The Bancorp, Inc. Reports First Quarter 2009 Results

April 27, 2009

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. ("Bancorp") (Nasdaq:TBBK), a financial holding company, today reported results for the quarter ended March 31, 2009.

First Quarter 2009 financial highlights:

    --  Transaction deposit accounts increased 62% over the first quarter of
        2008 and 18% over December 31, 2008 to $1.3 billion
    --  Transaction deposit accounts were 91% of total deposits at March 31,
        2009
    --  Health Savings Account (HSA) deposits increased to $261.9 million, a
        23.9% increase from December 31, 2008 and a 91.8% increase from March
        31, 2008
    --  Loans increased 1.5% to $1.47 billion from December 31, 2008
    --  The allowance for loan and lease losses to total loans increased to
        1.29% at March 31, 2009 from 0.83% at March 31, 2008

Financial Results

Bancorp reported a net income available to common shareholders for the three months ended March 31, 2009 of $363,000, or earnings per share - diluted of $0.03, after preferred dividends and accretion of $847,000, based on 14,563,919 diluted shares, compared to net income available to common shareholders of $2.8 million, or $0.19 diluted earnings per share, after preferred dividends and accretion of $17,000, based on 14,669,003 diluted shares, for the three months ended March 31, 2008.

Balance Sheet Summary

At March 31, 2009, Bancorp's total assets were $1.77 billion, a decrease of $25.3 million or 1.4% from December 31, 2008. Loans grew to $1.47 billion, an increase of $22.2 million or 1.5% from those of December 31, 2008, and deposits decreased to $1.48 billion, a decrease of $43.4 million or 2.9%, from deposits at December 31, 2008. Total common shares outstanding were 14,563,919 at March 31, 2009 and December 31, 2008 respectively.

Conference Call Webcast

Interested parties can access the LIVE webcast of Bancorp's Quarterly Earnings Conference Call at 9:00 AM EDT on Tuesday, April 28, 2009 by clicking on the webcast link on Bancorp's homepage at www.thebancorp.com. The conference call may also be listened to by dialing 866.730.5762 using access code 48067260. 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 Tuesday, May 5, 2009 by dialing 888.286.8010, access code 71976011.

About Bancorp

The Bancorp, Inc. is a financial 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's 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

                   March 31,       March 31,       December 31,

                     2009            2008            2008

                   (dollars in thousands except per share data)

Condensed income
statement

Net interest       $ 14,916        $ 12,896        $ 14,905
income

Provision for
loan and lease       3,000           1,350           3,700
losses

Non-interest         3,329           3,476           3,111
income

Other than
temporary
impairment of        -               -               (11,611    )
investment
securities

Impairment of        -               -               51,888
goodwill

Non-interest         13,254          10,362          12,254
expense

Net income (loss)
before income tax    1,991           4,660           (61,437    )
expense

Income tax           781             1,833           (20,242    )
expense (benefit)

Net income (loss)    1,210           2,827           (41,195    )

Less preferred
stock dividends      (847       )    (17        )    (202       )
and accretion

Income allocated
to Series A          -               (21        )    -
preferred
shareholders

Net income (loss)
available to       $ 363           $ 2,789         $ (41,397    )
common
shareholders

Basic earnings     $ 0.03          $ 0.19          $ (2.84      )
(loss) per share

Diluted earnings   $ 0.03          $ 0.19          $ (2.84      )
(loss) per share

Weighted average     14,563,919      14,561,640      14,563,919
shares - basic

Weighted average     14,563,919      14,669,003      14,563,919
shares - diluted

                   March 31,       December 31,    September 30    March 31,

                     2009            2008            2008            2008

Condensed balance
sheet

Assets

Federal funds      $ 18,114        $ 87,729        $ 36,485        $ 45,714
sold

Investment           109,580         106,458         116,106         127,962
securities

Loans                1,471,556       1,449,349       1,469,615       1,362,653

Allowance for
loan and lease       (18,977    )    (17,361    )    (15,468    )    (11,328   )
losses

Other assets         186,799         166,200         174,204         122,453

Total assets       $ 1,767,072     $ 1,792,375     $ 1,780,942     $ 1,647,454

Liabilities and
shareholders'
equity

Transaction        $ 1,345,398     $ 1,144,515     $ 1,069,945     $ 829,611
accounts

Time deposits        136,526         380,847         389,184         425,159

Total deposits       1,481,924       1,525,362       1,459,129       1,254,770

Short-term           89,364          70,419          131,499         192,658
borrowings

Subordinated debt    13,401          13,401          13,401          13,401

Other liabilities    1,221           2,790           4,149           6,437

Shareholders'        181,162         180,403         172,764         180,188
equity

Total liabilities
and shareholders'  $ 1,767,072     $ 1,792,375     $ 1,780,942     $ 1,647,454
equity



                      First          Fourth         Third          First

                      quarter        quarter        quarter        quarter

Average condensed     average 2009   average 2008   average 2008   average 2008
balance sheet

Assets

Federal funds sold    $ 98,215       $ 37,634       $ 82,984       $ 28,708

Investment              109,761        116,816        115,814        122,161
securities

Loans                   1,457,084      1,460,204      1,444,000      1,330,566

Allowance for loan      (17,878   )    (15,853   )    (14,808   )    (10,928   )
and lease losses

Other assets            169,816        178,834        164,891        124,654

Total assets          $ 1,816,998    $ 1,777,635    $ 1,792,881    $ 1,595,161

Liabilities and
shareholders' equity

Transaction accounts  $ 1,378,343    $ 1,050,658    $ 961,358      $ 886,567

Time deposits           216,494        397,009        554,142        392,594

Total deposits          1,594,837      1,447,667      1,515,500      1,279,161

Short- term             26,719         125,596        84,599         122,083
borrowings

Other borrowings        13,401         13,401         13,401         13,004

Other liabilities       1,454          7,090          5,842          3,515

Shareholders' equity    180,587        183,881        173,539        177,398

Total liabilities
and shareholders'     $ 1,816,998    $ 1,777,635    $ 1,792,881    $ 1,595,161
equity

Loan Portfolio

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

                        2009           2008           2008           2008

                      Amount         Amount         Amount         Amount

Commercial            $ 348,765      $ 353,219      $ 354,575      $ 324,824

Commercial mortgage     506,337        488,986        478,534        419,764

Construction            309,411        305,889        332,091        348,133

Total commercial        1,164,513      1,148,094      1,165,200      1,092,721
loans

Direct financing        83,326         85,092         87,710         87,772
leases

Residential mortgage    60,282         57,636         63,472         48,764

Consumer loans and      161,945        157,446        151,876        132,671
others

                        1,470,066      1,448,268      1,468,258      1,361,928

Unamortized costs       1,490          1,081          1,357          725
(fees)

Total loans, net of
unamortized fees and  $ 1,471,556    $ 1,449,349    $ 1,469,615    $ 1,362,653
costs

Supplemental loan
data :

Construction 1-4      $ 159,148      $ 163,718      $ 158,310      $ 177,843
family

Construction
commercial,             150,263        142,171        173,781        170,290
acquisition and
development

                      $ 309,411      $ 305,889      $ 332,091      $ 348,133



                              March 31,   March 31,

                                2009        2008

Selected operating ratios

Return on average assets        0.27   %    0.71  %

Return on average equity        2.68   %    6.37  %

Net interest margin             3.58   %    3.45  %

Efficiency ratio                72.64  %    63.29 %

Book value per share (1)      $ 9.27      $ 12.28

(1) Excludes Series B
Preferred Shares

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

                                2009        2008          2008           2008

Asset quality ratios

Nonperforming loans to total    1.72   %    0.88  %       0.95   %       0.70  %
loans

Nonperforming assets to         1.69   %    0.97  %       0.78   %       0.58  %
total assets

Allowance for loan and lease    1.29   %    1.20  %       1.05   %       0.83  %
losses to total loans

Nonaccrual loans              $ 11,949    $ 8,729       $ 13,637       $ 8,488

Loans 90 days past due still  $ 13,362    $ 4,055       $ 331          $ 985
accruing interest

Other real estate owned       $ 4,600     $ 4,600       $ -            $ -



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