The Bancorp, Inc.

Good morning, ladies and gentlemen, and welcome to the second quarter, the Bancorp Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star, then zero on your touchstone telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Andres Viroslav. Please go ahead.

Thank you, Jarell. Good morning, and thank you for joining us today for the Bancorp's second quarter 2021 financial results conference call. The call to me today are Damian Kozlowski, Chief Executive Officer, and Paul Frankel, our Chief Financial Officer. This morning's call is being webcast on our website at www.thebancorp.com. There will be a replay of the call beginning at approximately 12 p.m. Eastern time today. The dial-in for the replay is 855- 859-2056, with a confirmation code of 286-8852. Before I turn the call over to Damian, I would like to remind everyone that when used in this conference call, the words believes, anticipates, expects, and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties, which could cause actual results, performance, or achievements to differ materially from those anticipated or suggested by such statements. For further discussion of these risks and uncertainties, please see the Bancorp's filings with the SEC. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Bancorp undertakes no obligation to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect occurrence of unanticipated events. Now I'd like to turn the call over to the Bancorp's Chief Executive Officer, Damian Kozlowski. Damian?

Thank you, Andrew. Good morning, everyone. The Bancorp earned $29 million in net income, or $0.50 a share, from 13% year-over-year revenue growth and 3% expense growth. Interest income increased 10% year-over-year. Total loan balances grew 12% year-over-year. Loan balance growth was led by institutional banking, which includes S-Block, I-Block, and RIA financing, with a 38% increase in balances. Quarter-over-quarter institutional grew 7%, SBA excluding PP, and a related non-recurring line of credit 2.5% and leasing 5%. Gross dollar volume from our cards business grew 15% year-over-year with fee growth of 5%. Total non-interest income grew 27% year-over-year. Our FinTech Solutions Group, previously named Payment Solutions and Payments Acceptance, continues to have a robust business development implementation pipeline. We announced the addition of Current in the quarter as another major partner in our ecosystem. The newly named FinTech Solutions Group was created to enhance solutions integration to our expanding partner base. This group not only enables the challenger bank market, but also now includes all our verticals in corporate, gift, healthcare, and government with an expanding set of card, virtual card, debit, prepaid, and other payment capabilities, such as push-to-card rapid funds. In addition, we also announced creation of our new FinTech Hub in downtown Sioux Falls. The named Bancorp building will create an integrated innovation environment for our team members and partners. We expect to fully occupy the new facility in 2023. We launched a new expanded website this quarter to reflect our progress as a company. On the site, you can find useful information about the company, including our new investor presentation and educational and industry insights from our team, who are always focused on helping to build success for our partners. In the new investor presentation, we are introducing Vision 500, a four-year plan to achieve $500 million in revenue with a sustainable 22% ROE or better by 2025. Also in the second quarter, we are honored to be selected to be included in the S&P 600 Small Cap Index. This index is a set of representative public small cap companies and key industries that power our economy. This index is also part of the broad S&P 1500 index, and it also includes large and mid-cap companies. Lastly, based on our year-to-date performance of $0.94 a share and our 2021 outlook, we are increasing our 2021 guidance to $1.78 from $1.70. We continue to see tailwinds that should drive continued growth in 2021 earnings and beyond. We will give preliminary per share guidance for 2022 with the third quarter earnings release. Current trends would suggest income growth for 2022 of 20% or more over our revised 2021 guidance. I now turn over the call towards CFO Paul Franco to give more details about the second quarter.