Business Wire | Jul 29, 2021 04:06PM EDT

The Bancorp, Inc. Reports Second Quarter 2021 Financial Results

Jul. 29, 2021

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

Highlights

* For the quarter ended June 30, 2021, The Bancorp earned net income of $29.2 million from continuing operations, and $0.50 diluted earnings per share from combined continuing and discontinued operations. * Return on assets and equity for the quarter ended June 30, 2021 amounted to 1.7% and 19%, respectively, compared to 1.3% and 16%, respectively, for the quarter ended June 30, 2020 (all percentages "annualized.") * Net interest margin amounted to 3.19% for the quarter ended June 30, 2021, compared to 3.53% for the quarter ended June 30, 2020 and 3.34% for the quarter ended March 31, 2021. * Net interest income increased 8% to $54.1 million for the quarter ended June 30, 2021, compared to $50.2 million for the quarter ended June 30, 2020. * Average loans and leases, including loans at fair value, increased 16% to $4.58 billion for the quarter ended June 30, 2021, compared to $3.93 billion for the quarter ended June 30, 2020. * Prepaid, debit card and other payment related fees increased 5% to $21.4 million for the quarter ended June 30, 2021, compared to $20.4 million for the quarter ended June 30, 2020. * Gross dollar volume (GDV), representing the total amounts spent on prepaid and debit cards, increased 15% for the quarter ended June 30, 2021 compared to the quarter ended June 30, 2020. * SBLOC (securities backed lines of credit), IBLOC (insurance backed lines of credit) and advisor financing loans collectively increased 38% year over year and 7% quarter over quarter to $1.80 billion at June 30, 2021. * Small Business Loans, including those held at fair value, increased 15% year over year to $689.5 million at June 30, 2021. That growth is exclusive of Paycheck Protection Program (PPP) loan balances of $129.4 million and $207.9 million, respectively, at June 30, 2021 and June 30, 2020. * Direct lease financing balances increased 20% year over year to $506.4 million at June 30, 2021. * The average interest rate on $6.38 billion of average deposits and interest-bearing liabilities during the second quarter of 2021 was 0.18%. Average deposits of $6.26 billion for the second quarter 2021, reflected an increase of 17% over the $5.37 billion in average deposits for the quarter ended June 30, 2020. * Of the $48 million of loan balances with Covid related payment deferrals at March 31, 2021, only borrowers representing $2.6 million of balances had not made their payments due on July 5, 2021, with an additional $968,000 remaining in deferral as of that date. Those amounts represent .08% of total loans at June 30, 2021 compared to 1.0% at March 31, 2021. * Consolidated and The Bancorp Bank ("the Bank") leverage ratios were 8.52% and 8.73%, respectively, at June 30, 2021. The Bancorp and its subsidiary, The Bank, remain well capitalized. * Book value per common share at June 30, 2021 was $10.77 per share compared to $9.28 per share at June 30, 2020, an increase of 16%, primarily as a result of retained earnings per share. * The Bancorp repurchased 449,315 shares of its common stock at an average cost of $22.26 per share during the quarter ended June 30, 2021.

Damian Kozlowski, The Bancorp's Chief Executive Officer, said, "We had another strong quarter in both growth and profitability. Growth continues to be supported by the acquisition of new clients and the expansion of our capabilities and solutions in our payments ecosystem. Based on our year-to-date performance of $0.94 a share and our 2021 outlook, we are raising our guidance to $1.78 a share. The $1.78 does not include the impact of buybacks in the 3rd and 4th quarters. We continue to see tailwinds that should drive continued growth in 2021 earnings and beyond. We will issue preliminary 2022 per share guidance in our 3rd quarter earnings release. Current trends would suggest income growth for 2022 of 20% or more over our revised 2021 guidance."

The Bancorp reported net income of $29.4 million, or $0.50 per diluted share, for the quarter ended June 30, 2021, compared to net income of $20.1 million, or $0.35 per diluted share, for the quarter ended June 30, 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 8.52%, 15.39%, 15.78% and 15.39%, 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, July 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 2868852. 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 6, 2021 by dialing 855.859.2056, access code 2868852.

The Bancorp, Inc. (NASDAQ: TBBK), headquartered in Wilmington, Delaware, through its subsidiary, The Bancorp Bank, 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 StatementsStatements 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. 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.Financial highlights(unaudited)



Three months ended Six months ended June 30, June 30,

Condensedincome 2021 2020 2021 2020statement

(dollars in thousands, except per share data)



Net interest $ 54,069 $ 50,246 $ 107,826 $ 93,157 income

Provision for (951 ) 922 (129 ) 4,501 credit losses

Non-interest income

ACH, card andother payment 1,904 1,707 3,700 3,553 processing fees

Prepaid, debitcard and 19,447 18,673 38,655 37,213 related fees

Net realizedand unrealized gains (losses)on commercial

loans, at fair 2,579 (940 ) 4,575 (6,096 )value

Change in valueof investmentin - - - (45 )unconsolidatedentity

Leasing related 1,767 443 2,732 1,276 income

Othernon-interest 164 483 273 1,064 income

Totalnon-interest 25,861 20,366 49,935 36,965 income

Non-interest expense

Salaries andemployee 27,087 25,492 52,745 48,233 benefits

Data processing 1,146 1,177 2,272 2,346 expense

Legal expense 2,044 2,229 4,098 3,142

FDIC insurance 2,589 2,918 4,969 5,507

Software 3,706 3,386 7,390 6,863

Othernon-interest 7,311 7,418 14,292 14,947 expense

Totalnon-interest 43,883 42,620 85,766 81,038 expense

Income fromcontinuingoperations 36,998 27,070 72,124 44,583 before incometaxes

Income tax 7,840 6,787 16,906 11,139 expense

Net income fromcontinuing 29,158 20,283 55,218 33,444 operations

Discontinued operations

Income (loss)fromdiscontinued 361 (274 ) 237 (1,049 )operationsbefore incometaxes

Income taxexpense 84 (59 ) 55 (264 )(benefit)

Net income(loss) fromdiscontinued 277 (215 ) 182 (785 )operations, netof tax

Net income $ 29,435 $ 20,068 $ 55,400 $ 32,659



Net income pershare fromcontinuing $ 0.51 $ 0.35 $ 0.96 $ 0.58 operations -basic

Net income(loss) pershare from $ - $ - $ 0.01 $ (0.01 )discontinuedoperations -basic

Net income per $ 0.51 $ 0.35 $ 0.97 $ 0.57 share - basic



Net income pershare fromcontinuing $ 0.49 $ 0.35 $ 0.93 $ 0.58 operations -diluted

Net income(loss) pershare from $ 0.01 $ - $ 0.01 $ (0.01 )discontinuedoperations -diluted

Net income per $ 0.50 $ 0.35 $ 0.94 $ 0.57 share - diluted

Weightedaverage shares 57,230,576 57,489,719 57,232,557 57,355,282 - basic

Weightedaverage shares 59,022,925 57,800,115 59,086,956 57,856,791 - diluted

Note: Compared to higher rates in recent periods, the effective tax rate in the second quarter of 2021 approximated 21% as a result of the impact of excess tax deductions related to stock-based compensation, recorded as a discrete item in the second quarter. The large deductions and tax benefit resulted from the increase in the Company's stock price as compared to the original grant date.

June 30, March 31, December 31, June 30,Balance sheet 2021 2021 2020 2020 (unaudited) (unaudited) (unaudited)

(dollars in thousands)

Assets:

Cash and cash equivalents

Cash and due from $ 5,470 $ 7,838 $ 5,984 $ 5,094 banks

Interest earningdeposits at Federal 583,498 1,738,749 339,531 475,627 Reserve Bank

Total cash and cash 588,968 1,746,587 345,515 480,721 equivalents



Investmentsecurities, 1,106,075 1,128,459 1,206,164 1,324,447 available-for-sale,at fair value

Commercial loans,at fair value 1,690,216 1,780,762 1,810,812 1,807,630 (held-for-sale atJune 30, 2020)

Loans, net ofdeferred fees and 2,915,344 2,827,076 2,652,323 2,322,737 costs

Allowance for (15,292 ) (16,419 ) (16,082 ) (14,625 )credit losses

Loans, net 2,900,052 2,810,657 2,636,241 2,308,112

Federal Home LoanBank and Atlantic 1,667 1,368 1,368 1,368 Central BankersBank stock

Premises and 17,392 17,196 17,608 16,701 equipment, net

Accrued interest 18,668 20,164 20,458 18,897 receivable

Intangible assets, 2,646 2,746 2,845 2,710 net

Deferred tax asset, 10,923 10,900 9,757 7,921 net

Investment inunconsolidated 24,988 31,047 31,294 34,064 entity, at fairvalue

Assetsheld-for-sale from 97,496 106,925 113,650 128,463 discontinuedoperations

Other assets 91,516 90,530 81,129 83,003

Total assets $ 6,550,607 $ 7,747,341 $ 6,276,841 $ 6,214,037



Liabilities:

Deposits

Demand and interest $ 5,225,024 $ 6,231,220 $ 5,205,010 $ 5,089,741 checking

Savings and money 459,688 690,281 257,050 455,458 market

Total deposits 5,684,712 6,921,501 5,462,060 5,545,199



Securities soldunder agreements to 42 42 42 42 repurchase

Senior debt 98,498 98,406 98,314 -

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

Other long-term 39,901 40,085 40,277 40,639 borrowings

Other liabilities 94,944 77,142 81,583 81,677

Total liabilities $ 5,931,498 $ 7,150,577 $ 5,695,677 $ 5,680,958



Shareholders' equity:

Common stock -authorized,75,000,000 sharesof $1.00 par value;57,458,287 and 57,458 57,248 57,551 57,455 57,455,308 sharesissued andoutstanding at June30, 2021 and 2020,respectively

Additional paid-in 363,241 370,481 377,452 373,812 capital

Retained earnings 183,853 154,418 128,453 81,028

Accumulated othercomprehensive 14,557 14,617 17,708 20,784 income

Total shareholders' 619,109 596,764 581,164 533,079 equity



Total liabilitiesand shareholders' $ 6,550,607 $ 7,747,341 $ 6,276,841 $ 6,214,037 equity

Average balance sheet and net interest income

Three months ended June 30, 2021

Three months ended June 30, 2020

(dollars in thousands; unaudited)

Assets:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Interest earning assets:

Loans, net of deferred fees and costs**

$

4,572,712

$

49,378

4.32

%

$

3,925,515

$

41,448

4.22

%

Leases-bank qualified*

5,783

96

6.64

%

9,217

162

7.03

%

Investment securities-taxable

1,081,419

7,201

2.66

%

1,334,368

10,188

3.05

%

Investment securities-nontaxable*

3,878

32

3.30

%

4,402

35

3.18

%

Interest earning deposits at Federal Reserve Bank

1,120,039

300

0.11

%

426,174

107

0.10

%

Net interest earning assets

6,783,831

57,007

3.36

%

5,699,676

51,940

3.65

%

Allowance for credit losses

(16,406

)

(14,822

)

Assets held-for-sale from discontinued operations

98,895

781

3.16

%

130,530

1,094

3.35

%

Other assets

201,539

228,443

$

7,067,859

$

6,043,827

Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking

$

5,736,776

$

1,327

0.09

%

$

5,140,167

$

1,390

0.11

%

Savings and money market

526,112

192

0.15

%

234,201

120

0.20

%

Total deposits

6,262,888

1,519

0.10

%

5,374,368

1,510

0.11

%

Short-term borrowings

-

-

-

16,428

15

0.37

%

Repurchase agreements

41

-

-

41

-

-

Subordinated debentures

13,401

112

3.34

%

13,401

128

3.82

%

Senior debt

100,239

1,280

5.11

%

-

-

-

Total deposits and liabilities

6,376,569

2,911

0.18

%

5,404,238

1,653

0.12

%

Other liabilities

83,353

123,997

Total liabilities

6,459,922

5,528,235

Shareholders' equity

607,937

515,592

$

7,067,859

$

6,043,827

Net interest income on tax equivalent basis*

$

54,877

$

51,381

Tax equivalent adjustment

27

41

Net interest income

$

54,850

$

51,340

Net interest margin *

3.19

%

3.53

%

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020. ** Includes commercial loans, at fair value for 2021 previously classified as held-for-sale at June 30, 2020. All periods include non-accrual loans.

NOTE: In the table above, the 2021 interest on loans reflects $3.0 million of fees which 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. These fees are not expected to recur. Interest on loans also includes $1.3 million of interest and fees on PPP loans. In 2020 the table above includes comparable PPP interest and fees of $1.6 million. 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.

Average balance sheetand net interest Three months ended June 30, 2021 Three months ended June 30, 2020income

(dollars in thousands; unaudited)

Assets: Average Interest Average Average Interest Average Balance Rate Balance Rate



Interest earning assets:

Loans, net of deferred $ 4,572,712 $ 49,378 4.32 % $ 3,925,515 $ 41,448 4.22 %fees and costs**

Leases-bank qualified* 5,783 96 6.64 % 9,217 162 7.03 %

Investment 1,081,419 7,201 2.66 % 1,334,368 10,188 3.05 %securities-taxable

Investment 3,878 32 3.30 % 4,402 35 3.18 %securities-nontaxable*

Interest earningdeposits at Federal 1,120,039 300 0.11 % 426,174 107 0.10 %Reserve Bank

Net interest earning 6,783,831 57,007 3.36 % 5,699,676 51,940 3.65 %assets



Allowance for credit (16,406 ) (14,822 ) losses

Assets held-for-salefrom discontinued 98,895 781 3.16 % 130,530 1,094 3.35 %operations

Other assets 201,539 228,443

$ 7,067,859 $ 6,043,827



Liabilities and Shareholders' Equity:

Deposits:

Demand and interest $ 5,736,776 $ 1,327 0.09 % $ 5,140,167 $ 1,390 0.11 %checking

Savings and money 526,112 192 0.15 % 234,201 120 0.20 %market

Total deposits 6,262,888 1,519 0.10 % 5,374,368 1,510 0.11 %



Short-term borrowings - - - 16,428 15 0.37 %

Repurchase agreements 41 - - 41 - -

Subordinated 13,401 112 3.34 % 13,401 128 3.82 %debentures

Senior debt 100,239 1,280 5.11 % - - -

Total deposits and 6,376,569 2,911 0.18 % 5,404,238 1,653 0.12 %liabilities



Other liabilities 83,353 123,997

Total liabilities 6,459,922 5,528,235



Shareholders' equity 607,937 515,592

$ 7,067,859 $ 6,043,827

Net interest income on $ 54,877 $ 51,381 tax equivalent basis*



Tax equivalent 27 41 adjustment



Net interest income $ 54,850 $ 51,340

Net interest margin * 3.19 % 3.53 %

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020. ** Includes commercial loans, at fair value for 2021 previously classified as held-for-sale at June 30, 2020. All periods include non-accrual loans.

NOTE: In the table above, the 2021 interest on loans reflects $3.0 million of fees which 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. These fees are not expected to recur. Interest on loans also includes $1.3 million of interest and fees on PPP loans. In 2020 the table above includes comparable PPP interest and fees of $1.6 million. 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.

Average balance sheet and net Six months ended June 30, 2021 Six months ended June 30, 2020interest income

(dollars in thousands; unaudited)

Assets: Average Interest Average Average Interest Average Balance Rate Balance Rate



Interest earning assets:

Loans, net of deferred fees $ 4,524,911 $ 97,189 4.30 % $ 3,593,921 $ 80,607 4.49 %and costs**

Leases - bank qualified* 6,379 214 6.71 % 10,096 362 7.17 %

Investment securities-taxable 1,136,631 16,009 2.82 % 1,364,956 20,683 3.03 %

Investment 3,960 67 3.38 % 4,788 75 3.13 %securities-nontaxable*

Interest earning deposits at 935,239 483 0.10 % 460,025 1,730 0.75 %Federal Reserve Bank

Net interest earning assets 6,607,120 113,962 3.45 % 5,433,786 103,457 3.81 %



Allowance for credit losses (16,241 ) (12,532 )

Assets held for sale from 103,983 1,634 3.14 % 133,903 2,368 3.54 %discontinued operations

Other assets 203,821 233,088

$ 6,898,683 $ 5,788,245



Liabilities and Shareholders' Equity:

Deposits:

Demand and interest checking $ 5,619,608 $ 2,944 0.10 % $ 4,746,928 $ 8,085 0.34 %

Savings and money market 466,978 341 0.15 % 203,888 170 0.17 %

Time deposits - - - 159,752 1,483 1.86 %

Total deposits 6,086,586 3,285 0.11 % 5,110,568 9,738 0.38 %



Short-term borrowings 6,491 8 0.25 % 36,620 180 0.98 %

Repurchase agreements 41 - - 57 - -

Subordinated debentures 13,401 225 3.36 % 13,401 290 4.33 %

Senior debt 100,190 2,559 5.11 % - - -

Total deposits and 6,206,709 6,077 0.20 % 5,160,646 10,208 0.40 %liabilities



Other liabilities 91,837 118,811

Total liabilities 6,298,546 5,279,457



Shareholders' equity 600,137 508,788

$ 6,898,683 $ 5,788,245

Net interest income on tax $ 109,519 $ 95,617 equivalent basis*



Tax equivalent adjustment 59 92



Net interest income $ 109,460 $ 95,525

Net interest margin * 3.26 % 3.43 %

* Full taxable equivalent basis, using a statutory Federal tax rate of 21% for 2021 and 2020. ** Includes commercial loans, at fair value for 2021 previously classified as held-for-sale at June 30, 2020. All periods include non-accrual loans.

NOTE: In the table above, the 2021 interest on loans reflects $4.5 million of fees which 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. These fees are not expected to recur. Interest on loans also includes $3.7 million of interest and fees on PPP loans. In 2020 the table above includes comparable PPP interest and fees of $1.6 million. 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.

Allowance for credit losses Six months ended Year ended

June 30, June 30, December 2021 2020 31, (unaudited) (unaudited) 2020

(dollars in thousands)



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



Loans charged-off:

SBA non-real estate 321 1,048 1,350

SBA commercial mortgage 23 - -

Direct lease financing 193 1,552 2,243

SBLOC 15 - -

Total 552 2,600 3,593



Recoveries:

SBA non-real estate 15 60 103

Direct lease financing 7 84 570

Total 22 144 673

Net charge-offs 530 2,456 2,920

(Reversal of) provision credited toallowance, excluding commitment (260 ) 4,206 6,127 provision



Balance in allowance for credit losses $ 15,292 $ 14,625 $ 16,082 at end of period

Net charge-offs/average loans 0.02 % 0.06 % 0.07 %

Net charge-offs/average assets 0.01 % 0.04 % 0.05 %

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

June 30, March 31, December June 30,Loan portfolio 2021 2021 31, 2020 2020

(in thousands)



SBL non-real estate $ 228,958 $ 305,446 $ 255,318 $ 293,692

SBL commercial mortgage 343,487 320,013 300,817 259,020

SBL construction 18,494 20,692 20,273 33,193

Small business loans * 590,939 646,151 576,408 585,905

Direct lease financing 506,424 484,316 462,182 422,505

SBLOC / IBLOC** 1,729,628 1,622,359 1,550,086 1,287,350

Advisor financing *** 72,190 58,919 48,282 15,529

Other specialty lending 2,092 2,251 2,179 2,706

Other consumer loans **** 3,748 4,201 4,247 4,003

2,905,021 2,818,197 2,643,384 2,317,998

Unamortized loan fees and 10,323 8,879 8,939 4,739costs

Total loans, net ofunamortized fees and $ 2,915,344 $ 2,827,076 $ 2,652,323 $ 2,322,737costs

Small business portfolio

June 30, 2021

March 31, 2021

December 31, 2020

June 30, 2020

(in thousands)

SBL, including unamortized fees and costs

$

593,401

$

647,445

$

577,944

$

583,935

SBL, included in commercial loans, at fair value

225,534

234,908

243,562

225,401

Total small business loans

$

818,935

$

882,353

$

821,506

$

809,336

* 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. A reduction in SBL non-real estate loans from $305.4 million at March 31, 2021 to $229.0 million at June 30, 2021 resulted from U.S. government repayments of $60.8 million of PPP loans authorized by The Consolidated Appropriations Act, 2021 and the repayment of $19.7 million of a line of credit to another institution related to PPP loans. PPP loans totaled $129.4 million at June 30, 2021 and $165.7 million at December 31, 2020, respectively. ** 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 $424,000 and $663,000 at June 30, 2021 and December 31, 2020, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.





June 30, March 31, December June 30,Small business portfolio 2021 2021 31, 2020 2020

(in thousands)



SBL, including unamortized fees and $ 593,401 $ 647,445 $ 577,944 $ 583,935costs

SBL, included in commercial loans, 225,534 234,908 243,562 225,401at fair value

Total small business loans $ 818,935 $ 882,353 $ 821,506 $ 809,336

* 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. A reduction in SBL non-real estate loans from $305.4 million at March 31, 2021 to $229.0 million at June 30, 2021 resulted from U.S. government repayments of $60.8 million of PPP loans authorized by The Consolidated Appropriations Act, 2021 and the repayment of $19.7 million of a line of credit to another institution related to PPP loans. PPP loans totaled $129.4 million at June 30, 2021 and $165.7 million at December 31, 2020, respectively. ** 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 $424,000 and $663,000 at June 30, 2021 and December 31, 2020, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses and have been immaterial.

Small business loans as of June 30, 2021



Loan principal (in millions)

U.S. government guaranteed portion of SBA loans (a) $ 358

Paycheck Protection Program Loans (PPP) (a) 129

Commercial mortgage SBA (b) 189

Construction SBA (c) 9

Non-guaranteed portion of U.S. government guaranteed 7a loans 106(d)

Non-SBA small business loans (e) 18

Total principal $ 809

Unamortized fees and costs 10

Total small business loans $ 819

(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 $9 million in Construction SBA loans, $8 million are 504 first mortgages with an origination date LTV of 50-60% and $1 million are SBA interim loans with an approved SBA post-construction full takeout/payoff. (d) The $106 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 $18 million of non-SBA loans is 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.

Small business loans by type as of June 30, 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 (except casino $ 66 $ 3 $ - $ 69 22 %hotels) and motels

Full-service 16 1 3 20 6 %restaurants

Child day care 16 - 1 17 5 %services

Baked goods stores 4 - 11 15 5 %

Car washes 10 2 - 12 4 %

Assisted livingfacilities for the 10 - - 10 3 %elderly

Offices of lawyers 9 - - 9 3 %

Lessors ofnonresidential 9 - - 9 3 %buildings (exceptminiwarehouses)

Funeral homes and 8 - - 8 2 %funeral services

Limited-service 2 1 5 8 2 %restaurants

General warehousing 7 - - 7 2 %and storage

All other amusementand recreation 5 - 1 6 2 %industries

Outpatient mentalhealth and substance 5 - - 5 2 %abuse centers

Other spectator 5 - - 5 1 %sports

Fitness andrecreational sports - 2 2 4 1 %centers

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 %

All othermiscellaneous wood 3 - - 3 1 %product manufacturing

Offices of physicians(except mental health 3 - - 3 1 %specialists)

All othermiscellaneous general 3 - - 3 1 %purpose machinerymanufacturing

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

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

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

Caterers 2 - - 2 1 %

Amusement arcades 2 - - 2 1 %

Lessors of other real 2 - - 2 1 %estate property

Plumbing, heating,and air-conditioning 2 - - 2 1 %contractors

Landscaping services - - 2 2 1 %

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

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

Other** 46 2 28 76 20 %

Total $ 258 $ 11 $ 53 $ 322 100 %

* Of the SBL commercial mortgage and SBL construction loans, $61.0 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 $2.0 million are spread over a hundred different classifications such as Commercial Printing, Pet and Pet Supplies Stores, Securities Brokerage, etc.

State diversification as of June 30, 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 $ 54 $ - $ 8 $ 62 19 %

California 42 1 4 47 15 %

North Carolina 23 2 3 28 9 %

Pennsylvania 23 - 3 26 8 %

New York 17 3 5 25 8 %

Illinois 22 - 3 25 8 %

Texas 12 - 5 17 5 %

New Jersey 7 - 6 13 4 %

Virginia 9 - 2 11 3 %

Tennessee 10 - 1 11 3 %

Georgia 7 - 2 9 3 %

Colorado 3 4 2 9 3 %

Michigan 3 - 2 5 2 %

Washington 3 - - 3 1 %

Ohio 3 - - 3 1 %

Other states 20 1 7 28 8 %

Total $ 258 $ 11 $ 53 $ 322 100 %



* Of the SBL commercial mortgage and SBL construction loans, $61.0 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.

Top 10 loans as of June 30, 2021



Type* State SBL commercial mortgage*

(in millions)

Lawyers' office CA $ 9

Hotel FL 9

General warehouse and storage PA 7

Hotel NC 6

Assisted living facility FL 5

Outpatient mental health and substance abuse FL 5 center

Hotel NC 5

Hotel PA 4

Hotel TN 4

Gasoline station VA 4

Total $ 58

* All of the top 10 loans are 504 SBA loans with 50%-60% origination date loan-to-value and are in the commercial mortgage category. The top 10 loan table above does not include loans to the extent 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 June 30, 2021



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

(dollars in millions)

Multifamily (apartments) 136 $ 1,323 76 % 4.75 %

Hospitality (hotels and 11 75 65 % 5.74 %lodging)

Retail 6 44 71 % 4.65 %

Other 7 28 70 % 5.24 %

160 $ 1,470 75 % 4.81 %

Fair value adjustment (5 )

Total $ 1,465

State diversification as of June 30, 2021

15 largest loans (all multifamily) as of June 30, 2021

State

Balance

Origination date LTV

State

Balance

Origination date LTV

(in millions)

(in millions)

Texas

$

427

77

%

North Carolina

$

44

78

%

Georgia

174

77

%

Texas

38

79

%

Arizona

108

76

%

Texas

36

80

%

North Carolina

69

78

%

Pennsylvania

33

77

%

Alabama

56

76

%

Texas

30

75

%

Ohio

57

69

%

Nevada

28

80

%

Other states each <$55 million

579

73

%

Texas

27

77

%

Total

$

1,470

75

%

Arizona

27

79

%

Mississippi

27

79

%

North Carolina

25

77

%

Texas

25

77

%

Texas

24

77

%

Alabama

23

77

%

Georgia

21

79

%

Texas

21

79

%

15 Largest loans

$

429

78

%



State diversification as of June 30, 15 largest loans (all multifamily) as2021 of June 30, 2021



State Balance Origination State Balance Origination date LTV date LTV

(in millions) (in millions)

Texas $ 427 77 % North $ 44 78 % Carolina

Georgia 174 77 % Texas 38 79 %

Arizona 108 76 % Texas 36 80 %

North 69 78 % Pennsylvania 33 77 %Carolina

Alabama 56 76 % Texas 30 75 %

Ohio 57 69 % Nevada 28 80 %

Otherstates 579 73 % Texas 27 77 %each <$55million

Total $ 1,470 75 % Arizona 27 79 %

Mississippi 27 79 %

North 25 77 % Carolina

Texas 25 77 %

Texas 24 77 %

Alabama 23 77 %

Georgia 21 79 %

Texas 21 79 %

15 Largest 78 % loans $ 429

Institutional banking loans outstanding at June 30, 2021

Type

Principal

% of total

(in millions)

Securities backed lines of credit (SBLOC)

$

1,133

63

%

Insurance backed lines of credit (IBLOC)

597

33

%

Advisor financing

72

4

%

Total

$

1,802

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 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. 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.

Institutional banking loans outstanding at June 30, 2021



Type Principal % of total

(in millions)

Securities backed lines of credit (SBLOC) $ 1,133 63 %

Insurance backed lines of credit (IBLOC) 597 33 %

Advisor financing 72 4 %

Total $ 1,802 100 %

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 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. 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.

Top 10 SBLOC loans at June 30, 2021



Principal amount % Principal to collateral

(in millions)

$ 60 41 %

17 37 %

16 54 %

14 26 %

12 29 %

10 38 %

9 30 %

8 71 %

8 23 %

8 51 %

Total and weighted average $ 162 40 %

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.

Direct lease financing* by type as of June 30, 2021



Principal balance % Total

(in millions)

Construction $ 83 16 %

Government agencies and public institutions** 77 15 %

Real estate and rental and leasing 66 13 %

Waste management and remediation services 63 12 %

Retail trade 48 10 %

Wholesale trade 40 8 %

Transportation and warehousing 28 6 %

Health care and social assistance 25 5 %

Professional, scientific, and technical services 19 4 %

Educational services 16 3 %

Manufacturing 15 3 %

Finance and insurance 7 1 %

Other 19 4 %

Total $ 506 100 %

* Of the total $506 million of direct lease financing, $465 million consisted of vehicle leases with the remaining balance consisting of equipment leases. ** Includes public universities and school districts.

Direct lease financing by state as of June 30, 2021



State Principal balance % Total

(in millions)

Florida $ 92 18 %

California 53 11 %

New Jersey 37 7 %

New York 33 6 %

Pennsylvania 31 6 %

Utah 31 6 %

Maryland 24 5 %

North Carolina 24 5 %

Texas 17 3 %

Connecticut 16 3 %

Washington 16 3 %

Missouri 14 3 %

Georgia 11 2 %

Idaho 9 2 %

Alabama 9 2 %

Other states 89 18 %

Total $ 506 100 %

Capital ratios

Tier 1 capital to average assets ratio

Tier 1 capital to risk-weighted assets ratio

Total capital to risk-weighted assets ratio

Common equity tier 1 to risk weighted assets

As of June 30, 2021

The Bancorp, Inc.

8.52

%

15.39

%

15.78

%

15.39

%

The Bancorp Bank

8.73

%

15.75

%

16.14

%

15.75

%

"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

%

Tier 1 Tier 1 Common capital capital Total capital equityCapital ratios to to to tier 1 average risk-weighted risk-weighted to risk assets assets ratio assets ratio weighted ratio assets

As of June 30, 2021

The Bancorp, Inc. 8.52 % 15.39 % 15.78 % 15.39 %

The Bancorp Bank 8.73 % 15.75 % 16.14 % 15.75 %

"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 June 30,

Six months ended June 30,

2021

2020

2021

2020

Selected operating ratios

Return on average assets (1)

1.67

%

1.33

%

1.62

%

1.13

%

Return on average equity (1)

19.42

%

15.61

%

18.62

%

12.87

%

Net interest margin

3.19

%

3.53

%

3.26

%

3.43

%

(1) Annualized



Three months ended Six months ended June 30, June 30,

2021 2020 2021 2020

Selected operating ratios

Return on average assets ^(1) 1.67 % 1.33 % 1.62 % 1.13 %

Return on average equity ^(1) 19.42 % 15.61 % 18.62 % 12.87 %

Net interest margin 3.19 % 3.53 % 3.26 % 3.43 %

(1) Annualized





Book value per share table June 30, March 31, December 31, June 30, 2021 2021 2020 2020

Book value per share $ 10.77 $ 10.42 $ 10.10 $ 9.28

Loan quality table

June 30, 2021

March 31, 2021

December 31, 2020

June 30, 2020

(dollars in thousands)

Nonperforming loans to total loans

0.31

%

0.49

%

0.48

%

0.44

%

Nonperforming assets to total assets

0.14

%

0.18

%

0.20

%

0.17

%

Allowance for credit losses

0.52

%

0.58

%

0.61

%

0.63

%

Nonaccrual loans

$

7,346

$

11,961

$

12,227

$

9,957

Loans 90 days past due still accruing interest

1,550

1,762

497

352

Other real estate owned

-

-

-

-

Total nonperforming assets

$

8,896

$

13,723

$

12,724

$

10,309





June 30, March 31, December June 30,Loan quality table 2021 2021 31, 2020 2020

(dollars in thousands)

Nonperforming loans to total loans 0.31 % 0.49 % 0.48 % 0.44 %^

Nonperforming assets to total 0.14 % 0.18 % 0.20 % 0.17 %assets

Allowance for credit losses 0.52 % 0.58 % 0.61 % 0.63 %



Nonaccrual loans $ 7,346 $ 11,961 $ 12,227 $ 9,957

Loans 90 days past due still 1,550 1,762 497 352 accruing interest

Other real estate owned - - - -

Total nonperforming assets $ 8,896 $ 13,723 $ 12,724 $ 10,309

Gross dollar volume (GDV)(1)

Three months ended

June 30, 2021

March 31, 2021

December 31, 2020

June 30, 2020

(in thousands)

Prepaid and debit card GDV

$

27,106,763

$

28,094,930

$

22,523,855

$

23,539,694

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

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

June 30, March 31, December 31, June 30, 2021 2021 2020 2020

(in thousands)



Prepaid and debit card $ 27,106,763 $ 28,094,930 $ 22,523,855 $ 23,539,694GDV

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

Business linequarterly summaryQuarter ended June30, 2021(dollars inmillions)

Balances

% Growth

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

Loans

Institutional 2.5 % $ 1,802 38 % 29 %banking ***

Small Business 5.0 % 819 15 % 10 %Lending****

Leasing 6.0 % 506 20 % 18 %

Commercial realestate (non-SBA at 4.8 % 1,465 nm nmfair value)

Weighted average 4.1 % $ 4,592 Non-interestyield income

% Growth

Deposits: Fintech Current Yearsolutions group quarter over year

Prepaid and debit 0.1 % $ 4,836 24 % nm $ 19.4 4 %card issuance

Card payment and ACH 0.2 % $ 885 22 % nm $ 1.9 nmprocessing

* Average rates are for the quarter ended June 30, 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. The linked quarter annualized percentage excludes a short-term line of credit to another institution to fund PPP loans, with a balance of $19.7 million at March 31, 2021, which was repaid in the second quarter.

Analysis of Walnut Street* marks



Loan Marks activity

(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 (122 )

June 30, 2021 Bancorp book value** $ 25



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 21% of expected principal recoveries were from loans and properties pending liquidation or other resolution as of June 30, 2021.

Walnut Street portfolio composition as of June 30, 2021



Collateral type % of Portfolio

Commercial real estate non-owner occupied - Retail 80.0%

Construction and land 13.3%

Other 6.7%

Total 100.0%

Cumulative analysis of marks on discontinued commercial loan principal as ofJune 30, 2021



Discontinued Cumulative % to loan marks original principal principal

(dollars in millions)

Commercial loan discontinued principal $ 53 before marks

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

Mark at June 30, 2021 (4 )

Cumulative mark at June 30, 2021 $ 95 $ (31 ) 33 %

Analysis of discontinued commercial loan relationships as of June 30, 2021

Performing loan principal

Nonperforming loan principal

Total loan principal

Performing loan marks

Nonperforming loan marks

Total marks

(in millions)

4 loan relationships > $5 million

$

33

$

-

$

33

$

(2

)

$

-

$

(2

)

Loan relationships < $5 million

12

4

16

(1

)

(1

)

(2

)

$

45

$

4

$

49

$

(3

)

$

(1

)

$

(4

)

Analysis of discontinued commercial loan relationships as of June 30, 2021



Performing Nonperforming Total Performing Nonperforming Total loan loan loan loan marks loan marks marks principal principal principal

(in millions)

4 loanrelationships $ 33 $ - $ 33 $ (2 ) $ - $ (2 )> $5 million

Loanrelationships 12 4 16 (1 ) (1 ) (2 )< $5 million

$ 45 $ 4 $ 49 $ (3 ) $ (1 ) $ (4 )

Quarterly activity for commercial loan discontinued principal

Commercial loan principal

(in millions)

Commercial loan discontinued principal March 31, 2021 before marks

$

61

Quarterly paydowns and other reductions

(8

)

Commercial loan discontinued principal June 30, 2021 before marks

53

Marks June 30, 2021

(4

)

Net commercial loan exposure June 30, 2021

49

Residential mortgages

27

Net loans

76

Florida mall in other real estate owned

15

5 properties in other real estate owned

6

Total discontinued assets at June 30, 2021

$

97

Quarterly activity for commercial loan discontinued principal



Commercial loan principal

(in millions)



Commercial loan discontinued principal March 31, 2021 before $ 61 marks

Quarterly paydowns and other reductions (8 )

Commercial loan discontinued principal June 30, 2021 before 53 marks

Marks June 30, 2021 (4 )

Net commercial loan exposure June 30, 2021 49

Residential mortgages 27

Net loans 76

Florida mall in other real estate owned 15

5 properties in other real estate owned 6

Total discontinued assets at June 30, 2021 $ 97

Discontinued commercial loan composition as of June 30, 2021

Collateral type

Unpaid principal balance

Mark at June 30, 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

(2.6

)

37

%

First mortgage residential non-owner occupied

5

-

-

Commercial real estate owner occupied:

Retail

2

-

-

Residential junior mortgage

1

-

-

Other

1

-

-

Total

$

53

$

(3.5

)

7

%

Less: mark

(4

)

Net commercial loan exposure June 30, 2021

$

49

$

(3.5

)

Loan payment deferrals related to Covid-19

Total non-U.S. guaranteed loan balances for borrowers with Covid-19 payment deferrals amounted to $48 million as of March 31, 2021. The vast majority of these borrowers had begun making their payments as of July 5, 2021. As of that date, $968,000 of discontinued operations loans were still in deferral, and small business (SBA) borrowers with unguaranteed principal balances totaling $2.6 million, have not made their payments due on that date. Of the $2.6 million, we are considering further deferrals for borrowers with unguaranteed balances of $1.7 million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729006073/en/

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