Slide 1: The Bancorp, Inc. Investor Presentation Q2 2011
The Bancorp, Inc. • Investor Presentation Q2 2011 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 Appr
Slide 4: Planning for Growth: Consumer Distribution Channel Penetration
The Bancorp, Inc. - Planning for Growth Consumer Distribution Channel Penetration Percent of U.S. Households, 1980-2009 Source: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Journal, Merca
Slide 5: Non-Interest Income
Non-Interest Income (1) (2) Results: Key Performance Metrics (1) Excludes gains and losses on investment securities. (2) Projection based on the second quarter of 2011 non-interest income projected for three quarters and the actual first quarter of 2011 non-interest income., excludes the legal settl
Slide 6: Core Operating Earnings
Core Operating Earnings (1) Results: Key Performance Metrics (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 co
Slide 7: Business Model: A Distinct Business Strategy
DEPOSITS • Private-Label Banking: stable, lower-cost core deposits § Healthcare § Merchant Processing § Prepaid Cards § Wealth Management • Community Bank Net Interest Margin INCOME Non-Interest Income: Stored value, leasing and merchant processing ASSETS • Above-peer credit quality, well-collateral
Slide 8: Deposit-Generating Strategies: Our Distinct Approach
Deposit-Generating Strategies: Our Distinct Approach The Bancorp employs a multi-channel growth strategy in gathering attractively priced, long-duration deposits on a national scale. • Private-Label Banking § Provider of private-label banking services to more than 300 non-bank financial service prov
Slide 9: Deposit-Generating Strategies: Growth and Low Cost
Growth in Average Deposits YTD Average Deposits (dollars in thousands) Cost of Funds Peer Cost of Funds (1) 2011 $ 2,527,704 0.43% 1.02% 2010 $ 1,951,208 0.72% 1.32% Increase $ 576,496 % Increase 29.55% Deposit-Generating Strategies: Growth and Low Cost The Bancorp has experienced strong growth in d
Slide 10: Deposit-Generating Strategies: Sticky and Long-Term
Private Label Agreements by Remaining Contractual Term Deposit-Generating Strategies: Sticky and Long-Term The Bancorp has long-term, often exclusive agreements in place with its private-label banking partners. We have retained 99% of maturing contracts.
Slide 11: Growth Engine: Where Do Deposits Come From?
June 30, 2011 Category Balance (in millions) Avg. Cost Community Bank $ 345 0.48% Healthcare $ 367 1.14% Stored Value Relationships (including demand deposit accounts) $ 894 0.08% Wealth Management $ 450 0.70% Merchant Processing $ 65 0.42% 1031 Exchange $ 42 1.02% Total Deposits: $2.2 billion Avera
Slide 12: Non-Interest Income-Generating Strategies: Growth and Sustainability
Non-Interest Income-Generating Strategies: Growth and Sustainability (1) Excludes gains on investment securities. (2) Excluding a one time legal settlement of $718,000 in first six months of 2011 the percentage increase would have been 100.5%. Continued growth in non-interest income (1) from all bus
Slide 13: Primary Asset-Generating Strategies: Business Line Overview
Community Bank $ 1,377,041 4.34% GGL $ 14,870 4.55% Wealth Management $ 159,733 3.20% Leasing Portfolio $ 127,016 8.23% Investment Securities $ 371,201 3.88% Primary Asset-Generating Strategies: Business Line Overview • Community Bank § Offers traditional community banking products and services targ
Slide 14: Asset Quality Overview
Non-Accrual Loans/Total Loans (1) Reserves/Loans (1) Reserves/Nonaccrual and Restructured Loans (1) Texas Ratio - Peers (1),(2) Asset Quality Overview (2) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 + days past due + OREO)/(Loss Reserves + Tangible Equity). Source: SNL Financial
Slide 15: Asset Growth
Asset Growth Results: Key Performance Metrics 14% CAGR
Slide 16: Deposit Growth
Deposit Growth Results: Key Performance Metrics 16% CAGR
Slide 17: Appendix
APPENDIX NASDAQ: TBBK
Slide 18: 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, 2011 June 30, 2010 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 10.63% 9.59% Tier 1 capital to average assets 9.87% 9.76% Tier 1 capital to total risk-weighted a
Slide 19: Current Loan Portfolio and Asset Quality Overview at 6/30/2011
Category Balance (in thousands) % of Total Loans Nonaccrual Loans (in thousands) Nonaccrual/ Total Loans OREO (in thousands) 30-89 Days Delinquent (in thousands) 90+ Days Delinquent (in thousands) Quarter Charge-offs (net in thousands) Commercial $ 450,916 27% $ 5,337 0.32% $ 700 $ 3,351 $ 1,133 $ (
Slide 20: Healthcare and Prepaid Card Affinity Relationships
Healthcare Affinity Relationships Prepaid Card Affinity Relationships • We are currently the 6th largest financial institution in the Health Savings Account (HSA) space. (1) • We service insurance carriers, third-party administrators and large brokerage firms for distribution of HSAs and related acc
Slide 21: Wealth Management and Merchant Processing Relationships
Wealth Management Affinity Relationships Merchant Processing Relationships Wealth management provides deposit and lending services to wealth management platforms and firms - including limited-purpose trust companies, broker/dealers and TPAs/record keepers: Wealth Management Bank Affinities: • Curren
Slide 22: Real Estate Lending Targets Well-Positioned Attractive, Stable Markets
Home Prices Q1-2008 to Q1-2011 Home Prices Q1-2010 to Q1-2011 United States -21.3% -5.1% Philadelphia, PA -10.2% -4.6% 1 st Quarter 2011 US NJ DE PA % of Homes with Negative Equity 22.7% 16.2% 14.1% 7.5% Bancorp’s Real Estate Lending Business Targets Well-Positioned Attractive, Stable Markets • Comm
Slide 23: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK