The Bancorp, Inc. Reports Second Quarter 2008 Results

Loan and Deposit Growth Continue Although Securities Impairment
Charge Causes Loss
WILMINGTON, Del.--(Business Wire)--
The Bancorp, Inc. ("Bancorp") (Nasdaq:TBBK), a bank holding
company, today reported results for the quarter ended June 30, 2008.

Bancorp reported a net loss available to common shareholders for
the three months ended June 30, 2008 of $4.3 million or a total loss
per share - diluted of $0.29, based on 14,563,218 weighted average
shares outstanding.

Betsy Z. Cohen, Bancorp's Chief Executive Officer, said, "The loss
is attributable to an impairment charge of $8.3 million against our
$15 million portfolio of structured finance securities. The bank
remains well capitalized after the recognition of this loss and we
expect to return to profitability in the third quarter. Without this
impairment charge the Bancorp would have recorded a profit for the
three months ended June 30, 2008. We continue to experience
significant growth in our core deposit generation programs. Deposits
from health saving accounts increased 60% to over $150 million since
December 31, 2007 and deposits attributable to our SVS platform have
grown 152% to $290 million since its acquisition in November 2007.
Loans are also increasing even after a decrease in both outstandings
and commitments in our residential construction loan portfolio.
Nonperforming loans at June 30, 2008 represented .63% of total assets
compared to .58% of total assets at March 31, 2008."

Bancorp maintains an investment securities portfolio to generate
cash flow, to help manage interest rate risk, and to provide
collateral for deposits and other liabilities. Sharp declines in the
market valuations of $15 million of structured finance securities,
which were purchased in 2004 and 2005, coupled with uncertainty about
future market conditions, led management to determine that these
investments had become "other than temporarily impaired" under GAAP.
The amount of the decrease - $8.3 million - was recorded as a
securities loss for the quarter ended June 30, 2008. An additional $2
million was included in the loan and lease loss provision over the
first quarter 2008. The allowance for loan and leases increased to
1.00% of loans and leases from .86% at March 31, 2008.

The total loss per share - diluted of $0.29 for the three months
ended June 30, 2008 described above compares to net income available
to common shareholders of $3.9 million, or $0.27 diluted earnings per
share, based on 14,393,184 weighted average shares outstanding, for
the three months ended June 30, 2007. Bancorp reported a net loss
available to common shares for the six-months ended June 30, 2008 of
$1.5 million, or a total loss per share - diluted of $0.10 based on
14,562,434 weighted-average shares outstanding - diluted, as compared
to net income available to common shares for the six-months ended June
30, 2007 of $7.4 million, or total earnings per share - diluted of
$0.51 based on 14,396,481 weighted-average shares outstanding -
diluted.

At June 30, 2008, Bancorp's total assets were $1.6 billion, an
increase of $109.0 million or 7.0% from December 31, 2007, loans grew
to $1.428 billion, an increase of $140.8 million or 10.9% from
December 31, 2007 and deposits grew to $1.314 billion, an increase of
$36.0 million or 2.8% from December 31, 2007.

Conference Call Webcast

Interested parties can access the LIVE webcast of Bancorp's
Quarterly Earnings Conference Call at 8:30 AM EDT on July 24, 2008 by
clicking on the webcast link on Bancorp's homepage at
www.thebancorp.com. The conference call may also be listened to by
dialing 866.578.5784 using passcode 98494786. 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 Thursday, July 31, 2008, by
dialing 888-286-8010, access code 16798331.

About Bancorp

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's
regional community bank division serves the needs of small and
mid-size businesses and their principals in the
Philadelphia-Wilmington region.

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The Bancorp, Inc.
Financial highlights
(unaudited)

Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
------------- ------------ ------------- -------------
(dollars in thousands (dollars in thousands
except per share data) except per share data)

Condensed
income
statement
Net interest
income $ 12,921 $ 12,812 $ 25,817 $ 25,366
Provision for
loan and lease
losses 3,350 750 4,700 1,500
Non-interest
income 3,024 1,675 6,500 3,181
Realized loss
from impaired
securities 8,275 - 8,275 -
Non-interest
expense 11,210 7,303 21,572 14,738
------------- ------------ ------------- -------------
Net (loss)
income before
income tax
expense (6,890) 6,434 (2,230) 12,309
Income tax
(benefit)
expense (2,619) 2,511 (785) 4,804
------------- ------------ ------------- -------------
Net (loss)
income (4,271) 3,923 (1,445) 7,505
Less preferred
stock
dividends and
accretion (16) (17) (33) (35)
Income
allocated to
Series A
preferred
shareholders 31 (32) 10 (61)
------------- ------------ ------------- -------------
Net (loss)
income
available to
common
shareholders $ (4,256) $ 3,874 $ (1,468) $ 7,409
============= ============ ============= =============

Basic (loss)
earnings per
share $ (0.29) $ 0.28 $ (0.10) $ 0.54
============= ============ ============= =============

Diluted (loss)
earnings per
share $ (0.29) $ 0.27 $ (0.10) $ 0.51
============= ============ ============= =============
Weighted
average shares
- basic 14,563,218 13,793,621 14,562,434 13,773,771
Weighted
average shares
- diluted 14,563,218 14,393,184 14,562,434 14,396,481

June 30, March 31, December 31, June 30,
2008 2008 2007 2007
------------- ------------ ------------- -------------
Condensed
balance sheet
Assets
Federal funds
sold $ 18,047 $ 45,714 $ 40,783 $ 136,290
Investment
securities 118,897 127,962 122,215 115,810
Loans 1,427,578 1,362,653 1,286,789 1,181,391
Allowance for
loan and lease
losses (14,245) (11,328) (10,233) (9,387)
Other assets 127,129 122,453 128,828 44,309
------------- ------------ ------------- -------------
Total assets $ 1,677,406 $ 1,647,454 $ 1,568,382 $ 1,468,413
============= ============ ============= =============

Liabilities and
shareholders'
equity
Transaction
accounts $ 786,785 $ 829,611 $ 864,254 $ 716,202
Time deposits 527,582 425,159 414,064 434,885
------------- ------------ ------------- -------------
Total deposits 1,314,367 1,254,770 1,278,318 1,151,087
Short term
borrowings 152,005 175,000 93,846 150,000
Subordinated
debt 13,401 13,401 13,401 -
Long term
borrowings 20,000 15,000 - -
Other
liabilities 4,968 9,095 6,558 10,402
Shareholder's
equity 172,665 180,188 176,259 156,924
------------- ------------ ------------- -------------
Total
liabilities
and
shareholders'
equity $ 1,677,406 $ 1,647,454 $ 1,568,382 $ 1,468,413
============= ============ ============= =============

Average Second First Fourth Second
condensed quarter quarter quarter quarter
balance sheet average 2008 average 2008 average 2007 average 2007
------------- ------------ ------------- -------------
Assets
Federal funds
sold $ 21,566 $ 28,708 $ 31,880 $ 70,432
Investment
securities 127,544 122,161 118,313 112,343
Loans 1,396,421 1,330,566 1,269,324 1,132,682
Allowance for
loan and lease
losses (11,875) (10,928) (9,863) (9,221)
Other assets 116,715 124,654 60,842 37,405
------------- ------------ ------------- -------------
Total assets $ 1,650,371 $ 1,595,161 $ 1,470,496 $ 1,343,641
============= ============ ============= =============

Liabilities and
shareholders'
equity
Transaction
accounts $ 799,675 $ 886,567 $ 731,571 $ 743,402
Time deposits 476,468 392,594 423,617 404,912
------------- ------------ ------------- -------------
Total deposits 1,276,143 1,279,161 1,155,188 1,148,314
Short term
borrowings 155,338 119,176 144,937 -
Other
borrowings 2,300 13,169 - 30,512
Other
liabilities 35,082 6,257 6,325 9,977
Shareholders'
equity 181,508 177,398 164,046 154,838
------------- ------------ ------------- -------------
Total
liabilities
and
shareholders'
equity $ 1,650,371 $ 1,595,161 $ 1,470,496 $ 1,343,641
============= ============ ============= =============

Loan Portfolio
June 30 March 31 December 31 June 30
2008 2008 2007 2007
Amount Amount Amount Amount
------------- ------------ ------------- -------------

Commercial $ 341,304 $ 324,824 $ 325,166 $ 256,362
Commercial
mortgage 461,170 419,764 369,124 355,717
Construction
(1) 332,088 348,133 307,614 297,007
------------- ------------ ------------- -------------
Total
commercial
loans 1,134,562 1,092,721 1,001,904 909,086
Direct
financing
leases, net 90,201 87,772 89,519 88,076
Residential
mortgage 52,389 48,764 50,193 53,743
Consumer loans
and others 149,186 132,671 144,882 130,598
------------- ------------ ------------- -------------
1,426,338 1,361,928 1,286,498 1,181,503
Unamortized
costs (fees) 1,240 725 291 (112)
------------- ------------ ------------- -------------
Total loans,
net of
unamortized
fees and costs $ 1,427,578 $ 1,362,653 $ 1,286,789 $ 1,181,391
============= ============ ============= =============

Supplemental
loan data (1):
Construction 1-
4 family $ 174,196 $ 177,843 $ 167,485
Construction
commercial,
acquisition
and
development 157,892 170,290 140,129
------------- ------------ -------------
$ 332,088 $ 348,133 $ 307,614
============= ============ =============

(1) Prior to
December 31,
2007,
construction
loans were
reported as a
single line
item.

Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
------------- ------------ ------------- -------------
Selected
operating
ratios
Return on
average assets
excluding
realized
security loss
(1) 0.27% 1.17% 0.48% 1.13%
Return on
average equity
excluding
realized
security loss
(1) 2.44% 10.13% 4.37% 9.84%
Return on
average
tangible
equity
excluding
realized
security loss 3.70% 10.40% 6.69% 10.10%
Return on
average assets (1.04)% 1.17% (0.18)% 1.13%
Return on
average equity (9.41)% 10.13% (1.61)% 9.84%
Return on
average
tangible
equity (14.27)% 10.40% (2.46)% 10.10%
Net interest
margin 3.34% 3.89% 3.41% 3.88%
Efficiency
ratio 70.30% 50.41% 66.75% 51.63%
Book value per
share $ 11.77 $ 11.27 $ 11.77 $ 11.27

(1)
Reconciliation
table for non-
GAAP financial
measure
Return on
average equity
excluding
realized
security loss 2.44% 10.13% 4.37% 9.84%
Effect of
goodwill and
intangibles
excluding
realized
security loss 1.26% 0.27% 2.32% 0.26%
Return on
average
tangible
equity
excluding
realized
security loss 3.70% 10.40% 6.69% 10.10%

Return on
average equity -9.41% 10.13% -1.61% 9.84%
Effect of
goodwill and
intangibles -4.86% 0.27% -0.85% 0.26%
Return on
average
tangible
equity -14.27% 10.40% -2.46% 10.10%

Average
tangible
equity
excludes
acquisition
related
average
goodwill and
intangibles:
Average
shareholders'
equity 181,508 154,838 179,981 152,503
Average
goodwill and
intangibles (61,810) (3,951) (62,447) (3,951)
Average
tangible
equity 119,698 150,887 117,534 148,552

As of or for the period
ended
June 30,
Asset quality
ratios 2008 2007
------------- -------------
Nonperforming
loans to total
loans 0.74% 0.39%
Nonperforming
assets to
total assets 0.63% 0.31%
Allowance for
loan and lease
losses to
total loans 1.00% 0.79%
Nonaccrual
loans $ 10,053 $ 4,442
Loans 90 days
past due still
accruing
interest $ 492 $ 120
*T

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

Copyright Business Wire 2008