The Bancorp, Inc. June 30, 2015 Highlights for Market Update Call

WILMINGTON, Del.--(BUSINESS WIRE)--

The Bancorp, Inc. TBBK, a financial holding company, provides June 30, 2015 highlights for market update call scheduled for September 30, 2015, 8:30 a.m. Eastern time. Please see The Bancorp's 10-Q for the quarter ended June 30, 2015 for detailed financial statements and other financial information.

Highlights as of June 30, 2015*:

Progress in transition to lower risk loan portfolio

• Total loans in continuing operations increased 31% to $1.25 billion
• Securities-Backed Lines of Credit increased 39% to $512.3 million
• Leasing increased 19% to $221.1 million
• Loans in the discontinued operation were reduced to $629.3 million

Progress in balance sheet management

• $900 million in non-strategic deposits to be exited in Q4 2015

Progress in meeting BSA regulatory expectations

• Significant progress of BSA remediation

Progress in earnings transition to lower risk model

• Loan growth in continuing loans is impacting earnings – $16.7 million in pre-tax earnings adjusted for fees related to BSA and restatement

Frank M. Mastrangelo, The Bancorp's Chief Executive Officer said, "We continue to make significant progress away from what our experience and cyclical downturns for the industry have indicated to be a more risky line of business, namely regional commercial real estate lending. Our discontinuance of that line of business is being offset by significant growth in our SBLOC and other loan categories, which we believe have a better risk adjusted return. The lower risk profile of SBLOC loans is confirmed by their lower capital requirements and de minimus losses, and is our largest lending line of business. We have made significant progress in addressing regulatory expectations and look forward to fully satisfying all such expectations as soon as practicable. Historically our performance ratios, including capital, have been impacted by excess deposits maintained at the Federal Reserve Bank. In the fourth quarter we anticipate that we will exit approximately $900 million of non-strategic deposit relationships. This balance sheet management will not decrease profitability, but will more accurately reflect average assets and capital ratios. As of June 30, 2015, we remain well capitalized with a book value of $8.36 per share."

Non-recurring Expense during the Six-Months Ended June 30, 2015 ($ in thousands):

Continuing Operations:
BSA consultant and lookback fees		$	14,956
Regulatory related legal fees			1,276
Discontinued operations:
Restatement related audit fees			1,525
Other real estate owned expense			1,124
Pre-tax loss-continuing operations			(9,417	)
Pre-tax income-continuing operations			7,196
Pre-tax income after analyses of non-recurring fees		$	16,660

Continuing Operations - Loan Portfolio

				June 30,				June 30,
				2015				2014
SBA non real estate				$	63,390			$	60,546
SBA commercial mortgage					85,234				90,316
SBA construction					16,977				9,936
Total SBA loans					165,601				160,798
Direct lease financing					222,169				185,878
SBLOC					512,269				367,598
Other specialty lending					32,118				38,416
Other consumer loans					27,044				40,896
					959,201				793,586
Unamortized loan fees and costs					8,832				8,169
Loans, net of deferred loan costs				$	968,033			$	801,755
Continuing operations loans held for sale					284,051				154,474
Total				$	1,252,084			$	956,229
				June 30,				June 30,
				2015				2014
Discontinued Loans				$	629,314			$	1,108,972

Capital Ratios

				Tier 1 capital to average assets ratio			Tier 1 capital to risk- weighted assets ratio			Total capital to risk- weighted assets ratio			Common equity tier 1 to risk weighted assets
As of June 30, 2015
The Bancorp				6.46	%		13.68	%		13.88	%		13.68	%
The Bancorp Bank				6.08	%		12.89	%		13.08	%		12.89	%
"Well capitalized" institution (under FDIC regulations-Basel III)				5.00	%		8.00	%		10.00	%		6.50	%
As of December 31, 2014
The Bancorp				7.07	%		11.54	%		11.67	%		n/a
The Bancorp Bank				6.46	%		10.46	%		10.59	%		n/a
"Well capitalized" institution (under FDIC regulations)				5.00	%		6.00	%		10.00	%		n/a

Market Update Conference Call Webcast

Interested parties may access the LIVE webcast of The Bancorp's Market Update Conference Call at 8:30 AM ET Wednesday, September 30, 2015 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 877.703.6102, access code 78556593. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Wednesday, October 7, 2015 by dialing 888.286.8010, access code 90377196.

About The Bancorp

The Bancorp TBBK, with operations in the United States and Europe, is a family of financial service companies dedicated to setting a new standard in financial services and payments innovation. The Bancorp specializes in providing private-label banking and technology solutions for non-bank companies ranging from entrepreneurial start-ups to those on the Fortune 500. The Bancorp Bank, one of The Bancorp's financial institutions, has been recognized as a National Preferred SBA Lender, a top custodian of Health Savings Accounts, a top ACH originator, a top merchant acquirer and is the leading issuer of prepaid cards. thebancorp.com

Forward-Looking Statements

Statements in this earnings release regarding The Bancorp, Inc.'s business, which are not historical facts, are "forward-looking statements" that involve risks and uncertainties. These statements may be identified by the use of forward-looking terminology, including but not limited to the words "may," "believe," "will," "expect," "look," "anticipate," "estimate," "continue," or similar words. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp, Inc.'s filings with the SEC, including the "Risk Factors" sections of The Bancorp Inc.'s filings. These risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. The forward-looking statements speak only as of the date of this presentation. The Bancorp, Inc. does not undertake to publicly revise or update forward-looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law.

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