The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — JMP Securities Financial Services and Real Estate Conference 2010
20 slides from The Bancorp's conference presentation, Sep 29, 2010
Slide 1: JMP Securities Financial Services and Real Estate Conference
JMP Securities Financial Services and Real Estate Conference New York, NY • September 2010 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: TBBK - Planning for Safety, Soundness and Growth
TBBK - Planning for Safety, Soundness and Growth • Capital: Capacity to grow, with safety net for economic conditions • Strong Senior Management: Knowledgeable and experienced • Disciplined Growth: Driven by TBBK’s focused business strategy • Assets: Simple and local • Deposits: Low-cost and scalabl
Slide 4: Selected Capital and Asset Quality Ratios
As of or for the three months ended As of or for the three months ended June 30, 2010 June 30, 2009 Selected Capital and Asset Quality Ratios: Equity/assets (1) 9.59% 10.47% Tier 1 capital to average assets (1) 9.76% 10.34% Tier 1 capital to total risk-weighted assets (1) 12.82% 12.15% Total Capital
Slide 5: Strong Senior Management Team with a Wealth of Experience
Executive Title Banking Experience Betsy Z. Cohen Chief Executive Officer, Chairman of The Bancorp Bank 35 years Frank M. Mastrangelo President and Chief Operating Officer 17 years Paul Frenkiel Executive Vice President and Chief Financial Officer 25 years Donald F. McGraw, Jr. Executive Vice Presid
Slide 6: 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 7: Well-Positioned in Attractive, Stable Markets
Home Prices 2006 to 2009 Home Prices 2008 to 2009 United States -27.0 -2.5% Philadelphia, PA -5.3 -1.5% 1 st Quarter 2010 US NJ DE PA % of Homes with Negative Equity 23.7% 15.8% 14.1% 7.4% Well-Positioned in Attractive, Stable Markets • Commercial lending is substantially all in greater Philadelphia
Slide 8: Asset-Generating Strategies: Business Line Overview
June 30, 2010 (dollars in thousands) Category Balance Avg. Yield Community Bank $ 1,325,968 4.42% Leasing 95,279 8.55% Wealth Management 155,278 3.43% Asset-Generating Strategies: Business Line Overview • Community Bank § Offers traditional community banking products and services § Leverages the bus
Slide 9: Historical Loan Portfolio Overview
(dollars in thousands) Year ended December 31, June 30, Category 2007 2008 2009 2010 Commercial $325,166 $353,219 $402,232 $403,320 Commercial mortgage (1) 369,124 488,986 569,434 580,542 Construction: 1-4 family 167,485 163,718 100,088 102,730 Construction: commercial, acquisition and development 1
Slide 10: Asset Quality Overview
Non-Performing Loans / Total Loans (1) Reserves / Loans Reserves / Nonaccrual and Restructured Loans (3) Asset Quality Overview (1) Non-performing loans are defined as nonaccrual loans and restructured loans. Loans 90 days past due and still accruing interest are also included in the non-performing
Slide 11: Current Loan Portfolio and Asset Quality Overview at 6/30/2010
Category Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Commercial $ 403,320 26% $ 1,682 0.11% - $ 415 $ 0 Commercial mortgage 580,542 37% 5,024 0.32% - 5,694 7,544 Construction 208,543 13% 3,274 0.21% - - 1,850 Direct financing lease
Slide 12: Deposit-Generating Strategies: Business Line Overview
Deposit-Generating Strategies: Business Line Overview 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 for non-bank financial service providers § Over
Slide 13: Growth Engine: Strong Growth in Deposit Business Lines at Low Cost
June 30, 2010 (dollars in millions) Category Balance Avg. Cost Community Bank $ 370 0.56% Healthcare 393 1.63% Stored Value Relationships (including demand deposit accounts) 697 0.16% Wealth Management 321 1.17% Merchant Processing 63 0.47% 1031 Exchange 38 2.09% Total Deposits: $1.9bn Average Cost:
Slide 14: Deposit-Generating Strategies: Attractive in Cost and Duration
Private Label by Remaining Contractual Term Deposit-Generating Strategies: Attractive in Cost and Duration The Bancorp has long-term, often exclusive agreements in place with its private-label banking partners. We have retained 99% of maturing contracts.
Slide 15: 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 16: Wealth Management and Merchant Processing Relationships
Wealth Management Affinity Relationships Merchant Processing Relationships Wealth management 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: • Currently 16 re
Slide 17: Growth Differentiators for TBBK
YTD Average Deposits Cost of Funds Peer Cost of Funds (2) 2010 $ 1,951,208 0.71% 1.39% 2009 $ 1,519,173 1.02% 2.11% Increase $ 432,035 % Increase 28.4% Growth Differentiators for TBBK 1. Growth in Non-Interest Income (1) 2. Growth in Various Lower-Rate Deposit Categories 3. Targeted for Growth: SBA
Slide 18: Core Operating Earnings
(dollars in thousands) June 30, 2010 June 30, 2009 Net income available to common shareholders $ 407 $ 125 Add: Preferred stock dividend and accretion - 982 Income tax expense 197 632 Provision for loan and lease losses and losses on other real estate owned 5,806 4,200 Subtotal 6,410 5,939 Gains and
Slide 19: Investment Considerations
Investment Considerations • 20-30 year management experience through all economic cycles • Emphasis on high-quality growth with opportunities in multiple business lines • Avoids brick and mortar costs as a basic premise of its branchless banking strategy • Infrastructure investment made by industry
Slide 20: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK
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