Slide 1: Investor Presentation Fourth Quarter, 2013
Investor Presentation Fourth Quarter, 2013
Slide 2: Safe Harbor Statement / 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 may be identified by the use
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 U.S. Households
The Bancorp, Inc. Planning for Growth Consumer Distribution Channel Penetration Percent of U.S. Households, 1980-2012Sources: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Journal, AlixPar
Slide 5: Revenue by Business Line
Securities Portfolio Primarily highly rated government obligations • Interest Income Includes loans to franchisees ; 75% guaranteed by U.S. government • Interest Income Commercial Loan Sales • Non-interest Income • Interest Income • Interest Income • Non-interest Income Community Bank Traditional Co
Slide 6: Revenue Composition: Post Provision Income
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. For reconcilia
Slide 7: Prepaid Gross Dollar Volume and Cardholder Growth
(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 of year-end 2010 through 2013 (3) Compound annual growth rate i
Slide 8: Non-Interest Income-Generating Strategies: Growth and Sustainability
Non-Interest Income-Generating Strategies: Growth and Sustainability (1) Compound annual growth rate is calculated for the years 2010 through 2013 (2) Excludes gains on investment securities 40% Increase $ (2)
Slide 9: Scalable Business Model: Non-Interest Income/Non-Interest Expense
Scalable Business Model: Non-Interest Income/Non-Interest Expense (1) (1) Excludes gains on investment securities and nonrecurring expenses; 2011 includes a one-time gain of $718,000 related to a legal settlement (2) Compound annual growth rate is calculated for the years 2010 through 2013
Slide 10: Compressed Interest Rate Environment: Net Interest Income Generators
(1) Compound annual growth rate is calculated for the years 2010 through 2013 (2) Other is comprised of net interest income produced by the following areas: Investment Securities, Automobile Fleet Leasing, Government Guaranteed Lending, Institutional Banking, and CMBS. (2) $ Compressed Interest Rate
Slide 11: Operating Leverage: Adjusted Operating Earnings
Operating Leverage: Adjusted Operating Earnings (1) Compound annual growth rate is calculated for the fourth quarters of 2010 through 2013 $
Slide 12: Primary Asset-Generating Strategies: Business Line Overview
Category Q4 2013 Balance Q4 2012 Balance Q4 2013 Avg. Yield (in thousands) Investment Securities $1,350,322 $763,244 2.41% Institutional Banking 306,710 252,475 2.67% Automobile Fleet Leasing 175,611 156,097 6.85% Government Guaranteed Lending 148,257 90,795 4.58% Community Bank 1,342,575 1,403,487
Slide 13: Asset Quality Overview
Asset Quality Overview (1) Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 + days past due + OREO)/(Loss Reserves + Tangible Equity). TBBK computed with consolidated capital. Sources: SNL Financial; FDIC Call Reports
Slide 14: Primary Deposit-Generating Strategies: Business Line Overview
Total Deposits: $4.3 billion Average Cost: 0.25% (Aggregate US Banks Average Cost: 0.42%) (1) (in millions) Prepaid Cards $1,738,009 0.02% Institutional Banking 1,031,582 0.39% Payment Acceptance 431,696 0.66% Healthcare 397,783 0.54% Community Bank 372,564 0.22% 1031 Exchange 301,355 0.21% Primary
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. (1) Percentages shown reflect data as of the end of the fourth quarter of 2013 (2) Contracts associated with 100% of deposits in this segment ar
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 Approa
Slide 17: Appendix
Appendix
Slide 18: Selected Capital and Asset Quality Ratios
As of or for the three months ended As of or for the three months ended December 31, 2013 December 31, 2012 (dollars in thousands) (dollars in thousands) Selected Capital and Asset Quality Ratios: Equity/assets 7.62% 9.10% Tier 1 capital to average assets 8.55% 10.00% Tier 1 capital to total risk-we
Slide 19: Current Loan Portfolio and Asset Quality Overview at 12/31/2013
Category (dollars in thousands) Balance % of Total Loans Nonaccrual Loans Nonaccrual/ Total Loans OREO 30-89 Days Delinquent 90+ Days Delinquent Q4 2013 Quarterly Charge-offs (net) Commercial $450,113 23% $29,651 1.52% $7,370 $ - $ - $ (2,796) Commercial mortgage 625,810 32% 5,861 0.30% 9,436 6,997
Slide 20: Post Provision Income Reconciliation
Category (dollars in millions) 2010 2011 (1) 2012 2013 Q4 2012 Q4 2013 Interest Income $82.7 $88.4 $96.8 $106.6 $24.7 $28.2 Interest Expense (14.5) (12.0) (11.4) (10.8) (2.6) (2.8) Net Interest Income 68.2 76.4 85.4 95.8 22.1 25.4 Provision for Loan and Lease Losses (19.3) (21.5) (22.4) (29.5) (7.4)
Slide 21: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation (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 e
Slide 22: www.thebancorp.com
www.thebancorp.com