The Bancorp, Inc. (TBBK) 8-K The Bancorp, Inc. Reports First Quarter 2011 Financial Results

Exhibit 99.1

The Bancorp, Inc. Reports First Quarter 2011 Financial Results

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

Financial Highlights

-   Net income increased to $2.7 million in first quarter 2011 compared to $2.2 million in first quarter 2010, prior to $6.2 million of charges in 2010 related to the repayment of TARP and other TARP costs.

-   First quarter 2011 diluted earnings per share increased to $0.10, compared to $0.08 in first quarter 2010, prior to $6.2 million of charges in 2010 related to the repayment of TARP and other TARP costs.

-   Non-interest income, excluding security gains, increased to $7.8 million compared to $4.7 million in first quarter 2010, reflecting significant increases in prepaid and debit card income. Non-interest income excluding a $485,000 legal settlement in favor of the Bancorp in 2011, increased 55% between those periods. That increase was driven primarily by prepaid card income, which increased $1.9 million or 69% between those periods.

-   Average loans and leases for first quarter 2011 totaled $1.6 billion, an increase of $112 million or 7% over first quarter 2010. Average securities for first quarter 2011 totaled $263 million, an increase of $102 million, or 63% over first quarter 2010.

-   Average deposits for first quarter 2011 totaled $2.7 billion, an increase of $645 million or 31% over first quarter 2010, while transaction accounts grew to 98% of total average deposits. The average cost of funds between those respective periods decreased to 0.41% from 0.70%.

-   A successful stock offering was concluded during the quarter. Shareholders’ equity was increased by approximately $54.5 million to fund our continuing growth opportunities.

Betsy Z. Cohen, Bancorp’s Chief Executive Officer, said, “Our net-interest income totaled $18.2 million in first quarter 2011, an increase of $1.9 million, or 12% over first quarter 2010.  Larger loan and security balances and a lower cost of funds were the drivers behind the increase. Our core earnings for the quarter, as detailed below, increased $2.1 million over the prior year same quarter reflecting the increase in net interest income and the 69% increase in prepaid card income. Our SBA (Small Business Administration) program is moving forward, and we are carefully approving new franchisors. Our recent SBA PLP (Preferred Lending Program) designation should add momentum to the program’s growth.”

Financial Results

Bancorp reported net income available to common shareholders for the three months ended March 31, 2011 of $2.7 million or diluted earnings per share of $0.10, based on 28,058,333weighted average shares, compared to a net loss available to common shareholders of $4.1 million or a loss per share of $0.15, based on 26,181,281weighted average shares, for the three months ended March 31, 2010.  Core operating earnings, a non-GAAP measure, increased to $8.9 million for the three months ended March 31, 2011 compared to $6.8 million for the three months ended March 31, 2010.  The following is a reconciliation of core operating earnings to net income available to common shareholders (for the three month period):

	March 31,		March 31,
	2011		2010
Net income (loss) available to common shareholders	$	2,688	$	(4,056	)
Preferred stock dividend and accretion		-		6,242
Income tax expense		1,431		1,233
Gains on sales of investment securities		-		(750	)
Other than temporary impairment of securities		75		-
Provision for loan and lease losses		4,672		4,148
Core operating earnings (1)	$	8,866	$	6,817

(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.

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 March 31, 2011
The Company		8.62	%		15.33	%		16.58	%
The Bancorp Bank		6.00	%		10.69	%		11.94	%
"Well capitalized" institution (under FDIC regulations)		5.00	%		6.00	%		10.00	%
As of March 31, 2010
The Company		8.64	%		13.08	%		14.33	%
The Bancorp Bank		7.41	%		11.23	%		12.48	%
"Well capitalized" institution (under FDIC regulations)		5.00	%		6.00	%		10.00	%

Balance Sheet Summary

At March 31, 2011, Bancorp's total assets were $2.8 billion, an increase of $744 million or 36% over total assets at March 31, 2010. During that period, investments increased to $295 million, an increase of $117 million or 66%; loans increased to $1.6 billion, an increase of $109 million or 7%; and deposits increased to $2.5 billion, an increase of $669 million or 36%.

Conference Call Webcast

You may access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 10:00 AM EDT Tuesday, April 26, 2011 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. Or, you may dial 800.901.5248 using access code 21180968.  You may listen to the replay of the webcast following the live call on Bancorp's investor relations website or telephonically until Tuesday, May 3, 2011 by dialing 888.286.8010, access code 97477604.

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 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 projected 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

The Bancorp, Inc.
Financial highlights
(unaudited)
	Three months ended						Year ended
	March 31,						December 31,
	2011			2010			2010
	(dollars in thousands except per share data)
Condensed income statement
Net interest income	$	18,198		$	16,280		$	68,193
Provision for loan and lease losses		4,672			4,148			19,287
Non-interest income
Gain on sales of investment securities		-			750			1,207
Other than temporary impairment of investment securities		(75	)		-			(135	)
Other non-interest income		7,820			4,744			19,524
Total non-interest income		7,745			5,494			20,596
Non-interest expense
Loss on other real estate owned		52			20			22
Other non-interest expense		17,100			14,187			61,726
Total non-interest expense		17,152			14,207			61,748
Net income before income tax expense		4,119			3,419			7,754
Income tax expense		1,431			1,233			2,532
Net income		2,688			2,186			5,222
Less preferred stock dividends		-			(433	)		(433	)
Less preferred stock accretion		-			(5,809	)		(5,809	)
Net income (loss) available to common shareholders	$	2,688		$	(4,056	)	$	(1,020	)
Basic earnings (loss) per share	$	0.10		$	(0.15	)	$	(0.04	)
Diluted earnings (loss) per share	$	0.10		$	(0.15	)	$	(0.04	)
Weighted average shares – basic		28,051,948			26,181,281			26,181,281
Weighted average shares – diluted		28,058,333			26,181,281			26,181,281

Balance sheet	March 31,			December 31,			September 30,			March 31,
	2011			2010			2010			2010
	(dollars in thousands)
Assets:
Cash and cash equivalents
Cash and due from banks	$	223,420		$	157,411		$	164,948		$	106,316
Interest bearing deposits		630,524			314,908			584,857			232,117
Total cash and cash equivalents		853,944			472,319			749,805			338,433
Investment securities, available-for-sale, at fair value		273,643			231,165			249,342			156,191
Investment securities, held-to-maturity		21,298			21,364			21,354			21,488
Loans, net of deferred costs		1,636,253			1,619,195			1,590,507			1,527,691
Allowance for loan and lease losses		(25,802	)		(24,063	)		(21,798	)		(20,357	)
Loans, net of deferred costs		1,610,451			1,595,132			1,568,709			1,507,334
Premises and equipment, net		8,533			8,767			8,602			8,140
Accrued interest receivable		8,807			8,878			8,396			7,589
Intangible assets, net		8,754			9,005			9,255			9,755
Other real estate owned		3,379			2,115			225			648
Deferred tax asset, net		23,817			24,365			19,434			20,872
Other assets		24,071			22,613			24,554			22,063
Total assets	$	2,836,697		$	2,395,723		$	2,659,676		$	2,092,513
Liabilities:
Deposits
Demand  (non-interest bearing)	$	1,412,656		$	945,605		$	1,402,538		$	973,116
Savings, money market and  interest checking		1,105,226			975,973			1,001,959			875,511
Time deposits		1,397			90,862			9,218			1,317
Time deposits, $100,000 and  over		11,830			11,657			8,672			12,339
Total deposits		2,531,109			2,024,097			2,422,387			1,862,283
Securities sold under agreements to repurchase		19,783			14,383			9,429			8,245
Short-term borrowings		-			87,000			-			-
Federal funds purchased		-			49,000			-			-
Accrued interest payable		149			124			109			136
Subordinated debenture		13,401			13,401			13,401			13,401
Other liabilities		14,654			8,812			12,918			6,401
Total liabilities	$	2,579,096		$	2,196,817		$	2,458,244		$	1,890,466
Shareholders' equity:
Preferred stock – authorized  5,000,000 shares,  Series A,  $0.01 par value;  0 shares issued and outstanding at March 31, 2011 and 2010;		-			-			-			-
Common stock - authorized, 50,000,000 shares of  $1.00  par value; 33,196,281 and 26,181,281 shares issued and outstanding at March 31, 2011 and  2010, respectively		33,196			26,181			26,181			26,181
Additional paid-in capital		240,640			192,711			192,492			196,898
Accumulated deficit		(15,507	)		(18,195	)		(20,236	)		(21,231	)
Accumulated other comprehensive (loss) gain		(728	)		(1,791	)		2,995			199
Total shareholders' equity		257,601			198,906			201,432			202,047
Total liabilities and shareholders' equity	$	2,836,697		$	2,395,723		$	2,659,676		$	2,092,513

Average balance sheet and net interest income

	Three months ended March 31, 2011								Three months ended March 31, 2010
(dollars in thousands)	Average					Average			Average					Average
Assets:	Balance			Interest		Rate			Balance			Interest		Rate
Interest-earning assets:
Loans net of unearned discount	$	1,627,928		$	18,260		4.49	%	$	1,518,631		$	17,916		4.72	%
Leases - bank qualified*		2,344			50		8.53	%		-			-
Investment securities-taxable		185,583			1,557		3.36	%		130,432			1,308		4.01	%
Investment securities-nontaxable*		77,592			1,011		5.21	%		30,855			587		7.61	%
Interest bearing deposits at Federal Reserve Bank		833,085			515		0.25	%		472,388			351		0.30	%
Net interest-earning assets		2,726,532			21,393		3.14	%		2,152,306			20,162		3.75	%
Allowance for loan and lease losses		(24,811	)							(19,821	)
Other assets		286,553								201,340
	$	2,988,274							$	2,333,825
Liabilities and Shareholders' Equity:
Deposits:
Demand (non-interest bearing)**	$	1,647,682		$	425		0.10	%	$	950,319		$	219		0.09	%
Interest bearing deposits
Interest checking		714,846			1,279		0.72	%		539,757			1,924		1.43	%
Savings and money market		321,472			797		0.99	%		544,758			1,182		0.87	%
Time		46,507			104		0.89	%		50,270			133		1.06	%
Total interest bearing deposits		1,082,825			2,180		0.81	%		1,134,785			3,239		1.14	%
Total deposits		2,730,507			2,605		0.38	%		2,085,104			3,458		0.66	%
Short-term borrowings		3,022			3		0.40	%		3,183			5		0.63	%
Repurchase agreements		17,030			16		0.38	%		4,774			7		0.59	%
Subordinated debt		13,401			215		6.42	%		13,401			215		6.42	%
Net interest bearing liabilities		1,116,278			2,414		0.87	%		1,156,143			3,466		1.20	%
Total cost of funds		2,763,960			2,839		0.41	%		2,106,462			3,685		0.70	%
Other liabilities		9,435								12,658
Total liabilities		2,773,395								2,119,120
Shareholders' equity		214,879								214,705
	$	2,988,274							$	2,333,825
Net interest income on tax equivalent basis*				$	18,554							$	16,477
Tax equivalent adjustment					356								197
Net interest income				$	18,198							$	16,280
Net interest margin *							2.72	%							3.06	%
* Full taxable equivalent basis to be comparable to the interest income of all other categories, using a 34% statutory tax rate

** Interest includes fees paid to affinity groups.

Allowance for loan and lease losses:	Three months ended						For year ended
	March 31,			March 31,			December 31,
	2011			2010			2010
	(dollars in thousands)
Balance in the allowance for loan and lease losses at beginning of period	$	24,063		$	19,123		$	19,123
Loans charged-off:
Commercial		106			2,728			13,513
Construction		2,143			-			-
Lease financing		-			-			3
Residential mortgage		31			223			1,254
Consumer		668			44			618
Total		2,948			2,995			15,388
Recoveries:
Commercial		14			79			279
Construction		1			1			4
Lease financing		-			-			10
Residential mortgage		-			-			742
Consumer		-			1			6
Total		15			81			1,041
Net charge-offs		2,933			2,914			14,347
Provision charged to operations		4,672			4,148			19,287
Balance in allowance for loan and lease losses at end of period	$	25,802		$	20,357		$	24,063
Net charge-offs/average loans		0.18	%		0.19	%		0.92	%

Loan portfolio:	March 31,		December 31,		September 30,		March 31,
	2011		2010		2010		2010
	(dollars in thousands)
Commercial	$	430,081	$	441,799	$	409,697	$	413,361
Commercial mortgage (1)		601,046		580,780		580,491		557,713
Construction		202,105		203,120		206,551		206,275
Total commercial loans		1,233,232		1,225,699		1,196,739		1,177,349
Direct financing leases		107,624		103,289		103,278		81,904
Residential mortgage		94,682		93,004		93,833		89,005
Consumer loans and others		197,876		194,320		193,968		177,456
		1,633,414		1,616,312		1,587,818		1,525,714
Unamortized costs (fees)		2,839		2,883		2,689		1,977
Total loans, net of unamortized fees and costs	$	1,636,253	$	1,619,195	$	1,590,507	$	1,527,691
Supplemental loan data:
Construction 1-4 family	$	96,240	$	100,689	$	100,848	$	104,213
Construction commercial, acquisition and development		105,865		102,431		105,703		102,062
	$	202,105	$	203,120	$	206,551	$	206,275
(1) At March 31, 2011 our owner-occupied loans amounted to $136 million, or 22.7% of commercial mortgages.

	March 31,			December 31,			September 30,			March 31,
	2011			2010			2010			2010
Asset quality ratios:
Nonperforming loans to total loans (1)		1.05	%		1.08	%		1.51	%		1.44	%
Nonperforming assets to total assets (1)		0.73	%		0.82	%		0.91	%		1.08	%
Allowance for loan and lease losses to total loans		1.58	%		1.49	%		1.37	%		1.33	%
Nonaccrual loans	$	14,228		$	15,298		$	19,640		$	17,863
Total nonperforming loans		14,228			15,298			19,640			17,863
Other real estate owned		3,379			2,115			225			648
Total nonperforming assets	$	17,607		$	17,413		$	19,865		$	18,511
Loans 90 days past due still accruing interest	$	3,028		$	2,219		$	4,352		$	4,071
(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
	March 31,						December 31,			December 31,
	2011			2010			2010			2010
Selected operating ratios:
Return on average assets		0.36	%		0.37	%		0.34	%		0.23	%
Return on average equity		5.07	%		4.07	%		4.01	%		2.45	%
Net interest margin		2.72	%		3.06	%		3.36	%		3.28	%
Efficiency ratio		66.11	%		67.58	%		69.37	%		70.52	%
Book value per share	$	7.76		$	7.72		$	7.60		$	7.60