Evolve Bank & Trust

What Evolve Bank & Trust does

Evolve Bank & Trust is a privately held, Memphis-headquartered community bank founded in 1925 that operates across three business lines: (i) traditional consumer and commercial banking delivered through 8 branches in Tennessee and Arkansas plus a digital banking mobile app, (ii) specialized government-backed and healthcare lending (SBA 7(a)/504/Express, USDA B&I up to $25M, and a dedicated Physicians Capital unit serving practices, MSOs/DSOs and Ambulatory Surgery Centers), and (iii) an Open Banking division that provides Banking-as-a-Service infrastructure — including card issuing, card acquiring, transaction processing, FDIC sweep programs and API-based accounts — to fintech partners such as EarnIn, Step, Affirm, Airwallex, Marqeta, Mercury, Bilt, Melio, Branch and Coinstar/TabaPay.

Revenue is generated from net interest income on the loan and securities portfolio, interchange and transaction fees across consumer and BaaS accounts, program fees from fintech partners, SBA/USDA loan premiums, and trust/wealth-management fees for high-net-worth clients. Pricing on deposit products follows a standard community-bank fee schedule (e.g., $5–$10 monthly service charges waived at minimum balance thresholds, $100 minimum opening deposits, tiered savings rates), while BaaS revenue is contractually recurring. The bank holds a Visa and Mastercard principal membership, SBA Preferred Lender status, and FDIC-insured charter — capabilities that anchor partner selection.

As of mid-2025 the institution is under significant stress: assets have declined approximately 20% year-over-year to roughly $1.46B, deposits are down 20%, headcount has been cut from 500 to 381, and the bank subsidiary reported a $3M net loss in 2025 with the holding company reporting a $7.4M loss and described as functionally insolvent. Triggering events include the April 2024 collapse of BaaS middleware partner Synapse (leaving $60–95M of missing depositor funds), a 2024 LockBit ransomware breach exposing 7.6M individuals, a Federal Reserve enforcement action over AML deficiencies, the October 2025 arrest and termination of CEO Bob Hartheimer, and the September 2025 resignation of Open Banking President Hank Word. In April 2026 Evolve entered a non-binding term sheet with Coastal Financial Corp to divest up to 10 fintech BaaS programs as part of an 'Evolve 2.0' de-risking program.

Name

Evolve Bank & Trust

Legal name

Evolve Bank & Trust

Website

https://getevolved.com

Company type

Private

Founded year

1925

Operating status

Operating

Headcount range

251–500 employees

Short description

Evolve Bank & Trust is a 100-year-old Memphis-based community bank operating 8 branches across Tennessee and Arkansas, providing consumer, commercial, SBA, and healthcare lending alongside an Open Banking/BaaS platform that issues cards and provides account infrastructure to fintech partners such as EarnIn, Step, Mercury, and Coinstar.

Ownership category

akta.pro rank

Product category

Community Banking and Banking-as-a-Service (BaaS)

NAICS

Depository Credit Intermediation (5221), Savings Institutions and Other Depository Credit Intermediation (522180)

SIC

Savings Institutions, Not Federally Chartered (6036)

akta.pro primary industry

Embedded Deposit Accounts & Digital Wallet Infrastructure (FSAGALAE)

akta.pro secondary industries

Open Banking, Account Aggregation & Payment Initiation APIs (BPAMAFAJ), Digital Wallets & Account Aggregation Hub (Multi-account, Stored Value) (FSAGAAAD)

Keywords

• Community banking services
• Banking-as-a-service
• Small business lending
• Physician practice lending
• Open banking APIs

Headquarters

HQ city

Memphis

HQ country

United States

HQ region

North America

Offices9 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Others, Marketing or Sales, Infrastructure

Revenue model

1. Net Interest Income: Interest earned on loans (personal, business, mortgage, SBA) and interest paid on deposits. Core banking revenue from spread between interest earned on lending portfolios and interest paid to depositors.
2. Interchange and Transaction Fees: Fee income from debit card transactions, ATM usage, and payment processing services across consumer and business accounts.
3. Open Banking / BaaS Fees: Program fees and infrastructure charges from fintech partners utilizing the Open Banking platform for card issuing, acquiring, and account services.
4. SBA and Government Lending: Revenue from SBA 7(a) loans, SBA 504 loans, and USDA B&I loans as an SBA Preferred Lender.
5. Trust and Wealth Management: Personal trust administration, estate planning, and investment management services for high-net-worth individuals.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels4 records

Core offering

Evolve Bank & Trust is a community bank providing FDIC-insured personal and business banking products (checking, savings, IRAs, CDs, mortgages, personal and commercial loans) through 8 branches across Tennessee and Arkansas and a digital/mobile banking platform. It also operates an Open Banking division that delivers Banking-as-a-Service (BaaS) infrastructure — including card issuing, card acquiring, transaction processing, FDIC sweep programs, and accounts services — via APIs to fintech partners such as Coinstar, EarnIn, Step, Affirm, Mercury, and Marqeta.

Product overview

Evolve Bank & Trust is a community bank founded in 1925 offering a comprehensive suite of banking products through both traditional and digital channels. The bank operates a platform-plus-modules architecture combining core banking services (personal and business checking, savings, mortgages) with specialized lending divisions (SBA loans, Physicians Capital, small business lending) and an Open Banking/BaaS platform for fintech integrations. The Open Banking division provides API-based access to card issuing, card acquiring, transactions, and accounts solutions, enabling third-party developers to embed banking services. Personal banking includes eFreedom, eLife, and eUniversity checking accounts plus savings, IRAs, CDs, personal loans, and digital banking. Business banking encompasses eBusiness, eCorporate, and eCommunity checking with cash management services. The bank also offers specialized trust services for litigation and personal estate planning.

Differentiator

Problem solved

Functional benefit

Products and services

• eFreedom Checking Basic personal checking account with no monthly maintenance fee when the $250 daily ledger balance threshold and a monthly direct deposit are met, $5 monthly charge otherwise. Includes unlimited check writing, free online banking and bill pay, mobile deposit, debit card, and access to over 32,000 surcharge-free MoneyPass ATMs.
• eLife Checking Premium interest-bearing checking account that pays competitive interest rates accruing daily and compounding monthly, with the monthly service charge waived when daily ledger balance is at least $750 OR combined average loan balance/monthly direct deposits reach $50,000. Includes ATM fee reimbursements, free online banking and bill pay, and a complimentary savings account.
• eUniversity Checking Free student checking account for ages 24 and under with no monthly service charge, $100 minimum opening deposit, school ID accepted, and access to surcharge-free ATMs nationwide. Includes free online banking and bill pay.
• Personal Savings FDIC-insured savings account with $100 minimum opening, competitive interest rates compounding quarterly, and a $5 quarterly service charge waived if the daily balance is $250 or more. Includes a $2.00 fee on each debit over 6 per quarter.
• High Yield Savings Tiered-interest savings account with a $10,000 minimum opening requirement, interest accruing daily and compounding monthly, six pre-authorized debits per month (three by check/draft/debit), and a $10 monthly service charge waived when a $2,500 minimum daily balance is maintained.
• Money Market Savings Money market savings account with check-writing access, tiered interest rates, $2,500 minimum opening, and a $10 monthly service charge waived if the minimum daily balance is maintained.
• Traditional IRA Individual Retirement Account with tax-deferred growth, potential income-tax deduction on contributions, and Required Minimum Distributions beginning at age 73.
• Roth IRA Retirement account funded with after-tax dollars offering tax-free qualified withdrawals in retirement with no Required Minimum Distributions during the owner's lifetime.
• Rollover IRA IRA for transferring funds from employer-sponsored retirement plans such as 401(k)s without triggering taxes or penalties.
• Certificates of Deposit (CDs) Low-risk savings certificates with fixed interest rates, a $1,000 minimum opening deposit, varied term lengths, a 10-day grace period at maturity, and early-withdrawal penalties.
• Personal Loans Flexible consumer lending products including residential mortgages, construction lending, Home Equity Lines of Credit (HELOC), and auto loans with competitive rates.
• Digital Banking Platform Evolve Digital Banking online and mobile app (iOS and Android) providing 24/7 account access, mobile check deposit, fund transfers, bill pay, real-time alerts, and advanced security features including biometrics and multi-factor authentication.
• Private Banking Wealth management offering for high-net-worth individuals including investment management, estate and legacy planning, custom lending solutions, and dedicated relationship managers.
• Personal Trust Services Trust administration services including revocable and irrevocable trusts, generation-skipping trusts, special-needs trusts, and investment management for beneficiaries.
• eBusiness Checking Business checking account with digital-first features, $100 minimum opening, $10 monthly service charge if daily balance is below $2,500, 250 free monthly transactions ($0.25 per additional item), free online banking, and mobile deposits.
• eCorporate Checking Premium interest-bearing business checking for established businesses with account analysis fee schedule, enhanced treasury management, multi-user access, and integrated payment solutions.
• eCommunity Checking Free checking account with no monthly service charges designed for governmental entities, non-profit organizations, and schools, with customizable account structures for grant management.
• Cash Management Business cash management services including remote deposit capture, lockbox, ACH payments, automated reconciliation, sweep accounts, and merchant services for SMB and corporate clients.
• CapitalExpress Accounts-receivable financing solution that converts outstanding invoices into immediate working capital, advancing up to 90% of invoice value upfront to small and mid-sized businesses.
• Physicians Capital Specialized lending solutions for healthcare providers covering practice acquisition, commercial real estate, equipment financing, and Ambulatory Surgery Center (ASC) loans for physicians, MSOs and DSOs.
• SBA Loans Small Business Administration-backed loans including SBA 7(a) loans for working capital and equipment, SBA 504 loans for owner-occupied real estate and equipment, and SBA Express loans with streamlined approval, delivered under the bank's SBA Preferred Lender status.
• USDA B&I Loans USDA Business and Industry loan guarantees for rural businesses with loan amounts up to $25 million for real estate, equipment, and working capital.
• Litigation Trust Services Financial solutions for complex legal settlements including settlement preservation trusts, bankruptcy custody and liquidation trusts, and litigation recovery trusts.
• Open Banking (BaaS Platform) Banking-as-a-Service platform exposing APIs for Card Issuing, Card Acquiring, Transactions, and Accounts that lets fintech partners embed FDIC-insured banking products (cards, accounts, sweeps) directly into their applications.
• FDIC Sweep Programs Deposit sweep programs that maximize FDIC insurance coverage for business and personal accounts by spreading funds across partner institutions through the Insured Cash Sweep network.
• Mortgage Solutions Residential mortgage offering spanning Conventional Home Loans, VA Home Loans, Refinance, Down Payment Assistance, Government Programs, Investment Properties, and the Medical Professionals Mortgage Program.

Named customers10 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature4 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• CoinstarcoreStrategic or Co-development Partner · 29 May 2026Expanded partnership with TabaPay and Evolve Bank enabling consumers to transfer cash or coins directly to any eligible U.S. debit card at over 10,000 Coinstar kiosks nationwide. Evolve Bank serves as the program bank ensuring compliant and secure transactions. Service leverages TabaPay's money movement platform and card network connections.
• TabaPaycoreTechnology or IntegrationMoney movement platform provider and card network connector for the Coinstar Transfer to Account service. Provides fraud prevention tools and least-cost transaction routing.
• MastercardcoreTechnology or IntegrationCard network partner providing payment processing infrastructure. Evolve is a member of Mastercard.
• VisacoreTechnology or IntegrationCard network partner. Evolve is a member of Visa. Visa powers the EarnIn Card issued through Evolve Bank.
• EarnIncoreTechnology or IntegrationLive Pay real-time paycheck streaming service through EarnIn Card issued by Evolve Bank & Trust powered by Visa. EarnIn provides income access and financial wellness tools.
• StepcoreTechnology or IntegrationTeen banking app partner providing credit and debit cards, interest-bearing accounts, and financial literacy for young users. Platform acquired by Beast Industries (MrBeast's company) in February 2026.
• Coastal Financial CorpminorStrategic or Co-development PartnerNon-binding term sheet signed to evaluate acquiring assets from up to 10 of Evolve's fintech client programs as part of Evolve's de-risking effort. Includes potential acquisition of Step platform.

Scale indicators11 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Cross River Bank: New Jersey-chartered community bank widely regarded as the leading sponsor bank for fintechs and BaaS programs (lending, payments, crypto). Closest analog to Evolve's Open Banking business model and target customer base.
• Piermont Bank: New York-chartered community bank that has built a BaaS and digital-banking platform for fintechs and small businesses. Comparable community-bank scale with embedded-finance focus.
• Celtic Bank: Utah industrial bank with a long-running focus on BaaS, prepaid card issuing, and fintech sponsor-bank programs. Closely comparable deposit-account and card-issuing infrastructure for fintech partners.
• First Internet Bank: Indiana-chartered digital-first community bank offering consumer and small-business banking primarily through online channels. Comparable community-bank scale and digital-banking distribution model.
• Live Oak Bank: North Carolina-chartered community bank specializing in SBA lending across multiple verticals (healthcare, veterinary, agriculture). Directly comparable to Evolve's SBA Preferred Lender business and Physicians Capital healthcare lending niche.
• Sutton Bank: Ohio-chartered community bank known for BaaS partnerships including prepaid card programs for Green Dot and other fintechs. Closely comparable model of an FDIC-chartered community bank providing embedded banking infrastructure to fintech partners.
• Blue Ridge Bank: Virginia-chartered community bank that has built a significant BaaS / fintech-partner banking business. Comparable small-bank balance sheet size and similar focus on embedded banking-as-a-service revenue.
• Coastal Financial Corp: Washington-state community bank holding company actively evaluating acquisition of up to 10 of Evolve's fintech BaaS programs (including Step). Comparable regional-bank scale and BaaS-adjacent strategy.
• Column (Column Bank): California-chartered digital-first bank offering API-based banking infrastructure, including pooled deposit accounts alongside partner banks like Evolve (Bilt relationship). Comparable BaaS API-first positioning.

Broad incumbents

• JPMorgan Chase: Largest U.S. bank with broad consumer, commercial, and embedded-finance capabilities including BaaS offerings (Chase for Business, WePay). Establishes the upper bound of competition Evolve faces across both community banking and fintech sponsor banking.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Instagraminstagram.com/getevolved
• Xx.com/getevolved1925

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Evolve Bank & Trust