Oct 2021 Evergreen Bank Group, one of the Chicago area's most dynamic, independently owned banks, announced today its year-to-date financial results for 2021, key national expansion plans, and industry recognition.
10/27/2022
Evergreen Bank Group, Oak Brook, IL | October 27, 2021
Strong Financial Results
Bancorp Financial, Inc. (the “Company”), the parent company of Evergreen Bank Group (the “Bank” or “Evergreen”) today announced strong financial results as of September 30, 2021. The Company’s net income was $17.843 million for the nine months ended September 30, 2021 as compared to $9.689 million for the same period in 2020.
- Net interest income at the Bank for the first nine months of 2021 was $44.266 million, representing a net interest margin of 4.84%, as compared to $40.106 million and a margin of 4.39% for the same period in 2020. The Bank’s powersport portfolio continues to drive the strong yield on earning assets.
- Provision for loan losses was $.525 million for the first nine months of 2021 as compared to $8.300 million during the same period in 2020. The allowance for loan losses stands at 1.99%, still significantly elevated over pre-pandemic levels. The Bank has recognized low losses as a result of Covid and remains cautiously optimistic about continued recovery.
- Non-interest income at the Bank was $2.496 million for the first nine months of 2021 as compared to $1.744 million in 2020.
- Non-interest expense was $22.792 million for the first nine months of 2021 as compared to $20.587 million in 2020, primarily due to infrastructure costs for the new digital strategy and staffing related to overall growth.
Net income for the 2021 calendar year is on a record pace for the bank and the company. “Our robust margin and limited losses have fueled stellar financial results this year”, said Jill Voss, Chief Financial Officer. “Due to limited loss projections for the remainder of the year, the bank is in a strong position to reverse some of the 2020 allocation for loan losses and still maintain a solid coverage as we are going into the 4th Quarter of 2021.”
Total assets were $1.220 billion on September 30, 2021, down 2.2% from $1.247 billion on December 31, 2020 primarily due to lower loan demand. Commercial lending growth has been challenging as the primary focus has been on current customers impacted by Covid-19. Additionally, there have been fewer physical contacts and in-person touchpoint opportunities to source new business due to pandemic concerns and social distancing measures. Powersport demand is at an all-time high, but 2021 originations are only up slightly as powersport inventories have been lower in 2021 because of supply chain issues. As powersport inventory issues are resolved throughout 2022, pent up demand should result in substantial loan growth in 2022. Other lending areas within the Bank have also seen lower growth as a result of the ongoing pandemic but are also expected to pick up pace over the next few quarters.
| BALANCE SHEETS | ||
| Assets | Unaudited 9/30/2021 |
Audited 12/31/2020 |
| Cash and cash equivalents | $ 122,664,620 | $ 153,516,636 |
| Investments | 103,788,103 | 85,362,728 |
| Loans, net | 957,687,966 | 972,799,291 |
| Bank owned life insurance | 12,602,613 | 13,088,565 |
| Other assets | 22,816,818 | 22,181,794 |
| Total Assets | $ 1,219,560,120 | $ 1,246,949,014 |
| Liabilities and Stockholders' Equity | ||
| Deposits | $ 1,018,976,911 | $ 1,048,619,471 |
| Notes Payable | 56,207,997 | 63,426,647 |
| Subordinated debt | 0 | 12,500,000 |
| Other liabilities | 13,885,762 | 9,558,419 |
| Total Liabilities | $ 1,089,070,670 | $ 1,134,104,537 |
| Stockholders' Equity | $ 130,489,450 | $ 112,844,477 |
| Total Liabilities and Stockholders' Equity | $ 1,219,560,120 | $ 1,246,949,014 |
| Evergreen Bank Group Capital Ratios: | ||
| Common equity tier 1 capital ratio | 14.93% | 13.07% |
| Tier 1 risk-based capital ratio | 14.93% | 13.07% |
| Total risk-based capital ratio | 16.18% | 14.33% |
| Tier 1 leverage ratio | 12.81% | 10.72% |
| INCOME STATEMENTS | Unaudited YTD September 2021 |
Unaudited YTD September 2020 |
| Interest income on loans | 48,930,093 | 51,069,898 |
| Interest income on investments and cash in banks | $ 1,384,872 | $ 1,988,693 |
| Total Interest Income | $ 50,314,965 | $ 53,058,591 |
| Interest expense on deposits | 4,820,733 | 11,403,401 |
| Interest expense on debt | 1,227,971 | 1,549,335 |
| Total Interest Expense | $ 6,048,704 | $ 12,952,736 |
| Net Interest Income | $ 44,266,261 | $ 40,105,855 |
| Provision for loan losses | 525,000 | 8,300,000 |
| Other non-interest income | 2,495,665 | 1,744,403 |
| Other non-interest expense | 22,792,113 | 20,587,310 |
| Net Income before Taxes | $ 23,444,813 | $ 12,962,948 |
| Income tax expense | 5,602,209 | 3,274,334 |
| Net Income | $ 17,842,604 | $ 9,688,614 |
| Return on Average Assets | 1.96% | 1.07% |
| Return on Average Equity | 19.58% | 12.14% |
Evergreen Bank Group and Polaris Sales Inc. Renew and Expand Multiyear Retail Financing Program Contract
Evergreen Bank Group and Polaris Sales Inc., recently agreed to a multi-year financing services program agreement, expanding the relationship between the two companies. The Bank focuses on providing financing to Polaris customers through its Performance Finance division. Performance Finance is a trademark of Polaris Industries Inc. and Indian Motorcycles International LLC.
Since 2016, Performance Finance has provided Polaris customers with innovative financing solutions through Indian Motorcycle’s independent network of national dealers. “Our long-standing relationship with Polaris has been a winning combination – and we are extremely excited to expand our relationship by making our premium financing programs available to the large network of Polaris Off-Road dealers. This will position our company for solid growth over the next several years,” said Darin Campbell, President & CEO.
Launching “Best in Class” Digital Strategy
During the remainder of 2021 Evergreen is focused on enhancing its technology capabilities through several initiatives. Evergreen has partnered with a premier financial technology (“fintech”) company to launch new best-in-class omni-channel online banking, mobile banking, and online account opening solutions across all three of its brands – Evergreen Bank Group, FreedomRoad Financial and Performance Finance. Each brand will launch new online banking platforms and new mobile apps, which will greatly enhance the customer experience when banking anywhere via a computer or mobile device and allow current and new customers the ability to open a deposit account online in just minutes.
In addition to convenient features such as mobile check deposit and bill pay, Evergreen has also partnered with a leader in data aggregation to power a new personal financial management tool within the new platform, giving customers a 360-degree view of all their accounts. The Evergreen Bank Group brand is expected to launch in the first quarter of 2022, with the FreedomRoad Financial and Performance Finance brands launching in mid-2022. Evergreen will look to expand the product and service offerings within the platform throughout 2022.
To assist in the rollout of the new platform, Evergreen will also be enhancing its marketing and customer service capabilities. Evergreen is working to launch a premier customer relationship management system, expected in 2022. “We’re extremely excited about the steps we’ve taken in our digital transformation process,” said Dan Inendino, SVP - Treasurer & Chief Marketing Officer. “The upgrades we’re making to our banking and servicing platforms will greatly enhance the customer experience and provide a platform for organic growth years into the future.”
“Our ability to raise and service deposits nationally fits perfectly with our business model as we continue to expand our consumer lending presence nationally. The new platforms will allow the Bank to generate low-cost deposits to fund our growing consumer finance programs and allows for tremendous scalability.” said Darin Campbell, President & CEO.
Awarded Best Places to Work
Evergreen Bank Group was recently named one of the “Best Banks to Work For” by American Banker. The 2021 award is the sixth time Evergreen has received this honor. This prestigious award is based largely on employee feedback – along with other data such as company perks, benefits, diversity, and satisfaction with management. “We are very proud of this acknowledgement and truly believe this would not be possible without the organization’s valued employees and associates, “said Darin Campbell, President & CEO.
In addition to this prestigious recognition, Evergreen has also been consistently recognized among the Best Places to Work in Chicago. Earlier in 2021, the Bank was named by Crain’s Chicago Business as one of its Best Places to Work for the fourth year in a row.
“Our management team puts a great deal of effort into employee satisfaction because we believe in retaining and attracting high-quality staff,” said Jenny Voss, VP - Human Resources. “Our employees are the reason we have earned the reputation of giving our retail and commercial customers outstanding service, and we are working hard to keep it that way!”
Evergreen Bank Group (the “Bank”) is an Illinois-chartered community bank wholly-owned by Bancorp Financial, Inc., a Delaware corporation (the “Company”). The Bank was formed in 1999 and became a subsidiary of the Company as a result of a merger transaction during 2007. The Bank is headquartered in Oak Brook, Illinois.
This document contains certain forward-looking statements as defined in applicable federal securities laws. These forward-looking statements describe future plans or strategies and may include the Company’s and the Bank’s expectations of future results. The Company’s and the Bank’s ability to predict results or the effect of future plans or strategies or qualitative or quantitative changes is inherently uncertain. Actual results may differ materially from stated expectations.
###