Financial Review Q3 2020 slide image

Financial Review Q3 2020

The Bancorp FINANCIAL REVIEW: EARNINGS AND PROFITABILITY REVENUE HAS GROWN CONSISTENTLY SINCE 2016 WHILE EXPENSES HAVE BEEN TIGHTLY MANAGED, CREATING OPERATING LEVERAGE REVENUE Annual revenue growth driven by diverse product mix Larger portion of revenue from non- interest income compared to peer banks Net interest income growth driven by growth in balances across business lines $ Millions $250 $200 $150 $100 $50 CORE REVENUE 1 $ Millions NON INTEREST EXPENSE $250 +47% '16-'19 (15%) '16-'19 $200 $0 2016 2017 2018 2019 Q3 YTD Q3 YTD 2019 2020 $150 $100 $50 $0 2016 2017 2018 2019 Q3 YTD Q3 YTD 2019 2020 1Core revenue is net interest income plus non-interest income excluding gains/losses from sales of securities, changes in valuation to Walnut Street and the sales of Health Savings Accounts, the European payments business, and the IRA portfolio. 2 Includes $24.3 million of gains on commercial loans originated for sale, primarily through two securitizations. . EXPENSE Expenses have been tightly managed since 2017 Expense saves have continued to be realized and have funded critical BSA and other infrastructure which has attracted new clients 2019 includes a $7.5M civil money penalty related to consent order remediation. In 2020, subsequent to the civil money penalty, the related consent order was lifted 25
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