The Bancorp, Inc. (TBBK) 8-K Regulation FD Disclosure

Investor Presentation
Fourth Quarter, 2013

1

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this presentation regarding The Bancorp, Inc.’s business that 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 the
words “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “continue,” or similar words.
For further discussion of these risks and uncertainties, see The Bancorp, Inc.’s filings with the SEC, including the “risk factors” section
of The Bancorp, Inc.’s Form 10-K. 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.

Forward Looking
Statements

The Bancorp, Inc.

Planning for Growth with

Safety and Soundness

•Strategic Goal:

–Create and grow a stable, profitable institution with the optimum reliance on capital, risk
management and technology, and manage it with knowledgeable and experienced management
and senior officers

•Tactical Approach:

–Deposits - Utilize a branchless banking network to gather scalable deposits through strong
contractual relationships at costs significantly below peers

–Assets - Focus on asset classes including loans and securities appropriate to our expertise to
achieve returns above risk-adjusted peer net interest margins

–Non-Interest Income - Grow non-interest income disproportionately in relation to non-interest
expense through our deposit and asset approaches

–Operating Leverage - Leverage infrastructure investment to grow earnings by creating efficiencies
of scale

2

The Bancorp, Inc.  Planning for Growth Consumer Distribution Channel Penetration Percent of U.S. Households, 1980-2012Sources: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent, Bank of America, comScore, Nielsen Mobile, Wall Street Journal, AlixPartners

4

Securities Portfolio

Primarily highly rated
government obligations

•Interest Income

Includes loans to
franchisees;
75% guaranteed by
U.S. government

•Interest Income

Commercial Loan Sales

•Non-interest Income

•Interest Income

•Interest Income

•Non-interest Income

Community Bank

Traditional Community
Banking Products

•Interest Income

•Deposits

•Non-interest Income

(1)For the above presentation, revenue for asset-generating departments includes all revenue from the assets
they fund with deposits they generate. It also includes half the revenue on assets they generate but do not
fund. The other half of that revenue is allocated to deposit-producing departments. The revenue shown was
generated in thefull year 2013 with the exception of segments marked 2010, which represent full year 2010.

37%

4%

8%

5%

22%

3%

8%

9%

Revenue Composition

Post Provision Income (1)

(1)Post provision income is calculated as follows: net interest income less provision for loan and lease losses plus non-interest income
excluding gains on sales of investment securities and other than temporary impairment on securities. For reconciliation detail, please
see Appendix

(2)Compound annual growth rate is calculated for the years 2010 through 2013

$

5

7

(1)Gross Dollar Volume (GDV) is the total  amount spent on all cards outstanding within a given period.The bar graph represents the gross
dollar volume for the period segmented by the program contract date

(2)Number of active cards as of year-end 2010 through 2013

(3)Compound annual growth rate is calculated for the years 2010 through 2013

$

6

Prepaid Gross Dollar Volume (GDV) (1) and
Cardholder Growth (2)

$6,285,311

$13,311,202

$27,138,802

Non-Interest Income-Generating

Strategies: Growth and Sustainability

(1)Compound annual growth rate is calculated for the years 2010 through 2013

(2)Excludes gains on investment securities

40% Increase

$

(2)

7

Scalable Business Model:

Non-Interest Income/Non-Interest Expense (1)

(1)Excludes gains on investment securities and nonrecurring expenses; 2011 includes a one-time
gain of $718,000 related to a legal settlement

(2)Compound annual growth rate is calculated for the years 2010 through 2013

8

(1)Compound annual growth rate is calculated for the years 2010 through 2013

(2)Other is comprised of net interest income produced by the following areas:Investment Securities, Automobile Fleet Leasing, Government Guaranteed
      Lending, Institutional Banking, and CMBS.

9

(2)

$

Compressed Interest Rate Environment:

Net Interest Income Generators

Operating Leverage:

Adjusted Operating Earnings

(1)Compound annual growth rate is calculated for the fourth quarters of 2010 through 2013

$

10

Primary Asset-Generating Strategies:

Business Line Overview

As with funding, The Bancorp employs a multi-channel growth strategy for asset origination.

•Investment Securities

–High credit quality tax exempt municipal obligations

–U.S. Government agency securities primarily 2-4 year average lives and other
highly rated mortgage-backed securities

–Corporate securities which, like other purchases, are validated and monitored
by independent credit advisory specialists

•Institutional Banking

–15 affinity groups, managing & administering $2.7 trillion in assets

•SEI Investments, Legg Mason, AssetMark Trust Company, Franklin
Templeton

–Generates securities backed and other loans

•Automobile Fleet Leasing

–Well-collateralized automobile fleet leasing

•Average transaction: 8-15 automobiles, $350,000

•30.7% of portfolio leased by local, state, and federal government agencies

•Government Guaranteed Lending

–Loans from $150,000 to $5.0 million including loans to franchisees such as
UPS Stores, Massage Envy, FASTSIGNS and Save a Lot, many of which have a
75% guaranty by the U.S. Small Business Administration

–Approved Franchise and Medical Guidance lines of over $360 million

•Community Bank

–Offers traditional community banking products and services targeting the
highly fragmented Philadelphia/Wilmington banking market

•CMBS

–Loans which are generated for sale into CMBS securities markets that are held
until their quarterly sale

Category	Q4 2013 Balance	Q4 2012 Balance	Q4 2013 Avg. Yield
	(in thousands)
Investment Securities	$1,350,322	$763,244	2.41%
Institutional Banking	306,710	252,475	2.67%
Automobile Fleet Leasing	175,611	156,097	6.85%
Government Guaranteed Lending	148,257	90,795	4.58%
Community Bank	1,342,575	1,403,487	4.01%
CMBS	53,485	11,341	5.95%

11

Asset Quality Overview

(1)Texas Ratio = (Non-accrual Loans + Restructured Loans + Loans 90 + days past due + OREO)/(Loss Reserves + Tangible Equity).
TBBK computed with consolidated capital. Sources: SNL Financial; FDIC Call Reports

12

Primary Deposit-Generating Strategies:
Business Line Overview

Total Deposits: $4.3 billion

Average Cost: 0.25%

(Aggregate US Banks Average Cost: 0.42%) (1)

(1)Aggregate US Banks data as of September 2013

	(in millions)
Prepaid Cards	$1,738,009	0.02%
Institutional Banking	1,031,582	0.39%
Payment Acceptance	431,696	0.66%
Healthcare	397,783	0.54%
Community Bank	372,564	0.22%
1031 Exchange	301,355	0.21%

13

Deposit-Generating Strategies:

Sticky and Long-Term

The Bancorp has long-term, often exclusive agreements in place with its private label banking partners.

14

(1)Percentages shown reflect data as of the end of the fourth quarter of 2013

(2)Contracts associated with 100% of deposits in this segment are structured with an automatic renewal

(2)

The Bancorp, Inc.

Planning for Growth with

Safety and Soundness

•Strategic Goal:

–Create and grow a stable, profitable institution with the optimum reliance on capital, risk
management and technology, and manage it with knowledgeable and experienced management
and senior officers

•Tactical Approach:

–Deposits - Utilize a branchless banking network to gather scalable deposits through strong
contractual relationships at costs significantly below peers

–Assets - Focus on asset classes including loans and securities appropriate to our expertise to
achieve returns above risk-adjusted peer net interest margins

–Non-Interest Income - Grow non-interest income disproportionately in relation to non-interest
expense through our deposit and asset approaches

–Operating Leverage - Leverage infrastructure investment to grow earnings by creating efficiencies
of scale

15

Appendix

Capital Ratios and Selected Financial Data

		As of or for the three months ended	As of or for the three months ended
		December 31, 2013	December 31, 2012
		(dollars in thousands)	(dollars in thousands)
Selected Capital and Asset Quality Ratios:
	Equity/assets	7.62%	9.10%
	Tier 1 capital to average assets	8.55%	10.00%
	Tier 1 capital to total risk-weighted assets	14.56%	16.39%
	Total capital to total risk-weighted assets	15.81%	17.64%
	Allowance for loan and lease losses to total loans	1.95%	1.74%
	Tangible common equity	7.47%	8.93%
Balance Sheet Data:
	Total assets	$ 4,703,334	$ 3,699,659
	Total loans, net of unearned costs (fees)	1,958,445	1,902,854
	Allowance for loan and lease losses	38,182	33,040
	Total cash and cash equivalents	1,234,168	968,093
	Total investments	1,350,322	763,244
	Deposits	4,272,989	3,313,221
	Shareholders’ equity	358,543	336,677
Selected Ratios:
	Return on average assets	0.68%	0.62%
	Return on average common equity	8.17%	7.04%
	Net interest margin	2.54%	2.73%
	Book value per share	$9.53	$9.06

17

Current Loan Portfolio and Asset Quality
Overview at 12/31/2013

Category (dollars in thousands)	Balance	% of Total Loans	Nonaccrual Loans	Nonaccrual/ Total Loans	OREO	30-89 Days Delinquent	90+ Days Delinquent	Q4 2013 Quarterly Charge-offs (net)
Commercial	$450,113	23%	$29,651	1.52%	$7,370	$-	$-	$ (2,796)
Commercial mortgage	625,810	32%	5,861	0.30%	9,436	6,997	-	39
Construction	258,889	13%	1,667	0.09%	9,489	-	-	(4,601)
Direct financing leases (auto leases)	175,610	9%	-	0.00%	-	4,720	110	(30)
Residential mortgage	94,850	5%	2,016	0.10%	-	-	-	-
Securities backed loans and other	346,334	18%	1,356	0.07%	-	443	_____-	(81)
Total	$1,951,606	100%	$40,551	2.08%	$26,295	$12,160	$110	$(7,469)

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Post Provision Income Reconciliation

Category (dollars in millions)	2010	2011 (1)	2012	2013	Q4 2012	Q4 2013
Interest Income	$82.7	$88.4	$96.8	$106.6	$24.7	$28.2
Interest Expense	(14.5)	(12.0)	(11.4)	(10.8)	(2.6)	(2.8)
Net Interest Income	68.2	76.4	85.4	95.8	22.1	25.4
Provision for Loan and Lease Losses	(19.3)	(21.5)	(22.4)	(29.5)	(7.4)	(6.5)
Net Interest Income Post Provision	48.9	54.9	63	66.3	14.7	18.9
Non-Interest Income (2)	19.5	29.8	49.1	81.5	15.1	21.2
Post Provision Income	$68.4	$84.7	$112.1	$147.8	$29.8	$40.1

(1)2011 includes a one-time gain of $718,000 related to a legal settlement

(2)Non-interest income excluding gains on sales on investment securities and other than temporary impairment on securities

19

Adjusted Operating Earnings Reconciliation (1) As a supplement to GAAP, Bancorp has provided this non-GAAP performance result. The Bancorp believes that this non-GAAP financial measure is useful because it allows investors to assess its operating performance.  Management utilizes adjusted operating earnings to measure the combined impact of changes in net interest income, non-interest income and certain other expenses. Adjusted operating earnings exclude the impact of the provision for loan losses, income taxes, securities gains and losses and certain non-recurring items.  Other companies may calculate adjusted operating 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 net income calculated pursuant to GAAP. Net income (loss) available to common shareholders Preferred stock dividend and accretion Income tax expense Gain on sales of investment securities Other than temporary impairment in securities Loss on other real estate owned Provision for loan and lease losses Core operating earnings

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