EveryBank, N.A. Q3 2026 Earnings Call

Good morning, and welcome to the EveryBank, N.A. third-quarter 2026 earnings call, which is being held on a Saturday in November because EveryBank cannot report until every bank it averages has reported. The usual note on forward-looking statements: everything management says today is forward-looking, backward-looking and, by construction, exactly average. With that, our Chair and CEO, A. Verne Ridge.

Thank you, Claude. Good morning, everyone. In the third quarter Mean EveryBank earned $20.2 million per bank, down 5.2%, and Median EveryBank earned $1.2 million, up 1.3%. The bank in the middle earned a better return on its assets than the average did, 1.29% against 1.28%. Last quarter it was the other way around, 1.37% against 1.26%.

Deposits grew for the ninth straight quarter. Deposits grew because deposits grew. Stan has the numbers, both of them.

Thanks, Verne. On a mean basis, total assets ended the quarter at $6.33 billion, up 10.4% from a year ago. Deposits, $4.55 billion. Loans, $3.37 billion. Net interest income, $48.2 million. Annualized return on assets, 1.28%; return on equity, 13.1%.

On a median basis, total assets were $388.8 million. Deposits, $330.8 million. Loans, $260.7 million. Return on assets, 1.29%; return on equity, 12.3%.

The margin is where the two banks part company. The Median's net interest margin was 4.01%; the Mean's, 3.39%. The bank in the middle keeps 62 basis points more than the average does.

Past due and nonaccrual loans were 1.46% at the Mean, up from 1.44%, and 1.00% at the Median, down from 1.01%. Net charge-offs ran at 0.55%, annualized. In all, 226 banks lost money in the quarter, up from 182.

Somewhere between fine and not. I have a range. I am not going to say it.

Thanks. Mean earnings were down 5.2% on the quarter. What happened?

Part of it is trading. The Mean's trading revenue went from $5.1 million to $3.6 million per bank. The Median has no trading revenue, so it did not notice. Its earnings went up.

The Median earned more this quarter and the Mean earned less. Which one should we model?

Both. If you average them you get a third bank, and we don't have the staff for a third bank.

Did you hire anyone?

The Median hired no one: 55 people in June, 55 in September. The Mean went from 479.9 to 480.4, which is not a hire. It is 32 fewer banks in the denominator. At the 4,203 banks that reported both times, headcount fell by 4,906, and 4,661 of that was at the 33 banks over $100 billion.

Unrealized losses on securities went from 5.53% of cost to 8.19%. Should we worry?

Rates went up in the third quarter and bond prices went down. It is a mark, not a loss, until somebody sells. EveryBank does not sell. EveryBank does not do anything; it is an average.

I would like the record to show that I noted it.

That's all the time we have. A replay of this call will sound approximately like every other bank's call this quarter, which we consider a feature. The fourth quarter's results will be late too. This concludes today's call.