Slide 1: The Bancorp Investor Presentation January 2025
THE BANCORP INVESTOR PRESENTATION JANUARY 2025
Slide 2: Disclosures
2 DISCLOSURES Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) business , that are not historical facts, are “forward - looking statements.” These statements may be identified by the use of forward - looking terminology, including the words “intend,” “may,” “believe,” “w
Slide 3: Delivering Strong Financial Performance
3 FINANCIAL PERFORMANCE DELIVERING STRONG FINANCIAL PERFORMANCE 2024 2023 2022 2021 8% 31% 12% 13% REVENUE GROWTH 1 GROWTH 27% 26% 19% 18% ROE PROFITABILITY 2.7% 2.6% 1.8% 1.7% ROA 40% 41% 48% 53% EFFICIENCY RATIO 1 SCALABLE PLATFORM KEY FINANCIAL METRICS 1 Please see Appendix slide 31 for reconcili
Slide 4: Earnings Guidance
4 EARNINGS GUIDANCE DELIVERING STRONG FINANCIAL PERFORMANCE GUIDANCE Our 2025 guidance 1 is $5.25 per share as we maintain strong momentum across our platform 1 2025 guidance excludes impact of 2025 share repurchases. Additionally, guidance assumes achievement of management’s strategic goals as desc
Slide 5: The Bancorp Core Business Model
5 THE BANCORP CORE BUSINESS MODEL FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND ATTRACTS STABLE, LOWER - COST DEPOSITS DEPLOYED INTO ASSETS IN SPECIALIZED MARKETS THE BANCORP BUSINESS MODEL FINTECH SOLUTIONS Enabling fintech companies by providing card sponsorship, facilitating other payment
Slide 6: Fintech Partner Bank
6 FINTECH PARTNER BANK FINTECH LEADERSHIP PAYMENT NETWORKS FACILITATE payments between parties via the card networks. PROGRAM MANAGERS CLIENT FACING platforms deliver highly scalable banking solutions to customers with emphasis on customer acquisition and technology. REGULATORS OVERSIGHT of domestic
Slide 7: Specialized Lending
7 SPECIALIZED LENDING SPECIALIZED LENDING BUSINESS LINES LENDING BUSINESSES Core lending businesses are comprised of our specialized lending activities Institutional Banking $1.8B Emphasize core business lines and add related products and enter adjacent markets Remain positioned to capitalize on cre
Slide 8: Our 2030 Strategy Overview
8 2030 STRATEGY OUR 2030 STRATEGY OVERVIEW Our new 2030 strategy encompasses previous goals outlined in Vison 700 while adding new fintech opportunities Build on our strengths Create new opportunities Sustain revenue growth Enhance profitability Averting substantial event - risk Keeping the balance
Slide 9: 2030 Strategy
2030 STRATEGY *Without competing with our partners 1 PROVIDE NEW FINTECH SERVICES 3 SUPPORT FINTECH LENDING 2 MONETIZE CORE COMPETENCIES Our 2030 plan comprises new opportunities identified across various strategic pathways: 1 Long term guidance assumes achievement of management’s long - term strate
Slide 10: Fintech Solutions: Deposit & Fee Generation
FINTECH SOLUTIONS: DEPOSIT & FEE GENERATION
Slide 11: Fintech Solutions: Fee & Deposit Generating Activities
11 FINTECH SOLUTIONS: FEE & DEPOSIT GENERATING ACTIVITIES ENABLING LEADING FINTECH COMPANIES DEBIT PROGRAM MANAGERS (CHALLENGER BANKS) PREPAID/STORED VALUE PROGRAM MANAGERS • Provides physical and virtual card issuing • Maintains deposit balances on cards • Facilitates payments into the card network
Slide 12: Fintech Solutions: Established Operating Platform
12 FINTECH SOLUTIONS : ESTABLISHED OPERATING PLATFORM SCALABLE PLATFORM ESTABLISHED OPERATING PLATFORM • Infrastructure in place to support significant growth • Long - term relationships with multiple processors enable efficient onboarding • Continued technology investments without changes to expens
Slide 13: Fintech Solutions: Stable, Lower-Cost Deposit Generator
13 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR DEPOSIT GROWTH FROM FINTECH BUSINESS HIGHLIGHTS • Stable, lower - cost deposit base anchored by contractual, multi - year relationships in our Fintech Solutions business • Fintech Solutions growth driven by increased transactional volume
Slide 14: Stable Deposits & Significant Balance Sheet Liquidity
14 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR STABLE DEPOSITS & SIGNIFICANT BALANCE SHEET LIQUIDITY STRONG POSITIONING Our deposit base is primarily comprised of granular, small balance, FDIC insured accounts and we maintain significant borrowing capacity on our credit lines ESTIMATE
Slide 15: Loans, Leases & Supporting Collateral
LOANS, LEASES & SUPPORTING COLLATERAL
Slide 16: Loans & Leases Strategic Outlook
16 LOANS & LEASES STRATEGIC OUTLOOK Optimize balance sheet and r emain positioned to capitalize on credit sponsorship opportunities KEY CONSIDERATIONS FOR LENDING GROWTH MANAGE CREDIT RISK TO DESIRED LEVELS OPTIMIZE NET INTEREST MARGIN AND MONITOR INTEREST RATE SENSITIVITY MANAGE REAL ESTATE EXPOSUR
Slide 17: Loan Portfolio Overview
17 LOANS & LEASES LOAN PORTFOLIO OVERVIEW % OF TOTAL PORTFOLIO 12/31/2024 PRINCIPAL BALANCE ($ MILLIONS) BALANCE SHEET CATEGORY BUSINESS LINE 35% $ 2,203 Multifamily - commercial real estate (A) Real Estate Bridge Lending <1% 19 Hospitality - commercial real estate <1% 12 Retail - commercial real es
Slide 18: Loans & Leases: Real Estate Bridge Lending
18 LOANS & LEASES: REAL ESTATE BRIDGE LENDING COMMERCIAL REAL ESTATE BRIDGE LENDING % TOTAL WEIGHTED AVG INTEREST RATE ORIGINATION DATE LTV 1 BALANCE # LOANS TYPE 98% 8.7% 70% $ 2,203 174 Multifamily (apartments) 1% 9.8% 66% 19 1 Hospitality (hotels and lodging) <1% 8.2% 72% 12 2 Retail <1% 5.0% 71%
Slide 19: Loans & Leases: Institutional Banking
19 LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING BUSINESS OVERVIEW: • Automated loan application platform, Talea, provides industry - leading speed and delivery • Securities - backed lines of credit provide fast and flexible liquidity for investment portfolios • Insurance - backed line
Slide 20: Institutional Banking Loan Portfolio
20 LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING % OF PORTFOLIO PRINCIPAL BALANCE LOAN TYPE 55% $ 1,016 Securities - backed lines of credit (SBLOC) 30% 548 Insurance - backed lines of credit (IBLOC) 15% 274 Advisor Financin
Slide 21: Loans & Leases: Small Business Lending
21 LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING $ 987 M Q4 2024 PORTFOLIO SIZE 7.5 % 12/31/2024 EST. YIELD BUSINESS OVERVIEW: • Established a distinct platform within the fragmented SBA market − National portfolio approach allows pricing and client flexibility − Solid credit perform
Slide 22: Strong Collateral & Government Guarantees
22 LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE 1 ($MILLIONS) 12/31/2024 SMALL BUSINESS LOANS BY STATE 1 ($MILLIONS) 12/31/2024 TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE STATE $ 140 $ 6 $ 3 $ 131 California 8
Slide 23: Loans & Leases: Commercial Fleet Leasing
23 LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING BUSINESS OVERVIEW: • Niche provider of vehicle leasing solutions − Focus on smaller fleets (less than 150 vehicles) − Direct lessor (The Bancorp Bank, N.A. sources opportunities directly and provides value - add services such as ou
Slide 24: Commercial Fleet Leasing Portfolio
24 TOTAL BALANCE STATE 16% $ 109 Florida 9% 65 New York 7% 52 Utah 7% 48 Connecticut 7% 46 California 6% 43 Pennsylvania 5% 38 New Jersey 5% 37 North Carolina 5% 37 Maryland 4% 25 Texas 3% 20 Idaho 2% 15 Washington 2% 14 Ohio 2% 14 Georgia 2% 13 Alabama 18% 125 Other states 100% $ 701 Total LOANS &
Slide 25: Financial Review
FINANCIAL REVIEW ree} TheB e Bancorp
Slide 26: Financial Review: Earnings and Profitability
26 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE GROWTH HAS SIGNIFICANTLY EXCEEDED EXPENSE GROWTH 1 Revenue includes net interest income and non - interest income. Please see Appendix slide 31. 2 Non - interest income as percentage of average assets ranks in top 11% of the uniform bank perfor
Slide 27: Financial Review: Loan Loss Reserve
27 FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES PRIMARILY REFLECTS OUR CHARGE - OFF HISTORY 1 Please see Appendix slide 32 for GAAP to Non - GAAP reconciliation of adjusted allowance for credit losses to GAAP allowance for c redit losses as % of adjusted loan balance (excluding SB
Slide 28: Financial Review: Historical Capital Position
28 FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION CAPITAL POSITION HIGHLIGHTS • Completed $250M common stock repurchase in 2024 • Planned common stock repurchase of $150M in 2025 • Corporate governance requires periodic assessment of capital minimums • Capital planning includes stress testing for une
Slide 29: Historical Performance and Long-Term Targets
29 HISTORICAL PERFORMANCE AND LONG - TERM TARGETS FINANCIAL REVIEW: EARNINGS AND PROFITABILITY LONG - TERM TARGETS 2024 2023 2022 2021 PERFORMANCE METRICS >40% 27.2% 25.6% 19.3% 17.9% ROE > 4.0% 2.71% 2.59% 1.81% 1.68% ROA $4.29 $3.49 $2.27 $1.88 EPS >10% 10.4% 12.4% 10.7% 10.9% Bancorp Bank, N.A. L
Slide 30: Appendix
APPENDIX ree} TheB e Bancorp
Slide 31: GAAP Revenue & Efficiency Ratio Calculations
31 GAAP REVENUE & EFFICIENCY RATIO CALCULATIONS APPENDIX ($ millions) 2024 1 2023 2022 2021 The Bancorp $ 376,241 $ 354,052 $ 248,841 $ 210,876 Net interest income 126,863 112,094 105,683 104,749 Non - interest income 503,104 466,146 354,524 315,625 Total revenue 8% 31% 12% 13% Growth (Current perio
Slide 32: Reconciliation of Non-GAAP Financial Metrics to GAAP
32 RECONCILIATION OF NON - GAAP FINANCIAL METRICS TO GAAP APPENDIX ($ millions) 2024 2023 2022 2021 2020 $ 31,944 $ 27,378 $ 22,374 $ 17,806 $ 16,082 Allowance for credit losses on loans and leases GAAP 1,195 814 1,167 964 775 Allowance for credit losses on SBLOC & IBLOC 30,749 26,564 21,207 16,842