#1THE BANCORP INVESTOR PRESENTATION OCTOBER 29th, 2020 Par The Bancorp#22 The Bancorp DISCLOSURES FORWARD LOOKING STATEMENTS & OTHER DISCLOSURES Statements in this presentation regarding The Bancorp, Inc.'s business that are not historical facts are "forward-looking statements". These statements may be identified by the use of forward-looking terminology, including the words "may," "believe," "will," "expect," "anticipate," "estimate," "intend," "plan," 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. These risks and uncertainties include those relating to the on-going COVID-19 pandemic, the impact it will have on the company's business and the industry as a whole, and the resulting governmental and societal responses. For further discussion of these risks and uncertainties, see the "risk factors" sections contained, in The Bancorp, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019 and in its other public filings with the SEC. In addition, these forward-looking statements are based upon assumptions with respect to future strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements. The forward-looking statements speak only as of the date of this presentation. The Bancorp, Inc. does not undertake to publicly revise or update forward-looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law. This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States ("GAAP"). This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third-party service providers. The Bancorp, Inc. makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of such information. Past performance is not indicative nor a guarantee of future results. Copies of the documents filed by The Bancorp, Inc. with the SEC are available free of charge from the website of the SEC at www.sec.gov as well as on The Bancorp, Inc.'s website at www.thebancorp.com. This presentation is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Neither the SEC nor any other regulatory body has approved or disapproved of the securities of The Bancorp, Inc. or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense.#3The Bancorp KEY PLAYER IN THE PAYMENTS & BANKING ECOSYSTEM ACROSS OUR BUSINESS LINES, THE BANCORP PARTNERS WITH SOME OF THE WORLD'S MOST SUCCESSFUL COMPANIES Alegeus CARD.COM TECHNOLOGIES brightwell ASSETMARK. DISCOVER NETWORK Betterment SoFi intuIT. Heartland A ACI First Data chime FRANKLIN TEMPLETON payment systems FSV PAYMENT SYSTEMS LPL Financial INVESTMENTS fiserv. EPX EMERGING PAYMENTS ASSOCIATION Expensify X xpenditure FIS $6.2 B IN ASSETS >100MM PREPAID CARDS IN U.S. DISTRIBUTION mastercard. H HealthEquity Building Health Savings" HYPERWALLET incomm PEX SEI New ways. New answers. GALILEO PayPal KESTRA FINANCIAL ENVESTNET* YODLEE' NorthAmerican BANCARD 1 PREPAID CARD ISSUING BANK1 NETSPEND > paymerang daVinci VISA PAYMENTS Varo WageWorks W wex Health 3 1 Per Nilsen Ratings and measured by Gross Dollar Volume.#4The Bancorp ESTABLISHED EARNINGS MOMENTUM WE HAVE NOW RECORDED 15 STRAIGHT QUARTERS OF POSITIVE PRE-TAX INCOME KEYS TO EARNINGS GROWTH & SUSTAINABILITY Clear strategic vision ✓ Strong growth from core business Investments in technology/innovation ✓ Consistent execution of business plan $45 PRE-TAX INCOME ($MILLIONS) $82.9 $40 $35 $30 $65M Gain from sale of Safe Harbor IRA. $25 $20 $19.6 $17.9 $15 $13.0 $13.1 $9.7 $10 $8.7 $8.3 $10.5 $24.2 $15.1 ili $28.5 $5.1 $16.7 $5 $0 Q 1 Q 2 Q 3 Q 4 Q 1 Q2 Q 3 Q 4 Q 1 Q2 Q 3 Q 41 Q 1 2018 2017 $0.39 EPS $1.55 EPS 2019 $0.90 EPS $26.8 Q2 $29.4 Q3 2020 YEAR TO DATE RESULTS Q3 2020 YTD $0.96 EPS Q3 14%.RO 1.3% ... ROE ...ROA 4 104 2019 pre-tax income excluding $7.5 million civil money penalty was $12.6 million.#5The Bancorp STRATEGIC PLAN: 2021 GUIDANCE OUR BUSINESS PLAN OUTLINES THE PATH TO EXPAND OUR LEADERSHIP AMONG PEER BANKS AND IN THE PAYMENTS INDUSTRY $1.75 EARNINGS PER SHARE $1.55 $1.50 $1.25 $1.00 $0.75 $0.50 $0.39 $0.25 $0.96 $0.90 $1.70 Target EPS Range $1.65 - $1.70 $0.00 2017 2018 2019 Q3 YTD 2020 2021 Target $1.65-$1.70 2021 EPS TARGET RANGE OUR 2021 TARGET IS A RANGE WITH $1.70 EPS OR APPROXIMATELY $100 MILLION NET INCOME AS OUR MANAGEMENT TARGET 5#6The Bancorp 6 STRATEGIC PLAN: FINANCIAL GOALS BY EXECUTING OUR STRATEGIC PLAN, WE EXPECT TO DELIVER MARKET-LEADING RETURNS & CREATE VALUE FOR SHAREHOLDERS PERFORMANCE METRICS 2019 Q3 2020 YTD LONG-TERM TARGETS KEYS TO ACHIEVING FINANCIAL TARGETS ✓ Establish a new Payments Ecosystem 2.0 ✓ Invest in technology/innovation Maintain an industry leading compliance & risk function ✓ Expand salesforce and marketing function in key markets ✓ Attract & retain the best talent ROE 11.6% 14.3% 20% ROA 1.1% 1.3% > 2.0% EPS $0.90 $0.96 Leverage Ratio 9.7% 8.6% 9% - 10% Total Assets $5.7B $6.2B ~$8.0B#7The Bancorp FINANCIAL REVIEW: PANDEMIC RESPONSE WE ARE WORKING CLOSELY WITH OUR BORROWERS TO MEET THEIR NEEDS AS THE PANDEMIC UNFOLDS LOAN DEFERRALS BY BUSINESS LINE ($MILLIONS) 9/30/2020 BUSINESS LINE DEFERRED LOAN PRINCIPAL TOTAL PRINCIPAL % TOTAL Real Estate Capital Markets (HFS) $ 30 $ 1,603 2% Institutional Banking 1,455 0% Small Business Lending 18 836 2% Commercial Fleet Leasing 4 430 1% Discontinued Operations Other Total +A $ 2 103 2% 1 54 54 7 • PAYCHECK PROTECTION PROGRAM High focus on supporting existing clients Originated approximately 1,250 loans, totaling approximately $208 million Expect to generate approximately $5.5 million in fees and interest Average loan size of $165,000 with 92% under $350,000 • HIGHLIGHTS Implemented procedures to support employees working from home Team members deemed worksite essential continue to operate from our physical locations, while effectively employing social distancing standards Loans deferred as of 9/30/20 were down to 1.2% of total loans due to the pandemic compared to 7.5% in Q2 and 6.5% in Q1 We continue to closely monitor our borrowers needs as businesses begin reopening 6 0% +A $ 4,433 1.2% 1 At risk sectors include Hospitality and Retail.#88 $ The Bancorp PAYMENTS BUSINESS GENERATES NON-INTEREST INCOME AND COLLECTS STABLE, LOWER COST DEPOSITS DEPLOYED INTO LOWER RISK ASSET BASE IN SPECIALIZED MARKETS PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs $5.6B DEPOSITS Market-leading payments businesses generate stable deposits that fund our lending business lines PAYMENT ACCEPTANCE GROUP Merchant acquiring and ACH services COMMERCIAL LENDING A combination of Small Business Lending and Fleet Leasing to create opportunities and accelerate growth in the commercial lending space SMALL BUSINESS LENDING SBA and other small business lending $4.3B LOANS COMMERCIAL FLEET LEASING Niche-vehicle fleet leasing solutions Highly specialized lending products in high growth markets INSTITUTIONAL BANKING Historically low loss business lines Securities and cash value insurance lending for wealth managers REAL ESTATE CAPITAL MARKETS Commercial real estate, primarily multifamily loans Note: Financial data for deposits is average for the quarter ended September 30, 2020 and loans for the quarter ended September 30, 2020. B#9DEPOSITS & FEES: 10 PAYMENTS BUSINESS GENERATES NON-INTEREST INCOME AND STABLE, LOWER COST DEPOSITS The Bancorp#10The Bancorp BUSINESS OVERVIEW: PAYMENTS OUR PAYMENTS BUSINESS IS COMPRISED OF THE PAYMENT SOLUTIONS GROUP (ISSUANCE) & PAYMENT ACCEPTANCE GROUP (ACCEPTANCE) #1 PREPAID CARD ISSUING BANK2 1. PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs 2. PAYMENT ACCEPTANCE GROUP Rapid Funds, merchant acquiring and ACH services BUSINESS OVERVIEW: ACCEPTANCE 39% GROSS DOLLAR VOLUME GROWTH 3 BUSINESS OVERVIEW: ISSUANCE Sponsorship of prepaid and other electronic access accounts across the payments space Sponsorship of private label banking (e.g., checking account with a debit card) • 3Q'2020 Financial Highlights: • Average deposits: $4,038M • Non-interest income: $19.4M • Rapid Funds payment technologies • ACH sponsorship of large-scale payment processors VISA/MasterCard sponsorship of large credit card acquiring ISOs¹ and their merchants 3Q'2020 Financial Highlights: • • Average deposits: $835M Non-interest income: $1.8M 1 Independent Sales Organization. 2 Per Nilson Ratings and based on Gross Dollar Volume. 3 Gross Dollar Volume for Q3 2020 vs Q3 2019. 4 Reflects fees for prepaid, debit card and related fees and ACH, card and other payment processing fees for the three quarters ending September 30, 2020 vs three quarters ending September 30, 2019. 12% NON-INTEREST INCOME GROWTH4 10#11The Bancorp PAYMENTS BUSINESS: PAYMENT SOLUTIONS GROUP GDV GROWTH IS ACCELERATING WITHIN OUR PREPAID & DEBIT OFFERINGS 1. PAYMENT SOLUTIONS GROUP Issuing bank for leading prepaid card and debit programs chime Incomm • BUSINESS OVERVIEW: Unique non-branch platform which leverages technology and strategic partners #1 issuing bank for prepaid cards² Over 100 million prepaid cards in U.S. distribution Leading provider of tailored banking solutions to Fintech firms, including challenger banks and other financial services companies Sponsorship of private label banking (e.g., checking account with a debit card) P SoFi PayPal Health Equity 1 Q3 2020 over Q3 2019. 2 Per Nilsen Ratings and measured by Gross Dollar Volume. Q3 2020 GROSS DOLLAR VOLUME GROWTH1 39% GROSS DOLLAR VOLUME GROWTH USE CASES CHALLENGER BANKS GOVERNMENT HEALTHCARE CORPORATE SERVICES (e.g. payroll) GIFT 11#12The Bancorp PAYMENTS BUSINESS: PAYMENT ACCEPTANCE GROUP LAUNCHED IN LATE 2017, RAPID FUNDS HAS GATHERED STRONG MOMENTUM • • • ↑ 2. PAYMENT ACCEPTANCE GROUP Rapid Funds, merchant acquiring and ACH services BUSINESS OVERVIEW: Pioneering real-time payments offering has recognized consistent and significant growth • "Direct1" 2018 VISA Innovation Adoption Award winner Non-interest income and deposit generation Rapid Funds model delivers a highly scalable, low cost offering that disrupts legacy payment methods for corporate disbursements ACH sponsorship of large-scale payment processors VISA/MasterCard sponsorship of large credit card acquiring ISOs² and their merchants P PayPal fiserv. V venmo Intuit turbotax ab quickbooks mint ACI UNIVERSAL PAYMENTS SM WE'RE EXPANDING ON OUR EARLY SUCCESS & adding new partners across various use cases $ USE CASES EARNED WAGE ACCESS GIG ECONOMY INSURANCE CLAIM PAYOUTS 12 1 "Direct" is comprised of corporations with which The Bancorp contracts directly. 2 Independent sales organization.#13The Bancorp PAYMENTS BUSINESS: STABLE, LOWER COST DEPOSIT GENERATOR CONSISTENT DEPOSIT GROWTH FROM PAYMENTS BUSINESSES $6,000 AVERAGE DEPOSITS BY PERIOD (MILLIONS) 13 $5,564 Other (Includes time deposits¹ and other legacy deposit programs) Institutional Banking (checking and money market for higher net worth individuals) Payment Acceptance Group (ACH, Push to Card, Merchant Acceptance) Payment Solutions Group (Prepaid and Debit Issuance) HIGHLIGHTS Stable, low cost deposit base anchored by multi-year, contractual relationships in our Prepaid and Debit issuance business Payment Solutions growth driven by increased transactional volume due to favorable tailwinds from stimulus, electronic banking migration and overall savings increases among consumers Low cost of funds declining in 2020 due to Fed rate cuts to ~zero in March DEPOSIT TYPE (AVG.) Demand & Int. checking BALANCE % TOTAL 5,079,711 91% Savings & Money Market 484,323 9% Time Deposits¹ 0% Total² $5.6B 100% $5,500 $5,000 $4,500 $4,000 $3,819 $3,812 $3,862 $4,025 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2016 2017 2018 2019 Q3 2020 COST OF DEPOSITS 0.30% 0.38% 0.67% 0.85% 0.12% Savings & Money Market Time Deposits 9% 0% Demand & Int. checking 91% 1 Time deposits have rarely been used due to lower cost deposit growth and previous balances are included in "Other". 2 Average for the quarter ended September 30, 2020.#14BLO Pak LOANS & LEASES: HIGHLY SPECIALIZED LENDING WITH LOW LOSS HISTORIES The Bancorp#15The Bancorp LOANS & LEASES: STRONG COLLATERAL AND GOVERNMENT GUARANTEES LOWER CREDIT RISK LOAN PORTFOLIO BUSINESS LINE Real Estate Capital Markets BALANCE SHEET CATEGORY Multifamily commercial real estate (A) Hospitality commercial real estate Retail commercial real estate Other Total Institutional Banking Small Business Lending Commercial Fleet Leasing Other Total principal % OF TOTAL LOWER CREDIT LOSS NICHES Q3 2020 PRINCIPAL BALANCE ($ MILLIONS) PORTFOLIO $ 1,463 34% 63 1% 52 1% 25 0% 1,603 36% Securities backed lines of credit (SBLOC) (B) 1,069 25% Insurance backed lines of credit (IBLOC) (C) Advisor Financing 359 8% 27 1% Total 1,455 34% U.S. government guaranteed portion of SBA loans (D) 334 8% Paycheck Protection Program Loans (PPP) (D) 208 5% Commercial mortgage SBA (E) 165 4% Unguaranteed portion of U.S. govn't guaranteed loans 98 2% Non-SBA small business loans 18 0% Construction SBA 13 0% Total 836 20% Leasing (F) Other 431 10% 13 0% $ 4,338 100% A. Nationally recognized CRE analytics firm projects cumulative 1.2% COVID stress credit loss for multifamily. Loans are on books at 99 dollar price B. SBLOC loans backed by marketable securities with no incurred credit losses C. IBLOC loans are backed by the cash value of life insurance policies with no incurred credit losses D. Portion of small business loans fully guaranteed by the U.S. government E. 50%-60% loan to value ratios at origination F. Recourse to vehicles and relatively low historical charge-offs 15#16The Bancorp LOANS & LEASES: INSTITUTIONAL BANKING INSTITUTIONAL BANKING ☑ Lending and banking services for wealth managers $1.5B PORTFOLIO SIZE 16 • BUSINESS OVERVIEW: Automated loan application platform, Talea, provides industry leading speed and delivery Securities-backed lines of credit provide fast and flexible liquidity for investment portfolios Insurance-backed lines of credit provide fast and flexible borrowing against the cash value of life insurance Launched Advisor Finance product to provide capital to transitioning financial advisors to facilitate M&A, debt restructuring, and the development of succession plans Deposit accounts for wealth management clients • No historical credit losses • • • HIGHLIGHTS: Loan growth of 58% year over year with significant additional market opportunity Launched Talea TM loan automation platform and implemented with key partners Market dynamics support business model • Advisors shifting from large broker/dealers to independent platforms Sector shift to fee-based accounts Emergence of new wealth management providers 2.5% 9/30/2020 EST. YIELD The Bancorp's Business Model allows us to build banking solutions to "spec" without competing directly with our partner firms. We do not have any associated asset managers, proprietary advisory programs, or related programs. Our singular focus is to help our partner firms stay competitive in the marketplace and to grow and retain assets. ALWAYS A PARTNER, NEVER A COMPETITOR#17The Bancorp LOANS & LEASES: INSTITUTIONAL BANKING LOAN PORTFOLIO INSTITUTIONAL BANKING PRIMARILY COMPRISED OF SECURITIES & CASH VALUE LIFE INSURANCE LENDING INSTITUTIONAL BANKING LOANS ($MILLIONS) TOP 10 SBLOC LOANS ($MILLIONS) LOAN TYPE Securities backed lines of credit (SBLOC) Insurance backed lines of credit (IBLOC) Advisor Financing Total 9/30/2020 PRINCIPAL BALANCE % OF PORTFOLIO $ 1,069 359 27 1,455 PORTFOLIO ATTRIBUTES SECURITIES BACKED LINES OF CREDIT • • No historical credit losses Underwriting standards of generally 50% to equities and 80% or more to fixed income securities INSURANCE BACKED LINES OF CREDIT No historical credit losses Loans backed by the cash value of whole life insurance policies PRINCIPAL BALANCE $ 73% 37 33 25% 2% 9/30/2020 % PRINCIPAL ΤΟ COLLATERAL 30% • 17 39% · 14 22% 12 33% 100% 10 47% 10 31% 06 9 23% 9 75% 9 49% 8 22% Total $ 131 35% 17#18The Bancorp LOANS & LEASES: SMALL BUSINESS LENDING SMALL BUSINESS LENDING SBA and other small business lending $628M PORTFOLIO SIZE • • BUSINESS OVERVIEW: Established a distinct platform within the fragmented SBA market National portfolio approach allows pricing and client flexibility Solid credit performance demonstrated over time Client segment strategy tailored by market • . HIGHLIGHTS: Loan growth of 13% year over year driven by increased origination productivity Developed the SBAlliance T program to provide lending support to banks and financial institutions who need SBA lending capabilities through products such • as: Wholesale loan purchases Interim bridge financing for small business owners Participated in the Payroll Protection Program (PPP) and originated $208M in short term loans, not included in the $628M above 4.9% 9/30/2020 EST. YIELD ~$700k AVERAGE 7(a) LOAN SIZE 18#19The Bancorp LOANS & LEASES: STRONG COLLATERAL & GOVERNMENT GUARANTEES PORTFOLIO ATTRIBUTES 19 SMALL BUSINESS LENDING SMALL BUSINESS LOANS BY TYPE1 ($MILLIONS) 9/30/2020 SMALL BUSINESS LOANS BY STATE1 ($MILLIONS) 9/30/2020 SBL SBL TYPE COMMERCIAL MORTGAGE CONSTRUCTION SBL SBL NON-REAL ESTATE STATE COMMERCIAL MORTGAGE CONSTRUCTION SBL SBL NON-REAL ESTATE TOTAL TOTAL Florida $ 35 $ 8 $ 8 $ 51 TYPE DISTRIBUTION . Diverse product mix Commercial mortgage and construction are generally Hotels $ 66 $ 2 $ $ 68 California 36 2 5 43 originated with 50%-60% LTV's Professional services 21 3 24 offices Pennsylvania 30 4 34 GEOGRAPHIC DISTRIBUTION Full-service restaurants 15 1 4 20 Illinois 26 3 29 Child day care and 15 1 16 youth services North Carolina 19 3 3 25 Diverse geographic mix Bakeries 4 12 16 New York 10 2 5 17 Fitness/rec centers and 2 8 2 12 instruction Texas 11 5 16 Largest concentration in Florida representing 17% of total General warehousing 11 111 and storage Tennessee 11 1 12 Limited-service 7 3 10 restaurants and catering New Jersey 3 1 7 11 Elderly assisted living 7 2 9 facilities Virginia 9 2 11 Amusement and 4 2 3 9 recreation industries Georgia 5 2 7 Car washes 5 3 8 Colorado 3 1 4 Funeral homes 7 7 Michigan 3 1 4 New and used car 4 4 dealers Washington 3 3 Automotive servicing 3 3 Ohio 2 1 3 Other 51 26 77 Other states 16 8 Total $ 222 $ +A 16 $ +A 56 $ 294 Total $ 222 $ 16 ŁA $ 56 SA $ 24 294 1Excludes $334M of SBA loans that are government guaranteed and $208M PPP loans.#20The Bancorp LOANS & LEASES: COMMERCIAL FLEET LEASING COMMERCIAL FLEET LEASING Niche-vehicle fleet leasing solutions • BUSINESS OVERVIEW: Niche provider of vehicle leasing solutions • • Focus on smaller fleets (less that 150 vehicles) Direct lessor (The Bancorp Bank sources opportunities directly and provides value-add services such as outfitting police cars) Historical acquisitions of small leasing companies have contributed to growth Mix of commercial (~80%) and government-related business (~20%) . HIGHLIGHTS: Reengineering the operating platform to enable sustained and efficient growth • Enhancing sales process and support functions Pursuing technology enhancements to scale business with efficiency Constantly evaluating organic and inorganic growth opportunities in the vehicle space $431M PORTFOLIO SIZE 20 20 6.3% 9/30/2020 EST. YIELD#21The Bancorp LOANS & LEASES: COMMERCIAL FLEET LEASING PORTFOLIO COMMERCIAL FLEET LEASING DIRECT LEASE FINANCING BY TYPE ($MILLIONS) 9/30/2020 DIRECT LEASE FINANCING BY STATE ($MILLIONS) 9/30/2020 TYPE BALANCE TOTAL STATE BALANCE TOTAL • Government agencies and public institutions Florida $ $ 76 18% California Construction Waste management and remediation services Real estate, rental and leasing 74 18% New Jersey 29 51 61 14% Pennsylvania 44 10% New York Retail trade 36 8% North Carolina Utah Transportation and warehousing 35 8% Maryland Health care and social assistance 26 6% Washington Professional, scientific, and technical 19 4% services Georgia Wholesale trade 14 3% Missouri Connecticut Manufacturing 14 3% Texas 2322222222222 92 20% 30 7% 7% 26 6% 25 6% 5% 21 5% 20 5% 16 4% 12 3% 12 3% 12 3% 12 3% Educational services Arts, entertainment, and recreation 9 2% Alabama 11 3% 5 1% South Carolina 9 2% Other Total 18 5% Other states 82 18% $ 431 100% Total $ 431 100% PORTFOLIO ATTRIBUTES • OVERVIEW Largest concentration is government sector Of the $431M total portfolio, $401M is vehicle leases with the remaining $30M made up of equipment leases 21#22The Bancorp LOANS & LEASES: REAL ESTATE CAPITAL MARKETS REAL ESTATE CAPITAL MARKETS COMMERCIAL REAL ESTATE LOANS BY TYPE ($MILLIONS) 9/30/2020 Commercial real estate loans • • • BUSINESS OVERVIEW: Strategic determination made in Q3 to discontinue future securitization activity We expect income from the portfolio to be stable over the next 2 years Entire portfolio is at LIBOR interest rate floors and yields 4.8% as of Q3 2020 TYPE # LOANS BALANCE ORIGINATION DATE LTV WEIGHTED AVG MIN INTEREST RATE % TOTAL Multifamily 173 $ 1,463 76% 4.8% 91% (apartments) Hospitality (hotels 11 63 65% 5.7% 4% and lodging) Retail 8 52 70% 4.6% 3% Other Total 7 25 70% 5.2% 2% 199 $ 1,603 75% 4.8% 100% COMMERCIAL REAL ESTATE LOANS BY STATE ($MILLIONS) STATE Texas Georgia Arizona North Carolina Nevada Alabama Other states each <$50 million Total 9/30/2020 BALANCE ORIGINATION DATE LTV PORTFOLIO ATTRIBUTES 222 22 OVERVIEW · Vast majority of loans are multifamily including all of the top 15 exposures Commercial real estate loans are in "Commercial loans, at fair value" category on balance sheet ASSET CLASSES - % PORTFOLIO $ 396 76% BDX 100 252 78% 123 76% MULTI-FAMILY - 91% LODGING - 4% 111 77% 56 80% RETAIL - 3% 54 76% 611 73% OTHER - 2% $ 1,603 75%#23BLO H FINANCIAL REVIEW waper Par The Bancorp#24The Bancorp FINANCIAL REVIEW: INTEREST RATE SENSITIVITY 24 224 3.4% NIM & SIGNIFICANT NET INTEREST INCOME GROWTH IN Q3 DESPITE 0% FRB RATE ENVIRONMENT1 HIGHLIGHTS ✔Floating rate lending businesses include Real Estate Capital Markets, SBLOC, IBLOC and Small Business Real Estate Capital Markets Core Lending Businesses Institutional Banking³ Small Business Q3 BALANCE² ($MILLIONS) RATE SENSITIVITY $1,603 4.8% avg. floor and yield will increase as rates exceed floors $1,455 Majority of loan yields will increase as rates increase $628 Majority of loan yields will increase as rates increase Leasing $431 Total Total Deposits Fixed rates but short average lives $4,117 Core Lending businesses account for 95% of the total $5,564 $4,338 loans Adjusts to a portion of rate increases in line with partner contracts In the unlikely event of negative interest rates, $1.1B of demand securities loans and $0.4B of cash value insurance loans would be repriced with floors to maintain adequate margins. 2 Loans are as of September 30, 2020 and deposits are average balance for Q3 2020. 3Institutional Banking substantially comprised of securities backed loans and insurance backed loans. Deposits primarily comprised of prepaid and debit accounts and anchored by multi-year, contractual relationships Interest income should increase in higher interest rate environments *Excludes $208M of short-term PPP loans which are fully government guaranteed and deferred costs and fees.#25The Bancorp FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE HAS GROWN CONSISTENTLY SINCE 2016 WHILE EXPENSES HAVE BEEN TIGHTLY MANAGED, CREATING OPERATING LEVERAGE REVENUE Annual revenue growth driven by diverse product mix Larger portion of revenue from non- interest income compared to peer banks Net interest income growth driven by growth in balances across business lines $ Millions $250 $200 $150 $100 $50 CORE REVENUE 1 $ Millions NON INTEREST EXPENSE $250 +47% '16-'19 (15%) '16-'19 $200 $0 2016 2017 2018 2019 Q3 YTD Q3 YTD 2019 2020 $150 $100 $50 $0 2016 2017 2018 2019 Q3 YTD Q3 YTD 2019 2020 1Core revenue is net interest income plus non-interest income excluding gains/losses from sales of securities, changes in valuation to Walnut Street and the sales of Health Savings Accounts, the European payments business, and the IRA portfolio. 2 Includes $24.3 million of gains on commercial loans originated for sale, primarily through two securitizations. . EXPENSE Expenses have been tightly managed since 2017 Expense saves have continued to be realized and have funded critical BSA and other infrastructure which has attracted new clients 2019 includes a $7.5M civil money penalty related to consent order remediation. In 2020, subsequent to the civil money penalty, the related consent order was lifted 25#26The Bancorp FINANCIAL REVIEW: LOAN LOSS RESERVE ALLOWANCE FOR CREDIT LOSSES REFLECTS OUR LOWER RISK LOAN PORTFOLIO $16 ALLOWANCE FOR CREDIT LOSSES ($MILLIONS) $14 $12 $10 $8 $6 $4 $2 $0 2017 2018 2019 Q3 2020 Allowance for credit losses as % of loan 0.6% 0.6% 0.6% 0.6% balance Allowance for credit losses as % of loan 1.2% 1.2% 1.2% 1.4% balance (excluding SBLOC & IBLOC) HIGHLIGHTS SBLOC/IBLOC/Advisor Financing HELOC/Consumer/Other Leasing Small Business CONTINUING OPERATIONS • • Increases in allowance for credit losses driven partially by CECL adoption in Q1 and potential COVID impact Fair value adjustments to the capital markets commercial real estate portfolio in 2020 were driven by potential COVID-related unrealized losses DISCONTINUED OPERATIONS Discontinued portfolio only 2% of total loans Minimal losses in Discontinued Operations line item and Walnut Street through Q3 2020 26#27The Bancorp FINANCIAL REVIEW: HISTORICAL CAPITAL POSITION 25% 20% 15% 10% 5% CAPITAL POSITION THE BANCORP INC. CAPITAL RATIOS 0% 2017 2018 2019 2020 Q3 Tier 1 Leverage Ratio 7.9% 10.1% 9.6% Tier 1 Risk-based Capital Ratio (RBC)¹ 16% 20% 19% Total Risk-based Capital Ratio 17% 21% 19% 8.6% 14% 15% HIGHLIGHTS Tier1 Capital Ratio (8%-Well-capitalized minimum) Total RBC Ratio (10% Well-capitalized minimum) Corporate governance requires periodic assessment of capital minimums • Financial and strategic planning emphasize capital • Capital planning includes stress testing for unexpected conditions and events Tier 1 Leverage Ratio (5% Well-capitalized minimum) 1Tier 1 risk-based ratio is identical to Common Equity Tier 1 to risk weighted assets and has a 6.5% well capitalized minimum 27#28The Bancorp FINANCIAL REVIEW: EARNINGS AND PROFITABILITY BY EXECUTING OUR STRATEGIC PLAN, WE EXPECT TO DELIVER MARKET-LEADING RETURNS & CREATE VALUE FOR SHAREHOLDERS PERFORMANCE METRICS 2017 2018 2019 Q3 2020 ROAE 7.0% 24.3% 11.6% LONG-TERM TARGETS 16.9%1 20% ROAA 0.52% 2.07% 1.09% 1.48%1 > 2.0% EPS $0.39 $1.55 $0.90 $0.40 Leverage Ratio 7.9% 10.1% 9.6% 8.6% 9% - 10% Total Assets $4.7B $4.4B $5.7B $6.2B ~$8.0B KEYS TO ACHIEVING FINANCIAL TARGETS Established a new Payments Ecosystem 2.0 which satisfies regulators and is scalable ✓ Invested in technology/innovation ✓ Maintained an industry leading compliance & risk function ✓ Expanded salesforce and marketing function in key markets ✓ Attracted & retain the best talent Build upon strong capital base through retained earnings Lifted consent order: the 2014 consent order was lifted in May 2020 and the 2015 consent order is pending review by regulators Efficiency Ratio² 1 Annualized for the three months ended September 30, 2020. 79% 71% 65% 57%1 2Efficiency ratio calculated by dividing non-interest expense by the total of net interest income and non-interest income. Non-interest income excludes gains/losses from sales of securities, changes in valuation to Walnut Street, and the sales of the Health Savings Account portfolio, the European payments business and the IRA portfolio. Expense excludes $8.9 million of total civil money penalties in 2019. 28