Slide 1: The Bancorp, Inc. Investor Presentation, JMP Securities Conference
The Bancorp, Inc. • Investor Presentation • JMP Securities Conference May 9, 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: 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 5: 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 6: 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 $ 2,730,507 0.41% 1.14% 2010 $ 2,085,104 0.70% 1.45% Increase $ 645,403 % Increase 30.95% Deposit-Generating Strategies: Growth and Low Cost The Bancorp has experienced strong growth in d
Slide 7: 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 8: Growth Engine: Where Do Deposits Come From?
March 31, 2011 Category Balance (in millions) Avg. Cost Community Bank $ 367 0.47% Healthcare $ 354 0.93% Stored Value Relationships (including demand deposit accounts) $ 1,248 0.02% Wealth Management $ 444 0.70% Merchant Processing $ 63 0.45% 1031 Exchange $ 55 1.01% Total Deposits: $2.5 billion Av
Slide 9: 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 $485,000 in first quarter 2011 the percentage increase would have been 31.6%. Continued growth in non-interest income (1) from all business s
Slide 10: Primary Asset-Generating Strategies: Business Line Overview
Community Bank $ 1,352,661 4.34% GGL $ 13,014 4.55% Wealth Management $ 162,954 3.20% Leasing Portfolio $ 107,624 8.40% Investment Securities $ 294,941 4.54% Primary Asset-Generating Strategies: Business Line Overview • Community Bank § Offers traditional community banking products and services targ
Slide 11: 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 12: Asset Growth
Asset Growth Results: Key Performance Metrics
Slide 13: Deposit Growth
Deposit Growth Results: Key Performance Metrics
Slide 14: 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 first quarter of 2011 actual non-interest income and the fourth quarter of 2010 non-interest income projected for three quarters.
Slide 15: 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 Company believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance. Although this non-GAAP
Slide 16: Appendix
APPENDIX NASDAQ: TBBK
Slide 17: Selected Capital and Asset Quality Ratios
As of or for the three months ended As of or for the three months ended March 31, 2011 March 31, 2010 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 9.08% 9.66% Tier 1 capital to average assets 8.62% 8.64% Tier 1 capital to total risk-weighted
Slide 18: Current Loan Portfolio and Asset Quality Overview at 3/31/2011
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 $ 430,081 26% $ 2,544 0.16% $ - $ 7,670 $ 1,612 $ (2)
Slide 19: 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 20: 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 21: Well-Positioned in Attractive, Stable Markets
Home Prices Q3-2007 to Q3-2010 Home Prices Q3-2009 to Q3-2010 United States -24.7% -1.5% Philadelphia, PA -8.4% -1.0% 2 nd Quarter 2010 US NJ DE PA % of Homes with Negative Equity 23.0% 15.4% 13.5% 7.3% Well-Positioned in Attractive, Stable Markets • Commercial lending is substantially all in greate
Slide 22: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK