Financial Review Q3 2020
The 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.View entire presentation