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Evergreen Bank Group reports record earnings and provides updates on digital and FinTech strategies.

Evergreen Bank Group reports record earnings and provides updates on digital and FinTech strategies.
PR Newswire
OAK BROOK, lll., Feb. 14, 2022

OAK BROOK, lll., Feb. 14, 2022 /PRNewswire/ —

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Evergreen Bank Group reports record earnings and provides updates on digital and FinTech strategies.

PR Newswire

OAK BROOK, lll., Feb. 14, 2022

OAK BROOK, lll., Feb. 14, 2022 /PRNewswire/ --

Record Earnings 
Bancorp Financial, Inc. (the "Company"), the parent company of Evergreen Bank Group (the "Bank" or "Evergreen") today announced record earnings for 2021. The Company's net income was $24.8 million for 2021 as compared to $11.5 million for 2020.

  • Net interest income was $59.0 million, representing a net interest margin of 4.92%, as compared to $54.6 million and a margin of 4.55% for the same period in 2020. The Bank's nationwide powersport portfolio continues to drive the strong yield on earning assets.
  • Provision for loan losses was $0.3 million for 2021 as compared to $13.9 million during 2020. The allowance for loan losses stands at 1.91%, still significantly elevated over pre-pandemic levels. The Bank has recognized very low losses from Covid and remains cautiously optimistic about continued recovery.
  • Non-interest income at the Bank was $3.0 million for 2021 as compared to $2.3 million in 2020. Non-interest expense was $30.0 million for 2021 as compared to $27.9 million in 2020, primarily due to infrastructure costs for the new digital strategy and staffing related to overall growth.
  • Total assets were $1.20 billion at December 31, 2021, down 3.7% from $1.25 billion from year-end 2020 primarily due to lower loan demand. Commercial lending growth has been challenging as the Bank's primary focus has been on current customers impacted by Covid-19.
  • Powersport demand is at an all-time high, but 2021 originations were only up slightly as 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 solid loan growth in 2022. Other lending areas within the Bank have also seen lower growth because of the ongoing pandemic but are also expected to pick up pace throughout 2022.

Looking ahead to 2022 - "While we are projecting strong earnings in 2022, we do not expect net income to reach our 2021 levels. We are projecting some net interest margin pressure as the Fed moves short term rates. Plus, we plan to add more to the provision as we are projecting the record low loan loss rates in 2021 will reverse back to historical loss rate numbers. The provision will also increase as we account for higher loan growth in 2022. In addition, we are committed to aggressive technology investments as it relates to our digital and FinTech strategies. We truly believe the financial institutions with the best technology will create the most shareholder value and long-term profitability," said Jill Voss, EVP and Chief Financial Officer.

Shareholder Dividend 
The Company was excited to pay its first quarterly shareholder dividend in 8 years. In December the Board of Directors declared a $.20 dividend per share outstanding that was paid to shareholders of record as of December 31, 2021 in January 2022.    While capital and earnings continue to be strong, the Company intends to continue to pay a quarterly dividend throughout 2022.

 

BALANCE SHEETS


Assets

Unaudited
12/31/2021


Audited
12/31/2020

Cash and cash equivalents

$       116,536,612


$       153,516,636

Investments

96,113,046


85,362,728

Loans, net

951,287,254


972,799,291

Bank owned life insurance

12,680,356


13,088,565

Other assets

24,179,299


22,181,794

Total Assets

$ 1,200,796,567


$ 1,246,949,014





Liabilities and Stockholders' Equity




Deposits

$       994,057,949


$     1,048,619,471

Notes Payable

57,700,000


63,426,647

Subordinated debt

0


12,500,000

Other liabilities

14,510,993


9,558,419

Total Liabilities

$ 1,066,268,942


$ 1,134,104,537

Stockholders' Equity

$    134,527,625


$    112,844,477

Total Liabilities and Stockholders' Equity

$ 1,200,796,567


$ 1,246,949,014





Evergreen Bank Group Capital Ratios:




Common equity tier 1 capital ratio

15.61%


13.07%

Tier 1 risk-based capital ratio

15.61%


13.07%

Total risk-based capital ratio

16.89%


14.33%

Tier 1 leverage ratio

13.23%


10.72%

 

INCOME STATEMENTS





Unaudited YTD
2021


Audited YTD
2020

Interest income on loans

64,454,874


68,356,649

Interest income on investments and cash in banks

$             1,871,103


$             2,450,211

Total Interest Income

$      66,325,977


$      70,806,860

Interest expense on deposits

5,840,556


14,151,591

Interest expense on debt

1,519,705


2,047,230

Total Interest Expense

$         7,360,261


$      16,198,821

Net Interest Income

$      58,965,716


$      54,608,039

Provision for loan losses

325,000


13,900,000

Other non interest income

3,044,165


2,332,711

Other non interest expense

29,996,559


27,872,360

Net Income before Taxes

$      31,688,322


$      15,168,390

Income tax expense

6,940,268


3,669,644

Net Income

$      24,748,054


$      11,498,746

Return on Average Assets

2.03%


1.07%

Return on Average Equity

19.82%


12.14%

Accelerating Digital Strategy and FinTech Integrations

Evergreen will be launching phase one of its robust best-in-class digital banking solution in March 2022. The enhancements will focus on the Evergreen brand with subsequent phases focused on the Bank's powersport divisions, FreedomRoad Financial and Performance Finance. Evergreen partnered with several premier financial technology companies ("FinTechs") to greatly enhance the customer digital banking experience, both via a computer or mobile device. Current and new customers will be able to open deposit accounts on their mobile device or online in just minutes. "We truly believe our new digital solutions and FinTech partnerships that we plan to roll out over the next several quarters will rival any Neobank or Tech-Savvy National Bank," said Darin Campbell, President & CEO.

March 2022 New Digital Banking Launch Will Include:

Digital Account Opening for Deposits – Evergreen will be launching an award winning and entirely digital and fully automated platform – offering customers the ability to open accounts in just over 2 minutes. The solution will also be fully integrated to support the automated onboarding process by combining 120 plus data points related to Know-Your-Customer (KYC) checks to enhance fraud prevention.

Online and Mobile Banking – Evergreen will be launching an award winning and entirely digital and fully automated platform – focused on a superior user experience that aligns with the customer's daily life.

Fintech Marketplace – The Evergreen solution will leverage AppXchange and APIs – offering two new fully integrated financial wellness tools:

  • Insurance App – The award winning and top-rated insurance company digital solution offers the easiest and fastest way for customers to switch to better homeowners and renters insurance options.
  • Lower Your Bills App – This 4-star service is like having your own personal account manager and will help lower customers' monthly bills. The service will negotiate recurring monthly bills (i.e., internet, cable, satellite, mobile/wireless, home security, and other services), and help cancel unwanted subscriptions (e.g., a monthly shave club).

Personal Financial Management Solution – Evergreen will be launching an award-winning solution that is securely integrated in the new digital banking platform. This best-in-class solution provides customers with a seamless experience for viewing all their data on our single platform. Budgeting, account aggregation, auto-categorization, and debt management tools will be available to customers.

Mobile Wallets – Apple Pay and Google Pay are securely connected to the Evergreen debit card - replacing the physical card and cash with an easier,  more secure and private payment method.

Mobile Remote Deposit Capture – Evergreen will be launching best-in-class mobile remote deposit capture technology – offering customers the highest mobile check image acquisition rates in the industry.

Bill Pay & Person-to-Person – Evergreen will be launching industry-leading payment and transfer solutions – offering customers the latest digital payment technology when paying bills (one-time, future, and recurring) and when transferring money to another individual's account.

"We are extremely excited to launch phase one of our new digital strategy in March. The upgrades we're making over the next 18 months will be robust – stay tuned for phase two and three of our plan as we will be rolling out several industry leading upgrades to our platform," said Dan Inendino, SVP – Head of Digital Banking & Chief Marketing Officer.

"Prelude to phase two will be separate branded solutions for our national powersport lending divisions (FinTechs), FreedomRoad Financial and Performance Finance. We are excited to offer this new technology to our current loan-only customers and the thousands of new customers we add nationally each month. Our ability to seamlessly cross-sell competitive deposit products, along with integrated FinTech Marketplace products, to our large national customer base will only increase customer loyalty and drive additional profitability," said Darin Campbell, President & CEO.

National Digital Lending Strategy:

Loan Origination System (LOS) Enhancements – Evergreen plans to launch new enhancements to the current LOS along with several new digital lending applications over the next several quarters – offering original equipment manufacturers (OEMs), dealers, and all consumer customers best-in-class direct and indirect lending options.

"We are laser focused on simplifying the loan process for our dealers and customers. We are adding more features for dealers to instantly make changes from application to funding, offer pre-approved options, mobile device options, advanced contracting, and expanded automated decisioning. We love our dealers, and they are the lifeblood of our business. We are always looking for ways to make their lives easier and help them sell units," said Tom Collins, EVP – Head of Powersport Lending.

FinTech Banking Strategy:

Banking-as-a-Service (BaaS) – Evergreen plans to work with a partner to launch a FinTech partnership program – offering banking services for a fee to select FinTechs.

"We don't think there is any question that bank and FinTech partnerships will lead the way to future financial services –traditional banks can ignore the change or take advantage of the tremendous opportunity to unlock a new revenue stream. We plan to partner with a proven platform that can help us manage and scale our program," said Darin Campbell, President & CEO.

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.

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SOURCE Evergreen Bank Group

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Government

Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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2 hours ago

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March 9, 2024

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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Uncategorized

February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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March 9, 2024

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Spread & Containment

Another beloved brewery files Chapter 11 bankruptcy

The beer industry has been devastated by covid, changing tastes, and maybe fallout from the Bud Light scandal.

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4 hours ago

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March 9, 2024

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Before the covid pandemic, craft beer was having a moment. Most cities had multiple breweries and taprooms with some having so many that people put together the brewery version of a pub crawl.

It was a period where beer snobbery ruled the day and it was not uncommon to hear bar patrons discuss the makeup of the beer the beer they were drinking. This boom period always seemed destined for failure, or at least a retraction as many markets seemed to have more craft breweries than they could support.

Related: Fast-food chain closes more stores after Chapter 11 bankruptcy

The pandemic, however, hastened that downfall. Many of these local and regional craft breweries counted on in-person sales to drive their business. 

And while many had local and regional distribution, selling through a third party comes with much lower margins. Direct sales drove their business and the pandemic forced many breweries to shut down their taprooms during the period where social distancing rules were in effect.

During those months the breweries still had rent and employees to pay while little money was coming in. That led to a number of popular beermakers including San Francisco's nationally-known Anchor Brewing as well as many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing filing bankruptcy.

Some of these brands hope to survive, but others, including Anchor Brewing, fell into Chapter 7 liquidation. Now, another domino has fallen as a popular regional brewery has filed for Chapter 11 bankruptcy protection.

Overall beer sales have fallen.

Image source: Shutterstock

Covid is not the only reason for brewery bankruptcies

While covid deserves some of the blame for brewery failures, it's not the only reason why so many have filed for bankruptcy protection. Overall beer sales have fallen driven by younger people embracing non-alcoholic cocktails, and the rise in popularity of non-beer alcoholic offerings,

Beer sales have fallen to their lowest levels since 1999 and some industry analysts

"Sales declined by more than 5% in the first nine months of the year, dragged down not only by the backlash and boycotts against Anheuser-Busch-owned Bud Light but the changing habits of younger drinkers," according to data from Beer Marketer’s Insights published by the New York Post.

Bud Light parent Anheuser Busch InBev (BUD) faced massive boycotts after it partnered with transgender social media influencer Dylan Mulvaney. It was a very small partnership but it led to a right-wing backlash spurred on by Kid Rock, who posted a video on social media where he chastised the company before shooting up cases of Bud Light with an automatic weapon.

Another brewery files Chapter 11 bankruptcy

Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8. In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11. 

"Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed," USCourts.gov explained. 

Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000. The filing noted that the company does expect to have funds available for unsecured creditors. 

The popular brewery operates three taprooms and sells its beer to go at those locations.

"Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina. Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works," the company shared on its website.

The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).

Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing. An email request for comment sent through the company's contact page was not immediately returned.

 

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