The Bancorp, Inc. Reports Third Quarter 2005 Earnings

October 25, 2005

WILMINGTON, Del.--(BUSINESS WIRE)--Oct. 25, 2005--The Bancorp, Inc. ("Bancorp") (Nasdaq NM:TBBK)

    Financial highlights:

    --  Return on average assets for the three months ended September
        30, 2005 increased to 1.22% from 0.66% at September 30, 2004

    --  Loans increased $265.4 million or 76.4% from September 30,
        2004

    --  Total assets grew to $838.8 million an increase of $306.5
        million from September 30, 2004

Bancorp, a financial holding company, reported net income available to common shareholders for the three months ended September 30, 2005 of $1.7 million, or $0.12 diluted earnings per share, including a non-recurring expense of $459,000 ($0.04 per diluted share) related to a preferred stock conversion dividend, compared to net income available to common shareholders of $609,000, or $0.05 diluted earnings per share, for the three months ended September 30, 2004. Bancorp reported net income available to common shareholders for the nine months ended September 30, 2005 of $3.7 million, or $0.28 diluted earnings per share, including non-recurring expenses of $1.3 million ($0.06 per diluted share) related to the early redemption of trust preferred subordinated debt and $459,000 ($0.04 per diluted share) related to preferred stock conversion dividends, compared to net income available to common shareholders for the nine months ended September 30, 2004 of $1.0 million, or $0.10 diluted earnings per share.

At September 30, 2005, Bancorp's total assets were $838.8 million, an increase of $262.6 million or 45.6% from December 31, 2004. Loans grew to $612.7 million an increase of $184.8 million or 43.2% from those of December 31, 2004, and deposits grew to $657.7 million, an increase of $269.6 million or 69.5% during the same period. Total common shares outstanding were 13,958,935 at September 30, 2005 and 11,888,061 at December 31, 2004.

Conference Call Webcast

Interested parties can access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 8:30 AM EDT on Wednesday, October 26, 2005 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. For those who are not available to listen to the live broadcast, the replay of the webcast will be available following the live call on Bancorp's investor relations website and telephonically until Wednesday, November 2, 2005 by dialing 888-286-8010, access code 93639922.

About The Bancorp, Inc.

The Bancorp, Inc. is a bank holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity partner programs nationwide. The Bancorp Bank, through Philadelphia Private Bank, its regional community bank division, serves the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.

The Bancorp, Inc.
                         Financial highlights
                              (unaudited)

                     Three months ended        Nine months ended
                        September 30,            September 30,
                      2005        2004          2005       2004
                   ----------- -----------   ----------- ----------
                     (dollars in thousands except per share data)

Condensed income
 statement
Net interest income    $8,755      $4,766       $22,587    $12,150
Provision for loan
 and lease losses         550         250         1,600        982
Non-interest income       970         744         3,275      2,163
Non-interest
 expense                5,670       4,431        15,790     11,555
                   ----------- -----------   ----------- ----------
Net income from
 operations             3,505         829         8,472      1,776
Payment expense from
 redemption of trust
 preferred
 subordinated debt          -           -        (1,285)         -
                   ----------- -----------   ----------- ----------
Net income before
 income tax expense     3,505         829         7,187      1,776
Income tax expense      1,199           -         2,433          -
                   ----------- -----------   ----------- ----------
Net income              2,306         829         4,754      1,776
Less preferred
 stock dividends
 and accretion           (171)       (149)         (579)      (600)
Income allocated to
 Series A preferred
 shareholders             (21)        (71)          (45)      (152)
Less preferred
 stock conversion
 dividend                (459)          -          (459)         -
                   ----------- -----------   ----------- ----------
Net income
 available to
 common
 shareholders          $1,655        $609(1)     $3,671     $1,024(1)
                   =========== ===========   =========== ==========

Basic earnings per
 share net of
 preferred stock
  conversion
   dividend             $0.16       $0.05         $0.33      $0.10
                   =========== ===========   =========== ==========
Basic earnings per
 share from
 preferred stock
  conversion
   dividend            $(0.04)         $-        $(0.04)        $-
                   =========== ===========   =========== ==========
Basic earnings per
 share                  $0.12       $0.05         $0.29      $0.10
                   =========== ===========   =========== ==========

Diluted earnings
 per share net of
 preferred stock
  conversion
   dividend             $0.16       $0.05         $0.32      $0.10
                   =========== ===========   =========== ==========
Diluted earnings
 per share from
 preferred stock
  conversion
   dividend            $(0.04)         $-        $(0.04)        $-
                   =========== ===========   =========== ==========
Diluted earnings
 per share              $0.12       $0.05         $0.28      $0.10
                   =========== ===========   =========== ==========
Weighted average
 shares - basic    12,917,879  11,617,580(2) 12,540,093  9,774,875(2)
Weighted average
 shares - diluted  13,426,497  11,712,362(2) 12,948,421  9,823,047(2)




                    Sept. 30,   June 30,      Dec. 31,   Sept. 30,
                      2005        2005          2004       2004
                   ----------- -----------   ----------- ----------
Condensed balance
 sheet
Assets
Federal funds sold    $85,811      $4,858        $8,291    $53,604
Investment
 securities           105,888     107,860       120,252    113,810
Loans                 612,712     556,421       427,881    347,275
Allowance for loan
 and lease losses      (5,075)     (4,610)       (3,593)    (2,955)
Other assets           39,493      72,437        23,448     20,561
                   ----------- -----------   ----------- ----------
Total assets         $838,829    $736,966      $576,279   $532,295
                   =========== ===========   =========== ==========

Liabilities and
 shareholders'
 equity
Transaction
 accounts            $381,941    $323,972      $205,249   $221,942
Time deposits         275,762     233,094       182,832    137,109
                   ----------- -----------   ----------- ----------
Total deposits        657,703     557,066       388,081    359,051
Other borrowings       45,546      45,252        60,052     47,372
Trust preferred
 subordinated debt          -           -         5,413      5,413
Other liabilities       2,487       3,964         1,331      1,119
Shareholder's
 equity               133,093     130,684       121,402    119,340(3)
                   ----------- -----------   ----------- ----------
Total liabilities
 and shareholders'
 equity              $838,829    $736,966      $576,279   $532,295
                   =========== ===========   =========== ==========



                      Third      Second        Fourth      Third
                     quarter     quarter       quarter     quarter
Average condensed    average     average       average    average
 balance sheet        2005        2005          2004        2004
                   ----------- -----------   ----------- ----------
Assets
Federal funds sold    $43,474     $65,345       $36,749    $35,422
Investment
 securities           107,112     105,558       116,518    113,523
Loans                 583,119     530,003       383,800    332,736
Allowance for loan
 and lease losses      (4,805)     (4,278)       (3,050)    (2,844)
Other assets           28,398      37,173        18,839     20,117
                   ----------- -----------   ----------- ----------
Total assets         $757,298    $733,801      $552,856   $498,954
                   =========== ===========   =========== ==========

Liabilities and
 shareholders'
 equity
Transaction
 accounts            $335,499    $347,151      $228,990   $208,366
Time deposits         239,013     212,781       150,291    132,192
                   ----------- -----------   ----------- ----------
Total deposits        574,512     559,932       379,281    340,558
Other borrowings       48,178      43,322        47,769     38,883
Trust preferred             -           -         5,413          -
Guaranteed
 preferred interest
 in Company's
  subordinated debt         -           -             -      5,250
Other liabilities       2,109       3,324           392        968
Shareholders'
 equity               132,499     127,223       120,001    113,295
                   ----------- -----------   ----------- ----------
Total liabilities
 and shareholders'
 equity              $757,298    $733,801      $552,856   $498,954
                   =========== ===========   =========== ==========



                    Sept. 30,   June 30,      Dec. 31,    Sept. 30,
                      2005        2005          2004        2004
Loan Portfolio       Amount      Amount        Amount      Amount
                   ----------- -----------   ----------- ----------

Commercial            $98,067     $96,775       $89,327    $58,082
Commercial mortgage   187,040     167,185       140,755    122,731
Construction          156,442     133,962        97,239     78,461
                   ----------- -----------   ----------- ----------
Total commercial
 loans                441,549     397,922       327,321    259,274
Direct financing
 leases, net           74,895      73,863        44,795     42,860
Residential
 mortgage              46,183      47,115        31,388     26,980
Consumer loans and
 others                50,928      38,205        24,894     18,198
                   ----------- -----------   ----------- ----------
                      613,555     557,105       428,398    347,312
Unamortized costs        (843)       (684)         (517)       (37)
                   ----------- -----------   ----------- ----------
Total loans, net of
 unamortized fees
 and costs           $612,712    $556,421      $427,881   $347,275
                   =========== ===========   =========== ==========




                     Three months ended        Nine Months ended
                        September 30,            September 30,
                      2005        2004          2005       2004
                   ----------- -----------   ----------- ----------
Selected operating
 ratios
Return on average
 assets                  1.22%       0.66%         0.90%      0.54%
Return on average
 equity                  6.96%       2.93%         5.16%      2.47%
Net interest margin      4.77%       3.95%         4.47%      3.79%
Efficiency ratio         58.3%       80.4%         61.1%      80.7%
Book value per
 share                  $9.70       $9.18         $9.70      $9.18



                   As of or for the period
                            ended
                        September 30,
Asset quality
 ratios               2005        2004
                   ----------- -----------
Nonperforming loans
 to total loans          0.04%       0.06%
Nonperforming
 assets to total
 assets                  0.03%       0.04%
Allowance for loan
 and lease losses
 to total loans          0.83%       0.85%
Nonaccrual loans           $-          $-
Loans 90 days past
 due still accruing
 interest                $247        $205

(1) The September 30, 2004 net income reflects the December 2004
    reorganization by eliminating the minority interest previously
    presented.

(2) The September 30, 2004 earnings per share and book value
    calculations include the shares issued in The Bancorp Bank's
    public offering in February 2004. These shares were issued by The
    Bancorp, Inc. in December 2004 upon the completion of our
    reorganization.

(3) The September 30, 2004 shareholders' equity includes the funds
    raised from The Bancorp Bank's public offering in February 2004.
    These funds were contributed in December 2004 to The Bancorp, Inc.
    upon completion of our reorganization.

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

    SOURCE: The Bancorp, Inc.