Press Release | About EverBank

EverBank Financial Corp Announces Second Quarter 2012 Financial Results and Initiation of Quarterly Dividend

07/25/2012

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

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