Slide 1: Investor Presentation Third Quarter, 2013
Investor Presentation Third Quarter, 2013 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 Approa
Slide 4: Planning for Growth
The Bancorp, Inc. 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
Assets Deposits Securities Portfolio Primarily highly rated government obligations • Interest Income Government Guaranteed Lending (GGL) Includes loans to franchisees ; 75% guaranteed by U.S. government • Interest Income Commercial Mortgage Backed Securities (CMBS) Commercial Loan Sales • Non- Inter
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 reconcilia
Slide 7: Prepaid Gross Dollar Volume 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 2012 (2) Not meaningful (3) Excludes gains on investment securities 76% Increase $ (2) (3)
Slide 9: Scalable Business Model
Scalable Business Model: (1) Excludes gains on investment securities and nonrecurring expenses; 2011 includes a one-time gain of $718,000 related to a legal settlement (2) Compound annual growth rate is calculated for the years 2010 through 2012
Slide 10: Compressed Interest Rate Environment: Net Interest Income Generators
Compressed Interest Rate Environment: Net Interest Income Generators (1) Compound annual growth rate is calculated for the years 2010 through 2012 (2) Other is comprised of net interest income produced by the following areas: Investment Securities, Automobile Fleet Leasing, Government Guaranteed Len
Slide 11: Operating Leverage: Adjusted Operating Earnings
Operating Leverage: Adjusted Operating Earnings (1 ) (1) For reconciliation and other details, please see Appendix (2) Compound annual growth rate is calculated for the third quarters of 2010 through 2013 $
Slide 12: Primary Asset-Generating Strategies: Business Line Overview
Category Q3 2013 Balance Q3 2012 Balance Q3 2013 Avg. Yield (in thousands) Community Bank $1,403,113 $1,406,661 3.90% Government Guaranteed Lending 120,217 69,735 4.77% Institutional Banking 290,327 233,868 2.73% Automobile Fleet Leasing 177,798 146,728 6.65% Investment Securities 1,180,613 657,601
Slide 13: Asset Quality Overview
Asset Quality Overview (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
Total Deposits: $3.6 billion Average Cost: 0.25% (Aggregate US Banks Average Cost: 0.43%) (1) (in millions) Community Bank $ 346,954 0.24% Healthcare 387,723 0.58% Prepaid Cards 1,283,919 0.02% Institutional Banking 960,707 0.42% Payment Acceptance 313,799 0.68% 1031 Exchange 276,565 0.23% Primary D
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 third quarter of 2013 (2) Contracts associated with 99% of deposits in this segment are
Slide 16: 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 Approa
Slide 17: Appendix
Appendix NASDAQ: TBBK
Slide 18: Selected Capital and Asset Quality Ratios
As of or for the three months ended As of or for the three months ended September 30, 2013 September 30, 2012 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 8.83% 9.28% Tier 1 capital to average assets 8.91% 9.20% Tier 1 capital to total risk-w
Slide 19: Current Loan Portfolio and Asset Quality
Current Loan Portfolio and Asset Quality The ancorp Overview at 9/30/2013 = 32033, FN %ofTotal Nonaccrual Nonacerul/ 3059Days 90+Days_ Quarterly (Cine) ike Loans Loans Total Loans Delinquent Delinquent = Charge-offs. (ne) Commercial sano 2% 25755 150% s5570 sos S¢508) ommercalortgaee esuase 33% 7580
Slide 20: Post Provision Income Reconciliation
Category (dollars in millions) 2010 2011 (1) 2012 YTD 2013 Q3 2012 Q3 2013 Interest Income $82.7 $88.4 $96.8 $78.4 $24.4 $26.8 Interest Expense (14.5) (12.0) (11.4) (8.0) (2.8) (2.7) Net Interest Income 68.2 76.4 85.4 70.4 21.6 24.1 Provision for Loan and Lease Losses (19.3) (21.5) (22.4) (23.0) (5.
Slide 21: Adjusted Operating Earnings Reconciliation
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Slide 22: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK