EveryBank, N.A. Q3 2025 Earnings Call

Good morning, and welcome to the EveryBank, N.A. third-quarter 2025 earnings call. Everything said today is forward-looking, backward-looking and exactly average. EveryBank is a fictional composite of every bank that files a Call Report; it has no charter, no shares, and no ability to beat consensus, because it is consensus. Verne.

Thank you, Claude. This was a split-decision quarter, and I want to be upfront about it, because the board is split too.

On the balance sheet, the mean won. Mean EveryBank grew assets 7.0% year over year; Median EveryBank grew 4.4%. Loans, deposits, same story. The large constituents grew, and when they grow, we grow, whether we agreed to it or not.

On earnings, the median won, and it wasn't close. Median net income rose 31.4% from a year ago. Mean net income rose 25.4%. The typical American bank had a better year than the average American bank. I have been asked by the mean's side of the board not to say that sentence out loud. I have now said it.

We also ended the quarter with 4,376 constituents, down 140 from a year ago. Nearly all of them were acquired or merged, not failed, and the average moved on without them. We think of them fondly and exactly once.

Thanks, Verne. Two sets of books, as always.

Mean basis: total assets $5.74 billion. Deposits $4.15 billion, up 6.7%. Loans $3.02 billion, up 8.0%. Net interest income $43.3 million for the quarter, up 11.0%. Net income $18.1 million. Annualized ROA 1.26%, ROE 12.3%.

Median basis: total assets $370 million. Deposits $316 million, up 6.1%. Loans $241 million, up 6.2%. Net interest income $3.31 million, up 16.1%. Net income $1.06 million.

Funding is where it got interesting. FHLB advances fell on both books. The mean dropped 13% to $98.4 million; the median fell by more than half, to $1.0 million, and the share of banks with any advances slipped to 53.5%. Deposits came back, and the banks paid down the Home Loan Bank. For once, the mean and the median agreed on something. I've framed the chart.

Headcount: 468 FTE on a mean basis, 54 at the median. Median EveryBank hired one person this year. We don't know who. Statistically, they're lovely.

Q1

The median beat the mean on earnings growth by seven points. Is the typical community bank simply a better business than the industry?

Dana, I'd love to say yes. The theory I'd offer, and it's only a theory, is that the typical small bank's margin is recovering faster off a lower base. Sixteen-point-one percent NII growth at the median versus 11.0% at the mean is the whole story. It's not better banking. It's a different point in the same cycle. Ask me again next year and the mean may have its revenge.

Q2

You've lost 137 constituents in a year. At what point does consolidation change what EveryBank is?

Marcus, every quarter. Each small bank that leaves lifts the median a little and the mean a little more. We are the only bank in America whose size goes up when other banks disappear, and we don't book a dime of it. The day there's one bank left, the mean and the median will finally agree, and we'll close the IR department.

Q3

On the FHLB paydown: is that liquidity comfort or deposit competition letting up?

Both, within a range. Roughly half of American banks don't carry advances in any quarter, so the median bank is always one decision from zero. When deposits come back, it makes that decision. I'd watch the coverage rate, not the balance. When it drops toward 50%, the median bank is the one choosing not to borrow.

Q4

Guidance for Q4?

Tom, our guidance is the industry's outcome, whatever it turns out to be. We have never missed guidance. We have never beaten it either. We'll see you in January.

That concludes the call. A replay will be available and will sound approximately like every other bank's replay this quarter. Thank you for joining EveryBank, N.A.