Slide 1: Investor Presentation First Quarter, 2014
INVESTOR PRESENTATION First Quarter, 2014
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
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 Approach: – Deposits - U
Slide 4: Planning for Growth
PLANNING FOR GROWTH Sources: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Journal, AlixPartners
Slide 5: Business Model: A Distinct Business Strategy
BUSINESS MODEL: A DISTINCT BUSINESS STRATEGY (1) Assets Deposits Securities Portfolio Primarily highly rated government obligations • Interest Income Government Guaranteed Lending (GGL) Includes loans to franchisees; many of which have a 75% guaranteed by U.S. government • Interest Income (1) For th
Slide 6: Revenue Composition
REVENUE COMPOSITION Post Provision Income (1) (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 reconciliat
Slide 7: Prepaid Gross Dollar Volume (GDV) 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 2013 (2) Excludes gains on investment securities 27% Increase $ (2) 12% -35% 50% 14% 117% 152% -19%
Slide 9: Scalable Business Model: Non-Interest Income / Non-Interest Expense
SCALABLE BUSINESS MODEL: NON-INTEREST INCOME / NON-INTEREST EXPENSE (1) Compound annual growth rate is calculated for the years 2010 through 2013 (2) Excludes gains on investment securities and nonrecurring expenses; 2011 includes a one-time gain of $718,000 related to a legal settlement (3) Peers a
Slide 10: Compressed Interest Rate Environment: Net Interest Income Generators
COMPRESSED INTEREST RATE ENVIRONMENT: NET INTEREST INCOME GENERATORS (2) $ (1) Compound annual growth rate is calculated for the years 2010 through 2013 (2) Other is comprised of net interest income produced by the following areas: Investment Securities, Leasing, Government Guaranteed Lending, Insti
Slide 11: Operating Leverage: Adjusted Operating Earnings
OPERATING LEVERAGE: ADJUSTED OPERATING EARNINGS (1) Compound annual growth rate is calculated for the first quarters of 2010 through 2014 $
Slide 12: Primary Asset-Generating Strategies: Business Line Overview
CATEGORY Q1 2014 BALANCE Q1 2013 BALANCE Q1 2014 AVG. YIELD (in thousands) Investment Securities $1,508,857 $943,717 2.36% Institutional Banking 332,563 253,121 2.65% Leasing 181,007 157,508 6.78% Government Guaranteed Lending 167,628 120,902 4.57% Community Bank 1,381,199 1,408,957 3.97% CMBS 203,6
Slide 13: Asset Quality Overview
ASSET QUALITY OVERVIEW Reserves/Loans (1) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 + days past due + OREO)/(Loss Reserves + Tangible Equity). TBBK computed with consolidated capital. Sources: SNL Financial; FDIC Call Reports
Slide 14: Primary Deposit-Generating Strategies: Business Line Overview
PRIMARY DEPOSIT-GENERATING STRATEGIES: BUSINESS LINE OVERVIEW CATEGORY Q1 2014 BALANCE (in thousands) Q1 2014 AVG. COST Prepaid Cards $1,846,967 0.02% Institutional Banking 1,055,146 0.39% Payment Acceptance 387,127 0.74% Healthcare 442,560 0.51% Community Bank 389,712 0.24% Discontinued Business Li
Slide 15: Deposit-Generating Strategies: Sticky and Long-Term
DEPOSIT-GENERATING STRATEGIES: STICKY AND LONG-TERM The Bancorp has long-term, often exclusive agreements in place with its private label banking partners. (1) Percentages shown reflect data as of the end of the first quarter of 2014 (2) Contracts associated with 100% of deposits in this segment are
Slide 16: Planning for Growth with Safety and Soundness
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 Approach: – Deposits - U
Slide 17: Appendix
APPENDIX
Slide 18: Selected Capital and Asset Quality Ratios, Balance Sheet Data
As of or for the three months ended March 31, 2014 (dollars in thousands) As of or for the three months ended March 31, 2013 (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 7.79% 8.38% Tier 1 capital to average assets 7.39% 8.26% Tier 1 capital to total risk-weighted
Slide 19: Current Loan Portfolio and Asset Quality Overview at 3/31/2014
Category ( dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Q1 2014 Quarterly Charge-offs (net) Commercial $489,574 24% $21,901 1.08% $9,504 $401 $ - $ (2,098) Commercial mortgage 610,990 30% 5,250 0.26% 9,437 - -
Slide 20: Post Provision Income Reconciliation
Category (dollars in millions) 2010 2011 (1) 2012 2013 Q1 2013 Q1 2014 Interest Income $82.7 $88.4 $96.8 $106.6 $25.4 $29.5 Interest Expense (14.5) (12.0) (11.4) (10.8) (2.7) (2.9) Net Interest Income 68.2 76.4 85.4 95.8 22.7 26.6 Provision for Loan and Lease Losses (19.3) (21.5) (22.4) (29.5) (5.5)
Slide 21: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation(1) Category (dollars in thousands) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010Q2 2010 Q1 2010 Net income (loss) available to common shareholders $298 $7,324 $4,788 $5,592 $7,406$5,23
Slide 22: www.thebancorp.com
www.thebancorp.com