Form 8-K - Current report

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): July 27, 2023

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 July 27, 2023, The Bancorp, Inc. (the "Company") issued a press release regarding its earnings for the three and six months ended June 30, 2023. 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 in this Current Report, including the exhibits hereto, are being furnished 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: July 27, 2023	The Bancorp, Inc.

	By:	/s/ Paul Frenkiel
	Name:	Paul Frenkiel
	Title:	Chief Financial Officer and
		Secretary

Exhibit 99.1

The Bancorp, Inc. Reports Second Quarter 2023 Financial Results

Wilmington, DE – July 27, 2023 – The Bancorp, Inc. ("The Bancorp" or “we”) (NASDAQ: TBBK), a financial holding company, today reported financial results for the second quarter of 2023.

Highlights

The Bancorp reported net income of $49.0 million, or $0.89 per diluted share, for the quarter ended June 30, 2023, compared to net income of $30.4 million, or $0.53 per diluted share, for the quarter ended June 30, 2022, or a 68% increase in income per diluted share.

Return on assets and equity for the quarter ended June 30, 2023 amounted to 2.6% and 27%, respectively, compared to 1.7% and 19%, respectively, for the quarter ended June 30, 2022 (all percentages “annualized”).

Net interest income increased 60% to $87.2 million for the quarter ended June 30, 2023, compared to $54.6 million for the quarter ended June 30, 2022. Net interest income increases reflected the impact of continuing Federal Reserve rate increases on the Bancorp’s variable rate loans and securities.

Net interest margin amounted to 4.83% for the quarter ended June 30, 2023, compared to 3.17% for the quarter ended June 30, 2022, and 4.67% for the quarter ended March 31, 2023.

Loans, net were $5.27 billion at June 30, 2023, compared to $5.49 billion at December 31, 2022 and $4.75 billion at June 30, 2022. Those changes reflected a decrease of 2% quarter over linked quarter and an increase of 11% year over year.

Gross dollar volume (“GDV”), representing the total amounts spent on prepaid and debit cards, increased $4.38 billion, or 15%, to $32.78 billion for the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. The increase reflects 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 10% to $24.6 million for the second quarter of 2023 compared to the second quarter of 2022.

Small business loans (“SBL”), including those held at fair value, grew 10% year over year to $804.0 million at June 30, 2023, and 2% quarter over linked quarter. That growth excludes Paycheck Protection Program (“PPP”) loan balances which amounted to $3.8 million and $10.3 million at June 30, 2023 and June 30, 2022, respectively.

Direct lease financing balances increased 13% year over year to $657.3 million at June 30, 2023, and 1% quarter over linked quarter.

At June 30, 2023, real estate bridge loans of $1.83 billion had grown 4% compared to the $1.75 billion balance at March 31, 2023, and 65% compared to the June 30, 2022 balance of $1.11 billion. These real estate bridge loans consist entirely of apartment buildings.

Security backed lines of credit (“SBLOC”), insurance backed lines of credit (“IBLOC”) and investment advisor financing loans collectively decreased 15% year over year and decreased 8% quarter over linked quarter to $2.06 billion at June 30, 2023.

The average interest rate on $6.60 billion of average deposits and interest-bearing liabilities during the second quarter of 2023 was 2.37%. Average deposits of $6.48 billion for the second quarter of 2023 reflected an increase of 4% from the $6.25 billion of average deposits for the quarter ended June 30, 2022.

The Bancorp emphasizes safety and soundness, and liquidity. The vast majority of its funding is comprised of insured and small balance accounts. The Bancorp also has lines of credit with U.S. government agencies totaling approximately $2.8 billion as of June 30, 2023, as well as access to other liquidity.

As of June 30, 2023, tier one capital to assets (leverage), tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 to risk-weighted assets ratios were 10.42%, 14.97%, 15.47% and 14.97%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively. The Bancorp and its wholly owned subsidiary, The Bancorp Bank, National Association, each remain well capitalized under banking regulations.

Book value per common share at June 30, 2023 was $13.74 per share compared to $11.55 per common share at June 30, 2022, an increase of 19%. Increases resulting from retained earnings were partially offset by reductions in the market value of securities available for sale, which are recognized through equity.

The Bancorp repurchased 828,727 shares of its common stock at an average cost of $30.17 per share during the quarter ended June 30, 2023.

CEO and President Damian Kozlowski commented, “The Bancorp continued to produce record core profits and exemplar profitability in the second quarter. The outlook remains positive for 2023 and 2024 and we expect increasing profitability and earnings per share, while navigating a difficult market environment for most banks. We are maintaining guidance at $3.60 a share, without including the impact of anticipated share buy backs of $25 million per quarter in 2023.”

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, July 28, 2023 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or you may dial 1.888.259.6580, conference code 93720317. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, August 4, 2023 by dialing 1.877.674.7070, access code 720317#.

About The Bancorp

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, National Association, (or “The Bancorp Bank, N. A.”) provides 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 which 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 , and are based on current expectations about important economic, political, and technological factors, among others, 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. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see 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 those filings. The forward-looking statements speak only as of the date of this press release. The Bancorp does not undertake 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					Six months ended
	June 30,					June 30,
Consolidated condensed income statements	2023		2022			2023		2022
	(Dollars in thousands, except per share and share data)

Net interest income	$	87,195	$	54,569		$	173,011	$	107,422
Provision for (reversal of) credit losses		361		(1,450	)		2,264		3,509
Non-interest income
ACH, card and other payment processing fees		2,429		2,338			4,600		4,322
Prepaid, debit card and related fees		22,177		20,038			45,500		38,690
Net realized and unrealized gains on commercial
loans, at fair value		1,921		3,682			3,646		10,517
Leasing related income		1,511		1,545			3,001		2,518
Other non-interest income		1,298		350			1,578		470
Total non-interest income		29,336		27,953			58,325		56,517
Non-interest expense
Salaries and employee benefits		33,167		25,999			62,952		49,847
Data processing expense		1,398		1,246			2,719		2,435
Legal expense		949		1,474			1,907		2,268
Legal settlement		—		1,152			—		1,152
FDIC insurance		472		673			1,427		1,647
Software		4,317		4,165			8,554		8,029
Other non-interest expense		9,640		8,136			20,414		15,819
Total non-interest expense		49,943		42,845			97,973		81,197
Income before income taxes		66,227		41,127			131,099		79,233
Income tax expense		17,218		10,725			32,968		19,865
Net income		49,009		30,402			98,131		59,368

Net income per share - basic	$	0.89	$	0.54		$	1.78	$	1.04

Net income per share - diluted	$	0.89	$	0.53		$	1.76	$	1.03
Weighted average shares - basic		54,871,681		56,801,518			55,160,642		56,962,000
Weighted average shares - diluted		55,269,640		57,453,730			55,653,950		57,772,538

Condensed consolidated balance sheets	June 30,			March 31,			December 31,			June 30,
	2023 (unaudited)			2023 (unaudited)			2022			2022 (unaudited)
	(Dollars in thousands, except share data)
Assets:
Cash and cash equivalents
Cash and due from banks	$	6,496		$	13,736		$	24,063		$	12,873
Interest earning deposits at Federal Reserve Bank		874,050			773,446			864,126			329,992
Total cash and cash equivalents		880,546			787,182			888,189			342,865

Investment securities, available-for-sale, at fair value		776,410			787,429			766,016			826,616
Commercial loans, at fair value		396,581			493,334			589,143			995,493
Loans, net of deferred fees and costs		5,267,574			5,354,347			5,486,853			4,754,697
Allowance for credit losses		(23,284	)		(23,794	)		(22,374	)		(19,087	)
Loans, net		5,244,290			5,330,553			5,464,479			4,735,610
Federal Home Loan Bank, Atlantic Central Bankers Bank, and Federal Reserve Bank stock		20,157			12,629			12,629			1,643
Premises and equipment, net		26,408			21,319			18,401			16,693
Accrued interest receivable		34,062			33,729			32,005			19,264
Intangible assets, net		1,850			1,950			2,049			2,248
Other real estate owned		20,952			21,117			21,210			18,873
Deferred tax asset, net		19,215			18,290			19,703			23,344
Other assets		122,435			99,427			89,176			137,086
Total assets	$	7,542,906		$	7,606,959		$	7,903,000		$	7,119,735

Liabilities:
Deposits
Demand and interest checking	$	6,554,967		$	6,607,767		$	6,559,617		$	5,394,562
Savings and money market		68,084			96,890			140,496			486,189
Time deposits, $100,000 and over		—			—			330,000			—
Total deposits		6,623,051			6,704,657			7,030,113			5,880,751

Securities sold under agreements to repurchase		42			42			42			42
Short-term borrowings		—			—			—			385,000
Senior debt		95,682			99,142			99,050			98,866
Subordinated debenture		13,401			13,401			13,401			13,401
Other long-term borrowings		9,917			9,972			10,028			39,125
Other liabilities		51,646			54,597			56,335			46,014
Total liabilities	$	6,793,739		$	6,881,811		$	7,208,969		$	6,463,199

Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value; 54,542,284 and 56,865,494 shares issued and outstanding at June 30, 2023 and 2022, respectively		54,542			55,330			55,690			56,865
Additional paid-in capital		256,115			277,814			299,279			323,774
Retained earnings		467,450			418,441			369,319			298,474
Accumulated other comprehensive loss		(28,940	)		(26,437	)		(30,257	)		(22,577	)
Total shareholders' equity		749,167			725,148			694,031			656,536

Total liabilities and shareholders' equity	$	7,542,906		$	7,606,959		$	7,903,000		$	7,119,735

Average balance sheet and net interest income	Three months ended June 30, 2023								Three months ended June 30, 2022
	(Dollars in thousands; unaudited)
	Average					Average			Average					Average
Assets:	Balance			Interest⁽¹⁾		Rate			Balance			Interest⁽¹⁾		Rate

Interest earning assets:
Loans, net of deferred fees and costs⁽²⁾	$	5,730,384		$	107,299		7.49	%	$	5,467,516		$	55,100		4.03	%
Leases-bank qualified⁽³⁾		3,801			100		10.52	%		3,665			63		6.88	%
Investment securities-taxable		778,100			9,873		5.08	%		879,112			5,432		2.47	%
Investment securities-nontaxable⁽³⁾		3,234			53		6.56	%		3,559			31		3.48	%
Interest earning deposits at Federal Reserve Bank		701,057			8,997		5.13	%		545,027			1,004		0.74	%
Net interest earning assets		7,216,576			126,322		7.00	%		6,898,879			61,630		3.57	%

Allowance for credit losses		(23,895	)							(20,295	)
Other assets		231,035								243,459
	$	7,423,716							$	7,122,043

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	6,399,750		$	36,688		2.29	%	$	5,697,507		$	4,390		0.31	%
Savings and money market		78,252			728		3.72	%		556,847			1,200		0.86	%
Total deposits		6,478,002			37,416		2.31	%		6,254,354			5,590		0.36	%

Short-term borrowings		—			—		—			11,593			32		1.10	%
Repurchase agreements		41			—		—			41			—		—
Long-term borrowings		9,949			128		5.15	%		—			—		—
Subordinated debentures		13,401			271		8.09	%		13,401			139		4.15	%
Senior debt		96,890			1,280		5.28	%		98,816			1,280		5.18	%
Total deposits and liabilities		6,598,283			39,095		2.37	%		6,378,205			7,041		0.44	%

Other liabilities		88,276								89,422
Total liabilities		6,686,559								6,467,627

Shareholders' equity		737,157								654,416
	$	7,423,716							$	7,122,043
Net interest income on tax equivalent basis⁽³⁾				$	87,227							$	54,589

Tax equivalent adjustment					32								20

Net interest income				$	87,195							$	54,569
Net interest margin⁽³⁾							4.83	%							3.17	%

⁽¹⁾Interest on loans for 2023 and 2022 includes $10,000 and $41,000, respectively, of interest and fees on PPP loans.

⁽²⁾Includes commercial loans, at fair value. All periods include non-accrual loans.

⁽³⁾Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2023 and 2022.

Average balance sheet and net interest income	Six months ended June 30, 2023								Six months ended June 30, 2022
	(Dollars in thousands; unaudited)
	Average					Average			Average					Average
Assets:	Balance			Interest⁽¹⁾		Rate			Balance			Interest⁽¹⁾		Rate

Interest earning assets:
Loans, net of deferred fees and costs⁽²⁾	$	5,858,040		$	213,503		7.29	%	$	5,302,850		$	105,638		3.98	%
Leases-bank qualified⁽³⁾		3,582			169		9.44	%		3,839			130		6.77	%
Investment securities-taxable		776,089			19,173		4.94	%		909,017			10,323		2.27	%
Investment securities-nontaxable⁽³⁾		3,288			94		5.72	%		3,559			62		3.48	%
Interest earning deposits at Federal Reserve Bank		640,864			15,582		4.86	%		616,865			1,351		0.44	%
Net interest earning assets		7,281,863			248,521		6.83	%		6,836,130			117,504		3.44	%

Allowance for credit losses		(23,215	)							(19,075	)
Other assets		234,037								232,402
	$	7,492,685							$	7,049,457

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	6,401,678		$	69,071		2.16	%	$	5,636,415		$	5,796		0.21	%
Savings and money market		105,105			1,947		3.70	%		544,515			1,400		0.51	%
Time deposits		41,933			858		4.09	%		—			—		—
Total deposits		6,548,716			71,876		2.20	%		6,180,930			7,196		0.23	%

Short-term borrowings		10,193			234		4.59	%		6,104			32		1.05	%
Repurchase agreements		41			—		—			41			—		—
Long-term borrowings		9,973			254		5.09	%		—			—		—
Subordinated debentures		13,401			532		7.94	%		13,401			255		3.81	%
Senior debt		97,985			2,559		5.22	%		98,770			2,559		5.18	%
Total deposits and liabilities		6,680,309			75,455		2.26	%		6,299,246			10,042		0.32	%

Other liabilities		90,777								95,716
Total liabilities		6,771,086								6,394,962

Shareholders' equity		721,599								654,495
	$	7,492,685							$	7,049,457
Net interest income on tax equivalent basis⁽³⁾				$	173,066							$	107,462

Tax equivalent adjustment					55								40

Net interest income				$	173,011							$	107,422
Net interest margin⁽³⁾							4.75	%							3.14	%

⁽¹⁾Interest on loans for 2023 and 2022 includes $20,000 and $481,000, respectively, of interest and fees on PPP loans.

⁽²⁾Includes commercial loans, at fair value. All periods include non-accrual loans.

⁽³⁾Full taxable equivalent basis, using 21% respective statutory federal tax rates in 2023 and 2022.

Allowance for credit losses	Six months ended						Year ended
	June 30,			June 30,			December 31,
	2023 (unaudited)			2022 (unaudited)			2022
	(Dollars in thousands)

Balance in the allowance for credit losses at beginning of period	$	22,374		$	17,806		$	17,806

Loans charged-off:
SBA non-real estate		871			844			885
Direct lease financing		1,439			199			576
Consumer - other		3			—			—
Total		2,313			1,043			1,461

Recoveries:
SBA non-real estate		298			33			140
SBA commercial mortgage		75			—			—
Direct lease financing		175			93			124
Consumer - home equity		49			—			—
Other loans		—			—			24
Total		597			126			288
Net charge-offs		1,716			917			1,173
Provision for credit losses, excluding commitment provision		2,626			2,198			5,741

Balance in allowance for credit losses at end of period	$	23,284		$	19,087		$	22,374
Net charge-offs/average loans		0.03	%		0.02	%		0.03	%
Net charge-offs/average assets		0.02	%		0.01	%		0.02	%

Loan portfolio	June 30,		March 31,		December 31,		June 30,
	2023 (unaudited)		2023 (unaudited)		2022		2022 (unaudited)
	(Dollars in thousands)

SBL non-real estate	$	117,621	$	114,334	$	108,954	$	112,854
SBL commercial mortgage		515,008		492,798		474,496		425,219
SBL construction		32,471		33,116		30,864		27,042
Small business loans		665,100		640,248		614,314		565,115
Direct lease financing		657,316		652,541		632,160		583,086
SBLOC / IBLOC⁽¹⁾		1,883,607		2,053,450		2,332,469		2,274,256
Advisor financing⁽²⁾		173,376		189,425		172,468		155,235
Real estate bridge loans		1,826,227		1,752,322		1,669,031		1,106,875
Other loans⁽³⁾		55,644		60,210		61,679		63,514
		5,261,270		5,348,196		5,482,121		4,748,081
Unamortized loan fees and costs		6,304		6,151		4,732		6,616
Total loans, including unamortized fees and costs	$	5,267,574	$	5,354,347	$	5,486,853	$	4,754,697

Small business portfolio	June 30,		March 31,		December 31,		June 30,
	2023 (unaudited)		2023 (unaudited)		2022		2022 (unaudited)
	(Dollars in thousands)

SBL, including unamortized fees and costs	$	673,667	$	648,858	$	621,641	$	571,559
SBL, included in loans, at fair value		134,131		140,909		146,717		168,579
Total small business loans⁽⁴⁾	$	807,798	$	789,767	$	768,358	$	740,138

⁽¹⁾SBLOC are collateralized by marketable securities, while IBLOC are collateralized by the cash surrender value of insurance policies. At June 30, 2023 and December 31, 2022, IBLOC loans amounted to $806.1 million and $1.12 billion, 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 (“LTV”) ratios of 70%, based on third-party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.

⁽³⁾Includes demand deposit overdrafts reclassified as loan balances totaling $403,000 and $2.6 million at June 30, 2023 and December 31, 2022, respectively. Estimated overdraft charge-offs and recoveries are reflected in the ACL and are immaterial.

⁽⁴⁾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 June 30, 2023


	Loan principal
	(Dollars in millions)
U.S. government guaranteed portion of SBA loans⁽¹⁾	$	382
PPP loans⁽¹⁾		4
Commercial mortgage SBA⁽²⁾		259
Construction SBA⁽³⁾		12
Non-guaranteed portion of U.S. government guaranteed 7(a) Program loans⁽⁴⁾		105
Non-SBA SBLs		35
Total principal	$	797
Unamortized fees and costs		11
Total SBLs	$	808

⁽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 $8.0 million in 504 Program first mortgages with an origination date LTV of 50-60%, and $4.0 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.

Small business loans by type as of June 30, 2023

(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 and motels	$	74	$	—	$	—	$	74	18%
Full-service restaurants		24		4		2		30	7%
Funeral homes and funeral services		27		—		—		27	7%
Car washes		17		2		—		19	5%
Child day care services		15		1		1		17	4%
Outpatient mental health and substance abuse centers		16		—		—		16	4%
Homes for the elderly		13		—		—		13	3%
Gasoline stations with convenience stores		12		—		—		12	3%
Offices of lawyers		9		—		—		9	2%
Fitness and recreational sports centers		8		—		2		10	2%
Lessors of other real estate property		8		—		1		9	2%
Limited-service restaurants		2		2		3		7	2%
General warehousing and storage		7		—		—		7	2%
Plumbing, heating, and air-conditioning companies		6		—		1		7	2%
Specialty trade contractors		5		—		1		6	1%
Lessors of residential buildings and dwellings		5		—		—		5	1%
Other miscellaneous durable goods merchant		5		—		—		5	1%
Technical and trade schools		—		5		—		5	1%
Packaged frozen food merchant wholesalers		5		—		—		5	1%
Amusement and recreation industries		4		—		—		4	1%
Offices of dentists		2		1		—		3	1%
Warehousing and storage		3		—		—		3	1%
Vocational rehabilitation services		3		—		—		3	1%
Miscellaneous wood product manufacturing		3		—		—		3	1%
Other⁽²⁾		88		—		24		112	27%
Total	$	361	$	15	$	35	$	411	100%

⁽¹⁾Of the SBL commercial mortgage and SBL construction loans, $106.0 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.

⁽²⁾Loan types of less than $3.0 million are spread over approximately one hundred different business types.

State diversification as of June 30, 2023

(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	$	74	$	4	$	3	$	81	20%
Florida		68		1		3		72	18%
North Carolina		33		7		2		42	10%
New York		26		—		3		29	7%
New Jersey		20		—		3		23	6%
Pennsylvania		21		—		—		21	5%
Georgia		16		—		1		17	4%
Illinois		14		—		1		15	4%
Texas		12		—		4		16	4%
Other States <$15 million		77		3		15		95	22%
Total	$	361	$	15	$	35	$	411	100%

Top 10 loans as of June 30, 2023

Type⁽¹⁾	State		SBL commercial mortgage
		(Dollars in millions)
Mental health and substance abuse center		FL	$	10
Funeral homes and funeral services		ME		9
Hotel		FL		9
Lawyer's office		CA		8
Hotel		NC		7
General warehousing and storage		PA		7
Hotel		FL		6
Hotel		NY		6
Hotel		NC		6
Mental health and substance abuse center		NJ		5
Total			$	73

⁽¹⁾All ten largest loans in our SBL portfolio are SBA 504 Program loans with 50%-60% origination date LTVs. 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 June 30, 2023

Type	# Loans		Balance	Weighted average origination date LTV	Weighted average interest rate
	(Dollars in millions)
Real estate bridge loans (multi-family apartment loans recorded at amortized cost)⁽¹⁾	136	$	1,826	71%	8.90%

Non-SBA commercial real estate loans, at fair value:
Multi-family (apartment bridge loans)⁽¹⁾	12	$	216	76%	8.70%
Hospitality (hotels and lodging)	2		28	65%	9.10%
Retail	2		12	72%	7.30%
Other	2		9	73%	5.20%
	18		265	74%	8.55%
Fair value adjustment			(3)
Total non-SBA commercial real estate loans, at fair value			262
Total commercial real estate loans		$	2,088	72%	8.87%

⁽¹⁾In the third quarter of 2021, we resumed the origination of multi-family apartment loans. These are similar to the multi-family apartment loans carried at fair value, but at origination are intended to be held on the balance sheet, so they are not accounted for at fair value.

State diversification as of June 30, 2023				15 largest loans as of June 30, 2023

State		Balance	Origination date LTV	State		Balance	Origination date LTV
(Dollars in millions)				(Dollars in millions)
Texas	$	768	73%	Texas	$	43	72%
Georgia		258	70%	Texas		42	75%
Florida		220	70%	Texas		39	75%
Ohio		91	69%	Tennessee		37	72%
Tennessee		84	70%	Michigan		37	62%
Michigan		69	70%	Florida		33	72%
Alabama		67	72%	Texas		33	67%
Other States each <$65 million		531	72%	Michigan		33	79%
Total	$	2,088	72%	Oklahoma		31	78%
				Texas		31	62%
				Indiana		30	76%
				Ohio		29	74%
				Georgia		29	69%
				Texas		29	77%
				New Jersey		28	77%
				15 largest commercial real estate loans	$	504	73%

Institutional banking loans outstanding at June 30, 2023

Type	Principal		% of total
		(Dollars in millions)
SBLOC	$	1,078	52%
IBLOC		806	39%
Advisor financing		173	9%
Total	$	2,057	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 SBLOCs 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 June 30, 2023

	Principal amount		% Principal to collateral
	(Dollars in millions)
	$	18	41%
		16	62%
		14	35%
		10	32%
		9	64%
		9	44%
		8	70%
		8	73%
		6	29%
		6	51%
Total and weighted average	$	104	49%

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 June 30, 2023, all were rated A- (Excellent) or better by AM BEST.

Direct lease financing by type as of June 30, 2023

		Principal balance⁽¹⁾	% Total
		(Dollars in millions)
Construction	$	118	18%
Government agencies and public institutions⁽²⁾		82	12%
Waste management and remediation services		81	12%
Real estate and rental and leasing		71	11%
Retail trade		47	7%
Health care and social assistance		30	5%
Manufacturing		22	3%
Professional, scientific, and technical services		21	3%
Finance and insurance		18	3%
Wholesale trade		17	3%
Transportation and warehousing		12	2%
Educational services		9	1%
Mining, quarrying, and oil and gas extraction		8	1%
Other		121	19%
Total	$	657	100%

⁽¹⁾Of the total $657.0 million of direct lease financing, $579.0 million consisted of vehicle leases with the remaining balance consisting of equipment leases.

⁽²⁾Includes public universities and school districts.

Direct lease financing by state as of June 30, 2023

State		Principal balance	% Total
		(Dollars in millions)
Florida	$	93	14%
Utah		65	10%
California		61	9%
Pennsylvania		40	6%
New Jersey		39	6%
New York		33	5%
North Carolina		32	5%
Texas		30	5%
Maryland		29	4%
Connecticut		27	4%
Washington		16	2%
Idaho		16	2%
Georgia		14	2%
Iowa		13	2%
Ohio		12	2%
Other States		137	22%
Total	$	657	100%

Capital ratios	Tier 1 capital	Tier 1 capital	Total capital	Common equity
	to average	to risk-weighted	to risk-weighted	tier 1 to risk
	assets ratio	assets ratio	assets ratio	weighted assets
As of June 30, 2023
The Bancorp, Inc.	10.42%	14.97%	15.47%	14.97%
The Bancorp Bank, National Association	11.59%	16.67%	17.16%	16.67%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%	8.00%	10.00%	6.50%

As of December 31, 2022
The Bancorp, Inc.	9.63%	13.40%	13.87%	13.40%
The Bancorp Bank, National Association	10.73%	14.95%	15.42%	14.95%
"Well capitalized" institution (under federal regulations-Basel III)	5.00%	8.00%	10.00%	6.50%

	Three months ended				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Selected operating ratios
Return on average assets⁽¹⁾		2.65%		1.71%		2.64%		1.70%
Return on average equity⁽¹⁾		26.67%		18.63%		27.42%		18.29%
Net interest margin		4.83%		3.17%		4.75%		3.14%

⁽¹⁾Annualized


Book value per share table	June 30,		March 31,			December 31,	June 30,
	2023		2023		2022		2022
Book value per share	$	13.74	$	13.11	$	12.46		11.55

Loan quality table		June 30,		March 31,		December 31,		June 30,
		2023		2022		2022		2022
		(Dollars in thousands)
Nonperforming loans to total loans		0.28%		0.26%		0.33%		0.18%
Nonperforming assets to total assets		0.47%		0.46%		0.50%		0.39%
Allowance for credit losses to total loans		0.44%		0.44%		0.41%		0.40%

Nonaccrual loans	$	14,027	$	12,938	$	10,356	$	3,698
Loans 90 days past due still accruing interest		563		873		7,775		4,848
Other real estate owned		20,952		21,117		21,210		18,873
Total nonperforming assets	$	35,542	$	34,928	$	39,341	$	27,419


Gross dollar volume (GDV) ⁽¹⁾	Three months ended
	June 30,		March 31,		December 31,		June 30,
	2023		2022		2022		2022
		(Dollars in thousands)
Prepaid and debit card GDV	$	32,776,154	$	34,011,792	$	29,454,074	$	28,394,897

⁽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 June 30, 2023
(Dollars in millions)

		Balances
				% Growth
Major business lines	Average approximate rates⁽¹⁾	Balances⁽²⁾		Year over year	Linked quarter annualized
Loans
Institutional banking⁽³⁾	6.4%	$ 2,057		(15%)	(33%)
Small business lending⁽⁴⁾	6.8%	808		10%	9%
Leasing	6.9%	657		13%	2%
Commercial real estate (non-SBA loans, at fair value)	8.5%	262		nm	nm
Real estate bridge loans (recorded at book value)	9.0%	1,826		65%	17%
Weighted average yield	7.5%	$ 5,610				Non-interest income
							% Growth
Deposits: Fintech solutions group						Current quarter	Year over year
Prepaid and debit card issuance, and other payments	2.3%	$ 5,98	5	6%	nm	$ 24.6	10%

⁽¹⁾Average rates are for the three months ended June 30, 2023.

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

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

⁽⁴⁾Small Business Lending is substantially comprised of SBA loans. Loan growth percentages exclude short-term PPP loans.

Summary of credit lines available

Notwithstanding that the vast majority of The Bancorp’s funding is comprised of insured and small balance accounts, The Bancorp maintains lines of credit exceeding potential liquidity requirements as follows. The Bancorp also has access to other substantial sources of liquidity.

	June 30, 2023
		(Dollars in thousands)
Federal Reserve Bank	$	2,055,492
Federal Home Loan Bank		752,400
Total lines of credit available	$	2,807,892

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.

	June 30, 2023
Insured		91%
Low balance accounts		5%
Other uninsured		4%
Total deposits		100%

Calculation of efficiency ratio⁽¹⁾

	Three months ended
	June 30,		December 31,
	2023		2022
	(Dollars in thousands)
Net interest income	$	87,195	$	76,760
Non-interest income		29,336		25,740
Total revenue	$	116,531	$	102,500
Non-interest expense	$	49,943	$	43,475

Efficiency ratio		43%		42%

⁽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.

Exhibit 99.2

J U L Y 2023 THE BANCORP INVESTOR PRESENTATION

2 FORWARD LOOKING STATEMENTS & OTHER DISCLOSURES D I S C L O S U R E S Statements in this presentation regarding The Bancorp, Inc.’s (“The Bancorp”) business that are not historical facts or concern our earnings guidance or 2030 plan are “forward - looking statements”. 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, and are based on current expectations about important economic, political, and technological factors, among others, 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. These risks and uncertainties include those relating to the on - going COVID - 19 pandemic, the impact it will have on the company’s business and the industry as a whole, and the resulting governmental and societal responses. 2023 guidance and long - term financial targets in this presentation assume achievement of management’s credit roadmap growth goals as described herein and other growth goals. If such assumptions are not met, guidance and long - term financial targets might not be reached. For further discussion of these risks and uncertainties, see the “risk factors” sections contained, in The Bancorp’s Annual Report on Form 10 - K for the year ended December 31, 2022 and in its other public filings with the SEC. In addition, these forward - looking statements are based upon 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 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. 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 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 information may be presented differently in future filings by The Bancorp with the SEC. This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third - party service providers. The Bancorp makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of such information. 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 . This presentation is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Neither the SEC nor any other regulatory body has approved or disapproved of the securities of The Bancorp or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense.

3 THE BANCORP HAS DELIVERED S TRONG FINANCIAL PERFORMANCE KEY FINANCIAL METRICS F I N A N C I A L P E R F O R M A N C E SUSTAINED PERFORMANCE The Bancorp is continuing to deliver high quality financial performance across key financial metrics 1 Please see Appendix slide 33 for reconciliation of revenue growth over comparable prior year period and efficiency ratio 2020 2021 2022 Q2 YTD 2023 GROWTH REVENUE GROWTH 1 14% 13% 12% 41% Capitalized on interest rate environment ROE 15% 18% 19% 27% PROFITABILITY Increasing levels of profitability ROA 1.3% 1.7% 1.8% 2.6% SCALABLE PLATFORM EFFICIENCY RATIO 1 59% 53% 48% Platform delivering 42% operating leverage

4 OUR BUSINESS PLAN OUTLINES THE PATH TO EXPAND OUR LEADERSHIP AMONG PEER BANKS AND IN THE PAYMENTS INDUSTRY $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 EARNINGS PER SHARE E A R N I N G S G U I D A N C E GUIDANCE Our 2023 guidance 1 is $3.60 per share as we maintain strong momentum across our platform $1.00 $0.50 $0.00 2020 2021 2022 2023 Guidance 1 2023 guidance assumes achievement of management’s credit roadmap growth goals as described elsewhere in this presentation, impact of realized and expected interest rate increases, and other budgetary goals. $1.37 $1.88 $2.27 $3.60 Updated to $3.60 in Q1 2023

5 FINANCIAL INDUSTRY LEADER FORTUNE 100 FASTEST GROWING COMPANY RANKED #28 OCT. 2020 FORUM OF EXECUTIVE WOMEN Champion of Board Diversity Honoree OCT. 2022 IPA CONSUMER CHAMPION APR. 2021 NILSON REPORT RANKED #1 PREPAID CARD ISSUER APRIL 2023 EQUAL OPPORTUNITY PUBLICATION TOP EMPLOYER READERS CHOICE MAR. 2023 – RANKED #23 MAR. 2022 – RANKED #25 S&P SMALL CAP 600 ADDED TO RATING MAY 2021 I N D U S T R Y L E A D E R S H I P NILSON REPORT RANKED #6 DEBIT ISSUING BANK APRIL 2023 RECOGNIZED PERFORMANCE At The Bancorp, we strive for excellence and have been recognized in the market as a leader across a variety of industry rankings BANK DIRECTOR RANKING BANKING RANKED #1 >$5B Assets 1 1 Ranked #3 for full Bank Director Ranking Banking universe as of 2022 publication.

6 FINTECH LEADERSHIP THE BANCORP IS A KEY PLAYER IN THE PAYMENTS ECOSYSTEM FINTECH ECOSYSTEM Enabling fintech companies by providing industry leading card issuing, payments facilitation and regulatory expertise to a diversified portfolio of clients 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. F I N T E C H E C O S Y S T E M

7 SPECIALIZED LENDING BUSINESS LINES AND CREDIT ROADMAP Emphasis on core business lines with expectation to add related products and enter adjacent markets Expand commercial real estate bridge lending business with focus on multi - family assets Remain positioned to capitalize on credit - linked payments opportunities Maintain balance sheet flexibility as we approach $10B in total assets Institutional Banking Real Estate Bridge Lending Small Business Leasing $2.1B $2.1B $0.8B $0.6B CORE LENDING BUSINESSES AS OF Q2 2023 TOTAL $5.6B Established Operating Platform Scalable technology, operations and sales platforms across lending business to support sustained growth CREDIT ROADMAP C R E D I T R O A D M A P CREDIT ROADMAP We created a credit roadmap which outlines multi - year growth strategies across our specialized lending business lines

8 OUR STRATEGIC POSITIONING SHOULD DRIVE EARNINGS AND PROFITABILITY HIGHLIGHTS Our platform can deliver growth from our specialized lending activities while remaining positioned to capitalize on new and higher - growth fintech partnerships SPECIALIZED COMMERCIAL BANKS Efficient platforms Products in focused markets Higher growth than traditional banking We can achieve our long - term financial targets by maintaining flexibility to capitalize on growth opportunities in both fintech and specialty commercial banking T H E B A N C O R P B U S I N E S S M O D E L We participate in the high - growth fintech markets by partnering with leading companies Our specialized lending businesses are supported by an established operating platform and have delivered meaningful growth NON - BANK FINANCIAL TECHNOLOGY COMPANIES (FINTECH) Rapid growth Technology driven Alternatives to traditional banking

9 FINANCIAL TARGETS We have amended our Vision 500 to include enhanced 2030 financial targets that can be achieved by unlocking the full potential of The Bancorp’s payments and lending businesses CAPITAL RETURN Established the plan to optimize our balance sheet Enhance plan to maximize capital return to shareholders PAYMENTS ECOSYSTEM Activate Payments Ecosystem 2.0 CREDIT ROADMAP LONG TERM FINANCIAL TARGETS 1 TOTAL REVENUE ROE ROA LEVERAGE >$700 Million >30% >2.5% > 9% F I N A N C I A L T A R G E T S 1 Long term guidance assumes achievement of management’s credit roadmap growth goals as described elsewhere in this presentation, impact of realized and expected interest rate increases, and other budgetary goals. VISION 700

10 FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND ATTRACTS STABLE, LOWER - COST DEPOSITS DEPLOYED INTO LOWER RISK ASSETS IN SPECIALIZED MARKETS FINTECH SOLUTIONS Enabling fintech companies by providing card sponsorship and facilitating other payments activities INSTITUTIONAL BANKING Lending solutions for wealth management firms + COMMERCIAL LENDING Small business lending and commercial fleet leasing T H E B A N C O R P B U S I N E S S M O D E L P A Y M EN TS & D E P O S I TS Market - leading payments activities generate non - interest income and stable, lower - cost deposits L E ND I NG Highly specialized lending products in high - growth markets T H E B A N C O R P B U S I N E S S M O D E L REAL ESTATE BRIDGE LENDING Focus on multi - family assets in high - growth markets

DEPOSITS & FEES: FINTECH SOLUTIONS GENERATES NON - INTEREST INCOME AND STABLE, LOWER - COST DEPOSITS

12 F I N T E C H S O L U T I O N S : F E E G E N E R A T I N G A C T I V I T I E S OUR FINTECH SOLUTIONS BUSINESS ENABLES 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 2022 2 #1 Prepaid Issuing Bank 2022 2 22 % % T O T AL B ANK R E VE NU E Q 2 Y T D 2023 1 GR OS S D OL L A R V OL U ME GR OW T H Q 2 2023 V S Q 2 2022 15 % • 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. 2 Nilson Report, April 2023.

13 F I N T E C H S O L U T I O N S : E S T A B L I S H E D O P E R A T I N G P L A T F O R M HIGHLY SCALABLE PLATFORM TO SUPPORT OUR STRATEGIC PARTNERS 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

14 DEPOSIT GROWTH FROM PAYMENTS BUSINESS F I N T E C H S O L U T I O N S : S T A B L E , L O W E R - C O S T D E P O S I T G E N E R A T O R $2.0 $1.0 $0.0 $3.0 $4.0 $5.0 $6.0 $7.0 2019 2020 2021 2022 Q2 2023 A V E R A G E D E P O S I T S B Y P E R I O D ( $ B I L L I O N S ) 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) H I GH L I GH TS • Stable, lower - cost deposit base anchored by multi - year, contractual 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 DEPOS IT TYPE ( Q 2 2023 AVG . ) B ALANC E % TOTAL Demand & Int. checking $6.4B 98% Savings & money market $0.1B 2% Total $6.5B 100% COST OF DEPOSITS 0.85% 0.25% 0.10% 0.82% 2.31% $4.0 $5.2 $5.7 $6.3 $6.5

15 STABLE DEPOSITS WITH SIGNIFICANT BALANCE SHEET LIQUIDITY F I N T E C H S O L U T I O N S : S T A B L E , L O W E R - C O S T D E P O S I T G E N E R A T O R ESTIMATED INSURED VS OTHER UNINSURED DEPOSITS June 30 , 2023 Insured 91% Low balance accounts 5% Other uninsured 4% Total deposits 100% SUMMARY OF CREDIT LINES AVAILABLE June 30 , 2023 (Dollars in millions) Federal Reserve Bank $ 2,055 Federal Home Loan Bank 752 Total l ines of credit available $ 2, 807 STRONG POSITIONING Our deposit base is primarily comprised of granular, FDIC insured accounts and we maintain significant borrowing capacity on our credit lines 91% INSURED DEPOSITS Primarily consist of small balance accounts 0% UTILIZATION At June 30, 2023

LOANS & LEASES: HIGHLY SPECIALIZED LENDING WITH LOW LOSS HISTORIES

17 L O A N S & L E A S E S : C R E D I T R O A D M A P CREDIT ROADMAP Delivering enterprise value from our balance sheet is an important element of our business strategy and a primary focus of our credit roadmap initiative MANAGE CREDIT RISK TO DESIRED LEVELS IMPROVE NIM 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 KEY CONSIDERATIONS FOR GROWTH GUIDELINES WE CONSIDERED AS WE BUILT OUR CREDIT ROADMAP

18 LOWER CREDIT RISK LOAN PORTFOLIO L O A N S & L E A S E S : S T R O N G C O L L A T E R A L A N D G O V E R N M E N T G U A R A N T E E S B USINESS LINE B ALANC E S HEET C ATEG ORY Q 2 2023 PRINC IPAL B ALANC E ( $ MILLIONS ) % OF TOTAL PORTF OLIO Securities - backed lines of credit (SBLOC) (A) $1,078 19% Institutional Banking Insurance - backed lines of credit (IBLOC) (B) $806 14% Advisor Financing $173 3% Total 2,057 36% Real Estate Bridge Lending Multifamily - commercial real estate (C) 2,042 36% Hospitality - commercial real estate 28 <1% Retail - commercial real estate 12 <1% Other 9 <1% Total 2,091 37% U.S. government guaranteed portion of SBA loans (D) 382 7% Paycheck Protection Program Loans (PPP) (D) 4 <1% Small Business Lending Commercial mortgage SBA (E) 259 5% Non - guaranteed portion of U.S. govn’t guaranteed 7(a) loans 105 2% Non - SBA small business loans 35 <1% Construction SBA 12 <1% Total 797 14% Commercial Fleet Leasing Leasing (F) 657 12% Other Other 56 1% Total principal $ 5,658 100% LOWER HISTORIC CREDIT LOSS NICHES A. SBLOC loans are backed by marketable securities with nominal credit losses B. IBLOC loans are backed by the cash value of life insurance policies with nominal credit losses C. Comprised of apartment buildings in carefully selected areas 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

19 INSTITUTIONAL BANKING L O A N S & L E A S E S : I N S T I T U T I O N A L B A N K I N G B U S I N E S S O V E R V I E W : • 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 C R E D I T R O A D M A P : • Continue momentum across current 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 AL WAYS A PAR T NE R , N EV ER A C OMP ET I T OR $ 2.1 B P OR T F OL I O SI Z E 6.4 % 6/ 30/ 2023 ES T . Y I EL D

20 INSTITUTIONAL BANKING PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING L O A N S & L E A S E S : I N S T I T U T I O N A L B A N K I N G L O A N P O R T F O L I O LOAN TYPE PRINCIPAL BALANCE % OF PORTFOLIO Securities - backed lines of credit (SBLOC) $ 1,078 52% Insurance - backed lines of credit (IBLOC) 806 39% Advisor Financing 173 9% Total $ 2,057 100% I N ST I T U T I O N A L B A N KI N G LO A N S ( $ M I LL IO N S ) 6/ 30/ 2 0 23 SECURITIES - BACKED LINES OF CREDIT • Nominal historical credit losses • Underwriting standards of generally 50 % to equities and 80 % or more to fixed income securities POR T F OL I O A TTR I B U TES PRINCIPAL BALANCE % PRINCIPAL TO COLLATERAL $ 18 41% 16 62% 14 35% 10 32% 9 64% 9 44% 8 70% 8 73% 6 29% 6 51% Total $ 104 49% T O P 10 SB LO C LO A N S ( $ M I LL IO N S ) 6/ 30/ 2 0 23 INSURANCE - BACKED LINES OF CREDIT • Nominal historical credit losses • Loans backed by the cash value of insurance policies

21 SMALL BUSINESS LENDING L O A N S & L E A S E S : S M A L L B U S I N E S S L E N D I N G B U S I N E S S O V E R V I E W : • 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 C R E D I T R O A D M A P : • Continue delivering growth within existing small business lending platform while entering new verticals and growing the SBAlliance Ő • SBAlliance Ő 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 $ 793 M P OR T F OL I O SI Z E 1 6.8 % 6/ 30/ 2023 ES T . Y I EL D ~$ 800 K AVE R AG E 7 ( a ) L OA N S I Z E 1 Excludes $4M PPP loans.

22 L O A N S & L E A S E S : S T R O N G C O L L A T E R A L & G O V E R N M E N T G U A R A N T E E S SM A LL B U SI N E S S LO A N S B Y T YP E 1 ( $ M IL LI O N S ) 6/ 30/ 2 0 23 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 20% of total POR T F OL I O A TTR I B U TES SM A LL B U SI N E S S LO A N S B Y S TA TE 1 ( $ M ILL IO N S ) 6/ 30/ 2 0 23 STATE SBL COMMERCIAL MORTGAGE SBL CONSTRUCTION SBL NON - REAL ESTATE TOTAL California $ 74 $ 4 $ 3 $ 81 Florida 68 1 3 72 North Carolina 33 7 2 42 New York 26 - 3 29 New Jersey 20 - 3 23 Pennsylvania 21 - — 21 Georgia 16 - 1 17 Texas 12 - 4 16 Illinois 14 - 1 15 Other States <$15 million 77 3 15 95 Total $ 361 $ 15 $ 35 $ 411 SMALL BUSINESS LENDING TYPE SBL COMMERCIAL MORTGAGE SBL CONSTRUCTION SBL NON - REAL ESTATE TOTAL Hotels and motels $ 74 $ - $ - $ 74 Full - service restaurants 24 4 2 30 Funeral homes and funeral services 27 - - 27 Car washes 17 2 - 19 Child day care services 15 1 1 17 Outpatient mental health and substance abuse centers 16 - - 16 Homes for the elderly 13 - - 13 Gasoline stations with convenience stores 12 - - 12 Fitness and recreational sports centers 8 - 2 10 Offices of lawyers 9 - - 9 Lessors of other real estate property 8 - 1 9 Limited - service restaurants 2 2 3 7 General warehousing and storage 7 - - 7 Plumbing, heating, and air - conditioning companies 6 - 1 7 Other 123 6 25 154 Total $ 361 $ 15 $ 35 $ 411

23 L O A N S & L E A S E S : C O M M E R C I A L F L E E T L E A S I N G B U S I N E S S O V E R V I E W : • 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 (~85%), government agencies and educational institutions (~15%) C R E D I T R O A D M A P : • 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 NICHE - VEHICLE FLEET LEASING SOLUTIONS COMMERCIAL FLEET LEASING $ 657 M P OR T F OL I O SI Z E 6.9 % 6/ 30/ 2023 ES T . Y I EL D

24 L O A N S & L E A S E S : C O M M E R C I A L F L E E T L E A S I N G P O R T F O L I O • Largest concentration is construction and government sectors • Of the $657M total portfolio, $579M are vehicle leases with the remaining $78M comprised of equipment leases POR T F OL I O A TTR I B U TES TYPE BALANCE TOTAL Construction $ 118 18% Government agencies and public institutions 82 12% Waste management and remediation services 81 12% Real estate and rental and leasing 71 11% Retail trade 47 7% Health care and social assistance 30 5% Manufacturing 22 3% Professional, scientific, and technical services 21 3% Finance and insurance 18 3% Wholesale trade 17 3% Transportation and warehousing 12 2% Educational services 9 1% Mining, quarrying, and oil and gas extractions 8 1% Other 121 19% Total $ 657 100% DI R E C T L E A S E F I N A N C I N G B Y S TA TE ( $ M I LL IO N S ) 6/ 30/ 2 0 23 COMMERCIAL FLEET LEASING STATE BALANCE TOTAL Florida 93 14% Utah 65 10% California 61 9% Pennsylvania 40 6% New Jersey 39 6% New York 33 5% North Carolina 32 5% Texas 30 5% Maryland 29 4% Connecticut 27 4% Washington 16 2% Idaho 16 2% Georgia 14 2% Iowa 13 2% Ohio 12 2% Other states 137 22% Total $ 657 100% DI R E C T L E A S E F I N A N C IN G B Y T YP E ( $ M IL LIO N S ) 6/ 30/ 2 0 23

25 COMMERCIAL REAL ESTATE BRIDGE LENDING L O A N S & L E A S E S : R E A L E S T A T E B R I D G E L E N D I N G TYPE # LOANS BALANCE ORIGINATION DATE LTV WEIGHTED AVG INTEREST RATE % TOTAL Multifamily (apartments) 148 $ 2,040 71% 8.9% 98% Hospitality (hotels and lodging) 2 27 65% 9.1% 1% Retail 2 12 72% 7.3% <1% Other 2 9 73% 5.2% <1% Total 154 $ 2,088 72% 8.9% 100% CO M M E R C I A L RE AL E S T A T E L O AN S B Y T YP E ( $ M I LLI O N S ) 6/ 30/ 2 0 23 B U S I N E S S O V E R V I E W : • Resumed floating rate bridge lending business in Q3 2021 • Lending focus on apartment buildings in carefully selected markets Real estate bridge lending APARTMENTS – 98% LODGING – 1% RETAIL – <1 % OTHER - <1 % A S S E T C L A S S E S — % P O R T F O L I O • 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 CECL methodology POR T F OL I O A TTR I B U TES $ 1,826 M L OA N S OR I GI N A T ED S I N C E Q 3 2021 R ES U MP T I ON ( A L L A P A R T M E N T B U I L D I N G S )

FINANCIAL REVIEW

27 LOANS REPRICING TO HIGHER RATES HAVE POSITIVELY IMPACTED NIM AS BENCHMARK RATES HAVE CONTINUED TO RISE F I N A N C I A L R E V I E W : I N T E R E S T R A T E S E N S I T I V I T Y 1 Loans are as of June 30, 2023, and deposits are average balance for Q2 2023. 2 Institutional Banking substantially comprised of securities backed loans and insurance backed loans. 3 Excludes $4M of short - term PPP loans which are government guaranteed and deferred costs and fees. Please see Appendix slide 35 for reconciliation to total SBA Loans. Q2 2023 BALANCE 1 ( $ M ILLIO N S ) RATE SENSITIVITY Institutional Banking 2 $2,057 Majority of loan yields will increase as rates increase Real Estate Bridge Lending $2,088 8.9% wtd avg yield; rates will increase as rates increase Non - PPP Small Business 3 $793 Majority of loan yields will increase as rates increase Leasing $657 Fixed rates but short average lives Total $5,595 Q2 2023 Average Deposits 1 $6,478 A majority of deposits adjust to a portion of rate changes in line with partner contracts Core Lending Businesses HI G HL I G HTS x Floating rate lending businesses include Real Estate Bridge Lending, SBLOC, IBLOC and the majority of Small Business x Deposits primarily comprised of prepaid and debit accounts, anchored by multi - year, contractual relationships x Interest income is modeled to increase in higher rate environments

28 REVENUE GROWTH HAS SIGNIFICANTLY EXCEEDED EXPENSE GROWTH F I N A N C I A L R E V I E W : E A R N I N G S A N D P R O F I T A B I L I T Y 1 Revenue includes net interest income and non - interest income. Please see Appendix slide 33. 2 Non - interest income as percentage of average assets ranks in top 8% of the uniform bank performance report peer group through Q1 2023. $0 $25 $50 $75 $100 $125 $150 $175 $200 2020 2021 2022 Q2 YTD 2022 Q2 YTD 2023 N O N - I N T E R E S T E X P E N S E $ Millions HI G HL I G HTS • Net interest income growth driven by increased NIM from heightened interest rate environment • Greater ratio of non - interest income to total assets compared to peers 2 $0 $50 $100 $150 $200 $250 $300 $350 2020 2021 2022 Q2 YTD 2022 Q2 YTD 2023 R E V E N U E 1 $ Millions $400

29 $0 $5 $10 $15 $20 $25 2019 2020 2021 2022 Q2 2023 ALLOWANCE FOR CREDIT LOSSES REFLECTS OUR LOWER - RISK LOAN PORTFOLIO F I N A N C I A L R E V I E W : L O A N L O S S R E S E R V E A L L O W A N C E F O R C R E D I T L O S S E S ( $ M I L L I O N S ) Small Business SBLOC/IBLOC/Advisor Financing HELOC/Consumer/Other Allowance for credit losses as % of loan balance 0.6% 0.6% 0.5% 0.4% 0.4% Adjusted allowance for credit losses as % of loan balance (excluding SBLOC & IBLOC) 1 1.2% 1.4% 0.9% 0.7% 0.7% HIG HL IG HT S • Nominal historical losses across SBLOC, IBLOC. and Advisor Finance • Adoption of CECL methodology in 2020 Leasing Real Estate Bridge Lending 1 Please see Appendix slide 34 for GAAP to Non - GAAP reconciliation of adjusted allowance for credit losses to GAAP allowance for credit losses as % of adjusted loan balance (excluding SBLOC & IBLOC).

30 CAPITAL POSITION F I N A N C I A L R E V I E W : H I S T O R I C A L C A P I T A L P O S I T I O N HIG HL IG HT S • Increased the stock buyback program to $25M per quarter in 2023 2 • Corporate governance requires periodic assessment of capital minimums • Capital planning includes stress testing for unexpected conditions and events 6% 4% 2% 0% 8% 10% 12% 14% 16% 18% 20% 2020 2021 2022 Q2 2023 Tier 1 Leverage Ratio 9.1% 10.9% 10.7% 11.6% 5.0% Tier 1 Risk - based Capital Ratio (RBC) 1 14% 15% 15% 17% 8% Total Risk - based Capital Ratio 15% 16% 15% 17% 10% Tier 1 Capital Ratio Total RBC Ratio Tier 1 Leverage Ratio T H E B A N C O R P B A N K , N . A . C A P I T A L R A T I O S 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 Buyback may be modified without notice at any time. Well - capitalized minimum

31 WE HAVE EXECUTED AGAINST OUR STRATEGIC PLAN AND CONTINUE TO IMPROVE FINANCIAL PERFORMANCE F I N A N C I A L R E V I E W : E A R N I N G S A N D P R O F I T A B I L I T Y P E R F O R M A N C E M E T R I C S 2 0 2 0 2 0 2 1 2 0 2 2 Q 2 Y T D 2 0 2 3 L O N G - T E R M T A R G E T S ROE 15.1% 17.9% 19.3% 27.4% >30% ROA 1.34% 1.68% 1.81% 2.64% > 2.5% EPS $1.37 $1.88 $2.27 $1.76 Bancorp Bank, N.A. Leverage Ratio 9.1% 10.9% 10.7% 11.6% >9% Total Assets $6.3B $6.8B $7.9B $7.5B <$10B Efficiency Ratio 1 59% 53% 48% 42% 1 Please see Appendix slide 33 for calculation of efficiency ratio. Decreases in the efficiency ratio indicate greater efficiency, i.e., lower expenses vs higher revenue.

APPENDIX

33 GAAP REVENUE AND EFFICIENCY RATIO CALCULATIONS A P P E N D I X ( $ m i l l i o n s ) The Bancorp 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 Q2 YTD 2022 Q2 YTD 2023 Net interest income $ 141,288 $ 194,866 $ 210,876 $248,841 $107,422 $173,011 Non - interest income 104,127 84,617 104,749 105,683 56,517 58,325 Total revenue 245,415 279,483 315,625 354,524 163,939 231,336 Growth (Current period over previous period) 14% 13% 12% 41% Non - interest expense $ 168,521 $ 164,847 $ 168,350 $169,502 $81,197 $97,973 Efficiency Ratio 1 69% 59% 53% 48% 49% 42% Payments non - interest income (Fintech Solutions business line) ACH, card and other payment processing fees $ 9,376 $ 7,101 $ 7,526 $8,935 $4,322 $4,600 Prepaid, debit card and related fees 65,141 74,465 74,654 77,236 38,690 45,500 Total payments (Fintech Solutions) non - interest income $ 74,517 $ 81,566 $ 82,180 $86,171 $43,012 $50,100 % of Total revenue 24% 26% 22% 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.

34 RECONCILIATION OF NON - GAAP FINANCIAL METRICS TO GAAP A P P E N D I X ( $ m i l l i o n s ) 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 Q 2 2 0 2 3 Allowance for credit losses on loans and leases GAAP $ 10,238 $ 16,082 $ 17,806 $ 22,374 $ 23,284 Allowance for credit losses on SBLOC & IBLOC 553 775 964 1,167 942 Adjusted allowance for credit losses excluding SBLOC & IBLOC 9,685 15,307 16,842 21,207 22,342 Total loans and leases GAAP 1,824,245 2,652,323 3,747,224 5,486,853 5,267,574 SBLOC & IBLOC 1,024,420 1,550,086 1,929,581 2,332,469 1,883,607 Adjusted total loans and leases excluding SBLOC & IBLOC $ 799,825 $ 1,102,237 $ 1,817,643 $ 3,154,384 $ 3,383,967 Allowance for credit losses as % of total loans and leases balance GAAP 0.6% 0.6% 0.5% 0.4% 0.4% Adjusted allowance for credit losses as % of adjusted total loans and leases balance 1 1.2% 1.4% 0.9% 0.7% 0.7% 1 Management excludes SBLOC and IBLOC in certain of its internal analysis, due to the nature of the related loan collateral. SBLOC are collateralized by marketable securities, with loan to values based upon guideline percentages which vary based upon security type. IBLOC are collateralized by the cash value of life insurance.

35 RECONCILIATION OF NON - GAAP FINANCIAL METRICS TO GAAP A P P E N D I X ( $ m i l l i o n s ) Small Business Loans 1 Q 2 2 0 2 3 U.S. government guaranteed portion of SBA loans $ 382 Paycheck Protection Program Loans (PPP) 4 Commercial mortgage SBA 259 Construction SBA 12 Non - guaranteed portion of U.S. government guaranteed 7(a) loans 105 Non - SBA small business loans 35 Total principal $ 797 Unamortized fees and costs 11 Total small business loans $ 808 Total principal 797 Less: Paycheck Protection Program Loan (PPP) 4 Total Small Business Lending principal excluding PPP $ 793 1 Management provides a breakdown of small business loans, to afford a greater understanding of its components, including PPP loans.

Cover	Jul. 27, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 27, 2023
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