Bancorp, Inc. (TBBK) 8-K Earnings Release

Wilmington, DE – October 25, 2018 – The Bancorp, Inc. ("The Bancorp") (NASDAQ: TBBK), a financial holding company, today reported financial results for the third quarter of 2018.

Highlights



Pretax income from continuing operations increased to $83.2 million for the quarter ended September 30, 2018 compared to $12.2 million for the quarter ended September 30, 2017. The increase reflected a $65.0 million gain on the sale of the Company’s Individual Retirement Account portfolio.



Diluted earnings per share for the quarter ended September 30, 2018 were $1.07 and $0.23, excluding the tax effected impact of the gain on sale of the IRA portfolio. That compares to $0.13 diluted earnings per share for the quarter ended September 30, 2017.



Net interest income increased 10% to $30.6 million for the quarter ended September 30, 2018, compared to $27.9 million for the quarter ended September 30, 2017.



Interest income on security backed lines of credit (“SBLOC”) loans increased 30% to $7.7 million for the quarter ended September 30, 2018, compared to $5.9 million for the quarter ended September 30, 2017.



Net interest margin increased to 3.22% for the quarter ended September 30, 2018, compared to 3.11% for the quarter ended June 30, 2018.



Total payments revenue, consisting of prepaid card fees and card payment and Automated Clearing House processing fees for the quarter ended September 30, 2018 increased to $15.5 million, or 10%, compared to the quarter ended September 30, 2017. Of that total, prepaid fees for the quarter ended September 30, 2018 increased to $13.2 million, or 6%, and ACH, card and other processing fees increased to $2.3 million, or 46% compared to the quarter ended September 30, 2017, respectively.



Loans increased 9% to $1.50 billion at September 30, 2018, compared to $1.37 billion at September 30, 2017.



SBLOC loans increased 8% to $778.6 million at September 30, 2018, compared to $720.3 million at September 30, 2017.



Small Business Administration (“SBA”) loans increased 19% to $459.8 million at September 30, 2018, compared to $386.8 million at September 30, 2017.



Direct lease financing increased 7% to $396.0 million at September 30, 2018, compared to $368.7 million at September 30, 2017.



The rate on $3.88 billion of average deposits and interest-bearing liabilities in the third quarter of 2018 was 0.83% with a rate of 0.94% for $2.11 billion of average prepaid card deposits.



Non-interest expense decreased to $37.3 million for the quarter ended September 30, 2018, a 15% decrease from the third quarter of 2017. Year-to-date non-interest expense was $113.7 million compared to $119.0 million for year-to-date 2017, a decrease of 5%.



The benefit of the lower federal tax rate in 2018 compared to 2017 was increased in the third quarter, as the lower federal statutory rate of 21% (compared to 34% in 2017) was applied to the $65 million gain on sale of IRA portfolio.



Consolidated leverage ratio was 9.61% at September 30, 2018. The Bancorp and its subsidiary, The Bancorp Bank, remain well capitalized.



Book value per common share at September 30, 2018 was $6.95 per share.

Damian Kozlowski, The Bancorp’s Chief Executive Officer, said, “As previously announced, we sold our Safe Harbor IRA portfolio that generated $6 million in 2017 fees. The sale price was $65 million and added 84 cents a share to book value. The sale of our Safe Harbor IRA portfolio concludes our divestiture of non-core assets started when our new business plan was approved by our board in the third quarter of 2016. Like our European and Health Savings Accounts franchises, our safe harbor IRA portfolio was sub-scale, carried regulatory risks and was unlikely to deliver longer-term growth or innovation to our business model. Therefore, its sale for $65 million, or over 10 times 2017 fees, allowed us to complete the process of focusing and de-risking our institution, while significantly enhancing our capital position without diluting the equity ownership of our shareholders.”

The Bancorp reported net income of $61.3 million, or $1.07 income per diluted share, for the quarter ended September 30, 2018, compared to net income of $7.3 million, or $0.13 income per diluted share, for the quarter ended September 30, 2017. Pretax income from continuing operations for third quarter 2018 increased to $83.2 million compared to $12.2 million reported for third quarter 2017. Income from continuing operations does not include any income which may result from the reinvestment of the proceeds from sales or repayment of the remaining assets in The Bancorp’s discontinued operations. Tier one capital to assets, tier one capital to risk-weighted assets, total capital to risk-weighted assets and common equity-tier 1 ratios were 9.64%, 24.05%, 24.53% and 24.05%, 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, October 26, 2018 by clicking on the webcast link on The Bancorp's homepage at www.thebancorp.com. Or, you may dial 844.775.2543, access code 9061088. You may listen to the replay of the webcast following the live call on The Bancorp's investor relations website or telephonically until Friday, November 2, 2018 by dialing 855.859.2056, access code 9061088.

About The Bancorp

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" that involve risks and uncertainties. These statements may be identified by the use of forward-looking terminology, including but not limited to the words “may,” “believe,” “will,” “expect,” “look,” “anticipate,” “estimate,” “continue,” or similar words. For further discussion of the risks and uncertainties to which these forward-looking statements may be subject, see The Bancorp’s filings with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those filings. These risks and uncertainties could cause actual results to differ materially from those projected in the forward-looking statements. The forward-looking statements speak only as of the date of this 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 presentation, except as may be required under applicable law.

The Bancorp, Inc. Contact

Andres Viroslav

215-861-7990

aviroslav@thebancorp.com

The Bancorp, Inc.
Financial highlights
(unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
Condensed income statement	2018			2017			2018			2017
	(dollars in thousands except per share data)

Net interest income	$	30,632		$	27,901		$	90,240		$	79,993
Provision for loan and lease losses		1,060			800			2,660			2,150
Non-interest income
Service fees on deposit accounts		402			1,700			3,624			4,895
Card payment and ACH processing fees		2,281			1,564			6,275			4,596
Prepaid card fees		13,204			12,491			41,559			39,272
Gain on sale of loans		8,999			11,394			20,274			17,535
Gain on sale of investment securities		15			506			41			1,595
Change in value of investment in unconsolidated entity		(78	)		(4	)		(2,981	)		(20	)
Leasing income		758			705			2,353			2,088
Affinity fees		84			275			271			1,445
Gain on sale of IRA portfolio		65,000			-			65,000			-
Gain on sale of health savings accounts		-			-			-			2,538
Loss from sale of European prepaid card operations		-			-			-			(3,437	)
Other non-interest income		305			376			689			892
Total non-interest income		90,970			29,007			137,105			71,399
Non-interest expense
Salaries and employee benefits		19,243			21,788			59,213			57,902
Data processing expense		1,380			1,926			4,741			8,047
Legal expense		1,610			2,744			5,811			5,909
FDIC Insurance		2,241			2,063			7,389			7,586
Software		3,593			3,088			9,879			9,328
Losses and write downs on other real estate owned		-			-			45			19
Civil money penalty		-			2,500			(290	)		2,500
Lease termination expense		-			-			395			-
Other non-interest expense		9,232			9,774			26,475			27,738
Total non-interest expense		37,299			43,883			113,658			119,029
Income from continuing operations before income taxes		83,243			12,225			111,027			30,213
Income tax expense (benefit)		21,942			5,455			29,550			(457	)
Net income from continuing operations		61,301			6,770			81,477			30,670
Discontinued operations
Income (loss) from discontinued operations before income taxes		(370	)		829			(264	)		5,488
Income tax expense (benefit)		(346	)		318			(345	)		2,050
Net income (loss) from discontinued operations, net of tax		(24	)		511			81			3,438
Net income available to common shareholders	$	61,277		$	7,281		$	81,558		$	34,108

Net income per share from continuing operations - basic	$	1.09		$	0.12		$	1.45		$	0.55
Net income per share from discontinued operations - basic	$	-		$	0.01		$	-		$	0.06
Net income per share - basic	$	1.09		$	0.13		$	1.45		$	0.61

Net income per share from continuing operations - diluted	$	1.07		$	0.12		$	1.43		$	0.55
Net income per share from discontinued operations - diluted	$	-		$	0.01		$	-		$	0.06
Net income per share - diluted	$	1.07		$	0.13		$	1.43		$	0.61
Weighted average shares - basic		56,442,222			55,758,433			56,309,390			55,661,538
Weighted average shares - diluted		57,103,301			56,312,838			57,084,844			56,043,909

Balance sheet	September 30,			June 30,			December 31,			September 30,
	2018			2018			2017			2017
	(dollars in thousands)
Assets:
Cash and cash equivalents
Cash and due from banks	$	2,245		$	3,052		$	3,152		$	5,813
Interest earning deposits at Federal Reserve Bank		710,816			373,782			841,471			328,023
Securities sold under agreements to resell		64,518			64,216			64,312			65,095
Total cash and cash equivalents		777,579			441,050			908,935			398,931

Investment securities, available-for-sale, at fair value		1,274,417			1,305,494			1,294,484			1,196,956
Investment securities, held-to-maturity		84,433			86,354			86,380			86,402
Commercial loans held for sale, at fair value		308,470			447,997			503,316			380,272
Loans, net of deferred fees and costs		1,496,773			1,506,812			1,392,228			1,374,060
Allowance for loan and lease losses		(8,092	)		(8,014	)		(7,096	)		(7,283	)
Loans, net		1,488,681			1,498,798			1,385,132			1,366,777
Federal Home Loan Bank & Atlantic Community Bancshares stock		1,113			1,113			991			991
Premises and equipment, net		17,686			18,275			20,051			21,087
Accrued interest receivable		11,621			11,810			10,900			10,131
Intangible assets, net		4,229			4,612			5,377			5,185
Other real estate owned		405			405			450			-
Deferred tax asset, net		40,991			39,779			34,802			53,017
Investment in unconsolidated entity		64,212			67,994			74,473			107,711
Assets held for sale from discontinued operations		226,026			241,694			304,313			314,994
Other assets		60,337			56,499			78,543			51,164
Total assets	$	4,360,200		$	4,221,874		$	4,708,147		$	3,993,618

Liabilities:
Deposits
Demand and interest checking	$	3,540,605		$	3,287,682		$	3,806,965		$	3,113,212
Savings and money market		317,453			511,598			453,877			452,183
Total deposits		3,858,058			3,799,280			4,260,842			3,565,395

Securities sold under agreements to repurchase		158			161			217			180
Subordinated debenture		13,401			13,401			13,401			13,401
Long-term borrowings		41,841			42,000			42,323			42,482
Other liabilities		54,868			34,485			67,215			32,699
Total liabilities	$	3,968,326		$	3,889,327		$	4,383,998		$	3,654,157

Shareholders' equity:
Common stock - authorized, 75,000,000 shares of $1.00 par value; 56,446,088 and 55,859,660 shares issued at September 30, 2018 and 2017, respectively		56,446			56,411			55,861			55,860
Treasury stock (100,000 shares)		(866	)		(866	)		(866	)		(866	)
Additional paid-in capital		365,749			364,460			363,196			362,340
Accumulated deficit		(7,936	)		(69,213	)		(89,485	)		(77,850	)
Accumulated other comprehensive loss		(21,519	)		(18,245	)		(4,557	)		(23	)
Total shareholders' equity		391,874			332,547			324,149			339,461

Total liabilities and shareholders' equity	$	4,360,200		$	4,221,874		$	4,708,147		$	3,993,618

Average balance sheet and net interest income	Three months ended September 30, 2018								Three months ended September 30, 2017
	(dollars in thousands)

	Average					Average			Average					Average
Assets:	Balance			Interest		Rate			Balance			Interest		Rate
Interest earning assets:
Loans net of unearned fees and costs **	$	1,980,814		$	24,708		4.99	%	$	1,816,751		$	21,147		4.66	%
Leases - bank qualified*		19,343			346		7.16	%		20,787			419		8.06	%
Investment securities-taxable		1,362,529			10,906		3.20	%		1,235,615			8,847		2.86	%
Investment securities-nontaxable*		8,145			63		3.09	%		13,238			133		4.02	%
Interest earning deposits at Federal Reserve Bank		445,765			2,239		2.01	%		366,724			1,190		1.30	%
Federal funds sold and securities purchased under agreement to resell		64,186			480		2.99	%		65,008			371		2.28	%
Net interest earning assets		3,880,782			38,742		3.99	%		3,518,123			32,107		3.65	%

Allowance for loan and lease losses		(7,971	)							(6,961	)
Assets held for sale from discontinued operations		233,732			2,295		3.93	%		325,912			3,098		3.80	%
Other assets		141,204								235,070
	$	4,247,747							$	4,072,144

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	3,418,878		$	6,224		0.73	%	$	3,224,167		$	3,136		0.39	%
Savings and money market		419,121			1,466		1.40	%		439,688			552		0.50	%
Total deposits		3,837,999			7,690		0.80	%		3,663,855			3,688		0.40	%

Short-term borrowings		25,602			148		2.31	%		51,413			175		1.36	%
Securities sold under agreements to repurchase		160			-		0.00	%		189			-		0.00	%
Subordinated debentures		13,401			186		5.55	%		13,401			150		4.48	%
Total deposits and liabilities		3,877,162			8,024		0.83	%		3,728,858			4,013		0.43	%

Other liabilities		8,374								8,046
Total liabilities		3,885,536								3,736,904

Shareholders' equity		362,211								335,240
	$	4,247,747							$	4,072,144
Net interest income on tax equivalent basis*				$	33,013							$	31,192

Tax equivalent adjustment					86								193

Net interest income				$	32,927							$	30,999
Net interest margin *							3.22	%							3.26	%

* Full taxable equivalent basis, using a statutory rate of 21% for 2018 and 35% for 2017.
** Includes loans held for sale.

Average balance sheet and net interest income	Nine months ended September 30, 2018								Nine months ended September 30, 2017
	(dollars in thousands)

	Average					Average			Average					Average
Assets:	Balance			Interest		Rate			Balance			Interest		Rate
Interest earning assets:
Loans net of unearned fees and costs **	$	1,918,950		$	69,451		4.83	%	$	1,740,655		$	58,266		4.46	%
Leases - bank qualified*		20,192			1,017		6.72	%		21,167			1,231		7.75	%
Investment securities-taxable		1,391,175			31,375		3.01	%		1,269,922			26,990		2.83	%
Investment securities-nontaxable*		8,907			201		3.01	%		14,423			351		3.24	%
Interest earning deposits at Federal Reserve Bank		468,691			6,166		1.75	%		532,223			3,961		0.99	%
Federal funds sold and securities purchased under agreement to resell		64,234			1,369		2.84	%		60,119			931		2.06	%
Net interest earning assets		3,872,149			109,579		3.77	%		3,638,509			91,730		3.36	%

Allowance for loan and lease losses		(7,378	)							(6,793	)
Assets held for sale from discontinued operations		269,857			6,888		3.40	%		337,102			9,594		3.79	%
Other assets		197,114								251,629
	$	4,331,742							$	4,220,447

Liabilities and Shareholders' Equity:
Deposits:
Demand and interest checking	$	3,463,756		$	15,547		0.60	%	$	3,433,027		$	8,836		0.34	%
Savings and money market		469,511			2,751		0.78	%		434,768			1,718		0.53	%
Total deposits		3,933,267			18,298		0.62	%		3,867,795			10,554		0.36	%

Short-term borrowings		17,367			261		2.00	%		19,498			197		1.35	%
Securities sold under agreements to repurchase		178			-		0.00	%		245			-		0.00	%
Subordinated debentures		13,401			524		5.21	%		13,401			432		4.30	%
Total deposits and liabilities		3,964,213			19,083		0.64	%		3,900,939			11,183		0.38	%

Other liabilities		9,517								431
Total liabilities		3,973,730								3,901,370

Shareholders' equity		358,012								319,077
	$	4,331,742							$	4,220,447
Net interest income on tax equivalent basis*				$	97,384							$	90,141

Tax equivalent adjustment					256								554

Net interest income				$	97,128							$	89,587
Net interest margin *							3.15	%							3.02	%

* Full taxable equivalent basis, using a statutory rate of 21% for 2018 and 35% for 2017.
** Includes loans held for sale.

Allowance for loan and lease losses:	Nine months ended						Year ended
	September 30,			September 30,			December 31,
	2018			2017			2017
	(dollars in thousands)

Balance in the allowance for loan and lease losses at beginning of period (1)	$	7,096		$	6,332		$	6,332

Loans charged-off:
SBA non-real estate		1,081			344			1,171
SBA commercial mortgage		157			-			-
Direct lease financing		531			779			926
Other consumer loans		19			113			110
Total		1,788			1,236			2,207

Recoveries:
SBA non-real estate		46			12			18
SBA commercial mortgage		13			-			-
Direct lease financing		64			-			7
Other consumer loans		1			25			26
Total		124			37			51
Net charge-offs		1,664			1,199			2,156
Provision charged to operations		2,660			2,150			2,920

Balance in allowance for loan and lease losses at end of period	$	8,092		$	7,283		$	7,096
Net charge-offs/average loans		0.09	%		0.07	%		0.12	%
Net charge-offs/average loans (annualized)		0.11	%		0.09	%		0.12	%
Net charge-offs/average assets		0.04	%		0.03	%		0.05	%
(1) Excludes activity from assets held for sale from discontinued operations.

Loan portfolio:	September 30,			June 30,			December 31,			September 30,
		2018			2018			2017			2017
	(in thousands)

SBA non-real estate	$	74,408		$	75,141		$	70,379		$	71,094
SBA commercial mortgage		166,432			156,268			142,086			132,997
SBA construction		17,978			17,781			16,740			14,205
Total SBA loans		258,818			249,190			229,205			218,296
Direct lease financing		395,976			389,387			377,660			368,662
SBLOC		778,552			795,823			730,462			720,279
Other specialty lending		40,799			48,253			30,720			36,664
Other consumer loans		12,172			13,174			14,133			20,107
		1,486,317			1,495,827			1,382,180			1,364,008
Unamortized loan fees and costs		10,456			10,985			10,048			10,052
Total loans, net of deferred loan fees and costs	$	1,496,773		$	1,506,812		$	1,392,228		$	1,374,060

Small business lending portfolio:	September 30,			June 30,			December 31,			September 30,
		2018			2018			2017			2017
	(in thousands)

SBA loans, including deferred fees and costs		266,433			257,412			236,724			225,909
SBA loans included in HFS		193,372			182,072			165,177			160,855
Total SBA loans	$	459,805		$	439,484		$	401,901		$	386,764

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 September 30, 2018
The Bancorp, Inc.		9.64	%		24.05	%		24.53	%		24.05	%
The Bancorp Bank		9.19	%		23.47	%		23.94	%		23.47	%
"Well capitalized" institution (under FDIC regulations)		5.00	%		8.00	%		10.00	%		6.50	%

As of December 31, 2017
The Bancorp, Inc.		7.90	%		16.73	%		17.09	%		16.73	%
The Bancorp Bank		7.61	%		16.23	%		16.59	%		16.23	%
"Well capitalized" institution (under FDIC regulations)		5.00	%		8.00	%		10.00	%		6.50	%

	Three months ended						Nine months ended
	September 30,						September 30,
	2018			2017			2018			2017
Selected operating ratios:
Return on average assets ⁽¹⁾		5.72	%		0.71	%		2.52	%		1.08	%
Return on average equity ⁽¹⁾		67.12	%		8.62	%		30.46	%		14.29	%
Net interest margin		3.22	%		3.26	%		3.15	%		3.02	%

⁽¹⁾Annualized

Book value per share table:	September 30,			June 30,			December 31,			September 30,
		2018			2018			2017			2017
Book value per share	$	6.95		$	5.91		$	5.81		$	6.09


Loan quality table:	September 30,			June 30,			December 31,			September 30,
		2018			2018			2017			2017
Nonperforming loans to total loans⁽²⁾		0.35	%		0.42	%		0.30	%		0.39	%
Nonperforming assets to total assets ⁽²⁾		0.13	%		0.16	%		0.10	%		0.13	%
Allowance for loan and lease losses to total loans		0.54	%		0.53	%		0.51	%		0.53	%

Nonaccrual loans	$	4,234		$	4,915		$	3,996		$	4,953
Other real estate owned		405			405			450			-
Total nonperforming assets	$	4,639		$	5,320		$	4,446		$	4,953

Loans 90 days past due still accruing interest	$	1,015		$	1,459		$	227		$	354

⁽²⁾ Nonperforming loan and asset ratios include nonaccrual loans and loans 90 days past due still accruing interest.

	Three months ended
	September 30,			June 30,			December 31,			September 30,
		2018			2018			2017			2017
	(in thousands)
Gross dollar volume (GDV) ⁽³⁾:
Prepaid card GDV	$	12,525,527		$	12,799,531		$	10,963,456		$	10,970,085

⁽³⁾Gross dollar volume represents the total dollar amount spent on prepaid and debit cards issued by The Bancorp Bank.

Business line quarterly summary:
Quarter ended September 30, 2018
(dollars in millions)

				Balances									Non interest income
							% Growth									% Growth
Major business lines	Average approximate rates			Balances*			Year over year			Linked quarter annualized			Current quarter			Year over year
Loans
Institutional banking **		4.1	%		$	779		8	%		-9	%	nm			nm
SBA		5.4	%			460		19	%		18	%	na			na
Leasing		6.2	%			396		7	%		7	%			0.8		8	%
Commercial real estate securitization		5.9	%			115	nm			nm					9.0	nm
Weighted average yield		5.0	%		$	1,750

Deposits
Payment solutions (primarily prepaid)		0.9	%		$	2,114		10	%	nm				$	13.2		6	%
Card payment and ACH processing		0.7	%			876		2	%	nm					2.3		46	%

* Loan categories based on period end balance and Payment Solutions based on average quarterly balances.
** Comprised of SBLOC 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 - 2017		(42	)		(42	)
2018 Marks		(3	)		(3	)
Payments received		(84	)
September 30, 2018 Bancorp book value**	$	64

Total marks				$	(103	)
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 Bank's investment in a securitization of certain loans from the Bank’s discontinued loan portfolio.
** Approximately 45% of expected principal recoveries are from loans and properties pending liquidation or other resolution as of September 30, 2018.

Walnut Street portfolio composition as of September 30, 2018

Collateral type	% of Portfolio
Commercial real estate non-owner occupied
Retail		49.3	%
Office		12.8	%
Other		3.8	%
Construction and land		23.0	%
Commercial non real estate and industrial		0.6	%
First mortgage residential owner occupied		6.2	%
First mortgage residential non-owner occupied		3.5	%
Other		0.8	%
Total		100.0	%

Cumulative analysis of marks on discontinued commercial loan principal as of September 30, 2018

	Discontinued		Cumulative		% to original
	loan principal		marks		principal
	(dollars in millions)

Commercial loan discontinued principal before marks	$	149	$	-
Florida mall held in discontinued other real estate owned		42		27
Previous mark charges		14		14
Commercial loan mark at September 30, 2018		-		8
Total	$	205	$	49	24%

Analysis of discontinued commercial loan relationships as of September 30, 2018

		Performing loan principal			Nonperforming loan principal		Total loan principal		Performing loan marks		Nonperforming loan marks		Total marks
	(in millions)

7 loan relationships > $7 million		$	80	$	23	$	103	$	3	$	2	$	5
Loan relationships < $7 million			35		3		38		2		1		3
		$	115	$	26	$	141	$	5	$	3	$	8

Quarterly activity for discontinued commercial loan principal

	Commercial
	loan principal
	(in millions)

Commercial loan discontinued principal, June 30, 2018 before marks	$	167
Quarterly paydowns		(10	)
Quarterly charge downs		(8	)
Commercial loan discontinued principal, September 30, 2018 before marks	$	149
Marks, September 30, 2018		(8	)
Net commercial loan exposure, September 30, 2018	$	141
Residential mortgages		55
Net loans	$	196
Florida mall in other real estate owned		15
Other 21 properties in other real estate owned		14
Other assets related to discontinued operations		1
Total discontinued assets at September 30, 2018	$	226

Discontinued commercial loan composition September 30, 2018

Collateral type	Unpaid principal balance			Mark September 30, 2018		Mark as % of portfolio
	(dollars in millions)
Commercial real estate - non-owner occupied:
Retail	$	7		$	0.6		9	%
Office		5			0.1		2	%
Other		38			1.7		5	%
Construction and land		43			0.2		-
Commercial non-real estate and industrial		11			0.7		6	%
1 to 4 family construction		22			3.5		16	%
First mortgage residential non-owner occupied		12			0.4		3	%
Commercial real estate owner occupied:
Retail		9			0.3		-
Office		-			-		-
Other		-			-		-
Residential junior mortgage		1			-		-
Other		1			-		-
Total	$	149
Less: mark		(8	)
Net commercial loan exposure, September 30, 2018	$	141		$	7.5		5	%

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Material Contracts, Statements, Certifications & more

Bancorp, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 99.1: Additional Exhibits

Ticker: TBBK
CIK: 1295401
Form Type: 8-K Corporate News
Accession Number: 0000950159-18-000454
Submitted to the SEC: Thu Oct 25 2018 4:40:42 PM EST
Accepted by the SEC: Thu Oct 25 2018
Period: Thursday, October 25, 2018
Industry: National Commercial Banks