The Bancorp, Inc. · NASDAQ:TBBK
The Bancorp — Bancorp — Sterne Agee Conference February 2012
22 slides from The Bancorp's conference presentation, Feb 10, 2012
Slide 1: The Bancorp, Inc. Investor Presentation, Sterne Agee Conference February 2012
The Bancorp, Inc. • Investor Presentation • Sterne Agee Conference February 2012 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 m
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 Appr
Slide 4: Planning for Growth: Consumer Distribution Channel Penetration
The Bancorp, Inc. - Planning for Growth Consumer Distribution Channel Penetration Percent of U.S. Households, 1980-2009 Source: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Journal, Merca
Slide 5: Business Model: A Distinct Business Strategy
Assets Deposits Business Model: A Distinct Business Strategy
Slide 6: Revenue Composition
Revenue Composition (1) Post provision net interest income and non-interest income excluding securities gains and losses. $ 71% 29%
Slide 7: Continued growth in non interest income
Continued growth in non interest income (1) Non-Interest Income-Generating Strategies: Growth and Sustainability $ (1) Excludes gains on investment securities. (2) Excluding a one time legal settlement of $718,000 for the year ended 2011 the percentage increase would have been 103.2%. (2)
Slide 8: Prepaid Gross Dollar Volume and Cardholder Growth
Prepaid Gross Dollar Volume (1) and Cardholder Growth Contracting Date $ (1) Gross Dollar Volume is the total amount spent on all cards outstanding within a given period.
Slide 9: Net Interest Income
Net Interest Income Compressed Interest Rate Environment 9.5% CAGR $
Slide 10: Primary Asset-Generating Strategies: Business Line Overview
Category (in thousands) Avg. Yield Community Bank $ 1,418,121 4.37% Government Guaranteed Lending 32,080 5.08% Wealth Management 164,945 2.93% Leasing Portfolio 129,682 7.37% Investment Securities 471,336 3.54% Primary Asset-Generating Strategies: Business Line Overview • Community Bank § Offers tra
Slide 11: Asset Quality Overview
Non-Accrual Loans/Total Loans (1) Asset Quality Overview (1) Regional peers include publicly traded Mid-Atlantic commercial banks with assets between $1 billion and $4 billion as of September 30, 2011; graphs represent median values. (2) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans
Slide 12: Deposit-Generating Strategies: Growth and Low Cost
Growth in Average Deposits YTD Average Deposits (dollars in thousands) Cost of Funds Peer Cost of Funds (1) 2011 $ 2,562,130 0.41% 0.86% 2010 $ 2,014,203 0.61% 1.16% Change $ 547,927 -0.20% -0.30% % Change 27% -33% -26% Deposit-Generating Strategies: Growth and Low Cost The Bancorp has experienced s
Slide 13: Private Label Agreements by Remaining Contractual Term
Private Label Agreements by Remaining Contractual Term (1) 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. (1) Calculation based upon amount of depo
Slide 14: Growth Engine: Where Do Deposits Come From?
December 31, 2011 Category Balance (in millions) Avg. Cost Community Bank $ 356 0.36% Healthcare 390 1.14% Prepaid Cards (including demand deposit accounts) 1,144 0.05% Wealth Management 524 0.55% Merchant Processing 150 0.51% 1031 Exchange 119 0.72% Total Deposits: $2.7 billion Average Cost: 0.41%
Slide 15: Operating Leverage
Operating Leverage (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 adjusted operating earnings to measure the c
Slide 16: 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 Appr
Slide 17: Appendix
APPENDIX NASDAQ: TBBK
Slide 18: Business Model: A Distinct Business Strategy
DEPOSITS • Private-Label Banking: stable, lower-cost core deposits § Healthcare § Merchant Processing § Prepaid Cards § Wealth Management • Community Bank Net Interest Margin INCOME Non-Interest Income: Stored value, leasing and merchant processing ASSETS • Community Bank § Above-peer credit quality
Slide 19: Selected Capital and Asset Quality Ratios
As of or for the three months ended As of or for the three months ended December 31, 2011 December 31, 2010 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 9.02% 8.30% Tier 1 capital to average assets 8.69% 8.37% Tier 1 capital to total risk-wei
Slide 20: Current Loan Portfolio and Asset Quality Overview at 12/31/2011
Category (dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Q4 2011 Quarterly Charge-offs (net) Commercial $ 450,411 26% $6,450 0.37% $ 2,855 $242 $ 717 $ (645) Commercial mortgage 609,487 35% 3,672 0.21% - 2,041 1,
Slide 21: Real Estate Lending Targets Well-Positioned, Stable Markets
Home Prices Q3-2008 to Q3-2011 (1) Home Prices Q3-2010 to Q3-2011 (1) United States -13.4% -3.9% Philadelphia, PA -10.01% -3.9% 3 rd Quarter 2011 (2) US NJ DE PA % of Homes with Negative Equity 22.1% 16.3% 14.2% 7.9% Bancorp’s Real Estate Lending Business Targets Well-Positioned Attractive, Stable M
Slide 22: www.thebancorp.com
www.thebancorp.com NASDAQ: TBBK