The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Investor Presentation (April 2025)
31 slides from The Bancorp's investor presentation, Apr 24, 2025
Slide 1: The Bancorp Investor Presentation April 2025
THE BANCORP INVESTOR PRESENTATION APRIL 2025
Slide 2: Disclosures
2 DISCLOSURES Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) business , that are not historical facts, are “forward - looking statements.” These statements may be identified by the use of forward - looking terminology, including the words “intend,” “may,” “believe,” “w
Slide 3: Delivering Strong Financial Performance
3 FINANCIAL PERFORMANCE DELIVERING STRONG FINANCIAL PERFORMANCE Q1 2025 2024 2023 2022 29% 27% 26% 19% ROE PROFITABILITY 2.5% 2.7% 2.6% 1.8% ROA 41% 40% 41% 48% EFFICIENCY RATIO 1 SCALABLE PLATFORM KEY FINANCIAL METRICS 1 Please see Appendix slide 31 for calculation of efficiency ratio. Platform del
Slide 4: Earnings Guidance
4 EARNINGS GUIDANCE DELIVERING STRONG FINANCIAL PERFORMANCE GUIDANCE Our 2025 guidance 1 is $5.25 per share as we maintain strong momentum across our platform 1 2025 guidance excludes impact of 2025 share repurchases. Additionally, guidance assumes achievement of management’s strategic goals as desc
Slide 5: The Bancorp Core Business Model
5 THE BANCORP CORE BUSINESS MODEL FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND ATTRACTS STABLE, LOWER - COST DEPOSITS DEPLOYED INTO ASSETS IN SPECIALIZED MARKETS THE BANCORP BUSINESS MODEL
Slide 6: Fintech Partner Bank: Fintech Ecosystem
6 FINTECH PARTNER BANK FINTECH LEADERSHIP PAYMENT NETWORKS FACILITATE payments between parties via the card networks. PROGRAM MANAGERS CLIENT FACING platforms deliver highly scalable banking solutions to customers with emphasis on customer acquisition and technology. REGULATORS OVERSIGHT of domestic
Slide 7: Specialized Lending Business Lines
7 SPECIALIZED LENDING SPECIALIZED LENDING BUSINESS LINES LENDING BUSINESSES Core lending businesses are comprised of our specialized lending activities Institutional Banking $1.8B Emphasize core business lines and add related products and enter adjacent markets Remain positioned to capitalize on cre
Slide 8: Our 2030 Strategy Overview
8 2030 STRATEGY OUR 2030 STRATEGY OVERVIEW Our new 2030 strategy encompasses previous goals outlined in Vison 700 while adding new fintech opportunities Build on our strengths Create new opportunities Sustain revenue growth Enhance profitability Averting substantial event - risk Keeping the balance
Slide 9: 2030 Strategy and Long-Term Financial Targets
2030 STRATEGY *Without competing with our partners 1 PROVIDE NEW FINTECH SERVICES 3 SUPPORT FINTECH LENDING 2 MONETIZE CORE COMPETENCIES Our 2030 plan comprises new opportunities identified across various strategic pathways: 1 Long term guidance assumes achievement of management’s long - term strate
Slide 10: Fintech Solutions: Deposit & Fee Generation
FINTECH SOLUTIONS: DEPOSIT & FEE GENERATION
Slide 11: Fintech Solutions: Fee & Deposit Generating Activities
11 FINTECH SOLUTIONS: FEE & DEPOSIT GENERATING ACTIVITIES ENABLING LEADING FINTECH COMPANIES DEBIT PROGRAM MANAGERS (CHALLENGER BANKS) PREPAID/STORED VALUE PROGRAM MANAGERS • Provides physical and virtual card issuing • Maintains deposit balances on cards • Facilitates payments into the card network
Slide 12: Fintech Solutions: Established Operating Platform
12 FINTECH SOLUTIONS : ESTABLISHED OPERATING PLATFORM SCALABLE PLATFORM ESTABLISHED OPERATING PLATFORM • Infrastructure in place to support significant growth • Long - term relationships with multiple processors enable efficient onboarding • Continued technology investments without changes to expens
Slide 13: Fintech Solutions: Stable, Lower-Cost Deposit Generator
13 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR DEPOSIT GROWTH FROM FINTECH BUSINESS HIGHLIGHTS • Stable, lower - cost deposit base anchored by contractual, multi - year relationships in our Fintech Solutions business • Fintech Solutions growth driven by increased transactional volume
Slide 14: Stable Deposits & Significant Balance Sheet Liquidity
14 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR STABLE DEPOSITS & SIGNIFICANT BALANCE SHEET LIQUIDITY STRONG POSITIONING Our deposit base is primarily comprised of granular, small balance, FDIC insured accounts and we maintain significant borrowing capacity on our credit lines ESTIMATE
Slide 15: Loans, Leases & Supporting Collateral
LOANS, LEASES & SUPPORTING COLLATERAL
Slide 16: Loans & Leases Strategic Outlook
16 LOANS & LEASES STRATEGIC OUTLOOK Optimize balance sheet and continue to capitalize on fintech lending opportunities KEY CONSIDERATIONS FOR LENDING GROWTH MANAGE CREDIT RISK TO DESIRED LEVELS OPTIMIZE NET INTEREST MARGIN AND MONITOR INTEREST RATE SENSITIVITY EXPAND FINTECH LENDING WITH KEY CLIENTS
Slide 17: Loan Portfolio Overview
17 LOANS & LEASES LOAN PORTFOLIO OVERVIEW % OF TOTAL PORTFOLIO 03/31/2025 PRINCIPAL BALANCE ($ MILLIONS) BALANCE SHEET CATEGORY BUSINESS LINE 35% $ 2,300 Multifamily - commercial real estate (A) Real Estate Bridge Lending <1% 19 Hospitality - commercial real estate <1% 12 Retail - commercial real es
Slide 18: Loans & Leases: Real Estate Bridge Lending
18 LOANS & LEASES: REAL ESTATE BRIDGE LENDING COMMERCIAL REAL ESTATE BRIDGE LENDING % TOTAL WEIGHTED AVG INTEREST RATE ORIGINATION DATE LTV 1 BALANCE # LOANS TYPE 98% 8.5% 70% $ 2,300 179 Multifamily (apartments) <1% 9.8% 66% 19 1 Hospitality (hotels and lodging) <1% 8.2% 72% 12 2 Retail <1% 5.0% 71
Slide 19: Loans & Leases: Institutional Banking
19 LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING BUSINESS OVERVIEW: • Automated loan application platform, Talea, provides industry - leading speed and delivery • Securities - backed lines of credit provide fast and flexible liquidity for investment portfolios • Insurance - backed line
Slide 20: Institutional Banking Loan Portfolio
20 LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING % OF PORTFOLIO PRINCIPAL BALANCE LOAN TYPE 57% $ 1,042 Securities - backed lines of credit (SBLOC) 29% 535 Insurance - backed lines of credit (IBLOC) 14% 266 Advisor Financin
Slide 21: Loans & Leases: Small Business Lending
21 LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING $ 997 M Q1 2025 PORTFOLIO SIZE 7.1 % 03/31/2025 EST. YIELD BUSINESS OVERVIEW: • Established a distinct platform within the fragmented SBA market − National portfolio approach allows pricing and client flexibility − Solid credit perform
Slide 22: Strong Collateral & Government Guarantees
22 LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE 1 ($MILLIONS) 03/31/2025 SMALL BUSINESS LOANS BY STATE 1 ($MILLIONS) 03/31/2025 TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE STATE $ 144 $ 6 $ 5 $ 133 California 9
Slide 23: Loans & Leases: Commercial Fleet Leasing
23 LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING BUSINESS OVERVIEW: • Niche provider of vehicle leasing solutions − Focus on smaller fleets (less than 150 vehicles) − Direct lessor (The Bancorp Bank, N.A. sources opportunities directly and provides value - add services such as ou
Slide 24: Commercial Fleet Leasing Portfolio
24 TOTAL BALANCE STATE 16% $ 115 Florida 8% 60 New York 7% 53 Utah 7% 52 Connecticut 6% 46 California 6% 42 Pennsylvania 5% 38 North Carolina 5% 37 New Jersey 5% 36 Maryland 3% 23 Texas 3% 19 Idaho 2% 15 Georgia 2% 14 Washington 2% 13 Ohio 2% 13 Iowa 21% 134 Other states 100% $ 710 Total LOANS & LEA
Slide 25: Financial Review
FINANCIAL REVIEW rep} TheB e Bancorp
Slide 26: Financial Review: Earnings and Profitability
26 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE GROWTH HAS EXCEEDED EXPENSE GROWTH SINCE 2022 1 Revenue includes net interest income and non - interest income. Excludes consumer fintech loan credit enhancement income of $45.9 million and $30.7 million at March 31, 2025 and December 31, 2024,
Slide 27: Financial Review: Loan Loss Reserve
27 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 2020 2021 2022 2023 2024 Q1 2025 FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES PRIMARILY REFLECTS OUR CHARGE - OFF HISTORY HIGHLIGHTS • Increase in allowance driven by Consumer Fintech is entirely offset by credit enhancement recogni
Slide 28: Financial Review: Historical Capital Position
28 FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION CAPITAL POSITION HIGHLIGHTS • Planned common stock repurchase 2 of $150M in 2025 • Corporate governance requires periodic assessment of capital minimums • Capital planning includes stress testing for unexpected conditions and events 0% 2% 4% 6% 8% 10%
Slide 29: Historical Performance and Long-Term Targets
29 HISTORICAL PERFORMANCE AND LONG - TERM TARGETS FINANCIAL REVIEW: EARNINGS AND PROFITABILITY LONG - TERM TARGETS Q1 2025 2024 2023 2022 2021 PERFORMANCE METRICS >40% 28.6% 27.2% 25.6% 19.3% 17.9% ROE >4.0% 2.49% 2.71% 2.59% 1.81% 1.68% ROA $1.19 $4.29 $3.49 $2.27 $1.88 EPS >10% 9.8% 10.4% 12.4% 10
Slide 30: Appendix
APPENDIX rep} TheB e Bancorp
Slide 31: Revenue & Efficiency Ratio Calculations
31 REVENUE & EFFICIENCY RATIO CALCULATIONS APPENDIX ($ millions) Q1 2025 Q1 2024 2024 2023 2022 2021 The Bancorp $ 91,743 $ 94,418 $ 376,241 $ 354,052 $ 248,841 $ 210,876 Net interest income 83,642 29,382 157,514 112,094 105,683 104,749 Non - interest income 45,868 - 30,651 - - - Consumer fintech cr