Slide 1: The Bancorp, Inc. Investor Presentation 4th Quarter, 2012
The Bancorp, Inc. • Investor Presentation 4th 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, 1999-2009 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 Payment Acceptance Credit, Debit Card and ACH Processing • Deposits • Non-interest Income Wealth Management Deposi
Slide 6: 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
Slide 7: Post Provision Income
Post Provision Income (1) Revenue Composition (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 held-to-maturity
Slide 8: Net Interest Income Generators
Net Interest Income Generators Compressed Interest Rate Environment $ * Other is comprised of net interest income produced by the following areas: Investment Securities, Leasing Portfolio, Government Guaranteed Lending, and Wealth Management.
Slide 9: Continued Growth in Non-Interest Income
Continued Growth in Non-Interest Income $ Non-Interest Income-Generating Strategies: Growth and Sustainability $19,524 84% Increase (1) Excludes gains on investment securities *Not meaningful
Slide 10: Non Interest Income / Non Interest Expense
Non Interest Income / Non Interest Expense (%)¹ Scalable Business Model 4 Non-interest income is approximately half of non-interest expense, driving improving operating earnings 4 Cost of customer acquisition continues to decline due to strength of affinity relationships
Slide 11: 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 12: Asset Categories and Average Yields
Category Balance Balance Avg. Yield (in thousands) Community Bank $1,403,487 $ 1,418,121 4.15% Government Guaranteed Lending 90,795 32,080 5.19% Wealth Management 252,475 164,945 2.79% Leasing Portfolio 156,097 129,682 7.10% Investment Securities 763,244 466,248 2.45% • Community Bank § Offers tradi
Slide 13: Non-Accrual Loans/Total Loans: 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 September 30, 2012; graphs represent median values. (2) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans
Slide 14: Growth Engine: Where Do Deposits Come From?
December 31, 2012 Category Balance (in millions) Avg. Cost Community Bank $ 341 0.32% Healthcare 330 0.55% Prepaid Cards (including demand deposit accounts) 1,290 0.06% Wealth Management 790 0.47% Payment Acceptance 225 0.60% 1031 Exchange 337 0.37% Total Deposits: $3.3 billion Average Cost: 0.31% (
Slide 15: Private Label Deposits by Remaining Contractual Term
Private Label Deposits 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.
Slide 16: Growth in Average Deposits
Growth in Average Deposits December 31 YTD Average Deposits (dollars in thousands) Cost of Funds (2) Peer Cost of Funds (1) 2012 $ 3,148,977 0.31% 0.49% 2011 $ 2,562,132 0.42% 0.87% Change $ 586,845 -0.11% -0.38% % Change 23% -26% -44% Deposit-Generating Strategies: Growth and Low Cost The Bancorp h
Slide 17: 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 18: Appendix
APPENDIX NASDAQ: TBBK
Slide 19: Selected Capital and Asset Quality Ratios
As of or for the three months ended As of or for the three months ended December 31, 2012 December 31, 2011 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 9.10% 9.02% Tier 1 capital to average assets 9.99% 8.69% Tier 1 capital to total risk-wei
Slide 20: Current Loan Portfolio and Asset Quality Overview at 12/31/2012
Category (dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Q4 2012 Quarterly Charge-offs (net) Commercial $ 470,109 25% $ 10,459 0.55% $ 2,500 $ 5,750 $ 1,350 $ (133) Commercial mortgage 617,069 32% 9,175 0.48% 891
Slide 21: Real Estate Lending Targets Well-Positioned, Stable Markets
1 st Quarter 2012 (1) US NJ DE PA % of Homes with Negative Equity 22.0% 19.9% 15.8% 9.6% Bancorp’s Real Estate Lending Business Targets Well-Positioned Attractive, Stable Markets • Commercial lending is substantially all in greater Philadelphia/Wilmington metropolitan area § Consists of the 12 count
Slide 22: Post Provision Income Reconciliation
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Slide 23: Adjusted Operating Earnings Reconciliation
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Slide 24: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK