The Bancorp, Inc. 8K Regulation FD Disclosure | TBBK 11 Feb 15

INVESTOR PRESENTATION

Fourth Quarter, 2014

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,” “intend,” “plan," or similar words. These forward-looking statements are based upon the
current beliefs and expectations of The Bancorp, Inc.’s management and are inherently subject to
significant business, economic, regulatory, and competitive uncertainties and contingencies, many of
which are difficult to predict and beyond our control. For further discussion of these risks and
uncertainties, see the “risk factors” sections of The Bancorp, Inc.’s Annual Report on Form 10-K for the
year ended December 31, 2013, Quarterly Report on Form 8-K for the three months, and year ended
December 31, 2014, and other of its public filings with the SEC. In addition, these forward-looking
statements are subject to 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.

FORWARD LOOKING STATEMENTS

• 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

PLANNING FOR GROWTH WITH SAFETY AND SOUNDNESS

PLANNING FOR GROWTH

Sources: Federal Reserve, FRB Boston, FRB Philadelphia, SRI Consulting, University of Michigan, Mintel, Celent,
Bank of America, comScore, Nielsen Mobile, Wall Street Journal, AlixPartners, Pew Research Center

BUSINESS MODEL: A DISTINCT BUSINESS STRATEGY (1)

Specialty Finance Payments

Securities Portfolio

Primarily highly rated government
obligations & corporate securities

• Interest Income

Government Guaranteed
Lending (GGL)

Includes loans to franchisees; 51% of
which have a 75% guaranty by the
U.S. government

• Interest Income

Commercial Mortgage-Backed
Securities (CMBS)

Commercial Loan Sales

• Non-Interest Income

• Interest Income

Leasing

Automobile Fleet Leasing

• Interest Income

• Non-Interest Income

Prepaid Cards

Open Loop Prepaid Cards

• Deposits

• Non-Interest Income

Healthcare

Health Savings Accounts and
Flexible Spending Accounts

• Deposits

• Non-Interest Income

Payment Acceptance

Credit, Debit Card, and ACH Processing

• Deposits

• Non-Interest Income

Institutional Banking

Deposits and Loans for Clients
of Wealth Firms

• Interest Income

• Deposits

• Non-Interest Income

REVENUE

Payments: 69%

Specialty
Finance: 31%

Corporate

(1) For reconciliation detail, please see Appendix, page 21.

REVENUE COMPOSITION

Post Provision Income (1)

(1) For reconciliation detail, please see Appendix, page 22.

(2) Compound annual growth rate is calculated for the years 2010 through 2014.

PREPAID GROSS DOLLAR VOLUME (GDV)(1) AND CARDHOLDER GROWTH

(1) Gross Dollar Volume (GDV) is the total amount spent on all cards outstanding within a given period. GDV is further
broken out according to volume by contract year.

(2) Compound annual growth rate is calculated for the years 2010 through 2014.

$27,216,931

$6,285,271

$13,311,376

NON-INTEREST INCOME-GENERATING STRATEGIES:
GROWTH AND SUSTAINABILITY

15% Decrease

-6%

28%

34%

14%

-120%

73%

$84,426

(2)

(1)Compound annual growth rate is calculated for the years 2010 through 2014.

(2)Excludes gains on sales of investment securities. For reconciliation detail, please refer to the
Non-Interest Income section of Post Provision Income Reconciliation, in the Appendix (page 22).

SCALABLE BUSINESS MODEL:
NON-INTEREST INCOME / NON-INTEREST EXPENSE(1)

(1) For reconciliation detail, please refer to Appendix, page 23.

(2) Compound annual growth rate is calculated for the years 2010 through 2014.

(3) Peers are comprised of insured commercial banks having assets greater than $3 billion; Data Source: Uniform Bank Performance Report;
Peer data for 2014 is as of Q3 2014.

Columns represent TBBK

SCALABLE BUSINESS MODEL:

NON-INTEREST EXPENSE/AVERAGE EARNING ASSETS(1)

(1) For reconciliation detail, please refer to Appendix, page 23. Assets Held for Sale, from discontinued operations, are assumed to be reinvested
and are included in the calculation.

(2) Source: BankRegData.com.

(2)

COMPRESSED INTEREST RATE ENVIRONMENT:
NET INTEREST INCOME GENERATORS

(1) Compound annual growth rate is calculated for the years 2010 through 2014.

ADJUSTED OPERATING EARNINGS(1)

(1) For reconciliation detail, please see Appendix, page 24.

CATEGORY
(in thousands)

	421,862	293,109	2.57%
	211,364	148,109	4.23%
	194,464	175,610	6.12%
	178,376	55,196	3.33%
	42,743	53,068	3.36%
	46,990	67	2.50%
Discontinued Business Line* (formerly Community Bank)	898,134	1,303,125	3.65%

• Investment Securities

– High credit quality tax exempt municipal obligations

– U.S. Government agency securities 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 security backed lines of credit and other loans

• 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, approximately 51% of
which have a 75% guaranty by the U.S. Small Business Administration

– National lending in Financial Practice Acquisitions, Franchise and Healthcare-
professionals

• Leasing

– Well-collateralized automobile fleet leasing

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

• 31% of portfolio leased by local, state, and federal government agencies

• CMBS

– Loans which are generated for sale into CMBS markets that are
held until sold

• Consumer/Other

– Home equity lines of credit and other consumer loans; commercial financing
related to student loans

(1) Yield is on a tax equivalent basis.

*Discontinued Business Line is not included in the pie chart.

ASSET QUALITY OVERVIEW

Reserves/Loans

(1) Source: BankRegData.com

(2) 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.

PRIMARY DEPOSIT-GENERATING STRATEGIES: BUSINESS LINE OVERVIEW

Total Deposits: $4.4 billion

Average Cost: 0.29%

(Aggregate US Banks Average Cost: 0.33%) (1)

(1)Aggregate US Banks data as of Q3 2014, source: BankRegData.com

CATEGORY	Q4 2014 BALANCE (in thousands)	Q4 2014 AVG. COST
	$2,034,224	0.02%
	1,157,512	0.37%
	461,674	0.47%
	699,239	0.67%
	15,286	0.17%
Discontinued Business Line*	223,154	0.16%
Discontinued Product*	47,934	0.02%

*Discontinued Business Line and Discontinued Product are
not included in the pie chart.

DEPOSIT-GENERATING STRATEGIES: STICKY AND LONG-TERM

(1) Percentages shown include deposits associated with private label agreements
in the Healthcare, Institutional Banking, Prepaid and Payments Acceptance
groups. Data is as of the end of the fourth quarter of 2014.

(2) Contracts associated with over 99% of deposits in the <1 year segment are
structured with an automatic renewal.

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

(2)

• Strategic Goal:

• 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

PLANNING FOR GROWTH WITH SAFETY AND SOUNDNESS

APPENDIX

Capital Ratios and Selected Financial Data

		As of or for the three months ended December 31, 2014 (dollars in thousands)	As of or for the three months ended December 31, 2013 (dollars in thousands)
Selected Capital and Asset Quality Ratios:
	Equity/assets	7.10%	7.64%
	Tier 1 capital to average assets	8.04%	8.58%
	Tier 1 capital to total risk-weighted assets	12.58%	14.57%
	Total capital to total risk-weighted assets	12.71%	15.83%
	Allowance for loan and lease losses to total loans	0.41%	0.33%
	Tangible common equity	6.98%	7.49 %

Balance Sheet Data:
	Total assets	$5,017,989	$4,706,065
	Total loans, net of unearned costs (fees)	879,533	655,320
	Allowance for loan and lease losses	3,638	2,163
	Total cash and cash equivalents	1,114,235	1,235,949
	Total investments	1,587,404	1,350,322
	Discontinued assets held for sale	926,278	1,299,914
	Deposits	4,399,151	4,020,317
	Shareholders’ equity	354,930	359,604

Selected Ratios:
	Return on average assets	nm*	0.68%
	Return on average common equity	nm	8.17%
	Net interest margin	2.62%	2.54%
	Book value per share	$9.44	$9.53

*not meaningful

Current Loan Portfolio and Asset Quality Overview at 12/31/2014

Category (dollars in thousands)	Balance	% of Total Loans	Nonaccrual Loans	Nonaccrual/ Total Loans	OREO	30-89 Days Delinquent	90+ Days Delinquent	Q4 2014 Quarterly Charge-offs (net)
SBA	$172,660	16%	$-	-%	$-	$-	$ -	$(253)
SBA held for sale	38,704	4%	-	-	-	-	-	-
Leasing	194,464	18%	-	-	-	6,915	149	(25)
Security backed lines of credit	421,862	38%	-	-	-	-	-	(3)
Other consumer lending	42,743	4%	1,907	0.2%	-	466	-	(672)
Other specialty lending	46,990	4%	-	-	-	-	-	-
CMBS	178,376	16%	-	-	-	-	-	-
Total	$1,095,799	100%	$1,907	0.2%	$-	$7,381	$149	($953)

	Specialty Finance				Payments				Corporate
Category (dollars in thousands)	Institutional Banking	GGL	CMBS	Leasing	Prepaid	General Affinity	HSA	Payment Acceptance	Investment Securities
Interest income	11,753	8,344	4,354	11,951	-	-	1	56	34,261
Interest expense	4,647	-	-	-	325	268	2,149	3,396	-
Non interest income	2,721	1,126	12,197	2,873	51,288	2,842	5,570	5,809	450
Allocated income, based on deposits	6,603	(4,172)	(2,177)	(5,975)	3,620	235	930	936	-
Allocated income, investment securities	-	-	-	-	21,846	1,422	5,583	5,860	(34,711)
Total	16,430	5,298	14,374	8,849	76,429	4,231	9,935	9,265	-
Percentage	11%	4%	10%	6%	56%		7%	6%	-

Revenue By Segment Reconciliation(1)

	Specialty Finance				Payments
Category (dollars in thousands, average balances)	Institutional Banking	GGL	CMBS	Leasing	Prepaid	General Affinity	HSA	Payment Acceptance
Deposits	814,754	-	-	-	1,712,560	111,500	437,701	459,435
Loans	371,050	190,535	120,397	189,910	-	-	-	-
Net	443,704	-	-	-	1,712,560	111,500	437,701	459,435
Percentage of total allocated income to be received	14%	-	-	-	58%		14%	14%
Percent of Securities allocation to Payments, based on deposits	-	-	-	-	67%		16%	17%

(1) Revenue for Specialty Finance departments includes all revenue from the assets they fund with deposits they generate. It also includes half
the revenue from assets they generate but do not fund. The other half of the revenue is allocated to Payments departments and Institutional
Banking for funding they provide. Additionally, revenue generated through the bank’s Investment Securities portfolio is allocated amongst the
Payments business lines, based on each group’s deposits.

Post Provision Income Reconciliation(1)

Category (dollars in millions)	2010	2011(2)	2012	2013	2014	Q4 2013	Q4 2014
Interest income	$24.4	$31.1	$39.4	$51.2	$70.7	$14.3	$18.5
Interest expense	(12.4)	(10.3)	(10.1)	(10.0)	(10.8)	(2.5)	(2.7)
Net interest income	12.0	20.8	29.3	41.1	59.9	11.8	15.8
Provision for loan and lease losses	(1.4)	(1.7)	(0.9)	(0.2)	(3.6)	0.2	(0.2)
Net interest income post provision	10.6	19.1	28.4	40.9	56.4	12.0	15.6
Total non-interest income	19.8	29.7	49.3	81.9	84.9	21.8	17.6
Gain on sales of investment securities	(1.2)	(0.7)	(0.6)	(1.9)	(0.5)	1.1	-
Less other than temporary impairment	0.1	-	0.2	-	-	-	-
Non-interest income	18.7	29.0	48.9	80.0	84.4	20.7	17.6
Post provision income	$29.3	$48.1	$77.3	$120.9	$140.8	$32.7	$33.2

(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.

(2) 2011 includes a one-time gain of $718,000 related to a legal settlement.

Category (dollars in thousands)	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013	Q1 2013	Q4 2012	Q3 2012	Q2 2012	Q1 2012
Average assets	4,443,016	4,293,960	4,475,754	4,955,143	4,261,727	3,984,728	3,972,306	4,165,418	3,341,602	3,084,178	3,384,272	4,107,802
Other assets	64,904	85,541	132,332	115,646	95,629	76,321	85,476	83,902	78,755	78,241	126,547	229,504
Average earning assets	4,378,112	4,208,419	4,343,422	4,839,497	4,166,098	3,908,407	3,886,830	4,081,516	3,262,847	3,005,937	3,257,725	3,878,298

Non-interest expense	36,567	33,135	33,996	31,227	27,126	26,384	25,353	22,954	21,990	20,018	19,176	19,007
BSA & lookback consulting expenses	3,883	2,749	2,169	-	-	-	-	-	-	-	-	-
Adjusted non-interest expense	32,684	30,386	31,827	31,227	27,126	26,384	25,353	22,954	21,990	20,018	19,176	19,007
Non-interest expense ratio	2.99%	2.89%	2.93%	2.58%	2.60%	2.70%	2.61%	2.25%	2.70%	2.66%	2.35%	1.96%

Scalable Business Model: Non-Interest Expense/Average Earning Assets
Reconciliation

Category (dollars in millions)	2010	2011(1)	2012	2013	2014	Q4 2013	Q4 2014
Total non-interest income	$19.8	$29.7	$49.3	$81.9	$84.9	$21.8	$17.6
Gain on sales of investment securities	(1.2)	(0.8)	(0.7)	(1.9)	(0.5)	(1.1)	(0.1)
Other than temporary impairment	0.1	-	0.2	-	-	-	-
Non-interest income	18.7	28.9	48.6	80.0	84.4	20.7	17.5
Total non-interest expense	$58.1	$69.1	$80.2	$101.8	$134.6	$27.1	$36.6
BSA & lookback consulting expenses	-	-	-	-	(8.8)	-	(3.9)
Non-interest expense	58.1	69.1	80.2	101.8	125.8	27.1	32.7
Non-interest income/Non-interest expense	32%	42%	61%	79%	67%	76%	54%

Scalable Business Model: Non-Interest Income/Non-Interest Expense
Reconciliation

(1) Excludes gains on sales of investment securities and expenses we believe to be mostly nonrecurring, such as Bank Secrecy Act related expenses and lookback consulting expenses;
2011 includes a one-time gain of $718,000 related to a legal settlement.

(2) 2011 includes a one-time gain of $718,000 related to a legal settlement.

(3) 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 performance. Management utilizes adjusted earnings to measure the combined impact of changes in net interest income, non-interest income and certain other expenses.
Adjusted earnings exclude the impact of income taxes, securities gains and losses and certain items we believe to be mostly non-recurring, such as lookback consulting expenses. Other
companies may calculate adjusted 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.

Adjusted Operating Earnings Reconciliation(3)

Category (dollars in thousands)	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013	Q1 2013	Q4 2012	Q3 2012	Q2 2012	Q1 2012
Income before income tax expense	(3,264)	1,535	3,404	4,936	6,696	3,060	6,025	5,206	1,220	(1,151)	(2,365)	(133)
BSA and lookback consulting expense	3,883	2,749	2,169	-	-	-	-	-	-	-	-	-
Gain (loss) on sale of investment securities	85	(35)	159	241	1,104	42	476	267	554	107	-	-
Adjusted earnings	$534	$4,319	$5,414	$4,695	$5,592	$3,018	$5,549	$4,939	$666	($1,258)	($2,365)	($133)

NOTES

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