JACKSONVILLE, Fla.--(BUSINESS WIRE)--Jul. 25, 2012--
EverBank Financial Corp (NYSE: EVER) (“EverBank” or the “Company”)
announced today its financial results for the quarter ended June 30,
2012. In addition, the Company’s Board of Directors declared a
quarterly cash dividend of $0.02 per common share, payable on August 21,
2012, to stockholders of record as of August 6, 2012.
“We are pleased that the investments we have made contributed to our
solid asset and deposit growth in the second quarter,” said Robert M.
Clements, Chairman and Chief Executive Officer. “Our financial results
highlight our ability to deliver positive earnings while we continue to
make investments that we expect will deliver future growth. In addition,
the acquisition of the GE Business Property Lending unit which we
recently announced and is currently pending regulatory approval, will
complement our strategic growth expansion as well as further diversify
our balance sheet.”
Key Highlights
-
Total loans and leases were $10.9 billion at June 30, 2012, up $1.1
billion, or 11%, for the quarter and up $3.3 billion, or 44%, year
over year.
-
Loans and leases originated were $2.7 billion for the second quarter
2012, an increase of 19% for the quarter and 89% year over year.
-
Closed the acquisition of the warehouse finance business from MetLife.
-
Our adjusted non-performing assets as a percentage of total assets was
1.46% at June 30, 2012, representing continued improvement from 1.63%
at March 31, 2012 and 1.86% at December 31, 2011.1
-
GAAP net income was $11.2 million for the second quarter of 2012,
compared to $21.8 million for the second quarter of 2011. GAAP diluted
earnings per share (“EPS”) was $0.09 for the second quarter of 2012,
compared to $0.08 in the first quarter of 2012 and $0.23 for the
second quarter of 2011.
-
Adjusted net income was $36.5 million for the second quarter of 2012,
compared to $25.5 million for the second quarter of 2011. Adjusted
diluted EPS was $0.33 for the second quarter of 2012, as compared to
$0.28 in the first quarter of 2012 and $0.26 for the second quarter of
2011.1
-
Deposits were $10.8 billion at June 30, 2012, up $0.3 billion, or 2%,
from the first quarter 2012 and $0.9 billion, or 9%, as compared to
the second quarter of 2011.
-
Announced the execution of a definitive agreement to acquire Business
Property Lending, Inc. from GE Capital Real Estate, North America for
a purchase price of approximately $2.51 billion.
“We completed the integration of the warehouse finance business and our
second quarter results reflect the diversification and growth benefits
to our franchise,” said W. Blake Wilson, President and Chief Operating
Officer. “We continue to make strategic investments to support the
future growth of the Company, including executing on our retail lending
expansion strategy which generated approximately $300 million of new
loans during the second quarter.”
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 $1.3 billion, or 9%, to $15.0 billion at June
30, 2012, from $13.8 billion at March 31, 2012, and by $2.5 billion, or
20%, from $12.5 billion at June 30, 2011. Our interest-earning assets
for the second quarter 2012 were largely comprised of:
-
Residential loans held for investment which increased by 1% to $5.1
billion from the second quarter of 2011;
-
Commercial and commercial real estate loans which increased by 63% to
$1.8 billion, from the second quarter of 2011, excluding the warehouse
loans acquired at closing of the warehouse finance acquisition,
commercial and commercial real estate loans increased by 32% from the
second quarter of 2011;
-
Commercial leases which increased by 43% to $0.7 billion, from the
second quarter of 2011;
-
Loans held for sale, which now includes the majority of our GNMA pool
buyouts, increased by 301% to $3.2 billion, from the second quarter of
2011; and
-
Investment securities which decreased by 26% to $2.2 billion, from the
second quarter of 2011.
Loan Origination and Portfolio Activities
Organic originations of residential loans, commercial loans and leases
totaled $2.7 billion for the second quarter of 2012.
During the second quarter of 2012, we closed on the warehouse finance
acquisition. Total loans outstanding at closing on April 2, 2012 were
$351 million, which we grew to $527 million by the end of second quarter
through a combination of increased utilization and new customer
originations.
Deposit and Other Funding Sources
Total deposits grew by $0.3 billion, or 2%, to $10.8 billion at June 30,
2012, from $10.6 billion at March 31, 2012, and by $0.9 billion, or 9%,
from $9.9 billion at June 30, 2011. At June 30, 2012, our deposits were
comprised of the following:
-
Non-interest bearing accounts were $1.4 billion, or 13%, of total
deposits;
-
Interest-bearing checking accounts were $2.2 billion, or 20%, of total
deposits;
-
Savings and money market accounts were $4.0 billion, or 37%, of total
deposits;
-
Global markets money market and time accounts were $1.3 billion, or
12%, of total deposits; and
-
Time deposit accounts, excluding global markets, were $2.1 billion, or
19%, of total deposits.
Total other borrowings were $2.5 billion at June 30, 2012, compared to
$1.7 billion at March 31, 2012, as a result of an increase in term
Federal Home Loan Bank advances to fund the warehouse finance
acquisition and to take advantage of historically low long-term
borrowing rates.
Credit Quality
Our adjusted non-performing assets as a percentage of total assets
decreased to 1.46% at June 30, 2012, from 1.63% at March 31, 2012. We
recorded provision for loan and lease losses of $5.8 million during the
second quarter of 2012, which is a decrease of $3.2 million, or 36%,
when compared to the second quarter of 2011. Net charge-offs during the
second quarter of 2012 declined to $6.6 million, from $9.5 million in
the second quarter of 2011, a decline of 30%. On an annualized basis,
net charge-offs were 0.34% of total average loans and leases held for
investment outstanding for the second quarter of 2012, compared to 0.58%
for the second quarter of 2011.
Originated Loan Repurchase Activity
Our loan repurchase activity declined during the second quarter 2012,
with losses on repurchase obligations for loans sold or securitized of
$2.4 million, a 25% and 43% decline when compared to the first quarter
2012 and second quarter 2011, respectively. Severities over the last
twelve months were 44% as of the second quarter 2012, compared to 58% in
the second quarter 2011. We are currently reserved at more than three
times our trailing twelve month net realized losses.
Capital Strength
Total shareholder’s equity was $1.2 billion at June 30, 2012, compared
to $995 million at March 31, 2012. The increase is primarily due to the
completion of our initial public offering on May 8, 2012, which raised
$198 million. Additionally, at the initial public offering we converted
all of our shares of Series B Preferred Stock into shares of our common
stock. As a result at June 30, 2012 the ratio of tangible common equity
to tangible assets was 7.8%. The bank’s Tier 1 leverage ratio was 8.3%
and total risk-based capital ratio was 15.8% at June 30, 2012.
Income Statement Highlights
Net Interest Income
For the second quarter of 2012, net interest income increased by $12.1
million to $125.0 million, from $112.9 million for the second quarter of
2011. This increase in net interest income was attributable to an
increase in interest income of $8.5 million, combined with a decrease in
interest expense of $3.6 million. Our net interest margin decreased to
3.86% for the second quarter of 2012, from 4.22% for the second quarter
of 2011. The primary driver of the decrease in net interest margin was a
reduction in accretion income partially offset by a reduction in deposit
and borrowing interest expense.
Noninterest Income
Noninterest income for the second quarter of 2012 increased by $21.2
million, or 40%, to $74.1 million compared to the same period in 2011.
This increase was driven by production revenues and gain on sale of
loans which increased by $68.7 million to $79.8 million. The increase in
noninterest income was partially offset by net loan servicing loss,
which decreased by $47.1 million to $(21.8) million. Net loan servicing
loss includes a non-cash mortgage servicing rights impairment of $30.1
million, as well as increased amortization expense of $34.1 million,
compared to $21.4 million in the second quarter of 2011. These changes
were primarily related to the historic low interest rate environment
resulting in strong residential lending volume of $2.3 billion and
elevated servicing pay-off activity.
Noninterest Expense
Noninterest expense for the second quarter of 2012 increased by $54.1
million, or 44%, to $175.8 million from $121.7 million in the second
quarter of 2011. The increase in noninterest expense was attributable to
an increase in salaries, commissions and employee benefits, as well as
professional and other fees and advertising expenses. Salaries,
commissions and employee benefits increased by $20.0 million, or 35%, in
the second quarter of 2012 compared to the second quarter 2011, due
primarily to increased staffing and higher variable commission expenses
in our Mortgage Banking segment. Professional fees increased by $6.1
million, or 47%, to $19.3 million due to acquisition-related costs, as
well as continued regulatory-related expenses. Advertising and marketing
expense increased by $4.9 million, or 133%, to $8.6 million as we
reinitiated our deposit generation campaign. Credit related general and
administrative expenses were $20.8 million in the second quarter of
2012, which remain at elevated levels, compared to $18.3 million in the
second quarter of 2011.
Our adjusted consolidated efficiency ratio was 72% for the second
quarter of 2012, or 63%, when excluding credit-related expenses from
noninterest expense. The efficiency ratio for our Banking and Wealth
Management segment was 54% for the second quarter of 2012, or 44%, when
excluding credit-related expenses from noninterest expense.
During the first half of 2012, we added 147 residential lending
professionals as a part of our retail lending expansion. As a result,
the loan production volume from our retail offices increased by $217
million, or 244%, in the second quarter to $306 million, up from $89
million in the first quarter of 2012.
Income Tax Expense
Our effective tax rate for the second quarter of 2012 was 36%, compared
to 38% for the second quarter of 2011.
Segment Analysis
-
Banking and Wealth Management adjusted pre-tax income was $60.6
million, including other credit-related expenses, foreclosure and OREO
expenses of $14.0 million.
-
Mortgage Banking adjusted pre-tax income was $27.7 million, including
other credit-related expenses, foreclosure and OREO expenses of $6.8
million.
-
Corporate Services had an adjusted pre-tax loss of $29.9 million.
Forward Looking Statements
This news release contains certain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. 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 in the United States and in the geographic regions and
communities we serve; risks related to liquidity; changes in interest
rates; risk of higher lease and loan charge-offs; legislative or
regulatory actions affecting or concerning mortgage loan modification
and refinancing; 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; 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, July 26, 2012 to discuss its second quarter 2012 results. The
dial-in number for the conference call is 1-877-941-4774 and the U.S.
toll-free dial-in number is 1-480-629-9760, passcode is 4551597. 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 11:30 a.m. Eastern Time on July 26, 2012 until 11:59 p.m.
Eastern Time on August 1, 2012. The replay dial-in number is
1-877-870-5176 and the U.S. toll-free replay dial-in number is
1-858-384-5517, replay passcode is 4551597.
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 $15.0
billion in assets and $10.8 billion in deposits as of June 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. 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.
|
|
|
|
|
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
June 30, 2012
|
|
December 31, 2011
|
Assets
|
|
|
|
|
Cash and due from banks
|
|
$
|
39,689
|
|
|
$
|
31,441
|
|
Interest-bearing deposits in banks
|
|
478,543
|
|
|
263,540
|
|
Total cash and cash equivalents
|
|
518,232
|
|
|
294,981
|
|
Investment securities:
|
|
|
|
|
Available for sale, at fair value
|
|
1,850,526
|
|
|
1,903,922
|
|
Held to maturity (fair value of $196,382 and $194,350 as of June 30,
2012 and December 31, 2011, respectively)
|
|
190,615
|
|
|
189,518
|
|
Other investments
|
|
133,282
|
|
|
98,392
|
|
Total investment securities
|
|
2,174,423
|
|
|
2,191,832
|
|
Loans held for sale (includes $1,105,985 and $777,280 carried at
fair value as of June 30, 2012 and December 31, 2011, respectively)
|
|
3,178,597
|
|
|
2,725,286
|
|
Loans and leases held for investment:
|
|
|
|
|
Covered by loss share or indemnification agreements
|
|
727,708
|
|
|
841,146
|
|
Not covered by loss share or indemnification agreements
|
|
7,057,722
|
|
|
5,678,135
|
|
Loans and leases held for investment, net of unearned income
|
|
7,785,430
|
|
|
6,519,281
|
|
Allowance for loan and lease losses
|
|
(77,393
|
)
|
|
(77,765
|
)
|
Total loans and leases held for investment, net
|
|
7,708,037
|
|
|
6,441,516
|
|
Equipment under operating leases, net
|
|
61,811
|
|
|
56,399
|
|
Mortgage servicing rights (MSR), net
|
|
415,962
|
|
|
489,496
|
|
Deferred income taxes, net
|
|
163,561
|
|
|
151,634
|
|
Premises and equipment, net
|
|
52,037
|
|
|
43,738
|
|
Other assets
|
|
768,164
|
|
|
646,796
|
|
Total Assets
|
|
$
|
15,040,824
|
|
|
$
|
13,041,678
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Noninterest-bearing
|
|
$
|
1,356,769
|
|
|
$
|
1,234,615
|
|
Interest-bearing
|
|
9,446,974
|
|
|
9,031,148
|
|
Total deposits
|
|
10,803,743
|
|
|
10,265,763
|
|
Other borrowings
|
|
2,503,636
|
|
|
1,257,879
|
|
Trust preferred securities
|
|
103,750
|
|
|
103,750
|
|
Accounts payable and accrued liabilities
|
|
448,326
|
|
|
446,621
|
|
Total Liabilities
|
|
13,859,455
|
|
|
12,074,013
|
|
Commitments and Contingencies (Note 14)
|
|
|
|
|
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 June 30, 2012) (Note 9)
|
|
—
|
|
|
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 June 30, 2012) (Note 9)
|
|
—
|
|
|
1
|
|
Common Stock, $0.01 par value (500,000,000 and 150,000,000 shares
authorized at June 30, 2012 and December 31, 2011, respectively;
116,479,658 and 75,094,375 issued and outstanding at June 30, 2012
and December 31, 2011, respectively)
|
|
1,165
|
|
|
751
|
|
Additional paid-in capital
|
|
762,422
|
|
|
561,247
|
|
Retained earnings
|
|
530,876
|
|
|
513,413
|
|
Accumulated other comprehensive income (loss) (AOCI)
|
|
(113,094
|
)
|
|
(107,749
|
)
|
Total Shareholders’ Equity
|
|
1,181,369
|
|
|
967,665
|
|
Total Liabilities and Shareholders’ Equity
|
|
$
|
15,040,824
|
|
|
$
|
13,041,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Interest Income
|
|
|
|
|
|
|
|
|
Interest and fees on loans and leases
|
|
$
|
135,816
|
|
|
$
|
118,527
|
|
|
$
|
260,594
|
|
|
$
|
241,520
|
|
Interest and dividends on investment securities
|
|
20,699
|
|
|
29,333
|
|
|
41,248
|
|
|
55,577
|
|
Other interest income
|
|
82
|
|
|
273
|
|
|
186
|
|
|
1,115
|
|
Total interest income
|
|
156,597
|
|
|
148,133
|
|
|
302,028
|
|
|
298,212
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
20,419
|
|
|
25,410
|
|
|
41,393
|
|
|
51,600
|
|
Other borrowings
|
|
11,194
|
|
|
9,813
|
|
|
20,028
|
|
|
20,009
|
|
Total interest expense
|
|
31,613
|
|
|
35,223
|
|
|
61,421
|
|
|
71,609
|
|
Net Interest Income
|
|
124,984
|
|
|
112,910
|
|
|
240,607
|
|
|
226,603
|
|
Provision for Loan and Lease Losses
|
|
5,757
|
|
|
9,004
|
|
|
17,112
|
|
|
27,034
|
|
Net Interest Income after Provision for Loan and Lease Losses
|
|
119,227
|
|
|
103,906
|
|
|
223,495
|
|
|
199,569
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
Loan servicing fee income
|
|
42,483
|
|
|
46,757
|
|
|
88,039
|
|
|
95,633
|
|
Amortization and impairment of mortgage servicing rights
|
|
(64,277
|
)
|
|
(21,429
|
)
|
|
(108,760
|
)
|
|
(44,217
|
)
|
Net loan servicing income (loss)
|
|
(21,794
|
)
|
|
25,328
|
|
|
(20,721
|
)
|
|
51,416
|
|
Gain on sale of loans
|
|
69,926
|
|
|
5,456
|
|
|
118,103
|
|
|
18,933
|
|
Loan production revenue
|
|
9,852
|
|
|
5,588
|
|
|
17,289
|
|
|
11,995
|
|
Deposit fee income
|
|
5,828
|
|
|
6,435
|
|
|
12,067
|
|
|
11,595
|
|
Other lease income
|
|
8,822
|
|
|
8,336
|
|
|
17,485
|
|
|
15,068
|
|
Other
|
|
1,489
|
|
|
1,790
|
|
|
3,093
|
|
|
9,778
|
|
Total noninterest income
|
|
74,123
|
|
|
52,933
|
|
|
147,316
|
|
|
118,785
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
Salaries, commissions and other employee benefits expense
|
|
76,277
|
|
|
56,321
|
|
|
142,867
|
|
|
113,694
|
|
Equipment expense
|
|
16,889
|
|
|
11,709
|
|
|
32,837
|
|
|
22,469
|
|
Occupancy expense
|
|
6,017
|
|
|
5,031
|
|
|
11,366
|
|
|
9,571
|
|
General and administrative expense
|
|
76,600
|
|
|
48,650
|
|
|
147,534
|
|
|
121,216
|
|
Total noninterest expense
|
|
175,783
|
|
|
121,711
|
|
|
334,604
|
|
|
266,950
|
|
Income before Provision for Income Taxes
|
|
17,567
|
|
|
35,128
|
|
|
36,207
|
|
|
51,404
|
|
Provision for Income Taxes
|
|
6,395
|
|
|
13,333
|
|
|
13,189
|
|
|
20,193
|
|
Net Income
|
|
$
|
11,172
|
|
|
$
|
21,795
|
|
|
$
|
23,018
|
|
|
$
|
31,211
|
|
Less: Net Income Allocated to Participating Preferred Stock
|
|
(1,685
|
)
|
|
(4,417
|
)
|
|
(7,664
|
)
|
|
(6,824
|
)
|
Net Income Allocated to Common Shareholders
|
|
$
|
9,487
|
|
|
$
|
17,378
|
|
|
$
|
15,354
|
|
|
$
|
24,387
|
|
Basic Earnings Per Share
|
|
$
|
0.09
|
|
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.33
|
|
Diluted Earnings Per Share
|
|
$
|
0.09
|
|
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
(dollars in thousands)
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
Net income
|
|
$
|
11,172
|
|
|
$
|
11,846
|
|
|
$
|
13,760
|
|
|
$
|
7,758
|
|
|
$
|
21,795
|
|
Transaction and non-recurring regulatory related expense, net of tax
|
|
|
6,143
|
|
|
|
3,884
|
|
|
|
4,331
|
|
|
|
4,751
|
|
|
|
2,136
|
|
Increase in Bank of Florida non-accretable discount, net of tax
|
|
|
463
|
|
|
|
2,135
|
|
|
|
2,208
|
|
|
|
298
|
|
|
|
-
|
|
Early adoption of TDR guidance and policy change, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,561
|
|
MSR impairment, net of tax
|
|
|
18,684
|
|
|
|
9,389
|
|
|
|
11,638
|
|
|
|
12,824
|
|
|
|
-
|
|
Adjusted net income
|
|
$
|
36,462
|
|
|
$
|
27,254
|
|
|
$
|
31,937
|
|
|
$
|
25,631
|
|
|
$
|
25,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity, Adjusted Tangible Equity and Tangible Assets
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
(dollars in thousands)
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
Shareholders' equity
|
|
$
|
1,181,369
|
|
|
$
|
994,689
|
|
|
$
|
967,665
|
|
|
$
|
973,708
|
|
|
$
|
1,027,685
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
10,238
|
|
|
|
10,238
|
|
|
|
10,238
|
|
|
|
10,238
|
|
|
|
10,238
|
|
Intangible assets
|
|
|
6,700
|
|
|
|
7,052
|
|
|
|
7,404
|
|
|
|
7,756
|
|
|
|
8,081
|
|
Tangible equity
|
|
$
|
1,164,431
|
|
|
$
|
977,399
|
|
|
$
|
950,023
|
|
|
$
|
955,714
|
|
|
$
|
1,009,366
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(113,094
|
)
|
|
|
(89,196
|
)
|
|
|
(107,749
|
)
|
|
|
(87,303
|
)
|
|
|
(24,728
|
)
|
Adjusted tangible equity
|
|
$
|
1,277,525
|
|
|
$
|
1,066,595
|
|
|
$
|
1,057,772
|
|
|
$
|
1,043,017
|
|
|
$
|
1,034,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
15,040,824
|
|
|
$
|
13,774,821
|
|
|
$
|
13,041,678
|
|
|
$
|
12,550,764
|
|
|
$
|
12,520,174
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
10,238
|
|
|
|
10,238
|
|
|
|
10,238
|
|
|
|
10,238
|
|
|
|
10,238
|
|
Intangible assets
|
|
|
6,700
|
|
|
|
7,052
|
|
|
|
7,404
|
|
|
|
7,756
|
|
|
|
8,081
|
|
Tangible assets
|
|
$
|
15,023,886
|
|
|
$
|
13,757,531
|
|
|
$
|
13,024,036
|
|
|
$
|
12,532,770
|
|
|
$
|
12,501,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital (bank level)
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
(dollars in thousands)
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
Shareholders' equity
|
|
$
|
1,263,687
|
|
|
$
|
1,099,404
|
|
|
$
|
1,070,887
|
|
|
$
|
1,078,080
|
|
|
$
|
1,130,104
|
|
Less:
|
Goodwill and other intangibles
|
|
|
(16,938
|
)
|
|
|
(17,290
|
)
|
|
|
(17,642
|
)
|
|
|
(17,994
|
)
|
|
|
(18,319
|
)
|
|
Disallowed servicing asset
|
|
|
(36,650
|
)
|
|
|
(40,783
|
)
|
|
|
(38,925
|
)
|
|
|
(36,570
|
)
|
|
|
(31,927
|
)
|
|
Disallowed deferred tax asset
|
|
|
(70,357
|
)
|
|
|
(71,302
|
)
|
|
|
(71,803
|
)
|
|
|
(72,147
|
)
|
|
|
(74,522
|
)
|
Add:
|
Accumulated losses on securities and cash flow hedges
|
|
|
110,101
|
|
|
|
86,981
|
|
|
|
105,682
|
|
|
|
85,525
|
|
|
|
25,051
|
|
Tier 1 capital
|
|
|
1,249,843
|
|
|
|
1,057,010
|
|
|
|
1,048,199
|
|
|
|
1,036,894
|
|
|
|
1,030,387
|
|
Less:
|
Low-level recourse and residual interests
|
|
|
-
|
|
|
|
(20,424
|
)
|
|
|
(21,587
|
)
|
|
|
(20,431
|
)
|
|
|
(19,079
|
)
|
Add:
|
Allowance for loan and lease losses
|
|
|
77,393
|
|
|
|
78,254
|
|
|
|
77,765
|
|
|
|
83,826
|
|
|
|
80,419
|
|
Total regulatory capital
|
|
$
|
1,327,236
|
|
|
$
|
1,114,840
|
|
|
$
|
1,104,377
|
|
|
$
|
1,100,289
|
|
|
$
|
1,091,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total assets
|
|
$
|
15,022,729
|
|
|
$
|
13,731,482
|
|
|
$
|
13,081,401
|
|
|
$
|
12,550,738
|
|
|
$
|
12,438,222
|
|
Risk-weighted assets
|
|
|
8,424,290
|
|
|
|
7,311,556
|
|
|
|
7,043,371
|
|
|
|
7,007,339
|
|
|
|
6,648,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets (1)
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
(dollars in thousands)
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
Non-accrual loans and leases:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages
|
|
$
|
66,956
|
|
$
|
74,810
|
|
$
|
81,594
|
|
$
|
74,194
|
|
$
|
65,130
|
Commercial and commercial real estate
|
|
|
95,882
|
|
|
89,576
|
|
|
104,829
|
|
|
92,966
|
|
|
88,086
|
Lease financing receivables
|
|
|
1,295
|
|
|
1,861
|
|
|
2,385
|
|
|
1,745
|
|
|
1,986
|
Home equity lines
|
|
|
4,256
|
|
|
3,771
|
|
|
4,251
|
|
|
3,803
|
|
|
2,730
|
Consumer and credit card
|
|
|
573
|
|
|
571
|
|
|
419
|
|
|
471
|
|
|
641
|
Total non-accrual loans and leases
|
|
|
168,962
|
|
|
170,589
|
|
|
193,478
|
|
|
173,179
|
|
|
158,573
|
Accruing loans 90 days or more past due
|
|
|
1,800
|
|
|
5,119
|
|
|
6,673
|
|
|
4,808
|
|
|
4,584
|
Total non-performing loans (NPL)
|
|
|
170,762
|
|
|
175,708
|
|
|
200,151
|
|
|
177,987
|
|
|
163,157
|
Other real estate owned (OREO)
|
|
|
49,248
|
|
|
49,304
|
|
|
42,664
|
|
|
39,431
|
|
|
42,081
|
Total non-performing assets (NPA)
|
|
|
220,010
|
|
|
225,012
|
|
|
242,815
|
|
|
217,418
|
|
|
205,238
|
Troubled debt restructurings (TDR) less than 90 days past due
|
|
|
93,184
|
|
|
92,954
|
|
|
92,628
|
|
|
89,129
|
|
|
79,242
|
Total NPA and TDR (1)
|
|
$
|
313,194
|
|
$
|
317,966
|
|
$
|
335,443
|
|
$
|
306,547
|
|
$
|
284,480
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NPA and TDR
|
|
$
|
313,194
|
|
$
|
317,966
|
|
$
|
335,443
|
|
$
|
306,547
|
|
$
|
284,480
|
Government-insured 90 days or more past due still accruing
|
|
|
1,647,567
|
|
|
1,530,665
|
|
|
1,570,787
|
|
|
883,478
|
|
|
762,461
|
Bank of Florida loans accounted for under ASC 310-30:
|
|
|
|
|
|
|
|
|
|
90 days or more past due
|
|
|
140,797
|
|
|
146,379
|
|
|
149,743
|
|
|
159,767
|
|
|
190,544
|
OREO
|
|
|
20,379
|
|
|
22,852
|
|
|
19,456
|
|
|
19,616
|
|
|
22,566
|
Total regulatory NPA and TDR
|
|
$
|
2,121,937
|
|
$
|
2,017,862
|
|
$
|
2,075,429
|
|
$
|
1,369,408
|
|
$
|
1,260,051
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted credit quality ratios excluding government-insured loans
and loans accounted for under ASC 310-30: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL to total loans
|
|
|
1.57
|
%
|
|
1.80
|
%
|
|
2.18
|
%
|
|
2.23
|
%
|
|
2.16
|
NPA to total assets
|
|
|
1.46
|
|
|
1.63
|
|
|
1.86
|
|
|
1.73
|
|
|
1.64
|
NPA and TDR to total assets
|
|
|
2.08
|
|
|
2.31
|
|
|
2.57
|
|
|
2.44
|
|
|
2.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality ratios including government-insured loans and loans
accounted for under ASC 310-30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL to total loans
|
|
|
18.00
|
%
|
|
18.95
|
%
|
|
20.95
|
%
|
|
15.28
|
%
|
|
14.77
|
NPA to total assets
|
|
|
13.49
|
|
|
13.97
|
|
|
15.20
|
|
|
10.20
|
|
|
9.43
|
NPA and TDR to total assets
|
|
|
14.11
|
|
|
14.65
|
|
|
15.91
|
|
|
10.91
|
|
|
10.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30, 2012, we
expected to fully collect the carrying value of such loans and
foreclosed property.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segments Selected Financial Information
|
|
|
Banking and
|
|
|
|
|
|
|
|
|
|
|
Wealth
|
|
Mortgage
|
|
Corporate
|
|
|
|
|
(dollars in thousands)
|
|
Management
|
|
Banking
|
|
Services
|
|
Eliminations
|
|
Consolidated
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
106,545
|
|
|
$
|
10,496
|
|
|
$
|
(1,418
|
)
|
|
$
|
-
|
|
|
$
|
115,623
|
|
Provision for loan and lease losses
|
|
|
10,315
|
|
|
|
1,040
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,355
|
|
Net interest income after provision for loan and lease losses
|
|
|
96,230
|
|
|
|
9,456
|
|
|
|
(1,418
|
)
|
|
|
-
|
|
|
|
104,268
|
|
Noninterest income
|
|
|
25,228
|
|
|
|
47,873
|
|
|
|
92
|
|
|
|
-
|
|
|
|
73,193
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Foreclosure and OREO expense
|
|
|
7,962
|
|
|
|
2,997
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,959
|
|
Other credit-related expenses
|
|
|
(183
|
)
|
|
|
11,990
|
|
|
|
3
|
|
|
|
-
|
|
|
|
11,810
|
|
All other noninterest expense
|
|
|
51,846
|
|
|
|
56,864
|
|
|
|
27,342
|
|
|
|
-
|
|
|
|
136,052
|
|
Income (loss) before income tax
|
|
|
61,833
|
|
|
|
(14,522
|
)
|
|
|
(28,671
|
)
|
|
|
-
|
|
|
|
18,640
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment items (pre-tax):
|
|
|
|
|
|
|
|
|
|
|
Increase in Bank of Florida non-accretable discount
|
|
|
3,444
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,444
|
|
MSR impairment
|
|
|
-
|
|
|
|
15,144
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,144
|
|
Transaction and non-recurring regulatory related expense
|
|
|
-
|
|
|
|
4,722
|
|
|
|
1,542
|
|
|
|
-
|
|
|
|
6,264
|
|
Adjusted income (loss) before income tax
|
|
|
65,277
|
|
|
|
5,344
|
|
|
|
(27,129
|
)
|
|
|
-
|
|
|
|
43,492
|
|
Total assets as of March 31, 2012
|
|
|
12,494,752
|
|
|
|
1,438,744
|
|
|
|
92,381
|
|
|
|
(251,056
|
)
|
|
|
13,774,821
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratios:
|
|
|
|
|
|
|
|
|
|
|
GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
including foreclosure, OREO expenses and other credit-related
expenses
|
|
|
45.2
|
%
|
|
|
|
|
|
|
|
|
84.1
|
%
|
excluding foreclosure, OREO expenses and other credit-related
expenses
|
|
|
39.3
|
%
|
|
|
|
|
|
|
|
|
72.1
|
%
|
Adjusted basis:
|
|
|
|
|
|
|
|
|
|
|
including foreclosure, OREO expenses and other credit-related
expenses
|
|
|
45.2
|
%
|
|
|
|
|
|
|
|
|
74.8
|
%
|
excluding foreclosure, OREO expenses and other credit-related
expenses
|
|
|
39.3
|
%
|
|
|
|
|
|
|
|
|
63.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
105,107
|
|
|
$
|
9,487
|
|
|
$
|
(1,684
|
)
|
|
$
|
-
|
|
|
$
|
112,910
|
|
Provision for loan and lease losses
|
|
|
8,235
|
|
|
|
769
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,004
|
|
Net interest income after provision for loan and lease losses
|
|
|
96,872
|
|
|
|
8,718
|
|
|
|
(1,684
|
)
|
|
|
-
|
|
|
|
103,906
|
|
Noninterest income
|
|
|
15,728
|
|
|
|
37,204
|
|
|
|
1
|
|
|
|
-
|
|
|
|
52,933
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Foreclosure and OREO expense
|
|
|
4,639
|
|
|
|
4,125
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,764
|
|
Other credit-related expenses
|
|
|
1,634
|
|
|
|
7,922
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,556
|
|
All other noninterest expense
|
|
|
39,941
|
|
|
|
35,910
|
|
|
|
27,540
|
|
|
|
-
|
|
|
|
103,391
|
|
Income (loss) before income tax
|
|
|
66,386
|
|
|
|
(2,035
|
)
|
|
|
(29,223
|
)
|
|
|
-
|
|
|
|
35,128
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment items (pre-tax):
|
|
|
|
|
|
|
|
|
|
|
Early adoption of TDR guidance and policy change
|
|
|
2,517
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,517
|
|
Transaction and non-recurring regulatory related expense
|
|
|
-
|
|
|
|
946
|
|
|
|
2,496
|
|
|
|
-
|
|
|
|
3,442
|
|
Adjusted income (loss) before income tax
|
|
|
68,903
|
|
|
|
(1,089
|
)
|
|
|
(26,727
|
)
|
|
|
-
|
|
|
|
41,087
|
|
Total assets as of June 30, 2011
|
|
|
11,140,910
|
|
|
|
1,482,997
|
|
|
|
130,615
|
|
|
|
(234,348
|
)
|
|
|
12,520,174
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratios:
|
|
|
|
|
|
|
|
|
|
|
GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
including foreclosure, OREO expenses and other credit-related
expenses
|
|
|
38.2
|
%
|
|
|
|
|
|
|
|
|
73.4
|
%
|
excluding foreclosure, OREO expenses and other credit-related
expenses
|
|
|
33.1
|
%
|
|
|
|
|
|
|
|
|
62.3
|
%
|
Adjusted basis:
|
|
|
|
|
|
|
|
|
|
|
including foreclosure, OREO expenses and other credit-related
expenses
|
|
|
38.2
|
%
|
|
|
|
|
|
|
|
|
71.3
|
%
|
excluding foreclosure, OREO expenses and other credit-related
expenses
|
|
|
33.1
|
%
|
|
|
|
|
|
|
|
|
60.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|

Source: EverBank Financial Corp
EverBank Financial Corp Media Contact Justine Navaja,
646-756-3702 everbank@shiftcomm.com or Investor
Relations, 877-755-6722 investor.relations@everbank.com
|