The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Investor Presentation (December 2019)
23 slides from The Bancorp's investor presentation, Dec 2, 2019
Slide 1: Business Review & Plan
E BANCORP ESS REVIEW & PLAN The Bancorp"
Slide 2: Forward-looking statements
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 may be identified by the use of forward - looking terminology, including the words “may,” “believe,” “will,”
Slide 3: Key player in the payments and banking ecosystem
5 . 0 B $ IN ASSETS 100 MM PREPAID CARDS IN U.S. DISTRIBUTION 1 # PREPAID CARD ISSUING BANK 1 3 KEY PLAYER IN THE PAYMENTS & BANKING ECOSYSTEM 1 Per Neilsen Ratings and based on Gross Dollar Volume ACROSS OUR BUSINESS LINES, THE BANCORP PARTNERS WITH SOME OF THE WORLD’S MOST SUCCESSFUL COMPANIES >
Slide 4: A unique banking platform
4 Our mission is to deliver world - class banking and technology solutions that meet the unique banking needs of leading non - bank financial services companies. A UNIQUE BANKING PLATFORM DEPOSITS Market - leading payments businesses generate stable deposits that fund our lending business lines LOAN
Slide 5: Established earnings momentum
$13.0 $9.7 $13.1 $8.7 $19.6 $8.3 $17.9 $10.5 $24.2 $15.1 $28.5 $0 $5 $10 $15 $20 $25 $30 $35 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $65M Gain from sale of Safe Harbor IRA PRE - TAX INCOME ($MILLIONS) $ 82.9 2017 $0.39 EPS $1.55 EPS $0.87 EPS 15 % …ROE 1 . 4 % …ROA x Clear strategic vision x Strong growth
Slide 6: Strategic Business Plan
STRATEGIC BUSINESS PLAN The Bancorp"
Slide 7: Strategic Plan: 2020 Guidance
7 STRATEGIC PLAN: 2020 GUIDANCE 1.25 $ 2020 MINIMUM EPS TARGET % 30 INSTITUTIONAL BANKING 3 > 20 % > 15 % COMMERCIAL LENDING 4 > $0.39 $1.55 $0.87 $1.25 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 2017 2018 2019 (YTD) 2020 EARNINGS PER SHARE 2020 (MINIMUM EPS TARGET) THROUGH Q3 2019 2018 2017 $1
Slide 8: Strategic Plan: Expense Management
8 STRATEGIC PLAN: EXPENSE MANAGEMENT 2020 EXPENSE TARGET WE HAVE LEVEL - SET OUR OPERATING PLATFORM & ACTIVELY MANAGED EXPENSES OVER THE LAST 3 YEARS 1 Represents current target and may increase with higher revenue generation x Maintain prudent expense management across platform x Continue to Invest
Slide 9: Strategic Plan: Financial Goals
9 STRATEGIC PLAN: FINANCIAL GOALS KEYS TO ACHIEVING FINANCIAL TARGETS x Establish a new Payments Ecosystem 2.0 x Investments in technology/innovation x Maintain an industry leading compliance & risk function x Expand salesforce and marketing function in key markets x Attract & retain the best talent
Slide 10: Strategic Plan: Key Items
10 STRATEGIC PLAN: KEY ITEMS 1 BUILD PAYMENTS ECOSYSTEM 2.0 Invest heavily in our payments capabilities to further build our market leading offerings and expand our leadership within the payments ecosystem 2.0 CAPTURE MARKET SHARE USING INTEGRATED TECH PLATFORM, TALEA™ Leverage technology in the wea
Slide 11: Strategic Plan: Payments Franchise Overview
11 STRATEGIC PLAN: PAYMENTS FRANCHISE OVERVIEW PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs BUSINESS OVERVIEW: ISSUANCE • Sponsorship of products and services across the payments space • Sponsorship of private label banking (e.g., checking account with a debit car
Slide 12: Strategic Plan: Payments Landscape
12 STRATEGIC PLAN: PAYMENTS LANDSCAPE WE ARE POSITIONING OURSELVES TO CAPITALIZE ON DISRUPTIVE OPPORTUNITIES IN A TRANSFORMING MARKET COMMERCIAL ENTITIES CONSUMERS GIG ECONOMY Wages Earned P2P Gov’t Disbursements Tax Refunds Payments Acquired Bill Payments Achieved PAYMENTS IN PURCHASES Checks Cards
Slide 13: Strategic Plan: Payments Ecosystem 2.0
13 STRATEGIC PLAN: PAYMENTS ECOSYSTEM 2.0 THE WORLD IS CHANGING , and we have responded to create an environment to benefit our partners EVOLUTION IN CUSTOMER DEMAND HAS CREATED AN INFLECTION POINT THAT IS DISRUPTING THE STATUS QUO — NEW WINNERS ARE EMERGING
Slide 14: Payments Ecosystem 2.0: competitive advantage for partners
Compelling innovation by our partners… …expedient adaptation and support by The Bancorp… …so our partners can go to market first... = …creating COMPETITIVE ADVANTAGE for themselves & INNOVATORS in the marketplace. 14 STRATEGIC PLAN: PAYMENTS ECOSYSTEM 2.0 THIS ENVIRONMENT IS OUR PAYMENTS ECOSYSTEM T
Slide 15: Payments Ecosystem 2.0: unified scalable platform
OPTIMIZED SCALABLE PRODUCT SETS Offer products that assist with disruption in the payments market SALESFORCE Expanded and enhanced salesforce to create a better client engagement model INTEGRATED OPERATION & TECHNOLOGY PLATFORMS Integrated operating platform that supports the delivery of payments so
Slide 16: Payments Ecosystem 2.0: Gross Dollar Volume growth
16 STRATEGIC PLAN: PAYMENTS ECOSYSTEM 2.0 ($BILLIONS) $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Q1 Q2 Q3 Q4 2017 2018 2019 1 Per Neilsen Ratings and measured by Gross Dollar Volume 2 Gross Dollar Volume in Q4 2019 is estimated CHALLENGER BANKS GOVERNMENT HEALTHCARE CORPORATE SERVICES GIFT 2 GROSS DOLLA
Slide 17: Payments Ecosystem 2.0: Rapid Funds
17 STRATEGIC PLAN: PAYMENTS ECOSYSTEM 2.0 WE’RE EXPANDING ON OUR EARLY SUCCESS & adding new partners across various use cases 1 Volume shown represents transactions through payment companies which aggregate clients. 2 “Direct” will be comprised of corporations with which The Bancorp contracts direct
Slide 18: Strategic Plan: Institutional Banking
BUSINESS OVERVIEW : • Automated loan platform, Talea , provides industry leading speed and delivery • Securities - backed lines of credit provide fast and flexible liquidity for investment portfolios • Insurance - backed lines of credit provide fast and flexible borrowing against the cash value of l
Slide 19: Commercial Lending: Small Business Lending
BUSINESS OVERVIEW : • Established a distinct platform within the fragmented SBA market – National portfolio lender approach allows pricing and client flexibility – Solid credit performance demonstrated over time – Client segment strategy tailored by market 19 STRATEGIC PLAN: COMMERCIAL LENDING - SMA
Slide 20: Commercial Lending: Commercial Fleet Leasing
20 STRATEGIC PLAN: COMMERCIAL LENDING - COMMERCIAL FLEET LEASING BUSINESS OVERVIEW : • Niche provider of vehicle leasing solutions – Focus on smaller fleets (less that 150 vehicles) – Direct lessor (Bancorp sources opportunities directly and provides value - add services) – Historical acquisitions o
Slide 21: Strategic Plan: Real Estate Capital Markets
21 STRATEGIC PLAN: REAL ESTATE CAPITAL MARKETS REAL ESTATE CAPITAL MARKETS Loans originated for sale into secondary markets BUSINESS OVERVIEW : • Origination focused primarily on multi - family, lodging, industrial, office and retail in primary and secondary markets • Focus on floating rate commerci
Slide 22: The Bancorp Community
22 THE BANCORP COMMUNITY WE ARE BULDING A COMMUNITY TOGETHER TO UNLOCK THE POWER OF OUR ORGANIZATION COLLEAGUES CLIENTS INVESTORS REGULATORS PARTNERS VENDORS BOARD OF DIRECTORS
Slide 23: Risk factors
The risk factors discussed and identified in our Annual Report on Form 10 - K for the year ended December 31, 2018, and in other of our public filings with the SEC include but are not limited to the following: • changing economic and credit market conditions may have significant adverse effects on o