The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Investor Presentation (May 2013)
24 slides from The Bancorp's investor presentation, May 13, 2013
Slide 1: Investor Presentation First Quarter 2013
Investor Presentation First Quarter, 2013 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 ma
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 Approa
Slide 4: Consumer Distribution Channel Penetration, Percent of US Households
Percentage of US. Households ‘Consumes Distribution Channel Penetration Percent of US. Household, 2980-2012 The Bancorp, Inc. Planning for Growth ‘Source: Federal Reserve, FRB Boston, FRB Philsdeiphis, SR Consulting, Unierstyof Michigan, Mint, (Calent, Sankof Amarce, comScore, Nalsan Mobi, WallStree
Slide 5: Business Model: A Distinct Business Strategy
Securities Portfolio Primarily highly rated government obligations • Interest Income Government Guaranteed Lending (GGL) Loans to franchisees; 75% guaranteed by U.S. government • Interest Income Commercial Mortgage Backed Securities (CMBS) • Non- Interest Income Automobile Fleet Leasing • Interest I
Slide 6: Revenue Composition
Revenue Composition Post Provision Income (1) (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 7: Prepaid Gross Dollar Volume (GDV) 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 as
Slide 8: Non-Interest Income-Generating Strategies: Growth and Sustainability
Non-Interest Income-Generating Strategies: Growth and Sustainability (1) Excludes gains on investment securities (2) Compound annual growth rate is calculated for the years 2010 through 2012 *Not meaningful 54% Increase $ (1)
Slide 9: Scalable Business Model: Non-Interest Income/Non-Interest Expense
Scalable Business Model: Non-Interest Income/Non-Interest Expense (1) • Non-interest income is approximately half of non-interest expense, driving improving operating earnings • Cost of customer acquisition continues to decline due to strength of affinity relationships (1) Excludes gains on investme
Slide 10: Net Interest Income Generators
The Bancét baer aziead id Compressed Interest Rate Environment Net Interest Income Generators 42% CAGR® [576,806 Sense ee] miCommunity Bank Other? (Gottarsin thousands) 2010 2012 2012 1 2022 2.2023 (1) Compoundannual growth rateis calculatedtor the years2010through2012, “Other is comprised of netint
Slide 11: Operating Leverage: Adjusted Operating Earnings
Operating Leverage: Adjusted Operating Earnings (1),(2) (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 adjuste
Slide 12: Primary Asset-Generating Strategies: Business Line Overview
March 31, 2013 Category March 31, 2013 Balance March 31, 2012 Balance March 31, 2013 Avg. Yield (in thousands) Community Bank $1,437,359 $1,408,910 4.12% Government Guaranteed Lending 120,902 43,378 5.03% Wealth Management 253,121 166,258 2.72% Leasing Portfolio 157,508 130,321 7.26% Investment Secu
Slide 13: Asset Quality Overview
Asset Quality Overview (1) Regional peers include publicly traded Mid-Atlantic commercial banks with assets between $1 billion and $4 billion as of December 30, 2012; graphs represent median values (2) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 + days past due + OREO)/(Loss Res
Slide 14: Primary Deposit-Generating Strategies: Business Line Overview
March 31, 2013 Total Deposits: $3.7 billion Average Cost: 0.25% (Peer Average Cost: 0.46%) (1) Category Balance (in millions) Avg. Cost Community Bank $ 360,182 0.32% Healthcare 358,498 0.58% Prepaid Cards (including demand deposit accounts) 1,601,998 0.04% Wealth Management 855,007 0.43% Payment Ac
Slide 15: Deposit-Generating Strategies: Sticky and Long-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: Deposit-Generating Strategies: Growth and Low Cost
Growth in Average Deposits March 31 YTD Average Deposits (dollars in thousands) Cost of Funds (2) Peer Cost of Funds (1) 2013 $3,784,785 0.25% 0.46% 2012 $3,781,858 0.28% 0.64% Change $2,927 -0.03% -0.18% % Change 0% -11% -28% Deposit-Generating Strategies: Growth and Low Cost The Bancorp has experi
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 Approa
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 March 31, 2013 March 31, 2012 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 8.38% 6.78% Tier 1 capital to average assets 8.26% 6.59% Tier 1 capital to total risk-weighted
Slide 20: Current Loan Portfolio and Asset Quality
Current Loan Portfolio and Asset Quality The Bgneerp Overview at 3/31/2013 Category (dollars in thousan ‘Commercial S477600 24% 316242 cam sigs 857 SSSI) ‘Commercial mortgage 673.916 35% 14,059 071% 81 681 - 508) Construction 2asTa 19% 21s 01% 2091, 080 = 4808) Direct nancingteases tied bares 157508
Slide 21: Bancorp's Real Estate Lending Business Targets Well-Positioned Markets
4th Quarter 2012 (1) US NJ DE PA % of Homes with Negative Equity 21.5% 20.0% 16.6% 11.0% 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
Category (dollars in millions) 2010 2011 2012 Q1 2012 Q1 2013 Interest Income $82.7 $88.4 $96.8 $23.9 $25.4 Interest Expense (14.5) (12.0) (11.4) (3.0) (2.7) Net Interest Income 68.2 76.4 85.4 20.9 22.7 Provision for Loan and Lease Losses (19.3) (21.5) (22.4) (5.2) (5.5) Non-Interest Income (2) 19.5
Slide 23: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation 13 242012 42011, 432011 G22011 Q12011 42010 2010 12010 ‘avaiable to common | $7,406 | $5297 | $3501 | sess | sa972 | $3,200 | $2202 | sooo | s2eoe | soos | soe | s1o7 |¢s4.056) Prefered stock a Incometax expense | 44a1 | 1,622 | 1795 | 2150 | 2207 | 1.902 |
Slide 24: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK