Equibles

8-K

Bancorp, Inc. (TBBK)

8-K 2020-10-29 For: 2020-10-29
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Added on April 04, 2026

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):  October29, 2020

The Bancorp, Inc.

(Exact name of registrant as specified inits 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,including zip code)

302-385-5000

(Registrant’s telephone number, includingarea code)

(Former name or former address, if changedsince last report)

Check the appropriate box below if the Form 8-K filingis intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[_]   Written communications pursuant to Rule 425 underthe Securities Act (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) under the Exchange Act (17 CFR 240.14d-2(b))[_]   Pre-commencement communications pursuant to Rule 13e-4(c) under the 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 emerginggrowth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Actof 1934 (§240.12b-2).

[_] Emerging growth company

If an emerging growth company, indicate by check mark if theregistrant has elected not to use the extended transition period for complying with any new or revised financial accounting standardsprovided pursuant to Section 13(a) of the Exchange Act. [_]

Item 2.02.    Resultsof Operations and Financial Condition

On October 29, 2020, The Bancorp, Inc. (the "Company") issued a press release regarding its earnings for the three and nine months ended September 30, 2020. 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

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:  October 29, 2020 The Bancorp, Inc.
By: /s/ Paul Frenkiel
Name: Paul Frenkiel
Title: Chief Financial Officer and Secretary

Exhibit 99.1

The Bancorp, Inc. Reports Third Quarter 2020 Financial Results

Wilmington, DE – October 29, 2020 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the third quarter of 2020.

Highlights

· For the quarter ended September 30, 2020, The Bancorp earned net income of $23.1 million from continuing operations, and $0.40<br>diluted earnings per share from combined continuing and discontinued operations.
· Return on assets and equity for the quarter ended September 30, 2020 amounted to 1.5% and 17% (annualized), respectively, compared<br>to 1.3% and 16% for the quarter ended June 30, 2020.
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· Net interest margin amounted to 3.37% for the quarter ended September 30, 2020, compared to 3.35% for the quarter ended September<br>30, 2019 and 3.53% for the quarter ended June 30, 2020.
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· Net interest income increased 33% to $50.0 million for the quarter ended September 30, 2020, compared to $37.6 million for<br>the quarter ended September 30, 2019.
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· Average loans and leases, including loans at fair value, increased 61% to $4.21 billion for the quarter ended September 30,<br>2020, compared to $2.62 billion for the quarter ended September 30, 2019.
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· Prepaid, debit card and related fees increased 20% to $19.4 million for the quarter ended September 30, 2020, compared to $16.1<br>million for the quarter ended September 30, 2019. Gross dollar volume (GDV), representing total spend on cards, increased 39%.
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· SBLOC (securities-backed lines of credit), IBLOC (insurance backed lines of credit) and advisor financing loans increased 58%<br>year over year and 12% quarter over quarter to $1.5 billion at September 30, 2020.
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· Small Business Loans, including those held at fair value, increased 13% year over year to $633 million at September 30, 2020,<br>exclusive of $208 million of Paycheck Protection Program loans.
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· As of September 30, 2020, The Bancorp originated approximately 1,250 Paycheck Protection Program loans, totaling approximately<br>$208 million, which it expects will generate approximately $5.5 million of fees and interest. That income is being recognized over<br>eleven months, beginning in April 2020. The average loan size was approximately $165,000 with 92% of the loans under $350,000.
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· The average rate on $5.6 billion of average deposits and interest-bearing liabilities in the third quarter of 2020 was 0.18%.<br>Average prepaid and debit card account deposits of $4.0 billion for third quarter 2020, reflected an increase of 62% over the $2.5<br>billion for the quarter ended September 30, 2019.
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· Consolidated leverage ratio was 8.62% at September 30, 2020. The Bancorp and its subsidiary, The Bancorp Bank (the “Bank”),<br>remain well capitalized.
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· Book value per common share at September 30, 2020 was $9.71 per share compared to $8.52 at September<br>30, 2019, an increase of 14%, primarily as a result of retained earnings per share.
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Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “We continued to add new card programs into our payments ecosystem in the 3rd quarter, as well as adding several new direct rapid funds partners. These new relationships will be announced as new products and services enter the marketplace. Our pipelines continue to be very robust and significantly above historic norms suggesting continued growth in transaction volumes. In the 3rd quarter, we made a strategic determination as to our securitization business. We have been evaluating our securitization platform and its loan portfolio. After assessing its current profitability, market conditions and credit risk, we have decided to discontinue future securitization activity. The loan portfolio, comprised almost entirely of multi-family loans that have experienced few deferrals and delinquencies, will amortize over the next 3-5 years and be replaced by loans originated in other areas. We

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expect income from the portfolio to be stable over the first 2 years. A portion of the portfolio may be sold as whole loans as space is needed on our balance sheet for other lending activities. Our real estate team in our commercial SBA business will continue to originate select transactions. For full year 2020, we believe we will achieve at least $1.25 earnings per share. We now believe we have enough information to issue preliminary guidance for 2021. We expect to earn between $1.65 and $1.70 per share. $1.70 per share or approximately $100 million in net income is our current company budget for 2021.”

The Bancorp reported net income of $23.3 million, or $0.40 per diluted share, for the quarter ended September 30, 2020, compared to net income of $20.4 million, or $0.36 per diluted share, for the quarter ended September 30, 2019. Tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 to risk-weighted assets ratios were 8.62%, 14.26%, 14.68% and 14.26%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, October 30, 2020 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 5682938.  You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, November 6, 2020 by dialing 855.859.2056, access code 5682938.

The Bancorp, Inc. (NASDAQ: TBBK) is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500. The company’s only subsidiary, The Bancorp Bank (Member FDIC, Equal Housing Lender), has been repeatedly recognized in the payments industry as the Top Issuer of Prepaid Cards (US), a top merchant sponsor bank and a top ACH originator. Specialized lending distinctions include National Preferred SBA Lender, a leading provider of securities-backed lines of credit, and one of the few bank-owned commercial vehicle leasing groups in the nation. For more information please visit www.thebancorp.com.

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp’s business which 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 “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words , and are based on current expectations about important economic, political, and technological factors, among others, 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. These risks and uncertainties include those relating to the on-going COVID-19 pandemic, the impact it will have on our business and the industry as a whole, and the resulting governmental and societal responses. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp’s filings with the Securities Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those filings. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this earnings release, except as may be required under applicable law.

The Bancorp, Inc. Contact

Andres Viroslav

Director, Investor Relations

215-861-7990

aviroslav@thebancorp.com

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| --- | | The Bancorp, Inc. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Financial highlights | | | | | | | | | | | | (unaudited) | | | | | | | | | | | | | Three months ended | | | | | Nine months ended | | | | | | | September 30, | | | | | September 30, | | | | | | Condensed income statement | 2020 | | | 2019 | | 2020 | | | 2019 | | | | (dollars in thousands except per share data) | | | | | | | | | | | Net interest income | $ | 49,996 | | $ | 37,560 | $ | 143,153 | | $ | 106,109 | | Provision for credit losses | | 1,297 | | | 650 | | 5,798 | | | 2,950 | | Non-interest income | | | | | | | | | | | | Service fees on deposit accounts | | 8 | | | 8 | | 23 | | | 69 | | ACH, card and other payment processing fees | | 1,760 | | | 2,590 | | 5,313 | | | 7,414 | | Prepaid, debit card and related fees | | 19,434 | | | 16,134 | | 56,647 | | | 48,137 | | Net realized and unrealized gains (losses) on commercial<br> loans originated for sale | | 684 | | | 13,704 | | (5,412 | ) | | 24,319 | | Change in value of investment in unconsolidated entity | | — | | | — | | (45 | ) | | — | | Leasing related income | | 1,519 | | | 589 | | 2,795 | | | 2,311 | | Other non-interest income | | 947 | | | 490 | | 1,996 | | | 1,379 | | Total non-interest income | | 24,352 | | | 33,515 | | 61,317 | | | 83,629 | | Non-interest expense | | | | | | | | | | | | Salaries and employee benefits | | 26,417 | | | 24,526 | | 74,650 | | | 70,192 | | Data processing expense | | 1,192 | | | 1,192 | | 3,538 | | | 3,684 | | Legal expense | | 994 | | | 1,466 | | 4,136 | | | 4,324 | | FDIC Insurance | | 2,180 | | | 860 | | 7,687 | | | 4,884 | | Software | | 3,595 | | | 3,199 | | 10,458 | | | 9,180 | | SEC settlement | | — | | | 1,400 | | — | | | 1,400 | | Lease termination expense | | — | | | — | | — | | | 908 | | Other non-interest expense | | 7,648 | | | 9,408 | | 22,595 | | | 26,227 | | Total non-interest expense | | 42,026 | | | 42,051 | | 123,064 | | | 120,799 | | Income from continuing operations before income taxes | | 31,025 | | | 28,374 | | 75,608 | | | 65,989 | | Income tax expense | | 7,894 | | | 7,975 | | 19,033 | | | 17,585 | | Net income from continuing operations | | 23,131 | | | 20,399 | | 56,575 | | | 48,404 | | Discontinued operations | | | | | | | | | | | | Income (loss) from discontinued operations before income taxes | | (1,671 | ) | | 151 | | (2,720 | ) | | 1,875 | | Income tax expense (benefit) | | (1,794 | ) | | 125 | | (2,058 | ) | | 574 | | Net income (loss) from discontinued operations, net of tax | | 123 | | | 26 | | (662 | ) | | 1,301 | | Net income | $ | 23,254 | | $ | 20,425 | $ | 55,913 | | $ | 49,705 | | Net income per share from continuing operations - basic | $ | 0.40 | | $ | 0.36 | $ | 0.98 | | $ | 0.85 | | Net income (loss) per share from discontinued operations - basic | $ | — | | $ | — | $ | (0.01 | ) | $ | 0.02 | | Net income per share - basic | $ | 0.40 | | $ | 0.36 | $ | 0.97 | | $ | 0.87 | | Net income per share from continuing operations - diluted | $ | 0.40 | | $ | 0.36 | $ | 0.97 | | $ | 0.85 | | Net income (loss) per share from discontinued operations - diluted | $ | — | | $ | — | $ | (0.01 | ) | $ | 0.02 | | Net income per share - diluted | $ | 0.40 | | $ | 0.36 | $ | 0.96 | | $ | 0.87 | | Weighted average shares - basic | | 57,588,168 | | | 56,907,815 | | 57,433,477 | | | 56,712,084 | | Weighted average shares - diluted | | 58,471,192 | | | 57,413,297 | | 58,051,833 | | | 57,152,371 |

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| --- | | Balance sheet | | | June 30, | | | December 31, | | | September 30, | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2020 | | | 2019 | | | 2019 | | | | | | | | | | | | | | | | | Assets: | | | | | | | | | | | | | Cash and cash equivalents | | | | | | | | | | | | | Cash and due from banks | 6,220 | | $ | 5,094 | | $ | 19,928 | | $ | 24,068 | | | Interest earning deposits at Federal Reserve Bank | 294,758 | | | 475,627 | | | 924,544 | | | 932,440 | | | Total cash and cash equivalents | 300,978 | | | 480,721 | | | 944,472 | | | 956,508 | | | Investment securities, available-for-sale, at fair value | 1,264,903 | | | 1,324,447 | | | 1,320,692 | | | 1,382,437 | | | Investment securities, held-to-maturity, at cost | — | | | — | | | 84,387 | | | 84,399 | | | Commercial loans, at fair value | 1,849,947 | | | 1,807,630 | | | 1,180,546 | | | 489,240 | | | Loans, net of deferred fees and costs | 2,488,760 | | | 2,322,737 | | | 1,824,245 | | | 1,683,377 | | | Allowance for credit losses | (15,727 | ) | | (14,625 | ) | | (10,238 | ) | | (10,360 | ) | | Loans, net | 2,473,033 | | | 2,308,112 | | | 1,814,007 | | | 1,673,017 | | | Federal Home Loan Bank & Atlantic Community Bancshares stock | 1,368 | | | 1,368 | | | 5,342 | | | 4,342 | | | Premises and equipment, net | 15,849 | | | 16,701 | | | 17,538 | | | 17,857 | | | Accrued interest receivable | 18,852 | | | 18,897 | | | 13,619 | | | 13,898 | | | Intangible assets, net | 2,563 | | | 2,710 | | | 2,315 | | | 2,698 | | | Deferred tax asset, net | 7,952 | | | 7,921 | | | 12,538 | | | 13,006 | | | Investment in unconsolidated entity | 31,783 | | | 34,064 | | | 39,154 | | | 49,431 | | | Assets held for sale from discontinued operations | 122,253 | | | 128,463 | | | 140,657 | | | 162,098 | | | Other assets | 79,821 | | | 83,003 | | | 81,696 | | | 94,605 | | | Total assets | 6,169,302 | | $ | 6,214,037 | | $ | 5,656,963 | | $ | 4,943,536 | | | Liabilities: | | | | | | | | | | | | | Deposits | | | | | | | | | | | | | Demand and interest checking | 4,882,834 | | $ | 5,089,741 | | $ | 4,402,740 | | $ | 3,844,747 | | | Savings and money market | 505,928 | | | 455,458 | | | 174,290 | | | 25,950 | | | Time deposits | — | | | — | | | 475,000 | | | 475,000 | | | Total deposits | 5,388,762 | | | 5,545,199 | | | 5,052,030 | | | 4,345,697 | | | Securities sold under agreements to repurchase | 42 | | | 42 | | | 82 | | | 93 | | | Senior debt | 98,222 | | | — | | | — | | | — | | | Subordinated debenture | 13,401 | | | 13,401 | | | 13,401 | | | 13,401 | | | Other long-term borrowings | 40,462 | | | 40,639 | | | 40,991 | | | 41,166 | | | Other liabilities | 69,954 | | | 81,677 | | | 65,962 | | | 59,005 | | | Total liabilities | 5,610,843 | | $ | 5,680,958 | | $ | 5,172,466 | | $ | 4,459,362 | | | Shareholders' equity: | | | | | | | | | | | | | Common stock - authorized, 75,000,000 shares of 1.00 par value; 57,590,874 and 56,940,521 shares issued and outstanding at September 30, 2020 and 2019, respectively | 57,591 | | | 57,555 | | | 56,941 | | | 56,911 | | | Treasury stock (100,000 shares) | (866 | ) | | (866 | ) | | (866 | ) | | (866 | ) | | Additional paid-in capital | 376,751 | | | 374,578 | | | 371,633 | | | 370,113 | | | Retained earnings | 104,282 | | | 81,028 | | | 50,742 | | | 48,888 | | | Accumulated other comprehensive income | 20,701 | | | 20,784 | | | 6,047 | | | 9,128 | | | Total shareholders' equity | 558,459 | | | 533,079 | | | 484,497 | | | 484,174 | | | Total liabilities and shareholders' equity | 6,169,302 | | $ | 6,214,037 | | $ | 5,656,963 | | $ | 4,943,536 | |

All values are in US Dollars.

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| --- | | Average balance sheet and net interest income | Three months ended<br><br> <br>September 30, 2020 | | | | | | | | Three months ended<br><br> <br>September 30, 2019 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (dollars in thousands) | | | | | | | | | | | | | | | | | | Average | | | | | Average | | | Average | | | | | Average | | | | Assets: | Balance | | | Interest | | Rate | | | Balance | | | Interest | | Rate | | | | Interest earning assets: | | | | | | | | | | | | | | | | | | Loans net of deferred fees and costs ** | $ | 4,202,054 | | $ | 44,318 | | 4.22 | % | $ | 2,608,427 | | $ | 35,103 | | 5.38 | % | | Leases - bank qualified* | | 8,026 | | | 146 | | 7.28 | % | | 14,067 | | | 252 | | 7.17 | % | | Investment securities-taxable | | 1,300,191 | | | 7,911 | | 2.43 | % | | 1,429,222 | | | 10,485 | | 2.93 | % | | Investment securities-nontaxable* | | 4,041 | | | 35 | | 3.46 | % | | 6,172 | | | 54 | | 3.50 | % | | Interest earning deposits at Federal Reserve Bank | | 413,259 | | | 106 | | 0.10 | % | | 474,499 | | | 2,545 | | 2.15 | % | | Net interest earning assets | | 5,927,571 | | | 52,516 | | 3.54 | % | | 4,532,387 | | | 48,439 | | 4.27 | % | | Allowance for credit losses | | (14,587 | ) | | | | | | | (9,988 | ) | | | | | | | Assets held for sale from discontinued operations | | 124,916 | | | 890 | | 2.85 | % | | 145,347 | | | 1,609 | | 4.43 | % | | Other assets | | 195,125 | | | | | | | | 298,191 | | | | | | | | | $ | 6,233,025 | | | | | | | $ | 4,965,937 | | | | | | | | Liabilities and Shareholders' Equity: | | | | | | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | | | | | | Demand and interest checking | $ | 5,079,711 | | $ | 1,591 | | 0.13 | % | $ | 3,829,457 | | $ | 7,644 | | 0.80 | % | | Savings and money market | | 484,323 | | | 139 | | 0.11 | % | | 26,444 | | | 52 | | 0.79 | % | | Time | | — | | | — | | 0.00 | % | | 269,464 | | | 1,338 | | 1.99 | % | | Total deposits | | 5,564,034 | | | 1,730 | | 0.12 | % | | 4,125,365 | | | 9,034 | | 0.88 | % | | Short-term borrowings | | 3,260 | | | 1 | | 0.12 | % | | 256,945 | | | 1,595 | | 2.48 | % | | Securities sold under agreements to repurchase | | 41 | | | — | | 0.00 | % | | 93 | | | — | | 0.00 | % | | Subordinated debentures | | 13,401 | | | 118 | | 3.52 | % | | 13,401 | | | 186 | | 5.55 | % | | Senior debt | | 53,260 | | | 633 | | 4.75 | % | | — | | | — | | 0.00 | % | | Total deposits and liabilities | | 5,633,996 | | | 2,482 | | 0.18 | % | | 4,395,804 | | | 10,815 | | 0.98 | % | | Other liabilities | | 53,260 | | | | | | | | 98,980 | | | | | | | | Total liabilities | | 5,687,256 | | | | | | | | 4,494,784 | | | | | | | | Shareholders' equity | | 545,769 | | | | | | | | 471,153 | | | | | | | | | $ | 6,233,025 | | | | | | | $ | 4,965,937 | | | | | | | | Net interest income on tax equivalent basis* | | | | $ | 50,924 | | | | | | | $ | 39,233 | | | | | Tax equivalent adjustment | | | | | 38 | | | | | | | | 64 | | | | | Net interest income | | | | $ | 50,886 | | | | | | | $ | 39,169 | | | | | Net interest margin * | | | | | | | 3.37 | % | | | | | | | 3.35 | % | | * Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2020 and 2019. | | | | | | | | | | | | | | | | | | ** Includes loans held at fair value. | | | | | | | | | | | | | | | | |

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| --- | | Average balance sheet and net interest income | Nine months ended<br><br> <br>September 30, 2020 | | | | | | | | Nine months ended<br><br> <br>September 30, 2019 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | (dollars in thousands) | | | | | | | | | | | | | | | | | | Average | | | | | Average | | | Average | | | | | Average | | | | Assets: | Balance | | | Interest | | Rate | | | Balance | | | Interest | | Rate | | | | Interest earning assets: | | | | | | | | | | | | | | | | | | Loans net of deferred fees and costs ** | $ | 3,798,104 | | $ | 124,924 | | 4.39 | % | $ | 2,365,317 | | $ | 95,001 | | 5.36 | % | | Leases - bank qualified* | | 9,401 | | | 509 | | 7.22 | % | | 15,755 | | | 947 | | 8.01 | % | | Investment securities-taxable | | 1,343,211 | | | 28,594 | | 2.84 | % | | 1,394,234 | | | 32,649 | | 3.12 | % | | Investment securities-nontaxable* | | 4,537 | | | 110 | | 3.23 | % | | 6,771 | | | 168 | | 3.31 | % | | Interest earning deposits at Federal Reserve Bank | | 444,323 | | | 1,836 | | 0.55 | % | | 439,414 | | | 7,502 | | 2.28 | % | | Net interest earning assets | | 5,599,576 | | | 155,973 | | 3.71 | % | | 4,221,491 | | | 136,267 | | 4.30 | % | | Allowance for credit losses | | (13,225 | ) | | | | | | | (9,537 | ) | | | | | | | Assets held for sale from discontinued operations | | 130,880 | | | 3,259 | | 3.32 | % | | 157,630 | | | 5,293 | | 4.48 | % | | Other assets | | 243,629 | | | | | | | | 285,843 | | | | | | | | | $ | 5,960,860 | | | | | | | $ | 4,655,427 | | | | | | | | Liabilities and Shareholders' Equity: | | | | | | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | | | | | | Demand and interest checking | $ | 4,858,666 | | $ | 9,676 | | 0.27 | % | $ | 3,840,141 | | $ | 25,260 | | 0.88 | % | | Savings and money market | | 298,049 | | | 309 | | 0.14 | % | | 28,073 | | | 129 | | 0.61 | % | | Time | | 106,113 | | | 1,483 | | 1.86 | % | | 90,808 | | | 1,338 | | 1.96 | % | | Total deposits | | 5,262,828 | | | 11,468 | | 0.29 | % | | 3,959,022 | | | 26,727 | | 0.90 | % | | Short-term borrowings | | 25,419 | | | 181 | | 0.95 | % | | 137,860 | | | 2,624 | | 2.54 | % | | Securities sold under agreements to repurchase | | 51 | | | — | | 0.00 | % | | 92 | | | — | | 0.00 | % | | Subordinated debentures | | 13,401 | | | 408 | | 4.06 | % | | 13,401 | | | 573 | | 5.70 | % | | Senior debt | | 17,883 | | | 633 | | 4.72 | % | | — | | | — | | 0.00 | % | | Total deposits and liabilities | | 5,319,582 | | | 12,690 | | 0.32 | % | | 4,110,375 | | | 29,924 | | 0.97 | % | | Other liabilities | | 119,961 | | | | | | | | 99,577 | | | | | | | | Total liabilities | | 5,439,543 | | | | | | | | 4,209,952 | | | | | | | | Shareholders' equity | | 521,317 | | | | | | | | 445,475 | | | | | | | | | $ | 5,960,860 | | | | | | | $ | 4,655,427 | | | | | | | | Net interest income on tax equivalent basis* | | | | $ | 146,542 | | | | | | | $ | 111,636 | | | | | Tax equivalent adjustment | | | | | 130 | | | | | | | | 234 | | | | | Net interest income | | | | $ | 146,412 | | | | | | | $ | 111,402 | | | | | Net interest margin * | | | | | | | 3.41 | % | | | | | | | 3.40 | % | | * Full taxable equivalent basis, using a statutory rate of 21% for 2020 and 2019. | | | | | | | | | | | | | | | | | | ** Includes loans held at fair value. | | | | | | | | | | | | | | | | |

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| --- | | Allowance for credit losses: | Nine months ended | | | | | | Year ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | September 30, | | | September 30, | | | December 31, | | | | | 2020 | | | 2019 | | | 2019 | | | | | (dollars in thousands) | | | | | | | | | | Balance in the allowance for loan and lease losses at beginning of period (1) | $ | 12,875 | | $ | 8,653 | | $ | 8,653 | | | Loans charged-off: | | | | | | | | | | | SBA non-real estate | | 1,350 | | | 995 | | | 1,362 | | | Direct lease financing | | 2,178 | | | 391 | | | 528 | | | Other consumer loans | | — | | | 3 | | | 1,103 | | | Total | | 3,528 | | | 1,389 | | | 2,993 | | | Recoveries: | | | | | | | | | | | SBA non-real estate | | 82 | | | 94 | | | 125 | | | Direct lease financing | | 502 | | | 51 | | | 51 | | | Other consumer loans | | — | | | 1 | | | 2 | | | Total | | 584 | | | 146 | | | 178 | | | Net charge-offs | | 2,944 | | | 1,243 | | | 2,815 | | | Provision credited to allowance, excluding commitment provision | | 5,796 | | | 2,950 | | | 4,400 | | | Balance in allowance for credit losses at end of period | $ | 15,727 | | $ | 10,360 | | $ | 10,238 | | | Net charge-offs/average loans | | 0.08 | % | | 0.05 | % | | 0.12 | % | | Net charge-offs/average loans (annualized) | | 0.10 | % | | 0.06 | % | | 0.12 | % | | Net charge-offs/average assets | | 0.05 | % | | 0.03 | % | | 0.06 | % | | (1) Excludes activity from assets held for sale from discontinued operations. | | | | | | | | | | | Loan portfolio: | September 30, | | June 30, | | December 31, | | September 30, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2020 | | 2020 | | 2019 | | 2019 | | | | (in thousands) | | | | | | | | | SBL non-real estate | $ | 293,488 | $ | 293,692 | $ | 84,579 | $ | 84,181 | | SBL commercial mortgage | | 270,264 | | 259,020 | | 218,110 | | 209,008 | | SBL construction | | 27,169 | | 33,193 | | 45,310 | | 38,116 | | Small business loans * | | 590,921 | | 585,905 | | 347,999 | | 331,305 | | Direct lease financing | | 430,675 | | 422,505 | | 434,460 | | 412,755 | | SBLOC / IBLOC** | | 1,428,253 | | 1,287,350 | | 1,024,420 | | 920,463 | | Advisor financing *** | | 26,600 | | 15,529 | | — | | — | | Other specialty lending | | 2,194 | | 2,706 | | 3,055 | | 3,167 | | Other consumer loans **** | | 3,809 | | 4,003 | | 4,554 | | 6,388 | | | | 2,482,452 | | 2,317,998 | | 1,814,488 | | 1,674,078 | | Unamortized loan fees and costs | | 6,308 | | 4,739 | | 9,757 | | 9,299 | | Total loans, net of unamortized fees and costs | $ | 2,488,760 | $ | 2,322,737 | $ | 1,824,245 | $ | 1,683,377 | | Small business portfolio: | | September 30, | | June 30, | | December 31, | | September 30, | | | | 2020 | | 2020 | | 2019 | | 2019 | | | | (in thousands) | | | | | | | | SBL, including unamortized fees and costs | | 590,314 | | 583,935 | | 352,214 | | 337,440 | | SBL, included in commercial loans held at fair value | | 250,958 | | 225,401 | | 220,358 | | 222,007 | | Total small business loans | $ | 841,272 | $ | 809,336 | $ | 572,572 | $ | 559,447 |

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| --- | | * The preceding table shows small business loans and small business loans held at fair value, which consist of the government guaranteed portion of SBA loans at the dates indicated (in thousands). | | --- | | ** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies. | | *** In 2020, we began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession.  Maximum loan amounts are subject to loan to value ratios of 70%, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio.  Personal guarantees and blanket business liens are obtained as appropriate. | | **** Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $151,000 and $882,000 at September 30, 2020 and December 31, 2019, respectively.  Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses. | | --- | | Small business loans as of September 30, 2020 | | | | | --- | --- | --- | --- | | | Loan principal | | | | | | (in millions) | | | U.S. government guaranteed portion of SBA loans (a) | $ | 334 | | | Paycheck Protection Program Loans (PPP) (a) | | 208 | | | Commercial mortgage SBA (b) | | 165 | | | Construction SBA (c) | | 13 | | | Unguaranteed portion of U.S. government guaranteed loans (d) | | 98 | | | Non-SBA small business loans (e) | | 18 | | | Total principal | $ | 836 | | | Fair value adjustment (f) | | 6 | | | Unamortized fees | | (1 | ) | | Total small business loans | $ | 841 | | | (a)   This is the portion of SBA 7a loans (7a) and PPP which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk. | | --- | | (b)   Substantially all of these loans are made under the SBA 504 Fixed Asset Financing program (504) which dictates origination date loan to value percentages (LTV), generally 50-60%, to which the bank adheres. | | (c)   Of the $13 million Construction SBA loans, $10 million are 504 first mortgages with an origination date LTV of 50-60% and $3 million are SBA interim loans with an approved SBA post-construction full takeout/payoff. | | (d)  The $98 million represents the unguaranteed portion of 7a loans which are 70% or more guaranteed by the U.S. government.  7a 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 7a and 504 loans require the personal guaranty of all 20% or greater owners. | | (e)  The $18 million non-SBA loans are mainly comprised of approximately 20 conventional coffee/doughnut/carryout franchisee note purchases. The majority of purchased notes were made to multi-unit operators and are considered seasoned and have performed as agreed. A $2 million guaranty by the seller, for an 11% first loss piece, is in place until August 2021. | | (f)   The fair value adjustment applies to the U.S. government guaranteed portion of SBA loans. | | Additionally, the  CARES Act of 2020 has provided significant support for SBA loans including funding intended to provide six months of interest payments on SBA loans, as well as other accommodations to provide for the payment of payroll and other operating expenses. This support is expiring in the fourth quarter of 2020. |

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| --- | | Type as of September 30, 2020 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Excludes government guaranteed portion of SBA 7a and PPP loans) | | | | | | | | | | | | | | SBL commercial mortgage* | | SBL construction* | | SBL non-real estate | | Total | | % Total | | | | | (dollars in millions) | | | | | | | | | | | | Hotels | $ | 66 | $ | 2 | $ | — | $ | 68 | | 24 | % | | Professional services offices | | 21 | | — | | 3 | | 24 | | 8 | % | | Full-service restaurants | | 15 | | 1 | | 4 | | 20 | | 7 | % | | Child day care and youth services | | 15 | | — | | 1 | | 16 | | 5 | % | | Bakeries | | 4 | | — | | 12 | | 16 | | 5 | % | | Elderly assisted living facilities | | 2 | | 8 | | 2 | | 12 | | 4 | % | | General warehousing and storage | | 11 | | — | | — | | 11 | | 4 | % | | Limited-service restaurants and catering | | 7 | | — | | 3 | | 10 | | 3 | % | | Fitness/rec centers and instruction | | 7 | | — | | 2 | | 9 | | 3 | % | | Amusement and recreation industries | | 4 | | 2 | | 3 | | 9 | | 3 | % | | Car washes | | 5 | | 3 | | — | | 8 | | 3 | % | | Funeral homes | | 7 | | — | | — | | 7 | | 2 | % | | New and used car dealers | | 4 | | — | | — | | 4 | | 1 | % | | Automotive servicing | | 3 | | — | | — | | 3 | | 1 | % | | Other | | 51 | | — | | 26 | | 77 | | 27 | % | | Total | $ | 222 | $ | 16 | $ | 56 | $ | 294 | | 100 | % |

* Substantially all are SBA loans with 50-60% loan to value ratios at their origination.

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| --- | | State diversification as of September 30, 2020 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Excludes government guaranteed portion of SBA 7a and PPP loans) | | | | | | | | | | | | | | SBL commercial mortgage* | | SBL construction* | | SBL non-real estate | | Total | | % Total | | | | | (dollars in millions) | | | | | | | | | | | | Florida | $ | 35 | $ | 8 | $ | 8 | $ | 51 | | 17 | % | | California | | 36 | | 2 | | 5 | | 43 | | 15 | % | | Pennsylvania | | 30 | | — | | 4 | | 34 | | 12 | % | | Illinois | | 26 | | — | | 3 | | 29 | | 10 | % | | North Carolina | | 19 | | 3 | | 3 | | 25 | | 9 | % | | New York | | 10 | | 2 | | 5 | | 17 | | 6 | % | | Texas | | 11 | | — | | 5 | | 16 | | 5 | % | | Tennessee | | 11 | | — | | 1 | | 12 | | 4 | % | | New Jersey | | 3 | | 1 | | 7 | | 11 | | 4 | % | | Virginia | | 9 | | — | | 2 | | 11 | | 4 | % | | Georgia | | 5 | | — | | 2 | | 7 | | 2 | % | | Colorado | | 3 | | — | | 1 | | 4 | | 1 | % | | Michigan | | 3 | | — | | 1 | | 4 | | 1 | % | | Washington | | 3 | | — | | — | | 3 | | 1 | % | | Ohio | | 2 | | — | | 1 | | 3 | | 1 | % | | Other states | | 16 | | — | | 8 | | 24 | | 8 | % | | Total | $ | 222 | $ | 16 | $ | 56 | $ | 294 | | 100 | % |

* Substantially all are SBA loans with 50-60% loan to value ratios at their origination.

Top 10 loans as of September 30, 2020
Type* State SBL<br><br> <br>commercial mortgage* SBL<br><br> <br>construction* Total
(in millions)
Professional services office CA $ 9 $ — $ 9
Hotel FL 9 — 9
General warehouse PA 7 — 7
Hotel NC 6 — 6
Assisted living facility FL — 5 5
Hotel NC 5 — 5
Fitness and rec center PA 5 — 5
Hotel PA 4 — 4
Hotel TN 4 — 4
Gas Station VA 3 — 3
Total $ 52 $ 5 $ 57

* All of the top 10 loans are SBA and with the rest of the commercial real estate portfolio were originated with an approximate loan to value ratio between 50% and 60% at origination.

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| --- |

Commercial real estate loans held at fair value which were originated for sale or securitization, excluding SBA loans, are as follows including LTV at origination:

Type as of September 30, 2020
Type # Loans Balance Origination date LTV Weighted average minimum interest rate
(dollars in millions)
Multifamily (apartments) 173 $ 1,463 76 % 4.77 %
Hospitality (hotels and lodging) 11 63 65 % 5.73 %
Retail 8 52 70 % 4.62 %
Other 7 25 70 % 5.21 %
199 $ 1,603 75 % 4.81 %
Fair value adjustment (4 )
Total $ 1,599
State diversification as of September 30, 2020 15 Largest loans (all multifamily) as of September 30, 2020
--- --- --- --- --- --- --- --- --- ---
State Balance Origination<br><br> <br>date LTV State Balance Origination<br><br> <br>date LTV
(dollars in millions) (dollars in millions)
Texas $ 396 76 % North Carolina $ 43 78 %
Georgia 252 78 % Texas 38 79 %
Arizona 123 76 % Texas 35 80 %
North Carolina 111 77 % Pennsylvania 32 77 %
Nevada 56 80 % Georgia 31 80 %
Alabama 54 76 % Nevada 28 80 %
Other states each Texas 28 75 %
<$50 million $ 611 73 % Texas 27 77 %
Total $ 1,603 75 % Arizona 26 79 %
Mississippi 25 79 %
Texas 24 77 %
North Carolina 24 77 %
Texas 24 77 %
California 23 65 %
Georgia 23 79 %
15 Largest loans $ 431 77 % 
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| --- | | Institutional banking loans outstanding at September 30, 2020 | | | | | | --- | --- | --- | --- | --- | | Type | | Principal | % of total | | | | | (dollars in millions) | | | | Securities backed lines of credit (SBLOC) | $ | 1,069 | 73 | % | | Insurance backed lines of credit (IBLOC) | | 359 | 25 | % | | Advisor financing | | 27 | 2 | % | | Total | $ | 1,455 | 100 | % |

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While equities have fallen in excess of 30% in recent periods, the reduction in collateral value of brokerage accounts collateralizing SBLOCs 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. Secondly, 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 % principal to collateral.

Top 10 SBLOC loans at September 30, 2020
Principal amount % Principal to collateral
(dollars in millions)
$ 33 30 %
17 39 %
14 22 %
12 33 %
10 47 %
10 31 %
9 23 %
9 75 %
9 49 %
8 22 %
Total $ 131 35 %
Insurance backed lines of credit (IBLOC)
---
IBLOC loans are backed by the cash value of life insurance policies which have been assigned to us.  We lend up to 100% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, seven insurance companies have been approved and, as of January 21, 2020 all were rated Superior (A+ or better) by AM BEST. Moody’s ratings were at least A rated, and ranged from A3 to Aa2. 
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| --- | | Direct lease financing* by type as of September 30, 2020 | | | | | | --- | --- | --- | --- | --- | | | | Principal balance | % Total | | | | | (dollars in millions) | | | | Government agencies and public institutions** | $ | 76 | 18 | % | | Construction | | 74 | 18 | % | | Waste management and remediation services | | 61 | 14 | % | | Real estate, rental and leasing | | 44 | 10 | % | | Retail trade | | 36 | 8 | % | | Transportation and warehousing | | 35 | 8 | % | | Health care and social assistance | | 26 | 6 | % | | Professional, scientific, and technical services | | 19 | 4 | % | | Wholesale trade | | 14 | 3 | % | | Manufacturing | | 14 | 3 | % | | Educational services | | 9 | 2 | % | | Arts, entertainment, and recreation | | 5 | 1 | % | | Other | | 18 | 5 | % | | Total | $ | 431 | 100 | % | | * Of the total $431 million of direct lease financing, $401 million consisted of vehicle leases with the remaining balance consisting of equipment leases. | | --- | | ** Includes public universities and school districts | | Direct lease financing by state as of September 30, 2020 | | | | | | --- | --- | --- | --- | --- | | State | | Principal balance | % Total | | | | | (dollars in millions) | | | | Florida | $ | 92 | 20 | % | | California | | 30 | 7 | % | | New Jersey | | 29 | 7 | % | | Pennsylvania | | 26 | 6 | % | | New York | | 25 | 6 | % | | North Carolina | | 22 | 5 | % | | Utah | | 21 | 5 | % | | Maryland | | 20 | 5 | % | | Washington | | 16 | 4 | % | | Georgia | | 12 | 3 | % | | Missouri | | 12 | 3 | % | | Connecticut | | 12 | 3 | % | | Texas | | 12 | 3 | % | | Alabama | | 11 | 3 | % | | South Carolina | | 9 | 2 | % | | Other states | | 82 | 18 | % | | Total | $ | 431 | 100 | % |

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| --- | | Capital ratios: | Tier 1 capital <br>to average <br>assets ratio | | | Tier 1 capital <br>to risk-weighted <br>assets ratio | | | Total capital <br>to risk-weighted <br>assets ratio | | | Common equity <br>tier 1 to risk <br>weighted assets | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | As of September 30, 2020 | | | | | | | | | | | | | | The Bancorp, Inc. | | 8.62 | % | | 14.26 | % | | 14.68 | % | | 14.26 | % | | The Bancorp Bank | | 8.50 | % | | 14.04 | % | | 14.45 | % | | 14.04 | % | | "Well capitalized" institution (under FDIC regulations-Basel III) | | 5.00 | % | | 8.00 | % | | 10.00 | % | | 6.50 | % | | As of December 31, 2019 | | | | | | | | | | | | | | The Bancorp, Inc. | | 9.63 | % | | 19.04 | % | | 19.45 | % | | 19.04 | % | | The Bancorp Bank | | 9.46 | % | | 18.71 | % | | 19.11 | % | | 18.71 | % | | "Well capitalized" institution (under FDIC regulations-Basel III) | | 5.00 | % | | 8.00 | % | | 10.00 | % | | 6.50 | % | | | Three months ended | | | | | | Nine months ended | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | September 30, | | | | | | September 30, | | | | | | | | 2020 | | | 2019 | | | 2020 | | | 2019 | | | | Selected operating ratios: | | | | | | | | | | | | | | Return on average assets ^(1)^ | | 1.48 | % | | 1.63 | % | | 1.25 | % | | 1.41 | % | | Return on average equity ^(1)^ | | 16.90 | % | | 17.20 | % | | 14.29 | % | | 14.92 | % | | Net interest margin | | 3.37 | % | | 3.35 | % | | 3.41 | % | | 3.40 | % | | (1) Annualized | | | | | | | | | | | | | | Book value per share table: | September 30, | | | June 30, | | | December 31, | | | September 30, | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2020 | | | 2020 | | | 2019 | | | 2019 | | | | Book value per share | $ | 9.71 | | $ | 9.28 | | $ | 8.52 | | $ | 8.52 | | | <br><br><br><br>Loan quality table: | | September 30, | | | June 30, | | | December 31, | | | September 30, | | | | | 2020 | | | 2020 | | | 2019 | | | 2019 | | | Nonperforming loans to total loans | | 0.49 | % | | 0.44 | % | | 0.50 | % | | 0.55 | % | | Nonperforming assets to total assets | | 0.20 | % | | 0.17 | % | | 0.16 | % | | 0.19 | % | | Allowance for loan and lease losses to total loans | | 0.63 | % | | 0.63 | % | | 0.56 | % | | 0.62 | % | | Nonaccrual loans | $ | 12,275 | | $ | 9,957 | | $ | 5,796 | | $ | 6,420 | | | Loans 90 days past due still accruing interest | | 24 | | | 352 | | | 3,264 | | | 2,788 | | | Other real estate owned | | — | | | — | | | — | | | — | | | Total nonperforming assets | $ | 12,299 | | $ | 10,309 | | $ | 9,060 | | $ | 9,208 | | | | | Three months ended | | | | | | | | | | | | | | September 30, | | | June 30, | | | December 31, | | | September 30, | | | | | 2020 | | | 2020 | | | 2019 | | | 2019 | | | | | (in thousands) | | | | | | | | | | | | Gross dollar volume (GDV) ^(2)^: | | | | | | | | | | | | | | Prepaid and debit card GDV | $ | 23,963,508 | | $ | 23,680,749 | | $ | 19,104,327 | | $ | 17,264,690 | | | (2) Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank. | | | | | | | | | | | | |

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| --- | | Business line quarterly summary: | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Quarter ended September 30, 2020 | | | | | | | | | | | | | | | | | (dollars in millions) | | | | | | | | | | | | | | | | | | | | | Balances | | | | | | | | | | | | | | | | | | | % Growth | | | | | | | | | | | Major business lines | Average approximate rates * | | | Balances ** | | Year over year | | | Linked quarter annualized | | | | | | | | Loans | | | | | | | | | | | | | | | | | Institutional banking *** | | 2.5 | % | $ | 1,455 | | 58 | % | | 47 | % | | | | | | Small Business Lending**** | | 4.9 | % | | 633 | | 13 | % | | 21 | % | | | | | | Leasing | | 6.3 | % | | 431 | | 4 | % | | 8 | % | | | | | | Commercial real estate (non SBA at fair value) | | 4.8 | % | | 1,603 | | nm | | | nm | | | | | | | Weighted average yield | | 4.2 | % | $ | 4,122 | | | | | | | | Non-interest income | | | | | | | | | | | | | | | | | | % Growth | | | Deposits | | | | | | | | | | | | | Current quarter | Year over year | | | Payment solutions (prepaid and debit card issuance) | | 0.1 | % | $ | 4,038 | | 62 | % | | nm | | $ | 19.4 | 20 | % | | Card payment and ACH processing | | 0.3 | % | | 834 | | (14 | %) | | nm | | | 1.8 | nm | | | * Average rates are for the quarter ended September 30, 2020 | | --- | | ** Loan and deposit categories are respectively based on period-end and average quarterly balances. | | *** Institutional Banking loans are comprised of Securities Backed Lines of Credit (SBLOC), collateralized by marketable securities, Insurance Backed Lines of Credit (IBLOC), collateralized by the cash surrender value of insurance policies, and Advisor financing. | | **** Small Business Lending is substantially comprised of SBA loans.  The balance above excludes $208 million of Paycheck Protection Program loans. |

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| --- | | Analysis of Walnut Street* marks: | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Loan activity | | | Marks | | | | | (dollars in millions) | | | | | | | Original Walnut Street loan balance, December 31, 2014 | $ | 267 | | | | | | Marks through December 31, 2014 sale date | | (58 | ) | $ | (58 | ) | | Sales price of Walnut Street | | 209 | | | | | | Equity investment from independent investor | | (16 | ) | | | | | December 31, 2014 Bancorp book value | | 193 | | | | | | Additional marks 2015 - 2019 | | (46 | ) | | (46 | ) | | 2020 Marks | | — | | | | | | Payments received | | (115 | ) | | | | | September 30, 2020 Bancorp book value** | $ | 32 | | | | | | Total marks | | | | $ | (104 | ) | | Divided by: | | | | | | | | Original Walnut Street loan balance | | | | $ | 267 | | | Percentage of total mark to original balance | | | | | 39 | % | | * Walnut Street is the investment in unconsolidated entity on the balance sheet which reflects the investment in a securitization of certain loans from the bank's discontinued loan portfolio. | | --- | | ** Approximately 34% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of September 30, 2020. | | Walnut Street portfolio composition as of September 30, 2020 | | | --- | --- | | Collateral type | % of Portfolio | | Commercial real estate non-owner occupied | | | Retail | 61.1% | | Office | - | | Other | 5.5% | | Construction and land | 29.6% | | First mortgage residential owner occupied | 2.4% | | First mortgage residential non-owner occupied | 1.4% | | Total | 100.0% |

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| --- | | Cumulative analysis of marks on discontinued commercial loan principal as of September 30, 2020 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Discontinued | | Cumulative | | | % to original | | | | | loan principal | | marks | | | principal | | | | | (dollars in millions) | | | | | | | | | Commercial loan discontinued principal before marks | $ | 66 | | | | | | | | Florida mall held in discontinued other real estate owned | | 42 | | (27 | ) | | | | | Mark at September 30, 2020 | | | | (4 | ) | | | | | Cumulative mark at September 30, 2020 | $ | 108 | $ | (31 | ) | | 29 | % |

Analysis of discontinued commercial loan relationships as ofSeptember 30, 2020

Nonperforming loan principal Total loan principal Performing loan marks Nonperforming loan marks Total marks
5 loan relationships > 5 million 44 $ — $ 44 $ (3 ) $ — $ (3 )
Loan relationships < 5 million 9 9 18 — (1 ) (1 )
53 $ 9 $ 62 $ (3 ) $ (1 ) $ (4 )

All values are in US Dollars.

Quarterly activity for commercial loan discontinued principal
Commercial
loan principal
(in millions)
Commercial loan discontinued principal June 30, 2020 before marks $ 67
Quarterly paydowns and other reductions (1 )
Commercial loan discontinued principal September 30, 2020 before marks $ 66
Marks September 30, 2020 (4 )
Net commercial loan exposure September 30, 2020 $ 62
Residential mortgages 37
Net loans $ 99
Florida mall in other real estate owned 15
8 properties in other real estate owned 8
Total discontinued assets at September 30, 2020 $ 122 
| 17 |

| --- |

Discontinued commercial loan composition as of September 30,2020

Collateral type Unpaid principal balance Mark<br> September 30, 2020 Mark as % of portfolio
(dollars in millions)
Commercial real estate - non-owner occupied:
Retail $ 4 $ (0.6 ) 15 %
Office 2 — —
Other 19 (0.1 ) 1 %
Construction and land 11 (0.1 ) 1 %
Commercial non-real estate and industrial 2 — —
1 to 4 family construction 11 (2.7 ) 25 %
First mortgage residential non-owner occupied 8 — —
Commercial real estate owner occupied:
Retail 7 (0.6 ) 9 %
Residential junior mortgage 1 — —
Other 1 — —
Total $ 66 $ (4.1 ) 6 %
Less: mark (4 )
Net commercial loan exposure September 30, 2020 $ 62 $ (4.1 )
Loan payment deferrals as of September 30, 2020
--- --- --- --- --- --- ---
Principal for loans with deferrals Total principal by loan category % of total loan principal with deferrals
(dollars in millions)
Commercial real estate loans held at fair value (excluding SBA loans) $ 30 $ 1,603 2 %
Securities backed lines of credit, insurance backed lines of credit & advisor financing — 1,455 0 %
Small business lending, substantially all SBA loans 18 836 2 %
Direct lease financing 4 430 1 %
Discontinued operations 2 103 2 %
Other consumer loans and specialty lending — 6 0 %
Total $ 54 $ 4,433 1.2 %

Note: At September 30, 2020, SBA 7a loans, included in Small business lending above, totaled $433 million, of which $98 million was not U.S. government guaranteed.   The CARES Act of 2020, or CARES ACT, provides support to SBA borrowers through six months of principal and interest payments.  A large percentage of these payments will expire in fourth quarter 2020 which could lead to an increase in deferrals and relief provided to these borrowers.

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| --- |

Exhibit 99.2

OC T OB E R 2 9 th , 20 20 THE BANCORP INVESTOR PRESENTATION

2 FORWARD LOOKING STATEMENTS & OTHER D I S C L O S U RE S D I S C L O S U R E S Statements in this presentation regarding The Bancorp, Inc.’s 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 “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “intend,” “plan," or similar words, and are based on current expectations about important economic, political, and technological factors, among others, 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. These risks and uncertainties include those relating to the on - going COVID - 19 pandemic, the impact it will have on the company’s business and the industry as a whole, and the resulting governmental and societal responses. For further discussion of these risks and uncertainties, see the “risk factors” sections contained, in The Bancorp, Inc.’s Annual Report on Form 10 - K for the year ended December 31, 2019 and in its other public filings with the SEC. In addition, these forward - looking statements are based upon assumptions with respect to future strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward - looking statements. The forward - looking statements speak only as of the date of this presentation. The Bancorp, Inc. does not undertake 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”). This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third - party service providers. The Bancorp, Inc. makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of such information. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp, Inc. with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp, Inc.’s website at www.thebancorp.com . This presentation is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Neither the SEC nor any other regulatory body has approved or disapproved of the securities of The Bancorp, Inc. or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense.

3 ACROSS OUR BUSINESS LINES, THE BANCORP PARTNERS WITH SOME OF THE WORLD’S MOST SUCCESSFUL COMPANIES K E Y P L A Y E R I N T H E P A Y M E N T S & B A N K I N G E C O S Y S T E M $ 6 . 2 B I N A SSE T S # 1 P R E P A I D C A R D I S S U I NG B A NK 1 PR E P AI D C A R D S I N U . S . D I S T R I BUT I O N > 10 0 MM 1 Per Nilsen Ratings and measured by Gross Dollar Volume.

4 WE HAVE NOW RECORDED 15 STRAIGHT QUARTERS OF POSITIVE PRE - TAX INCOME E S T A B L I S H E D E A R N I N G S M O M E N T U M 1 Q4 2019 pre - tax income excluding $7.5 million civil money penalty was $12.6 million. $9.7 $13.1 $ 8 .7 $19.6 $ 8 .3 $17.9 $1 0 .5 $24.2 $15.1 $2 8 .5 $5.1 $16.7 $26.8 $29.4 $0 $5 $ 10 $ 1 5 $13.0 $ 20 $ 25 $ 30 $ 40 $ 35 $ 45 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 1 $65M Gain from sale of Safe Harbor IRA P R E - T A X I N C O M E ( $ M I L L I O N S ) $ 8 2.9 2 0 1 7 $0.39 EPS $1.55 EPS $0.90 EPS 2 0 1 8 2 0 1 9 K E Y S T O E A R N I N G S G R O W T H & S U S T A I N A B I L I T Y x Clear strategic vision x Strong growth from core business x Investments in technology/innovation x Consistent execution of business plan Q 3 2 0 2 0 Y E A R T O D A T E R E S U L T S 14 % … ROE 1 . 3 % … ROA $0.96 EPS Q 2 Q 3 Q 3 2 0 2 0 Y T D Q 4 1

5 OUR BUSINESS PLAN OUTLINES THE PATH TO EXPAND OUR LEADERSHIP AMONG PEER BANKS AND IN THE PAYMENTS INDUSTRY S T R A T E G I C P L A N : 2 0 2 1 G U I D A N C E $ 1.65 - $ 1.70 2 0 2 1 E P S T A R G E T R A N GE OUR 2021 TARGET I S A R A NG E W I T H $ 1 . 7 0 E P S O R A P P R O X I M A T E L Y $ 1 0 0 M I L L I ON N E T I N C OME A S O U R M A NA G E M E NT T A R G ET $ 0 .39 $ 0 .90 $ 0 .96 $ 0 .25 $ 0 .00 $ 0 .50 $ 0 .75 $ 1 .00 $ 1 .50 $ 1 .25 $ 1 .75 2 0 17 2 0 18 2 0 19 Q3 YTD 2020 2021 Target E A R N I N G S P E R S H A R E $1.55 Target EPS Range $1.65 - $1.70 $1.70

6 BY EXECUTING OUR STRATEGIC PLAN, WE EXPECT TO DELIVER MARKET - LEADING RETURNS & CREATE VALUE FOR SHAREHOLDERS S T R A T E G I C P L A N : F I N A N C I A L G O A L S K E Y S T O A C H I E V I N G F I N A N C I A L T A R G E T S x Establish a new Payments Ecosystem 2.0 x Invest in technology/innovation x Maintain an industry leading compliance & risk function x Expand salesforce and marketing function in key markets x Attract & retain the best talent P E R F O R M A N C E M E T R I C S 2 0 1 9 Q 3 2 0 2 0 Y T D L O N G - T E R M T A R G E T S ROE 11 . 6% 14.3% 20% ROA 1 . 1% 1.3% > 2.0% EPS $0 . 90 $0.96 Leverage Ratio 9 . 7% 8.6% 9% – 10% Total Assets $5 . 7B $6.2B ~$8.0B

7 WE ARE WORKING CLOSELY WITH OUR BORROWERS TO MEET THEIR NEEDS AS THE PANDEMIC UNFOLDS F I N A N C I A L R E V I E W : P A N D E M I C R E S P O N S E 1 At risk sectors include Hospitality and Retail. HI GHLIGHTS • Implemented procedures to support employees working from home • Team members deemed worksite essential continue to operate from our physical locations, while effectively employing social distancing standards • Loans deferred as of 9/30/20 were down to 1.2% of total loans due to the pandemic compared to 7.5% in Q2 and 6.5% in Q1 • We continue to closely monitor our borrowers needs as businesses begin reopening PAY CH E CK PR OTE CTION P RO G RA M • High focus on supporting existing clients • Originated approximately 1,250 loans, totaling approximately $208 million • Expect to generate approximately $5.5 million in fees and interest • Average loan size of $165,000 with 92% under $350,000 BUSINESS LINE DEFERRED LOAN P RI NC I P A L TOT A L P RI NC I P A L % TOTAL Real Estate Capital Markets (HFS) $ 30 $ 1,603 2% Institutional Banking - 1,455 0% Small Business Lending 18 836 2% Commercial Fleet Leasing 4 430 1% Discontinued Operations 2 103 2% Other - 6 0% Total $ 54 $ 4,433 1. 2 % LOAN DEFERRALS BY BUSINESS LINE ($MILLION S ) 9/ 3 0/ 2020

8 Note: Financial data for deposits is average for the quarter ended September 30, 2020 and loans for the quarter ended September 30, 2020. PAYMENTS BUSINESS GENERATES NON - INTEREST INCOME AND COLLECTS STABLE, LOWER COST DEPOSITS DEPLOYED INTO LOWER RISK ASSET BASE IN SPECIALIZED MARKETS PAYMENT ACCEPTANCE GROUP Merchant acquiring and ACH services PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs $5.6B D E P OSI T S Market - leading payments businesses generate stable deposits that fund our lending business lines COMMERCIAL LENDING A combination of Small Business Lending and Fleet Leasing to create opportunities and accelerate growth in the commercial lending space SMALL BUSINESS COMMERCIAL LENDING FLEET LEASING SBA and other Niche - vehicle fleet small business leasing solutions lending — Historically low loss business lines $4.3B L O AN S Highly specialized lending products in high growth markets I N S T I TU T I O N A L BANKING Securities and cash value insurance lending for wealth managers REAL ESTATE CAPITAL MARKETS Commercial real estate, primarily multifamily loans

DEPOSITS & FEES: PAYMENTS BUSINESS GENERATES NON - INTEREST INCOME AND STABLE, LOWER COST DEPOSITS

10 B U S I N E S S O V E R V I E W : P A Y M E N T S 1 # PR E P AI D C A R D I S S U I NG B A NK 2 39 % G R OS S D OL L A R V OL U ME G R OW T H 3 1. PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs B U S I N E S S O V E R V I E W : I S S U A N C E • Sponsorship of prepaid and other electronic access accounts across the payments space • Sponsorship of private label banking (e.g., checking account with a debit card) • 3Q’2020 Financial Highlights: • Average deposits: $4,038M • Non - interest income: $19.4M 2. PAYMENT ACCEPTANCE GROUP Rapid Funds, merchant acquiring and ACH services B U S I N E S S O V E R V I E W : A C C E P T A N C E • Rapid Funds payment technologies • ACH sponsorship of large - scale payment processors • VISA/MasterCard sponsorship of large credit card acquiring ISOs 1 and their merchants • 3Q’2020 Financial Highlights: • Average deposits: $835M • Non - interest income: $1.8M OUR PAYMENTS BUSINESS IS COMPRISED OF THE PAYMENT SOLUTIONS GROUP (ISSUANCE) & PAYMENT ACCEPTANCE GROUP (ACCEPTANCE) 1 Independent Sales Organization. 2 Per Nilson Ratings and based on Gross Dollar Volume. 3 Gross Dollar Volume for Q3 2020 vs Q3 2019. 4 Reflects fees for prepaid, debit card and related fees and ACH, card and other payment processing fees for the three quarters ending September 30, 2020 vs three quarters ending September 30, 2019. 12 % N ON - I N TE R E S T I N C OM E G R OW T H 4

11 P A Y M E N T S B U S I N E S S : P A Y M E N T S O L U T I O N S G R O U P 39 % G R OS S D OL L A R V OL U ME G R OW T H 1. PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs B U S I N E S S O V E R V I E W : • Unique non - branch platform which leverages technology and strategic partners • #1 issuing bank for prepaid cards 2 • Over 100 million prepaid cards in U.S. distribution • Leading provider of tailored banking solutions to Fintech firms, including challenger banks and other financial services companies • Sponsorship of private label banking (e.g., checking account with a debit card) Q 3 2 0 2 0 G R O S S D O L L A R V O L U M E G R O W T H 1 U S E C A S E S CHALLENGER BANKS G O V E R NM E NT HEALTHCARE CORPORATE SERVICES (e.g. payroll) G I FT 1 Q3 2020 over Q3 2019. 2 Per Nilsen Ratings and measured by Gross Dollar Volume. GDV GROWTH IS ACCELERATING WITHIN OUR PREPAID & DEBIT OFFERINGS

12 P A Y M E N T S B U S I N E S S : P A Y M E N T A C C E P T A N C E G R O U P 2. PAYMENT ACCEPTANCE GROUP Rapid Funds, merchant acquiring and ACH services B U S I N E S S O V E R V I E W : • Pioneering real - time payments offering has recognized consistent and significant growth • 2018 VISA Innovation Adoption Award winner • Non - interest income and deposit generation • “Direct 1 ” Rapid Funds model delivers a highly scalable, low cost offering that disrupts legacy payment methods for corporate disbursements • ACH sponsorship of large - scale payment processors • VISA/MasterCard sponsorship of large credit card acquiring ISOs 2 and their merchants LAUNCHED IN LATE 2017, RAPID FUNDS HAS GATHERED STRONG MOMENTUM U S E C A S E S EARNED WAGE ACCESS GIG ECONOMY INSURANCE CLAIM PAYOUTS WE’RE EXPANDING ON OUR EARLY SUCCESS & adding new partners across various use cases 1 “Direct” is comprised of corporations with which The Bancorp contracts directly. 2 Independent sales organization.

13 CONSISTENT DEPOSIT GROWTH FROM PAYMENTS BUSINESSES P A Y M E N T S B U S I N E S S : S T A B L E , L O W E R C O S T D E P O S I T G E N E R A T O R 1 Time deposits have rarely been used due to lower cost deposit growth and previous balances are included in “Other”. 2 Average for the quarter ended September 30, 2020. $ 3 , 8 1 9 $ 3 , 8 12 $ 3 , 862 $ 4 , 025 $ 5 , 564 $ 6 , 000 $ 5, 5 00 $ 5, 0 00 $ 4 , 500 $ 4 , 000 $ 3 , 500 $ 3 , 000 $ 2, 5 00 $ 2, 0 00 $ 1 , 500 $ 1 , 000 $ 500 $0 2016 2017 2018 2019 Q3 2020 A V E R A G E D E P O S I T S B Y P E R I O D ( M I L L I O N S ) Payment Solutions Group (Prepaid and Debit Issuance) Institutional Banking (checking and money market for higher net worth individuals) Payment Acceptance Group (ACH, Push to Card, Merchant Acceptance) Other (Includes time deposits 1 and other legacy deposit programs) COST OF DEPOSITS 0.30% 0.38% 0.67% 0.85% 0.12% HI GHLIGHTS • Stable, low cost deposit base anchored by multi - year, contractual relationships in our Prepaid and Debit issuance business • Payment Solutions growth driven by increased transactional volume due to favorable tailwinds from stimulus, electronic banking migration and overall savings increases among consumers • Low cost of funds declining in 2020 due to Fed rate cuts to ~zero in March DEPOSIT TYPE ( AVG.) B A L A NC E % TOTAL Demand & Int. checking 5 , 079 , 711 91% Savings & Money Market 484 , 32 3 9% Time Deposits 1 - 0% Total 2 $5.6B 1 00% Savings & Money Market 9% Time Deposits 0% Demand & Int. checking 91%

LOANS & LEASES: HIGHLY SPECIALIZED LENDING WITH LOW LOSS HISTORIES

15 LOWER CREDIT RISK LOAN PORTFOLIO L O A N S & L E A S E S : S T R O N G C O L L A T E R A L A N D G O V E R N M E N T G U A R A N T E E S BUSINESS LINE BALANCE SHEET CATEGORY Q 3 2020 PRINCIPAL BALANCE ($ MILLIONS) % OF TOTAL PO R T F O L I O Multifamily - commercial real estate (A) $ 1 , 463 3 4% Real Estate Capital Markets Hospitality - commercial real estate 63 1% Retail - commercial real estate 52 1% Other 25 0% Total 1,6 0 3 36% Securities backed lines of credit (SBLOC) (B) 1 , 069 2 5% Institutional Banking Insurance backed lines of credit (IBLOC) (C) 3 59 8% Advisor Financing 27 1% Total 1,455 34% U.S. government guaranteed portion of SBA loans (D) 334 8% Paycheck Protection Program Loans (PPP) (D) 2 08 5% Small Business Lending Commercial mortgage SBA (E) 165 4% Unguaranteed portion of U.S. govn’t guaranteed loans 98 2% Non - SBA small business loans 18 0% Construction SBA 13 0% Total 8 36 2 0 % Commercial Fleet Leasing Leasing (F) 4 31 10% Other Other 13 0% Total principal $ 4,338 1 00% LOWER C R E D I T L O S S NICHES A. Nationally recognized CRE analytics firm projects cumulative 1.2% COVID stress credit loss for multifamily. Loans are on books at 99 dollar price B. SBLOC loans backed by marketable securities with no incurred credit losses C. IBLOC loans are backed by the cash value of life insurance policies with no incurred 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 and relatively low historical charge - offs

16 INSTITUTIONAL BANKING L O A N S & L E A S E S : I N S T I T U T I O N A L B A N K I N G B U S I N E S S O V E R V I E W : • 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 • Launched Advisor Finance product to provide capital to transitioning financial advisors to facilitate M&A, debt restructuring, and the development of succession plans • Deposit accounts for wealth management clients • No historical credit losses H I G H L I G H T S : • Loan growth of 58% year over year with significant additional market opportunity • Launched Talea™ loan automation platform and implemented with key partners • 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. A L W AYS A P A R T NE R , NE VE R A C O M PE T I T O R $ 1.5 B P OR T F OL I O SI Z E 2.5 % 9/ 30/ 20 20 ES T . Y I E L D

17 INSTITUTIONAL BANKING PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING L O A N S & L E A S E S : I N S T I T U T I O N A L B A N K I N G L O A N P O R T F O L I O LOAN TYPE PRINCIPAL BALANCE % OF PORTFOLIO Securities backed lines of credit (SBLOC) $ 1, 0 6 9 7 3% Insurance backed lines of credit (IBLOC) 359 25% Advisor Financing 27 2% Total $ 1, 455 100% INSTITU TIONAL BANKING LOANS ( $ M ILL ION S ) 9/ 30/ 2020 SECURITIES BACKED LINES OF CREDIT • No historical credit losses • Underwriting standards of generally 50% to equities and 80% or more to fixed income securities PORTFOLIO ATTRIBUTES PRINCIPAL BALANCE % PRINCIPAL TO COLLATERAL $ 33 30% 17 39% 14 22% 1 2 33% 1 0 47% 1 0 3 1 % 9 23% 9 7 5% 9 4 9% 8 22% Total $ 1 3 1 35% T OP 10 S BLO C LO ANS ( $ M ILL IONS) 9/ 30/ 2020 INSURANCE BACKED LINES OF CREDIT • No historical credit losses • Loans backed by the cash value of whole life insurance policies

18 SMALL BUSINESS LENDING L O A N S & L E A S E S : S M A L L B U S I N E S S L E N D I N G B U S I N E S S O V E R V I E W : • 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 H I G H L I G H T S : • Loan growth of 13% year over year driven by increased origination productivity • Developed the SBAlliance™ program to provide lending support to banks and financial institutions who need SBA lending capabilities through products such as: • Wholesale loan purchases • Interim bridge financing for small business owners • Participated in the Payroll Protection Program (PPP) and originated $208M in short term loans, not included in the $628M above SBA and other small business lending $ 628 M P OR T F OL I O SI Z E 4.9 % 9/ 30/ 20 20 ES T . Y I E L D ~$ 700 K A V E R AG E 7 ( a) L O A N S I Z E

19 L O A N S & L E A S E S : S T R O N G C O L L A T E R A L & G O V E R N M E N T G U A R A N T E E S S MALL BUS INESS LO ANS BY T YP E 1 ( $ M I L LIO N S ) 9/ 30/ 2020 1 Excludes $334M of SBA loans that are government guaranteed and $208M 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 Florida representing 17% of total PORTFOLIO ATTRIBUTES TYPE S B L C OMMER C I A L MORT G A GE S B L C O NS TR UC T I O N SBL NON - REAL E S TATE TOTAL Hotels $ 66 $ 2 $ - $ 68 Professional services offices 21 - 3 24 Full - service restaurants 15 1 4 20 Child day care and youth services 15 - 1 16 Bakeries 4 - 12 16 Fitness/rec centers and instruction 2 8 2 12 General warehousing and storage 11 - - 11 Limited - service restaurants and catering 7 - 3 10 Elderly assisted living facilities 7 - 2 9 Amusement and recreation industries 4 2 3 9 Car washes 5 3 - 8 Funeral homes 7 - - 7 New and used car dealers 4 - - 4 Automotive servicing 3 - - 3 Other 51 - 26 77 Total $ 222 $ 16 $ 56 $ 294 S MALL BUS INESS LO ANS BY STATE 1 ( $ M ILLI ON S) 9/ 30/ 2020 STATE S B L C OMMER C I A L MORT G A GE S B L C O NS TR UC T I O N SBL NON - REAL E S TATE TOTAL Florida $ 35 $ 8 $ 8 $ 51 California 36 2 5 43 Pennsylvania 30 - 4 34 Illinois 26 - 3 29 North Carolina 19 3 3 25 New York 10 2 5 17 Texas 11 - 5 16 Tennessee 11 - 1 12 New Jersey 3 1 7 11 Virginia 9 - 2 11 Georgia 5 - 2 7 Colorado 3 - 1 4 Michigan 3 - 1 4 Washington 3 - - 3 Ohio 2 - 1 3 Other states 16 - 8 24 Total $ 222 $ 16 $ 56 $ 294 SMALL BUSINESS LENDING

20 L O A N S & L E A S E S : C O M M E R C I A L F L E E T L E A S I N G B U S I N E S S O V E R V I E W : • Niche provider of vehicle leasing solutions • Focus on smaller fleets (less that 150 vehicles) • Direct lessor (The Bancorp Bank 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%) and government - related business (~20%) H I G H L I G H T S : • Reengineering the operating platform to enable sustained and efficient growth • Enhancing sales process and support functions • Pursuing technology enhancements to scale business with efficiency • Constantly evaluating organic and inorganic growth opportunities in the vehicle space Niche - vehicle fleet leasing solutions COMMERCIAL FLEET LEASING $ 4 3 1 M P OR T F OL I O SI Z E 6.3 % 9/ 30/ 20 20 ES T . Y I E L D

21 L O A N S & L E A S E S : C O M M E R C I A L F L E E T L E A S I N G P O R T F O L I O OVERVIEW • Largest concentration is government sector • Of the $431M total portfolio, $401M is vehicle leases with the remaining $30M made up of equipment leases PORTFOLIO ATTRIBUTES TYPE B A L A NCE TOTAL Government agencies and public institutions $ 76 18% Construction 74 18% Waste management and remediation services 61 14% Real estate, rental and leasing 44 10% Retail trade 36 8% Transportation and warehousing 35 8% Health care and social assistance 26 6% Professional, scientific, and technical services 19 4% Wholesale trade 14 3% Manufacturing 14 3% Educational services 9 2% Arts, entertainment, and recreation 5 1% Other 18 5% Total $ 431 1 00% DIR ECT LEASE F INANCING BY STATE ( $ M ILL ION S ) 9/ 30/ 2020 COMMERCIAL FLEET LEASING STATE B A L A NCE TOTAL Florida $ 92 2 0% California 30 7% New Jersey 29 7% Pennsylvania 26 6% New York 25 6% North Carolina 22 5% Utah 21 5% Maryland 20 5% Washington 16 4% Georgia 12 3% Missouri 12 3% Connecticut 12 3% Texas 12 3% Alabama 11 3% South Carolina 9 2% Other states 82 18% Total $ 431 1 00% DIR ECT LEASE F INANCING BY T YP E ( $ M ILLI ON S) 9/ 30/ 2020

22 REAL ESTATE CAPITAL MARKETS L O A N S & L E A S E S : R E A L E S T A T E C A P I T A L M A R K E T S TYPE # LOANS B A L ANCE O RI GI N A T I O N DATE LTV WEIGHTED AVG MIN INTEREST RATE % TOTAL Multifamily (apartments) 173 $ 1,463 76% 4 . 8% 91% Hospitality (hotels and lodging) 11 63 65% 5 . 7% 4% Retail 8 52 70% 4 . 6% 3% Other 7 25 70% 5 . 2% 2% Total 199 $ 1,603 75% 4. 8 % 1 00% COMMERCIAL R EAL ES T AT E LO ANS BY T YP E ( $ M I LL ION S ) 9/ 30/ 2020 B U S I N E S S O V E R V I E W : • Strategic determination made in Q3 to discontinue future securitization activity • We expect income from the portfolio to be stable over the next 2 years • Entire portfolio is at LIBOR interest rate floors and yields 4.8% as of Q3 2020 Commercial real estate loans STATE B A L ANCE O RI GI N A T I O N DATE LTV Texas $ 3 96 76% Georgia 2 52 78% Arizona 1 23 76% North Carolina 111 77% Nevada 56 80% Alabama 54 76% Other states each <$50 million 611 7 3% Total $ 1,6 0 3 75% COMMERCIAL R EAL ES T AT E LO ANS BY STATE ( $ M ILL ION S ) 9/ 30/ 2020 MULTI - FAMILY – 91% LODGING – 4% RETAIL – 3% OTHER - 2% A S S E T C L A S S E S - % P O R T F O L I O OVERVIEW • Vast majority of loans are multifamily including all of the top 15 exposures • Commercial real estate loans are in “Commercial loans, at fair value” category on balance sheet PORTFOLIO ATTRIBUTES

FINANCIAL REVIEW

24 3.4% NIM & SIGNIFICANT NET INTEREST INCOME GROWTH IN Q3 DESPITE 0% FRB RATE ENVIRONMENT 1 F I N A N C I A L R E V I E W : I N T E R E S T R A T E S E N S I T I V I T Y 1 In the unlikely event of negative interest rates, $1.1B of demand securities loans and $0.4B of cash value insurance loans would be repriced with floors to maintain adequate margins. 2 Loans are as of September 30, 2020 and deposits are average balance for Q3 2020. 3 Institutional Banking substantially comprised of securities backed loans and insurance backed loans. 4 Excludes $208M of short - term PPP loans which are fully government guaranteed and deferred costs and fees. Q3 BALANCE 2 ( $ MIL L ION S ) RATE SENSITIVITY Real Estate Capital M ark e ts $ 1 , 60 3 4.8% avg. floor and yield will increase as rates exceed floors Institutional Banking 3 $ 1 , 455 Majority of loan yields will increase as rates increase Small Business 4 $62 8 Majority of loan yields will increase as rates increase L e a s i n g $ 4 3 1 Fixed rates but short average lives T otal $ 4 , 117 Core Lending businesses account for 95% of the total $4,338 loans Total Deposits $ 5 , 5 6 4 Adjusts to a portion of rate increases in line with partner contracts C o r e L e n d i n g Bu s i n e s s e s HI GHLIGHTS x Floating rate lending businesses include Real Estate Capital Markets, SBLOC, IBLOC and Small Business x Deposits primarily comprised of prepaid and debit accounts and anchored by multi - year, contractual relationships x Interest income should increase in higher interest rate environments

25 REVENUE HAS GROWN CONSISTENTLY SINCE 2016 WHILE EXPENSES HAVE BEEN TIGHTLY MANAGED, CREATING OPERATING LEVERAGE F I N A N C I A L R E V I E W : E A R N I N G S A N D P R O F I T A B I L I T Y 1 Core revenue is net interest income plus non - interest income excluding gains/losses from sales of securities, changes in valuation to Walnut Street and the sales of Health Savings Accounts, the European payments business, and the IRA portfolio. 2 Includes $24.3 million of gains on commercial loans originated for sale, primarily through two securitizations. $0 $ 50 $ 100 $ 150 $ 200 2 0 1 6 2 0 1 7 2 0 1 8 2 0 19 $0 $ 50 $ 100 $ 150 $ 200 2 0 1 6 2 0 1 7 2 0 1 8 2 0 19 Q3 YTD Q3 YTD 2019 2020 N O N - I N T E R E S T E X P E N S E C O R E R E V E N U E 1 $ Millions $ 250 $ Millions $250 R EV E NU E • Annual revenue growth driven by diverse product mix • Larger portion of revenue from non - interest income compared to peer banks • Net interest income growth driven by growth in balances across business lines E X PE NS E • Expenses have been tightly managed since 2017 • Expense saves have continued to be realized and have funded critical BSA and other infrastructure which has attracted new clients • 2019 includes a $7.5M civil money penalty related to consent order remediation. In 2020, subsequent to the civil money penalty, the related consent order was lifted +47% ’16 - ‘19 (15%) ’16 - ’19 Q3 YTD Q3 YTD 2019 2 2020

26 $0 $2 $4 $6 $8 $ 10 $ 12 $ 14 $ 16 2 0 17 2 0 18 2 0 19 Q3 2020 ALLOWANCE FOR CREDIT LOSSES REFLECTS OUR LOWER RISK LOAN PORTFOLIO F I N A N C I A L R E V I E W : L O A N L O S S R E S E R V E A L L O W A N C E F O R C R E D I T L O S S E S ( $ M I L L I O N S ) Small Business SBLOC/IBLOC/Advisor Financing HELOC/Consumer/Other Allowance for credit losses as % of loan b a l a n c e 0.6% 0.6% 0 .6% 0.6% Allowance for credit losses as % of loan balance (excluding SBLOC & IBLOC) 1.2% 1.2% 1.2% 1.4% HI GHLIGHTS CONTINUING OPERATIONS • Increases in allowance for credit losses driven partially by CECL adoption in Q1 and potential COVID impact • Fair value adjustments to the capital markets commercial real estate portfolio in 2020 were driven by potential COVID - related unrealized losses DISCONTINUED OPERATIONS • Discontinued portfolio only 2% of total loans • Minimal losses in Discontinued Operations line item and Walnut Street through Q3 2020 Leasing

27 CAPITAL POSITION F I N A N C I A L R E V I E W : H I S T O R I C A L C A P I T A L P O S I T I O N HI GHLIGHTS • Corporate governance requires periodic assessment of capital minimums • Financial and strategic planning emphasize capital • Capital planning includes stress testing for unexpected conditions and events 0% 5% 1 0% 1 5% 2 0 % 2 5 % 2 0 17 2 0 18 2 0 19 Q3 2020 Tier 1 Leverage Ratio 7.9% 10.1% 9.6% 8 .6% Tier 1 Risk - based Capital Ratio (RBC) 1 16% 20% 19% 14% Total Risk - based Capital Ratio 17% 21% 19% 15% Tier1 Capital Ratio (8% - Well - capitalized minimum) Total RBC Ratio (10% - Well - capitalized minimum) Tier 1 Leverage Ratio (5% - Well - capitalized minimum) T H E B A N C O R P I N C . C A P I T A L R A T I O S 2020 Q3 1 Tier 1 risk - based ratio is identical to Common Equity Tier 1 to risk weighted assets and has a 6.5% well capitalized minimum

28 F I N A N C I A L R E V I E W : E A R N I N G S A N D P R O F I T A B I L I T Y K E Y S T O A C H I E V I N G F I N A N C I A L T A R G E T S x Established a new Payments Ecosystem 2 . 0 which satisfies regulators and i s scalable x Invested in technology/innovation x Maintained an industry leading compliance & r i sk function x Expanded salesforce and marketing function in key markets x Attracted & retain the best talent x Build upon strong capital base through retained earnings x Lifted consent order: the 2014 consent order was l i f ted in May 2020 and the 2015 consent order i s pending review by regulators P E R F O R M A N C E M E T R I C S 2 0 1 7 2 0 1 8 2 0 1 9 Q 3 2 0 2 0 L O N G - T E R M T A R G E T S ROAE 7.0% 24.3% 11.6% 16.9% 1 20% ROAA 0.52% 2.07% 1.09% 1.48% 1 > 2.0% EPS $0.39 $1.55 $0.90 $0.40 Leverage Ratio 7.9% 10.1% 9.6% 8.6% 9% – 10% Total Assets $4.7B $4.4B $5.7B $6.2B ~$8.0B Efficiency Ratio 2 79% 71% 65% 57% 1 1 Annualized for the three months ended September 30, 2020. 2 Efficiency ratio calculated by dividing non - interest expense by the total of net interest income and non - interest income. Non - interest income excludes gains/losses from sales of securities, changes in valuation to Walnut Street, and the sales of the Health Savings Account portfolio, the European payments business and the IRA portfolio. Expense excludes $8.9 million of total civil money penalties in 2019. BY EXECUTING OUR STRATEGIC PLAN, WE EXPECT TO DELIVER MARKET - LEADING RETURNS & CREATE VALUE FOR SHAREHOLDERS

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