The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Investor Presentation (September 2012)
22 slides from The Bancorp's investor presentation, Sep 17, 2012
Slide 1: The Bancorp, Inc. Investor Presentation 2nd Quarter, 2012
The Bancorp, Inc. • Investor Presentation 2 nd Quarter, 2012 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 m
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: Planning for Growth: Consumer Distribution Channel Penetration
The Bancorp, Inc. - Planning for Growth Consumer Distribution Channel Penetration Percent of U.S. Households, 1980-2009 Source: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Journal, Merca
Slide 5: Business Model: A Distinct Business Strategy
Assets Deposits Prepaid Cards Open Loop Prepaid Cards • Deposits • Non interest Income Healthcare Health Savings Accounts and Flexible Spending Accounts • Deposits • Non interest Income Merchant Processing Credit, Debit Card and ACH Processing • Deposits • Non interest Income Wealth Management Depos
Slide 6: Revenue Composition
Revenue Composition (1) Post provision net interest income and non interest income excluding securities gains and losses. *Based on historical trends and is not intended to be, nor is, predictive of future results. $
Slide 7: Continued Growth in Non Interest Income
Continued Growth in Non Interest Income (1) Non Interest Income-Generating Strategies: Growth and Sustainability $ (1) Excludes gains on investment securities. (2) Excluding a one time legal settlement of $233,000 for the second quarter 2011 the percentage increase would have been 57%. (3) CAGR calc
Slide 8: Prepaid Gross Dollar Volume and Cardholder Growth
Prepaid Gross Dollar Volume (1) and Cardholder Growth (2) (1) Gross Dollar Volume is the total amount spent on all cards outstanding within a given period. (2) Number of active cards as of year-end of the stated year with the exception of 2012, which is end of the second quarter. *Includes actual da
Slide 9: Net Interest Income Generators
Net Interest Income Generators (1) Compressed Interest Rate Environment $ (1) CAGR calculated 2009 through 2011 *Based on historical trends and is not intended to be, nor is, predictive of future results.
Slide 10: Primary Asset-Generating Strategies: Business Line Overview
Category Balance Balance Avg. Yield (in thousands) Community Bank $ 1,397,041 $ 1,377,041 4.22% Government Guaranteed Lending 53,583 14,870 5.24% Wealth Management 213,651 159,733 2.78% Leasing Portfolio 140,012 127,016 7.20% Investment Securities 604,611 371,201 3.30% Primary Asset-Generating Strat
Slide 11: Asset Quality Overview
Non-Accrual Loans/Total Loans (1) Asset Quality Overview (1) Regional peers include publicly traded Mid-Atlantic commercial banks with assets between $1 billion and $4 billion as of June 30, 2012; graphs represent median values. (2) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 +
Slide 12: Deposit-Generating Strategies: Growth and Low Cost
Growth in Average Deposits YTD Average Deposits (dollars in thousands) Cost of Funds (2) Peer Cost of Funds (1) 2012 $ 3,420,470 0.26% 0.54% 2011 $ 2,527,704 0.43% 0.91% Change $ 892,766 -0.17% -0.37% % Change 35% -40% -41% Deposit-Generating Strategies: Growth and Low Cost The Bancorp has experienc
Slide 13: Private Label Agreements by Remaining Contractual Term
Private Label Agreements by Remaining Contractual Term (1) 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 14: Growth Engine: Where Do Deposits Come From?
June 30, 2012 Category Balance (in millions) Avg. Cost Community Bank $ 318 0.42% Healthcare 445 0.96% Prepaid Cards (including demand deposit accounts) 1,104 0.04% Wealth Management 618 0.53% Merchant Processing 162 0.54% 1031 Exchange 176 0.73% Total Deposits: $2.8 billion Average Cost: 0.26% (Pee
Slide 15: Operating Leverage: Adjusted Operating Earnings
Adjusted Operating Earnings (1),(2) Operating Leverage (1) As a supplement to GAAP, Bancorp has provided this non-GAAP performance result. The Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance. Management utilizes adjusted
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 Appr
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 June 30, 2012 June 30, 2011 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 8.98% 10.63% Tier 1 capital to average assets 8.22% 9.87% Tier 1 capital to total risk-weighted a
Slide 19: Current Loan Portfolio and Asset Quality Overview at 6/30/2012
Category (dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquen t Q2 2012 Quarterly Charge-offs (net) Commercial $ 441,167 25% $9,536 0.53% $ 2,632 $670 $ 540 $ (779) Commercial mortgage 596,639 34% 5,559 0.31% 1,555 5,6
Slide 20: Real Estate Lending Targets Well-Positioned Attractive, Stable Markets
Home Prices Q4-2008 to Q4-2011 (1) Home Prices Q4-2010 to Q4-2011 (1) United States -9.90% -4.00% Philadelphia, PA -12.20% -5.70% 1 st Quarter 2012 (2) US NJ DE PA % of Homes with Negative Equity 23.70% 18.90% 17.30% 9.40% Bancorp’s Real Estate Lending Business Targets Well-Positioned Attractive, St
Slide 21: The Bancorp
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Slide 22: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK