Slide 1: Follow-On Offering of Common Stock
Follow-On Offering of Common Stock NASDAQ: TBBK December 2012
Slide 2: Safe Harbor Regarding Forward-Looking Statements
2 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-looking statements provided by the Private Securities Litigation Reform Act of 1995. Actu
Slide 3: 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: $50.0 Million Over-Allotment Option: 15% Use of Proceeds: General corporate purposes Book-Running Mana
Slide 4: Offering Rationale
4 Offering Rationale: – Increase tangible common equity (TCE/TA¹ to 10.4%) to further enable balance sheet growth and profitability enhancement through continued business line expansion and organic growth opportunities 4 Strategic Goal: – Create and grow a stable, profitable institution with the opt
Slide 5: Experienced senior management team with 12% fully-diluted insider ownership
4 Experienced senior management team with 12% fully-diluted insider ownership¹ and a track record of performance and shareholder returns at previous institutions 4 Unprecedented market opportunity for growth across business lines − The Company has experienced considerable growth through strategic in
Slide 6: Strong Senior Management Team With A Wealth Of Experience
Strong Senior Management Team With A Wealth Of Experience 4 Highly experienced senior management team with an aggregate of over 200 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 sol
Slide 7: The Bancorp is uniquely positioned to take advantage of recent industry trends
4 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 4 Industry trends are from "paper to plastic", "
Slide 8: Net Interest Margin and Non-Interest Income Business Model
Net Interest Margin ASSETS • Above-peer credit quality, well-collateralized loans to businesses and individuals in the Philadelphia/Wilmington market area: § Commercial lending, commercial & residential real estate, construction lending • Well-Capitalized Automobile Fleet Leasing • Wealth Management
Slide 9: Planning For Growth: Consumer Distribution Channel Penetration
Consumer Trends By Percent of U.S. Households From 1980 Through 2009 Planning For Growth: Consumer Distribution Channel Penetration Source: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Jo
Slide 10: Prepaid Gross Dollar Volume And Cardholder Growth
Prepaid Gross Dollar Volume¹ And Cardholder Growth² (1) Gross Dollar Volume 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 of t
Slide 11: Post Provision Income and Revenue Composition
Post Provision Income ($M)¹ Revenue Composition 4 34% revenue growth over the last two years and continued strong growth throughout 2012
Slide 12: Net Interest Income ($M)
Net Interest Income ($M) 4 Solid growth in net interest income despite difficult interest rate environment Compressed Interest Rate Environment
Slide 13: Continued Growth In Non Interest Income
Continued Growth In Non Interest Income ($M)¹ Non Interest Income-Generating Strategies: Growth And Sustainability (2) CAGR calculated 2009 through 2011 4 54% CAGR over the last two years and continued strong growth in 2012 due to growth of both current and new relationships
Slide 14: Non Interest Income / Non Interest Expense: Scalable Business Model
Non Interest Income / Non Interest Expense (%)¹ 4 Non interest income is approximately half of non interest expense, driving improving operating earnings 4 Cost of customer acquisition continues to decline due to strength of affinity relationships Scalable Business Model (1) Excludes gains on invest
Slide 15: Adjusted Operating Earnings: Operating Leverage
Adjusted Operating Earnings ($M) 1,2,3 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 adjus
Slide 16: Loan Composition and Business Line Overview
Loan Composition ($M) 4 TBBK employs a multi-channel growth strategy for loan origination, with the primary driver being its regional commercial banking operations. Primary Asset Generating Strategies: Business Line Overview 4 Automobile Fleet Leasing − Well-collateralized automobile fleet leasing −
Slide 17: Asset Quality Overview
Non-Accrual Loans / Total Loans¹ Loan Loss Reserves / Gross Loans¹ Loan Loss Reserves / Nonaccrual Loans¹ Texas Ratio 1,2 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, 2012; graphs rep
Slide 18: Growth Engine: Where Do Deposits Come From?
Deposit Type Deposit Business Line Concentration 4 Significant growth in prepaid card, healthcare and other deposit business lines support significantly lower average cost of deposits 4 Total deposits of $2.8 billion with an average cost of 0.37% in 3Q 2012 Growth Engine: Where Do Deposits Come From
Slide 19: Deposit-Generating Strategies: Sticky And Long-Term
4 The Bancorp has long-term, often exclusive agreements in place with its private label banking partners 4 We have retained 99% of maturing contracts Deposit-Generating Strategies: Sticky And Long-Term (1) Does not include deposits associated with a third party with which TBBK disengaged in 2012
Slide 20: Planning For Growth With Safety And Soundness
Planning For Growth With Safety And Soundness (1) Assumes net proceeds received in the offering of $47.0 million (based on gross proceeds of $50.0 million and total deal expenses of 6.0%); see non-GAAP reconciliation in Appendix 4 Offering Rationale: – Increase tangible common equity (TCE/TA¹ to 10.
Slide 21: Appendix
Appendix
Slide 22: Capital Ratios And Selected Financial Data
Capital Ratios And Selected Financial Data (1) Excludes FHLB and ACBB stock Source: Company documents and filings
Slide 23: Current Loan Portfolio And Asset Quality Overview
Current Loan Portfolio And Asset Quality Overview
Slide 24: Real Estate Lending Business Targets Attractive, Stable Markets
4 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 Pennsylvania; New Castle County in Delaware; and M
Slide 25: Shareholders' Equity
Shareholders’ Equity Goodwill Intangible Assets Tangible Equity Preferred Equity Tangible Common Equity Total Assets Goodwill Intangible Assets Tangible Assets Tangible Common Equity / Tangible Assets For the Year Ended December 3 ‘or the Quarter Ended Bair2012 130/207 73012072 $245.2 $198.9 $271.5
Slide 26: Post Provision Income Reconciliation
Post Provision Income Reconciliation (1) 2011 includes a one-time gain of $718,000 related to a legal settlement
Slide 27: Adjusted Operating Earnings Reconcilement
Adjusted Operating Earnings Reconcilement