (1),(2) (1) As a supplement to GAAP, Bancorp has provided this non-GAAP performance result. The Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance. Management utilizes adjuste
Slide 12: Primary Asset-Generating Strategies: Business Line Overview
June 30, 2013 Category June 30, 2013 Balance June 30, 2012 Balance June 30, 2013 Avg. Yield (in thousands) Community Bank $1,432,010 $1,397,066 4.05% Government Guaranteed Lending 108,614 53,583 4.78% Wealth Management 254,508 213,651 2.75% Leasing Portfolio 172,250 140,012 7.16% Investment Securiti
Slide 13: Asset Quality Overview
Asset Quality Overview (1) Regional peers include publicly traded Mid-Atlantic commercial banks with assets between $1 billion and $4 billion as of March 30, 2013; graphs represent average values (2) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 + days past due + OREO)/(Loss Reser
Slide 14: Primary Deposit-Generating Strategies: Business Line Overview
June 30, 2013 Total Deposits: $3.5 billion Average Cost: 0.27% (Peer Average Cost: 0.39%) (1) Category Balance (in millions) Avg. Cost Community Bank $ 368,879 0.26% Healthcare 381,696 0.59% Prepaid Cards (including demand deposit accounts) 1,323,085 0.01% Wealth Management 895,612 0.43% Payment Acc
Slide 15: Deposit-Generating Strategies: Sticky and Long-Term
Deposit-Generating Strategies: Sticky and Long-Term (1) Percentages shown reflect data as of the end of the second quarter of 2013.
Slide 16: Deposit-Generating Strategies: Growth and Low Cost
Growth in Average Deposits June 30 YTD Average Deposits (dollars in thousands) Cost of Funds Peer Cost of Funds (1) 2013 $3,684,533 0.27% 0.39% 2012 $3,420,470 0.32% 0.52% Change $264,063 -0.05% -0.13% % Change 8% -16% -25% Deposit-Generating Strategies: Growth and Low Cost The Bancorp has experienc
Slide 17: Planning for Growth with Safety and Soundness
The Bancorp, Inc. Planning for Growth with Safety and Soundness • Strategic Goal: – Create and grow a stable, profitable institution with the optimum reliance on capital, risk management and technology, and manage it with knowledgeable and experienced management and senior officers • Tactical Approa
Slide 18: Appendix
Appendix NASDAQ: TBBK
Slide 19: Selected Capital and Asset Quality Ratios; Balance Sheet Data
As of or for the three months ended As of or for the three months ended June 30, 2013 June 30, 2012 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 8.88% 8.98% Tier 1 capital to average assets 8.83% 8.22% Tier 1 capital to total risk-weighted as
Slide 20: Current Loan Portfolio and Asset Quality Overview at 6/30/2013
Category (dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Q2 2013 Quarterly Charge-offs (net) Commercial $481,537 25% $26,936 1.37% $1,160 $6,926 $ - $ (160) Commercial mortgage 651,034 32% 9,323 0.48% 2,794 7,171
Slide 21: Bancorp's Real Estate Lending Business Targets Well-Positioned Attractive, Stable Markets
1st Quarter 2013 (1) US NJ DE PA % of Homes with Negative Equity 19.8% 19.0% 18.7% 10.3% Bancorp’s Real Estate Lending Business Targets Well-Positioned Attractive, Stable Markets • Commercial lending is substantially all in greater Philadelphia/Wilmington metropolitan area – Consists of the 12 count
Slide 22: Post Provision Income Reconciliation
Category (dollars in millions) 2010 2011 (1) 2012 YTD 2013 Q2 2012 Q2 2013 Interest Income $82.7 $88.4 $96.8 51.6 $23.9 $26.2 Interest Expense (14.5) (12.0) (11.4) (5.3) (3.0) (2.6) Net Interest Income 68.2 76.4 85.4 46.3 20.9 23.6 Provision for Loan and Lease Losses (19.3) (21.5) (22.4) (15.0) (4.3
Slide 23: Quarterly Net Income and Adjusted Operating Earnings
422013 1 2013042012 032012 2011 3.2011 422011 @12011 442010 232010 Natincame oss) avallableto common] $5,592 | $7,406 | $5,237 | $3,561 | $3,954 | $3,972 | $3,288 | s2.282 | sé6o | s2eae |s.o41 | sae | s4o7 |is4,056) shareholders Preteredsiom dividend and -]|-]-]- : : : -|-]-]- - - | ozaz aceration
Slide 24: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK