Q4 2020 results · quarter ended December 31, 2020

EveryBank had a perfectly average quarter.

EveryBank, N.A. is the equal-weighted composite of every institution that filed an FFIEC Call Report for the period. There is no single truth to report, so we report two: the balance sheet you get when you average every bank's dollars, and the one that describes the bank in the exact middle of the industry.

The mean bank — dragged skyward by a dozen trillion-dollar filers

Mean EveryBank

Total assets$4.37B

Total deposits: $3.27B
Total loans: $2.17B
Total equity: $444.7M
Quarterly net income: $11.8M

The median bank — the institution actually in the middle of the roster

Median EveryBank

Total assets$281.4M

Total deposits: $235.1M
Total loans: $170.3M
Total equity: $30.8M
Quarterly net income: $652K

The mean EveryBank carries 16× the assets of the median EveryBank.

Letter to shareholders

From the Office of the Chief Executive

Fellow constituents,

I am pleased to report that in the Q4 quarter EveryBank did approximately what everyone did. Deposits grew. Why did deposits grow? Deposits grew because deposits grew. Loans continued to lean on commercial real estate and single-family residential, the two lines that carry every balance sheet in this country whether the balance sheet wants them to or not. Net income reached $11.8M per institution, up 16.5% from a year ago — a figure I would love to take credit for, except that taking credit for the industry average is a category error.

We continue to run two businesses that share a charter: a globally trivial institution that a handful of trillion-dollar constituents drag into relevance in the mean, and the actual median bank, which takes deposits and makes loans in one county and has never wanted to do anything else. Net interest income of $26.1M did most of the work, as it does at nearly every constituent.

We reaffirm full-year guidance of exactly whatever happens. EveryBank has never beaten consensus and never missed it, for reasons I trust are self-evident.

A. Verne RidgeChair & Chief Executive Officer, EveryBank, N.A.

Selected financial data

Per-institution mean, quarter ended December 31, 2020.

Per-institution mean, $000s except ratios. Year-ago column is the same quarter one year prior; 2016 column is Q1 2016, the start of the series.
Metric	Q4 2020	Q4 2019	YoY	Q1 2016
Total assets	$4,372,002	$3,602,336	+21.4%	$2,661,430
Total loans & leases	$2,171,856	$2,032,104	+6.9%	$1,460,103
Total deposits	$3,265,982	$2,562,293	+27.5%	$1,823,224
Net interest income	$26,105	$26,403	-1.1%	$18,344
Net income	$11,832	$10,600	+11.6%	$6,360
Return on assets (ann.)	1.08%	1.18%	-0 bps	0.96%
Return on equity (ann.)	10.64%	10.40%	+0 bps	8.49%

Business line results

Six reportable segments. Per-institution mean for the quarter unless noted.

Community & Commercial Lending

Total loans$2.17B

SFR / NOO CRE$510.6M / $203.6M

Investment Securities

Ballast portfolioTreasuries · agency MBS · munis

Trading assets held by4.5% of banks

Wholesale Funding & Deposits

Deposits$3.27B

FHLB advances used by52.9% of banks

Capital Markets & Derivatives

IR-swap notional (mean)$59.44B

Any IR swap8.5% of banks

Mortgage Banking

Sale/servicing income (mean)$6.9M

Earns any of it10.0% of banks

Wealth, Trust & Custody

Custody (mean)$115.80B

Runs any trust business22.0% of banks

What share of American banks actually do this?

The coverage rate — the share of constituents reporting any nonzero value — is the finding hiding inside the average.

Take deposits & make loans — it's a bank

99.3%

Owner-occupied CRE lending

92.0%

FHLB advances

52.9%

Any trust / fiduciary business

22.0%

Any interest-rate swap

8.5%

Mortgage-banking income

10.0%

Hold trading assets

4.5%

FX derivatives

1.7%

Forward guidance

Management expects to remain average. Any deviation from consensus would constitute a data error rather than a surprise, and should be reported to the modeler.