Evolve's finances 2019-2026: growth, losses and audits

analysisFDIC call-report data, which cover the bank alone, show year-end total assets of $451.3 million in 2019, $691.6 million in 2020, $788.1 million in 2021, $1.75 billion in 2022, $1.43 billion in 2023, $1.81 billion in 2024 and $1.29 billion in 2025, with deposits of $373.6 million, $514.8 million, $639.1 million, $1.54 billion, $989.3 million, $1.33 billion and $1.07 billion. Net income was between $4.7 million and $25.5 million a year from 2019 to 2024, peaking in 2022, followed by a net loss of $3.0 million in 2025. Senators described the jump to $1.75 billion as growth after the move to Banking-as-a-Service. The Arkansas regulator gives the bank's total assets as $34.8 million at mid-2006 and $1.46 billion at mid-2025. ^{1 2 3 4 5}

analysisThe holding company's June 2022 letter reported that in the first quarter of 2022 the Open Banking Division's non-interest income rose 83.8% to $9.3 million, from wire, ACH, card and other payment services, and that it processed 113.2 million transactions against 62.8 million a year earlier. ⁶

analysisAt the end of 2025 the FDIC data show uninsured deposits of $411.9 million, equity of $162.4 million and tier 1 capital of $158.3 million; at June 30, 2026 they show total assets of $1.19 billion, deposits of $980.9 million and a year-to-date net loss of $865,000. A regional business publication reported on October 27, 2025 that the bank lost $8.76 million in the first half of 2025 and that chief executive Hartheimer said losses would continue into the next year while it installed guardrails; it described the bank as having five Arkansas branches. ^{1 2 3}

analysisReading the fourth-quarter 2025 call report, a fintech industry newsletter reported a year-to-date loss of $14 million at the end of September narrowing to $3 million for the year, helped by lower legal, consulting and advisory fees; deposits on the balance sheet down nearly 20% from a year earlier; deposit and referral fee revenue down 66%; and a leverage ratio of 11.91% and a common equity tier 1 ratio of 17.73%, well capitalised by traditional measures. It also noted a new liability of $26,153,000 described as an 'Open Banking Division Reserve'. The reserve's purpose is not disclosed; the newsletter's list of possibilities, such as further payments to end users or costs of the Synapse matter and civil cases, is speculation, and a bank representative did not respond to its questions. ⁴

analysisA fintech industry newsletter reported, from audit reports the Federal Reserve released under the Freedom of Information Act, that Crowe audited the bank for 2021, 2022 and 2023 and KPMG for 2024, each giving an unqualified opinion and attesting to internal control over financial reporting, although the bank had been dealing with ledger discrepancies with Synapse of hundreds of millions of dollars since at least November 2022. According to e-mails filed in the bankruptcy, it reported, Crowe asked Synapse in February 2024 to confirm its cash balances at Evolve; Synapse's general counsel noted that the bank's account list included 113 accounts not on the daily data feed and omitted 29 that should have been there, and sought to discuss this with Scot Lenoir and the bank's outside counsel, but Evolve did not respond. The audit reports and e-mails were not retained. ¹