The Bancorp, Inc. (TBBK) 8-K The Bancorp, Inc. Reports Fourth Quarter 2010 Financial Results

Exhibit 99.1

The Bancorp, Inc. Reports Fourth Quarter 2010 Financial Results

Wilmington, Delaware – January 26, 2011 - The Bancorp, Inc. ("Bancorp") (NASDAQ: TBBK), a financial holding company, today reported results for the quarter ended December 31, 2010.

Financial Highlights

-   Fourth quarter 2010 diluted earnings per share of $0.08, as compared to diluted loss per share of $0.04 in the fourth quarter 2009.

-   Net income increased to $2.0 million in the fourth quarter of 2010 from $33,000 in fourth quarter 2009, before preferred stock dividends and accretion (TARP repaid March 10, 2010).

-   Non-interest income, excluding security gains and losses, increased to $5.4 million, representing a 64% increase over fourth quarter 2009.

-   Net interest income increased by 8% to $18.2 million over fourth quarter 2009.

-   Total non-performing loans and loans 90 days past due and accruing interest declined to 1.08% of total loans at December 31, 2010, compared to 1.66% at the prior year end.

-   Average loans for the fourth quarter totaled $1.6 billion, an increase of $85 million or 6% over fourth quarter 2009.

-   Average deposits for the fourth quarter totaled $2.1 billion, an increase of $524 million or 32% over fourth quarter 2009, while transaction accounts grew to 99% of total average deposits. The average cost of funds between those respective periods decreased to 0.61% from 0.86%.

Betsy Z. Cohen, Bancorp’s Chief Executive Officer, said, “We are pleased to report meaningful increases in non-interest income and net interest income. Although the provision for loan and lease losses remained elevated during the quarter; operating earnings, excluding the provision, amounted to $7.2 million compared to $5.8 million in fourth quarter 2009. Additionally, improvement in several key asset quality indicators is reflected in the decrease in total non-performing assets and loans over 90 days past due still accruing. Those categories totaled $19.6 million at December 31, 2010, compared to $25.7 million at the prior year end, or a decrease of 24%, while the allowance for loan losses to total loans increased to 1.49% from 1.26% over that period.  In a weak economy, we grew our average quarterly loans by 6%, an d have begun closing Small Business Administration loans. We also have developed new relationships to market our security backed lines of credit and are optimistic about growth in that area.  We continue to grow prepaid relationships with our pipeline of prepaid customers.”

Financial Results

Bancorp reported net income available to common shareholders for the three months ended December 31, 2010 of $2.0 million or $0.08 diluted earnings per share, on 26,181,354weighted average shares, compared to a net loss available to common shareholders of $932,000 or a diluted loss per share of $0.04, based on 26,181,291weighted average shares, for the three months ended December 31, 2009.  Core operating earnings as shown below, a non-GAAP measure, increased to $7.2 million for the three months ended December 31, 2010 as compared to $5.8 million for the three months ended December 31, 2009.  The following is a reconciliation of core operating earnings to GAAP net income available to common shareholde rs (for the three month periods):

	December 31,		December 31,
	2010		2009
Net income (loss) available to common shareholders	$	2,041	$	(932	)
Preferred stock dividends and accretion		-		965
Income tax expense		946		17
(Gains) and losses on securities		14		(436	)
Other than  temporary impairment in securities		-		2,225
Provision for loan and lease losses		4,212		4,000
Core operating earnings (1)	$	7,213	$	5,839

(1)   As a supplement to GAAP, Bancorp has provided this non-GAAP performance result. The Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance, specifically its overall earnings capacity.  Other companies may calculate core earnings differently.  Although this non-GAAP financial measure is intended to enhance investors’ understanding of Bancorp’s business and performance, it should not be considered, and is not intended to be, a substitute for GAAP.

Balance Sheet Summary

At December 31, 2010, Bancorp's total assets were $2.4 billion, an increase of $350 million or 17% over December 31, 2009. During that period, investments increased to $253 million, an increase of $138 million or 120%; loans increased to $1.6 billion, an increase of $95 million or 6%; and deposits increased to $2.0 billion, an increase of $370 million or 22%.

Conference Call Webcast

You may access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 10:30 AM EST Thursday, January 27, 2011 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 866.730.5769 using access code 21625636.  You may listen to the replay of the webcast following the live call on Bancorp's investor relations website or telephonically until Thursday, February 3, 2011 by dialing 888.286.8010, access code 16943233.

About Bancorp

The Bancorp, Inc. is a financial holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity programs nationwide.  The Bancorp Bank’s regional community bank operations serve the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.

Forward Looking Statements

Statements in this earnings release regarding The Bancorp, Inc.’s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. 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,” “estimate,” “continue,” or similar words.  For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp, Inc.’s filings with the SEC, including the “Risk Factors” sections of The Bancorp Inc.’s filings. These risks and uncertainties could cause actual results to differ materially from those pro jected in the 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.

The Bancorp, Inc. Contact

Andres Viroslav

215-861-7990

andres.viroslav@thebancorp.com

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The Bancorp, Inc.
Financial highlights
(unaudited)
	Three months ended							Year ended
	December 31,							December 31,
	2010			2009				2010			2009
	(dollars in thousands except per share data)							(dollars in thousands except per share data)
Condensed income statement
Net interest income	$	18,174			$	16,849		$	68,193		$	63,709
Provision for loan and lease losses		4,212				4,000			19,287			13,000
Non-interest income
Gain and losses on securities		(14	)			436			1,207			1,106
Other than temporary impairment of investment securities		-				(2,225	)		(135	)		(2,225	)
Other non-interest income		5,372				3,272			19,524			12,576
Total non-interest income		5,358				1,483			20,596			11,457
Non-interest expense
Loss on other real estate owned		-				-			22			1,700
Other non-interest expense		16,333				14,282			61,726			54,116
Total non-interest expense		16,333				14,282			61,748			55,816
Net income before income tax expense		2,987				50			7,754			6,350
Income tax expense		946				17			2,532			2,248
Net income		2,041				33			5,222			4,102
Less preferred stock dividends		-				(565	)		(433	)		(2,293	)
Less preferred stock accretion		-				(400	)		(5,809	)		(1,467	)
Net income (loss) available to common shareholders	$	2,041			$	(932	)	$	(1,020	)	$	342
Basic earnings (loss) per share	$	0.08			$	(0.04	)	$	(0.04	)	$	0.02
Diluted earnings (loss) per share	$	0.08			$	(0.04	)	$	(0.04	)	$	0.02
Weighted average shares - basic		26,181,281				26,181,291			26,181,281			18,794,590
Weighted average shares - diluted		26,181,354				26,181,291			26,181,281			19,324,335

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Balance sheet	December 31			September 30			June 30			December 31
	2010			2010			2010			2009
Assets:
Cash and cash equivalents
Cash and due from banks	$	157,411		$	164,948		$	92,620		$	135,246
Interest bearing deposits		314,908			584,857			171,054			219,213
Total cash and cash equivalents		472,319			749,805			263,674			354,459
Investment securities, available-for-sale, at fair value		231,165			249,342			208,080			93,478
Investment securities, held-to-maturity		21,364			21,354			21,496			21,468
Loans, net of deferred costs		1,619,195			1,590,507			1,576,525			1,523,722
Allowance for loan and lease losses		(24,063	)		(21,798	)		(22,336	)		(19,123	)
Loans, net		1,595,132			1,568,709			1,554,189			1,504,599
Premises and equipment, net		8,767			8,602			8,229			7,942
Accrued interest receivable		8,878			8,396			8,483			7,722
Intangible assets, net		9,005			9,255			9,505			10,005
Other real estate owned		2,115			225			459			459
Deferred tax asset, net		21,872			19,434			20,258			20,875
Other assets		23,327			24,554			29,497			22,527
Total assets	$	2,393,944		$	2,659,676		$	2,123,870		$	2,043,534
Liabilities:
Deposits
Demand  (non-interest bearing)	$	945,605		$	1,402,538		$	827,268		$	661,383
Savings, money market and interest checking		975,973			1,001,959			903,599			850,306
Time deposits		90,862			9,218			1,178			125,255
Time deposits, $100,000 and over		11,657			8,672			149,562			17,565
Total deposits		2,024,097			2,422,387			1,881,607			1,654,509
Securities sold under agreements to repurchase		14,383			9,429			7,552			2,588
Short-term borrowings		87,000			-			-			100,000
Federal funds purchased		49,000			-			-			-
Accrued interest payable		124			109			165			362
Subordinated debenture		13,401			13,401			13,401			13,401
Other liabilities		7,033			12,918			17,367			27,471
Total liabilities	$	2,195,038		$	2,458,244		$	1,920,092		$	1,798,331
Shareholders' equity:
Series B, $1,000 liquidation value, 0 and 45,220 shares issued and outstanding at December 31, 2010 and 2009, respectively		-			-			-			39,411
Common stock - authorized, 50,000,000 shares of $1.00  par value; 26,181,281 issued and outstanding at December 31, 2010 and 2009, respectively		26,181			26,181			26,181			26,181
Additional paid-in capital		192,711			192,492			197,027			196,875
Accumulated deficit		(18,195	)		(20,236	)		(20,824	)		(17,175	)
Accumulated other comprehensive (loss) gain		(1,791	)		2,995			1,394			(89	)
Total shareholders' equity		198,906			201,432			203,778			245,203
Total liabilities and shareholders' equity	$	2,393,944		$	2,659,676		$	2,123,870		$	2,043,534

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Average balance sheet and net interest income	Three months ended December 31, 2010								Three months ended December 31, 2009
(Dollars in thousands)	Average					Average			Average					Average
Assets:	Balance			Interest		Rate			Balance			Interest		Rate
Interest-earning assets:
Loans net of unearned discount	$	1,597,630		$	19,048		4.77	%	$	1,515,632		$	18,666		4.93	%
Leases – nontaxable*		2,646			48		7.26	%		-			-
Investment securities-taxable		192,716			1,530		3.18	%		111,548			1,198		4.30	%
Investment securities-nontaxable*		76,401			1,029		5.39	%		34,709			712		8.21	%
Interest bearing deposits at Federal Reserve Bank		332,010			207		0.25	%		79,122			51		0.26	%
Federal funds sold		-			-		0.00	%		39,243			30		0.31	%
Net interest-earning assets		2,201,403			21,862		3.97	%		1,780,254			20,657		4.64	%
Allowance for loan and lease losses		(22,660	)							(18,946	)
Other assets		200,647								157,708
	$	2,379,390							$	1,919,016
Liabilities and Shareholders' Equity:
Deposits:
Demand  (non-interest bearing)	$	1,119,463		$	417		0.15	%	$	741,239		$	97		0.05	%
Interest bearing deposits
Interest checking		684,740			1,793		1.05	%		420,498			1,688		1.61	%
Savings and money market		303,749			823		1.08	%		375,530			1,297		1.38	%
Time		29,481			63		0.85	%		76,192			218		1.14	%
Total interest bearing deposits		1,017,970			2,679		1.05	%		872,220			3,203		1.47	%
Total deposits		2,137,433			3,096		0.58	%		1,613,459			3,300		0.82	%
Short-term borrowings		4,272			8		0.75	%		29,837			50		0.67	%
Repurchase agreements		12,126			9		0.30	%		1,602			4		1.00	%
Subordinated debt		13,401			216		6.45	%		13,401			216		6.45	%
Net interest bearing liabilities		1,047,769			2,912		1.11	%		917,060			3,473		1.51	%
Total cost of funds		2,167,232			3,329		0.61	%		1,658,299			3,570		0.86	%
Other liabilities		8,423								12,456
Total Liabilities		2,175,655								1,670,755
Shareholders' equity		203,735								248,261
	$	2,379,390							$	1,919,016
Net interest income on tax equivalent basis*					18,533								17,087
Tax equivalent adjustment					359								238
Net interest income				$	18,174							$	16,849
Net interest margin *							3.36	%							3.84	%
* Taxable equivalent basis for comparability to other interest categories, using a 34% statutory tax rate

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Average balance sheet and net interest income	Year ended December 31, 2010								Year ended December 31, 2009
(Dollars in thousands)	Average					Average			Average					Average
Assets:	Balance			Interest		Rate			Balance			Interest		Rate
Interest-earning assets:
Loans net of unearned discount	$	1,567,947		$	73,741		4.70	%	$	1,477,614		$	73,074		4.95	%
Leases - bank qualified		1,038			48		4.62	%		-			-		0.00	%
Investment securities-taxable		164,238			6,181		3.76	%		107,695			5,017		4.66	%
Investment securities-nontaxable*		48,913			2,919		5.97	%		25,449			2,041		8.02	%
Interest bearing deposits at Federal Reserve Bank		327,943			817		0.25	%		39,271			87		0.22	%
Federal funds sold		-			-		0.00	%		70,061			234		0.33	%
Net interest-earning assets		2,110,079			83,706		3.97	%		1,720,090			80,453		4.68	%
Allowance for loan and lease losses		(21,676	)							(18,632	)
Other assets		183,850								135,917
	$	2,272,253							$	1,837,375
Liabilities and Shareholders' Equity:
Deposits:
Demand (non-interest bearing)	$	1,011,667		$	1,311		0.13	%	$	529,477		$	406		0.08	%
Interest bearing deposits
Interest checking		622,116			7,870		1.27	%		365,715			5,937		1.62	%
Savings and money market		311,251			3,921		1.26	%		516,356			5,959		1.15	%
Time		69,169			457		0.66	%		151,791			2,510		1.65	%
Total interest bearing deposits		1,002,536			12,248		1.22	%		1,033,862			14,406		1.39	%
Total deposits		2,014,203			13,559		0.67	%		1,563,339			14,812		0.95	%
Short-term Borrowings		13,464			89		0.66	%		44,895			329		0.73	%
Repurchase agreements		8,637			27		0.31	%		2,175			26		1.20	%
Subordinated debt		13,211			864		6.54	%		13,401			883		6.59	%
Net interest bearing liabilities		1,037,848			13,228		1.27	%		1,094,333			15,644		1.43	%
Total cost of funds		2,049,515			14,539		0.71	%		1,623,810			16,050		0.99	%
Other liabilities		9,569								7,608
Total Liabilities		2,059,084								1,631,418
Shareholders' equity		213,169								205,957
	$	2,272,253							$	1,837,375
Net interest income on tax equivalent basis*					69,167								64,403
Tax equivalent adjustment					974								694
Net interest income				$	68,193							$	63,709
Net interest margin *							3.28	%							3.74	%
* Full taxable equivalent basis to be comparable to the interest income of all other categories, using a 34% statutory tax rate

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Allowance for loan and lease losses:	For year ended			For year ended
	December 31,			December 31,
	2010			2009
Balance in the allowance for loan and lease losses at beginning of period	$	19,123		$	17,361
Loans charged-off:
Commercial		12,948			6,314
Construction		565			4,546
Lease financing		3			49
Residential mortgage		1,254			328
Consumer		618			127
Total		15,388			11,364
Recoveries:
Commercial		254			53
Construction		29			32
Lease financing		10			27
Residential mortgage		742			12
Consumer		6			2
Total		1,041			126
Net charge-offs		14,347			11,238
Provision charged to operations		19,287			13,000
Balance in allowance for loan and lease losses at end of period	$	24,063		$	19,123
Net charge-offs/average loans		0.92	%		0.76	%

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Loan portfolio:	December 31		September 30,		June 30,		December 31,
	2010		2010		2010		2009
Commercial	$	441,835	$	409,697	$	403,320	$	402,232
Commercial mortgage  (1)		580,780		580,491		580,542		569,434
Construction		203,120		206,551		207,846		207,184
Total commercial loans		1,225,735		1,196,739		1,191,708		1,178,850
Direct financing leases		103,289		103,278		96,319		78,802
Residential mortgage		93,004		93,833		95,542		85,759
Consumer loans and others		194,320		193,968		190,729		178,608
		1,616,348		1,587,818		1,574,298		1,522,019
Unamortized costs (fees)		2,847		2,689		2,227		1,703
Total loans, net of unamortized fees and costs	$	1,619,195	$	1,590,507	$	1,576,525	$	1,523,722
Supplemental loan data :
Construction 1-4 family		92,190		95,905		102,730		100,088
Construction commercial, acquisition and development		110,930		110,646		105,116		107,096
	$	203,120	$	206,551	$	207,846	$	207,184
(1) At December 31, 2010 our owner-occupied loans amounted to $127 million, or 22% of commercial mortgages.

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	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Asset quality ratios:
Nonperforming loans to total loans (1)		1.08	%		1.51	%		1.82	%		1.44	%		1.66	%
Nonperforming assets to total assets (1)		0.82	%		0.91	%		1.37	%		1.08	%		1.26	%
Allowance for loan and lease losses to total loans		1.49	%		1.37	%		1.42	%		1.33	%		1.26	%
Nonaccrual loans	$	15,298		$	19,640		$	18,193		$	17,863		$	12,270
Total nonperforming loans		15,298			19,640			18,193			17,863			12,270
Other real estate owned		2,115			225			459			648			459
Total nonperforming assets	$	17,413		$	19,865		$	18,652		$	18,511		$	12,729
Loans 90 days past due still accruing interest	$	2,219		$	4,352		$	10,529		$	4,071		$	12,994
(1) Nonperforming loans are defined as nonaccrual loans and restructure loans. Loans 90 days past due and still accruing interest are also included in these ratios.

	Three months ended						Year ended
	December 31,						December 31,
	2010			2009			2010			2009
Selected operating ratios:
Return on average assets		0.34	%		0.01	%		0.23	%		0.22	%
Return on average equity		4.01	%		0.05	%		2.45	%		1.99	%
Net interest margin		3.36	%		3.84	%		3.28	%		3.74	%
Efficiency ratio (1)		69.37	%		71.11	%		70.52	%		73.29	%
Book value per share (2)	$	7.60		$	7.64		$	7.60		$	7.64
(1) Excludes OREO loss in 2009.
(2) Excludes Series B Preferred Shares issued to the U.S. Treasury and the associated book value.

Capital Ratios

	Tier 1 capital			Tier 1 capital			Total capital
	to average			to risk-weighted			to risk-weighted
	assets ratio			assets ratio			assets ratio
As of  December  31, 2010
The Company		8.37	%		11.99	%		13.24	%
The Bancorp Bank		7.39	%		10.60	%		11.85	%
"Well capitalized" institution (under FDIC regulations)		5.00	%		6.00	%		10.00	%
As of December 31, 2009
The Company		12.68	%		15.81	%		17.06	%
The Bancorp Bank		8.78	%		10.97	%		12.22	%
"Well capitalized" institution (under FDIC regulations)		5.00	%		6.00	%		10.00	%

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