Business Wire | Apr 29, 2021 04:05PM EDT

The Bancorp, Inc. Reports First Quarter 2021 Financial Results

Apr. 29, 2021

WILMINGTON, Del.--(BUSINESS WIRE)--Apr. 29, 2021--The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the first quarter of 2021.

Highlights

* For the quarter ended March 31, 2021, The Bancorp earned net income of $26.1 million from continuing operations, and $0.44 diluted earnings per share from combined continuing and discontinued operations.

* Return on assets and equity for the quarter ended March 31, 2021 amounted to 1.6% and 18%, respectively, compared to 1.6% and 17%, respectively, for the quarter ended December 31, 2020. (all percentages "annualized".)

* Net interest margin amounted to 3.34% for the quarter ended March 31, 2021, compared to 3.34% for the quarter ended March 31, 2020 and 3.58% for the quarter ended December 31, 2020.

* Net interest income increased 25% to $53.8 million for the quarter ended March 31, 2021, compared to $42.9 million for the quarter ended March 31, 2020.

* Average loans and leases, including loans at fair value, increased 37% to $4.48 billion for the quarter ended March 31, 2021, compared to $3.27 billion for the quarter ended March 31, 2020.

* Prepaid, debit card and related fees increased 4% to $19.2 million for the quarter ended March 31, 2021, compared to $18.5 million for the quarter ended March 31, 2020. Gross dollar volume (GDV), representing total spend on cards, increased 23% period over period.

* SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and advisor financing loans increased 45% year over year and 5% quarter over quarter to $1.68 billion at March 31, 2021.

* Small Business Loans, including those held at fair value, increased 16% year over year to $692.1 million at March 31, 2021, exclusive of $190.3 million of Paycheck Protection Program (PPP) balances outstanding at that date. Those balances reflect payments on previously outstanding PPP loans and $95 million of first quarter 2021 PPP loans. There were 630 PPP loans made in first quarter 2021, generating approximate fees of $3.4 million, with 90% of such loans under $350,000. Those fees will be recognized throughout full year 2021, which is the estimated period of repayment by the U.S. government.

* Leasing increased 9% year over year to $484.3 million at March 31, 2021.

* The average interest rate on $6.04 billion of average deposits and interest-bearing liabilities during the first quarter of 2021 was 0.21%. Average prepaid and debit card account deposits of $4.28 billion for first quarter 2021, reflected an increase of 36% over the $3.15 billion for the quarter ended March 31, 2020.

* Consolidated and The Bancorp Bank ("the Bank") leverage ratios were 8.62% and 8.69%, respectively, at March 31, 2021. The Bancorp and its subsidiary, The Bank, remain well capitalized.

* Book value per common share at March 31, 2021 was $10.42 per share compared to $8.69 at March 31, 2020, an increase of 20%, primarily as a result of retained earnings per share.

* The Bancorp repurchased 594,428 shares of its common stock at an average cost of $16.82 per share during the three months ended March 31, 2021.

Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "Our business plan for 2021 is in full implementation. The main focus continues to be product and platform expansion with a rigorous focus on building the best payments ecosystem in the financial services industry. Our plan includes a comprehensive and integrated analysis of the market and competitors, and the needed investments to build towards the future and create scalable core competencies that our partners can use to innovate and grow. We also continue to invest heavily in anti-money laundering and compliance to have best-in-class capabilities to meet regulatory guidance and expectations. We are currently on track to meet or exceed our financial targets for 2021. We continue to closely watch the impact of the full reopening of the US economy, Fed policy, government stimulus, interest rates and the virtualization of consumer spending to understand the likely impacts on TBBK. Currently, those impacts are mostly positive for our business model and should drive continued growth in business volumes and profitability into 2022. Lastly, our guidance target for 2021 continues to be $1.70 a share or approximately $100 million in net income. The earnings per share estimates do not include share repurchases that have been previously announced."

The Bancorp reported net income of $26.0 million, or $0.44 per diluted share, for the quarter ended March 31, 2021, compared to net income of $12.6 million, or $0.22 per diluted share, for the quarter ended March 31, 2020. 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 8.62%, 14.81%, 15.23% and 14.81%, respectively, compared to well-capitalized minimums of 5%, 8%, 10% and 6.5%, respectively.

Conference Call Webcast

You may access the LIVE webcast of The Bancorp's Quarterly Earnings Conference Call at 8:00 AM ET Friday, April 30, 2021 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 5792244. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, May 7, 2021 by dialing 855.859.2056, access code 5792244.

The Bancorp, Inc. (NASDAQ: TBBK) is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500. The company's only subsidiary, The Bancorp Bank (Member FDIC, Equal Housing Lender), has been repeatedly recognized in the payments industry as the Top Issuer of Prepaid Cards (US), a top merchant sponsor bank and a top ACH originator. Specialized lending distinctions include National Preferred SBA Lender, a leading provider of securities backed lines of credit, and one of the few bank-owned commercial vehicle leasing groups in the nation. For more information please visit www.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 "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. These risks and uncertainties include those relating to the on-going COVID-19 pandemic, the impact it will have on our business and the industry as a whole, and the resulting governmental and societal responses. 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 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 earnings release, except as may be required under applicable law.

The Bancorp, Inc.

Financial highlights



Three months ended Year ended

March 31, December,

Condensed income statement 2021 2020 2020 (unaudited) (unaudited)

(dollars in thousands, except per share data)



Net interest income $ 53,757 $ 42,911 $ 194,866

Provision for credit losses 822 3,579 6,352

Non-interest income

ACH, card and other payment 1,796 1,846 7,101processing fees

Prepaid, debit card and related fees 19,208 18,540 74,465

Net realized and unrealized gains (losses) on commercial

loans originated for sale 1,996 (5,156) (3,874)

Change in value of investment in - (45) (45)unconsolidated entity

Leasing related income 965 833 3,294

Other non-interest income 109 581 3,676

Total non-interest income 24,074 16,599 84,617

Non-interest expense

Salaries and employee benefits 25,658 22,741 101,737

Data processing expense 1,126 1,169 4,712

Legal expense 2,054 913 5,141

FDIC insurance 2,380 2,589 9,808

Software 3,684 3,477 14,028

Other non-interest expense 6,981 7,529 29,421

Total non-interest expense 41,883 38,418 164,847

Income from continuing operations 35,126 17,513 108,284before income taxes

Income tax expense 9,066 4,352 27,688

Net income from continuing 26,060 13,161 80,596operations

Discontinued operations

Loss from discontinued operations (124) (775) (3,816)before income taxes

Income tax benefit (29) (205) (3,304)

Net loss from discontinued (95) (570) (512)operations, net of tax

Net income $ 25,965 $ 12,591 $ 80,084



Net income per share from continuing $ 0.45 $ 0.23 $ 1.40operations - basic

Net loss per share from discontinued $ - $ (0.01) $ (0.01)operations - basic

Net income per share - basic $ 0.45 $ 0.22 $ 1.39



Net income per share from continuing $ 0.44 $ 0.23 $ 1.38operations - diluted

Net loss per share from discontinued $ - $ (0.01) $ (0.01)operations - diluted

Net income per share - diluted $ 0.44 $ 0.22 $ 1.37

Weighted average shares - basic 57,372,337 57,220,844 57,474,612

Weighted average shares - diluted 59,294,081 57,926,785 58,411,222

Balance sheet

March 31,

December 31,

September 30,

March 31,

2021 (unaudited)

2020

2020 (unaudited)

2020 (unaudited)

(dollars in thousands)

Assets:

Cash and cash equivalents

Cash and due from banks

$

7,838

$

5,984

$

6,220

$

13,610

Interest earning deposits at Federal Reserve Bank

1,738,749

339,531

294,758

105,978

Total cash and cash equivalents

1,746,587

345,515

300,978

119,588

Investment securities, available-for-sale, at fair value

1,128,459

1,206,164

1,264,903

1,353,278

Commercial loans, at fair value (held-for-sale at March 31, 2020)

1,780,762

1,810,812

1,849,947

1,716,450

Loans, net of deferred fees and costs

2,827,076

2,652,323

2,488,760

1,985,755

Allowance for credit losses

(16,419)

(16,082)

(15,727)

(14,883)

Loans, net

2,810,657

2,636,241

2,473,033

1,970,872

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

1,368

1,368

1,368

1,142

Premises and equipment, net

17,196

17,608

15,849

17,148

Accrued interest receivable

20,164

20,458

18,852

15,660

Intangible assets, net

2,746

2,845

2,563

2,857

Deferred tax asset, net

10,900

9,757

7,952

12,797

Investment in unconsolidated entity, at fair value

31,047

31,294

31,783

34,273

Assets held-for-sale from discontinued operations

106,925

113,650

122,253

134,118

Other assets

90,530

81,129

79,821

79,925

Total assets

$

7,747,341

$

6,276,841

$

6,169,302

$

5,458,108

Liabilities:

Deposits

Demand and interest checking

$

6,231,220

$

5,205,010

$

4,882,834

$

4,512,949

Savings and money market

690,281

257,050

505,928

178,174

Total deposits

6,921,501

5,462,060

5,388,762

4,691,123

Securities sold under agreements to repurchase

42

42

42

42

Short-term borrowings

-

-

-

140,000

Senior debt

98,406

98,314

98,222

-

Subordinated debenture

13,401

13,401

13,401

13,401

Other long-term borrowings

40,085

40,277

40,462

40,813

Other liabilities

77,142

81,583

69,954

74,625

Total liabilities

$

7,150,577

$

5,695,677

$

5,610,843

$

4,960,004

Shareholders' equity:

Common stock - authorized, 75,000,000 shares of $1.00 par value; 57,247,913 and 57,325,556 shares issued and outstanding at March 31, 2021 and 2020, respectively

57,248

57,551

57,491

57,326

Additional paid-in capital

370,481

377,452

375,985

372,218

Retained earnings

154,418

128,453

104,282

60,960

Accumulated other comprehensive income

14,617

17,708

20,701

7,600

Total shareholders' equity

596,764

581,164

558,459

498,104

Total liabilities and shareholders' equity

$

7,747,341

$

6,276,841

$

6,169,302

$

5,458,108





Balance sheet March 31, December September March 31, 31, 30,

2021 2020 2020 2020 (unaudited) (unaudited) (unaudited)

(dollars in thousands)

Assets:

Cash and cash equivalents

Cash and due from banks $ 7,838 $ 5,984 $ 6,220 $ 13,610

Interest earning deposits 1,738,749 339,531 294,758 105,978at Federal Reserve Bank

Total cash and cash 1,746,587 345,515 300,978 119,588equivalents



Investment securities,available-for-sale, at 1,128,459 1,206,164 1,264,903 1,353,278fair value

Commercial loans, at fairvalue (held-for-sale at 1,780,762 1,810,812 1,849,947 1,716,450March 31, 2020)

Loans, net of deferred 2,827,076 2,652,323 2,488,760 1,985,755fees and costs

Allowance for credit (16,419) (16,082) (15,727) (14,883)losses

Loans, net 2,810,657 2,636,241 2,473,033 1,970,872

Federal Home Loan Bankand Atlantic Central 1,368 1,368 1,368 1,142Bankers Bank stock

Premises and equipment, 17,196 17,608 15,849 17,148net

Accrued interest 20,164 20,458 18,852 15,660receivable

Intangible assets, net 2,746 2,845 2,563 2,857

Deferred tax asset, net 10,900 9,757 7,952 12,797

Investment inunconsolidated entity, at 31,047 31,294 31,783 34,273fair value

Assets held-for-sale from 106,925 113,650 122,253 134,118discontinued operations

Other assets 90,530 81,129 79,821 79,925

Total assets $ 7,747,341 $ 6,276,841 $ 6,169,302 $ 5,458,108



Liabilities:

Deposits

Demand and interest $ 6,231,220 $ 5,205,010 $ 4,882,834 $ 4,512,949checking

Savings and money market 690,281 257,050 505,928 178,174

Total deposits 6,921,501 5,462,060 5,388,762 4,691,123



Securities sold under 42 42 42 42agreements to repurchase

Short-term borrowings - - - 140,000

Senior debt 98,406 98,314 98,222 -

Subordinated debenture 13,401 13,401 13,401 13,401

Other long-term 40,085 40,277 40,462 40,813borrowings

Other liabilities 77,142 81,583 69,954 74,625

Total liabilities $ 7,150,577 $ 5,695,677 $ 5,610,843 $ 4,960,004



Shareholders' equity:

Common stock -authorized, 75,000,000shares of $1.00 parvalue; 57,247,913 and 57,248 57,551 57,491 57,32657,325,556 shares issuedand outstandingat March 31, 2021 and2020, respectively

Additional paid-in 370,481 377,452 375,985 372,218capital

Retained earnings 154,418 128,453 104,282 60,960

Accumulated other 14,617 17,708 20,701 7,600comprehensive income

Total shareholders' 596,764 581,164 558,459 498,104equity



Total liabilities and $ 7,747,341 $ 6,276,841 $ 6,169,302 $ 5,458,108shareholders' equity

Average balance sheet and net interest income

Three months ended March 31, 2021

Three months ended March 31, 2020

(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**

$

4,476,617

$

47,811

4.27%

$

3,262,378

$

39,159

4.80%

Leases-bank qualified*

6,982

118

6.76%

10,975

200

7.29%

Investment securities-taxable

1,193,009

8,808

2.95%

1,395,545

10,495

3.01%

Investment securities-nontaxable*

4,042

35

3.46%

5,174

39

3.02%

Interest earning deposits at Federal Reserve Bank

747,845

183

0.10%

493,876

1,623

1.31%

Net interest earning assets

6,428,495

56,955

3.54%

5,167,948

51,516

3.99%

Allowance for credit losses

(16,069)

(10,176)

Assets held-for-sale from discontinued operations

109,128

853

3.13%

137,286

1,275

3.71%

Other assets

214,171

226,881

$

6,735,725

$

5,521,939

Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking

$

5,501,697

$

1,617

0.12%

$

4,353,690

$

6,695

0.62%

Savings and money market

407,186

149

0.15%

173,575

50

0.12%

Time deposits

-

-

-

319,505

1,483

1.86%

Total deposits

5,908,883

1,766

0.12%

4,846,770

8,228

0.68%

Short-term borrowings

13,055

8

0.25%

56,813

165

1.16%

Repurchase agreements

41

-

-

72

-

-

Subordinated debentures

13,401

113

3.37%

13,401

162

4.84%

Senior debt

100,140

1,279

5.11%

-

-

-

Total deposits and liabilities

6,035,520

3,166

0.21%

4,917,056

8,555

0.70%

Other liabilities

111,241

113,582

Total liabilities

6,146,761

5,030,638

Shareholders' equity

588,964

491,301

$

6,735,725

$

5,521,939

Net interest income on tax equivalent basis*

$

54,642

$

44,236

Tax equivalent adjustment

32

50

Net interest income

$

54,610

$

44,186

Net interest margin *

3.34%

3.34%





Average balance sheet Three months ended March 31,and net interest Three months ended March 31, 2021 2020income

(dollars in thousands; unaudited)

Average Average Average Average

Assets: Balance Interest Rate Balance Interest Rate



Interest earning assets:

Loans, net of deferred $ 4,476,617 $ 47,811 4.27% $ 3,262,378 $ 39,159 4.80%fees and costs**

Leases-bank qualified* 6,982 118 6.76% 10,975 200 7.29%

Investment 1,193,009 8,808 2.95% 1,395,545 10,495 3.01%securities-taxable

Investment 4,042 35 3.46% 5,174 39 3.02%securities-nontaxable*

Interest earningdeposits at Federal 747,845 183 0.10% 493,876 1,623 1.31%Reserve Bank

Net interest earning 6,428,495 56,955 3.54% 5,167,948 51,516 3.99%assets



Allowance for credit (16,069) (10,176) losses

Assets held-for-salefrom discontinued 109,128 853 3.13% 137,286 1,275 3.71%operations

Other assets 214,171 226,881

$ 6,735,725 $ 5,521,939



Liabilities and Shareholders' Equity:

Deposits:

Demand and interest $ 5,501,697 $ 1,617 0.12% $ 4,353,690 $ 6,695 0.62%checking

Savings and money 407,186 149 0.15% 173,575 50 0.12%market

Time deposits - - - 319,505 1,483 1.86%

Total deposits 5,908,883 1,766 0.12% 4,846,770 8,228 0.68%



Short-term borrowings 13,055 8 0.25% 56,813 165 1.16%

Repurchase agreements 41 - - 72 - -

Subordinated 13,401 113 3.37% 13,401 162 4.84%debentures

Senior debt 100,140 1,279 5.11% - - -

Total deposits and 6,035,520 3,166 0.21% 4,917,056 8,555 0.70%liabilities



Other liabilities 111,241 113,582

Total liabilities 6,146,761 5,030,638



Shareholders' equity 588,964 491,301

$ 6,735,725 $ 5,521,939

Net interest income on $ 54,642 $ 44,236 tax equivalent basis*



Tax equivalent 32 50 adjustment



Net interest income $ 54,610 $ 44,186

Net interest margin * 3.34% 3.34%

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020.** Includes loans held-for-sale at March 31, 2020. All periods include commercial loans, at fair value and non-accrual loans.NOTE: In the table above, the 2021 interest on loans reflects $1.4 million of fees which are not expected to recur. The fees were earned on a short-term line of credit to another institution to initially fund PPP loans, which did not significantly increase average loans or assets. Interest on loans also includes $2.4 million of interest and fees on PPP loans, which represents the remaining recognition of fees on PPP loans made in 2020, and the initial recognition of fees on PPP loans made in 2021. Approximately $3.4 million of fees on the 2021 PPP loans is being recognized throughout full year 2021. Increases in interest earning deposits at the Federal Reserve Bank reflect increased deposits resulting from stimulus payments distributed to a large segment of the population, resulting from December 2020 federal legislation.* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for2021 and 2020.** Includes loans held-for-sale at March 31, 2020. All periods includecommercial loans, at fair value and non-accrual loans.NOTE: In the table above, the 2021 interest on loans reflects $1.4 million offees which are not expected to recur. The fees were earned on a short-term lineof credit to another institution to initially fund PPP loans, which did notsignificantly increase average loans or assets. Interest on loans also includes$2.4 million of interest and fees on PPP loans, which represents the remainingrecognition of fees on PPP loans made in 2020, and the initial recognition offees on PPP loans made in 2021. Approximately $3.4 million of fees on the 2021PPP loans is being recognized throughout full year 2021. Increases in interestearning deposits at the Federal Reserve Bank reflect increased depositsresulting from stimulus payments distributed to a large segment of thepopulation, resulting from December 2020 federal legislation.Allowance for credit losses

Three months ended

Year ended

March 31,

March 31,

December 31,

2021 (unaudited)

2020 (unaudited)

2020

(dollars in thousands)

Balance in the allowance for credit losses at beginning of period (1)

$

16,082

$

12,875

$

12,875

Loans charged-off:

SBA non-real estate

144

265

1,350

Direct lease financing

97

1,193

2,243

SBLOC

15

-

-

Total

256

1,458

3,593

Recoveries:

SBA non-real estate

4

19

103

Direct lease financing

2

84

570

Total

6

103

673

Net charge-offs

250

1,355

2,920

Provision credited to allowance, excluding commitment provision

587

3,363

6,127

Balance in allowance for credit losses at end of period

$

16,419

$

14,883

$

16,082

Net charge-offs/average loans

0.01%

0.04%

0.07%

Net charge-offs/average assets

-

0.02%

0.05%



Allowance for credit losses Three months ended Year ended

March 31, March 31, December 31,

2021 2020 2020 (unaudited) (unaudited)

(dollars in thousands)



Balance in the allowance for credit losses $ 16,082 $ 12,875 $ 12,875at beginning of period (1)



Loans charged-off:

SBA non-real estate 144 265 1,350

Direct lease financing 97 1,193 2,243

SBLOC 15 - -

Total 256 1,458 3,593



Recoveries:

SBA non-real estate 4 19 103

Direct lease financing 2 84 570

Total 6 103 673

Net charge-offs 250 1,355 2,920

Provision credited to allowance, excluding 587 3,363 6,127commitment provision



Balance in allowance for credit losses at $ 16,419 $ 14,883 $ 16,082end of period

Net charge-offs/average loans 0.01% 0.04% 0.07%

Net charge-offs/average assets - 0.02% 0.05%

(1)

Excludes activity from assets held-for-sale from discontinued operations.(1) Excludes activity from assets held-for-sale from discontinued operations.

Loan portfolio

March 31,

December 31,

September 30,

March 31,

2021

2020

2020

2020

(in thousands)

SBL non-real estate

$

305,446

$

255,318

$

293,488

$

84,946

SBL commercial mortgage

320,013

300,817

270,264

233,220

SBL construction

20,692

20,273

27,169

48,823

Small business loans *

646,151

576,408

590,921

366,989

Direct lease financing

484,316

462,182

430,675

445,967

SBLOC / IBLOC**

1,622,359

1,550,086

1,428,253

1,156,433

Advisor financing ***

58,919

48,282

26,600

-

Other specialty lending

2,251

2,179

2,194

2,711

Other consumer loans ****

4,201

4,247

3,809

4,023

2,818,197

2,643,384

2,482,452

1,976,123

Unamortized loan fees and costs

8,879

8,939

6,308

9,632

Total loans, net of unamortized fees and costs

$

2,827,076

$

2,652,323

$

2,488,760

$

1,985,755



Loan portfolio March 31, December September March 31, 31, 30,

2021 2020 2020 2020

(in thousands)



SBL non-real estate $ 305,446 $ 255,318 $ 293,488 $ 84,946

SBL commercial mortgage 320,013 300,817 270,264 233,220

SBL construction 20,692 20,273 27,169 48,823

Small business loans * 646,151 576,408 590,921 366,989

Direct lease financing 484,316 462,182 430,675 445,967

SBLOC / IBLOC** 1,622,359 1,550,086 1,428,253 1,156,433

Advisor financing *** 58,919 48,282 26,600 -

Other specialty lending 2,251 2,179 2,194 2,711

Other consumer loans **** 4,201 4,247 3,809 4,023

2,818,197 2,643,384 2,482,452 1,976,123

Unamortized loan fees and 8,879 8,939 6,308 9,632costs

Total loans, net ofunamortized fees and $ 2,827,076 $ 2,652,323 $ 2,488,760 $ 1,985,755costs

Small business portfolio

March 31,

December 31,

September 30,

March 31,

2021

2020

2020

2020

(in thousands)

SBL, including unamortized fees and costs

$

647,445

$

577,944

$

590,314

$

371,072

SBL, included in commercial loans, at fair value

234,908

243,562

250,958

223,987

Total small business loans

$

882,353

$

821,506

$

841,272

$

595,059





Small business portfolio March December September March 31, 31, 30, 31,

2021 2020 2020 2020

(in thousands)



SBL, including unamortized fees $ 647,445 $ 577,944 $ 590,314 $ 371,072and costs

SBL, included in commercial 234,908 243,562 250,958 223,987loans, at fair value

Total small business loans $ 882,353 $ 821,506 $ 841,272 $ 595,059

* The preceding table shows small business loans and small business loans held at fair value. The small business loans held at fair value are comprised of the government guaranteed portion of SBA 7a loans at the dates indicated. An increase in SBL non-real estate loans from $255.3 million to $305.4 million in the first quarter of 2021 reflected an increase of $24.5 million of PPP loans authorized by The Consolidated Appropriations Act, 2021. PPP loans totaled $190.3 million at March 31, 2021 and $165.7 million at December 31, 2020. In addition, the Bank provided a short-term line of credit to another institution at March 31, 2021 in the amount of $14.6 million to initially fund PPP loans, which is included in the SBL non-real estate category.** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies.*** In 2020, we began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan to value 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.**** Included in the table above under Other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $932,000 and $663,000 at March 31, 2021 and December 31, 2020, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.* The preceding table shows small business loans and small business loans heldat fair value. The small business loans held at fair value are comprised of thegovernment guaranteed portion of SBA 7a loans at the dates indicated. Anincrease in SBL non-real estate loans from $255.3 million to $305.4 million inthe first quarter of 2021 reflected an increase of $24.5 million of PPP loansauthorized by The Consolidated Appropriations Act, 2021. PPP loans totaled$190.3 million at March 31, 2021 and $165.7 million at December 31, 2020. Inaddition, the Bank provided a short-term line of credit to another institutionat March 31, 2021 in the amount of $14.6 million to initially fund PPP loans,which is included in the SBL non-real estate category.** Securities Backed Lines of Credit (SBLOC) are collateralized by marketablesecurities, while Insurance Backed Lines of Credit (IBLOC) are collateralizedby the cash surrender value of insurance policies.*** In 2020, we began originating loans to investment advisors for purposes ofdebt refinance, acquisition of another firm or internal succession. Maximumloan amounts are subject to loan to value ratios of 70%, based on third partybusiness appraisals, but may be increased depending upon the debt servicecoverage ratio. Personal guarantees and blanket business liens are obtained asappropriate.**** Included in the table above under Other consumer loans are demand depositoverdrafts reclassified as loan balances totaling $932,000 and $663,000 atMarch 31, 2021 and December 31, 2020, respectively. Estimated overdraftcharge-offs and recoveries are reflected in the allowance for credit losses andhave been immaterial.Small business loans as of March 31, 2021

Loan principal

(in millions)

U.S. government guaranteed portion of SBA loans (a)

$

349

Paycheck Protection Program loans (a)

190

Commercial mortgage SBA (b)

180

Construction SBA (c)

14

Unguaranteed portion of U.S. government guaranteed loans (d)

105

Non-SBA small business loans (e)

34

Total principal

$

872

Unamortized fees and costs

10

Total small business loans

$

882

Small business loans as of March 31, 2021



Loan principal

(in millions)

U.S. government guaranteed portion of SBA loans (a) $ 349

Paycheck Protection Program loans (a) 190

Commercial mortgage SBA (b) 180

Construction SBA (c) 14

Unguaranteed portion of U.S. government guaranteed loans (d) 105

Non-SBA small business loans (e) 34

Total principal $ 872

Unamortized fees and costs 10

Total small business loans $ 882

(a) This is the portion of SBA 7a loans (7a) and PPP loans which have been guaranteed by the U.S. government, and therefore are assumed to have no credit risk.(b) Substantially all these loans are made under the SBA 504 Fixed Asset Financing program (504) which dictates origination date loan to value percentages (LTV), generally 50-60%, to which the Bank adheres.(c) Of the $14 million in Construction SBA loans, $11 million are 504 first mortgages with an origination date LTV of 50-60% and $3 million are SBA interim loans with an approved SBA post-construction full takeout/payoff.(d) The $105 million represents the unguaranteed portion of 7a loans which are 70% or more guaranteed by the U.S. government. 7a 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 7a and 504 loans require the personal guaranty of all 20% or greater owners.(e) The $34 million of non-SBA loans is comprised of a $15 million short-term line of credit to initially fund PPP loans with the remaining $19 million mainly comprised of approximately 20 conventional coffee/doughnut/carryout franchisee note purchases. The majority of purchased notes were made to multi-unit operators, are considered seasoned and have performed as agreed. A $2 million guaranty by the seller, for an 11% first loss piece, is in place until August 2021.Additionally, the CARES Act of 2020 ("the CARES Act") provided for six months of principal and interest payments on 7a loans which generally ended in fourth quarter 2020 or in first quarter 2021. The Consolidated Appropriations Act, 2021, became law in December 2020 and provides for at least an additional two months of such payments on SBA 7a loans, with up to five months of payments on hotel, restaurant and other more highly impacted loans. Unlike the six months of CARES Act payments, these additional payments are capped at $9,000 per month.(a) This is the portion of SBA 7a loans (7a) and PPP loans which have beenguaranteed by the U.S. government, and therefore are assumed to have no creditrisk.(b) Substantially all these loans are made under the SBA 504 Fixed AssetFinancing program (504) which dictates origination date loan to valuepercentages (LTV), generally 50-60%, to which the Bank adheres.(c) Of the $14 million in Construction SBA loans, $11 million are 504 firstmortgages with an origination date LTV of 50-60% and $3 million are SBA interimloans with an approved SBA post-construction full takeout/payoff.(d) The $105 million represents the unguaranteed portion of 7a loans which are70% or more guaranteed by the U.S. government. 7a loans are not made on thebasis of real estate LTV; however, they are subject to SBA's "All AvailableCollateral" rule which mandates that to the extent a borrower or its 20% orgreater principals have available collateral (including personal residences),the collateral must be pledged to fully collateralize the loan, after applyingSBA-determined liquidation rates. In addition, all 7a and 504 loans require thepersonal guaranty of all 20% or greater owners.(e) The $34 million of non-SBA loans is comprised of a $15 million short-termline of credit to initially fund PPP loans with the remaining $19 millionmainly comprised of approximately 20 conventional coffee/doughnut/carryoutfranchisee note purchases. The majority of purchased notes were made tomulti-unit operators, are considered seasoned and have performed as agreed. A$2 million guaranty by the seller, for an 11% first loss piece, is in placeuntil August 2021. Additionally, the CARES Act of 2020 ("the CARES Act") provided for six monthsof principal and interest payments on 7a loans which generally ended in fourthquarter 2020 or in first quarter 2021. The Consolidated Appropriations Act,2021, became law in December 2020 and provides for at least an additional twomonths of such payments on SBA 7a loans, with up to five months of payments onhotel, restaurant and other more highly impacted loans. Unlike the six monthsof CARES Act payments, these additional payments are capped at $9,000 permonth.Small business loans by type as of March 31, 2021

(Excludes government guaranteed portion of SBA 7a loans, PPP loans, and a line of credit to initially fund PPP loans)

SBL commercial mortgage*

SBL construction*

SBL non-real estate

Total

% Total

(in millions)

Hotels

$

66

$

3

$

-

$

69

22%

Full-service restaurants

15

1

3

19

5%

Baked goods stores

4

-

12

16

5%

Child day care services

15

-

1

16

5%

Car washes

10

1

-

11

5%

Offices of lawyers

10

-

-

10

3%

Assisted living facilities for the elderly

1

8

-

9

3%

Limited-service restaurants

4

1

4

9

3%

Funeral homes and funeral services

8

-

-

8

2%

Fitness and recreational sports centers

5

1

2

8

2%

Lessors of nonresidential buildings (except miniwarehouses)

8

-

-

8

2%

General warehousing and storage

7

-

1

8

2%

All other amusement and recreation industries

5

-

-

5

1%

Outpatient mental health and substance abuse centers

5

-

-

5

1%

Gasoline stations with convenience stores

4

-

-

4

1%

Offices of dentists

3

-

-

3

1%

Other warehousing and storage

3

-

-

3

1%

New car dealers

3

-

-

3

1%

Offices of physicians (except mental health specialists)

3

-

-

3

1%

All other miscellaneous general purpose machinery manufacturing

3

-

-

3

1%

Automotive body, paint, and interior repair and maintenance

2

-

1

3

1%

All other specialty trade contractors

1

-

1

2

1%

Pet care (except veterinary) services

2

-

-

2

1%

Sewing, needlework, and piece goods stores

2

-

-

2

1%

Caterers

2

-

-

2

1%

Amusement arcades

2

-

1

3

1%

Plumbing, heating, and air- conditioning contractors

2

-

-

2

1%

Offices of real estate agents and brokers

2

-

-

2

1%

Landscaping services

-

-

2

2

1%

Independent artists, writers, and performers

2

-

-

2

1%

Drinking places (alcoholic beverages)

1

-

1

2

1%

All other miscellaneous food manufacturing

1

-

1

2

1%

Sports and recreation instruction

-

-

2

2

1%

Other**

45

1

24

70

20%

Total

$

246

$

16

$

56

$

318

100%

Small business loans by type as of March 31, 2021

(Excludes government guaranteed portion of SBA 7a loans, PPP loans, and a lineof credit to initially fund PPP loans)



SBL SBL SBL % commercial construction* non-real Total Total mortgage* estate

(in millions)

Hotels $ 66 $ 3 $ - $ 69 22%

Full-service 15 1 3 19 5%restaurants

Baked goods stores 4 - 12 16 5%

Child day care 15 - 1 16 5%services

Car washes 10 1 - 11 5%

Offices of lawyers 10 - - 10 3%

Assisted livingfacilities for the 1 8 - 9 3%elderly

Limited-service 4 1 4 9 3%restaurants

Funeral homes and 8 - - 8 2%funeral services

Fitness andrecreational sports 5 1 2 8 2%centers

Lessors ofnonresidentialbuildings 8 - - 8 2%(exceptminiwarehouses)

General warehousing 7 - 1 8 2%and storage

All other amusementand recreation 5 - - 5 1%industries

Outpatient mentalhealth and 5 - - 5 1%substance abusecenters

Gasoline stationswith convenience 4 - - 4 1%stores

Offices of dentists 3 - - 3 1%

Other warehousing and 3 - - 3 1%storage

New car dealers 3 - - 3 1%

Offices of physicians(except 3 - - 3 1%mental healthspecialists)

All othermiscellaneous general 3 - - 3 1%purpose machinerymanufacturing

Automotive body,paint, and 2 - 1 3 1%interior repair andmaintenance

All other specialty 1 - 1 2 1%trade contractors

Pet care (except 2 - - 2 1%veterinary) services

Sewing, needlework, and piece 2 - 2 1%goods stores -

Caterers 2 - - 2 1%

Amusement arcades 2 - 1 3 1%

Plumbing, heating,and air- 2 - - 2 1%conditioningcontractors

Offices of realestate agents and 2 - - 2 1%brokers

Landscaping services - - 2 2 1%

Independent artists,writers, and 2 - - 2 1%performers

Drinking places 1 - 1 2 1%(alcoholic beverages)

All othermiscellaneous food 1 - 1 2 1%manufacturing

Sports and recreation - - 2 2 1%instruction

Other** 45 1 24 70 20%

Total $ 246 $ 16 $ 56 $ 318 100%

* Of the SBL commercial mortgage and SBL construction loans, $63.5 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.**Loan types less than $1.5 million are spread over a hundred different classifications such as Commercial Printing, Pet and Pet Supplies Stores, Securities Brokerage, etc.* Of the SBL commercial mortgage and SBL construction loans, $63.5 millionrepresents the total of the non-guaranteed portion of SBA 7a loans and non-SBAloans. The balance of those categories represents SBA 504 loans with 50%-60%origination date loan-to-values.**Loan types less than $1.5 million are spread over a hundred differentclassifications such as Commercial Printing, Pet and Pet Supplies Stores,Securities Brokerage, etc.State diversification as of March 31, 2021

(Excludes government guaranteed portion of SBA 7a loans, PPP loans, and a line of credit to initially fund PPP loans)

SBL commercial mortgage*

SBL construction*

SBL non-real estate

Total

% Total

(in millions)

Florida

$

45

$

8

$

8

$

61

19%

California

40

1

5

46

14%

Pennsylvania

30

-

4

34

11%

Illinois

23

-

3

26

8%

North Carolina

22

1

3

26

8%

New York

15

3

5

23

7%

Texas

12

-

5

17

5%

Tennessee

11

-

1

12

4%

New Jersey

4

-

7

11

3%

Virginia

9

-

2

11

3%

Georgia

7

-

2

9

3%

Colorado

3

2

1

6

2%

Michigan

3

-

1

4

1%

Washington

3

-

-

3

1%

Ohio

3

-

-

3

1%

Other States

16

1

9

26

10%

Total

$

246

$

16

$

56

$

318

100%

State diversification as of March 31, 2021

(Excludes government guaranteed portion of SBA 7a loans, PPP loans, and a lineof credit to initially fund PPP loans)



SBL SBL SBL non-real commercial construction* estate Total % Total mortgage*

(in millions)

Florida $ 45 $ 8 $ 8 $ 61 19%

California 40 1 5 46 14%

Pennsylvania 30 - 4 34 11%

Illinois 23 - 3 26 8%

North Carolina 22 1 3 26 8%

New York 15 3 5 23 7%

Texas 12 - 5 17 5%

Tennessee 11 - 1 12 4%

New Jersey 4 - 7 11 3%

Virginia 9 - 2 11 3%

Georgia 7 - 2 9 3%

Colorado 3 2 1 6 2%

Michigan 3 - 1 4 1%

Washington 3 - - 3 1%

Ohio 3 - - 3 1%

Other States 16 1 9 26 10%

Total $ 246 $ 16 $ 56 $ 318 100%



* Of the SBL commercial mortgage and SBL construction loans, $63.5 million represents the total of the non-guaranteed portion of SBA 7a loans and non-SBA loans. The balance of those categories represents SBA 504 loans with 50%-60% origination date loan-to-values.* Of the SBL commercial mortgage and SBL construction loans, $63.5 millionrepresents the total of the non-guaranteed portion of SBA 7a loans and non-SBAloans. The balance of those categories represents SBA 504 loans with 50%-60%origination date loan-to-values.Top 10 loans as of March 31, 2021

Type*

State

SBL commercial mortgage*

SBL construction*

Total

(in millions)

Lawyers office

CA

$

9

$

-

$

9

Hotel

FL

9

-

9

General warehouse and storage

PA

7

-

7

Hotel

NC

6

-

6

Assisted living facility

FL

-

5

5

Outpatient mental health and substance abuse center

FL

5

-

5

Hotel

NC

5

-

5

Fitness and recreation sports center

PA

4

-

4

Hotel

PA

4

-

4

Hotel

TN

4

-

4

Total

$

53

$

5

$

58

Top 10 loans as of March 31, 2021



SBL SBLType* State commercial construction* Total mortgage*

(in millions)

Lawyers office CA $ 9 $ - $ 9

Hotel FL 9 - 9

General warehouse and storage PA 7 - 7

Hotel NC 6 - 6

Assisted living facility FL - 5 5

Outpatient mental health and FL 5 - 5substance abuse center

Hotel NC 5 - 5

Fitness and recreation sports PA 4 - 4center

Hotel PA 4 - 4

Hotel TN 4 - 4

Total $ 53 $ 5 $ 58



* All the top 10 loans are 504 SBA loans with 50%-60% origination date loan-to-values. The top 10 loan table above does not include loans to the extent that they are U.S. government guaranteed.* All the top 10 loans are 504 SBA loans with 50%-60% origination dateloan-to-values. The top 10 loan table above does not include loans to theextent that they are U.S. government guaranteed.Commercial real estate loans, at fair value, excluding SBA loans, are as follows including LTV at origination:

Type as of March 31, 2021

Type

# Loans

Balance

Weighted average origination date LTV

Weighted average minimum interest rate

(dollars in millions)

Multifamily (apartments)

155

$

1,405

76%

4.77%

Hospitality (hotels and lodging)

11

71

65%

5.75%

Retail

7

48

71%

4.55%

Other

7

27

70%

5.23%

180

$

1,551

76%

4.82%

Fair value adjustment

(5)

Total

$

1,546

Commercial real estate loans, at fair value, excluding SBA loans, are asfollows including LTV at origination:

Type as of March 31, 2021



Weighted Weighted # average averageType Loans Balance origination minimum date interest LTV rate

(dollars in millions)

Multifamily (apartments) 155 $ 1,405 76% 4.77%

Hospitality (hotels and 11 71 65% 5.75%lodging)

Retail 7 48 71% 4.55%

Other 7 27 70% 5.23%

180 $ 1,551 76% 4.82%

Fair value adjustment (5)

Total $ 1,546

State diversification as of March 31, 2021

15 largest loans (all multifamily) as of March 31, 2021

State

Balance

Origination date LTV

State

Balance

Origination date LTV

(in millions)

(in millions)

Texas

$

432

77%

North Carolina

$

44

78%

Georgia

211

77%

Texas

38

79%

North Carolina

114

77%

Texas

36

80%

Arizona

112

76%

Pennsylvania

34

77%

Alabama

57

76%

Texas

30

75%

Ohio

56

69%

Nevada

29

80%

Other states each <$50 million

569

73%

Texas

27

77%

Total

$

1,551

76%

Arizona

27

79%

Mississippi

26

79%

North Carolina

25

77%

Texas

25

77%

Texas

24

77%

Georgia

23

79%

Alabama

23

77%

Georgia

20

79%

15 Largest loans

$

431

78%



State diversification as of March 15 largest loans (all multifamily) as of31, 2021 March 31, 2021



State Balance Origination State Balance Origination date LTV date LTV

(in millions) (in millions)

Texas $ 432 77% North $ 44 78% Carolina

Georgia 211 77% Texas 38 79%

North 114 77% Texas 36 80%Carolina

Arizona 112 76% Pennsylvania 34 77%

Alabama 57 76% Texas 30 75%

Ohio 56 69% Nevada 29 80%

Otherstateseach 569 73% Texas 27 77%<$50million

Total $ 1,551 76% Arizona 27 79%

Mississippi 26 79%

North 25 77% Carolina

Texas 25 77%

Texas 24 77%

Georgia 23 79%

Alabama 23 77%

Georgia 20 79%

15 Largest $ 431 78% loans

Institutional banking loans outstanding at March 31, 2021

Type

Principal

% of total

(in millions)

Securities backed lines of credit (SBLOC)

$

1,117

66%

Insurance backed lines of credit (IBLOC)

505

30%

Advisor financing

59

4%

Total

$

1,681

100%

Institutional banking loans outstanding at March 31, 2021



Type Principal % of total

(in millions)

Securities backed lines of credit (SBLOC) $ 1,117 66%

Insurance backed lines of credit (IBLOC) 505 30%

Advisor financing 59 4%

Total $ 1,681 100%

For SBLOC, we generally lend up to 50% of the value of equities and 80% for investment grade securities. While equities have fallen in excess of 30% in recent periods, 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. Secondly, 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.For SBLOC, we generally lend up to 50% of the value of equities and 80% forinvestment grade securities. While equities have fallen in excess of 30% inrecent periods, the reduction in collateral value of brokerage accountscollateralizing SBLOCs generally has been less, for two reasons. First, manycollateral accounts are "balanced" and accordingly have a component of debtsecurities, which have either not decreased in value as much as equities, or insome cases may have increased in value. Secondly, many of these accounts havethe benefit of professional investment advisors who provided some protectionagainst market downturns, through diversification and other means.Additionally, borrowers often utilize only a portion of collateral value, whichlowers the percentage of principal to collateral.Top 10 SBLOC loans at March 31, 2021

Principal amount

% Principal to collateral

(in millions)

$

60

43%

17

38%

14

27%

12

29%

10

40%

10

20%

10

32%

8

72%

8

23%

8

34%

Total and weighted average

$

157

35%

Top 10 SBLOC loans at March 31, 2021



Principal amount % Principal to collateral

(in millions)

$ 60 43%

17 38%

14 27%

12 29%

10 40%

10 20%

10 32%

8 72%

8 23%

8 34%

Total and weighted average $ 157 35%

Insurance backed lines of credit (IBLOC)IBLOC loans are backed by the cash value of life insurance policies which have been assigned to us. We lend up to 100% of such cash value. Our underwriting standards require approval of the insurance companies which carry the policies backing these loans. Currently, seven insurance companies have been approved and, as of April 17, 2021, all were rated Superior (A+ or better) by AM BEST.Insurance backed lines of credit (IBLOC)IBLOC loans are backed by the cash value of life insurance policies which havebeen assigned to us. We lend up to 100% of such cash value. Our underwritingstandards require approval of the insurance companies which carry the policiesbacking these loans. Currently, seven insurance companies have been approvedand, as of April 17, 2021, all were rated Superior (A+ or better) by AM BEST.Direct lease financing* by type as of March 31, 2021

Principal balance

% Total

(in millions)

Government agencies and public institutions**

$

79

16%

Construction

75

16%

Waste management and remediation services

63

13%

Real estate, rental and leasing

56

12%

Retail trade

46

9%

Transportation and warehousing

29

6%

Health care and social assistance

26

5%

Professional, scientific, and technical services

18

4%

Wholesale trade

15

3%

Manufacturing

11

2%

Educational services

8

2%

Arts, entertainment, and recreation

6

1%

Other

52

11%

Total

$

484

100%

Direct lease financing* by type as of March 31, 2021



Principal balance % Total

(in millions)

Government agencies and public institutions** $ 79 16%

Construction 75 16%

Waste management and remediation services 63 13%

Real estate, rental and leasing 56 12%

Retail trade 46 9%

Transportation and warehousing 29 6%

Health care and social assistance 26 5%

Professional, scientific, and technical services 18 4%

Wholesale trade 15 3%

Manufacturing 11 2%

Educational services 8 2%

Arts, entertainment, and recreation 6 1%

Other 52 11%

Total $ 484 100%

* Of the total $484 million of direct lease financing, $447 million consisted of vehicle leases with the remaining balance consisting of equipment leases.** Includes public universities and school districts.* Of the total $484 million of direct lease financing, $447 million consistedof vehicle leases with the remaining balance consisting of equipment leases.** Includes public universities and school districts.Direct lease financing by state as of March 31, 2021

State

Principal balance

% Total

(in millions)

Florida

$

83

17%

California

44

9%

New Jersey

34

7%

New York

31

6%

Pennsylvania

25

5%

Utah

25

5%

North Carolina

24

5%

Maryland

23

5%

Washington

15

3%

Connecticut

15

3%

Texas

13

3%

Missouri

12

2%

Georgia

10

2%

Alabama

9

2%

Idaho

9

2%

Other states

112

24%

Total

$

484

100%

Direct lease financing by state as of March 31, 2021



State Principal balance % Total

(in millions)

Florida $ 83 17%

California 44 9%

New Jersey 34 7%

New York 31 6%

Pennsylvania 25 5%

Utah 25 5%

North Carolina 24 5%

Maryland 23 5%

Washington 15 3%

Connecticut 15 3%

Texas 13 3%

Missouri 12 2%

Georgia 10 2%

Alabama 9 2%

Idaho 9 2%

Other states 112 24%

Total $ 484 100%

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 March 31, 2021

The Bancorp, Inc.

8.62%

14.81%

15.23%

14.81%

The Bancorp Bank

8.69%

14.95%

15.37%

14.95%

"Well capitalized" institution (under FDIC regulations-Basel III)

5.00%

8.00%

10.00%

6.50%

As of December 31, 2020

The Bancorp, Inc.

9.20%

14.43%

14.84%

14.43%

The Bancorp Bank

9.11%

14.27%

14.68%

14.27%

"Well capitalized" institution (under FDIC regulations-Basel III)

5.00%

8.00%

10.00%

6.50%





Capital ratios Tier 1 Tier 1 Total capital Common capital capital equity

to to to tier 1 average risk-weighted risk-weighted to risk

assets assets ratio assets ratio weighted ratio assets

As of March 31, 2021

The Bancorp, Inc. 8.62% 14.81% 15.23% 14.81%

The Bancorp Bank 8.69% 14.95% 15.37% 14.95%

"Well capitalized"institution (under FDIC 5.00% 8.00% 10.00% 6.50%regulations-Basel III)



As of December 31, 2020

The Bancorp, Inc. 9.20% 14.43% 14.84% 14.43%

The Bancorp Bank 9.11% 14.27% 14.68% 14.27%

"Well capitalized"institution (under FDIC 5.00% 8.00% 10.00% 6.50%regulations-Basel III)

Three months ended

Year ended

March 31,

December

2021

2020

2020

Selected operating ratios

Return on average assets (1)

1.56%

0.91%

1.34%

Return on average equity (1)

17.88%

10.28%

15.08%

Net interest margin

3.34%

3.34%

3.45%



Three months ended Year ended

March 31, December

2021 2020 2020

Selected operating ratios

Return on average assets ^(1) 1.56% 0.91% 1.34%

Return on average equity ^(1) 17.88% 10.28% 15.08%

Net interest margin 3.34% 3.34% 3.45%

(1)

Annualized^(1) Annualized

Book value per share table

March 31,

December 31,

September 30,

March 31,

2021

2020

2020

2020

Book value per share

$

10.42

$

10.10

$

9.71

$

8.69

Book value per share March 31, December 31, September 30, Marchtable 31,

2021 2020 2020 2020

Book value per share $ 10.42 $ 10.10 $ 9.71 $ 8.69

Loan quality table

March 31,

December 31,

September 30,

March 31,

2021

2020

2020

2020

(dollars in thousands)

Nonperforming loans to total loans

0.49%

0.48%

0.49%

0.40%

Nonperforming assets to total assets

0.18%

0.20%

0.20%

0.14%

Allowance for credit losses

0.58%

0.61%

0.63%

0.75%

Nonaccrual loans

$

11,961

$

12,227

$

12,275

$

5,645

Loans 90 days past due still accruing interest

1,762

497

24

2,245

Other real estate owned

-

-

-

-

Total nonperforming assets

$

13,723

$

12,724

$

12,299

$

7,890





Loan quality table March December September March 31, 31, 30, 31,

2021 2020 2020 2020

(dollars in thousands)

Nonperforming loans to total 0.49% 0.48% 0.49% 0.40%loans^

Nonperforming assets to total 0.18% 0.20% 0.20% 0.14%assets

Allowance for credit losses 0.58% 0.61% 0.63% 0.75%



Nonaccrual loans $ 11,961 $ 12,227 $ 12,275 $ 5,645

Loans 90 days past due still 1,762 497 24 2,245accruing interest

Other real estate owned - - - -

Total nonperforming assets $ 13,723 $ 12,724 $ 12,299 $ 7,890

Gross dollar volume (GDV)(1)

Three months ended

March 31,

December 31,

September 30,

March 31,

2021

2020

2020

2020

(in thousands)

Prepaid and debit card GDV

$

28,094,930

$

22,523,855

$

23,964,508

$

22,752,931





Gross dollar volume Three months ended(GDV) ^(1)

March 31, December 31, September March 31, 30,

2021 2020 2020 2020

(in thousands)



Prepaid and debit card $ 28,094,930 $ 22,523,855 $ 23,964,508 $ 22,752,931GDV

(1)

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

Business line quarterly summary

Quarter ended March 31, 2021

(dollars in millions)

Balances

% Growth

Major business lines

Average approximate rates *

Balances **

Year over year

Linked quarter annualized

Loans

Institutional banking ***

2.5%

$ 1,681

45%

21%

Small Business Lending****

5.0%

882

16%

22%

Leasing

6.4%

484

9%

19%

Commercial real estate (non-SBA at fair value)

4.8%

1,546

nm

nm

Weighted average yield

4.2%

$ 4,593

Non-interest income

% Growth

Deposits

Current quarter

Year over year

Payment solutions (prepaid and debit card issuance)

0.1%

$ 4,281

36%

nm

$ 19.2

4%

Card payment and ACH processing

0.2%

$ 1,048

32%

nm

$ 1.8

nm

Business linequarterly summary

Quarter ended March31, 2021

(dollars inmillions)

Balances

% Growth

Average Balances Year LinkedMajor business lines approximate ** over quarter rates * year annualized

Loans

Institutional 2.5% $ 1,681 45% 21%banking ***

Small Business 5.0% 882 16% 22%Lending****

Leasing 6.4% 484 9% 19%

Commercial realestate (non-SBA at 4.8% 1,546 nm nmfair value)

Weighted average 4.2% $ 4,593 Non-interestyield income

% Growth

Current YearDeposits quarter over year

Payment solutions(prepaid and debit 0.1% $ 4,281 36% nm $ 19.2 4%card issuance)

Card payment and ACH 0.2% $ 1,048 32% nm $ 1.8 nmprocessing

* Average rates are for the quarter ended March 31, 2021.** Loan and deposit categories are respectively based on period-end and average quarterly balances.*** Institutional Banking loans are comprised of Securities Backed Lines of Credit (SBLOC), collateralized by marketable securities, Insurance Backed Lines of Credit (IBLOC), collateralized by the cash surrender value of insurance policies, and Advisor financing.**** Small Business Lending is substantially comprised of SBA loans. Loan growth percentages exclude short-term PPP loans.* Average rates are for the quarter ended March 31, 2021.** Loan and deposit categories are respectively based on period-end and averagequarterly balances.*** Institutional Banking loans are comprised of Securities Backed Lines ofCredit (SBLOC), collateralized by marketable securities, Insurance Backed Linesof Credit (IBLOC), collateralized by the cash surrender value of insurancepolicies, and Advisor financing.**** Small Business Lending is substantially comprised of SBA loans. Loangrowth percentages exclude short-term PPP loans.Analysis of Walnut Street* marks

Loan activity

Marks

(dollars in millions)

Original Walnut Street loan balance, December 31, 2014

$

267

Marks through December 31, 2014 sale date

(58)

$

(58)

Sales price of Walnut Street

209

Equity investment from independent investor

(16)

December 31, 2014 Bancorp book value

193

Additional marks 2015 - 2020

(46)

(46)

2021 Marks

-

Payments received

(116)

March 31, 2021 Bancorp book value**

$

31

Total marks

$

(104)

Divided by:

Original Walnut Street loan balance

$

267

Percentage of total mark to original balance

39%

Analysis of Walnut Street* marks



Loan activity Marks

(dollars in millions)

Original Walnut Street loan balance, December 31, 2014 $ 267

Marks through December 31, 2014 sale date (58) $ (58)

Sales price of Walnut Street 209

Equity investment from independent investor (16)

December 31, 2014 Bancorp book value 193

Additional marks 2015 - 2020 (46) (46)

2021 Marks -

Payments received (116)

March 31, 2021 Bancorp book value** $ 31



Total marks $ (104)

Divided by:

Original Walnut Street loan balance $ 267

Percentage of total mark to original balance 39%

* Walnut Street is the investment in unconsolidated entity on the balance sheet which reflects the investment in a securitization of certain loans from the Bank's discontinued loan portfolio.** Approximately 34% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of March 31, 2021.* Walnut Street is the investment in unconsolidated entity on the balance sheetwhich reflects the investment in a securitization of certain loans from theBank's discontinued loan portfolio.** Approximately 34% of expected principal recoveries were from loans andproperties pending liquidation or other resolution as of March 31, 2021.Walnut Street portfolio composition as of March 31, 2021

Collateral type

% of Portfolio

Commercial real estate non-owner occupied - Retail

67.4%

Construction and land

24.3%

Other

8.3%

Total

100.0%

Walnut Street portfolio composition as of March 31, 2021



Collateral type % of Portfolio

Commercial real estate non-owner occupied - Retail 67.4%

Construction and land 24.3%

Other 8.3%

Total 100.0%

Cumulative analysis of marks on discontinued commercial loan principal as of March 31, 2021

Discontinued

Cumulative

% to original

loan principal

marks

principal

(dollars in millions)

Commercial loan discontinued principal before marks

$

61

Florida mall held in discontinued other real estate owned

42

$

(27)

Mark at March 31, 2021

(4)

Cumulative mark at March 31, 2021

$

103

$

(31)

30%

Cumulative analysis of marks on discontinued commercial loan principal as ofMarch 31, 2021

Discontinued Cumulative % to original

loan marks principal principal

(dollars in millions)

Commercial loan discontinued principal $ 61 before marks

Florida mall held in discontinued other 42 $ (27) real estate owned

Mark at March 31, 2021 (4)

Cumulative mark at March 31, 2021 $ 103 $ (31) 30%

Analysis of discontinued commercial loan relationships as of March 31, 2021

Performing

Nonperforming

Total

Performing

Nonperforming

Total

loan principal

loan principal

loan principal

loan marks

loan marks

marks

(in millions)

5 loan relationships > $5 million

$

39

$

-

$

39

$

(3)

$

-

$

(3)

Loan relationships < $5 million

9

9

18

-

(1)

(1)

$

48

$

9

$

57

$

(3)

$

(1)

$

(4)

Analysis of discontinued commercial loan relationships as of March 31, 2021



Performing Nonperforming Total Performing Nonperforming Total

loan loan loan loan marks loan marks marks principal principal principal

(in millions)

5 loanrelationships $ 39 $ - $ 39 $ (3) $ - $ (3)> $5 million

Loanrelationships 9 9 18 - (1) (1)< $5 million

$ 48 $ 9 $ 57 $ (3) $ (1) $ (4)

Quarterly activity for commercial loan discontinued principal

Commercial

loan principal

(in millions)

Commercial loan discontinued principal December 31, 2020 before marks

$

64

Quarterly paydowns and other reductions

(3)

Commercial loan discontinued principal March 31, 2021 before marks

61

Marks March 31, 2021

(4)

Net commercial loan exposure March 31, 2021

57

Residential mortgages

29

Net loans

86

Florida mall in other real estate owned

15

6 properties in other real estate owned

6

Total discontinued assets at March 31, 2021

$

107

Quarterly activity for commercial loan discontinued principal



Commercial

loan principal

(in millions)



Commercial loan discontinued principal December 31, 2020 before $ 64marks

Quarterly paydowns and other reductions (3)

Commercial loan discontinued principal March 31, 2021 before 61marks

Marks March 31, 2021 (4)

Net commercial loan exposure March 31, 2021 57

Residential mortgages 29

Net loans 86

Florida mall in other real estate owned 15

6 properties in other real estate owned 6

Total discontinued assets at March 31, 2021 $ 107

Discontinued commercial loan composition as of March 31, 2021

Collateral type

Unpaid principal balance

Mark at March 31, 2021

Mark as % of portfolio

(in millions)

Commercial real estate - non-owner occupied:

Retail

$

4

$

(0.6)

15%

Office

2

-

-

Other

18

(0.1)

1%

Construction and land

10

(0.1)

1%

Commercial non-real estate and industrial

3

(0.1)

3%

1 to 4 family construction

7

(2.5)

36%

First mortgage residential non-owner occupied

8

-

-

Commercial real estate owner occupied:

Retail

7

(0.7)

10%

Residential junior mortgage

1

-

-

Other

1

-

-

Total

$

61

$

(4.1)

7%

Less: mark

(4)

Net commercial loan exposure March 31, 2021

$

57

$

(4.1)

Discontinued commercial loan composition as of March 31, 2021



Unpaid Mark at Mark as % ofCollateral type principal March 31, portfolio balance 2021

(in millions)

Commercial real estate - non-owner occupied:

Retail $ 4 $ (0.6) 15%

Office 2 - -

Other 18 (0.1) 1%

Construction and land 10 (0.1) 1%

Commercial non-real estate and 3 (0.1) 3%industrial

1 to 4 family construction 7 (2.5) 36%

First mortgage residential 8 - -non-owner occupied

Commercial real estate owner occupied:

Retail 7 (0.7) 10%

Residential junior mortgage 1 - -

Other 1 - -

Total $ 61 $ (4.1) 7%

Less: mark (4)

Net commercial loan exposure $ 57 $ (4.1) March 31, 2021

Loan payment deferrals as of March 31, 2021

Cumulative months deferred (1)

Total loan balance deferrals

Total non- guaranteed loan balance deferrals

Total loan balances

% of total loan balances with deferrals

% of total non- guaranteed loan balances with deferrals

(dollars in millions)

Commercial real estate loans held at fair value (excluding SBA loans shown below)

6.0

$

19

$

19

$

1,546

1.2%

1.2%

Securities backed lines of credit, insurance backed lines of credit & advisor financing

-

-

-

1,681

-

-

SBL commercial mortgage

8.6

44

24

437

10.1%

5.5%

SBL construction

-

-

-

21

-

-

SBL non-real estate and PPP

7.6

15

4

424

3.5%

0.9%

Direct lease financing

-

-

-

484

-

-

Discontinued operations

8.5

1

1

90

1.1%

1.1%

Other consumer loans and specialty lending

-

-

-

7

-

-

Total

7.8

$

79

$

48

$

4,690

1.7%

1.0%

Loan payment deferrals as of March 31, 2021



% of % of total Cumulative Total Total non- total non- months loan guaranteed Total loan guaranteed deferred balance loan loan balances loan (1) deferrals balance balances with balances deferrals deferrals with deferrals

(dollars in millions)

Commercialreal estateloans heldat fair 6.0 $ 19 $ 19 $ 1,546 1.2% 1.2%value(excludingSBA loansshown below)

Securitiesbacked linesof credit,insurancebacked - - - 1,681 - -lines ofcredit &advisorfinancing

SBLcommercial 8.6 44 24 437 10.1% 5.5%mortgage

SBL - - - 21 - -construction

SBL non-realestate and 7.6 15 4 424 3.5% 0.9%PPP

Direct lease - - - 484 - -financing

Discontinued 8.5 1 1 90 1.1% 1.1%operations

Otherconsumerloans and - - - 7 - -specialtylending

Total 7.8 $ 79 $ 48 $ 4,690 1.7% 1.0%



(1)

Weighted average of cumulative months deferred for loan payments currently on deferral.Note: SBL balances above include loans reported in commercial loans, at fair value, in the balance sheet.

(1) Weighted average of cumulative months deferred for loan payments currently on deferral. Note: SBL balances above include loans reported in commercial loans, at fair value, in the balance sheet.

Note: At March 31, 2021, SBA 7a loans, included in the three SBL loan balance categories above, totaled $454.0 million of which $105.0 million was not U.S. government guaranteed. The CARES Act provided SBA 7a borrowers six months of principal and interest payments. The Consolidated Appropriations Act, 2021, became law in December 2020 and provided for at least an additional two months of such payments on SBA 7a loans, with up to five months of payments on hotel, restaurant and other more highly impacted loans which began on February 1, 2021.Note: At March 31, 2021, SBA 7a loans, included in the three SBL loan balancecategories above, totaled $454.0 million of which $105.0 million was not U.S.government guaranteed. The CARES Act provided SBA 7a borrowers six months ofprincipal and interest payments. The Consolidated Appropriations Act, 2021,became law in December 2020 and provided for at least an additional two monthsof such payments on SBA 7a loans, with up to five months of payments on hotel,restaurant and other more highly impacted loans which began on February 1,2021.SBA 7a deferral distribution by type as of March 31, 2021(comprised of the unguaranteed portion of SBA 7a loans)

Total

% Total

(in thousands)

Full-service restaurants

$

3,115

30%

Hotels*

1,535

15%

Sports and recreation instruction

1,157

11%

Services for the elderly and persons with disabilities

947

9%

Offices of dentists

829

8%

Drinking places (alcoholic beverages)

726

7%

All other amusement and recreation industries

580

6%

Administrative management services

334

3%

Commercial printing

333

3%

Automotive glass replacement shops

315

3%

Cosmetology and barber schools

244

2%

Clothing and furnishings merchant wholesalers

220

2%

Janitorial services

184

1%

Total

$

10,519

100%

SBA 7a deferral distribution by type as of March 31, 2021(comprised of the unguaranteed portion of SBA 7a loans)



Total % Total

(in thousands)

Full-service restaurants $ 3,115 30%

Hotels* 1,535 15%

Sports and recreation instruction 1,157 11%

Services for the elderly and persons with disabilities 947 9%

Offices of dentists 829 8%

Drinking places (alcoholic beverages) 726 7%

All other amusement and recreation industries 580 6%

Administrative management services 334 3%

Commercial printing 333 3%

Automotive glass replacement shops 315 3%

Cosmetology and barber schools 244 2%

Clothing and furnishings merchant wholesalers 220 2%

Janitorial services 184 1%

Total $ 10,519 100%

* At March 31, 2021, SBA 7a loans, included in SBL, totaled $454.0 million of which $105.0 million was not U.S. government guaranteed. The CARES Act provided SBA 7a borrowers six months of principal and interest payments. The Consolidated Appropriations Act, 2021, became law in December 2020 and provided for at least an additional two months of such payments on SBA 7a loans, with up to five months of payments on hotel, restaurant and other more highly impacted loans which began on February 1, 2021. View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006055/en/

CONTACT: The Bancorp, Inc. Andres Viroslav Director, Investor Relations 215-861-7990 aviroslav@thebancorp.com