John Leto
About John Leto
John Leto (age 61) is Executive Vice President and Head of Institutional Banking at The Bancorp (TBBK). He has led Institutional Banking since January 2019 and previously served as Chief Administrative Officer from July 2016 to December 2018, after senior roles at TD Bank (SVP, Head of National Sales of Wealth Management), Standard Chartered Americas Private Bank (President & CEO), and Citi Private Bank (Chief Administrative Officer) . Company performance during his tenure improved materially: 2024 net income reached $218M, ROE 27%, and ROA 2.7%; assets grew to ~$8.7B, supported by strong payments and lending businesses . Stock performance significantly outpaced peers and bank indices from Jan 1, 2022 to Nov 25, 2024 (TBBK +138% vs designated peer group −4%, Nasdaq Banks ~flat, KBW Bank +5%) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Bancorp | Head of Institutional Banking | Jan 2019–present | Leads SBLOC/IBLOC and RIA lending; sustained growth to $2.5B by 2022; balances fell to $1.8B in 2023 due to higher rates, but yields and NII increased . |
| The Bancorp | Chief Administrative Officer | Jul 2016–Dec 2018 | Drove organizational efficiency; revenue per employee rose from ~$219k (2016) to ~$377k (2017) and non‑interest expense declined; enabled step-up in profitability . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| TD Bank | SVP, Head of National Sales of Wealth Management | 2012–2016 | Managed U.S. sales expansion strategy . |
| Standard Chartered Americas Private Bank | President & CEO; Chairman/President/CEO of StanChart Securities International | 2009–2012 | Led U.S. and Latin America wealth management businesses . |
| Citi Private Bank | Chief Administrative Officer (multiple senior roles) | 1995–2007 | Oversight across U.S., LATAM, Asia, Europe, Middle East . |
| Alpha Capital Financing Group, Inc. | Founder & Partner | 2007–2009 | Built de novo private banking platform . |
Fixed Compensation
| Metric | 2018 | 2022 | 2023 |
|---|---|---|---|
| Base Salary ($) | 400,000 | 400,000 | — |
| Cash Bonus ($) | 225,000 | 750,000 | 0 |
| Equity Grants ($) | 225,000 (RSUs) | 500,000 (RSUs) | — |
Notes:
- Bonus determinations are discretionary and tied to sustained, multi-year performance; TBBK avoids guaranteed incentives and generally does not use employment agreements .
Performance Compensation
| Metric | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| SBLOC/IBLOC + RIA balances ($B) | 1.6 | 2.05 | 2.50 | 1.80 |
| Outcome vs budget | — | Exceeded (sustained growth) | Exceeded (sustained growth) | Decreased due to higher rates; yield/NII offset |
| Cash Bonus ($) | — | 700,000 | 750,000 | 0 |
Vesting Activity (realized):
- RSUs vested in 2023: 29,371 shares; value realized $1,069,910 .
- Outstanding unvested RSUs (selected historical snapshot): 89,762 units at 12/31/2017 (market value $886,849 at $9.88/share) .
Award structures and vesting:
- RSUs generally vest one-third annually over 3 years; certain 2018/2020 grants used two-year/eight-month schedules .
- Options (CEO-focused program) vest one-fourth annually over 4 years; options are not typical for other executives .
Equity Ownership & Alignment
| Metric | 2018 | 2023 | 2024 |
|---|---|---|---|
| Beneficial Ownership (shares) | 86,558 | 151,850 | 155,019 |
| % of Shares Outstanding | n/a | <1% | <1% |
| Pledged Shares | Prohibited by policy | Prohibited by policy | Prohibited by policy |
| Hedging | Prohibited by policy | Prohibited by policy | Prohibited by policy |
| Ownership Guidelines | Exec ownership required; CEO 3× salary; directors 2× fees; all execs/directors in compliance as of 2025 | — | — |
Insider selling pressure:
- We attempted to retrieve Form 4 transactions for “John Leto” via the insider-trades skill, but access was unauthorized (401). Monitoring future Form 4s is recommended to assess any tax-withholding sales around vesting events. Proxy tables show substantial RSU vesting in 2023 .
Employment Terms
| Trigger | Vesting Terms | Estimated Payout ($) |
|---|---|---|
| Involuntary termination following change-in-control | RSUs fully vest immediately; options become exercisable; exercisable for 1 year subject to expiration terms | 2,341,980 (as of 12/31/2023) |
| Death, disability, or retirement | RSUs vest on 1-year anniversary; options vest on 1-year anniversary and become exercisable after the 1-year period (subject to term limits) | 2,341,980 (as of 12/31/2023) |
Other governance provisions:
- Mandatory clawback policy (SEC Rule 10D/Nasdaq) and a discretionary clawback for VP+ executives; no tax gross-ups; limited perquisites .
Investment Implications
- Pay-for-performance linkage: Leto’s bonuses closely track the growth and profitability of SBLOC/IBLOC/RIA lending; the 2023 bonus was zero despite higher yield/NII, reflecting discipline in tying cash incentives to volume growth amid rate-driven balance declines .
- Alignment and low‑risk posture: No hedging/pledging permitted; multi-year RSU vesting promotes retention; ownership guidelines in force, with broad compliance reported .
- Change‑in‑control economics: ~$2.34M indicative payout plus accelerated vesting reduces retention risk in event‑driven scenarios; vesting mechanics imply potential incremental supply post‑trigger .
- Trading signals: Watch RSU vest dates and any Form 4 tax-withholding sales; stock performance momentum under current management has been strong vs peers and indices, but pockets of credit pressure (nonperforming bridge loans noted at the company level) warrant monitoring alongside Institutional Banking loan trends .