The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Q2 2025 Earnings Presentation
31 slides from The Bancorp's earnings presentation, Jul 25, 2025
Slide 1: The Bancorp Investor Presentation July 2025
THE BANCORP INVESTOR PRESENTATION JULY 2025
Slide 2: Disclosures
2 DISCLOSURES Statements in this presentation regarding The “Management’s Discussion and Analysis of Financial This presentation includes market, industry and Bancorp, Inc.’s (“The Bancorp”) business, that are Condition and Results of Operations” sections of the economic data that was obtained from
Slide 3: Delivering Strong Sustained Financial Performance
3 FINANCIAL PERFORMANCE DELIVERING STRONG SUSTAINED FINANCIAL PERFORMANCE PERFORMANCE The Bancorp is continuing to deliver high quality KEY FINANCIAL METRICS 2022 2023 2024 Q2 YTD 2025 financial performance ROE 19% 26% 27% 29% Capitalized on interest PROFITABILITY rate environment ROA 1.8% 2.6% 2.7%
Slide 4: Earnings Guidance: Delivering Strong Financial Performance
4 EARNINGS GUIDANCE DELIVERING STRONG FINANCIAL PERFORMANCE GUIDANCE EARNINGS PER SHARE $7.00 PATHWAYS TO ACHIEVING $7.00 $7.00 RUN RATE We are maintaining our 20251 guidance of $5.25 $6.00 $5.25 Fintech Revenue Growth across per share and establishing a goal of $1.75 per share by $5.00 $4.29 new pa
Slide 5: The Bancorp Core Business Model
5 THE BANCORP CORE BUSINESS MODEL FINTECH THE BANCORP SOLUTIONS GENERATES BUSINESS MODEL NON-INTEREST INCOME AND ATTRACTS STABLE, LOWER- COST DEPOSITS DEPLOYED INTO ASSETS IN SPECIALIZED MARKETS
Slide 6: Fintech Leadership
6 FINTECH PARTNER BANK FINTECH LEADERSHIP FINTECH PROGRAM MANAGERS PAYMENT NETWORKS ECOSYSTEM CLIENT FACING platforms deliver highly scalable banking solutions to customers with emphasis on FACILITATE payments between parties via the card networks. customer acquisition and technology. Enabling finte
Slide 7: Specialized Lending Business Lines
7 SPECIALIZED LENDING SPECIALIZED LENDING LENDING BUSINESS LINES BUSINESSES CORE LENDING BUSINESSES STRATEGIC Core lending businesses AS OF Q2 2025 OUTLOOK are comprised of our Real Estate Bridge Lending $2.2B specialized lending Emphasize core business lines and add activities Institutional Banking
Slide 8: Our 2030 Strategy
8 2030 STRATEGY OUR 2030 STRATEGY OVERVIEW EVALUATION Our new 2030 strategy FRAMEWORK encompasses previous + Build on our strengths goals outlined in Vison 700 while adding new fintech + Create new opportunities opportunities How can we build on our + Sustain revenue growth leading fintech partner b
Slide 9: APEX: 2030 Strategy and Long-Term Financial Targets
2030 STRATEGY APEX 2 0 3 0 Our 2030 plan comprises new opportunities identified across various strategic pathways: 1 2 3 PROVIDE NEW MONETIZE CORE SUPPORT FINTECH FINTECH SERVICES COMPETENCIES LENDING • Niche program management • Regulatory services • Diversified holdings across • Embedded Finance •
Slide 10: Fintech Solutions: Deposit & Fee Generation
FINTECH SOLUTIONS: DEPOSIT & FEE GENERATION
Slide 11: Enabling Leading Fintech Companies
11 FINTECH SOLUTIONS: FEE & DEPOSIT GENERATING ACTIVITIES ENABLING LEADING FINTECH COMPANIES 26% % TOTAL BANK REVENUE DEBIT PROGRAM MANAGERS Q2 YTD 20251 (CHALLENGER BANKS) #6 Debit Issuing Bank 18% 20242 • Provides physical and virtual card issuing • Maintains deposit balances on cards PREPAID/STOR
Slide 12: Scalable Platform
12 FINTECH SOLUTIONS: ESTABLISHED OPERATING PLATFORM SCALABLE PLATFORM INNOVATIVE SOLUTIONS ESTABLISHED OPERATING REGULATORY OTHER PAYMENTS OFFERINGS Our platform supports a PLATFORM EXPERTISE wide variety of strategic fintech partners through our • Infrastructure in place to • Financial Crimes Risk
Slide 13: Deposit Growth from Fintech Business
13 FINTECH SOLUTIONS: STABLE, LOWER-COST DEPOSIT GENERATOR DEPOSIT GROWTH FROM FINTECH BUSINESS AVERAGE DEPOSITS BY PERIOD ($ BILLIONS) $9.0 HIGHLIGHTS Other $8.1 (Includes time deposits and $8.0 other legacy deposit programs) $6.9 • Stable, lower-cost $7.0 $6.3 $6.4 deposit base anchored $6.0 $5.7
Slide 14: Stable Deposits & Significant Balance Sheet Liquidity
14 FINTECH SOLUTIONS: STABLE, LOWER-COST DEPOSIT GENERATOR STABLE DEPOSITS & SIGNIFICANT BALANCE SHEET LIQUIDITY ESTIMATED INSURED VS OTHER UNINSURED SUMMARY OF CREDIT LINES AVAILABLE STRONG DEPOSITS POSITIONING June 30, 2025 June 30, 2025 Our deposit base is Insured 94% (Dollars in millions) primar
Slide 15: Loans, Leases & Supporting Collateral
LOANS, LEASES & SUPPORTING COLLATERAL
Slide 16: Key Considerations for Lending Growth
16 LOANS & LEASES KEY CONSIDERATIONS FOR LENDING GROWTH STRATEGIC OUTLOOK OPTIMIZE NET Optimize balance sheet and MANAGE INTEREST MARGIN continue to capitalize on CREDIT RISK AND MONITOR fintech lending TO DESIRED LEVELS INTEREST RATE opportunities SENSITIVITY Building an asset mix that drives earni
Slide 17: Loan Portfolio Overview
17 LOANS & LEASES LOAN LOAN PORTFOLIO OVERVIEW COLLATERAL VALUES BUSINESS LINE BALANCE SHEET CATEGORY 06/30/2025 PRINCIPAL BALANCE ($ MILLIONS) % OF TOTAL PORTFOLIO SUPPORTED BY: Multifamily - commercial real estate (A) $ 2,209 33% Real Estate Bridge Lending Hospitality - commercial real estate 19 <
Slide 18: Commercial Real Estate Bridge Lending
18 LOANS & LEASES: REAL ESTATE BRIDGE LENDING COMMERCIAL REAL ESTATE BRIDGE LENDING PORTFOLIO Real Estate Bridge Lending ATTRIBUTES COMMERCIAL REAL ESTATE LOANS BY TYPE ($MILLIONS) BUSINESS OVERVIEW: 06/30/2025 • Vast majority of loans are • Resumed floating rate bridge lending apartment buildings i
Slide 19: Institutional Banking $1.9B
19 LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING $ 1.9B Q2 2025 PORTFOLIO SIZE 6.2 LENDING AND BANKING SERVICES FOR WEALTH MANAGERS BUSINESS OVERVIEW: STRATEGIC OUTLOOK: % • Automated loan application platform, Talea, provides • Regain momentum across SBLOC, IBLOC and Advisor industry-
Slide 20: Securities & Cash Value Life Insurance Lending Portfolio
20 PORTFOLIO LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO PRIMARILY COMPRISED OF SECURITIES & ATTRIBUTES CASH VALUE LIFE INSURANCE LENDING SECURITIES-BACKED LINES OF CREDIT • Nominal historical credit losses • Underwriting standards of generally 50% to equities and INSTITUTIONAL BANKING LOAN
Slide 21: Small Business Lending $1,034M
21 LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING $1,034M Q2 2025 PORTFOLIO SIZE SBA AND OTHER SMALL BUSINESS LENDING BUSINESS OVERVIEW: • Established a distinct platform within the fragmented STRATEGIC OUTLOOK: • Continue delivering growth within existing small business lending platf
Slide 22: Small Business Lending Portfolio
22 LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE1 ($MILLIONS) SMALL BUSINESS LOANS BY STATE1 ($MILLIONS) PORTFOLIO 06/30/2025 06/30/2025 SBL SBL ATTRIBUTES COMMERCIAL SBL SBL NON-REAL COMMERCIAL SBL SBL NON-REAL TYPE MORTGAGE CONSTRUCTI
Slide 23: Commercial Fleet Leasing $698M
23 LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING FLEET LEASING SOLUTIONS $698M Q2 2025 PORTFOLIO SIZE BUSINESS OVERVIEW: STRATEGIC OUTLOOK: • Niche provider of vehicle leasing solutions • Continue enhancing platform and growing balances − Focus on smaller fleets (less than 150 ve
Slide 24: Commercial Fleet Leasing Portfolio
24 LOANS & LEASES: COMMERCIAL FLEET LEASING PORTFOLIO COMMERCIAL FLEET LEASING DIRECT LEASE FINANCING BY STATE ($MILLIONS) PORTFOLIO DIRECT LEASE FINANCING BY TYPE ($MILLIONS) 06/30/2025 06/30/2025 TYPE BALANCE TOTAL STATE Florida $ BALANCE 121 TOTAL 17% ATTRIBUTES Construction $ 127 18% Government
Slide 25: Financial Review
FINANCIAL REVIEW
Slide 26: Revenue Growth Has Exceeded Expense Growth Since 2022
26 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE GROWTH HAS EXCEEDED EXPENSE GROWTH SINCE 2022 REVENUE1 $ Millions NON-INTEREST EXPENSE $ Millions $550 $250 $500 $225 HIGHLIGHTS $450 $200 $400 $175 • Revenue increases $350 $150 reflected normalized $300 interest rate environment $125 $250 and
Slide 27: Allowance for Credit Losses Reflects Charge-Off History
27 FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES PRIMARILY REFLECTS OUR CHARGE-OFF HISTORY ALLOWANCE FOR CREDIT LOSSES ($ MILLIONS) $60 $55 HIGHLIGHTS $50 $45 Consumer Fintech $40 • Increase in allowance $35 driven by Consumer Real Estate Bridge $30 Lending Fintech is entirely offs
Slide 28: Capital Position
28 FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION CAPITAL POSITION THE BANCORP BANK, N.A. CAPITAL RATIOS HIGHLIGHTS 20% 18% • Completed $75M Total RBC Ratio common stock 16% Tier 1 RBC Ratio repurchase through Q2 14% • Planned common stock 12% repurchase2 of $300M for 10% Tier 1 Leverage Ratio remain
Slide 29: Historical Performance and Long-Term Targets
29 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY HISTORICAL PERFORMANCE AND LONG-TERM TARGETS PERFORMANCE Q2 YTD LONG-TERM METRICS 2021 2022 2023 2024 2025 TARGETS ROE 17.9% 19.3% 25.6% 27.2% 28.6% >40% ROA 1.68% 1.81% 2.59% 2.71% 2.56% >4.0% EPS $1.88 $2.27 $3.49 $4.29 $2.46 The Bancorp Bank, N.A. 1
Slide 30: Appendix
APPENDIX
Slide 31: Revenue & Efficiency Ratio Calculations
31 APPENDIX REVENUE & EFFICIENCY RATIO CALCULATIONS ($ millions) The Bancorp 2021 Q2 YTD Q2 YTD 2022 2023 2024 2024 2025 Net interest income $ 210,876 $ 248,841 $ 354,052 $ 376,241 $ 188,213 $ 189,235 Non-interest income 104,749 105,683 112,094 157,514 60,104 167,385 Consumer fintech credit enhancem