The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — IPO Roadshow (February 2011)
26 slides from The Bancorp's IPO roadshow presentation, Feb 28, 2011
Slide 1: Follow-On Offering of Common Stock
Exhibit 99.1 Follow-On Offering of Common Stock NASDAQ: TBBK February / March 2011
Slide 2: Forward Looking Statements
Forward Looking Statements Safe Harbor Regarding Forward-Looking Statements This presentation may contain forward-looking information about The Bancorp, Inc. (“the Company”) that is intended to be covered by the safe harbor for forward-lookingstatements providedby the Private Securities Litigation R
Slide 3: Offering Summary
Offering Summary Issuer: The Bancorp, Inc. (“The Bancorp” or the "Company") Ticker/Exchange: TBBK / NASDAQ Global Select Market Offering: Follow-on Public Offering Type of Security: Common Stock Transaction Size: Approximately $50 million Over-Allotment Option: 15% Use of Proceeds: General corporate
Slide 4: Planning for Growth with Safety and Soundness
Planning for Growth with Safety and Soundness Offering Rationale: – Increase tangible common equity (TCE/TA¹ to 9.7%) and regulatory capital ratios (TRBC¹ to 16.0%) to further enable balance sheet growth and profitability enhancement through continued business line expansion and organic growth oppor
Slide 5: Unprecedented Market Opportunity for Growth
Unprecedented Market Opportunity for Growth The Bancorp is uniquely positioned to take advantage of recent industry trends, regulatory changes, and competitor dislocation, all of which will enable strong growth for The Bancorp and create a compelling use of capital in the near and longer term Indust
Slide 6: Investment Highlights
Investment Highlights Experienced senior management team with significant inside ownership of more than 13% and a track record of performance and shareholder returns at previous institutions The Company has experienced considerable growth through strategic initiatives and targeted acquisitions and i
Slide 7: Business Model: A Distinct Business Strategy
Business Model: A Distinct Business Strategy A commercial bank founded in 2000 headquartered in Wilmington, Delaware with approximately $2.4 billion in assets, $1.6 billion in outstanding loan balances and $2.0 billion of deposits at 12/31/2010 Employs a primarily branchless deposit strategy that de
Slide 8: Track Record of Significant Growth Since Inception
Track Record of Significant Growth Since Inception Since 2005, The Bancorp has grown total assets at a compound annual growth rate of over 20% 7
Slide 9: Growth Engine: Strong Growth in Deposit Business Lines at Low Cost
Growth Engine: Strong Growth in Deposit Business Lines at Low Cost The Bancorp has leveraged its private label partnerships to grow core deposits meaningfully in recent periods and expects that business to continue to grow through increased market penetration December 31, 2005 December 31, 2010 CDs
Slide 10: Growth Engine: Strong Growth in Deposit Business Lines at Low Cost
Growth Engine: Strong Growth in Deposit Business Lines at Low Cost Significant growth in stored value, health care and other deposit business lines support decreasing average cost of deposits December 31, 2005 December 31, 2010 Merchant 1031 Exchange, 1031 Processing, 0.0% Merchant Exchange Wealth 1
Slide 11: 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 We have retained 99% of maturing contracts Private Label Agreements by Remaining Contractual Term 3<>5 years 5% < 1 year 46% 1<>3 years 49% 10
Slide 12: Non-Interest Income-Generating Strategies: Growth and Sustainability
Non-Interest Income-Generating Strategies: Growth and Sustainability Continued growth in non-interest income(1) from all business segments Dollars in millions $20.0 $18.0 Year-over-Year Percentage Growth $16.0 Stored value income: 38% $14.0 Leasing income: 133% $12.0 Merchant income: 65% $10.0 Depos
Slide 13: Non-Interest Income-Generating Strategies: Growth and Sustainability
Non-Interest Income-Generating Strategies: Growth and Sustainability Continued growth in non-interest income (1) relative to non-interest expense Dollars in millions $70.0 Non-interest Income Non-interest Income / Non-interest Expense Non-interest Expense $60.0 2009: 23% $50.0 2010: 32% $40.0 $30.0
Slide 14: Primary Asset-Generating Strategies: Business Line Overview
Primary Asset-Generating Strategies: Business Line Overview As with funding, The Bancorp employs a multi-channel growth strategy for loan origination, with the primary driver being its regional commercial banking operations Community Bank – Offers traditional community banking products and services
Slide 15: Well-Positioned in Attractive, Stable Markets
Well-Positioned in Attractive, Stable Markets Commercial lending is substantially all in greater Philadelphia/Wilmington metropolitan area – Consists of the 12 counties surrounding Philadelphia and Wilmington, including Philadelphia, Delaware, Chester, Montgomery, Bucks and Lehigh Counties in Pennsy
Slide 16: Historical Loan Portfolio Overview
Historical Loan Portfolio Overview Robust growth through strong community relationships, while maintaining conservative underwriting standards (Dollar Values in Thousands) 2005 2006 2007 2008 2009 2010 CAGR Commercial Mortgage 190,153 327,639 369,124 488,986 569,434 580,780 25.0% Commercial & Indust
Slide 17: Asset Quality Review
Asset Quality Review Non-accrual Loans / Total Loans(1) Reserves / Gross Loans(1) 2.50% 1.60% 1.50% TBBK 2.00% TBBK 1.40% Regional Peers Regional Peers 1.30% 1.50% 1.20% 1.10% 1.00% 1.00% 0.90% 0.50% 0.80% 0.70% 0.00% 0.60% 2007 2008 2009 Mar-10 Jun-10 Sep-10 Dec-10 2007 2008 2009 Mar-10 Jun-10 Sep-
Slide 18: Investment Highlights
Investment Highlights Experienced senior management team with significant inside ownership of more than 13% and a track record of performance and shareholder returns at previous institutions The Company has experienced considerable growth through strategic initiatives and targeted acquisitions and i
Slide 19: Appendix
* * * * * Appendix
Slide 20: Strong Senior Management Team with a Wealth of Experience
Strong Senior Management Team with a Wealth of Experience Highly experienced senior management team with an aggregate of over 140 years of experience providing middle market banking services – Management has a significant history together as most are former executives of a prior bank which was sold
Slide 21: Historical Financial Performance
Historical Financial Performance For the Year Ended For the Quarter Ended 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 6/30/2010 9/30/2010 12/31/2010 Balance Sheet ($000) Total Assets 917,471 1,334,838 1,568,382 1,792,375 2,043,534 2,395,723 2,123,870 2,659,676 2,395,723 Total N
Slide 22: Current Loan Portfolio and Asset Quality Overview at 12/31/2010
Current Loan Portfolio and Asset Quality Overview at 12/31/2010 Nonaccrual 30-89 Days 90+ Days Quarter Balance OREO % of Total Loans Nonaccrual/ Delinquent Delinquent Charge-offs Category (in (in Loans (in Total Loans (in (in (net in thousands) thousands) thousands) thousands) thousands) thousands)
Slide 23: Asset Quality Trends
Asset Quality Trends 30 - 89 Days 90+ Days Delinquent Non-Accrual Total 90+ PD, (Dollar Values in Thousands) Past Due Past Due Loans Loans OREO NA Loans & OREO December 31, 2008 23,883 4,054 27,937 8,729 4,600 17,383 December 31, 2009 9,463 12,995 22,458 12,270 459 25,724 December 31, 2010 2,605 2,2
Slide 24: Deposit-Generating Strategies: Grow Market Share in Expanding Markets
Deposit-Generating Strategies: Grow Market Share in Expanding Markets Healthcare Affinity Relationships Prepaid Card Affinity Relationships As of January 10, 2010 we were the 6th largest financial We are a market leader in a rapidly growing market for open loop institution in the Health Savings Acco
Slide 25: Deposit-Gathering Strategies: Grow Market Share in Expanding Markets
Deposit-Gathering Strategies: Grow Market Share in Expanding Markets Wealth Management Affinity Relationships Merchant Processing Relationships Wealth management deposit and lending services to wealth Top 20 Acquiring Bank for credit and debit card processing(1) management platforms and firms – incl
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Dollars in thousands For the Year Ended December 31, For the Quarter Ended 2005 2006 2007 2008 2009 2010 6/30/2010 9/30/2010 12/31/2010 Shareholders' Equity $134,947 $148,908 $176,259 $180,403 $245,203 $198,906 $203,778 $201,432 $198,906 Goodwill (3,951) (3,951) (50,173) 0 0