The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Investor Presentation (November 2012)
22 slides from The Bancorp's investor presentation, Nov 1, 2012
Slide 1: The Bancorp, Inc. Investor Presentation 3rd Quarter, 2012
The Bancorp, Inc. • Investor Presentation 3rd 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 Payment Acceptance Credit, Debit Card and ACH Processing • Deposits • Non interest Income Wealth Management Deposi
Slide 6: Revenue Composition
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 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) CAGR calculated 2009 through 2011 *Based on historical trends and is not intended to be, nor is, predictive of future results.
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. The bar graph represents the gross dollar volume for the period segmented by the program contract date. (2) Number of active cards as of year-en
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 30, 2012 Balance 30, 2011 Balance 30, 2012 Avg. Yield (in thousands) Community Bank $ 1,406,661 $ 1,398,264 4.21% Government Guaranteed Lending 69,735 24,950 5.37% Wealth Management 233,868 163,034 2.86% Leasing Portfolio 146,728 129,400 7.22% Investment Securities 657,601 434,457 2.95% Pri
Slide 11: Asset Quality Overview: Non-Accrual Loans/Total Loans
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 September 30 YTD Average Deposits (dollars in thousands) Cost of Funds (2) Peer Cost of Funds (1) 2012 $ 3,197,619 0.32% 0.54% 2011 $ 2,505,555 0.41% 0.91% Change $ 692,064 -0.09% -0.37% % Change 28% -22% -41% Deposit-Generating Strategies: Growth and Low Cost The Bancorp
Slide 13: Private Label Deposits by Remaining Contractual Term
Private Label Deposits 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. (1) Does not include deposits associated wi
Slide 14: Growth Engine: Where Do Deposits Come From?
September 30, 2012 Category Balance (in millions) Avg. Cost Community Bank $ 317 0.40% Healthcare 337 0.74% Prepaid Cards (including demand deposit accounts) 1,112 0.01% Wealth Management 648 0.52% Merchant Processing 173 0.64% 1031 Exchange 194 0.49% Total Deposits: $2.8 billion Average Cost: 0.32%
Slide 15: Operating Leverage: Adjusted Operating Earnings
Adjusted Operating Earnings (1),(2), (3) 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 adj
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 September 30, 2012 September 30, 2011 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 9.28% 7.92% Tier 1 capital to average assets 9.20% 9.60% Tier 1 capital to total risk-w
Slide 19: Current Loan Portfolio and Asset Quality Overview at 9/30/2012
Category (dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Q3 2012 Quarterly Charge-offs (net) Commercial $ 453,444 24% $ 7,654 0.41% $ 842 $ 2,857 $ 107 $ (782) Commercial mortgage 614,410 34% 8,894 0.48% 891 1,04
Slide 20: Real Estate Lending Targets Well-Positioned Attractive, Stable Markets
1 st Quarter 2012 (1) US NJ DE PA % of Homes with Negative Equity 22.3% 18.2% 16.2% 9.4% 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 21: Core Operating Earnings Reconciliation
Category (dollars in thousands) Q3 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009 Net income (loss) available to common shareholders $3,561 $3,854 $3,972 $3,288 $2,282 $660 $2,688 $2,041 $588 $407 ($4,056) ($932) $787 $125 $363 Pr
Slide 22: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK