The Bancorp Bank, N.A. a wholly-owned subsidiary of The Bancorp, Inc. announced its headquarters has relocated to Sioux Falls, SD, effective Feb. 1.
The announcement follows the bank’s conversion to a national bank.With the relocation, The Bancorp Bank, N.A. is now the third-largest bank by asset size in the state that straddles the West and Upper Midwest.
The holding company, The Bancorp, Inc., will retain its north Wilmington, location, which will continue to serve as the company’s headquarters and an operations center for the bank.
“The decision to move the bank’s headquarters to Sioux Falls aligns with the Company’s long-term growth plan for its Fintech Solutions business and reinforces our commitment to investing in the local community,” said Greg Garry, chief operating officer.
The Bancorp currently maintains an office located in South Central Sioux Falls, but construction is underway in downtown Sioux Falls where the Bank will be the anchor tenant of The Bancorp Building at Cherapa Place. When construction is complete in late 2023, the bank will initially occupy 50,000 square feet throughout the top three office floors of the 10-story mixed-use building, which will additionally feature ground-level retail, seven stories of Class A office space, two floors of upscale condos, and conference space. The offices, will accommodate up to 250 employees.
“The Bancorp’s Fintech Solutions team has called Sioux Falls home since 2002. The relocation of the bank headquarters and our move into The Bancorp Building at Cherapa Place later this year will help exhibit the growth the company has experienced throughout that time,” said Ryan Harris, Executive Vice President, head of Fintech Solutions. “This significant investment reflects our focus on becoming a premier employer in Greater Sioux Falls and attracting top talent that will help us continue to innovate.”
The Bancorp Bank, N.A. is a partner to nonbank companies by providing Fintech Solutions, Institutional Banking, Commercial Lending, and Real Estate Bridge Lending businesses. The Bank is the largest issuer of Visa and MasterCard-branded prepaid cards in the U.S., the eighth-largest debit card issuer by purchase volume, and a top ACH (checking account transfer) originator, a release stated.
“We are excited about the future of The Bancorp, and this transition highlights where we see our growth for the next decade,” said Damian Kozlowski, CEO.
South Dakota and Delaware have been rivals for decades in luring bank jobs to their respective states through tax incentives and taking ceilings off interest rates.
South Dakota was able to lure Citibank early on and while Citi has restructured in South Dakota, the financial services giant remains one of the largest employers in Sioux Falls.
However, Delaware ultimately gained more banking jobs, thanks to a workforce with expertise in financial services and a lower cost of living than financial centers in New York and New Jersey.
Sioux Falls, meanwhile, has been able to diversify its economy beyond meat packing and agribusiness and has doubled in population in the past half-century to nearly 200,000. And like Delaware, healthcare has emerged as a major industry. Sioux Falls is aided by a lower cost of living and lower taxes than in its larger neighbor Minnesota.
