EveryBank, N.A. Q2 2026 Earnings Call

Good morning, and welcome to the EveryBank, N.A. second-quarter 2026 earnings call. Before we begin, a note on forward-looking statements. Everything management says today is forward-looking, backward-looking, and, by construction, exactly average. Any statement that deviates from the industry mean should be treated as a data error and reported to our modeler. EveryBank is a fictional composite entity; it has no charter, no shares to actually trade, and no ability to surprise you. With that, I'll turn it over to our Chair and CEO, A. Verne Ridge.

Thank you, Claude, and good morning, everyone — wherever "morning" finds you, which for our workforce is four time zones simultaneously.

I'm pleased to report a quarter in which EveryBank did approximately what everyone did. Deposits grew. Why did deposits grow? Deposits grew because deposits grew. Loans expanded into commercial real estate and single-family residential — the two lines that carry every balance sheet in this country whether it wants them to or not. Net income reached $21.3 million per institution, up nearly 35% year over year, a result I would love to attribute to strategy if strategy were a thing the industry average could have.

I want to address one point directly, because a research note last quarter described us as "globally systemic." We are not. At $4.5 billion in deposits, EveryBank is not globally systemic. We are not nationally systemic. We are not regionally systemic. If every one of our roughly 480 employees and their families lived in a single town, and ours was the only bank there, we would be systemic to a town of perhaps a few thousand people. But they don't. They live in Somewhere, USA, and a meaningful share work from home. So let me be clear for the record: EveryBank is systemic to no one, and management considers that our strongest risk-management achievement.

Stan will take you through the numbers, both of them.

Thanks, Verne. As always, EveryBank reports two sets of results, and the distance between them is the only interesting thing I do.

On a mean basis — the equal-weighted average of every filer — total assets ended the quarter at $6.24 billion, up 10.4% year over year. Deposits, $4.48 billion. Loans, $3.29 billion. Annualized return on assets, 1.36%; return on equity, 13.7%.

On a median basis — the bank actually sitting in the middle of the roster — total assets were $387 million. Deposits, $327 million. Net income, $1.2 million. The mean EveryBank carries roughly 16 times the assets of the median EveryBank. I'd caution analysts modeling us to pick one and commit, because averaging the two would produce a third bank that also doesn't exist.

On headcount — and this quarter it's filed, not estimated, straight from the filing: the mean institution runs about 480 full-time equivalents; the median, 55. Yes, 55. The typical American bank is roughly fifty-five people. The gap has the same cause as everything else on this call — a dozen constituents employ hundreds of thousands each, and the arithmetic does the rest.

That's the balance sheet. Over to questions.

Q1

Morning. Simple one: which EveryBank is the real one? Because I can't put both in my model.

Dana, that's the question, and I'll give you the honest answer: the median is the real bank, and the mean is the real industry. The typical American bank looks like our median — a few hundred million in assets, no trading desk, no derivatives, taking deposits and making CRE loans in one county. The mean is what you get when you let JPMorgan into the average. Both are true. Only one has a parking lot.

Q2

On the custody and trust line — mean is what, $400-plus billion, and the median is basically zero. Any appetite to break out "Mean EveryBank" as a separate reporting entity so we can value the fee franchise?

Marcus, we've looked at it. The problem is that "Mean EveryBank" is about nine constituents wearing a trench coat. Roughly one bank in ten runs any fiduciary business at all; the mean custody figure is those few, spread across all 4,200. If we carved them out, the remaining EveryBank would have a trust department of exactly no one. So the honest disclosure is the coverage rate, not the average — and the coverage rate is 9.7%. That's the number I'd underwrite.

Q3

Thanks. On the CEO's "deposits grew because deposits grew" — I want to press on that. Are you seeing genuine funding pressure, or is net interest income just carrying the quarter?

Net interest income was $46.6 million on a mean basis, up 13% year over year, and it does carry the quarter — noninterest income is roughly a third of revenue and, for the median bank, close to a rounding error. As for the funding, I'd resist reading intent into it. We're the average. When the average bank's deposits grow, the reason is definitionally "the average bank's deposits grew." I know that's unsatisfying. It's also the entire value proposition.

Q4

Capital return. You've got 13.7% ROE and a fortress-average balance sheet. When does the board authorize a buyback?

Tom, I love the ambition. We can't buy back shares because we don't have any — you can't repurchase the arithmetic mean of a population. What I can tell you is that the population itself shrank by nearly a third over the decade, from 6,122 deposit-taking banks in early 2016 to 4,239 today, almost entirely through consolidation, which is, functionally, the industry doing its own buyback. Every time a small bank is acquired, our average ticks up and there's one fewer constituent. So we are returning capital, Tom. We're just doing it by disappearing.

Q5

Follow-up for the CRO. Given the CEO's point that you're systemic to no one — how do you think about regulatory scrutiny and tail risk?

Priya, I only speak in ranges, so bear with me. Our tail risk sits somewhere between the 5th and 95th percentile of the industry, which is to say: it is the industry's tail risk. We are not a resolution planning concern — no living will, no Category anything. The median EveryBank could fail on a Friday and be a footnote by the following Wednesday. The mean EveryBank cannot fail, because a mean has no failure mode; it has a recomputation. That distinction keeps our examiners calm and me employed.

That's all the time we have. A replay of this call will be available and will sound approximately like every other bank's call this quarter, which we consider a feature. Thank you all for joining EveryBank, N.A. — the bank defined by every bank in America. This concludes today's call.