The Bancorp, Inc. Reports Second Quarter 2009 Results

July 23, 2009

WILMINGTON, Del.--(BUSINESS WIRE)-- The Bancorp, Inc. ("Bancorp") (NASDAQ:TBBK), a financial holding company, today reported results for the quarter ended June 30, 2009.

Second Quarter 2009 financial highlights:

    --  Transaction accounts increased 67% over the second quarter of 2008 and
        15% over December 31, 2008 to $1.3 billion.
    --  Transaction accounts total 88% of total deposits at June 30, 2009.
    --  Time deposits decreased 67% from the second quarter of 2008 and 54% from
        December 31, 2008.
    --  Construction loans decreased 16% from December 31, 2008 to $255.5
        million at June 30, 2009.
    --  The net interest margin increased to 3.96% for the second quarter of
        2009 as compared to 3.34% for the second quarter of 2008.

Financial Results

Bancorp reported a net income available to common shareholders for the three months ended June 30, 2009 of $125,000 or earnings per share - diluted of $0.01, based on 15,351,843 weighted average shares outstanding, compared to net loss available to common shareholders of $4.3 million or a total loss per share - diluted of $0.29, based on 14,563,218 weighted average shares outstanding, for the three months ended June 30, 2008. For the six months ended June 30, 2009, Bancorp reported net income available to common shareholders of $488,000 or earnings per share - diluted of $0.03, based on 15,035,205 weighted average shares outstanding, compared to a net loss of $1.5 million or a total loss per share - diluted of $0.10, based on 14,562,434 weighted average shares outstanding.

Balance Sheet Summary

At June 30, 2009, Bancorp's total assets were $1.732 billion, a decrease of $60.8 million or 3.3% from December 31, 2008. Loans grew to $1.46 billion, an increase of $10.6 million or 0.7% from those of December 31, 2008, and deposits decreased to $1.49 billion, a decrease of $34.9 million or 2.3%, from deposits at December 31, 2008. Total common shares outstanding were 14,563,919 at June 30, 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 Friday, July 24, 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 888.396.2356 using access code 26068769. 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 Friday, July 31, 2009 by dialing 888.286.8010, access code 54109315.

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              Six months ended

               June 30,                        June 30,

               2009            2008            2009            2008

               (dollars in thousands except    (dollars in thousands except per
               per share data)                 share data)

Condensed
income
statement

Net interest   $ 15,969        $ 12,921        $ 30,885        $ 25,817
income

Provision for
loan and         2,500           3,350           5,500           4,700
lease losses

Non-interest
income

Other than
temporary
impairment of    -               (8,275     )    -               (8,275     )
investment
securities

Other
non-interest     3,803           3,024           7,131           6,500
income

Total
non-interest     3,803           (5,251     )    7,131           (1,775     )
income

Non-interest
expense

Loss on other
real estate      1,700           -               1,700           -
owned

FDIC special     775             -               775             -
assessment

Other
non-interest     13,058          11,210          26,311          21,572
expense

Total
non-interest     15,533          11,210          28,786          21,572
expense

Net income
(loss) before    1,739           (6,890     )    3,730           (2,230     )
income tax
expense

Income tax
expense          632             (2,619     )    1,413           (785       )
(benefit)

Net income       1,107           (4,271     )    2,317           (1,445     )
(loss)

Less
preferred        (581       )    (16        )    (1,163     )    (33        )
stock
dividends

Less
preferred        (401       )    -               (666       )    -
stock
accretion

Loss
allocated to
Series A         -               31              -               10
preferred
shareholders

Net income
(loss)
available to   $ 125           $ (4,256     )  $ 488           $ (1,468     )
common
shareholders

Basic
earnings       $ 0.01          $ (0.29      )  $ 0.03          $ (0.10      )
(loss) per
share

Diluted
earnings       $ 0.01          $ (0.29      )  $ 0.03          $ (0.10      )
(loss) per
share

Weighted
average          14,563,919      14,563,218      14,563,919      14,562,434
shares -
basic

Weighted
average          15,351,843      14,563,218      15,035,205      14,562,434
shares -
diluted

               June 30,        March 31,       December 31,    June 30,

               2009            2009            2008            2008

Condensed
balance sheet

Assets

Federal funds  $ 12,102        $ 18,114        $ 87,729        $ 18,047
sold

Investment       143,323         109,580         106,458         118,897
securities

Loans            1,459,965       1,471,556       1,449,349       1,427,578

Allowance for
loan and         (18,080    )    (18,977    )    (17,361    )    (14,245    )
lease losses

Other assets     134,268         186,799         166,200         127,129

Total assets   $ 1,731,578     $ 1,767,072     $ 1,792,375     $ 1,677,406

Liabilities
and
shareholders'
equity

Transaction    $ 1,314,177     $ 1,345,397     $ 1,144,515     $ 786,785
accounts

Time deposits    176,308         136,526         380,847         527,582

Total            1,490,485       1,481,923       1,525,362       1,314,367
deposits

Short-term       43,394          89,364          70,419          172,005
borrowings

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

Other            3,019           1,222           2,790           4,970
liabilities

Shareholder's    181,279         181,162         180,403         172,663
equity

Total
liabilities
and            $ 1,731,578     $ 1,767,072     $ 1,792,375     $ 1,677,406
shareholders'
equity



                      Second         First          Fourth         Second

                      quarter        quarter        quarter        quarter

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

Assets

Federal funds sold    $ 23,068       $ 98,215       $ 37,634       $ 21,566

Investment              135,102        109,761        116,816        127,544
securities

Loans                   1,470,347      1,457,084      1,460,204      1,396,421

Allowance for loan      (19,474   )    (17,878   )    (15,853   )    (11,875   )
and lease losses

Other assets            140,054        169,816        178,834        116,715

Total assets          $ 1,749,097    $ 1,816,998    $ 1,777,635    $ 1,650,371

Liabilities and
shareholders' equity

Transaction accounts  $ 1,285,252    $ 1,378,343    $ 1,050,658    $ 799,675

Time deposits           170,251        216,494        397,009        476,468

Total deposits          1,455,503      1,594,837      1,447,667      1,276,143

Short-term              96,384         26,719         125,596        172,693
borrowings

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

Other liabilities       1,192          1,454          7,090          6,626

Shareholders' equity    182,617        180,587        183,881        181,508

Total liabilities
and shareholders'     $ 1,749,097    $ 1,816,998    $ 1,777,635    $ 1,650,371
equity

Loan Portfolio

                      June 30,       March 31,      December 31,   June 30,

                      2009           2009           2008           2008

                      Amount         Amount         Amount         Amount

Commercial            $ 363,524      $ 348,765      $ 353,219      $ 341,304

Commercial mortgage     522,510        506,337        488,986        461,170

Construction            255,504        309,411        305,889        332,088

Total commercial        1,141,538      1,164,513      1,148,094      1,134,562
loans

Direct financing        80,774         83,326         85,092         90,201
leases

Residential mortgage    64,934         60,282         57,636         52,389

Consumer loans and      170,999        161,945        157,446        149,186
others

                        1,458,245      1,470,066      1,448,268      1,426,338

Unamortized costs       1,720          1,490          1,081          1,240
(fees)

Total loans, net of
unamortized fees and  $ 1,459,965    $ 1,471,556    $ 1,449,349    $ 1,427,578
costs

Supplemental loan
data :

Construction 1-4      $ 124,443      $ 159,148      $ 163,718      $ 174,196
family

Construction
commercial,             131,061        150,263        142,171        157,892
acquisition and
development

                      $ 255,504      $ 309,411      $ 305,889      $ 332,088

                      Three months ended            Six months ended

                      June 30,                      June 30,

                      2009           2008           2009           2008

Selected operating
ratios

Return on average       0.25      %    -1.04     %    0.26      %    -0.18     %
assets

Return on average       2.42      %    -9.41     %    2.55      %    -1.61     %
equity

Net interest margin     3.96      %    3.34      %    3.77      %    3.41      %

Efficiency ratio        81.32     %    70.30     %    77.08     %    66.75     %

Book value per share  $ 9.27         $ 11.77        $ 9.27         $ 11.77
(1)

(1) Excludes Series B Preferred Shares issued to the US Treasury and the
associated book value



                               June 30,    March 31,   December 31,  June 30,

                               2009        2009        2008          2008

Asset quality ratios

Nonperforming loans to total     2.09   %    1.72   %    0.88  %       0.74   %
loans

Nonperforming assets to total    1.76   %    1.69   %    0.97  %       0.63   %
assets

Allowance for loan and lease     1.24   %    1.29   %    1.20  %       1.00   %
losses to total loans

Nonaccrual loans               $ 8,716     $ 11,949    $ 8,729       $ 10,053

Loans 90 days past due still   $ 21,779    $ 13,362    $ 4,055       $ 492
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