The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Investor Presentation (October 2018)
21 slides from The Bancorp's investor presentation, Oct 9, 2018
Slide 1: Payments Franchise Overview
Payments Franchise OverviewOctober 9, 2018
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures
Slide 3: The Bancorp Business: Our business model and strategy overview
1 2 THE BANCORP BUSINESSOur business model and strategy overviewPAYMENTS FRANCHISE OVERVIEWThe Bancorp’s key role in an evolving marketplace
Slide 4: The Bancorp Strategy
The Bancorp Strategy 16/30/2018 vs. 6/30/2017 net interest income plus non interest income excluding change in value of unconsolidated entity and gain/loss on sale of securities The Bancorp has developed a client-driven business strategy which leverages our strategic assets and has significantly imp
Slide 5: Unique deposit gathering platform linked to our payments franchise
The Bancorp has a unique deposit gathering platform linked to our payments franchise …creates a stable, low cost deposit base… Deposits ($M)1 Other Payments Prepaid cards HIGHLIGHTS:Average deposit cost of 0.59% for the quarter ended 6/30/2018Payments represent the largest and fastest growing source
Slide 6: Utilizing deposits to build our lending franchise
…which we are utilizing to build our lending franchise We will continue to grow our historically low losslending activities within our key business lines Loan balances ($M)1 Institutional Banking Real Estate Capital Markets Small Business Leasing 1 End of period balances Niche vehicle fleet leasing
Slide 7: Key differentiators for The Bancorp
Key differentiators for The Bancorp Leading payments franchise, driving fee income growth Commencing Phase #3 re-engineering of platform to enable innovative growth Low cost payments deposits will only partially adjust to increases in market interest rates Asset sensitive balance sheet with majority
Slide 8: Payments Franchise Overview
1 2 THE BANCORP BUSINESSOur business model and strategy overviewPAYMENTS FRANCHISE OVERVIEWThe Bancorp’s key role in an evolving marketplace
Slide 9: Payments franchise: Payments Solutions Group and Payment Acceptance Group
Our Payments franchise is comprised of the Payments Solutions Group (Issuance) and Payment Acceptance Group (Acceptance) Payment Solutions Group Issuing bank for leading prepaid card and debit programs Payment Acceptance Group Merchant acquiring, ACH services, and Rapid Funds BUSINESS OVERVIEW Spons
Slide 10: Serving the world's most successful companies
Serving the world’s most successful companies >110,000,000 Prepaid Cards in U.S. Distribution 1.1+ BillionMerchant Card Transactions Processed in 2017 $560 BillionCombined Annual Payments Processing Volume in 2017 LARGEST #1 Prepaid Card Issuer in U.S.1 8th LARGESTDebit Card Issuer1 TOP 15Automated
Slide 11: Payments Financial Performance
Payments Financial Performance Sources: National Automated Clearing House Association (NACHA); Nilson Report Our growing Payments business is the primary driver of non-interest income and the largest source of the Bank’s deposits Compound Annual Growth 10% Compound Annual Growth 9% Million $ Billion
Slide 12: Market Sources of Demand
Market Sources of Demand The Bancorp delivers the ability to access funds across a wide spectrum of markets General Purpose Reloadable (GPR)TravelTax RefundGift CardsDebitRapid Funds Consumer Corporate Government Payroll CardsIncentives and RebatesHealthcare (FSA, HSA, HRA)Insurance CasualtyCorporat
Slide 13: Payments Ecosystem
Payments Ecosystem The Bancorp plays a key role within a highly developed marketplace ISSUANCE ACCEPTANCE Payment Network BIN1 Sponsor“Issuer” ProgramManager ISO3/ Third Party Sender Merchant/ Originator BIN Sponsor“Acquirer”/ODFI2 The BancorpWells FargoFifth Third Global PaymentsFiservBill.com Reta
Slide 14: Payments Business Model
Payments Business Model The Bancorp is a leading issuer for debit and prepaid cards and maintains partnerships with many of the sector leaders AssociationVISA/MasterCard Merchant Issuing Banks Consumer Acquiring Banks 1 7 2 3 6 5 4 9 8 Program Manager ISO Processor Processor 2
Slide 15: Issuing – Key Roles
Issuing – Key Roles The Bancorp works in a highly integrated manner with our Program Managers and Processors Principal Member and conduit to card networksPrincipal oversight and control of program Facilitates the flow of and assumes fiduciary responsibility for fundsEnsures compliance with applicabl
Slide 16: ACH Services – Business Model
ACH Services – Business Model The Bancorp generates significant transaction volume and revenue from its ACH payments activities Payments CompanyThird Party Sender Receiver ODFI – The Bancorp Originator RDFI 2
Slide 17: ACH Services – Key Roles
ACH Services – Key Roles 2 The Bancorp works in a highly integrated manner with our Third Party Senders Principal Member and conduit to Federal ReservePrincipal oversight and control OFDI Third Party Sender Originator Payments expertiseFed/State/Local Payroll Tax management Employers needing to pay
Slide 18: Rapid Funds – Business Model
Rapid Funds – Business Model The U.S. Payments Ecosystem has been searching for a solution to “faster” payments for over a decade VISA and MasterCard developed their own solutions utilizing existing card network rails and the ubiquity of debit cards Deposit $ to cardOriginal Credit Transaction (OCT)
Slide 19: Rapid Funds – Payment Flows
Rapid Funds – Payment Flows Real-time payments that are secure, simple and scalable 2 Company/Organization Receiver BIN Sponsor PayPal/Venmo AssociationVISA/MasterCard BIN Sponsor AssociationVISA/MasterCard P2P – Person to Person CorporateDisbursements Customer, Partner or Employee of Company
Slide 20: Rapid Funds – Use Cases
Rapid Funds – Use Cases While Person-To-Person payments have been the earliest to adopt Rapid Funds, corporate disbursements represent the much larger and more lucrative opportunity Check Replacement On Demand Marketplace MerchantSettlement SMB Invoicing ContractStaffing AffiliateMarketing Digitalco
Slide 21: Payments High Level Growth Opportunities
Payments High Level Growth Opportunities The Bancorp has significant opportunities to continue to grow our core Payments business and expand into related markets Expanding relationships with long-term strategic clients in a consolidating marketEnhancing payment solutions offering across market segme