TBBK Bancorp Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Form 8-K

 

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 30, 2025

 

The Bancorp, Inc.

(Exact name of registrant as specified in its 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, including area code)

 

(Former name or former address, if changed since last report)

 

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

[_]   Written communications pursuant to Rule 425 under the 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 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 emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

 

[_] Emerging growth company

 

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

 

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition

 

On January 30, 2025, The Bancorp, Inc. (the "Company") issued a press release regarding its earnings for the three and twelve months ended December 31, 2024. 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
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 

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: January 30, 2025	The Bancorp, Inc.
	By:	/s/ Paul Frenkiel
	Name:	Paul Frenkiel
	Title:	Chief Financial Officer and
		Secretary

 

 

 

 

 

 

Exhibit 99.1

 

The Bancorp, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results and Updates 2025 Guidance

 

Wilmington, DE – January 30, 2025 – The Bancorp, Inc. (“The Bancorp” or the “Company” or “we” or “our”) (NASDAQ: TBBK), a financial holding company, today reported its financial results for the fourth quarter and full year of 2024.

 

Recent Developments

 

On December 31, 2024, the Company's wholly owned subsidiary, The Bancorp Bank, National Association (the "Bank"), closed on the sale of an $82 million real estate bridge loan (“REBL”) portfolio, collateralized by apartment buildings. The sale included a $32.5 million classified loan, which was current with respect to monthly payments. The Bank provided financing to a third-party purchaser, which provided a 25% payment guaranty. The leverage and guaranty provided were consistent with market terms, and the Bank’s general underwriting standards for similar loans. The resulting weighted average look-through loan to values (“LTVs”), of the related mortgaged properties are no more than 57% as-is and 55% as-stabilized, which are further supported by the 25% payment guaranty. The look-through LTVs are the weighted average of LTVs multiplied by the leverage provided by the Company, based upon appraisals performed within the past 15 months. There was no loss of principal in connection with the sale, although $1.3 million of accrued interest was reversed in connection therewith. We believe that the sale is an indication of the liquidity of the portfolio, as further evidenced by “as is” and “as stabilized” LTVs, respectively, of 77% and 68% for total special mention and substandard REBL loans, based upon appraisals performed within the past 12 months.

 

Primarily as a result of the aforementioned $32.5 million substandard loan in that sale, total substandard loans decreased 14%, to $134.4 million at December 31, 2024, from $155.4 million at September 30, 2024. Substandard loans were further reduced on January 2, 2025 on which date a $12.3 million substandard loan was repaid without loss of principal, as a result of the sale of the underlying apartment building collateral in Plainfield New Jersey. As noted in the third quarter earnings release, a significant portion of the REBL portfolio was reviewed during that quarter by a firm specializing in such analysis, which resulted in no additional Special Mention or Substandard determinations. Additionally, the 100 basis points of Federal Reserve rate reductions may provide cash flow benefits to floating rate borrowers. Underlying property values as supported by the LTVs noted above, also continue to facilitate the recapitalization of certain loans from borrowers experiencing cash flow issues, to borrowers with greater financial capacity. At December 31, 2024, special mention real estate bridge loans amounted to $84.4 million which was unchanged from September 30, 2024.

 

The majority of the Company’s real estate owned is comprised of an apartment complex, with a balance as of December 31, 2024 of $41.1 million. That property is under agreement of sale with a sales price that is expected to cover the Company’s current balance plus the forecasted cost of improvements to the property. The purchaser has increased the total of earnest money deposits to $1.6 million, from $500,000, in consideration of extending the closing date to March 21, 2025. The Company believes that the purpose for the extension is to allow time for this sale to be included in a larger transaction. There can be no assurance that the purchaser will consummate the sale of the property, but if not consummated, the earnest money deposits of $1.6 million would accrue to the Company.

 

Highlights

 

·

The Bancorp reported net income of $55.9 million, or $1.15 per diluted share (“EPS”), for the quarter ended December 31, 2024, compared to net income of $44.0 million, or $0.81 per diluted share, for the quarter ended December 31, 2023, or an EPS increase of 42%. While net income increased 27% between these periods, outstanding shares were reduced as a result of repurchases, which were significantly increased in 2024.

 

·

Return on assets and return on equity for the quarter ended December 31, 2024, amounted to 2.6% and 28%, respectively, compared to 2.4% and 22%, respectively, for the quarter ended December 31, 2023 (all percentages “annualized”).

 

·

Net interest income increased 2% to $94.3 million for the quarter ended December 31, 2024, compared to $92.2 million for the quarter ended December 31, 2023. Fourth quarter 2024 net interest income was reduced by the reversal of $1.3 million of interest related to the sale of $82.0 million loans as described in “Recent Developments” above.

 

·

Net interest margin amounted to 4.55% for the quarter ended December 31, 2024, compared to 5.26% for the quarter ended December 31, 2023, and 4.78% for the quarter ended September 30, 2024. Net interest margin for fourth quarter 2024 was reduced by the interest reversal noted directly above.

 

·

Loans, net of deferred fees and costs were $6.11 billion at December 31, 2024, compared to $5.36 billion at December 31, 2023 and $5.91 billion at September 30, 2024. Those changes reflected an increase of 4% quarter over linked quarter and an increase of 14% year over year.

 

·

Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $6.36 billion, or 19%, to $39.66 billion for the quarter ended December 31, 2024, compared to the quarter ended December 31, 2023. The increase reflected continued organic growth with existing partners and the impact of clients added within the past year. Total prepaid, debit card, ACH, and other payment fees increased 16% to $29.2 million for the fourth quarter of 2024 compared to the fourth quarter of 2023. Consumer credit fintech fees amounted to $3.0 million for the fourth quarter 2024, as a result of our initial entry into credit sponsorship in 2024.

 

·

Small business loans (“SBLs”), including those held at fair value, amounted to $987.0 million at December 31, 2024, or 12% higher year over year, and 3% higher quarter over linked quarter, excluding the impact of loans with related secured borrowings.

 

·

Direct lease financing balances increased 2% year over year to $700.6 million at December 31, 2024, and decreased 2% from September 30, 2024.

 

·

Reflecting the aforementioned sale of $82.0 million of loans on December 31, 2024, real estate bridge loans of $2.11 billion decreased 4% compared to a $2.19 billion balance at September 30, 2024, and increased 5% compared to the December 31, 2023 balance of $2.00 billion. These real estate bridge loans consist entirely of rehabilitation loans for apartment buildings.

 

·

Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”), and investment advisor financing loans collectively decreased 1% year over year and increased 3% quarter over linked quarter to $1.84 billion at December 31, 2024.

 

·

The average interest rate on $7.70 billion of average deposits and interest-bearing liabilities during the fourth quarter of 2024 was 2.31%. Average deposits of $7.55 billion for the fourth quarter of 2024 increased $1.30 billion, or 21% over fourth quarter 2023.

 

·

As of December 31, 2024, tier 1 capital to average assets (leverage), tier 1 capital to risk-weighted assets, total capital to risk-weighted assets and common equity tier 1 to risk-weighted assets ratios were 9.41%, 13.88%, 14.46% and 13.88%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp Bank, National Association, remains well capitalized under banking regulations.

 

·

Book value per common share at December 31, 2024 was $16.55 compared to $15.17 per common share at December 31, 2023, an increase of 9%.

 

·

The Bancorp repurchased 919,584 shares of its common stock at an average cost of $54.37 per share during the quarter ended December 31, 2024. As a result of share repurchases, outstanding shares at December 31, 2024 amounted to 47.7 million, compared to 53.2 million shares at December 31, 2023, or a reduction of 10%.

 

·

The Bancorp emphasizes safety and soundness and its balance sheet has a risk profile enhanced by the special nature of the collateral supporting its loan niches, related underwriting, and the characteristics of its funding sources, including those highlighted in the bullets below. Those loan niches and funding sources have contributed to increased earnings levels, even during periods in which markets have experienced various economic stresses.

 

·

The vast majority of The Bancorp’s funding is comprised of FDIC-insured and/or small balance accounts, which adjust to only a portion of changes in rates. The Company also has lines of credit with U.S. government sponsored agencies totaling approximately $3.00 billion as of December 31, 2024, as well as access to other forms of liquidity.

 

·

In its REBL portfolio, the Company has minimal exposure to non-multifamily commercial real estate such as office buildings, and instead has a portfolio largely comprised of rehabilitation bridge loans for apartment buildings. These loans generally have three-year terms with two one-year extensions to allow for the rehabilitation work to be completed and rentals stabilized for an extended period, before being refinanced at lower rates through U.S. Government Sponsored Entities or other lenders. The REBL portfolio consists primarily of workforce housing, which we consider to be working class apartments at more affordable rental rates. Related collateral values should accordingly be more stable than higher rent properties, even in stressed economies. While the macro-economic environment has challenged the multifamily bridge space, the stability of the Company’s REBL portfolio is evidenced by the estimated values of the underlying collateral. The Company’s $2.1 billion apartment bridge lending portfolio at December 31, 2024, has a weighted average origination date “as is” loan-to-value ratio of 70%, based on third-party appraisals. Further, the weighted average origination date “as stabilized” LTV, which measures the estimated value of the apartments after the rehabilitation is complete may provide even greater protection.

 

·

As part of the underwriting process, The Bancorp reviews prospective borrowers’ previous rehabilitation experience in addition to overall financial wherewithal. These transactions also include significant borrower equity contributions with required performance metrics. Underwriting generally includes, but is not limited to, assessment of local market information relating to vacancy and rental rates, review of post rehabilitation rental rate assumptions against geo-specific affordability indices, negative news searches, lien searches, visitations by bank personnel and/or designated engineers, and other information sources.

 

·

Rehabilitation progress is monitored through ongoing draw requests and financial reporting covenants. This generally allows for early identification of potential issues, and expedited action to address on a timely basis.

 

·

Operations and ongoing loan evaluation are overseen by multiple levels of management, in addition to the REBL team’s experienced professional staff and third-party consultants utilized during the underwriting and asset management process. This oversight includes a separate loan committee specific to REBL, which is comprised of seasoned and experienced lending professionals who do not directly report to anyone on the REBL team. There is also a separate loan review department, a surveillance committee and additional staff which evaluate potential losses under the current expected credit losses methodology (“CECL”), all of which similarly do not report to anyone on the REBL team.

 

·

SBLOC and IBLOC portfolios are respectively secured by marketable securities and the cash value of life insurance. The majority of SBA 7(a) loans are government guaranteed, while SBA 504 loans are made with 50%-60% LTVs.

 

·

Additional details regarding our loan portfolios are included in the related tables in this press release, as is the summarization of the earnings contributions of our payments businesses, which further enhances The Bancorp’s risk profile. The Company’s risk profile inherent in its loan portfolios, funding and earnings levels, may present opportunities to further increase stockholder value, while still prudently maintaining capital levels.

 

·

In the second quarter of 2024, the Company purchased approximately $900 million of fixed rate government sponsored entity backed commercial and residential mortgage securities of varying maturities, with an approximate 5.11% weighted average yield, and estimated weighted average lives of eight years, to reduce its exposure to lower levels of net interest income. Such purchases would also reduce the additional net interest income which will result if the Federal Reserve increases rates. While there are many variables and limitations to estimating exposure to changes in rates, such purchases and continuing fixed rate loan originations are projected to reduce such exposure to modest levels. In prior years, The Bancorp deferred adding fixed rate securities when yields were particularly low, which has afforded the flexibility to benefit from, and secure, more advantageous securities and loan rates.

 

 

“2024 was another year of significant Fintech business expansion and earnings per share growth of 23%”, said Damian Kozlowski, President and CEO of The Bancorp. “Led by the growth in our Fintech solutions group, we are affirming 2025 guidance of $5.25 a share. The guidance does not include $150 million share of planned buybacks in 2025, or $37.5 million per quarter. Planned buybacks have been reduced $100 million in 2025 from 2024 to facilitate the repayment of $96 million of senior secured debt.”

 

Conference Call Webcast

 

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, January 31, 2025, by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. or you may dial 1.800.549.8228, conference ID 18739. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website (archived for one year) or telephonically until Friday, February 7, 2025, by dialing 1.888.660.6264, playback code 18739#.

 

About The Bancorp

 

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association provides a variety of services including providing non-bank financial companies with the people, processes, and technology to meet their unique banking needs. Through its Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses, The Bancorp provides partner-focused solutions paired with cutting-edge technology for companies that range from entrepreneurial startups to Fortune 500 companies. With over 20 years of experience, The Bancorp has become a leader in the financial services industry, earning recognition as the #1 issuer of prepaid cards in the U.S., a nationwide provider of bridge financing for real estate capital improvement plans, an SBA National Preferred Lender, a leading provider of securities-backed lines of credit, with one of the few bank-owned commercial vehicle leasing groups. By its company-wide commitment to excellence, The Bancorp has also been ranked as one of the 100 Fastest-Growing Companies by Fortune, a Top 50 Employer by Equal Opportunity Magazine and was selected to be included in the S&P Small Cap 600. For more about The Bancorp, visit https://thebancorp.com/.

 

Forward-Looking Statements

 

Statements in this earnings release regarding The Bancorp’s business that 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 “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward-looking statements include, but are not limited to, statements regarding our annual fiscal 2024 results, our anticipated 2025 profitability, increased growth and the impact of stock buybacks, relate to our current assumptions, projections and expectations about our business and future events, including current expectations about important economic, political, and technological factors, among other factors, 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. Factors that could cause results to differ from those expressed in the forward-looking statements also include, but are not limited to the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly Reports on Forms 10-Q for the periods ended March 31, 2024, June 30, 2024 and September 30, 2024 and other documents that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake any duty to publicly revise or update forward-looking statements in this press release to reflect events or circumstances that arise after the date of this press release, except as may be required under applicable law.

 

The Bancorp, Inc. Contact

Andres Viroslav

Director, Investor Relations

215-861-7990

andres.viroslav@thebancorp.com

 

Source: The Bancorp, Inc. 

 

 

The Bancorp, Inc.

Financial highlights

(unaudited)

 

 

	Three months ended						Year ended
	December 31,						December 31,
Consolidated condensed income statements	2024			2023			2024			2023
	(Dollars in thousands, except per share and share data)
Net interest income	$	94,296		$	92,159		$	376,241		$	354,052
Provision for credit losses on non-consumer fintech loans		2,003			4,056			9,319			8,465
Provision for credit losses on consumer fintech loans(1)		19,619			—			19,619			—
Provision (reversal) for unfunded commitments		(256)			258			(596)			(135)
Provision (reversal) for credit loss on security		(1,000)			10,000			(1,000)			10,000
Non-interest income
Fintech fees
ACH, card and other payment processing fees		4,740			2,669			14,596			9,822
Prepaid, debit card and related fees		24,465			22,404			97,413			89,417
Consumer credit fintech fees		3,049			—			4,789			—
Total fintech fees		32,254			25,073			116,798			99,239
Net realized and unrealized gains (losses) on commercial
loans, at fair value		527			(426)			2,732			3,745
Leasing related income		1,032			1,556			3,921			6,324
Consumer fintech loan credit enhancement(1)		19,619			—			19,619			—
Other non-interest income		838			786			3,412			2,786
Total non-interest income		54,270			26,989			146,482			112,094
Non-interest expense
Salaries and employee benefits		33,633			27,628			131,597			121,055
Data processing expense		1,414			1,324			5,666			5,447
Legal expense		856			740			3,365			3,850
FDIC insurance		961			724			3,579			2,957
Software		4,226			4,368			17,913			17,349
Other non-interest expense		10,722			10,826			41,105			40,384
Total non-interest expense		51,812			45,610			203,225			191,042
Income before income taxes		76,388			59,224			292,156			256,774
Income tax expense		20,480			15,196			74,616			64,478
Net income		55,908			44,028			217,540			192,296
Net income per share - basic	$	1.17		$	0.82		$	4.35		$	3.52
Net income per share - diluted	$	1.15		$	0.81		$	4.29		$	3.49
Weighted average shares - basic		47,771,547			53,549,138			50,063,620			54,506,065
Weighted average shares - diluted		48,639,936			54,201,312			50,713,140			55,053,497

 

⁽¹⁾ Lending agreements related to consumer fintech loans had certain provisions accounted for as freestanding credit enhancements which resulted in the company recording a $19.6 million provision for credit losses and a correlated amount in non-interest income resulting in no impact to net income.

 

 

 

 

Condensed consolidated balance sheets	December 31,			September 30,			June 30,			December 31,
	2024 (unaudited)			2024 (unaudited)			2024 (unaudited)			2023
	(Dollars in thousands, except share data)
Assets:
Cash and cash equivalents
Cash and due from banks	$	6,064		$	8,660		$	5,741		$	4,820
Interest earning deposits at Federal Reserve Bank		564,059			47,105			399,853			1,033,270
Total cash and cash equivalents		570,123			55,765			405,594			1,038,090
Investment securities, available-for-sale, at fair value, net of $10.0 million allowance for credit loss effective December 31, 2023, and $0 at December 31, 2024		1,502,860			1,588,289			1,581,006			747,534
Commercial loans, at fair value		223,115			252,004			265,193			332,766
Loans, net of deferred fees and costs		6,113,628			5,906,616			5,605,727			5,361,139
Allowance for credit losses		(31,944)			(31,004)			(28,575)			(27,378)
Loans, net		6,081,684			5,875,612			5,577,152			5,333,761
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock		15,642			21,717			15,642			15,591
Premises and equipment, net		27,566			28,091			28,038			27,474
Accrued interest receivable		41,713			42,915			43,720			37,534
Intangible assets, net		1,254			1,353			1,452			1,651
Other real estate owned		62,025			61,739			57,861			16,949
Deferred tax asset, net		18,874			9,604			20,556			21,219
Other assets		182,687			157,501			149,187			133,126
Total assets	$	8,727,543		$	8,094,590		$	8,145,401		$	7,705,695
Liabilities:
Deposits
Demand and interest checking	$	7,434,212		$	6,844,128		$	7,095,391		$	6,630,251
Savings and money market		311,834			81,624			60,297			50,659
Total deposits		7,746,046			6,925,752			7,155,688			6,680,910
Securities sold under agreements to repurchase		—			—			—			42
Short-term borrowings		—			135,000			—			—
Senior debt		96,214			96,125			96,037			95,859
Subordinated debenture		13,401			13,401			13,401			13,401
Other long-term borrowings		14,081			38,157			38,283			38,561
Other liabilities		68,018			70,829			65,001			69,641
Total liabilities	$	7,937,760		$	7,279,264		$	7,368,410		$	6,898,414
Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value; 47,713,481 and 53,202,630 shares issued and outstanding at December 31, 2024 and 2023, respectively		47,713			48,231			49,268			53,203
Treasury stock at cost, 402,731 shares at December 31, 2024 and 0 shares at December 31, 2023, respectively		(22,681)			—			—			—
Additional paid-in capital		3,233			26,573			72,171			212,431
Retained earnings		779,155			723,247			671,730			561,615
Accumulated other comprehensive (loss) income		(17,637)			17,275			(16,178)			(19,968)
Total shareholders' equity		789,783			815,326			776,991			807,281
Total liabilities and shareholders' equity	$	8,727,543		$	8,094,590		$	8,145,401		$	7,705,695

 

 

 

 

Average balance sheet and net interest income	Three months ended December 31, 2024									Three months ended December 31, 2023
	(Dollars in thousands; unaudited)
	Average						Average			Average						Average
Assets:	Balance			Interest			Rate			Balance			Interest			Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)	$	6,193,762		$	112,908			7.29%		$	5,583,467		$	112,334		8.05%
Leases-bank qualified(2)		5,728			143			9.99%			4,658			109		9.36%
Investment securities-taxable		1,556,698			19,341			4.97%			747,384			10,258		5.49%
Investment securities-nontaxable(2)		5,221			82			6.28%			2,895			49		6.77%
Interest earning deposits at Federal Reserve Bank		527,849			6,378			4.83%			677,524			9,356		5.52%
Net interest earning assets		8,289,258			138,852			6.70%			7,015,928			132,106		7.53%
Allowance for credit losses		(30,829)									(24,070)
Other assets		291,977									356,785
	$	8,550,406								$	7,348,643
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	7,443,308		$	41,436			2.23%		$	6,204,048		$	37,830		2.44%
Savings and money market		111,231			1,078			3.88%			46,428			392		3.38%
Total deposits		7,554,539			42,514			2.25%			6,250,476			38,222		2.45%
Short-term borrowings		9,673			125			5.17%			2,717			37		5.45%
Repurchase agreements		—			—			—			41			—		—
Long-term borrowings		25,886			360			5.56%			10,144			125		4.94%
Subordinated debentures		13,401			275			8.21%			13,401			296		8.84%
Senior debt		96,156			1,234			5.13%			95,808			1,234		5.15%
Total deposits and liabilities		7,699,655			44,508			2.31%			6,372,587			39,914		2.51%
Other liabilities		48,196									185,572
Total liabilities		7,747,851									6,558,159
Shareholders' equity		802,555									790,484
	$	8,550,406								$	7,348,643
Net interest income on tax equivalent basis(2)				$	94,344								$	92,192
Tax equivalent adjustment					48									33
Net interest income				$	94,296								$	92,159
Net interest margin(2)								4.55%								5.26%

 

(1) Includes commercial loans, at fair value. All periods include non-accrual loans.

(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2024 and 2023.

 

 

 

 

Average balance sheet and net interest income	Year ended December 31, 2024									Year ended December 31, 2023
	(Dollars in thousands; unaudited)
	Average							Average		Average						Average
Assets:	Balance			Interest				Rate		Balance			Interest			Rate
Interest earning assets:
Loans, net of deferred fees and costs(1)	$	5,920,643		$	458,405			7.74%		$	5,724,679		$	436,343		7.62%
Leases-bank qualified(2)		5,064			522			10.31%			4,106			388		9.45%
Investment securities-taxable		1,331,234			66,262			4.98%			766,906			39,078		5.10%
Investment securities-nontaxable(2)		3,487			237			6.80%			3,118			193		6.19%
Interest earning deposits at Federal Reserve Bank		497,180			26,326			5.30%			649,873			33,627		5.17%
Net interest earning assets		7,757,608			551,752			7.11%			7,148,682			509,629		7.13%
Allowance for credit losses		(28,707)									(23,412)
Other assets		308,814									292,501
	$	8,037,715								$	7,417,771
Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	6,875,368		$	161,841			2.35%		$	6,308,509		$	144,814		2.30%
Savings and money market		71,962			2,531			3.52%			78,074			2,857		3.66%
Time deposits		—			—			—			20,794			858		4.13%
Total deposits		6,947,330			164,372			2.37%			6,407,377			148,529		2.32%
Short-term borrowings		44,220			2,469			5.58%			5,739			271		4.72%
Repurchase agreements		3			—			—			41			—		—
Long-term borrowings		35,232			2,420			6.87%			9,995			507		5.07%
Subordinated debentures		13,401			1,155			8.62%			13,401			1,121		8.37%
Senior debt		96,027			4,935			5.14%			96,864			5,027		5.19%
Total deposits and liabilities		7,136,213			175,351			2.46%			6,533,417			155,455		2.38%
Other liabilities		102,970									133,698
Total liabilities		7,239,183									6,667,115
Shareholders' equity		798,532									750,656
	$	8,037,715								$	7,417,771
Net interest income on tax equivalent basis(2)				$	376,401								$	354,174
Tax equivalent adjustment					160									122
Net interest income				$	376,241								$	354,052
Net interest margin(2)								4.85%								4.95%

 

(1) Includes commercial loans, at fair value. All periods include non-accrual loans.

(2) Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2024 and 2023.

 

 

 

 

 

 

 

Allowance for credit losses	Year ended
	December 31,			December 31,
	2024 (unaudited)			2023
	(Dollars in thousands)
Balance in the allowance for credit losses at beginning of period	$	27,378		$	22,374
Loans charged-off:
SBA non-real estate		708			871
SBA commercial mortgage		—			76
Direct lease financing		4,575			3,666
IBLOC		—			24
Consumer - home equity		10			—
Consumer fintech(1)		19,619			—
Other loans		8			3
Total		24,920			4,640
Recoveries:
SBA non-real estate		229			475
SBA commercial mortgage		—			75
Direct lease financing		318			330
Consumer - home equity		1			299
Total		548			1,179
Net charge-offs		24,372			3,461
Provision for credit losses on non-consumer fintech loans		9,319			8,465
Provision for credit losses on consumer fintech loans(1)		19,619			—
Balance in allowance for credit losses at end of period	$	31,944		$	27,378
Net charge-offs/average loans		0.43%			0.07%
Net charge-offs/average assets		0.30%			0.05%
Excluding the $19,619 of consumer fintech loans:
Net charge-offs/average loans		0.08%
Net charge-offs/average assets		0.06%

 

⁽¹⁾ Lending agreements related to consumer fintech loans had certain provisions accounted for as freestanding credit enhancements which resulted in the company recording a $19.6 million provision for credit losses and a correlated amount in non-interest income resulting in no impact to net income.

 

 

 

Loan portfolio	December 31,			September 30,			June 30,			December 31,
	2024 (unaudited)			2024 (unaudited)			2024 (unaudited)			2023
	(Dollars in thousands)
SBL non-real estate	$	190,322		$	179,915		$	171,893		$	137,752
SBL commercial mortgage		662,091			665,608			647,894			606,986
SBL construction		34,685			30,158			30,881			22,627
Small business loans		887,098			875,681			850,668			767,365
Direct lease financing		700,553			711,836			711,403			685,657
SBLOC / IBLOC(1)		1,564,018			1,543,215			1,558,095			1,627,285
Advisor financing(2)		273,896			248,422			238,831			221,612
Real estate bridge loans		2,109,041			2,189,761			2,119,324			1,999,782
Consumer fintech(3)		454,357			280,092			70,081			—
Other loans(4)		111,328			46,586			46,592			50,638
		6,100,291			5,895,593			5,594,994			5,352,339
Unamortized loan fees and costs		13,337			11,023			10,733			8,800
Total loans, including unamortized fees and costs	$	6,113,628		$	5,906,616		$	5,605,727		$	5,361,139

 

 

Small business portfolio	December 31,			September 30,			June 30,			December 31,
	2024 (unaudited)			2024 (unaudited)			2024 (unaudited)			2023
		(Dollars in thousands)
SBL, including unamortized fees and costs	$	897,077		$	885,263		$	860,226		$	776,867
SBL, included in loans, at fair value		89,902			93,888			104,146			119,287
Total small business loans(5)	$	986,979		$	979,151		$	964,372		$	896,154

 

⁽¹⁾ SBLOC loans are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At December 31, 2024 and December 31, 2023, IBLOC loans amounted to $548.1 million and $646.9 million, respectively.

⁽²⁾ In 2020 The Bancorp began originating loans to investment advisors for purposes of debt refinancing, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70% of the business enterprise value based on a third-party valuation, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.

⁽³⁾ Consumer fintech loans consist of $201.1 million of secured credit card loans, with the balance comprised of other short-term extensions of credit.

⁽⁴⁾ Includes demand deposit overdrafts reclassified as loan balances totaling $1.2 million and $1.7 million at December 31, 2024 and December 31, 2023, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and are immaterial.

⁽⁵⁾ The SBLs held at fair value are comprised of the government guaranteed portion of 7(a) Program loans at the dates indicated.

 

 

Small business loans as of December 31, 2024

		Loan principal
		(Dollars in millions)
U.S. government guaranteed portion of SBA loans(1)		$	385
PPP loans(1)			1
Commercial mortgage SBA(2)			354
Construction SBA(3)			12
Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans(4)			115
Non-SBA SBLs			100
Other(5)			9
Total principal		$	976
Unamortized fees and costs			11
Total SBLs		$	987

 

⁽¹⁾ Includes the portion of SBA 7(a) Program loans and PPP loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.

⁽²⁾ Substantially all these loans are made under the 504 Program, which dictates origination date LTV percentages, generally 50%-60%, to which The Bancorp adheres.

⁽³⁾ Includes $11 million in 504 Program first mortgages with an origination date LTV of 50%-60%, and $1 million in SBA interim loans with an approved SBA post-construction full takeout/payoff.

⁽⁴⁾ Includes the unguaranteed portion of 7(a) Program loans which are 70% or more guaranteed by the U.S. government. SBA 7(a) Program 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 7(a) Program loans and 504 Program loans require the personal guaranty of all 20% or greater owners.

⁽⁵⁾ Comprised of $9 million of loans sold that do not qualify for true sale accounting.

 

 

 

Small business loans by type as of December 31, 2024

 

(Excludes government guaranteed portion of SBA 7(a) Program and PPP loans)

 

		SBL commercial mortgage(1)			SBL construction(1)			SBL non-real estate			Total				% Total
		(Dollars in millions)
Hotels (except casino hotels) and motels		$	87		$	—		$	—		$	87			15%
Funeral homes and funeral services			36			—			34			70			12%
Full-service restaurants			29			2			2			33			6%
Child day care services			23			1			1			25			4%
Car washes			12			5			—			17			3%
Homes for the elderly			16			—			—			16			3%
Outpatient mental health and substance abuse centers			15			—			—			15			3%
Gasoline stations with convenience stores			15			—			—			15			3%
General line grocery merchant wholesalers			13			—			—			13			2%
Fitness and recreational sports centers			8			—			2			10			2%
Nursing care facilities			9			—			—			9			2%
Lawyer's office			9			—			—			9			2%
Plumbing, heating, and air-conditioning contractors			8			—			1			9			2%
Used car dealers			7			—			—			7			1%
All other specialty trade contractors			6			—			1			7			1%
Caterers			7			—			—			7			1%
Limited-service restaurants			4			—			3			7			1%
General warehousing and storage			6			—			—			6			1%
Automotive body, paint, and interior repair			5			—			—			5			1%
Appliance repair and maintenance			6			—			—			6			1%
Other accounting services			5			—			—			5			1%
Offices of dentists			5			—			—			5			1%
Other miscellaneous durable goods merchant			5			—			—			5			1%
Packaged frozen food merchant wholesalers			5			—			—			5			1%
Other(2)			147			12			29			188			30%
Total		$	488		$	20		$	73		$	581			100%

 

⁽¹⁾ Of the SBL commercial mortgage and SBL construction loans, $141 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $9 million of loans sold that do not qualify for true sale accounting.

⁽²⁾ Loan types of less than $5 million are spread over approximately one hundred different business types.

 

 

State diversification as of December 31, 2024

 

(Excludes government guaranteed portion of SBA 7(a) Program loans and PPP loans)

 

		SBL commercial mortgage(1)			SBL construction(1)			SBL non-real estate			Total				% Total
			(Dollars in millions)
California		$	131		$	3		$	6		$	140			24%
Florida			77			8			4			89			15%
North Carolina			44			—			4			48			8%
New York			34			—			2			36			6%
Pennsylvania			19			—			13			32			6%
Texas			23			3			6			32			6%
New Jersey			23			—			7			30			5%
Georgia			25			2			1			28			5%
Other States			112			4			30			146			25%
Total		$	488		$	20		$	73		$	581			100%

 

⁽¹⁾ Of the SBL commercial mortgage and SBL construction loans, $141 million represents the total of the non-guaranteed portion of SBA 7(a) Program loans and non-SBA loans. The balance of those categories represents SBA 504 Program loans with 50%-60% origination date LTVs. SBL Commercial excludes $9 million of loans that do not qualify for true sale accounting.

 

 

 

Top 10 loans as of December 31, 2024

 

Type(1)		State			SBL commercial mortgage
		(Dollars in millions)
General line grocery merchant wholesalers			CA		$	13
Funeral homes and funeral services			ME			13
Funeral homes and funeral services			PA			12
Outpatient mental health and substance abuse center			FL			10
Hotel			FL			8
Lawyer's office			CA			8
Hotel			VA			7
Hotel			NC			7
Used car dealer			CA			7
General warehousing and storage			PA			6
Total					$	91

 

⁽¹⁾ The table above does not include loans to the extent that they are U.S. government guaranteed.

 

 

Commercial real estate loans, excluding SBA loans, are as follows including LTV at origination:

 

Type as of December 31, 2024

 

Type			# Loans			Balance		Weighted average origination date LTV		Weighted average interest rate
			(Dollars in millions)
Real estate bridge loans (multifamily apartment loans recorded at amortized cost)(1)			169		$	2,109		70%		8.73%
Non-SBA commercial real estate loans, at fair value:
Multifamily (apartment bridge loans)(1)			5		$	94		70%		7.61%
Hospitality (hotels and lodging)			1			19		66%		9.75%
Retail			2			12		72%		8.19%
Other			2			9		71%		4.96%
			10			134		70%		7.79%
Fair value adjustment						(1)
Total non-SBA commercial real estate loans, at fair value						133
Total commercial real estate loans					$	2,242		70%		8.67%

 

⁽¹⁾ In the third quarter of 2021, we resumed the origination of bridge loans for multi-family apartment rehabilitation which comprise these categories. Such loans held at fair value were originally intended for sale, but are now being retained on the balance sheet. In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third-party appraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are re-leased at stabilized rental rates. The weighted average origination date “as stabilized” LTV was estimated at 61%.

 

 

State diversification as of December 31, 2024									15 largest loans as of December 31, 2024
State		Balance				Origination date LTV			State			Balance			Origination date LTV
(Dollars in millions)									(Dollars in millions)
Texas		$	693			71%			Texas			$	46		75%
Georgia			276			70%			Tennessee				40		72%
Florida			236			68%			Michigan				38		62%
Indiana			128			71%			Texas				37		64%
New Jersey			121			69%			Texas				36		67%
Michigan			104			65%			Florida				35		72%
Ohio			85			70%			New Jersey				34		62%
Other States each <$65 million			599			70%			Pennsylvania				34		63%
Total		$	2,242			70%			Indiana				34		76%
									Texas				33		62%
									Oklahoma				31		78%
									Texas				31		77%
									New Jersey				31		71%
									Michigan				31		66%
									Georgia				29		69%
									15 largest commercial real estate loans			$	520		69%

 

Institutional banking loans outstanding at December 31, 2024

 

Type	Principal			% of total
		(Dollars in millions)
SBLOC	$	1,016		55%
IBLOC		548		30%
Advisor financing		274		15%
Total	$	1,838		100%

 

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While the value of equities has fallen in excess of 30% in recent years, the reduction in collateral value of brokerage accounts collateralizing SBLOC loans 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. Second, 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 percentage of principal to collateral.

 

Top 10 SBLOC loans at December 31, 2024

 

	Principal amount			% Principal to collateral
	(Dollars in millions)
	$	10		36%
		9		53%
		9		15%
		8		86%
		8		46%
		7		21%
		7		32%
		6		21%
		6		37%
		6		42%
Total and weighted average	$	76		39%

 

Insurance backed lines of credit (IBLOC)

 

IBLOC loans are backed by the cash value of eligible life insurance policies which have been assigned to us. We generally lend up to 95% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, fifteen insurance companies have been approved and, as of January 15, 2025, all were rated A- (Excellent) or better by AM BEST.

 

 

Direct lease financing by type as of December 31, 2024

 

		Principal balance(1)		% Total
		(Dollars in millions)
Government agencies and public institutions(2)	$	133		19%
Construction		118		17%
Waste management and remediation services		97		14%
Real estate and rental and leasing		87		12%
Health care and social assistance		29		4%
Professional, scientific, and technical services		22		3%
Other services (except public administration)		21		3%
Wholesale trade		20		3%
General freight trucking		19		3%
Finance and insurance		14		2%
Transit and other transportation		13		2%
Mining, quarrying, and oil and gas extraction		9		1%
Other		119		17%
Total	$	701		100%

 

⁽¹⁾ Of the total $701 million of direct lease financing, $640 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

⁽²⁾ Includes public universities as well as school districts.

 

 

Direct lease financing by state as of December 31, 2024

 

State		Principal balance		% Total
		(Dollars in millions)
Florida	$	109		16%
New York		65		9%
Utah		52		7%
Connecticut		48		7%
California		46		7%
Pennsylvania		43		6%
New Jersey		38		5%
North Carolina		37		5%
Maryland		37		5%
Texas		25		4%
Idaho		20		3%
Washington		15		2%
Ohio		14		2%
Georgia		14		2%
Alabama		13		2%
Other States		125		18%
Total	$	701		100%

 

 

 

Capital ratios	Tier 1 capital		Tier 1 capital		Total capital		Common equity
	to average assets ratio		to risk-weighted assets ratio		to risk-weighted assets ratio		tier 1 to risk weighted assets
As of December 31, 2024
The Bancorp, Inc.	9.41%		13.88%		14.46%		13.88%
The Bancorp Bank, National Association	10.38%		15.29%		15.87%		15.29%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%		8.00%		10.00%		6.50%
As of December 31, 2023
The Bancorp, Inc.	11.19%		15.66%		16.23%		15.66%
The Bancorp Bank, National Association	12.37%		17.35%		17.92%		17.35%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%		8.00%		10.00%		6.50%

 

 

	Three months ended						Year ended
	December 31,						December 31,
	2024			2023			2024			2023
Selected operating ratios
Return on average assets(1)		2.60%			2.38%			2.71%			2.59%
Return on average equity(1)		27.71%			22.10%			27.24%			25.62%
Net interest margin		4.55%			5.26%			4.85%			4.95%

 

⁽¹⁾ Annualized

 

Book value per share table	December 31,			September 30,				June 30,		December 31,
	2024			2024			2024			2023
Book value per share	$	16.55		$	16.90		$	15.77		$	15.17

 

 

Loan delinquency and other real estate owned	December 31, 2024
	30-59 days past due			60-89 days past due			90+ days still accruing			Non-accrual			Total past due			Current			Total loans
SBL non-real estate	$	229		$	—		$	871		$	2,635		$	3,735		$	186,587		$	190,322
SBL commercial mortgage		—			—			336			4,885			5,221			656,870			662,091
SBL construction		—			—			—			1,585			1,585			33,100			34,685
Direct lease financing		7,069			1,923			1,088			6,026			16,106			684,447			700,553
SBLOC / IBLOC		20,991			1,808			3,322			503			26,624			1,537,394			1,564,018
Advisor financing		—			—			—			—			—			273,896			273,896
Real estate bridge loans(1)		—			—			—			12,300			12,300			2,096,741			2,109,041
Consumer fintech		13,419			681			213			—			14,313			440,044			454,357
Other loans		49			—			—			—			49			111,279			111,328
Unamortized loan fees and costs		—			—			—			—			—			13,337			13,337
	$	41,757		$	4,412		$	5,830		$	27,934		$	79,933		$	6,033,695		$	6,113,628

 

⁽¹⁾ The $12.3 million shown in the non-accrual column for real estate bridge loans was repaid without loss of principal in the first quarter of 2025. The table above does not include an $11.2 million loan accounted for at fair value, and, as such, not reflected in delinquency tables. In the third quarter of 2024, the borrower notified the Company that he would no longer be making payments on the loan, which is collateralized by a vacant retail property. Based upon a July 2024 appraisal, the “as is” LTV is 84% and the “as stabilized” LTV is 62%. Since 2021, real estate bridge lending originations have consisted of apartment buildings, while this loan was originated previously. In January 2025, two loans totaling $9.8 million were transferred to non-accrual and were accordingly classified as substandard.

 

 

Other loan information

 

Of the $84.4 million special mention and $134.4 million substandard loans at December 31, 2024, $13.2 million was modified in the fourth quarter of 2024 and received a reduction in interest rate and a combination of full and partial payment deferrals. Not included in that modification total were $27.6 million of balances which we recapitalized with a new borrower, who negotiated payment deferrals and rate reductions. The “as is” and “as stabilized” LTVs for the $13.2 million balance were 80% and 69%, respectively, while weighted average LTVs for the $27.6 million were 79% and 70%, respectively. These LTVs are based upon appraisals performed within the past twelve months.

 

 

Other real estate owned year to date activity

 

	December 31, 2024
Beginning balance	$	16,949
Transfer from loans, net		42,120
Transfer from commercial loans, at fair value		2,863
Sales		(1,602)
Advances		1,695
Ending balance	$	62,025

 

 

 

		December 31,			September 30,			June 30,			December 31,
		2024			2024			2024			2023
		(Dollars in thousands)
Asset quality ratios:
Nonperforming loans to total loans(1)		0.55%			0.52%			0.34%			0.25%
Nonperforming assets to total assets(1)		1.10%			1.14%			0.95%			0.39%
Allowance for credit losses to total loans		0.52%			0.52%			0.51%			0.51%

 

⁽¹⁾ In the first quarter of 2024, a $39.4 million apartment building rehabilitation bridge loan with a December 31, 2024 balance of $41.1 million was transferred to nonaccrual status. On April 2, 2024, the same loan was transferred from nonaccrual status to other real estate owned. We intend to complete the improvements, which have already begun, on the underlying apartment building. During the time that improvements are being completed, the Company intends to have a property manager lease improved units as they become available, prior to the sale of the property. The $41.1 million loan balance compares to a September 2023 third-party “as is” appraisal of $47.8 million, or an 83% “as is” LTV, after considering the $1.6 million of earnest money deposits in connections with the property’s sale in process. Additional potential collateral value may further increase as construction progresses, and units are re-leased at stabilized rental rates. Please see “Recent Developments” which summarizes the agreement of sale for this property.

 

 

Gross dollar volume (GDV)(1)	Three months ended
	December 31,			September 30,			June 30,			December 31,
	2024			2024			2024			2023
		(Dollars in thousands)
Prepaid and debit card GDV	$	39,656,909		$	37,898,006		$	37,139,200		$	33,292,350

 

⁽¹⁾ Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank, N.A.

 

 

 

Business line quarterly summary:
Quarter ended December 31, 2024
(Dollars in millions)
				Balances
						% Growth
Major business lines		Average approximate rates(1)		Balances(2)		Year over Year		Linked quarter annualized
Loans
Institutional banking(3)		6.5%		$              1,838		(1%)		10%
Small business lending(4)		7.5%		987		12%		11%
Leasing		8.1%		701		2%		(6%)
Commercial real estate (non-SBA loans, at fair value)		7.8%		133		nm		nm
Real estate bridge loans (recorded at book value)		8.7%		2,109		5%		(15%)
Consumer fintech loans - interest bearing		5.3%		19		nm		nm
Consumer fintech loans - non-interest bearing(5)		—		435		nm		nm
Weighted average yield		7.2%		$              6,222						Non-interest income
												% Growth
Deposits: Fintech solutions group										Current quarter		Year over Year
Prepaid and debit card issuance, consumer fintech loan fees, and other payments		2.2%		$              6,985		16%		nm		$                 32.3		29%

 

⁽¹⁾ Average rates are for the three months ended December 31, 2024.

⁽²⁾ Loan and deposit categories are based on period-end and average quarterly balances, respectively. 

⁽³⁾ Institutional Banking loans are comprised of SBLOC loans collateralized by marketable securities, IBLOC loans collateralized by the cash surrender value of eligible life insurance policies, and investment advisor financing.

⁽⁴⁾ Small Business Lending is substantially comprised of SBA-guaranteed loans. Growth rates exclude the impact of $9 million of loans that do not qualify for true sale accounting at December 31, 2024 compared to $29 million at the prior year and prior quarter end.

⁽⁵⁾ Income related to non-interest-bearing balances is included in non-interest income.

 

Summary of credit lines available

 

The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.

 

	December 31, 2024
		(Dollars in thousands)
Federal Reserve Bank	$	1,987,218
Federal Home Loan Bank		1,015,541
Total lines of credit available	$	3,002,759

 

Estimated insured vs uninsured deposits

 

The vast majority of The Bancorp’s deposits are insured and low balance and accordingly do not constitute the liquidity risk experienced by certain institutions. Accordingly, the deposit base is comprised as follows.

 

	December 31, 2024
Insured		94%
Low balance accounts		3%
Other uninsured		3%
Total deposits		100%

 

 

Calculation of efficiency ratio (non-GAAP)⁽¹⁾

 

	Three months ended						Year ended
	December 31,			December 31,			December 31,			December 31,
	2024			2023			2024			2023
	(Dollars in thousands)
Net interest income	$	94,296		$	92,159		$	376,241		$	354,052
Non-interest income(2)		34,651			26,989			126,863			112,094
Total revenue	$	128,947		$	119,148		$	503,104		$	466,146
Non-interest expense	$	51,812		$	45,610		$	203,225		$	191,042
Efficiency ratio		40%			38%			40%			41%
(1) The efficiency ratio is calculated by dividing GAAP total non-interest expense by the total of GAAP net interest income and non-interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.
(2) Excludes $19.6 million in 2024. Lending agreements related to consumer fintech loans had certain provisions accounted for as freestanding credit enhancements which resulted in the company recording a $19.6 million provision for credit losses and a correlated amount in non-interest income resulting in no impact to net income.

 

 

 

 

Exhibit 99.2

 

THE BANCORP INVESTOR PRESENTATION JANUARY 2025

2 DISCLOSURES Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) 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 “intend,” “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “plan,” “estimate,” “continue,” or similar words. Forward - looking statements include but are not limited to, statements regarding our annual fiscal 2024 results, profitability, and increased volumes, and relate to our current assumptions, projections, and expectations about our business and future events, including current expectations about important economic, political, and technological factors, among other factors, 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. Factors that could cause results to differ from those expressed in the forward - looking statements also include, but are not limited to, the risks and uncertainties referenced or described in The Bancorp’s filings with the Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10 - K for the fiscal year ended December 31, 2023 and other documents that the Company files from time to time with the Securities and Exchange Commission. The Bancorp does not undertake any duty 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”), such as those identified in the Appendix. As a result, such information may not conform to SEC Regulations, including Regulation S - X, and may be adjusted and presented differently in filings with the SEC. Any non - GAAP financial measures used in this presentation are in addition to, and should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. Non - GAAP financial measures are subject to significant inherent limitations. The non - GAAP measures presented herein may not be comparable to similar non - GAAP measures presented by other companies. This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying economic and other assumptions relied upon by such sources. The Company believes that its market, industry, and economic data is accurate and that its estimates and assumptions are reasonable, but there can be no assurance as to the accuracy or completeness thereof. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp’s website at www.thebancorp.com . FORWARD LOOKING STATEMENTS & OTHER DISCLOSURES

3 FINANCIAL PERFORMANCE DELIVERING STRONG FINANCIAL PERFORMANCE 2024 2023 2022 2021 8% 31% 12% 13% REVENUE GROWTH 1 GROWTH 27% 26% 19% 18% ROE PROFITABILITY 2.7% 2.6% 1.8% 1.7% ROA 40% 41% 48% 53% EFFICIENCY RATIO 1 SCALABLE PLATFORM KEY FINANCIAL METRICS 1 Please see Appendix slide 31 for reconciliation of revenue growth over comparable prior year period and efficiency ratio. Increasing levels of profitability Platform delivering operating leverage Capitalized on interest rate environment SUSTAINED PERFORMANCE The Bancorp is continuing to deliver high quality financial performance

4 EARNINGS GUIDANCE DELIVERING STRONG FINANCIAL PERFORMANCE GUIDANCE Our 2025 guidance 1 is $5.25 per share as we maintain strong momentum across our platform 1 2025 guidance excludes impact of 2025 share repurchases. Additionally, guidance assumes achievement of management’s strategic goals as described elsewhere in this presentation and other budgetary goals. $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 2022 2023 2024 2025 Guidance EARNINGS PER SHARE $5.25 $2.27 $3.49 $4.29

5 THE BANCORP CORE BUSINESS MODEL FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND ATTRACTS STABLE, LOWER - COST DEPOSITS DEPLOYED INTO ASSETS IN SPECIALIZED MARKETS THE BANCORP BUSINESS MODEL FINTECH SOLUTIONS Enabling fintech companies by providing card sponsorship, facilitating other payments activities and fintech lending COMMERCIAL LENDING Small business lending and commercial fleet leasing + INSTITUTIONAL BANKING Lending solutions for wealth management firms REAL ESTATE BRIDGE LENDING Focus on workforce housing in select markets PAYMENTS Market - leading payment activities generate stable, non - interest income and lower - cost deposits LENDING Niche lending in specialized categories and Fintech lending

6 FINTECH PARTNER BANK FINTECH LEADERSHIP PAYMENT NETWORKS FACILITATE payments between parties via the card networks. PROGRAM MANAGERS CLIENT FACING platforms deliver highly scalable banking solutions to customers with emphasis on customer acquisition and technology. REGULATORS OVERSIGHT of domestic banking and payments activities. PROCESSORS BACK - OFFICE support for program managers providing record keeping and core platform services. FINTECH ECOSYSTEM Enabling fintech companies by providing industry leading card issuing, payments facilitation and regulatory expertise to a diversified portfolio of clients

7 SPECIALIZED LENDING SPECIALIZED LENDING BUSINESS LINES LENDING BUSINESSES Core lending businesses are comprised of our specialized lending activities Institutional Banking $1.8B Emphasize core business lines and add related products and enter adjacent markets Remain positioned to capitalize on credit sponsorship opportunities Maintain balance sheet flexibility as we approach $10B in total assets Real Estate Bridge Lending $2.2B Small Business $1.0B Leasing $ 0.7B CORE LENDING BUSINESSES AS OF Q4 2024 TOTAL $ 6.2 B Established Operating Platform Scalable technology, operations and sales platforms across lending business to support sustained growth STRATEGIC OUTLOOK Consumer Fintech Lending $ 0.5B

8 2030 STRATEGY OUR 2030 STRATEGY OVERVIEW Our new 2030 strategy encompasses previous goals outlined in Vison 700 while adding new fintech opportunities Build on our strengths Create new opportunities Sustain revenue growth Enhance profitability Averting substantial event - risk Keeping the balance sheet under $10B Avoiding potential regulatory issues + + + + EVALUATION FRAMEWORK BEING MINDFUL OF: How can we build on our leading fintech partner bank model and specialized lending businesses?

2030 STRATEGY *Without competing with our partners 1 PROVIDE NEW FINTECH SERVICES 3 SUPPORT FINTECH LENDING 2 MONETIZE CORE COMPETENCIES Our 2030 plan comprises new opportunities identified across various strategic pathways: 1 Long term guidance assumes achievement of management’s long - term strategic plan as described elsewhere in this presentation, imp act of realized and expected interest rate movement, and other budgetary goals. TOTAL REVENUE >$1 Billion ROE >40% ROA >4.0% LEVERAGE > 10% LONG - TERM FINANCIAL TARGETS 1 • Niche program management • Embedded Finance • Regulatory services • Middle - office technologies • Diversified holdings across many programs with significant distribution of assets APEX 2030

FINTECH SOLUTIONS: DEPOSIT & FEE GENERATION

11 FINTECH SOLUTIONS: FEE & DEPOSIT GENERATING ACTIVITIES ENABLING LEADING FINTECH COMPANIES DEBIT PROGRAM MANAGERS (CHALLENGER BANKS) PREPAID/STORED VALUE PROGRAM MANAGERS • Provides physical and virtual card issuing • Maintains deposit balances on cards • Facilitates payments into the card networks as the sponsoring bank • Established risk and compliance function is highly scalable #6 Debit Issuing Bank 2023 2 #1 Prepaid Issuing Bank 2023 2 • Government • Employer Benefits • Corporate Disbursements • Payroll • Gift 1 Includes non - interest income from prepaid and debit card issuance plus ACH, card and other payments processing fees, and consume r credit fintech fees. 2 Nilson Report, April 2024. % TOTAL BANK REVENUE 2024 1 23 % GROSS DOLLAR VOLUME GROWTH Q4 2024 VS Q4 2023 19 %

12 FINTECH SOLUTIONS : ESTABLISHED OPERATING PLATFORM SCALABLE PLATFORM ESTABLISHED OPERATING PLATFORM • Infrastructure in place to support significant growth • Long - term relationships with multiple processors enable efficient onboarding • Continued technology investments without changes to expense base REGULATORY EXPERTISE • Financial Crimes Risk Management program with deep experience across payments ecosystem • Customized risk and compliance tools specific to the Fintech Industry OTHER PAYMENTS OFFERINGS • Rapid Funds instant payment transfer product • Potential to capitalize on credit - linked payments opportunities • Additional payments services include ACH processing for third parties INNOVATIVE SOLUTIONS Our platform supports a wide variety of strategic fintech partners through our established processor relationships, regulatory expertise, and suite of other payments products

13 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR DEPOSIT GROWTH FROM FINTECH BUSINESS HIGHLIGHTS • Stable, lower - cost deposit base anchored by contractual, multi - year relationships in our Fintech Solutions business • Fintech Solutions growth driven by increased transactional volume due to electronic banking migration and the addition of new partners $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2020 2021 2022 2023 2024 AVERAGE DEPOSITS BY PERIOD ($ BILLIONS) Fintech Solutions Group (Prepaid and Debit Card Issuance and other payments) Institutional Banking (checking and money market for higher net worth individuals) Other (Includes time deposits and other legacy deposit programs) 2.37% 2.32% 0.82% 0.10% 0.25% COST OF DEPOSITS $5.2 $5.7 $6.3 $6.4 $6.9

14 FINTECH SOLUTIONS : STABLE, LOWER - COST DEPOSIT GENERATOR STABLE DEPOSITS & SIGNIFICANT BALANCE SHEET LIQUIDITY STRONG POSITIONING Our deposit base is primarily comprised of granular, small balance, FDIC insured accounts and we maintain significant borrowing capacity on our credit lines ESTIMATED INSURED VS OTHER UNINSURED DEPOSITS December 31, 2024 94% Insured 3% Low balance accounts 3% Other uninsured 100% Total deposits SUMMARY OF CREDIT LINES AVAILABLE December 31, 2024 (Dollars in millions) 1,987 $ Federal Reserve Bank 1,016 Federal Home Loan Bank 3,003 $ Total lines of credit available 94% INSURED DEPOSITS Primarily consist of low balance accounts

LOANS, LEASES & SUPPORTING COLLATERAL

16 LOANS & LEASES STRATEGIC OUTLOOK Optimize balance sheet and r emain positioned to capitalize on credit sponsorship opportunities KEY CONSIDERATIONS FOR LENDING GROWTH MANAGE CREDIT RISK TO DESIRED LEVELS OPTIMIZE NET INTEREST MARGIN AND MONITOR INTEREST RATE SENSITIVITY MANAGE REAL ESTATE EXPOSURE TO CAPITAL LEVELS MAINTAIN FLEXIBILITY AS WE APPROACH $10B TOTAL ASSETS Building an asset mix that drives earnings and profitability while maintaining desired credit and interest rate risk characteristics

17 LOANS & LEASES LOAN PORTFOLIO OVERVIEW % OF TOTAL PORTFOLIO 12/31/2024 PRINCIPAL BALANCE ($ MILLIONS) BALANCE SHEET CATEGORY BUSINESS LINE 35% $ 2,203 Multifamily - commercial real estate (A) Real Estate Bridge Lending <1% 19 Hospitality - commercial real estate <1% 12 Retail - commercial real estate <1% 9 Other 35% 2,243 Total 16% 1,016 Securities - backed lines of credit (SBLOC) ( B) Institutional Banking 9% 548 Insurance - backed lines of credit (IBLOC) (C) 4% 274 Advisor Financing 29% 1,838 Total 6% 385 U.S. government guaranteed portion of SBA loans ( D) Small Business Lending <1% 1 Pay check Protection Program loans (PPP) ( D) 6% 354 Commercial mortgage SBA ( E) 2% 115 Non - guaranteed portion of U.S. govn’t guaranteed 7(a) loans 2% 100 Non - SBA small business loans <1% 12 Construction SBA <1% 9 Other 16% 976 Total 11% 701 Leasing ( F) Commercial Fleet Leasing 7% 454 Consumer fintech ( G) Fintech Solutions Group 2% 111 Other Other 100% $ 6,323 Total principal LOAN COLLATERAL VALUES SUPPORTED BY: A. Comprised of workforce apartment buildings in carefully selected areas B. SBLOC loans are backed by marketable securities with nominal credit losses C. IBLOC loans are backed by the cash value of life insurance policies with nominal 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 G. Consists of secured credit cards & other short - term extensions of credit

18 LOANS & LEASES: REAL ESTATE BRIDGE LENDING COMMERCIAL REAL ESTATE BRIDGE LENDING % TOTAL WEIGHTED AVG INTEREST RATE ORIGINATION DATE LTV 1 BALANCE # LOANS TYPE 98% 8.7% 70% $ 2,203 174 Multifamily (apartments) 1% 9.8% 66% 19 1 Hospitality (hotels and lodging) <1% 8.2% 72% 12 2 Retail <1% 5.0% 71% 9 2 Other 100% 8.7% 70% $ 2,243 179 Total COMMERCIAL REAL ESTATE LOANS BY TYPE ($MILLIONS) 12/31/2024 $2.2B PORTFOLIO LOANS ORIGINATED SINCE Q3 2021 RESUMPTION (ALL APARTMENT BUILDINGS) BUSINESS OVERVIEW: • Resumed floating rate bridge lending business in Q3 2021 • Lending focus on workforce apartment buildings in carefully selected markets Real Estate Bridge Lending • Vast majority of loans are apartment buildings including all the top 30 exposures • Loans originated prior to Q3 2021 will continue to be accounted for at fair value • Loans originated in 2021 and after will be held for investment and use the Current Expected Credit Loss (CECL) methodology PORTFOLIO ATTRIBUTES 1 In addition to “as is” origination date appraisals, on which the weighted average origination date LTVs are based, third part y a ppraisers also estimated “as stabilized” values, which represents additional potential collateral value as rehabilitation progresses, and units are released at stabilized rental rates, may pr ovi de even greater protection.

19 LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING BUSINESS OVERVIEW: • 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 • Advisor Finance product provides capital to transitioning financial advisors to facilitate M&A, debt restructuring, and the development of succession plans • Deposit accounts for wealth management clients • Nominal historical credit losses STRATEGIC OUTLOOK: • Regain momentum across SBLOC, IBLOC and Advisor Finance products • Evaluate new lending opportunities in adjacent markets • 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 ALWAYS A PARTNER, NEVER A COMPETITOR $ 1.8 B Q4 2024 PORTFOLIO SIZE 6.5 % 12/31/2024 EST. YIELD

20 LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING % OF PORTFOLIO PRINCIPAL BALANCE LOAN TYPE 55% $ 1,016 Securities - backed lines of credit (SBLOC) 30% 548 Insurance - backed lines of credit (IBLOC) 15% 274 Advisor Financing 100% $ 1,838 Total INSTITUTIONAL BANKING LOANS ($MILLIONS) 12/31/2024 % PRINCIPAL TO COLLATERAL PRINCIPAL BALANCE 36% $ 10 53% 9 15% 9 86% 8 46% 8 21% 7 32% 7 21% 6 37% 6 42% 6 39% $ 76 Total TOP 10 SBLOC LOANS ($MILLIONS) 12/31/2024 SECURITIES - BACKED LINES OF CREDIT • Nominal historical credit losses • Underwriting standards of generally 50% to equities and 80% or more to fixed income securities INSURANCE - BACKED LINES OF CREDIT • Nominal historical credit losses • Loans backed by the cash value of insurance policies PORTFOLIO ATTRIBUTES

21 LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING $ 987 M Q4 2024 PORTFOLIO SIZE 7.5 % 12/31/2024 EST. YIELD BUSINESS OVERVIEW: • 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 STRATEGIC OUTLOOK: • Continue delivering growth within existing small business lending platform while entering new verticals and growing the SBAlliance ® • SBAlliance ® program provides lending support to banks and financial institutions who need SBA lending capabilities through products such as: − Wholesale loan purchases − Vertical focus with expansion of funeral home lending program SBA AND OTHER SMALL BUSINESS LENDING ~$ 800 K AVERAGE 7(a) LOAN SIZE

22 LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE 1 ($MILLIONS) 12/31/2024 SMALL BUSINESS LOANS BY STATE 1 ($MILLIONS) 12/31/2024 TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE STATE $ 140 $ 6 $ 3 $ 131 California 89 4 8 77 Florida 48 4 - 44 North Carolina 36 2 - 34 New York 32 13 - 19 Pennsylvania 32 6 3 23 Texas 30 7 - 23 New Jersey 28 1 2 25 Georgia 146 30 4 112 Other States $ 581 $ 73 $ 20 $ 488 Total TOTAL SBL NON - REAL ESTATE SBL CONSTRUCTION SBL COMMERCIAL MORTGAGE TYPE $ 87 $ - $ - $ 87 Hotels (except casino hotels) and motels 70 34 - 36 Funeral homes and funeral services 33 2 2 29 Full - service restaurants 25 1 1 23 Child day care services 17 - 5 12 Car washes 16 - - 16 Homes for the elderly 15 - - 15 Outpatient mental health and substance abuse centers 15 - - 15 Gasoline stations with convenience stores 13 - - 13 General line grocery merchant wholesalers 10 2 - 8 Fitness and recreational sports centers 9 - - 9 Nursing care facilities 9 - - 9 Lawyer's office 9 1 - 8 Plumbing, heating, and air - conditioning contractors 7 - - 7 Used car dealers 246 33 12 201 Other $ 581 $ 73 $ 20 $ 488 Total 1 Excludes the government guaranteed portion of SBA 7(a) loans and 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 California representing 24% of total PORTFOLIO ATTRIBUTES

23 LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING BUSINESS OVERVIEW: • Niche provider of vehicle leasing solutions − Focus on smaller fleets (less than 150 vehicles) − Direct lessor (The Bancorp Bank, N.A. 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%), government agencies and educational institutions (~20%) STRATEGIC OUTLOOK: • Continue enhancing platform and growing balances − Enhanced sales process and support functions − Pursuing technology enhancements to scale business with efficiency • Constantly evaluating organic and inorganic growth opportunities in the vehicle space FLEET LEASING SOLUTIONS $ 701 M Q4 2024 PORTFOLIO SIZE 8.1 % 12/31/2024 EST. YIELD

24 TOTAL BALANCE STATE 16% $ 109 Florida 9% 65 New York 7% 52 Utah 7% 48 Connecticut 7% 46 California 6% 43 Pennsylvania 5% 38 New Jersey 5% 37 North Carolina 5% 37 Maryland 4% 25 Texas 3% 20 Idaho 2% 15 Washington 2% 14 Ohio 2% 14 Georgia 2% 13 Alabama 18% 125 Other states 100% $ 701 Total LOANS & LEASES: COMMERCIAL FLEET LEASING PORTFOLIO COMMERCIAL FLEET LEASING • Largest concentration is construction and government sectors • Of the $701M total portfolio, $640M are vehicle leases with the remaining $61M comprised of equipment leases PORTFOLIO ATTRIBUTES TOTAL BALANCE TYPE 19% $ 133 Government agencies and public institutions 17% 118 Construction 14% 97 Waste management and remediation services 12% 87 Real estate and rental and leasing 4% 29 Health care and social assistance 3% 22 Professional, scientific, and technical services 3% 21 Other services (except public administration) 3% 20 Wholesale trade 3% 19 General freight trucking 2% 14 Finance and insurance 2% 13 Transit and other transportation 1% 9 Mining, quarrying, and oil and gas extraction 17% 119 Other and non - classified 100% $ 701 Total DIRECT LEASE FINANCING BY STATE ($MILLIONS) 12/31/2024 DIRECT LEASE FINANCING BY TYPE ($MILLIONS) 12/31/2024

FINANCIAL REVIEW

26 FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE GROWTH HAS SIGNIFICANTLY EXCEEDED EXPENSE GROWTH 1 Revenue includes net interest income and non - interest income. Please see Appendix slide 31. 2 Non - interest income as percentage of average assets ranks in top 11% of the uniform bank performance report peer group through Q 3 2024. $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 2021 2022 2023 2024 NON - INTEREST EXPENSE $ Millions $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2021 2022 2023 2024 REVENUE 1 $ Millions HIGHLIGHTS • Revenue increases reflected normalized interest rate environment and growth in fintech revenues • Greater ratio of non - interest income to total assets compared to peers 2

27 FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES PRIMARILY REFLECTS OUR CHARGE - OFF HISTORY 1 Please see Appendix slide 32 for GAAP to Non - GAAP reconciliation of adjusted allowance for credit losses to GAAP allowance for c redit losses as % of adjusted loan balance (excluding SBLOC & IBLOC). HIGHLIGHTS • Nominal charge - offs for REBL, SBLOC, & IBLOC • SBA 7(a) loans are ~75% U.S. government guaranteed • SBA 504 loans have 50% - 60% loan to value ratios at origination $0 $5 $10 $15 $20 $25 $30 $35 2020 2021 2022 2023 2024 ALLOWANCE FOR CREDIT LOSSES ($MILLIONS) Small Business HELOC/Consumer/Other SBLOC/IBLOC/Advisor Financing 0.5% 0.5% 0.4% 0.5% 0.6% Allowance for credit losses as % of loan balance 0.7% 0.7% 0.7% 0.9% 1.4% Adjusted allowance for credit losses as % of loan balance (excluding SBLOC & IBLOC) 1 Leasing Real Estate Bridge Lending

28 FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION CAPITAL POSITION HIGHLIGHTS • Completed $250M common stock repurchase in 2024 • Planned common stock repurchase of $150M in 2025 • Corporate governance requires periodic assessment of capital minimums • Capital planning includes stress testing for unexpected conditions and events 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2021 2022 2023 2024 5.0% 10.4% 12.4% 10.7% 10.9% Tier 1 Leverage Ratio 8% 15% 17% 15% 15% Tier 1 Risk - based Capital Ratio (RBC) 1 10% 16% 18% 15% 16% Total Risk - based Capital Ratio Tier 1 RBC Ratio Total RBC Ratio Tier 1 Leverage Ratio THE BANCORP BANK, N.A. CAPITAL RATIOS Well - capitalized minimum 1 Common Equity Tier 1 to risk weighted assets is identical to Tier 1 risk - based ratio and has a 6.5% well capitalized minimum. 2 Common stock repurchase may be modified without notice at any time.

29 HISTORICAL PERFORMANCE AND LONG - TERM TARGETS FINANCIAL REVIEW: EARNINGS AND PROFITABILITY LONG - TERM TARGETS 2024 2023 2022 2021 PERFORMANCE METRICS >40% 27.2% 25.6% 19.3% 17.9% ROE > 4.0% 2.71% 2.59% 1.81% 1.68% ROA $4.29 $3.49 $2.27 $1.88 EPS >10% 10.4% 12.4% 10.7% 10.9% Bancorp Bank, N.A. Leverage Ratio <$10B $8.7B $7.7B $7.9B $6.8B Total Assets 40% 41% 48% 53% Efficiency Ratio 1 1 Please see Appendix slide 31 for calculation of efficiency ratio. Decreases in the efficiency ratio indicate greater efficien cy, i.e., lower expenses vs higher revenue.

APPENDIX

31 GAAP REVENUE & EFFICIENCY RATIO CALCULATIONS APPENDIX ($ millions) 2024 1 2023 2022 2021 The Bancorp $ 376,241 $ 354,052 $ 248,841 $ 210,876 Net interest income 126,863 112,094 105,683 104,749 Non - interest income 503,104 466,146 354,524 315,625 Total revenue 8% 31% 12% 13% Growth (Current period over previous period) $ 203,225 $ 191,042 $ 169,502 $ 168,350 Non - interest expense 40% 41% 48% 53% Efficiency Ratio 2 Payments non - interest income (Fintech Solutions business line) $ 14,596 $ 9,822 $ 8,935 $ 7,526 ACH, card, and other payment processing fees 97,413 89,417 77,236 74,654 Prepaid, debit card, and related fees 4,789 - - - Consumer credit fintech fees $ 116,798 $ 99,239 $ 86,171 $ 82,180 Total payments (Fintech Solutions) non - interest income 23% % of Total revenue 1 Excludes $19.6 million of non - interest income in 2024. Lending agreements related to consumer fintech loans had certain provisio ns accounted for as freestanding credit enhancements which resulted in the company recording a $19.6 million provision for credit losses and a correlated amount in non - interest income resulting in no impact to net income. 2 The efficiency ratio is calculated by dividing GAAP total non - interest expense by the total of GAAP net interest income and non - interest income. This ratio compares revenues generated with the amount of expense required to generate such revenues and may be used as one measure of overall efficiency.

32 RECONCILIATION OF NON - GAAP FINANCIAL METRICS TO GAAP APPENDIX ($ millions) 2024 2023 2022 2021 2020 $ 31,944 $ 27,378 $ 22,374 $ 17,806 $ 16,082 Allowance for credit losses on loans and leases GAAP 1,195 814 1,167 964 775 Allowance for credit losses on SBLOC & IBLOC 30,749 26,564 21,207 16,842 15,307 Adjusted allowance for credit losses excluding SBLOC & IBLOC 6,113,628 5,361,139 5,486,853 3,747,224 2,652,323 Total loans and leases GAAP 1,564,018 1,627,285 2,332,469 1,929,581 1,550,086 SBLOC & IBLOC $ 4,549,610 $ 3,733,854 $ 3,154,384 $ 1,817,643 $ 1,102,237 Adjusted total loans and leases excluding SBLOC & IBLOC 0.5% 0.5% 0.4% 0.5% 0.6% Allowance for credit losses as % of total loans and leases balance GAAP 0.7% 0.7% 0.7% 0.9% 1.4% Adjusted allowance for credit losses as % of adjusted total loans and leases balance 1 1 Management excludes SBLOC and IBLOC in certain of its internal analysis, due to the nature of the related loan collateral. S BLO C are collateralized by marketable securities, with loan to values based upon guideline percentages which vary based upon security type. IBLOC are collateralized by the ca sh value of life insurance.

v3.24.4

Cover	Jan. 30, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 30, 2025
Entity File Number	000-51018
Entity Registrant Name	The Bancorp, Inc.
Entity Central Index Key	0001295401
Entity Tax Identification Number	23-3016517
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	409 Silverside Road
Entity Address, City or Town	Wilmington
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19809
City Area Code	302
Local Phone Number	385-5000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	TBBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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