JACKSONVILLE, Fla.--(BUSINESS WIRE)--EverBank Financial Corp (NYSE: EVER) (“EverBank”, "we", "our" or the “Company”) announced today its financial results for the quarter ended September 30, 2012.
Adjusted diluted earnings per share was $0.30 in the third quarter 2012, an 11% increase from $0.27 in the third quarter 2011. GAAP diluted earnings per share was $0.19, a 138% increase from $0.08 in the third quarter 2011.1
“We are pleased to see that our asset and deposit generation platforms produced solid earnings per share and growth across all channels in the third quarter,” said Robert M. Clements, Chairman and Chief Executive Officer. “Our recent acquisition of Business Property Lending closed on schedule and we have started integrating the operations into EverBank. We remain enthusiastic about the strategic growth and diversification benefits we believe this business will bring to EverBank and its shareholders.”
Key Highlights
- Total loans and leases were $11.4 billion at September 30, 2012, up $0.5 billion, or 5%, for the quarter and up $3.4 billion, or 42%, year over year.
- Loans and leases generated were $3.3 billion for the third quarter 2012, an increase of 19% for the quarter and 89% year over year.
- Asset quality improved as adjusted nonperforming assets were 1.29% of total assets at September 30, 2012, compared to 1.46% in the second quarter of 2012 and 1.73% for the third quarter of 2011. Annualized net charge-offs to average loans and leases held for investment were 0.25% for the three months ended September 30, 2012, compared to 0.34% in the second quarter of 2012 and 1.03% for the third quarter of 2011.1
- Deposits were $11.8 billion at September 30, 2012, up $1.0 billion, or 9%, from the second quarter 2012 and up $1.6 billion, or 16%, as compared to the third quarter of 2011.
- GAAP net income was $22.2 million for the third quarter of 2012, compared to $11.2 million for the second quarter 2012 and $7.8 million in the third quarter of 2011.
- Adjusted net income was $36.2 million for the third quarter of 2012, compared to $36.5 million for the second quarter 2012 and $25.6 million for the third quarter of 2011.1
- Tangible book value per common share was $10.29 at September 30, 2012, and excluding accumulated other comprehensive loss was $11.18.
- On October 1, 2012, we closed our acquisition of Business Property Lending, Inc. ("BPL") from GE Capital Corporation with total net assets of approximately $2.4 billion.
"The mortgage banking environment continued to strengthen in the third quarter with origination volumes increasing 12% compared to the second quarter.” said W. Blake Wilson, President and Chief Operating Officer. “Our increased investment in marketing yielded strong core deposit growth as we positioned the balance sheet to close the BPL acquisition. We also continued to invest in our retail lending strategy which we believe positions us well to capitalize on improving trends in purchase mortgage transactions.”
| 1 | A reconciliation of Non-GAAP financial measures can be found in the financial tables attached hereto. | |
Balance Sheet
Continued Balance Sheet Growth
Total assets increased by $1.5 billion, or 10%, to $16.5 billion at September 30, 2012, from $15.0 billion at June 30, 2012, and by $4.0 billion, or 32%, from $12.6 billion at September 30, 2011. Our interest-earning assets for the third quarter 2012 were largely comprised of:
- Residential loans held for investment which increased by 33% to $8.2 billion from the third quarter of 2011. During the quarter, we transferred $1.9 billion of GNMA pool buyout loans from loans held for sale to loans held for investment due to our intention to hold the loans for the foreseeable future;
- Commercial and commercial real estate loans which increased by 101% to $2.3 billion, from the third quarter of 2011;
- Commercial leases which increased by 43% to $0.7 billion, from the third quarter of 2011; and
- Investment securities which decreased by 24% to $2.0 billion, from the third quarter of 2011.
During the third quarter we accumulated a cash balance of $1.6 billion and slowed our retention of organic assets in preparation for funding the BPL acquisition which closed on October 1, 2012.
Loan Origination Activities
Organic generation of residential loans, commercial loans and leases totaled $3.3 billion for the third quarter of 2012. Retained organic production totaled $1.0 billion for the quarter, an increase of 29% and 92% compared to second quarter 2012 and third quarter 2011, respectively.
Deposit and Other Funding Sources
Total deposits grew by $1.0 billion, or 9%, to $11.8 billion at September 30, 2012, from $10.8 billion at June 30, 2012, and by $1.6 billion, or 16%, from $10.2 billion at September 30, 2011. At September 30, 2012, our deposits were comprised of the following:
- Non-interest bearing accounts were $1.5 billion, or 12%, of total deposits;
- Interest-bearing checking accounts were $2.4 billion, or 21%, of total deposits;
- Savings and money market accounts were $4.3 billion, or 36%, of total deposits;
- Global markets money market and time accounts were $1.2 billion, or 10%, of total deposits; and
- Time deposit accounts, excluding global markets, were $2.4 billion, or 20%, of total deposits.
Total other borrowings were $2.8 billion at September 30, 2012, compared to $2.5 billion at June 30, 2012. Our core deposit growth and increase in other borrowings were part of the balance sheet positioning we undertook to fund the BPL acquisition.
Credit Quality
Our adjusted nonperforming assets were 1.29% of total assets at September 30, 2012, a decrease from 1.46% at June 30, 2012. We recorded provision for loan and lease losses of $4.4 million during the third quarter of 2012, a decrease of $1.4 million, or 24%, when compared to the second quarter of 2012. Net charge-offs during the third quarter of 2012 declined to $5.3 million, from $6.6 million in the second quarter of 2012, a decline of 20%. On an annualized basis, net charge-offs were 0.25% of total average loans and leases held for investment outstanding for the third quarter of 2012, compared to 0.34% for the second quarter of 2012 and 1.03% for the third quarter of 2011.
During the third quarter of 2012, a national bank regulatory agency issued guidance that could require certain loans on our balance sheet to be accounted for as nonperforming assets, regardless of their actual and expected performance. At September 30, 2012, loans with a total outstanding balance of $31.5 million and an estimated collateral value of $26.5 million, in addition to troubled debt restructurings ("TDRs") with a total outstanding balance of $13.2 million and an estimated collateral value of $11.8 million, could potentially be impacted by the guidance. Approximately 78% of these loans affected are current, with 63% having made 24 consecutive payments, and 86% are less than sixty days past due. Approximately 71% of these TDRs are current and 96% are less than 60 days past due. First lien mortgages represent 87% of the total impacted loan balances. EverBank is finalizing the impact of this new guidance and may incur a pre-tax charge of $6.0 million to $8.0 million during the fourth quarter of 2012.
Originated Loan Repurchase Activity
During the third quarter of 2012, we experienced charge-offs of $4.7 million and recorded a provision of $1.7 million on repurchase obligations for loans sold or securitized. Our reserve declined from $34.0 million in the second quarter to $31.0 million in the third quarter. We continue to be well reserved with approximately 10 quarters of coverage based on the average quarterly loss rate over the trailing four quarters. Trends continue to be stable with severities declining over the last twelve months to 45% in third quarter 2012, compared to 54% in the third quarter 2011. We continue to believe that our 0.09% total loss rate is indicative of our disciplined underwriting guidelines and risk management culture.
Capital Strength
Total shareholders' equity was $1.3 billion at September 30, 2012, compared to $1.2 billion at June 30, 2012. The bank’s Tier 1 leverage ratio was 8.0% and total risk-based capital ratio was 16.1% at September 30, 2012. As a result, the bank is considered "well-capitalized" under all applicable regulatory guidelines.
During the third quarter, we issued, via a private placement, approximately 4.0 million shares of common stock at a price of $12.065 per share in connection with the conversion of $48.7 million from a cash escrow into a common stock escrow related to our 2010 Tygris Commercial Finance Group, Inc. acquisition. The newly issued shares will remain in escrow pursuant to the terms of the original escrow agreement.
Income Statement Highlights
Net Interest Income
For the third quarter of 2012, net interest income increased $1.2 million to $126.2 million, from $125.0 million for the second quarter of 2012. This increase was attributable to higher commercial lending volumes driven by our warehouse finance and lender finance businesses and resulted in a $4.7 million increase in interest income during the quarter. Interest expense increased by $3.5 million during the quarter as the Company increased deposits and borrowings to execute on its balance sheet positioning in advance of the BPL acquisition.
Net interest margin decreased to 3.66% for the third quarter from 3.86% in the second quarter. The change in net interest margin was primarily driven by the growth in floating rate, short duration assets through increased levels of warehouse finance and lender finance originations combined with an increase in interest expense on deposits and borrowings. During the third quarter, we entered into commitments for fixed rate advances to support the acquisition of BPL.
Noninterest Income
Noninterest income for the third quarter of 2012 increased by $23.2 million, or 31%, to $97.3 million compared to the second quarter of 2012. This increase was driven by production revenues and gain on sale of loans which increased by $16.5 million, or 21%, to $96.3 million. The increase in noninterest income also reflects a $9.6 million improvement in the net loan servicing loss from $21.8 million for the second quarter to $12.2 million for the third quarter of 2012. Net loan servicing loss includes a non-cash mortgage servicing rights ("MSR") valuation allowance of $18.2 million, compared to a valuation allowance of $30.1 million in the second quarter of 2012, as well as MSR amortization expense of $36.3 million, compared to amortization of $34.1 million in the second quarter of 2012. These changes were primarily related to an extension of the historic low interest rate environment which resulted in strong residential origination volumes of $2.5 billion and elevated servicing pay-off activity.
Noninterest Expense
Noninterest expense for the third quarter of 2012 increased by $8.2 million, or 5%, to $184.0 million from $175.8 million in the second quarter. Salaries, commissions and employee benefits increased by $9.1 million, or 12%, with $5.1 million attributed to hiring activity and investments in retail lending. Approximately 10% of our noninterest expense is variable and tied to mortgage origination levels. General and administrative expense, excluding credit-related expenses, decreased by $6.5 million, or 12%, from the second quarter as decreases in professional fees and other expenses were partially offset by increased advertising and marketing expense.
We continued to invest in our retail lending strategy during the third quarter. We added approximately 150 FTEs and have added approximately 350 FTEs in our retail channel year to date. Noninterest expense directly related to our retail expansion was $14.6 million for the third quarter and $27.1 million year to date. Loan production volume from our retail channel was $513 million in the third quarter, an increase of $248 million, or 94%, from second quarter and $422 million, or 465%, from the first quarter. We continue to capitalize on the changing industry landscape and are well positioned to benefit from a return to purchase driven origination volumes.
Credit-related expenses for the third quarter increased $4.3 million, or 21%, to $25.1 million from $20.8 million in the second quarter 2012. Key drivers of the increase include increased investments and related expenses to our GNMA pool buyout loans and an increase in foreclosure and REO expense related to the Bank of Florida portfolio, offset by lower repurchase reserve expenses.
Income Tax Expense
Our effective tax rate for the third quarter of 2012 was 37%, compared to 37% for the third quarter of 2011.
Segment Analysis
- Banking and Wealth Management adjusted pre-tax income was $52.0 million, including other credit-related expenses, foreclosure and OREO expenses of $19.3 million.
- Mortgage Banking adjusted pre-tax income was $37.3 million, including other credit-related expenses, foreclosure and OREO expenses of $5.7 million.
- Corporate Services had an adjusted pre-tax loss of $31.5 million.
Dividend
On October 23, 2012, the Company's Board of Directors declared a quarterly cash dividend of $0.02 per common share, payable on November 20, 2012, to stockholders of record as of November 5, 2012.
Forward Looking Statements
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s asset growth and earnings, industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: deterioration of general business and economic conditions, including the real estate and financial markets, in the United States and in the geographic regions and communities we serve; risks related to liquidity; changes in interest rates that affect the pricing of our financial products, the demand for our financial services and the valuation of our financial assets and liabilities, mortgage servicing rights and mortgages held for sale; risk of higher lease and loan charge-offs; legislative or regulatory actions affecting or concerning mortgage loan modification and refinancing; our ability to comply with any supervisory actions to which we are or become subject as a result of examination by our regulators; concentration of our commercial real estate loan portfolio; higher than normal delinquency and default rates; limited ability to rely on brokered deposits as a part of our funding strategy; concentration of mass-affluent customers and jumbo mortgages; hedging strategies; risks related to securities held in our securities portfolio; delinquencies on our equipment leases and reductions in the resale value of leased equipment; loss of key personnel; fraudulent and negligent acts by loan applicants, mortgage brokers, other vendors and our employees; changes in and compliance with laws and regulations that govern our operations; failure to establish and maintain effective internal controls and procedures; effects of changes in existing U.S. government or government-sponsored mortgage programs; changes in laws and regulations that may restrict our ability to originate or increase our risk of liability with respect to certain mortgage loans; risks related to the approval and consummation of anticipated acquisitions; risks related to the continuing integration of acquired businesses and any future acquisitions; environmental liabilities with respect to properties that we take title to upon foreclosure; and the inability of our banking subsidiary to pay dividends.
For additional factors that could materially affect our financial results, please refer to EverBank Financial Corp’s filings with the Securities and Exchange Commission, including but not limited to, the risks described under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Company undertakes no obligation to revise these statements following the date of this news release, except as required by law.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. Eastern Time on Thursday, October 25, 2012 to discuss its third quarter 2012 results. The dial-in number for the conference call is 1-877-941-1427 and the international dial-in number is 1-480-629-9664, passcode is 4568196. A live webcast of the conference call will also be available on the investor relations page of the Company's website at www.abouteverbank.com/ir.
For those unable to participate in the conference call, a replay will be available from October 25, 2012 until November 1, 2012. The replay dial-in number is 1-877-870-5176 and the international replay dial-in number is 1-858-384-5517, replay passcode is 4568196.
About EverBank Financial Corp
EverBank Financial Corp provides a diverse range of financial products and services directly to clients nationwide through multiple business channels. Headquartered in Jacksonville, Florida, EverBank has $16.5 billion in assets and $11.8 billion in deposits as of September 30, 2012. With an emphasis on value, innovation and service, EverBank offers a broad selection of banking, lending and investing products to consumers and businesses nationwide. EverBank provides services to customers through the internet, over the phone, through the mail and at its Florida-based financial centers. More information on EverBank can be found at www.abouteverbank.com/ir.
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EverBank Financial Corp and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (Dollars in thousands, except per share data) |
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September 30, |
December 31, |
|||||||
| Assets | ||||||||
| Cash and due from banks | $ | 53,357 | $ | 31,441 | ||||
| Interest-bearing deposits in banks | 1,566,612 | 263,540 | ||||||
| Total cash and cash equivalents | 1,619,969 | 294,981 | ||||||
| Investment securities: | ||||||||
| Available for sale, at fair value | 1,722,556 | 1,903,922 | ||||||
| Held to maturity (fair value of $177,228 and $194,350 as of September 30, 2012 and December 31, 2011, respectively) | 170,804 | 189,518 | ||||||
| Other investments | 126,151 | 98,392 | ||||||
| Total investment securities | 2,019,511 | 2,191,832 | ||||||
| Loans held for sale (includes $1,025,467 and $777,280 carried at fair value as of September 30, 2012 and December 31, 2011, respectively) | 1,403,205 | 2,725,286 | ||||||
| Loans and leases held for investment: | ||||||||
| Covered by loss share or indemnification agreements | 671,420 | 841,146 | ||||||
| Not covered by loss share or indemnification agreements | 9,385,306 | 5,678,135 | ||||||
| Loans and leases held for investment, net of unearned income | 10,056,726 | 6,519,281 | ||||||
| Allowance for loan and lease losses | (76,469 | ) | (77,765 | ) | ||||
| Total loans and leases held for investment, net | 9,980,257 | 6,441,516 | ||||||
| Equipment under operating leases, net | 55,532 | 56,399 | ||||||
| Mortgage servicing rights (MSR), net | 381,773 | 489,496 | ||||||
| Deferred income taxes, net | 183,943 | 151,634 | ||||||
| Premises and equipment, net | 64,789 | 43,738 | ||||||
| Other assets | 800,461 | 646,796 | ||||||
| Total Assets | $ | 16,509,440 | $ | 13,041,678 | ||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 1,475,204 | $ | 1,234,615 | ||||
| Interest-bearing | 10,340,722 | 9,031,148 | ||||||
| Total deposits | 11,815,926 | 10,265,763 | ||||||
| Other borrowings | 2,823,927 | 1,257,879 | ||||||
| Trust preferred securities | 103,750 | 103,750 | ||||||
| Accounts payable and accrued liabilities | 507,815 | 446,621 | ||||||
| Total Liabilities | 15,251,418 | 12,074,013 | ||||||
| Commitments and Contingencies (Note 15) | ||||||||
| Shareholders’ Equity | ||||||||
| Series A 6% Cumulative Convertible Preferred Stock, $0.01 par value (1,000,000 shares authorized and 186,744 shares issued and outstanding at December 31, 2011; no shares authorized, issued or outstanding at September 30, 2012) (Note 10) | — | 2 | ||||||
| Series B 4% Cumulative Convertible Preferred Stock, $0.01 par value (liquidation preference of $1,000 per share; 1,000,000 shares authorized inclusive of Series A Preferred Stock and 136,544 shares issued and outstanding at December 31, 2011; no shares authorized, issued or outstanding at September 30, 2012) (Note 10) | — | 1 | ||||||
| Common Stock, $0.01 par value (500,000,000 and 150,000,000 shares authorized at September 30, 2012 and December 31, 2011, respectively; 120,624,500 and 75,094,375 issued and outstanding at September 30, 2012 and December 31, 2011, respectively) | 1,206 | 751 | ||||||
| Additional paid-in capital | 812,823 | 561,247 | ||||||
| Retained earnings | 550,724 | 513,413 | ||||||
| Accumulated other comprehensive income (loss) (AOCI) | (106,731 | ) | (107,749 | ) | ||||
| Total Shareholders’ Equity | 1,258,022 | 967,665 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 16,509,440 | $ | 13,041,678 | ||||
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EverBank Financial Corp and Subsidiaries Condensed Consolidated Statements of Income (unaudited) (Dollars in thousands, except per share data) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Interest Income | ||||||||||||||||
| Interest and fees on loans and leases | $ | 140,230 | $ | 116,899 | $ | 400,824 | $ | 358,419 | ||||||||
| Interest and dividends on investment securities | 20,879 | 27,201 | 62,127 | 82,778 | ||||||||||||
| Other interest income | 152 | 197 | 338 | 1,312 | ||||||||||||
| Total interest income | 161,261 | 144,297 | 463,289 | 442,509 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Deposits | 22,491 | 23,959 | 63,884 | 75,559 | ||||||||||||
| Other borrowings | 12,576 | 9,469 | 32,604 | 29,478 | ||||||||||||
| Total interest expense | 35,067 | 33,428 | 96,488 | 105,037 | ||||||||||||
| Net Interest Income | 126,194 | 110,869 | 366,801 | 337,472 | ||||||||||||
| Provision for Loan and Lease Losses | 4,359 | 12,258 | 21,471 | 39,292 | ||||||||||||
| Net Interest Income after Provision for Loan and Lease Losses | 121,835 | 98,611 | 345,330 | 298,180 | ||||||||||||
| Noninterest Income | ||||||||||||||||
| Loan servicing fee income | 42,341 | 48,390 | 130,380 | 144,023 | ||||||||||||
| Amortization and impairment of mortgage servicing rights | (54,521 | ) | (44,053 | ) | (163,281 | ) | (88,270 | ) | ||||||||
| Net loan servicing income (loss) | (12,180 | ) | 4,337 | (32,901 | ) | 55,753 | ||||||||||
| Gain on sale of loans | 85,748 | 20,921 | 203,851 | 39,854 | ||||||||||||
| Loan production revenue | 10,528 | 6,518 | 27,817 | 18,513 | ||||||||||||
| Deposit fee income | 4,671 | 7,803 | 16,738 | 19,398 | ||||||||||||
| Other lease income | 7,103 | 7,095 | 24,588 | 22,163 | ||||||||||||
| Other | 1,429 | 6,683 | 4,522 | 16,461 | ||||||||||||
| Total noninterest income | 97,299 | 53,357 | 244,615 | 172,142 | ||||||||||||
| Noninterest Expense | ||||||||||||||||
| Salaries, commissions and other employee benefits expense | 85,399 | 57,757 | 228,266 | 171,451 | ||||||||||||
| Equipment expense | 17,574 | 13,608 | 50,411 | 36,077 | ||||||||||||
| Occupancy expense | 6,619 | 5,237 | 17,985 | 14,808 | ||||||||||||
| General and administrative expense | 74,377 | 62,983 | 221,911 | 184,199 | ||||||||||||
| Total noninterest expense | 183,969 | 139,585 | 518,573 | 406,535 | ||||||||||||
| Income before Provision for Income Taxes | 35,165 | 12,383 | 71,372 | 63,787 | ||||||||||||
| Provision for Income Taxes | 12,987 | 4,625 | 26,176 | 24,818 | ||||||||||||
| Net Income | $ | 22,178 | $ | 7,758 | $ | 45,196 | $ | 38,969 | ||||||||
| Less: Net Income Allocated to Participating Preferred Stock | — | (1,598 | ) | (8,564 | ) | (8,420 | ) | |||||||||
| Net Income Allocated to Common Shareholders | $ | 22,178 | $ | 6,160 | $ | 36,632 | $ | 30,549 | ||||||||
| Basic Earnings Per Share | $ | 0.19 | $ | 0.08 | $ | 0.37 | $ | 0.41 | ||||||||
| Diluted Earnings Per Share | $ | 0.19 | $ | 0.08 | $ | 0.37 | $ | 0.40 | ||||||||
| Dividends Declared Per Share | $ | 0.02 | $ | — | $ | 0.02 | $ | — | ||||||||
Non-GAAP Financial Measures
This press release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Non-Performing Asset Ratio, Tangible Shareholders’ Equity, Adjusted Tangible Shareholders’ Equity, Tangible Assets, and Adjusted Efficiency Ratios are non-GAAP financial measures. The Company’s management uses these measures to evaluate the underlying performance and efficiency of its operations. The Company’s management believes these non-GAAP measures allow for a better evaluation and transparency of the operating performance of the Company’s business and facilitate a meaningful comparison of our results in the current period to those in prior periods and future periods because these non-GAAP measures exclude certain items that may not be indicative of our core operating results and business outlook. In addition the Company’s management believes that certain of these non-GAAP measures represent a consistent benchmark against which to evaluate the Company’s growth, profitability and capital position. These non-GAAP measures are provided to enhance investors’ overall understanding of our current financial performance, and not as a substitute for, the Company’s reported results. Moreover, the manner in which we calculate these measures may differ from that of other companies reporting non-GAAP measures with similar names.
In the tables below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated:
| EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||
| Adjusted Net Income | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| (dollars in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
| Net income | $ | 22,178 | $ | 11,172 | $ | 11,846 | $ | 13,760 | $ | 7,758 | |||||||||||
| Transaction expense, net of tax | 1,268 | 2,363 | 821 | 802 | 2,108 | ||||||||||||||||
| Non-recurring regulatory related expense, net of tax | 1,326 | 3,780 | 3,063 | 3,529 | 2,643 | ||||||||||||||||
| Increase in Bank of Florida non-accretable discount, net of tax | 111 | 463 | 2,135 | 2,208 | 298 | ||||||||||||||||
| MSR impairment, net of tax | 11,302 | 18,684 | 9,389 | 11,638 | 12,824 | ||||||||||||||||
| Adjusted net income | $ | 36,185 | $ | 36,462 | $ | 27,254 | $ | 31,937 | $ | 25,631 | |||||||||||
| Tangible Equity, Adjusted Tangible Equity and Tangible Assets | |||||||||||||||||||||
| (dollars in thousands) |
September 30, |
June 30, 2012 | March 31, 2012 |
December 31, |
September 30, |
||||||||||||||||
| Shareholders’ equity | $ | 1,258,022 | $ | 1,181,369 | $ | 994,689 | $ | 967,665 | $ | 973,708 | |||||||||||
| Less: | |||||||||||||||||||||
| Goodwill | 10,238 | 10,238 | 10,238 | 10,238 | 10,238 | ||||||||||||||||
| Intangible assets | 6,348 | 6,700 | 7,052 | 7,404 | 7,756 | ||||||||||||||||
| Tangible equity | $ | 1,241,436 | $ | 1,164,431 | $ | 977,399 | $ | 950,023 | $ | 955,714 | |||||||||||
| Less: | |||||||||||||||||||||
| Accumulated other comprehensive loss | (106,731 | ) | (113,094 | ) | (89,196 | ) | (107,749 | ) | (87,303 | ) | |||||||||||
| Adjusted tangible equity | $ | 1,348,167 | $ | 1,277,525 | $ | 1,066,595 | $ | 1,057,772 | $ | 1,043,017 | |||||||||||
| Total assets | $ | 16,509,440 | $ | 15,040,824 | $ | 13,774,821 | $ | 13,041,678 | $ | 12,550,764 | |||||||||||
| Less: | |||||||||||||||||||||
| Goodwill | 10,238 | 10,238 | 10,238 | 10,238 | 10,238 | ||||||||||||||||
| Intangible assets | 6,348 | 6,700 | 7,052 | 7,404 | 7,756 | ||||||||||||||||
| Tangible assets | $ | 16,492,854 | $ | 15,023,886 | $ | 13,757,531 | $ | 13,024,036 | $ | 12,532,770 | |||||||||||
| Regulatory Capital (bank level) | |||||||||||||||||||||
| (dollars in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
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| Shareholders’ equity | $ | 1,339,669 | $ | 1,263,687 | $ | 1,099,404 | $ | 1,070,887 | $ | 1,078,080 | |||||||||||
| Less: | Goodwill and other intangibles | (16,586 | ) | (16,938 | ) | (17,290 | ) | (17,642 | ) | (17,994 | ) | ||||||||||
| Disallowed servicing asset | (33,366 | ) | (36,650 | ) | (40,783 | ) | (38,925 | ) | (36,570 | ) | |||||||||||
| Disallowed deferred tax asset | (69,412 | ) | (70,357 | ) | (71,302 | ) | (71,803 | ) | (72,147 | ) | |||||||||||
| Add: | Accumulated losses on securities and cash flow hedges | 103,238 | 110,101 | 86,981 | 105,682 | 85,525 | |||||||||||||||
| Tier 1 capital | 1,323,543 | 1,249,843 | 1,057,010 | 1,048,199 | 1,036,894 | ||||||||||||||||
| Less: | Low-level recourse and residual interests | — | — | (20,424 | ) | (21,587 | ) | (20,431 | ) | ||||||||||||
| Add: | Allowance for loan and lease losses | 76,469 | 77,393 | 78,254 | 77,765 | 83,826 | |||||||||||||||
| Total regulatory capital | $ | 1,400,012 | $ | 1,327,236 | $ | 1,114,840 | $ | 1,104,377 | $ | 1,100,289 | |||||||||||
| Adjusted total assets | $ | 16,488,067 | $ | 15,022,729 | $ | 13,731,482 | $ | 13,081,401 | $ | 12,550,738 | |||||||||||
| Risk-weighted assets | 8,701,164 | 8,424,290 | 7,311,556 | 7,043,371 | 7,007,339 | ||||||||||||||||
| EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
| Non-Performing Assets (1) | ||||||||||||||||||||
| (dollars in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||
| Non-accrual loans and leases: | ||||||||||||||||||||
| Residential mortgages | $ | 75,355 | $ | 66,956 | $ | 74,810 | $ | 81,594 | $ | 74,194 | ||||||||||
| Commercial and commercial real estate | 85,306 | 95,882 | 89,576 | 104,829 | 92,966 | |||||||||||||||
| Lease financing receivables | 2,018 | 1,295 | 1,861 | 2,385 | 1,745 | |||||||||||||||
| Home equity lines | 4,492 | 4,256 | 3,771 | 4,251 | 3,803 | |||||||||||||||
| Consumer and credit card | 479 | 573 | 571 | 419 | 471 | |||||||||||||||
| Total non-accrual loans and leases | 167,650 | 168,962 | 170,589 | 193,478 | 173,179 | |||||||||||||||
| Accruing loans 90 days or more past due | 1,973 | 1,800 | 5,119 | 6,673 | 4,808 | |||||||||||||||
| Total non-performing loans (NPL) | 169,623 | 170,762 | 175,708 | 200,151 | 177,987 | |||||||||||||||
| Other real estate owned (OREO) | 43,612 | 49,248 | 49,304 | 42,664 | 39,431 | |||||||||||||||
| Total non-performing assets (NPA) | 213,235 | 220,010 | 225,012 | 242,815 | 217,418 | |||||||||||||||
| Troubled debt restructurings (TDR) less than 90 days past due | 82,030 | 93,184 | 92,954 | 92,628 | 89,129 | |||||||||||||||
| Total NPA and TDR (1) | $ | 295,265 | $ | 313,194 | $ | 317,966 | $ | 335,443 | $ | 306,547 | ||||||||||
| Total NPA and TDR | $ | 295,265 | $ | 313,194 | $ | 317,966 | $ | 335,443 | $ | 306,547 | ||||||||||
| Government-insured 90 days or more past due still accruing | 1,684,550 | 1,647,567 | 1,530,665 | 1,570,787 | 883,478 | |||||||||||||||
|
Bank of Florida loans accounted for under ASC 310-30: |
||||||||||||||||||||
| 90 days or more past due | 117,506 | 140,797 | 146,379 | 149,743 | 159,767 | |||||||||||||||
| OREO | 18,557 | 20,379 | 22,852 | 19,456 | 19,616 | |||||||||||||||
| Total regulatory NPA and TDR | $ | 2,115,878 | $ | 2,121,937 | $ | 2,017,862 | $ | 2,075,429 | $ | 1,369,408 | ||||||||||
| Adjusted credit quality ratios excluding government-insured loans and loans accounted for under ASC 310-30: (1) | ||||||||||||||||||||
| NPL to total loans | 1.49 | % | 1.57 | % | 1.80 | % | 2.18 | % | 2.23 | % | ||||||||||
| NPA to total assets | 1.29 | % | 1.46 | % | 1.63 | % | 1.86 | % | 1.73 | % | ||||||||||
| NPA and TDR to total assets | 1.79 | % | 2.08 | % | 2.31 | % | 2.57 | % | 2.44 | % | ||||||||||
| Credit quality ratios including government-insured loans and loans accounted for under ASC 310-30: | ||||||||||||||||||||
| NPL to total loans | 17.32 | % | 18.00 | % | 18.95 | % | 20.95 | % | 15.28 | % | ||||||||||
| NPA to total assets | 12.32 | % | 13.49 | % | 13.97 | % | 15.20 | % | 10.20 | % | ||||||||||
| NPA and TDR to total assets | 12.82 | % | 14.11 | % | 14.65 | % | 15.91 | % | 10.91 | % | ||||||||||
(1) We define non-performing assets, or NPA, as non-accrual loans, accruing loans past due 90 days or more and foreclosed property. Our NPA calculation excludes government-insured pool buyout loans for which payment is insured by the government. We also exclude loans and foreclosed property acquired in the Bank of Florida acquisition accounted for under ASC 310-30 because as of September 30, 2012, we expected to fully collect the carrying value of such loans and foreclosed property.
| EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
| Business Segments Selected Financial Information | ||||||||||||||||||||
| (dollars in thousands) |
Banking and Wealth Management |
Mortgage Banking |
Corporate Services |
Eliminations | Consolidated | |||||||||||||||
| Three Months Ended September 30, 2012 | ||||||||||||||||||||
| Net interest income | $ | 114,587 | $ | 13,105 | $ | (1,498 | ) | $ | — | $ | 126,194 | |||||||||
| Provision for loan and lease losses | 3,547 | 812 | — | — | 4,359 | |||||||||||||||
| Net interest income after provision for loan and lease losses | 111,040 | 12,293 | (1,498 | ) | — | 121,835 | ||||||||||||||
| Noninterest income | 20,608 | 76,693 | (2 | ) | — | 97,299 | ||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Foreclosure and OREO expense | 17,463 | 2,176 | — | — | 19,639 | |||||||||||||||
| Other credit-related expenses | 1,879 | 3,544 | 2 | — | 5,425 | |||||||||||||||
| All other noninterest expense | 60,526 | 65,900 | 32,479 | — | 158,905 | |||||||||||||||
| Income (loss) before income tax | 51,780 | 17,366 | (33,981 | ) | — | 35,165 | ||||||||||||||
| Adjustment items (pre-tax): | ||||||||||||||||||||
| Increase in Bank of Florida non-accretable discount | 178 | — | — | — | 178 | |||||||||||||||
| MSR impairment | — | 18,229 | — | — | 18,229 | |||||||||||||||
| Transaction and non-recurring regulatory related expense | — | 1,657 | 2,527 | — | 4,184 | |||||||||||||||
| Adjusted income (loss) before income tax | 51,958 | 37,252 | (31,454 | ) | — | 57,756 | ||||||||||||||
| Total assets as of September 30, 2012 | 14,696,893 | 1,838,964 | 129,141 | (155,558 | ) | 16,509,440 | ||||||||||||||
| Efficiency Ratios: | ||||||||||||||||||||
| GAAP basis: | ||||||||||||||||||||
| including foreclosure, OREO expenses and other credit-related expenses | 59.1 | % | 82.3 | % | ||||||||||||||||
| excluding foreclosure, OREO expenses and other credit-related expenses | 44.8 | % | 71.1 | % | ||||||||||||||||
| Adjusted basis: | ||||||||||||||||||||
| including foreclosure, OREO expenses and other credit-related expenses | 59.1 | % | 74.4 | % | ||||||||||||||||
| excluding foreclosure, OREO expenses and other credit-related expenses | 44.8 | % | 64.0 | % | ||||||||||||||||
| Three Months Ended June 30, 2012 | ||||||||||||||||||||
| Net interest income | $ | 114,801 | $ | 11,790 | $ | (1,607 | ) | $ | — | $ | 124,984 | |||||||||
| Provision for loan and lease losses | 5,041 | 716 | — | — | 5,757 | |||||||||||||||
| Net interest income after provision for loan and lease losses | 109,760 | 11,074 | (1,607 | ) | — | 119,227 | ||||||||||||||
| Noninterest income | 25,605 | 48,524 | (6 | ) | — | 74,123 | ||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Foreclosure and OREO expense | 12,378 | 2,591 | — | — | 14,969 | |||||||||||||||
| Other credit-related expenses | 1,604 | 4,193 | 9 | — | 5,806 | |||||||||||||||
| All other noninterest expense | 61,564 | 60,686 | 32,758 | — | 155,008 | |||||||||||||||
| Income (loss) before income tax | 59,819 | (7,872 | ) | (34,380 | ) | — | 17,567 | |||||||||||||
| Adjustment items (pre-tax): | ||||||||||||||||||||
| Increase in Bank of Florida non-accretable discount | 747 | — | — | — | 747 | |||||||||||||||
| MSR impairment | — | 30,135 | — | — | 30,135 | |||||||||||||||
| Transaction and non-recurring regulatory related expense | — | 5,461 | 4,448 | — | 9,909 | |||||||||||||||
| Adjusted income (loss) before income tax | 60,566 | 27,724 | (29,932 | ) | — | 58,358 | ||||||||||||||
| Total assets as of June 30, 2012 | 13,327,046 | 1,902,152 | 124,406 | (312,780 | ) | 15,040,824 | ||||||||||||||
| Efficiency Ratios: | ||||||||||||||||||||
| GAAP basis: | ||||||||||||||||||||
| including foreclosure, OREO expenses and other credit-related expenses | 53.8 | % | 88.3 | % | ||||||||||||||||
| excluding foreclosure, OREO expenses and other credit-related expenses | 43.8 | % | 77.9 | % | ||||||||||||||||
| Adjusted basis: | ||||||||||||||||||||
| including foreclosure, OREO expenses and other credit-related expenses | 53.8 | % | 72.4 | % | ||||||||||||||||
| excluding foreclosure, OREO expenses and other credit-related expenses | 43.8 | % | 63.3 | % | ||||||||||||||||
|
Banking and Wealth Management |
Mortgage Banking |
Corporate Services |
Eliminations | Consolidated | ||||||||||||||||
| Three Months Ended September 30, 2011 | ||||||||||||||||||||
| Net interest income | $ | 104,266 | $ | 8,255 | $ | (1,652 | ) | $ | — | $ | 110,869 | |||||||||
| Provision for loan and lease losses | 13,119 | (861 | ) | — | — | 12,258 | ||||||||||||||
| Net interest income after provision for loan and lease losses | 91,147 | 9,116 | (1,652 | ) | — | 98,611 | ||||||||||||||
| Noninterest income | 24,403 | 28,956 | (2 | ) | — | 53,357 | ||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Foreclosure and OREO expense | (2,328 | ) | 5,660 | 1 | — | 3,333 | ||||||||||||||
| Other credit-related expenses | 2,748 | 11,135 | — | — | 13,883 | |||||||||||||||
| All other noninterest expense | 50,931 | 42,046 | 29,392 | — | 122,369 | |||||||||||||||
| Income (loss) before income tax | 64,199 | (20,769 | ) | (31,047 | ) | — | 12,383 | |||||||||||||
| Adjustment items (pre-tax): | ||||||||||||||||||||
| Increase in Bank of Florida non-accretable discount | 482 | — | — | — | 482 | |||||||||||||||
| MSR impairment | — | 20,684 | — | — | 20,684 | |||||||||||||||
| Transaction and non-recurring regulatory related expense | — | 2,432 | 5,233 | — | 7,665 | |||||||||||||||
| Adjusted income (loss) before income tax | 64,681 | 2,347 | (25,814 | ) | — | 41,214 | ||||||||||||||
| Total assets as of September 30, 2011 | 11,033,090 | 1,618,689 | 140,260 | (241,275 | ) | 12,550,764 | ||||||||||||||
| Efficiency Ratios: | ||||||||||||||||||||
| GAAP basis: | ||||||||||||||||||||
| including foreclosure, OREO expenses and other credit-related expenses | 39.9 | % | 85.0 | % | ||||||||||||||||
| excluding foreclosure, OREO expenses and other credit-related expenses | 39.6 | % | 74.5 | % | ||||||||||||||||
| Adjusted basis: | ||||||||||||||||||||
| including foreclosure, OREO expenses and other credit-related expenses | 39.9 | % | 71.3 | % | ||||||||||||||||
| excluding foreclosure, OREO expenses and other credit-related expenses | 39.6 | % | 62.0 | % | ||||||||||||||||