8-K
Bancorp, Inc. (TBBK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934
Date of Report (Date of earliest event reported):April 24, 2025
The Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Commission File Number: 000-51018
| Delaware | 23-3016517 |
|---|---|
| (State or other jurisdiction of | (IRS Employer |
| incorporation) | Identification No.) |
409 Silverside Road
Wilmington, DE 19809
(Address of principal executive offices, includingzip code)
302-385-5000
(Registrant’s telephone number, includingarea code)
(Former name or former address, if changed sincelast report)
Check the appropriate box below if the Form 8-K filing is intendedto simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[_] Written communications pursuant to Rule 425 under the SecuritiesAct (17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act(17 CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) underthe Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) underthe Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br> <br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.00 per share | TBBK | Nasdaq Global Select |
Indicate by check mark whether the registrant is an emerging growthcompany as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
[_] Emerging growth company
If an emerging growth company, indicate by check mark if the registranthas elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuantto Section 13(a) of the Exchange Act. [ ]
| Item 2.02. | Results of Operations and Financial Condition |
|---|
On April 24, 2025, The Bancorp, Inc. (the “Company”) issued a press release regarding its earnings for the three months ended March 31, 2025. A copy of this press release is furnished with this report as Exhibit 99.1.
| Item 7.01. | Regulation FD Disclosure |
|---|
The Company hereby furnishes the information set forth in the presentation attached hereto as Exhibit 99.2, which is incorporated herein by reference.
The information being furnished pursuant to Item 2.02 and Item 7.01 in this Current Report, including the exhibits hereto, is to be considered “furnished” pursuant to Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
| Item 9.01. | Financial Statements and Exhibits |
|---|
| (d) Exhibits | ||
|---|---|---|
| 99.1 | Press Release | |
| 99.2 | Investor Presentation | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: April 24, 2025 | The Bancorp, Inc. | |
|---|---|---|
| By: | /s/ Erika Caesar | |
| Name: | Erika Caesar | |
| Title: | EVP, General Counsel and Corporate Secretary |
Exhibit 99.1
TheBancorp, Inc. Reports First Quarter Financial Results
Wilmington, DE – April 24, 2025 – The Bancorp, Inc. (“The Bancorp” or the “Company” or “we” or “our”) (NASDAQ: TBBK), a financial holding company, today reported its financial results for the first quarter of 2025.
Highlights
| · | The Bancorp reported net income of $57.2 million, or $1.19 per diluted share (“EPS”), for the quarter ended March<br>31, 2025, compared to net income of $56.4 million, or $1.06 per diluted share, for the quarter ended March 31, 2024, or an EPS increase<br>of 12%. While net income increased 1% between these periods, outstanding shares were reduced as a result of increased repurchases that<br>occurred during 2024. |
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| · | Return on assets and return on equity for the quarter ended March 31, 2025, amounted to 2.5% and 29%, respectively, compared to 3.0%<br>and 28%, respectively, for the quarter ended March 31, 2024 (all percentages “annualized”). |
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| · | Net interest income decreased 3% to $91.7 million for the quarter ended March 31, 2025, compared to $94.4 million for the quarter<br>ended March 31, 2024. Certain loan fees on consumer fintech loans are recorded as non-interest income. Such non-interest income amounted<br>to $3.6 million for the quarter ended March 31, 2025 and $0 for the quarter ended March 31, 2024. |
| --- | --- |
| · | Net interest margin amounted to 4.07% for the quarter ended March 31, 2025, compared to 5.15% for the quarter ended March 31, 2024,<br>and 4.55% for the quarter ended December 31, 2024. |
| --- | --- |
| · | Loans, net of deferred fees and costs were $6.38 billion at March 31, 2025, compared to $5.46 billion at March 31, 2024 and $6.11<br>billion at December 31, 2024. Those changes reflected an increase of 4% quarter over linked quarter and an increase of 17% year over year. |
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| · | Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $6.71 billion,<br>or 18%, to $44.65 billion for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. The increase reflected continued<br>organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH, and other<br>payment fees increased 13% to $30.8 million for the first quarter of 2025 compared to the first quarter of 2024. Consumer credit fintech<br>fees amounted to $3.6 million for the first quarter 2025. |
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| · | Small business loans (“SBLs”), including those held at fair value, amounted to $1.01 billion at March 31, 2025, or<br>12% higher year over year, and 3% higher quarter over linked quarter, excluding the impact of loans with related secured borrowings. |
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| · | Direct lease financing balances increased 1% year over year to $710.0 million at March 31, 2025, and increased 1% from December 31,<br>2024. |
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| · | Real estate bridge loans of $2.21 billion increased 5% compared to a $2.11 billion balance at December 31, 2024, and increased 5%<br>compared to the March 31, 2024 balance of $2.10 billion. These real estate bridge loans consist entirely of rehabilitation loans for apartment<br>buildings. |
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| · | Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”), and investment advisor<br>financing loans collectively increased 3% year over year and increased less than 1% quarter over linked quarter to $1.84 billion<br>at March 31, 2025. |
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| · | The average interest rate on $8.44 billion of average deposits and interest-bearing liabilities during the first quarter of 2025<br>was 2.28%. Average deposits of $8.31 billion for the first quarter of 2025 increased $1.81 billion, or 28% over first quarter 2024. |
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| · | As of March 31, 2025, the Company’s Tier 1 capital to average assets (leverage), Tier 1 capital to risk-weighted assets,<br>total capital to risk-weighted assets and common equity Tier 1 to risk-weighted assets ratios were 8.93%, 13.94%, 14.86% and 13.94%, respectively,<br>compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp Bank, National Association also remains well<br>capitalized under banking regulations. |
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| · | Book value per common share at March 31, 2025, was $17.66 compared to $15.63 per common share at March<br>31, 2024, an increase of 13%. |
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| --- | | · | The Bancorp repurchased 684,445 shares of its common stock at an average cost of $54.79 per share during the quarter<br>ended March 31, 2025. As a result of share repurchases, outstanding shares at March 31, 2025 amounted to 47.0 million, compared to 52.3<br>million shares at March 31, 2024, or a reduction of 10%. | | --- | --- | | · | The Bancorp emphasizes safety and soundness, and its balance sheet has a risk profile enhanced by the special nature of the collateral<br>supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets<br>below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have<br>experienced various economic stresses. | | --- | --- | | · | The vast majority of The Bancorp’s funding is comprised of FDIC-insured and/or small balance accounts, which adjust to only<br>a portion of changes in rates. The Company also has lines of credit with U.S. government sponsored agencies totaling approximately $3.09<br>billion as of March 31, 2025, as well as access to other forms of liquidity. | | --- | --- | | · | In its real estate bridge loans (“REBL”) portfolio, the Company has minimal exposure to non-multifamily commercial real<br>estate such as office buildings, and instead has a portfolio largely comprised of rehabilitation bridge loans for apartment buildings.<br>These loans generally have three-year terms with two one-year extensions to allow for the rehabilitation work to be completed and rentals<br>stabilized for an extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders.<br>The REBL portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental<br>rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While<br>the macro-economic environment has challenged the multifamily bridge space, the stability of the Company’s REBL portfolio is evidenced<br>by the estimated values of the underlying collateral. The Company’s $2.2 billion REBL portfolio at March 31, 2025, has a weighted<br>average origination date “as is” loan-to-value ratio of 70%, based on third-party appraisals. Further, the weighted average<br>origination date “as stabilized” LTV, which measures the estimated value of the apartments after the rehabilitation is complete<br>may provide even greater protection. | | --- | --- | | · | As part of the underwriting process, The Bancorp reviews prospective borrowers’ previous rehabilitation experience in addition<br>to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance<br>metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy<br>and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news searches,<br>lien searches, visitations by bank personnel and/or designated engineers, and other information sources. | | --- | --- | | · | Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early<br>identification of potential issues, and expedited action to address on a timely basis. | | --- | --- | | · | Operations and ongoing loan evaluation are overseen by multiple levels of management, in addition to the REBL team’s experienced<br>professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes<br>a separate loan committee specific to REBL, which is comprised of seasoned and experienced lending professionals who do not directly report<br>to anyone on the REBL team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate<br>potential losses under the current expected credit losses methodology (“CECL”), all of which similarly do not report to anyone<br>on the REBL team. | | --- | --- | | · | SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of<br>SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50%-60% LTVs. | | --- | --- | | · | Additional details regarding our loan portfolios are included in the related tables in this press release, as is the summarization<br>of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s<br>risk profile inherent in its loan portfolios, funding and earnings levels, may present opportunities to further increase stockholder value,<br>while still prudently maintaining capital levels. | | --- | --- | | · | In the second quarter of 2024, the Company purchased approximately $900 million of fixed rate government sponsored entity backed commercial<br>and residential mortgage securities of varying maturities, with an approximate 5.11% weighted average yield, and estimated weighted average<br>lives of eight years, to reduce its exposure to lower levels of net interest income. Such purchases would also reduce the additional net<br>interest income which will result if the Federal Reserve increases rates. While there are many variables and limitations to estimating<br>exposure to changes in rates, such purchases and continuing fixed rate loan originations are projected to reduce such exposure to modest<br>levels. In prior years, The Bancorp deferred adding fixed rate securities when yields were particularly low, which has afforded the flexibility<br>to benefit from, and secure, more advantageous securities and loan rates. | | --- | --- |
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“The Bancorp earned $1.19 a share in the first quarter of 2025 or a 12% increase in EPS over the first quarter of 2024,” said Damian Kozlowski, CEO of The Bancorp. “While we had some pressure on revenue from rates, it was mitigated by our balance sheet strategy, and the growth of deposits. Fintech Solutions continues to show significant momentum in both GDV (up 18% year-over-year) and fee growth (up 26% year-over-year). We are confirming guidance of $5.25 a share for 2025. EPS guidance does not include the impact of $150 million of authorized stock buybacks in 2025.”
Conference Call Webcast
You may access the LIVE webcast of The Bancorp’s Quarterly Earnings Conference Call at 8:00 AM ET Friday, April 25, 2025, by clicking on the webcast link on The Bancorp’s homepage at www.thebancorp.com or you may dial 1.800.549.8228, conference ID 80395. You may listen to the replay of the webcast following the live call on The Bancorp’s investor relations website (archived for one year) or telephonically until Friday, May 2, 2025, by dialing 1.888.660.6264, playback code 80395#.
About The Bancorp
The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association, provides a variety of services including providing non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, visit https://thebancorp.com/.
Forward-Looking Statements
Statements in this earnings release regarding The Bancorp’s business that are not historical facts, are “forward-looking statements.” These statements may be identified by the use of forward-looking terminology, including, but not limited to the words “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward-looking statements include, but are not limited to, statements regarding our anticipated 2025 results. Such forward-looking statements relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2024 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.
The Bancorp, Inc. Contact
Andres Viroslav
Director, Investor Relations
215-861-7990
andres.viroslav@thebancorp.com
Source: The Bancorp, Inc.
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The Bancorp, Inc.
Financial highlights
(unaudited)
| Three months ended | Year ended | |||||
|---|---|---|---|---|---|---|
| March 31, | December 31, | |||||
| Consolidated condensed income statements | 2025 | 2024 | 2024 | |||
| (Dollars in thousands, except per share and share data) | ||||||
| Net interest income | $ | 91,743 | $ | 94,418 | $ | 376,241 |
| Provision for credit losses on non-consumer fintech loans | 874 | 2,363 | 9,319 | |||
| Provision for credit losses on consumer fintech loans | 45,868 | — | 30,651 | |||
| Provision (reversal) for unfunded commitments | 111 | (194) | (596) | |||
| Provision (reversal) for credit loss on security | — | — | (1,000) | |||
| Non-interest income | ||||||
| Fintech fees | ||||||
| ACH, card and other payment processing fees | 5,132 | 2,964 | 14,596 | |||
| Prepaid, debit card and related fees | 25,714 | 24,286 | 97,413 | |||
| Consumer credit fintech fees | 3,600 | — | 4,789 | |||
| Total fintech fees | 34,446 | 27,250 | 116,798 | |||
| Net realized and unrealized gains (losses) on commercial loans, at fair value | 361 | 1,096 | 2,732 | |||
| Leasing related income | 1,972 | 388 | 3,921 | |||
| Consumer fintech loan credit enhancement | 45,868 | — | 30,651 | |||
| Other non-interest income | 995 | 648 | 3,412 | |||
| Total non-interest income | 83,642 | 29,382 | 157,514 | |||
| Non-interest expense | ||||||
| Salaries and employee benefits | 33,669 | 30,280 | 131,597 | |||
| Data processing expense | 1,205 | 1,421 | 5,666 | |||
| Legal expense | 1,957 | 821 | 3,081 | |||
| FDIC insurance | 1,053 | 845 | 3,579 | |||
| Software | 5,013 | 4,489 | 17,913 | |||
| Other non-interest expense | 10,397 | 8,856 | 41,389 | |||
| Total non-interest expense | 53,294 | 46,712 | 203,225 | |||
| Income before income taxes | 75,238 | 74,919 | 292,156 | |||
| Income tax expense | 18,065 | 18,490 | 74,616 | |||
| Net income | 57,173 | 56,429 | 217,540 | |||
| Net income per share - basic | $ | 1.21 | $ | 1.07 | $ | 4.35 |
| Net income per share - diluted | $ | 1.19 | $ | 1.06 | $ | 4.29 |
| Weighted average shares - basic | 47,214,050 | 52,747,140 | 50,063,620 | |||
| Weighted average shares - diluted | 47,959,292 | 53,326,588 | 50,713,140 |
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| --- | | Condensed consolidated balance sheets | | December 31, | | September 30, | | March 31, | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2024 | | 2024 (unaudited) | | 2024 (unaudited) | | | | | | | | | | | | Assets: | | | | | | | | | Cash and cash equivalents | | | | | | | | | Cash and due from banks | 9,684 | $ | 6,064 | $ | 8,660 | $ | 9,105 | | Interest earning deposits at Federal Reserve Bank | 1,011,585 | | 564,059 | | 47,105 | | 1,241,363 | | Total cash and cash equivalents | 1,021,269 | | 570,123 | | 55,765 | | 1,250,468 | | Investment securities, available-for-sale, at fair value, net of 10.0 million allowance for credit loss effective December 31, 2023, March 31, 2024, September 30, 2024, and 0 at December 31, 2024 | 1,488,184 | | 1,502,860 | | 1,588,289 | | 718,247 | | Commercial loans, at fair value | 211,580 | | 223,115 | | 252,004 | | 282,998 | | Loans, net of deferred fees and costs | 6,380,150 | | 6,113,628 | | 5,906,616 | | 5,459,344 | | Allowance for credit losses | (52,497) | | (44,853) | | (31,004) | | (28,741) | | Loans, net | 6,327,653 | | 6,068,775 | | 5,875,612 | | 5,430,603 | | Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock | 16,250 | | 15,642 | | 21,717 | | 15,642 | | Premises and equipment, net | 27,130 | | 27,566 | | 28,091 | | 27,482 | | Accrued interest receivable | 42,464 | | 41,713 | | 42,915 | | 37,861 | | Intangible assets, net | 1,154 | | 1,254 | | 1,353 | | 1,552 | | Other real estate owned | 67,129 | | 62,025 | | 61,739 | | 19,559 | | Deferred tax asset, net | 13,585 | | 18,874 | | 9,604 | | 21,764 | | Credit enhancement asset | 20,199 | | 12,909 | | — | | — | | Other assets | 149,130 | | 182,687 | | 157,501 | | 109,680 | | Total assets | 9,385,727 | $ | 8,727,543 | $ | 8,094,590 | $ | 7,915,856 | | Liabilities: | | | | | | | | | Deposits | | | | | | | | | Demand and interest checking | 8,283,262 | $ | 7,434,212 | $ | 6,844,128 | $ | 6,828,159 | | Savings and money market | 81,320 | | 311,834 | | 81,624 | | 62,597 | | Total deposits | 8,364,582 | | 7,746,046 | | 6,925,752 | | 6,890,756 | | Short-term borrowings | — | | — | | 135,000 | | — | | Senior debt | 96,303 | | 96,214 | | 96,125 | | 95,948 | | Subordinated debenture | 13,401 | | 13,401 | | 13,401 | | 13,401 | | Other long-term borrowings | 13,988 | | 14,081 | | 38,157 | | 38,407 | | Other liabilities | 67,766 | | 68,018 | | 70,829 | | 60,579 | | Total liabilities | 8,556,040 | $ | 7,937,760 | $ | 7,279,264 | $ | 7,099,091 | | Shareholders' equity: | | | | | | | | | Common stock - authorized, 75,000,000 shares of 1.00 par value; 48,067,178 and 46,980,002 shares issued and outstanding, respectively, at March 31, 2025 and 52,253,037 shares issued and outstanding at March 31, 2024 | 48,067 | | 47,713 | | 48,231 | | 52,253 | | Additional paid-in capital | 7,470 | | 3,233 | | 26,573 | | 166,335 | | Retained earnings | 836,328 | | 779,155 | | 723,247 | | 618,044 | | Accumulated other comprehensive (loss) income | (1,840) | | (17,637) | | 17,275 | | (19,867) | | Treasury stock at cost, 1,087,176 shares at March 31, 2025 and 0 shares at March 31, 2024, respectively | (60,338) | | (22,681) | | — | | — | | Total shareholders' equity | 829,687 | | 789,783 | | 815,326 | | 816,765 | | Total liabilities and shareholders' equity | 9,385,727 | $ | 8,727,543 | $ | 8,094,590 | $ | 7,915,856 |
All values are in US Dollars.
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| --- | | Average balance sheet and net interest income | Three months ended March 31, 2025 | | | | | | Three months ended March 31, 2024 | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (Dollars in thousands; unaudited) | | | | | | | | | | | | | Average | | | | Average | | Average | | | | Average | | Assets: | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | | Interest earning assets: | | | | | | | | | | | | | Loans, net of deferred fees and costs^(1)^ | $ | 6,380,615 | $ | 108,802 | | 6.82% | $ | 5,717,262 | $ | 114,160 | 7.99% | | Leases-bank qualified^(2)^ | | 5,853 | | 139 | | 9.50% | | 4,746 | | 116 | 9.78% | | Investment securities-taxable | | 1,489,329 | | 18,127 | | 4.87% | | 733,599 | | 9,634 | 5.25% | | Investment securities-nontaxable^(2)^ | | 6,256 | | 105 | | 6.71% | | 2,895 | | 50 | 6.91% | | Interest earning deposits at Federal Reserve Bank | | 1,136,402 | | 12,680 | | 4.46% | | 874,073 | | 11,884 | 5.44% | | Net interest earning assets | | 9,018,455 | | 139,853 | | 6.20% | | 7,332,575 | | 135,844 | 7.41% | | Allowance for credit losses | | (44,915) | | | | | | (27,158) | | | | | Other assets | | 345,791 | | | | | | 331,756 | | | | | | $ | 9,319,331 | | | | | $ | 7,637,173 | | | | | Liabilities and Shareholders' Equity: | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | Demand and interest checking | $ | 8,174,676 | $ | 45,045 | | 2.20% | $ | 6,453,866 | $ | 38,714 | 2.40% | | Savings and money market | | 136,688 | | 1,330 | | 3.89% | | 50,970 | | 447 | 3.51% | | Total deposits | | 8,311,364 | | 46,375 | | 2.23% | | 6,504,836 | | 39,161 | 2.41% | | Short-term borrowings | | — | | — | | — | | 1,373 | | 19 | 5.54% | | Repurchase agreements | | — | | — | | — | | 13 | | — | — | | Long-term borrowings | | 14,050 | | 195 | | 5.55% | | 38,517 | | 686 | 7.12% | | Subordinated debentures | | 13,401 | | 255 | | 7.61% | | 13,401 | | 292 | 8.72% | | Senior debt | | 96,244 | | 1,234 | | 5.13% | | 95,894 | | 1,233 | 5.14% | | Total deposits and liabilities | | 8,435,059 | | 48,059 | | 2.28% | | 6,654,034 | | 41,391 | 2.49% | | Other liabilities | | 74,537 | | | | | | 171,116 | | | | | Total liabilities | | 8,509,596 | | | | | | 6,825,150 | | | | | Shareholders' equity | | 809,735 | | | | | | 812,023 | | | | | | $ | 9,319,331 | | | | | $ | 7,637,173 | | | | | Net interest income on tax equivalent basis^(2)^ | | | $ | 91,794 | | | | | $ | 94,453 | | | Tax equivalent adjustment | | | | 51 | | | | | | 35 | | | Net interest income | | | $ | 91,743 | | | | | $ | 94,418 | | | Net interest margin^(2)^ | | | | | | 4.07% | | | | | 5.15% | | ^(1)^ Includes commercial loans, at fair value. All periods include non-accrual loans. | | --- | | ^(2)^Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2025 and 2024. |
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| --- | | Allowance for credit losses | Three months ended | | | | Year ended | | | --- | --- | --- | --- | --- | --- | --- | | | March 31, | | March 31, | | December 31, | | | | 2025 (unaudited) | | 2024 (unaudited) | | 2024 | | | | (Dollars in thousands) | | | | | | | Balance in the allowance for credit losses at beginning of period | $ | 44,853 | $ | 27,378 | $ | 27,378 | | Loans charged-off: | | | | | | | | SBA non-real estate | | 62 | | 111 | | 708 | | Direct lease financing | | 736 | | 919 | | 4,575 | | Consumer - home equity | | — | | — | | 10 | | Consumer fintech | | 44,224 | | — | | 19,619 | | Other loans | | — | | 6 | | 8 | | Total | | 45,022 | | 1,036 | | 24,920 | | Recoveries: | | | | | | | | SBA non-real estate | | 18 | | 4 | | 229 | | Direct lease financing | | 260 | | 32 | | 318 | | Consumer fintech | | 5,646 | | — | | 1,877 | | Consumer - home equity | | — | | — | | 1 | | Total | | 5,924 | | 36 | | 2,425 | | Net charge-offs | | 39,098 | | 1,000 | | 22,495 | | Provision for credit losses on non-consumer fintech loans | | 874 | | 2,363 | | 9,319 | | Provision for credit losses on consumer fintech loans | | 45,868 | | — | | 30,651 | | Balance in allowance for credit losses at end of period | $ | 52,497 | $ | 28,741 | $ | 44,853 | | Net charge-offs/average loans | | 0.63% | | 0.02% | | 0.40% | | Net charge-offs/average assets | | 0.42% | | 0.01% | | 0.28% |
| 7 |
| --- | | Loan portfolio | March 31, | | December 31, | | September 30, | | March 31, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2025 (unaudited) | | 2024 | | 2024 (unaudited) | | 2024 (unaudited) | | | | (Dollars in thousands) | | | | | | | | | SBL non-real estate | $ | 191,750 | $ | 190,322 | $ | 179,915 | $ | 140,956 | | SBL commercial mortgage | | 681,454 | | 662,091 | | 665,608 | | 637,926 | | SBL construction | | 42,026 | | 34,685 | | 30,158 | | 27,290 | | Small business loans | | 915,230 | | 887,098 | | 875,681 | | 806,172 | | Direct lease financing | | 709,978 | | 700,553 | | 711,836 | | 702,512 | | SBLOC / IBLOC^(1)^ | | 1,577,170 | | 1,564,018 | | 1,543,215 | | 1,550,313 | | Advisor financing^(2)^ | | 265,950 | | 273,896 | | 248,422 | | 232,206 | | Real estate bridge loans | | 2,212,054 | | 2,109,041 | | 2,189,761 | | 2,101,896 | | Consumer fintech^(3)^ | | 574,048 | | 454,357 | | 280,092 | | — | | Other loans^(4)^ | | 112,322 | | 111,328 | | 46,586 | | 56,163 | | | | 6,366,752 | | 6,100,291 | | 5,895,593 | | 5,449,262 | | Unamortized loan fees and costs | | 13,398 | | 13,337 | | 11,023 | | 10,082 | | Total loans, including unamortized fees and costs | $ | 6,380,150 | $ | 6,113,628 | $ | 5,906,616 | $ | 5,459,344 | | Small business portfolio | | March 31, | | December 31, | | September 30, | | March 31, | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 (unaudited) | | 2024 | | 2024 (unaudited) | | 2024 (unaudited) | | | | (Dollars in thousands) | | | | | | | | SBL, including unamortized fees and costs | $ | 925,877 | $ | 897,077 | $ | 885,263 | $ | 816,151 | | SBL, included in loans, at fair value | | 83,448 | | 89,902 | | 93,888 | | 109,131 | | Total small business loans^(5)^ | $ | 1,009,325 | $ | 986,979 | $ | 979,151 | $ | 925,282 |
^(1)^SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At March 31, 2025 and December 31, 2024, IBLOC loans amounted to $535.2 million and $548.1 million, respectively.
^(2)^In 2020 The Bancorp began originating loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70% of the business enterprise value based on a third-party valuation, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.
^(3)^Consumer fintech loans consist of $305.3 million of secured credit card loans, with the balance comprised of other short-term extensions of credit.
^(4)^Includes demand deposit overdrafts reclassified as loan balances totaling $3.3 million and $1.2 million at March 31, 2025 and December 31, 2024, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and are immaterial.
^(5)^The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated.
Small business loans as of March 31, 2025
| Loan principal | ||
|---|---|---|
| (Dollars in millions) | ||
| U.S. government guaranteed portion of SBA loans^(1)^ | $ | 391 |
| Commercial mortgage SBA^(2)^ | 369 | |
| Construction SBA^(3)^ | 18 | |
| Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans^(4)^ | 113 | |
| Non-SBA SBLs | 102 | |
| Other^(5)^ | 4 | |
| Total principal | $ | 997 |
| Unamortized fees and costs | 12 | |
| Total SBLs | $ | 1,009 |
^(1)^Includes the portion of SBA 7(a) Program loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.
^(2)^Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50%-60%, to which The Bancorp adheres.
^(3)^Includes $15 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $3 million in SBA interim loans with an approved SBA post-construction full takeout/payoff.
^(4)^Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program loans are not made on the basis of real estate LTV; however, they are subject to SBA's "All Available Collateral" rule which mandates that to the extent a borrower or its 20% or greater principals have available collateral (including personal residences), the collateral must be pledged to fully collateralize the loan, after applying SBA-determined liquidation rates. In addition, all 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners.
^(5)^Comprised of $4 million of loans sold that do not qualify for true sale accounting.
| 8 |
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Small business loans by type as of March 31, 2025
(Excludes government guaranteed portion of SBA 7(a) Program)
| SBL commercial mortgage^(1)^ | SBL construction^(1)^ | SBL non-real estate | Total | % Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | |||||||||
| Hotels (except casino hotels) and motels | $ | 87 | $ | — | $ | — | $ | 87 | 14% |
| Funeral homes and funeral services | 30 | — | 32 | 62 | 10% | ||||
| Full-service restaurants | 29 | 2 | 2 | 33 | 5% | ||||
| Child day care services | 24 | 1 | 2 | 27 | 5% | ||||
| Car washes | 11 | 10 | — | 21 | 4% | ||||
| Homes for the elderly | 16 | — | — | 16 | 3% | ||||
| Outpatient mental health and substance abuse centers | 15 | — | — | 15 | 3% | ||||
| General line grocery merchant wholesalers | 13 | — | — | 13 | 2% | ||||
| Gasoline stations with convenience stores | 12 | — | — | 12 | 2% | ||||
| Fitness and recreational sports centers | 8 | — | 2 | 10 | 2% | ||||
| Nursing care facilities | 9 | — | — | 9 | 2% | ||||
| Offices of lawyers | 9 | — | — | 9 | 1% | ||||
| Caterers | 7 | — | — | 7 | 1% | ||||
| All other specialty trade contractors | 6 | — | 1 | 7 | 1% | ||||
| Used car dealers | 7 | — | — | 7 | 1% | ||||
| Plumbing, heating, and air-conditioning companies | 6 | — | 1 | 7 | 1% | ||||
| Limited-service restaurants | 4 | — | 3 | 7 | 1% | ||||
| General warehousing and storage | 6 | — | — | 6 | 1% | ||||
| Appliance repair and maintenance | 6 | — | — | 6 | 1% | ||||
| Automotive body, paint, and interior repair | 5 | — | — | 5 | 1% | ||||
| Other accounting services | 5 | — | — | 5 | 1% | ||||
| Residential remodelers | 5 | — | — | 5 | 1% | ||||
| Offices of dentists | 5 | — | — | 5 | 1% | ||||
| Other miscellaneous durable goods merchant | 5 | — | — | 5 | 1% | ||||
| Other^(2)^ | 168 | 13 | 35 | 216 | 35% | ||||
| Total | $ | 498 | $ | 26 | $ | 78 | $ | 602 | 100% |
^(1)^Of the SBL commercial mortgage and SBL construction loans, $137 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans sold that do not qualify for true sale accounting.
^(2)^Loan types of less than $5 million are spread over approximately one hundred different business types.
State diversification as of March 31, 2025
(Excludes government guaranteed portion of SBA 7(a) Program loans)
| SBL commercial mortgage^(1)^ | SBL construction^(1)^ | SBL non-real estate | Total | % Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | |||||||||
| California | $ | 133 | $ | 5 | $ | 6 | $ | 144 | 24% |
| Florida | 78 | 11 | 4 | 93 | 15% | ||||
| North Carolina | 44 | — | 4 | 48 | 8% | ||||
| New York | 41 | — | 3 | 44 | 7% | ||||
| New Jersey | 32 | — | 7 | 39 | 6% | ||||
| Texas | 25 | 3 | 6 | 34 | 6% | ||||
| Pennsylvania | 19 | — | 13 | 32 | 5% | ||||
| Georgia | 25 | 2 | 1 | 28 | 5% | ||||
| Other States | 101 | 5 | 34 | 140 | 24% | ||||
| Total | $ | 498 | $ | 26 | $ | 78 | $ | 602 | 100% |
^(1)^Of the SBL commercial mortgage and SBL construction loans, $137 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $4 million of loans that do not qualify for true sale accounting.
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Top 10 loans as of March 31, 2025
| Type^(1)^ | State | SBL commercial mortgage | ||
|---|---|---|---|---|
| (Dollars in millions) | ||||
| General line grocery merchant wholesalers | CA | $ | 13 | |
| Funeral homes and funeral services | ME | 13 | ||
| Funeral homes and funeral services | PA | 12 | ||
| Outpatient mental health and substance abuse center | FL | 10 | ||
| Hotel | FL | 8 | ||
| Lawyer's office | CA | 8 | ||
| Hotel | VA | 7 | ||
| Hotel | NC | 7 | ||
| Charter bus industry | NY | 6 | ||
| Used car dealer | CA | 6 | ||
| Total | $ | 90 |
^(1)^ The table above does not include loans to the extent that they are U.S. government guaranteed.
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Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:
Type as of March 31, 2025
| Type | # Loans | Balance | Weighted average origination date LTV | Weighted average interest rate | |
|---|---|---|---|---|---|
| (Dollars in millions) | |||||
| Real estate bridge loans (multifamily apartment loans recorded at amortized cost)^(1)^ | 175 | $ | 2,212 | 70% | 8.53% |
| Non-SBA commercial real estate loans, at fair value: | |||||
| Multifamily (apartment bridge loans)^(1)^ | 4 | $ | 88 | 70% | 7.47% |
| Hospitality (hotels and lodging) | 1 | 19 | 66% | 9.75% | |
| Retail | 2 | 12 | 72% | 8.19% | |
| Other | 2 | 9 | 71% | 4.96% | |
| 9 | 128 | 69% | 7.70% | ||
| Fair value adjustment | — | ||||
| Total non-SBA commercial real estate loans, at fair value | 128 | ||||
| Total commercial real estate loans | $ | 2,340 | 70% | 8.49% |
^(1)^In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale, but are now being retained on the balance sheet. In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third-party appraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 61%.
| State diversification as of March 31, 2025 | 15 largest loans as of March 31, 2025 | |||||
|---|---|---|---|---|---|---|
| State | Balance | Origination date LTV | State | Balance | Origination date LTV | |
| (Dollars in millions) | (Dollars in millions) | |||||
| Texas | 720 | 70% | Texas | $ | 46 | 75% |
| Georgia | 304 | 70% | Tennessee | 40 | 72% | |
| Florida | 230 | 68% | Texas | 39 | 64% | |
| Indiana | 129 | 71% | Michigan | 39 | 62% | |
| New Jersey | 115 | 68% | Texas | 36 | 67% | |
| Ohio | 114 | 71% | Florida | 35 | 72% | |
| Michigan | 105 | 65% | New Jersey | 34 | 62% | |
| Other States each <65 million | 623 | 70% | Pennsylvania | 34 | 63% | |
| Total | 2,340 | 70% | Indiana | 34 | 76% | |
| Texas | 33 | 62% | ||||
| New Jersey | 31 | 71% | ||||
| Oklahoma | 31 | 78% | ||||
| Texas | 31 | 77% | ||||
| Michigan | 31 | 66% | ||||
| Georgia | 30 | 69% | ||||
| 15 largest commercial real estate loans | $ | 524 | 69% |
All values are in US Dollars.
| 11 |
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Institutional banking loans outstanding at March 31, 2025
| Type | Principal | % of total | |
|---|---|---|---|
| (Dollars in millions) | |||
| SBLOC | $ | 1,042 | 57% |
| IBLOC | 535 | 29% | |
| Advisor financing | 266 | 14% | |
| Total | $ | 1,843 | 100% |
For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOC loans generally has been less, for two reasons. First, many collateral accounts are “balanced” and accordingly have a component of debt securities, which have either not decreased in value as much as equities, or in some cases may have increased in value. Second, many of these accounts have the benefit of professional investment advisors who provided some protection against market downturns, through diversification and other means. Additionally, borrowers often utilize only a portion of collateral value, which lowers the percentage of principal to collateral.
Top 10 SBLOC loans at March 31, 2025
| Principal amount | % Principal to collateral | ||
|---|---|---|---|
| (Dollars in millions) | |||
| $ | 10 | 39% | |
| 9 | 55% | ||
| 9 | 15% | ||
| 8 | 87% | ||
| 8 | 48% | ||
| 8 | 21% | ||
| 7 | 33% | ||
| 6 | 20% | ||
| 6 | 39% | ||
| 5 | 42% | ||
| Total and weighted average | $ | 76 | 41% |
Insurance backed lines of credit (IBLOC)
IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, fifteen insurance companies have been approved and, as of April 17, 2025, all were rated A- (Excellent) or better by AM BEST.
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Direct lease financing by type as of March 31, 2025
| Principal balance^(1)^ | % Total | ||
|---|---|---|---|
| (Dollars in millions) | |||
| Government agencies and public institutions^(2)^ | $ | 129 | 18% |
| Construction | 128 | 18% | |
| Real estate and rental and leasing | 98 | 14% | |
| Waste management and remediation services | 95 | 13% | |
| Health care and social assistance | 29 | 4% | |
| Other services (except public administration) | 24 | 3% | |
| Professional, scientific, and technical services | 22 | 3% | |
| Wholesale trade | 19 | 3% | |
| General freight trucking | 17 | 2% | |
| Finance and insurance | 14 | 2% | |
| Transit and other transportation | 12 | 2% | |
| Arts, entertainment, and recreation | 10 | 1% | |
| Other | 113 | 17% | |
| Total | $ | 710 | 100% |
^(1)^Of the total $710 million of direct lease financing, $651 million consisted of vehicle leases with the remaining balance consisting of equipment leases.
^(2)^Includes public universities as well as school districts.
Direct lease financing by state as of March 31, 2025
| State | Principal balance | % Total | |
|---|---|---|---|
| (Dollars in millions) | |||
| Florida | $ | 115 | 16% |
| New York | 60 | 8% | |
| Utah | 53 | 7% | |
| Connecticut | 52 | 7% | |
| California | 46 | 6% | |
| Pennsylvania | 42 | 6% | |
| North Carolina | 38 | 5% | |
| New Jersey | 37 | 5% | |
| Maryland | 36 | 5% | |
| Texas | 23 | 3% | |
| Idaho | 19 | 3% | |
| Georgia | 15 | 2% | |
| Washington | 14 | 2% | |
| Ohio | 13 | 2% | |
| Iowa | 13 | 2% | |
| Other States | 134 | 21% | |
| Total | $ | 710 | 100% |
| 13 |
| --- | | Capital ratios | Tier 1 capital | Tier 1 capital | Total capital | Common equity | | --- | --- | --- | --- | --- | | | to average | to risk-weighted | to risk-weighted | tier 1 to risk | | | assets ratio | assets ratio | assets ratio | weighted assets | | As of March 31, 2025 | | | | | | The Bancorp, Inc. | 8.93% | 13.94% | 14.86% | 13.94% | | The Bancorp Bank, National Association | 9.79% | 15.28% | 16.19% | 15.28% | | "Well capitalized" institution (under federal regulations-Basel III) | 5.00% | 8.00% | 10.00% | 6.50% | | As of December 31, 2024 | | | | | | The Bancorp, Inc. | 9.41% | 13.85% | 14.65% | 13.85% | | The Bancorp Bank, National Association | 10.38% | 15.25% | 16.06% | 15.25% | | "Well capitalized" institution (under federal regulations-Basel III) | 5.00% | 8.00% | 10.00% | 6.50% | | | Three months ended<br><br> <br>March 31, | | | | Year ended<br><br> <br>December 31, | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | 2024 | | 2024 | | | Selected operating ratios | | | | | | | | Return on average assets^(1)^ | | 2.49% | | 2.97% | | 2.71% | | Return on average equity^(1)^ | | 28.64% | | 27.95% | | 27.24% | | Net interest margin | | 4.07% | | 5.15% | | 4.85% |
^(1)^ Annualized
| Book value per share table | March 31, | December 31, | September 30, | March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2024 | 2024 | |||||||||||
| Book value per share | $ | 17.66 | $ | 16.69 | $ | 16.90 | $ | 15.63 | ||||||
| Loan delinquency and other real estate owned | March 31, 2025 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 30-59 days<br><br> <br>past due | 60-89 days<br><br> <br>past due | 90+ days<br><br> <br>still accruing | Non-accrual | Total<br><br> <br>past due | Current | Total<br><br> <br>loans | ||||||||
| SBL non-real estate | $ | 659 | $ | 61 | $ | 204 | $ | 6,148 | $ | 7,072 | $ | 184,678 | $ | 191,750 |
| SBL commercial mortgage | 2,742 | — | — | 6,893 | 9,635 | 671,819 | 681,454 | |||||||
| SBL construction | — | — | — | 1,578 | 1,578 | 40,448 | 42,026 | |||||||
| Direct lease financing | 11,152 | 5,925 | 442 | 6,969 | 24,488 | 685,490 | 709,978 | |||||||
| SBLOC / IBLOC | 9,242 | 3,036 | — | 503 | 12,781 | 1,564,389 | 1,577,170 | |||||||
| Advisor financing | — | — | — | — | — | 265,950 | 265,950 | |||||||
| Real estate bridge loans | — | — | — | 9,754 | 9,754 | 2,202,300 | 2,212,054 | |||||||
| Consumer fintech | 16,114 | 841 | 346 | — | 17,301 | 556,747 | 574,048 | |||||||
| Other loans | 47 | — | 2 | — | 49 | 112,273 | 112,322 | |||||||
| Unamortized loan fees and costs | — | — | — | — | — | 13,398 | 13,398 | |||||||
| $ | 39,956 | $ | 9,863 | $ | 994 | $ | 31,845 | $ | 82,658 | $ | 6,297,492 | $ | 6,380,150 |
Other loan information
Of the $67.5 million special mention and $132.5 million substandard loans real estate bridge loans at March 31, 2025, none were modified in the first quarter of 2025.
Other real estate owned year to date activity
^^
| March 31, 2025 | ||
|---|---|---|
| Beginning balance | $ | 62,025 |
| Transfer from loans, net | 3,722 | |
| Advances | 1,382 | |
| Ending balance | $ | 67,129 |
^^
| March 31, | December 31, | September 30, | March 31, | |
|---|---|---|---|---|
| 2025 | 2024 | 2024 | 2024 | |
| Asset quality ratios: | ||||
| Nonperforming loans to total loans^(1)^ | 0.51% | 0.55% | 0.52% | 1.05% |
| Nonperforming assets to total assets^(1)^ | 1.07% | 1.10% | 1.14% | 0.97% |
| Allowance for credit losses to total loans | 0.82% | 0.73% | 0.52% | 0.53% |
^^
^(1)^In the first quarter of 2024, a $39.4 million apartment building rehabilitation bridge loan was transferred to nonaccrual status. On April 2, 2024, the same loan was transferred from nonaccrual status to other real estate owned. We completed the majority of the capital improvements at the property and have agreed to a sale with a sales price that is expected to cover the current balance plus the forecasted cost of improvements to the property. The March 31, 2025, other real estate owned
| 14 |
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balance of $42.5 million compares to a September 2023 third-party “as is” appraisal of $47.8 million, or an 86% “as is” LTV, after considering the $1.6 million of earnest money deposits in connection with the property’s sale in process. Although the payment date for the additional earnest money deposit of $1.4 million was extended to April 28, 2025 to facilitate a change in ownership by the purchaser, the purchaser has made additional investments, including providing insurance coverage at the property. The closing date remains May 23, 2025, with an option for two additional, 30-day extensions in exchange for additional consideration of $1.0 million per extension.
| Gross dollar volume (GDV)^(1)^ | Three months ended | |||||||
|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | September 30, | March 31, | |||||
| 2025 | 2024 | 2024 | 2024 | |||||
| (Dollars in thousands) | ||||||||
| Prepaid and debit card GDV | $ | 44,650,422 | $ | 39,656,909 | $ | 37,898,006 | $ | 37,943,338 |
^(1)^Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank, N.A.
| 15 |
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^^
| Business line quarterly summary: | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarter ended March 31, 2025 | ||||||||
| (Dollars in millions) | ||||||||
| Balances | ||||||||
| % Growth | ||||||||
| Major business lines | Average approximate rates^(1)^ | Balances^(2)^ | Year over Year | Linked quarter annualized | ||||
| Loans | ||||||||
| Institutional banking^(3)^ | 6.1% | $ | 1,843 | 3% | 1% | |||
| Small business lending^(4)^ | 7.1% | 1,009 | 12% | 11% | ||||
| Leasing | 8.1% | 710 | 1% | 5% | ||||
| Commercial real estate (non-SBA loans, at fair value) | 7.7% | 128 | nm | nm | ||||
| Real estate bridge loans (recorded at book value) | 8.5% | 2,212 | 5% | 20% | ||||
| Consumer fintech loans - interest bearing | 5.0% | 25 | nm | nm | ||||
| Consumer fintech loans - non-interest bearing^(5)^ | — | 549 | nm | nm | ||||
| Weighted average yield | 6.8% | $ | 6,476 | Non-interest income | ||||
| % Growth | ||||||||
| Deposits: Fintech solutions group | Current quarter | Year over Year | ||||||
| Prepaid and debit card issuance, consumer fintech loan fees, and other payments fees | 2.2% | $ | 7,814 | 26% | nm | $ | 34.4 | 26% |
^^
^(1)^Average rates are for the three months ended March 31, 2025.
^(2)^Loan and deposit categories are based on period-end and average quarterly balances, respectively.
^(3)^Institutional Banking loans are comprised of SBLOC loans collateralized by marketable securities, IBLOC loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.
^(4)^Small Business Lending is substantially comprised of SBA-guaranteed loans. Growth rates exclude the impact of $4 million of loans that do not qualify for true sale accounting at March 31, 2025 compared to $9 million at prior quarter end and $29 million at March 31, 2024.
^(5)^Income related to non-interest-bearing balances is included in non-interest income.
Summary of credit lines available
The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.
| March 31, 2025 | ||
|---|---|---|
| (Dollars in thousands) | ||
| Federal Reserve Bank | $ | 2,014,390 |
| Federal Home Loan Bank | 1,071,418 | |
| Total lines of credit available | $ | 3,085,808 |
Estimated insured vs uninsured deposits
The vast majority of The Bancorp’s deposits are insured and low balance and accordingly do not constitute the liquidity risk experienced by certain institutions. Accordingly, the deposit base is comprised as follows.
| March 31, 2025 | ||
|---|---|---|
| Insured | 95% | |
| Low balance accounts | 3% | |
| Other uninsured | 2% | |
| Total deposits | 100% |
| 16 |
| --- |
Calculation of efficiency ratio (non-GAAP)^(1)^
| Year ended | |||||
|---|---|---|---|---|---|
| March 31, | December 31, | ||||
| 2024 | 2024 | ||||
| Net interest income | 91,743 | $ | 94,418 | $ | 376,241 |
| Non-interest income(2) | 37,774 | 29,382 | 126,863 | ||
| Total revenue | 129,517 | $ | 123,800 | $ | 503,104 |
| Non-interest expense | 53,294 | $ | 46,712 | $ | 203,225 |
| Efficiency ratio | 41% | 38% | 40% | ||
| (1)The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency. | |||||
| (2)Excludes consumer fintech loan credit enhancement income of 45.9 million and 30.7 million at March 31, 2025 and December 31, 2024, respectively. |
All values are in US Dollars.
^^
| 17 |
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^^
Exhibit 99.2
THE BANCORP INVESTOR PRESENTATION APRIL 2025
2 DISCLOSURES Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) business , that are not historical facts, are “forward - looking statements.” These statements may be identified by the use of forward - looking terminology, including the words “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward - looking statements include but are not limited to, statements regarding our anticipated 2025 results, future profitability and growth, and our ability to achieve long - term financial targets. These forward - looking statements relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic and political factors, among other factors, and are subject to risks and uncertainties, which could cause the actual results, events, or achievements to differ materially from those set forth in or implied by the forward - looking statements and related assumptions. Factors that could cause results to differ from those expressed in the forward - looking statements also include, but are not limited to, the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10 - K, as amended, for the fiscal year ended December 31, 2024 and other documents that the Company files from time to time with the Securities and Exchange Commission. The Bancorp does not undertake any duty to publicly revise or update forward - looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law. This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), such as those identified in the Appendix. Any non - GAAP financial measures used in this presentation are in addition to, and should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. Non - GAAP financial measures are subject to significant inherent limitations. The non - GAAP measures presented herein may not be comparable to similar non - GAAP measures presented by other companies. This presentation includes market, industry and economic data that was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying economic and other assumptions relied upon by such sources. The Company believes that its market, industry, and economic data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp’s website at www.thebancorp.com . FORWARD LOOKING STATEMENTS & OTHER DISCLOSURES
3 FINANCIAL PERFORMANCE DELIVERING STRONG FINANCIAL PERFORMANCE Q1 2025 2024 2023 2022 29% 27% 26% 19% ROE PROFITABILITY 2.5% 2.7% 2.6% 1.8% ROA 41% 40% 41% 48% EFFICIENCY RATIO 1 SCALABLE PLATFORM KEY FINANCIAL METRICS 1 Please see Appendix slide 31 for calculation of efficiency ratio. Platform delivering operating leverage Capitalized on interest rate environment SUSTAINED PERFORMANCE The Bancorp is continuing to deliver high quality financial performance
4 EARNINGS GUIDANCE DELIVERING STRONG FINANCIAL PERFORMANCE GUIDANCE Our 2025 guidance 1 is $5.25 per share as we maintain strong momentum across our platform 1 2025 guidance excludes impact of 2025 share repurchases. Additionally, guidance assumes achievement of management’s strategic goals as described elsewhere in this presentation and other budgetary goals. $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 2022 2023 2024 2025 Guidance EARNINGS PER SHARE $5.25 $2.27 $3.49 $4.29
5 THE BANCORP CORE BUSINESS MODEL FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND ATTRACTS STABLE, LOWER - COST DEPOSITS DEPLOYED INTO ASSETS IN SPECIALIZED MARKETS THE BANCORP BUSINESS MODEL
6 FINTECH PARTNER BANK FINTECH LEADERSHIP PAYMENT NETWORKS FACILITATE payments between parties via the card networks. PROGRAM MANAGERS CLIENT FACING platforms deliver highly scalable banking solutions to customers with emphasis on customer acquisition and technology. REGULATORS OVERSIGHT of domestic banking and payments activities. PROCESSORS BACK - OFFICE support for program managers providing record keeping and core platform services. FINTECH ECOSYSTEM Enabling fintech companies by providing industry leading card issuing, payments facilitation and regulatory expertise to a diversified portfolio of clients
7 SPECIALIZED LENDING SPECIALIZED LENDING BUSINESS LINES LENDING BUSINESSES Core lending businesses are comprised of our specialized lending activities Institutional Banking $1.8B Emphasize core business lines and add related products and enter adjacent markets Remain positioned to capitalize on credit sponsorship opportunities Maintain balance sheet flexibility as we approach $10B in total assets Real Estate Bridge Lending $2.3B Small Business $1.0B Leasing $ 0.7B CORE LENDING BUSINESSES AS OF Q1 2025 TOTAL $ 6.4 B Established Operating Platform Scalable technology, operations and sales platforms across lending business to support sustained growth STRATEGIC OUTLOOK Consumer Fintech Lending $ 0.6B
8 2030 STRATEGY OUR 2030 STRATEGY OVERVIEW Our new 2030 strategy encompasses previous goals outlined in Vison 700 while adding new fintech opportunities Build on our strengths Create new opportunities Sustain revenue growth Enhance profitability Averting substantial event - risk Keeping the balance sheet under $10B Avoiding potential regulatory issues + + + + EVALUATION FRAMEWORK BEING MINDFUL OF: How can we build on our leading fintech partner bank model and specialized lending businesses?
2030 STRATEGY *Without competing with our partners 1 PROVIDE NEW FINTECH SERVICES 3 SUPPORT FINTECH LENDING 2 MONETIZE CORE COMPETENCIES Our 2030 plan comprises new opportunities identified across various strategic pathways: 1 Long term guidance assumes achievement of management’s long - term strategic plan as described elsewhere in this presentation, imp act of realized and expected interest rate movement, and other budgetary goals. TOTAL REVENUE >$1 Billion ROE >40% ROA >4.0% LEVERAGE >10% LONG - TERM FINANCIAL TARGETS 1 • Niche program management • Embedded Finance • Regulatory services • Middle - office technologies • Diversified holdings across many programs with significant distribution of assets APEX 2030
FINTECH SOLUTIONS: DEPOSIT & FEE GENERATION
11 FINTECH SOLUTIONS: FEE & DEPOSIT GENERATING ACTIVITIES ENABLING LEADING FINTECH COMPANIES DEBIT PROGRAM MANAGERS (CHALLENGER BANKS) PREPAID/STORED VALUE PROGRAM MANAGERS • Provides physical and virtual card issuing • Maintains deposit balances on cards • Facilitates payments into the card networks as the sponsoring bank • Established risk and compliance function is highly scalable #6 Debit Issuing Bank 2023 2 #1 Prepaid Issuing Bank 2023 2 • Government • Employer Benefits • Corporate Disbursements • Payroll • Gift 1 Includes non - interest income from prepaid and debit card issuance plus ACH, card and other payments processing fees, and consume r credit fintech fees. 2 Nilson Report, April 2024. % TOTAL BANK REVENUE Q1 2025 1 27 % GROSS DOLLAR VOLUME GROWTH Q1 2025 VS Q1 2024 18 %
12 FINTECH SOLUTIONS : ESTABLISHED OPERATING PLATFORM SCALABLE PLATFORM ESTABLISHED OPERATING PLATFORM • Infrastructure in place to support significant growth • Long - term relationships with multiple processors enable efficient onboarding • Continued technology investments without changes to expense base REGULATORY EXPERTISE • Financial Crimes Risk Management program with deep experience across payments ecosystem • Customized risk and compliance tools specific to the Fintech Industry OTHER PAYMENTS OFFERINGS • Rapid Funds instant payment transfer product • Potential to capitalize on credit - linked payments opportunities • Additional payments services include ACH processing for third parties INNOVATIVE SOLUTIONS Our platform supports a wide variety of strategic fintech partners through our established processor relationships, regulatory expertise, and suite of other payments products
13 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR DEPOSIT GROWTH FROM FINTECH BUSINESS HIGHLIGHTS • Stable, lower - cost deposit base anchored by contractual, multi - year relationships in our Fintech Solutions business • Fintech Solutions growth driven by increased transactional volume due to electronic banking migration and the addition of new partners $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 2021 2022 2023 2024 Q1 2025 AVERAGE DEPOSITS BY PERIOD ($ BILLIONS) Fintech Solutions Group (Prepaid and Debit Card Issuance and other payments) Other (Includes time deposits and other legacy deposit programs) 2.23% 2.37% 2.32% 0.82% 0.10% COST OF DEPOSITS $5.7 $6.3 $6.4 $6.9 $8.3
14 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR STABLE DEPOSITS & SIGNIFICANT BALANCE SHEET LIQUIDITY STRONG POSITIONING Our deposit base is primarily comprised of granular, small balance, FDIC insured accounts and we maintain significant borrowing capacity on our credit lines ESTIMATED INSURED VS OTHER UNINSURED DEPOSITS March 31, 2025 95% Insured 3% Low balance accounts 2% Other uninsured 100% Total deposits SUMMARY OF CREDIT LINES AVAILABLE March 31, 2025 (Dollars in millions) 2,014 $ Federal Reserve Bank 1,072 Federal Home Loan Bank 3,086 $ Total lines of credit available 95% INSURED DEPOSITS Primarily consist of low balance accounts
LOANS, LEASES & SUPPORTING COLLATERAL
16 LOANS & LEASES STRATEGIC OUTLOOK Optimize balance sheet and continue to capitalize on fintech lending opportunities KEY CONSIDERATIONS FOR LENDING GROWTH MANAGE CREDIT RISK TO DESIRED LEVELS OPTIMIZE NET INTEREST MARGIN AND MONITOR INTEREST RATE SENSITIVITY EXPAND FINTECH LENDING WITH KEY CLIENTS MAINTAIN FLEXIBILITY AS WE APPROACH $10B TOTAL ASSETS Building an asset mix that drives earnings and profitability while maintaining desired credit and interest rate risk characteristics
17 LOANS & LEASES LOAN PORTFOLIO OVERVIEW % OF TOTAL PORTFOLIO 03/31/2025 PRINCIPAL BALANCE ($ MILLIONS) BALANCE SHEET CATEGORY BUSINESS LINE 35% $ 2,300 Multifamily - commercial real estate (A) Real Estate Bridge Lending <1% 19 Hospitality - commercial real estate <1% 12 Retail - commercial real estate <1% 9 Other 35% 2,340 Total 16% 1,042 Securities - backed lines of credit (SBLOC) ( B) Institutional Banking 8% 535 Insurance - backed lines of credit (IBLOC) (C) 4% 266 Advisor Financing 28% 1,843 Total 6% 391 U.S. government guaranteed portion of SBA loans ( D) Small Business Lending 6% 369 Commercial mortgage SBA ( E) 2% 113 Non - guaranteed portion of U.S. govn’t guaranteed 7(a) loans 1% 102 Non - SBA small business loans <1% 18 Construction SBA <1% 4 Other 15% 997 Total 11% 710 Leasing ( F) Commercial Fleet Leasing 9% 574 Consumer fintech ( G) Fintech Solutions Group 2% 112 Other Other 100% $ 6,576 Total principal LOAN COLLATERAL VALUES SUPPORTED BY: A. Comprised of workforce apartment buildings in carefully selected areas B. SBLOC loans are backed by marketable securities with nominal credit losses C. IBLOC loans are backed by the cash value of life insurance policies with nominal credit losses D. Portion of small business loans fully guaranteed by the U.S. government E. 50% - 60% loan to value ratios at origination F. Recourse to vehicles G. Consists of secured credit cards & other short - term extensions of credit
18 LOANS & LEASES: REAL ESTATE BRIDGE LENDING COMMERCIAL REAL ESTATE BRIDGE LENDING % TOTAL WEIGHTED AVG INTEREST RATE ORIGINATION DATE LTV 1 BALANCE # LOANS TYPE 98% 8.5% 70% $ 2,300 179 Multifamily (apartments) <1% 9.8% 66% 19 1 Hospitality (hotels and lodging) <1% 8.2% 72% 12 2 Retail <1% 5.0% 71% 9 2 Other 100% 8.5% 70% $ 2,340 184 Total COMMERCIAL REAL ESTATE LOANS BY TYPE ($MILLIONS) 03/31/2025 $2.3B PORTFOLIO LOANS ORIGINATED SINCE Q3 2021 RESUMPTION (ALL APARTMENT BUILDINGS) BUSINESS OVERVIEW: • Resumed floating rate bridge lending business in Q3 2021 • Lending focus on workforce apartment buildings in carefully selected markets Real Estate Bridge Lending • Vast majority of loans are apartment buildings including all the top 30 exposures • Loans originated prior to Q3 2021 will continue to be accounted for at fair value • Loans originated in 2021 and after will be held for investment and use the Current Expected Credit Loss (CECL) methodology PORTFOLIO ATTRIBUTES 1 In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third part y a ppraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are released at stabilized rental rates, may pr ovi de even greater protection.
19 LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING BUSINESS OVERVIEW: • Automated loan application platform, Talea, provides industry - leading speed and delivery • Securities - backed lines of credit provide fast and flexible liquidity for investment portfolios • Insurance - backed lines of credit provide fast and flexible borrowing against the cash value of life insurance • Advisor Finance product provides capital to transitioning financial advisors to facilitate M&A, debt restructuring, and the development of succession plans • Deposit accounts for wealth management clients • Nominal historical credit losses STRATEGIC OUTLOOK: • Regain momentum across SBLOC, IBLOC and Advisor Finance products • Evaluate new lending opportunities in adjacent markets • Market dynamics support business model: − Advisors shifting from large broker/dealers to independent platforms − Sector shift to fee - based accounts − Emergence of new wealth management providers LENDING AND BANKING SERVICES FOR WEALTH MANAGERS The Bancorp’s business model allows us to build banking solutions to “spec” without competing directly with our partner firms. We do not have any associated asset managers, proprietary advisory programs, or related programs. Our singular focus is to help our partner firms stay competitive in the marketplace and to grow and retain assets ALWAYS A PARTNER, NEVER A COMPETITOR ® $ 1.8 B Q1 2025 PORTFOLIO SIZE 6.1 % 03/31/2025 EST. YIELD
20 LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING % OF PORTFOLIO PRINCIPAL BALANCE LOAN TYPE 57% $ 1,042 Securities - backed lines of credit (SBLOC) 29% 535 Insurance - backed lines of credit (IBLOC) 14% 266 Advisor Financing 100% $ 1,843 Total INSTITUTIONAL BANKING LOANS ($MILLIONS) 03/31/2025 % PRINCIPAL TO COLLATERAL PRINCIPAL BALANCE 39% $ 10 55% 9 15% 9 87% 8 48% 8 21% 8 33% 7 20% 6 39% 6 42% 5 41% $ 76 Total TOP 10 SBLOC LOANS ($MILLIONS) 03/31/2025 SECURITIES - BACKED LINES OF CREDIT • Nominal historical credit losses • Underwriting standards of generally 50% to equities and 80% or more to fixed income securities INSURANCE - BACKED LINES OF CREDIT • Nominal historical credit losses • Loans backed by the cash value of insurance policies PORTFOLIO ATTRIBUTES
21 LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING $ 997 M Q1 2025 PORTFOLIO SIZE 7.1 % 03/31/2025 EST. YIELD BUSINESS OVERVIEW: • Established a distinct platform within the fragmented SBA market − National portfolio approach allows pricing and client flexibility − Solid credit performance demonstrated over time − Client segment strategy tailored by market STRATEGIC OUTLOOK: • Continue delivering growth within existing small business lending platform while entering new verticals and growing the SBAlliance® • SBAlliance® program provides lending support to banks and financial institutions who need SBA lending capabilities through products such as: − Wholesale loan purchases − Vertical focus with expansion of funeral home lending program SBA AND OTHER SMALL BUSINESS LENDING ~$ 800 K AVERAGE 7(a) LOAN SIZE
22 LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE 1 ($MILLIONS) 03/31/2025 SMALL BUSINESS LOANS BY STATE 1 ($MILLIONS) 03/31/2025 TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE STATE $ 144 $ 6 $ 5 $ 133 California 93 4 11 78 Florida 48 4 - 44 North Carolina 44 3 - 41 New York 39 7 - 32 New Jersey 34 6 3 25 Texas 32 13 - 19 Pennsylvania 28 1 2 25 Georgia 140 34 5 101 Other States $ 602 $ 78 $ 26 $ 498 Total TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE TYPE $ 87 $ - $ - $ 87 Hotels (except casino hotels) and motels 62 32 - 30 Funeral homes and funeral services 33 2 2 29 Full - service restaurants 27 2 1 24 Child day care services 21 - 10 11 Car washes 16 - - 16 Homes for the elderly 15 - - 15 Outpatient mental health and substance abuse centers 13 - - 13 General line grocery merchant wholesalers 12 - - 12 Gasoline stations with convenience stores 10 2 - 8 Fitness and recreational sports centers 9 - - 9 Nursing care facilities 9 - - 9 Offices of lawyers 7 - - 7 Caterers 7 1 - 6 All other specialty trade contractors 274 39 13 222 Other $ 602 $ 78 $ 26 $ 498 Total 1 Excludes the government guaranteed portion of SBA 7(a) loans and PPP loans. TYPE DISTRIBUTION • Diverse product mix • Commercial mortgage and construction are generally originated with 50% - 60% LTV’s GEOGRAPHIC DISTRIBUTION • Diverse geographic mix • Largest concentration in California representing 24% of total PORTFOLIO ATTRIBUTES
23 LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING BUSINESS OVERVIEW: • Niche provider of vehicle leasing solutions − Focus on smaller fleets (less than 150 vehicles) − Direct lessor (The Bancorp Bank, N.A. sources opportunities directly and provides value - add services such as outfitting police cars) − Historical acquisitions of small leasing companies have contributed to growth • Mix of commercial (~80%), government agencies and educational institutions (~20%) STRATEGIC OUTLOOK: • Continue enhancing platform and growing balances − Enhanced sales process and support functions − Pursuing technology enhancements to scale business with efficiency • Constantly evaluating organic and inorganic growth opportunities in the vehicle space FLEET LEASING SOLUTIONS $ 710 M Q1 2025 PORTFOLIO SIZE 8.1 % 03/31/2025 EST. YIELD
24 TOTAL BALANCE STATE 16% $ 115 Florida 8% 60 New York 7% 53 Utah 7% 52 Connecticut 6% 46 California 6% 42 Pennsylvania 5% 38 North Carolina 5% 37 New Jersey 5% 36 Maryland 3% 23 Texas 3% 19 Idaho 2% 15 Georgia 2% 14 Washington 2% 13 Ohio 2% 13 Iowa 21% 134 Other states 100% $ 710 Total LOANS & LEASES: COMMERCIAL FLEET LEASING PORTFOLIO COMMERCIAL FLEET LEASING • Largest concentration is construction and government sectors • Of the $710M total portfolio, $651M are vehicle leases with the remaining $59M comprised of equipment leases PORTFOLIO ATTRIBUTES TOTAL BALANCE TYPE 18% $ 129 Government agencies and public institutions 18% 128 Construction 14% 98 Real estate and rental and leasing 13% 95 Waste management and remediation services 4% 29 Health care and social assistance 3% 24 Other services (except public administration) 3% 22 Professional, scientific, and technical services 3% 19 Wholesale trade 2% 17 General freight trucking 2% 14 Finance and insurance 2% 12 Transit and other transportation 1% 10 Arts, entertainment, and recreation 17% 113 Other and non - classified 100% $ 710 Total DIRECT LEASE FINANCING BY STATE ($MILLIONS) 03/31/2025 DIRECT LEASE FINANCING BY TYPE ($MILLIONS) 03/31/2025
FINANCIAL REVIEW
26 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE GROWTH HAS EXCEEDED EXPENSE GROWTH SINCE 2022 1 Revenue includes net interest income and non - interest income. Excludes consumer fintech loan credit enhancement income of $45.9 million and $30.7 million at March 31, 2025 and December 31, 2024, respectively. Please see Appendix slide 31 for reconciliation. 2 Non - interest income as percentage of average assets ranks in top 8% of the uniform bank performance report peer group through Q4 2024. $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 2022 2023 2024 Q1 2024 Q1 2025 NON - INTEREST EXPENSE $ Millions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 2022 2023 2024 Q1 2024 Q1 2025 REVENUE 1 $ Millions HIGHLIGHTS • Revenue increases reflected normalized interest rate environment and growth in fintech revenues • Greater ratio of non - interest income to total assets compared to peers 2
27 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 2020 2021 2022 2023 2024 Q1 2025 FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES PRIMARILY REFLECTS OUR CHARGE - OFF HISTORY HIGHLIGHTS • Increase in allowance driven by Consumer Fintech is entirely offset by credit enhancement recognized in non - interest income • Nominal charge - offs for REBL, SBLOC, & IBLOC ALLOWANCE FOR CREDIT LOSSES ($ MILLIONS) 0.8% 0.7% 0.5% 0.4% 0.5% 0.6% Allowance for credit losses as % of loan balance Small Business HELOC/Consumer/Other SBLOC/IBLOC/Advisor Financing Leasing Real Estate Bridge Lending Consumer Fintech
28 FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION CAPITAL POSITION HIGHLIGHTS • Planned common stock repurchase 2 of $150M in 2025 • Corporate governance requires periodic assessment of capital minimums • Capital planning includes stress testing for unexpected conditions and events 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2022 2023 2024 Q1 2025 5.0% 9.8% 10.4% 12.4% 10.7% Tier 1 Leverage Ratio 8% 15% 15% 17% 15% Tier 1 Risk - based Capital Ratio (RBC) 1 10% 16% 16% 18% 15% Total Risk - based Capital Ratio Tier 1 RBC Ratio Total RBC Ratio Tier 1 Leverage Ratio THE BANCORP BANK, N.A. CAPITAL RATIOS Well - capitalized minimum 1 Common Equity Tier 1 to risk weighted assets is identical to Tier 1 risk - based ratio and has a 6.5% well capitalized minimum. 2 Common stock repurchase may be modified without notice at any time.
29 HISTORICAL PERFORMANCE AND LONG - TERM TARGETS FINANCIAL REVIEW: EARNINGS AND PROFITABILITY LONG - TERM TARGETS Q1 2025 2024 2023 2022 2021 PERFORMANCE METRICS >40% 28.6% 27.2% 25.6% 19.3% 17.9% ROE >4.0% 2.49% 2.71% 2.59% 1.81% 1.68% ROA $1.19 $4.29 $3.49 $2.27 $1.88 EPS >10% 9.8% 10.4% 12.4% 10.7% 10.9% The Bancorp Bank, N.A. Leverage Ratio <$10B $9.4B $8.7B $7.7B $7.9B $6.8B Total Assets 41% 40% 41% 48% 53% Efficiency Ratio 1 1 Please see Appendix slide 31 for calculation of efficiency ratio. Decreases in the efficiency ratio indicate greater efficien cy, i.e., lower expenses vs. higher revenue.
APPENDIX
31 REVENUE & EFFICIENCY RATIO CALCULATIONS APPENDIX ($ millions) Q1 2025 Q1 2024 2024 2023 2022 2021 The Bancorp $ 91,743 $ 94,418 $ 376,241 $ 354,052 $ 248,841 $ 210,876 Net interest income 83,642 29,382 157,514 112,094 105,683 104,749 Non - interest income 45,868 - 30,651 - - - Consumer fintech credit enhancement (subtract) 37,774 29,382 126,863 112,094 105,683 104,749 Adjusted non - interest income 1 129,517 123,800 503,104 466,146 354,524 315,625 Total revenue 1 $ 53,294 $ 46,712 $ 203,225 $ 191,042 $ 169,502 $ 168,350 Non - interest expense 41% 38% 40% 41% 48% 53% Efficiency Ratio 2 Payments non - interest income (Fintech Solutions business line) $ 5,132 $ 2,964 $ 14,596 $ 9,822 $ 8,935 $ 7,526 ACH, card, and other payment processing fees 25,714 24,286 97,413 89,417 77,236 74,654 Prepaid, debit card, and related fees 3,600 - 4,789 - - - Consumer credit fintech fees $ 34,446 $ 27,250 $ 116,798 $ 99,239 $ 86,171 $ 82,180 Total payments (Fintech Solutions) non - interest income 1 27% 22% % of Total revenue 1 Excludes consumer fintech loan credit enhancement income of $45.9 million and $30.7 million at March 31, 2025 and December 31 , 2 024, respectively. 2 The efficiency ratio is calculated by dividing GAAP total non - interest expense by the total of GAAP net interest income and adju sted non - interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.