Form 8-K EverBank Financial Corp For: Jul 29
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | July 29, 2015 | |
EverBank Financial Corp
(Exact name of registrant as specified in its charter)
Delaware | 001-35533 | 52-2024090 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
501 Riverside Ave., Jacksonville, FL | 32202 | |||
(Address of principal executive offices) | (Zip Code) | |||
904-281-6000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On July 29, 2015, EverBank Financial Corp (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2015, which press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Item 2.02, as well as the exhibit referenced herein, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).
Item 7.01. Regulation FD Disclosure
On July 29, 2015, the Company distributed and made available to investors, and posted on its website, the financial tables reflecting its performance for the quarter ended June 30, 2015, attached hereto as Exhibit 99.2.
The information contained in this Item 7.01, as well as the exhibit referenced herein, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description. |
99.1 | Press release, dated July 29, 2015, by the Company announcing its financial results for the quarter ended June 30, 2015. |
99.2 | Financial tables distributed and made available to investors, and posted on the Company’s website, on July 29, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
EverBank Financial Corp | |||||
(Registrant) | |||||
By: | /s/ Steven J. Fischer | ||||
Name: | Steven J. Fischer | ||||
Title: | Senior Executive Vice President and Chief Financial Officer | ||||
Dated: July 29, 2015
EXHIBIT LIST
Exhibit No. | Description |
99.1 | Press release, dated July 29, 2015, by the Company announcing its financial results for the quarter ended June 30, 2015. |
99.2 | Financial tables distributed and made available to investors, and posted on the Company’s website, on July 29, 2015. |
EverBank Financial Corp Announces Second Quarter 2015 Financial Results
JACKSONVILLE, FL, July 29, 2015 - EverBank Financial Corp (NYSE: EVER) announced today its financial results for the second quarter ended June 30, 2015.
"We are pleased with our second quarter performance, with continued strong loan growth and higher margins resulting in a 9% increase in net interest income," said Robert M. Clements, chairman and chief executive officer. "We also executed on key strategic initiatives in the quarter that should enhance our future performance, including closing our Ginnie Mae servicing sale and raising non-dilutive growth capital."
Adjusted net income available to common shareholders was $43.9 million for the second quarter 2015, compared to $39.1 million for the first quarter 2015 and $34.4 million for the second quarter 2014.1 Adjusted diluted earnings per common share in the second quarter 2015 were $0.35 compared to $0.31 in the first quarter 2015 and $0.27 in the second quarter 2014.1 GAAP net income available to common shareholders was $39.0 million for the second quarter 2015, compared to $11.7 million for the first quarter 2015 and $32.3 million for the second quarter 2014. GAAP diluted earnings per share in the second quarter 2015 were $0.31 compared to $0.09 in the first quarter 2015 and $0.26 in the second quarter 2014.
"We achieved strong consumer and commercial origination volumes in the quarter and enhanced our commercial product offering with the hiring of an asset based lending team", said W. Blake Wilson, president and chief operating officer. "We also improved our operating efficiency in the quarter and remain focused on disciplined expense management across the organization."
Second Quarter 2015 Key Highlights
• | Total assets of $24.1 billion, an increase of 3% compared to the prior quarter. |
• | Portfolio loans held for investment (HFI) of $19.9 billion, an increase of 7% compared to the prior quarter. |
• | Total originations of $3.5 billion, an increase of 13% compared to the prior quarter and 19% year over year. |
• | Total deposits of $16.5 billion, an increase of 3% compared to the prior quarter. Commercial deposits increased 6% compared to the prior quarter to $3.4 billion. |
• | Net interest margin (NIM) of 3.11%, an increase of 2 basis points compared to the prior quarter. |
• | Adjusted return on average equity (ROE)1 was 10.7% for the quarter and GAAP ROE was 9.5%. |
• | Tangible common equity per common share increased 8% year over year to $13.00 at June 30, 2015. |
• | Adjusted non-performing assets to total assets1 were 0.44% at June 30, 2015. Annualized net charge-offs to average total loans and leases held for investment were 0.10% for the quarter. |
• | Consolidated common equity Tier 1 capital ratio of 10.5% and bank Tier 1 leverage ratio of 8.6% as of June 30, 2015. |
• | Our board of directors approved a 50% increase in the quarterly common stock dividend to $0.06 per share. |
Strategic Business Activities
• | Strengthened our commercial lending capabilities with the hiring of an experienced asset based lending (ABL) team and the purchase of a $92 million ABL portfolio. |
• | Closed on the sale of $5.5 billion of unpaid principal balance of Ginnie Mae MSR to Green Tree Servicing LLC (GTS) on May 20, 2015 and terminated our existing subservicing agreement with GTS. |
• | Increased our consolidated Tier 2 capital through the issuance of $175 million of 5.75% subordinated notes due 2025. |
1 | A reconciliation of Non-GAAP financial measures can be found in the financial tables attached hereto. | |
Balance Sheet
Strong Loan Growth
Total assets were $24.1 billion at June 30, 2015, an increase of $773 million, or 3%, compared to the prior quarter and an increase of $4.4 billion, or 22%, year over year. The sequential increase was driven by a $1.4 billion, or 7%, increase in portfolio loans HFI to $19.9 billion, partially offset by a $0.5 billion, or 29%, decrease in loans held for sale (HFS) to $1.3 billion.
Loans HFI for the second quarter of 2015, as compared to the first quarter of 2015 and second quarter of 2014, were comprised of:
($ in millions) | Jun 30, 2015 | Mar 31, 2015 | Jun 30, 2014 | % Change (Q/Q) | % Change (Y/Y) | ||||||||||||
Consumer Banking: | |||||||||||||||||
Residential loans | $ | 6,899 | $ | 6,265 | $ | 5,205 | 10 | % | 33 | % | |||||||
Government insured pool buyouts | 3,824 | 3,514 | 3,197 | 9 | % | 20 | % | ||||||||||
Total residential mortgages | 10,724 | 9,779 | 8,402 | 10 | % | 28 | % | ||||||||||
Home equity & other | 242 | 175 | 144 | 38 | % | 68 | % | ||||||||||
Total Consumer Banking | 10,966 | 9,955 | 8,547 | 10 | % | 28 | % | ||||||||||
Commercial Banking: | |||||||||||||||||
Commercial real estate & other commercial | 3,732 | 3,550 | 3,234 | 5 | % | 15 | % | ||||||||||
Mortgage warehouse finance | 2,156 | 2,103 | 1,311 | 2 | % | 64 | % | ||||||||||
Lender finance | 914 | 852 | 625 | 7 | % | 46 | % | ||||||||||
Commercial and commercial real estate | 6,802 | 6,505 | 5,170 | 5 | % | 32 | % | ||||||||||
Equipment financing receivables | 2,147 | 2,074 | 1,578 | 4 | % | 36 | % | ||||||||||
Total Commercial Banking | 8,948 | 8,579 | 6,748 | 4 | % | 33 | % | ||||||||||
Total Loans HFI | $ | 19,914 | $ | 18,534 | $ | 15,295 | 7 | % | 30 | % | |||||||
Total consumer banking loans HFI increased $1.0 billion, or 10%, compared to the prior quarter and increased $2.4 billion, or 28%, year over year, to $11.0 billion. Total residential mortgages increased $944 million, or 10%, in the quarter driven by strong retained jumbo loan originations and continued growth in our government insured pool buyout loans.
Total commercial banking loans and leases HFI increased $369 million, or 4%, compared to the prior quarter and $2.2 billion, or 33%, year over year to $8.9 billion. Commercial real estate and other commercial loans increased $181 million, or 5% compared to the prior quarter, to $3.7 billion, equipment financing receivables increased $73 million, or 4%, to $2.1 billion, lender finance increased $63 million, or 7%, to $914 million and mortgage warehouse finance outstanding balances increased $52 million, or 2%, to $2.2 billion.
Loan Origination Activities
The following table presents total organic loan and lease origination information by product type:
($ in millions) | Jun 30, 2015 | Mar 31, 2015 | Jun 30, 2014 | % Change (Q/Q) | % Change (Y/Y) | ||||||||||||
Consumer originations | |||||||||||||||||
Conventional loans | $ | 1,259 | $ | 1,065 | $ | 1,125 | 18 | % | 12 | % | |||||||
Prime jumbo loans | 1,458 | 1,301 | 1,108 | 12 | % | 32 | % | ||||||||||
2,718 | 2,366 | 2,233 | 15 | % | 22 | % | |||||||||||
Commercial originations | |||||||||||||||||
Commercial & commercial real estate | 466 | 480 | 285 | (3 | )% | 63 | % | ||||||||||
Equipment financing receivables | 293 | 223 | 399 | 31 | % | (26 | )% | ||||||||||
759 | 704 | 684 | 8 | % | 11 | % | |||||||||||
Total organic originations | $ | 3,477 | $ | 3,070 | $ | 2,917 | 13 | % | 19 | % | |||||||
Total originations were $3.5 billion for the second quarter of 2015, an increase of 13% compared to the prior quarter and 19% year over year. Retained originations were $1.8 billion for the second quarter 2015, an increase of 9% compared to the prior quarter and 13% year over year. Year to date, retained originations were $3.5 billion, an increase of 31% year over year.
Commercial originations were $759 million for the second quarter of 2015, an increase of 8% compared to the prior quarter and 11% year over year. Consumer originations were $2.7 billion for the second quarter of 2015, an increase of 15% compared to the prior quarter and 22% year over year. Prime jumbo origination volume was $1.5 billion in the second quarter, an increase of 12% compared to the prior quarter and an increase of 32% year over year. Residential loans sold during the quarter totaled $2.3 billion, an increase of 70% compared to the prior quarter driven by the sale of $652 million in longer duration jumbo hybrid ARMs. The mix of purchase transactions for the second quarter was 58% of total originations compared to 41% in the prior quarter.
Deposits and Other Funding
Our deposits for the second quarter ending June 30, 2015, as compared to the first quarter of 2015 and second quarter of 2014, were comprised of the following:
($ in millions) | Jun 30, 2015 | Mar 31, 2015 | Jun 30, 2014 | % Change (Q/Q) | % Change (Y/Y) | ||||||||||||
Noninterest-bearing demand | $ | 1,153 | $ | 1,213 | $ | 1,056 | (5 | )% | 9 | % | |||||||
Interest-bearing demand | 3,626 | 3,675 | 2,802 | (1 | )% | 29 | % | ||||||||||
Savings and money market accounts, excluding market-based | 5,211 | 5,137 | 4,864 | 1 | % | 7 | % | ||||||||||
Global market-based accounts | 784 | 779 | 989 | 1 | % | (21 | )% | ||||||||||
Time, excluding market-based | 5,709 | 5,272 | 4,164 | 8 | % | 37 | % | ||||||||||
Total deposits | $ | 16,484 | $ | 16,077 | $ | 13,875 | 3 | % | 19 | % | |||||||
Consumer deposits | $ | 13,084 | $ | 12,865 | $ | 12,050 | 2 | % | 9 | % | |||||||
Commercial deposits | 3,400 | 3,211 | 1,824 | 6 | % | 86 | % | ||||||||||
Total deposits | $ | 16,484 | $ | 16,077 | $ | 13,875 | 3 | % | 19 | % | |||||||
Total deposits were $16.5 billion at June 30, 2015, an increase of $407 million, or 3% compared to the prior quarter and an increase of $2.6 billion, or 19%, year over year. Commercial deposits were $3.4 billion, an increase of $188 million, or 6%, compared to the prior quarter and $1.6 billion, or 86%, year over year. Commercial deposits represented 21% of total deposits at quarter end, compared to 20% in the prior quarter and 13% a year ago.
Total other borrowings were $5.2 billion at June 30, 2015, compared to $5.2 billion in the prior quarter and $3.8 billion at June 30, 2014.
Capital Strength
Total shareholders' equity was $1.8 billion at June 30, 2015, an increase of 4% quarter over quarter and 8% year over year. As of June 30, 2015, our consolidated common equity Tier 1 capital ratio was 10.5% and the bank’s Tier 1 leverage and total risk-based capital ratios were 8.6% and 13.2%, respectively. As a result, the bank is considered "well-capitalized" under all applicable regulatory guidelines. Our estimate of the fully phased-in Basel III consolidated common equity Tier 1 capital ratio was between 9.75% and 10.00%.
Credit Quality
Adjusted non-performing assets were 0.44% of total assets at June 30, 2015, compared to 0.40% for the prior quarter and 0.51% at June 30, 2014. Net charge-offs during the second quarter of 2015 were $5 million, a decrease of $2 million compared to the prior quarter. On an annualized basis, net charge-offs were 0.10% of total average loans and leases held for investment, compared to 0.16% for the prior quarter and 0.19% for the second quarter of 2014.
Income Statement Highlights
Revenue
Revenue for the second quarter of 2015 was $253 million, an increase of $65 million, or 35%, from $188 million in the first quarter of 2015. Excluding the change in valuation allowance on our mortgage servicing rights (MSR) in the first and second quarters of 2015, revenue would have been $237 million, an increase of 3% compared to the prior quarter.
Net Interest Income
Net interest income was $169 million for the second quarter of 2015, an increase of $14 million, or 9%, compared to the prior quarter. This increase resulted from a $1.5 billion, or 7%, increase in average interest-earning assets compared to the prior quarter, driven by higher average commercial loans and leases HFI in addition to higher average residential mortgage loans HFI and average loans HFS, partially offset by a $1.1 billion, or 6%, increase in average interest-bearing liabilities.
Net interest margin increased to 3.11% for the second quarter of 2015 from 3.09% in the first quarter of 2015, driven by a flat average interest-earning asset yield of 3.99% and a 0.04% decrease in the average cost of total interest-bearing liabilities to 0.99%.
Noninterest Income
Noninterest income for the second quarter of 2015 was $84 million, an increase of $51 million, or 158%, compared to the prior quarter. Net loan servicing income increased $56 million compared to the prior quarter to $26 million driven by the change in valuation allowance on our MSR, which included a $16 million recovery in the second quarter compared to a $43 million impairment in the prior quarter. Excluding the impact of the valuation allowance, net loan servicing income for the second quarter would have been $11 million, a decrease of $3 million, or 24%, compared to the prior quarter, driven by lower loan servicing fees resulting from the closing of the GTS transaction in May 2015.
Gain on sale of loans was $41 million, a decrease of $2 million, or 5%, compared to the prior quarter, driven by a greater percentage of prime jumbo loans sold in the quarter.
Noninterest Expense
Noninterest expense for the second quarter of 2015 was $178 million, an increase of $22 million, or 14%, compared to the prior quarter. Salaries, commissions and employee benefits were $96 million, an increase of $4 million, or 4%, compared to the prior quarter driven primarily by higher commissions resulting from strong residential origination volumes in the quarter. General and administrative expense was $60 million, an increase of $18 million, or 42%, compared to the prior quarter driven by $15 million in restructuring related expenses resulting from the previously announced non-core servicing sales.
EverBank's efficiency ratio was 70%, compared to 83% in the prior quarter. Excluding the impact of the $16 million MSR valuation allowance recovery, transaction and other non-recurring expenses, EverBank's adjusted efficiency ratio was 65% for the second quarter compared to 66% in prior quarter.
Dividends
On July 23, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.06 per common share, payable on August 21, 2015, to stockholders of record as of August 11, 2015. Also on July 23, 2015, the Company's Board of Directors declared a quarterly cash dividend of $421.875, payable on October 5, 2015, for each share of 6.75% Series A Non-Cumulative Perpetual Preferred Stock held as of September 18, 2015.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. Eastern Time on Wednesday, July 29, 2015 to discuss its second quarter 2015 results. The dial-in number for the conference call is 1-855-209-8214 and the international dial-in number is 1-412-542-4103. A replay will be available following completion of the call and can be accessed by dialing 1-877-344-7529, or for international callers, 1-412-317-0088. The passcode for the replay is 10068593. The replay will be available through August 6, 2015. A live webcast of the conference call will also be available on the investor relations page of the Company's website at https://about.everbank/investors.
About EverBank Financial Corp
EverBank Financial Corp, through its wholly-owned subsidiary EverBank, provides a diverse range of financial products and services directly to clients nationwide through multiple business channels. Headquartered in Jacksonville, Florida, EverBank has $24.1 billion in assets and $16.5 billion in deposits as of June 30, 2015. 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 clients through the internet, over the phone, through the mail, at its Florida-based financial centers and at other business offices throughout the country. More information on EverBank can be found at https://about.everbank/investors.
Investor Contact |
Scott Verlander |
904.623.8455 |
Media Contact |
Michael Cosgrove |
904.623.2029 |
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; our capital and liquidity requirements (including under regulatory capital standards, such as Basel III capital standards) and our ability to generate or raise capital; 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 loan and lease charge-offs; legislative or regulatory actions affecting or concerning mortgage loan modification and refinancing and foreclosure; 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; our ability to comply with the amended consent order and the terms and conditions of our settlement of the Independent Foreclosure Review; concentration of mass-affluent clients and jumbo mortgages; hedging strategies; the effectiveness of our derivatives to manage interest rate risk; delinquencies on our equipment leases and reductions in the resale value of leased equipment; increases in loan repurchase requests and our reserves for loan repurchases; changes in currency exchange rates or other political or economic changes in certain foreign countries; 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 and dispositions; 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.
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
June 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 59,976 | $ | 49,436 | ||||
Interest-bearing deposits in banks | 498,184 | 317,228 | ||||||
Total cash and cash equivalents | 558,160 | 366,664 | ||||||
Investment securities: | ||||||||
Available for sale, at fair value | 656,587 | 776,311 | ||||||
Held to maturity (fair value of $111,721 and $118,230 as of June 30, 2015 and December 31, 2014, respectively) | 109,393 | 115,084 | ||||||
Other investments | 239,089 | 196,609 | ||||||
Total investment securities | 1,005,069 | 1,088,004 | ||||||
Loans held for sale (includes $1,315,966 and $728,378 carried at fair value as of June 30, 2015 and December 31, 2014, respectively) | 1,330,779 | 973,507 | ||||||
Loans and leases held for investment: | ||||||||
Loans and leases held for investment, net of unearned income | 19,913,895 | 17,760,253 | ||||||
Allowance for loan and lease losses | (66,091 | ) | (60,846 | ) | ||||
Total loans and leases held for investment, net | 19,847,804 | 17,699,407 | ||||||
Mortgage servicing rights (MSR), net | 362,803 | 435,619 | ||||||
Premises and equipment, net | 52,176 | 56,457 | ||||||
Other assets | 963,700 | 998,130 | ||||||
Total Assets | $ | 24,120,491 | $ | 21,617,788 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,152,917 | $ | 984,703 | ||||
Interest-bearing | 15,330,610 | 14,523,994 | ||||||
Total deposits | 16,483,527 | 15,508,697 | ||||||
Other borrowings | 5,247,000 | 4,004,000 | ||||||
Trust preferred securities and subordinated notes payable | 276,452 | 103,750 | ||||||
Accounts payable and accrued liabilities | 293,691 | 253,747 | ||||||
Total Liabilities | 22,300,670 | 19,870,194 | ||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity | ||||||||
Series A 6.75% Non-Cumulative Perpetual Preferred Stock, $0.01 par value (liquidation preference of $25,000 per share; 10,000,000 shares authorized; 6,000 issued and outstanding at June 30, 2015 and December 31, 2014) | 150,000 | 150,000 | ||||||
Common Stock, $0.01 par value (500,000,000 shares authorized; 124,611,940 and 123,679,049 issued and outstanding at June 30, 2015 and December 31, 2014, respectively) | 1,246 | 1,237 | ||||||
Additional paid-in capital | 865,632 | 851,158 | ||||||
Retained earnings | 851,602 | 810,796 | ||||||
Accumulated other comprehensive income (loss) (AOCI) | (48,659 | ) | (65,597 | ) | ||||
Total Shareholders’ Equity | 1,819,821 | 1,747,594 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 24,120,491 | $ | 21,617,788 | ||||
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans and leases | $ | 210,347 | $ | 170,325 | $ | 405,196 | $ | 328,795 | ||||||||
Interest and dividends on investment securities | 7,447 | 9,818 | 15,469 | 19,649 | ||||||||||||
Other interest income | 159 | 110 | 319 | 272 | ||||||||||||
Total Interest Income | 217,953 | 180,253 | 420,984 | 348,716 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 30,219 | 23,442 | 59,983 | 46,049 | ||||||||||||
Other borrowings | 18,709 | 16,620 | 36,538 | 31,632 | ||||||||||||
Total Interest Expense | 48,928 | 40,062 | 96,521 | 77,681 | ||||||||||||
Net Interest Income | 169,025 | 140,191 | 324,463 | 271,035 | ||||||||||||
Provision for Loan and Lease Losses | 7,932 | 6,123 | 16,932 | 9,194 | ||||||||||||
Net Interest Income after Provision for Loan and Lease Losses | 161,093 | 134,068 | 307,531 | 261,841 | ||||||||||||
Noninterest Income | ||||||||||||||||
Loan servicing fee income | 29,569 | 40,417 | 63,701 | 87,034 | ||||||||||||
Amortization of mortgage servicing rights | (19,006 | ) | (19,026 | ) | (39,305 | ) | (39,598 | ) | ||||||||
Recovery (impairment) of mortgage servicing rights | 15,727 | — | (27,625 | ) | 4,941 | |||||||||||
Net loan servicing income (loss) | 26,290 | 21,391 | (3,229 | ) | 52,377 | |||||||||||
Gain on sale of loans | 40,588 | 47,703 | 83,211 | 81,554 | ||||||||||||
Loan production revenue | 6,195 | 5,347 | 11,582 | 9,926 | ||||||||||||
Deposit fee income | 3,052 | 4,533 | 7,102 | 7,868 | ||||||||||||
Other lease income | 2,082 | 3,806 | 6,162 | 8,711 | ||||||||||||
Other | 5,607 | 6,488 | 11,507 | 13,416 | ||||||||||||
Total Noninterest Income | 83,814 | 89,268 | 116,335 | 173,852 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries, commissions and other employee benefits expense | 95,769 | 95,259 | 187,755 | 192,953 | ||||||||||||
Equipment expense | 15,258 | 17,345 | 31,303 | 35,993 | ||||||||||||
Occupancy expense | 7,156 | 7,885 | 13,012 | 15,957 | ||||||||||||
General and administrative expense | 59,785 | 46,831 | 101,940 | 83,629 | ||||||||||||
Total Noninterest Expense | 177,968 | 167,320 | 334,010 | 328,532 | ||||||||||||
Income before Provision for Income Taxes | 66,939 | 56,016 | 89,856 | 107,161 | ||||||||||||
Provision for Income Taxes | 25,372 | 21,234 | 34,059 | 40,619 | ||||||||||||
Net Income | $ | 41,567 | $ | 34,782 | $ | 55,797 | $ | 66,542 | ||||||||
Less: Net Income Allocated to Preferred Stock | (2,531 | ) | (2,531 | ) | (5,062 | ) | (5,062 | ) | ||||||||
Net Income Allocated to Common Shareholders | $ | 39,036 | $ | 32,251 | $ | 50,735 | $ | 61,480 | ||||||||
Basic Earnings Per Common Share | $ | 0.31 | $ | 0.26 | $ | 0.41 | $ | 0.50 | ||||||||
Diluted Earnings Per Common Share | $ | 0.31 | $ | 0.26 | $ | 0.40 | $ | 0.49 | ||||||||
Dividends Declared Per Common Share | $ | 0.04 | $ | 0.03 | $ | 0.08 | $ | 0.06 | ||||||||
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 Efficiency Ratio, Adjusted Return on Equity, Tangible Shareholders’ Equity, Tangible Common Shareholders' Equity, Tangible Assets and Adjusted Non-Performing Asset Ratio 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 provide meaningful additional information about 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, except per share data) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
Net income | $ | 41,567 | $ | 14,230 | $ | 38,021 | $ | 43,519 | $ | 34,782 | ||||||||||
Transaction expense and non-recurring regulatory related expense, net of tax | 3,745 | 1,498 | 2,502 | 2,201 | 1,294 | |||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount, net of tax | 159 | (967 | ) | (205 | ) | 198 | 423 | |||||||||||||
MSR impairment (recovery), net of tax | (9,751 | ) | 26,879 | — | (1,904 | ) | — | |||||||||||||
Restructuring cost, net of tax | 10,667 | — | (164 | ) | — | — | ||||||||||||||
OTTI losses on investment securities (Volcker Rule), net of tax | — | — | — | — | 425 | |||||||||||||||
Adjusted net income | $ | 46,387 | $ | 41,640 | $ | 40,154 | $ | 44,014 | $ | 36,924 | ||||||||||
Adjusted net income allocated to preferred stock | 2,531 | 2,531 | 2,531 | 2,532 | 2,531 | |||||||||||||||
Adjusted net income allocated to common shareholders | $ | 43,856 | $ | 39,109 | $ | 37,623 | $ | 41,482 | $ | 34,393 | ||||||||||
Adjusted net earnings per common share, basic | $ | 0.35 | $ | 0.32 | $ | 0.31 | $ | 0.34 | $ | 0.28 | ||||||||||
Adjusted net earnings per common share, diluted | $ | 0.35 | $ | 0.31 | $ | 0.30 | $ | 0.33 | $ | 0.27 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
(units in thousands) | ||||||||||||||||||||
Basic | 124,348 | 123,939 | 123,278 | 122,950 | 122,840 | |||||||||||||||
Diluted | 126,523 | 126,037 | 125,646 | 125,473 | 125,389 | |||||||||||||||
Adjusted Efficiency Ratio | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | |||||||||||||||
Net interest income | $ | 169,025 | $ | 155,438 | $ | 147,436 | $ | 146,336 | $ | 140,191 | ||||||||||
Noninterest income | 83,814 | 32,521 | 75,173 | 88,214 | 89,268 | |||||||||||||||
Total revenue | 252,839 | 187,959 | 222,609 | 234,550 | 229,459 | |||||||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
MSR impairment (recovery) | (15,727 | ) | 43,352 | — | (3,070 | ) | — | |||||||||||||
Restructuring cost | 96 | — | (465 | ) | — | — | ||||||||||||||
OTTI losses on securities (Volcker Rule) | — | — | — | — | 685 | |||||||||||||||
Adjusted total revenue | $ | 237,208 | $ | 231,311 | $ | 222,144 | $ | 231,480 | $ | 230,144 | ||||||||||
Noninterest expense | $ | 177,968 | $ | 156,042 | $ | 152,657 | $ | 157,753 | $ | 167,320 | ||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | (6,041 | ) | (2,417 | ) | (4,035 | ) | (3,550 | ) | (2,087 | ) | ||||||||||
Restructuring cost | (17,108 | ) | — | (200 | ) | — | — | |||||||||||||
Adjusted noninterest expense | $ | 154,819 | $ | 153,625 | $ | 148,422 | $ | 154,203 | $ | 165,233 | ||||||||||
GAAP efficiency ratio | 70 | % | 83 | % | 69 | % | 67 | % | 73 | % | ||||||||||
Adjusted efficiency ratio | 65 | % | 66 | % | 67 | % | 67 | % | 72 | % | ||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||
Regulatory Capital(1) (bank level) | |||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 2,000,597 | $ | 1,793,270 | $ | 1,789,398 | $ | 1,769,205 | $ | 1,714,454 | |||||||||||
Less: | Goodwill and other intangibles | (47,253 | ) | (47,442 | ) | (49,589 | ) | (49,957 | ) | (50,328 | ) | ||||||||||
Disallowed servicing asset | (31,625 | ) | (46,302 | ) | (32,054 | ) | (23,524 | ) | (29,028 | ) | |||||||||||
Disallowed deferred tax asset | — | (659 | ) | — | — | (61,737 | ) | ||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 47,179 | 68,225 | 64,002 | 49,516 | 52,121 | |||||||||||||||
Tier 1 capital | (A) | 1,968,898 | 1,767,092 | 1,771,757 | 1,745,240 | 1,625,482 | |||||||||||||||
Add: | Allowance for loan and lease losses | 67,196 | 62,846 | 60,846 | 57,245 | 56,728 | |||||||||||||||
Total regulatory capital | (B) | $ | 2,036,094 | $ | 1,829,938 | $ | 1,832,603 | $ | 1,802,485 | $ | 1,682,210 | ||||||||||
Adjusted total assets | (C) | $ | 23,000,873 | $ | 21,732,119 | $ | 21,592,849 | $ | 20,480,723 | $ | 19,660,793 | ||||||||||
Risk-weighted assets | (D) | 15,464,920 | 14,822,821 | 13,658,685 | 12,869,352 | 12,579,476 | |||||||||||||||
Tier 1 leverage ratio | (A)/(C) | 8.6 | % | 8.1 | % | 8.2 | % | 8.5 | % | 8.3 | % | ||||||||||
Tier 1 risk-based capital ratio | (A)/(D) | 12.7 | % | 11.9 | % | 13.0 | % | 13.6 | % | 12.9 | % | ||||||||||
Total risk-based capital ratio | (B)/(D) | 13.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | 13.4 | % | ||||||||||
(1) Calculated under Basel III for periods beginning March 31, 2015. Calculated under Basel I for periods through December 31, 2014. | |||||||||||||||||||||
Regulatory Capital(1) (EFC consolidated) | |||||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | $ | 1,679,448 | |||||||||||
Less: | Preferred stock | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | ||||||||||
Goodwill and other intangibles | (47,253 | ) | (47,310 | ) | (49,589 | ) | (49,957 | ) | (50,328 | ) | |||||||||||
Disallowed servicing asset | (44,798 | ) | (53,648 | ) | (32,054 | ) | (23,524 | ) | (29,028 | ) | |||||||||||
Disallowed deferred tax asset | — | (634 | ) | — | — | (61,737 | ) | ||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 48,659 | 69,893 | 65,597 | 51,108 | 53,936 | |||||||||||||||
Common tier 1 capital | (E) | 1,626,429 | 1,576,113 | 1,581,548 | 1,548,650 | 1,442,291 | |||||||||||||||
Add: | Preferred stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Add: | Additional tier 1 capital (trust preferred securities) | 103,750 | 103,750 | 103,750 | 103,750 | 103,750 | |||||||||||||||
Tier 1 capital | (F) | 1,880,179 | 1,829,863 | 1,835,298 | 1,802,400 | 1,696,041 | |||||||||||||||
Add: | Subordinated notes payable | 172,702 | — | — | — | — | |||||||||||||||
Add: | Allowance for loan and lease losses | 67,196 | 62,846 | 60,846 | 57,245 | 56,728 | |||||||||||||||
Total regulatory capital | (G) | $ | 2,120,077 | $ | 1,892,709 | $ | 1,896,144 | $ | 1,859,645 | $ | 1,752,769 | ||||||||||
Adjusted total assets | (H) | $ | 22,997,941 | $ | 21,738,727 | $ | 21,601,742 | $ | 20,487,969 | $ | 19,666,663 | ||||||||||
Risk-weighted assets | (I) | 15,454,736 | 14,819,123 | 13,665,981 | 12,875,007 | 12,583,537 | |||||||||||||||
Common equity tier 1 ratio | (E)/(I) | 10.5 | % | 10.6 | % | 11.6 | % | 12.0 | % | 11.5 | % | ||||||||||
Tier 1 leverage ratio | (F)/(H) | 8.2 | % | 8.4 | % | 8.5 | % | 8.8 | % | 8.6 | % | ||||||||||
Tier 1 risk-based capital ratio | (F)/(I) | 12.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | 13.5 | % | ||||||||||
Total risk-based capital ratio | (G)/(I) | 13.7 | % | 12.8 | % | 13.9 | % | 14.4 | % | 13.9 | % | ||||||||||
(1) Calculated under Basel III for periods beginning March 31, 2015. Calculated under Basel I for periods through December 31, 2014. | |||||||||||||||||||||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Tangible Equity, Tangible Common Equity and Tangible Assets | ||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
Shareholders’ equity | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | $ | 1,679,448 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | |||||||||||||||
Intangible assets | 2,651 | 3,178 | 3,705 | 4,232 | 4,759 | |||||||||||||||
Tangible equity | 1,770,311 | 1,707,775 | 1,697,030 | 1,669,932 | 1,627,830 | |||||||||||||||
Less: | ||||||||||||||||||||
Perpetual preferred stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Tangible common equity | $ | 1,620,311 | $ | 1,557,775 | $ | 1,547,030 | $ | 1,519,932 | $ | 1,477,830 | ||||||||||
Total assets | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | $ | 19,753,820 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | |||||||||||||||
Intangible assets | 2,651 | 3,178 | 3,705 | 4,232 | 4,759 | |||||||||||||||
Tangible assets | $ | 24,070,981 | $ | 23,297,182 | $ | 21,567,224 | $ | 20,459,251 | $ | 19,702,202 | ||||||||||
Non-Performing Assets(1) | ||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
Non-accrual loans and leases: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | $ | 26,500 | $ | 24,840 | $ | 24,576 | $ | 23,067 | $ | 22,212 | ||||||||||
Home equity lines | 2,169 | 2,191 | 2,363 | 2,152 | 1,903 | |||||||||||||||
Other consumer and credit card | — | 29 | 38 | 31 | 20 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 48,082 | 37,025 | 41,140 | 46,819 | 44,172 | |||||||||||||||
Equipment financing receivables | 12,417 | 10,775 | 8,866 | 6,803 | 6,475 | |||||||||||||||
Total non-accrual loans and leases | 89,168 | 74,860 | 76,983 | 78,872 | 74,782 | |||||||||||||||
Accruing loans 90 days or more past due | — | — | — | — | — | |||||||||||||||
Total non-performing loans (NPL) | 89,168 | 74,860 | 76,983 | 78,872 | 74,782 | |||||||||||||||
Other real estate owned (OREO) | 16,826 | 17,588 | 22,509 | 24,501 | 25,530 | |||||||||||||||
Total non-performing assets (NPA) | 105,994 | 92,448 | 99,492 | 103,373 | 100,312 | |||||||||||||||
Troubled debt restructurings (TDR) less than 90 days past due | 14,693 | 15,251 | 13,634 | 16,547 | 16,687 | |||||||||||||||
Total NPA and TDR(1) | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | $ | 116,999 | ||||||||||
Total NPA and TDR | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | $ | 116,999 | ||||||||||
Government insured 90 days or more past due still accruing | 2,901,184 | 2,662,619 | 2,646,415 | 2,632,744 | 2,424,166 | |||||||||||||||
Loans accounted for under ASC 310-30: | ||||||||||||||||||||
90 days or more past due | 4,571 | 5,165 | 8,448 | 10,519 | 23,159 | |||||||||||||||
Total regulatory NPA and TDR | $ | 3,026,442 | $ | 2,775,483 | $ | 2,767,989 | $ | 2,763,183 | $ | 2,564,324 | ||||||||||
Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30: (1) | ||||||||||||||||||||
NPL to total loans | 0.42 | % | 0.37 | % | 0.41 | % | 0.45 | % | 0.44 | % | ||||||||||
NPA to total assets | 0.44 | % | 0.40 | % | 0.46 | % | 0.50 | % | 0.51 | % | ||||||||||
NPA and TDR to total assets | 0.50 | % | 0.46 | % | 0.52 | % | 0.58 | % | 0.59 | % | ||||||||||
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30: | ||||||||||||||||||||
NPL to total loans | 14.14 | % | 13.49 | % | 14.63 | % | 15.65 | % | 14.89 | % | ||||||||||
NPA to total assets | 12.49 | % | 11.82 | % | 12.74 | % | 13.39 | % | 12.90 | % | ||||||||||
NPA and TDR to total assets | 12.55 | % | 11.89 | % | 12.80 | % | 13.47 | % | 12.98 | % | ||||||||||
(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 accounted for under ASC 310-30 because we expect to fully collect the carrying value of such loans and foreclosed property. |
Exhibit 99.2
EverBank Financial Corp and Subsidiaries
Quarterly Financial Tables
June 30, 2015
Table of Contents
Table 1 | Financial Highlights | ||
Table 2 | Consolidated Statements of Income | ||
Table 3 | Consolidated Balance Sheets | ||
Table 4 | Business Segments Selected Financial Information | ||
Table 5 | Average Balances and Interest Rates | ||
Table 6a | Loans and Leases Held for Investment | ||
Table 6b | Deposits | ||
Table 7 | General and Administrative Expense | ||
Table 8 | Non-Performing Assets | ||
Table 9 | Credit Reserves | ||
Table 9a | Allowance for Loan and Lease Losses Activity | ||
Table 9b | Allowance for Loan and Lease Losses Ratio | ||
Table 9c | Reserves for Repurchase Obligations for Loans Sold or Securitized | ||
Table 10 | Reconciliation of Non-GAAP Measures | ||
Table 10a | Adjusted Net Income | ||
Table 10b | Adjusted Efficiency Ratio | ||
Table 10c | Regulatory Capital (bank level) | ||
Table 10d | Regulatory Capital (EFC consolidated) | ||
Table 10e | Tangible Equity, Tangible Common Equity and Tangible Assets | ||
Table 11 | Residential Mortgage Lending and Servicing | ||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Financial Highlights | Table 1 | |||||||||||||||||||
As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||
(dollars in thousands, except per share amounts) | Jun 30, 2015 | Mar 31, 2015 | Jun 30, 2014 | Jun 30, 2015 | Jun 30, 2014 | |||||||||||||||
Operating Results: | ||||||||||||||||||||
Total revenue(1) | $ | 252,839 | $ | 187,959 | $ | 229,459 | $ | 440,798 | $ | 444,887 | ||||||||||
Net interest income | 169,025 | 155,438 | 140,191 | 324,463 | 271,035 | |||||||||||||||
Provision for loan and lease losses | 7,932 | 9,000 | 6,123 | 16,932 | 9,194 | |||||||||||||||
Noninterest income | 83,814 | 32,521 | 89,268 | 116,335 | 173,852 | |||||||||||||||
Noninterest expense | 177,968 | 156,042 | 167,320 | 334,010 | 328,532 | |||||||||||||||
Net income | 41,567 | 14,230 | 34,782 | 55,797 | 66,542 | |||||||||||||||
Net earnings per common share, basic | 0.31 | 0.09 | 0.26 | 0.41 | 0.50 | |||||||||||||||
Net earnings per common share, diluted | 0.31 | 0.09 | 0.26 | 0.40 | 0.49 | |||||||||||||||
Performance Metrics: | ||||||||||||||||||||
Adjusted net earnings per common share, diluted(2) | $ | 0.35 | $ | 0.31 | $ | 0.27 | $ | 0.66 | $ | 0.49 | ||||||||||
Yield on interest-earning assets | 3.99 | % | 3.99 | % | 4.12 | % | 3.99 | % | 4.21 | % | ||||||||||
Cost of interest-bearing liabilities | 0.99 | % | 1.03 | % | 1.02 | % | 1.01 | % | 1.05 | % | ||||||||||
Net interest margin | 3.11 | % | 3.09 | % | 3.22 | % | 3.10 | % | 3.30 | % | ||||||||||
Return on average assets | 0.72 | % | 0.26 | % | 0.74 | % | 0.50 | % | 0.74 | % | ||||||||||
Return on average risk-weighted assets(3) (9) | 1.10 | % | 0.40 | % | 1.15 | % | 0.76 | % | 1.12 | % | ||||||||||
Return on average equity(4) | 9.5 | % | 2.9 | % | 8.6 | % | 6.3 | % | 8.2 | % | ||||||||||
Adjusted return on average equity(5) | 10.7 | % | 9.7 | % | 9.1 | % | 10.2 | % | 8.3 | % | ||||||||||
Efficiency ratio(6) | 70 | % | 83 | % | 73 | % | 76 | % | 74 | % | ||||||||||
Adjusted efficiency ratio(7) | 65 | % | 66 | % | 72 | % | 66 | % | 74 | % | ||||||||||
Loans and leases held for investment as a percentage of deposits | 121 | % | 115 | % | 110 | % | 121 | % | 110 | % | ||||||||||
Loans and leases held for investment excluding government insured pool buyouts as a percentage of deposits | 98 | % | 93 | % | 87 | % | 98 | % | 87 | % | ||||||||||
Credit Quality Ratios: | ||||||||||||||||||||
Adjusted non-performing assets as a percentage of total assets(8) | 0.44 | % | 0.40 | % | 0.51 | % | 0.44 | % | 0.51 | % | ||||||||||
Net charge-offs to average loans and leases held for investment | 0.10 | % | 0.16 | % | 0.19 | % | 0.13 | % | 0.16 | % | ||||||||||
ALLL as a percentage of loans and leases held for investment | 0.33 | % | 0.34 | % | 0.37 | % | 0.33 | % | 0.37 | % | ||||||||||
Government insured pool buyouts as a percentage of loans and leases held for investment | 19 | % | 19 | % | 21 | % | 19 | % | 21 | % | ||||||||||
Capital: | ||||||||||||||||||||
Common equity tier 1 ratio (EFC consolidated; see Table 10d)(9) | 10.5 | % | 10.6 | % | 11.5 | % | 10.5 | % | 11.5 | % | ||||||||||
Tier 1 leverage ratio (bank level; see Table 10c)(9) | 8.6 | % | 8.1 | % | 8.3 | % | 8.6 | % | 8.3 | % | ||||||||||
Total risk-based capital ratio (bank level; see Table 10c)(9) | 13.2 | % | 12.3 | % | 13.4 | % | 13.2 | % | 13.4 | % | ||||||||||
Tangible common equity per common share(10) | $ | 13.00 | $ | 12.55 | $ | 12.02 | $ | 13.00 | $ | 12.02 | ||||||||||
Consumer Banking Metrics: | ||||||||||||||||||||
Unpaid principal balance of loans originated | $ | 2,717,588 | $ | 2,365,962 | $ | 2,232,872 | $ | 5,083,550 | $ | 3,933,368 | ||||||||||
Jumbo residential mortgage loans originated | 1,458,297 | 1,300,746 | 1,108,188 | 2,759,043 | 1,916,326 | |||||||||||||||
Unpaid principal balance of loans sold | 2,333,747 | 1,369,503 | 1,531,713 | 3,703,250 | 2,741,468 | |||||||||||||||
Unpaid principal balance of loans serviced for the Company and others | 44,835,934 | 50,481,475 | 50,790,378 | 44,835,934 | 50,790,378 | |||||||||||||||
Consumer Banking loans as a percentage of loans and leases held for investment | 55 | % | 54 | % | 56 | % | 55 | % | 56 | % | ||||||||||
Consumer deposits | $ | 13,083,912 | $ | 12,865,348 | $ | 12,050,198 | $ | 13,083,912 | $ | 12,050,198 | ||||||||||
Commercial Banking Metrics: | ||||||||||||||||||||
Loan and lease originations: | ||||||||||||||||||||
Commercial and commercial real estate | $ | 465,924 | $ | 480,217 | $ | 285,425 | $ | 946,141 | $ | 443,438 | ||||||||||
Equipment financing receivables | 293,456 | 223,339 | 398,519 | 516,795 | 566,109 | |||||||||||||||
Commercial Banking loans as a percentage of loans and leases held for investment | 45 | % | 46 | % | 44 | % | 45 | % | 44 | % | ||||||||||
Commercial deposits | $ | 3,399,615 | $ | 3,211,339 | $ | 1,824,477 | $ | 3,399,615 | $ | 1,824,477 | ||||||||||
Market Price Per Share of Common Stock: | ||||||||||||||||||||
Closing | $ | 19.65 | $ | 18.03 | $ | 20.16 | $ | 19.65 | $ | 20.16 | ||||||||||
High | 20.21 | 19.16 | 20.61 | 20.21 | 20.61 | |||||||||||||||
Low | 17.82 | 17.24 | 18.08 | 17.24 | 16.40 | |||||||||||||||
Period End Balance Sheet Data: | ||||||||||||||||||||
Loans and leases held for investment, net | $ | 19,847,804 | $ | 18,470,791 | $ | 15,237,916 | $ | 19,847,804 | $ | 15,237,916 | ||||||||||
Total assets | 24,120,491 | 23,347,219 | 19,753,820 | 24,120,491 | 19,753,820 | |||||||||||||||
Deposits | 16,483,527 | 16,076,687 | 13,874,675 | 16,483,527 | 13,874,675 | |||||||||||||||
Total liabilities | 22,300,670 | 21,589,407 | 18,074,372 | 22,300,670 | 18,074,372 | |||||||||||||||
Total shareholders’ equity | 1,819,821 | 1,757,812 | 1,679,448 | 1,819,821 | 1,679,448 | |||||||||||||||
See Notes to Financial Highlights
EverBank Financial Corp and Subsidiaries
Financial Highlights - Notes
(Dollars in thousands)
(1) | Total revenue is defined as net interest income before provision for loan and lease losses and total noninterest income. |
(2) | Adjusted net earnings per common share, diluted is calculated using a numerator based on adjusted net income. Adjusted net earnings per common share, diluted is a non-GAAP financial measure and its most directly comparable GAAP measure is net earnings per common share, diluted. Adjusted net income includes adjustments to our net income for certain significant items that we believe are not reflective of our ongoing business or operating performance. For a reconciliation of adjusted net income to net income, which is the most directly comparable GAAP measure, see Table 10a. |
(3) | Return on average risk-weighted assets equals net income divided by average risk-weighted assets. Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets. For detailed information regarding regulatory capital (EFC consolidated), see Table 10d. |
(4) | Return on average equity is calculated as net income less dividends declared on the Series A 6.75% Non-Cumulative Perpetual Preferred Stock divided by average common shareholders' equity (average shareholders' equity less average Series A 6.75% Non-Cumulative Perpetual Preferred Stock). |
(5) | Adjusted return on average equity is calculated as adjusted net income less dividends declared on the Series A 6.75% Non-Cumulative Perpetual Preferred Stock divided by average common shareholders' equity. Adjusted net income is a non-GAAP measure of our financial performance and its most directly comparable GAAP measure is net income. For a reconciliation of net income to adjusted net income, see Table 10a. |
(6) | The efficiency ratio represents noninterest expense as a percentage of total revenues. We use the efficiency ratio to measure noninterest costs expended to generate a dollar of revenue. |
(7) | The adjusted efficiency ratio represents adjusted noninterest expense as a percentage of adjusted total revenues based on adjusted net income. The adjusted efficiency ratio is a non-GAAP measure of our financial performance and its most directly comparable GAAP measure is the efficiency ratio. For a reconciliation of adjusted net income to net income see Table 10a. For detailed information regarding the adjusted efficiency ratio, see Table 10b. We use the adjusted efficiency ratio to measure adjusted noninterest costs expended to generate a dollar of adjusted revenue. |
(8) | 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 accounted for under ASC 310-30 because we expect to fully collect the carrying value of such loans and foreclosed property. For more detailed information on NPA, see Table 8. |
(9) | Risk-weighted assets and regulatory capital ratios calculated under Basel III for periods beginning March 31, 2015. Risk-weighted assets and regulatory capital ratios calculated under Basel I for periods through December 31, 2014. |
(10) | Calculated as tangible common shareholders' equity divided by shares of common stock. Tangible common shareholders' equity equals shareholders' equity less goodwill, other intangible assets and perpetual preferred stock (see Table 10e). Tangible common equity per common share is calculated using a denominator that includes actual period end common shares outstanding. Tangible common equity per common share is a non-GAAP financial measure, and its most directly comparable GAAP financial measure is book value per common share. |
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Consolidated Statements of Income | Table 2 | |||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(dollars in thousands, except per share data) | Jun 30, 2015 | Mar 31, 2015 | Jun 30, 2014 | Jun 30, 2015 | Jun 30, 2014 | |||||||||||||||
Interest Income | ||||||||||||||||||||
Interest and fees on loans and leases | $ | 210,347 | $ | 194,849 | $ | 170,325 | $ | 405,196 | $ | 328,795 | ||||||||||
Interest and dividends on investment securities | 7,447 | 8,022 | 9,818 | 15,469 | 19,649 | |||||||||||||||
Other interest income | 159 | 160 | 110 | 319 | 272 | |||||||||||||||
Total interest income | 217,953 | 203,031 | 180,253 | 420,984 | 348,716 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 30,219 | 29,764 | 23,442 | 59,983 | 46,049 | |||||||||||||||
Other borrowings | 18,709 | 17,829 | 16,620 | 36,538 | 31,632 | |||||||||||||||
Total interest expense | 48,928 | 47,593 | 40,062 | 96,521 | 77,681 | |||||||||||||||
Net Interest Income | 169,025 | 155,438 | 140,191 | 324,463 | 271,035 | |||||||||||||||
Provision for loan and lease losses | 7,932 | 9,000 | 6,123 | 16,932 | 9,194 | |||||||||||||||
Net Interest Income after Provision for Loan and Lease Losses | 161,093 | 146,438 | 134,068 | 307,531 | 261,841 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Loan servicing fee income | 29,569 | 34,132 | 40,417 | 63,701 | 87,034 | |||||||||||||||
Amortization of mortgage servicing rights | (19,006 | ) | (20,299 | ) | (19,026 | ) | (39,305 | ) | (39,598 | ) | ||||||||||
Recovery (impairment) of mortgage servicing rights | 15,727 | (43,352 | ) | — | (27,625 | ) | 4,941 | |||||||||||||
Net loan servicing income (loss) | 26,290 | (29,519 | ) | 21,391 | (3,229 | ) | 52,377 | |||||||||||||
Gain on sale of loans | 40,588 | 42,623 | 47,703 | 83,211 | 81,554 | |||||||||||||||
Loan production revenue | 6,195 | 5,387 | 5,347 | 11,582 | 9,926 | |||||||||||||||
Deposit fee income | 3,052 | 4,050 | 4,533 | 7,102 | 7,868 | |||||||||||||||
Other lease income | 2,082 | 4,080 | 3,806 | 6,162 | 8,711 | |||||||||||||||
Other | 5,607 | 5,900 | 6,488 | 11,507 | 13,416 | |||||||||||||||
Total noninterest income | 83,814 | 32,521 | 89,268 | 116,335 | 173,852 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Salaries, commissions and other employee benefits expense | 95,769 | 91,986 | 95,259 | 187,755 | 192,953 | |||||||||||||||
Equipment expense | 15,258 | 16,045 | 17,345 | 31,303 | 35,993 | |||||||||||||||
Occupancy expense | 7,156 | 5,856 | 7,885 | 13,012 | 15,957 | |||||||||||||||
General and administrative expense | 59,785 | 42,155 | 46,831 | 101,940 | 83,629 | |||||||||||||||
Total noninterest expense | 177,968 | 156,042 | 167,320 | 334,010 | 328,532 | |||||||||||||||
Income before Income Taxes | 66,939 | 22,917 | 56,016 | 89,856 | 107,161 | |||||||||||||||
Provision for Income Taxes | 25,372 | 8,687 | 21,234 | 34,059 | 40,619 | |||||||||||||||
Net Income | $ | 41,567 | $ | 14,230 | $ | 34,782 | $ | 55,797 | $ | 66,542 | ||||||||||
Net Income Allocated to Preferred Stock | 2,531 | 2,531 | 2,531 | 5,062 | 5,062 | |||||||||||||||
Net Income Allocated to Common Shareholders | $ | 39,036 | $ | 11,699 | $ | 32,251 | $ | 50,735 | $ | 61,480 | ||||||||||
Net Earnings per Common Share, Basic | $ | 0.31 | $ | 0.09 | $ | 0.26 | $ | 0.41 | $ | 0.50 | ||||||||||
Net Earnings per Common Share, Diluted | $ | 0.31 | $ | 0.09 | $ | 0.26 | $ | 0.40 | $ | 0.49 | ||||||||||
Dividends Declared per Common Share | $ | 0.04 | $ | 0.04 | $ | 0.03 | $ | 0.08 | $ | 0.06 | ||||||||||
Dividend payout ratio(1) | 12.90 | % | 44.44 | % | 11.54 | % | 19.51 | % | 12.00 | % | ||||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||||||||
(units in thousands) | ||||||||||||||||||||
Basic | 124,348 | 123,939 | 122,840 | 124,144 | 122,763 | |||||||||||||||
Diluted | 126,523 | 126,037 | 125,389 | 126,283 | 125,205 | |||||||||||||||
(1) | Dividend payout ratio is calculated as dividends declared per common share divided by basic earnings per common share. |
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Consolidated Balance Sheets | Table 3 | |||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 59,976 | $ | 63,094 | $ | 49,436 | $ | 57,835 | $ | 65,433 | ||||||||||
Interest-bearing deposits in banks | 498,184 | 488,954 | 317,228 | 306,265 | 104,563 | |||||||||||||||
Total cash and cash equivalents | 558,160 | 552,048 | 366,664 | 364,100 | 169,996 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Available for sale, at fair value | 656,587 | 719,645 | 776,311 | 987,345 | 1,029,667 | |||||||||||||||
Held to maturity | 109,393 | 115,631 | 115,084 | 113,751 | 118,614 | |||||||||||||||
Other investments | 239,089 | 236,494 | 196,609 | 194,314 | 186,818 | |||||||||||||||
Total investment securities | 1,005,069 | 1,071,770 | 1,088,004 | 1,295,410 | 1,335,099 | |||||||||||||||
Loans held for sale | 1,330,779 | 1,861,306 | 973,507 | 871,736 | 1,704,406 | |||||||||||||||
Loans and leases held for investment: | ||||||||||||||||||||
Loans and leases held for investment, net of unearned income | 19,913,895 | 18,533,637 | 17,760,253 | 16,579,951 | 15,294,644 | |||||||||||||||
Allowance for loan and lease losses | (66,091 | ) | (62,846 | ) | (60,846 | ) | (57,245 | ) | (56,728 | ) | ||||||||||
Total loans and leases held for investment, net | 19,847,804 | 18,470,791 | 17,699,407 | 16,522,706 | 15,237,916 | |||||||||||||||
Mortgage servicing rights (MSR), net | 362,803 | 383,763 | 435,619 | 441,243 | 437,595 | |||||||||||||||
Deferred income taxes, net | — | — | — | 3,162 | 54,351 | |||||||||||||||
Premises and equipment, net | 52,176 | 54,283 | 56,457 | 55,500 | 54,844 | |||||||||||||||
Other assets | 963,700 | 953,258 | 998,130 | 956,485 | 759,613 | |||||||||||||||
Total Assets | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | $ | 19,753,820 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 1,152,917 | $ | 1,213,266 | $ | 984,703 | $ | 1,084,400 | $ | 1,055,556 | ||||||||||
Interest-bearing | 15,330,610 | 14,863,421 | 14,523,994 | 13,389,105 | 12,819,119 | |||||||||||||||
Total deposits | 16,483,527 | 16,076,687 | 15,508,697 | 14,473,505 | 13,874,675 | |||||||||||||||
Other borrowings | 5,247,000 | 5,178,000 | 4,004,000 | 3,977,000 | 3,797,000 | |||||||||||||||
Trust preferred securities and subordinated notes payable | 276,452 | 103,750 | 103,750 | 103,750 | 103,750 | |||||||||||||||
Accounts payable and accrued liabilities | 293,691 | 230,970 | 253,747 | 235,064 | 298,947 | |||||||||||||||
Total Liabilities | 22,300,670 | 21,589,407 | 19,870,194 | 18,789,319 | 18,074,372 | |||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||
Series A 6.75% Non-Cumulative Perpetual Preferred Stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Common Stock | 1,246 | 1,241 | 1,237 | 1,230 | 1,229 | |||||||||||||||
Additional paid-in capital | 865,632 | 858,925 | 851,158 | 840,667 | 837,991 | |||||||||||||||
Retained earnings | 851,602 | 817,539 | 810,796 | 780,234 | 744,164 | |||||||||||||||
Accumulated other comprehensive loss | (48,659 | ) | (69,893 | ) | (65,597 | ) | (51,108 | ) | (53,936 | ) | ||||||||||
Total Shareholders’ Equity | 1,819,821 | 1,757,812 | 1,747,594 | 1,721,023 | 1,679,448 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | $ | 19,753,820 | ||||||||||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Business Segments Selected Financial Information | Table 4 | |||||||||||||||||||
(dollars in thousands) | Consumer Banking | Commercial Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
Three Months Ended June 30, 2015 | ||||||||||||||||||||
Net interest income | $ | 92,355 | $ | 78,266 | $ | (1,596 | ) | $ | — | $ | 169,025 | |||||||||
Provision for loan and lease losses | 3,584 | 4,348 | — | — | 7,932 | |||||||||||||||
Net interest income after provision for loan and lease losses | 88,771 | 73,918 | (1,596 | ) | — | 161,093 | ||||||||||||||
Noninterest income | 71,116 | 12,564 | 134 | — | 83,814 | |||||||||||||||
Noninterest expense | 121,095 | 28,979 | 27,894 | — | 177,968 | |||||||||||||||
Income (loss) before income tax | 38,792 | 57,503 | (29,356 | ) | — | 66,939 | ||||||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | 5,791 | — | 250 | — | 6,041 | |||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount | 354 | (97 | ) | — | — | 257 | ||||||||||||||
MSR impairment (recovery) | (15,727 | ) | — | — | — | (15,727 | ) | |||||||||||||
Restructuring cost | 17,143 | — | 61 | — | 17,204 | |||||||||||||||
Adjusted income (loss) before income tax | $ | 46,353 | $ | 57,406 | $ | (29,045 | ) | $ | — | $ | 74,714 | |||||||||
Total assets as of June 30, 2015 | $ | 15,139,729 | $ | 9,093,639 | $ | 283,285 | $ | (396,162 | ) | $ | 24,120,491 | |||||||||
Total deposits as of June 30, 2015 | 13,083,912 | 3,399,615 | — | — | 16,483,527 | |||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Net interest income | $ | 84,657 | $ | 72,336 | $ | (1,555 | ) | $ | — | $ | 155,438 | |||||||||
Provision for loan and lease losses | 1,393 | 7,607 | — | — | 9,000 | |||||||||||||||
Net interest income after provision for loan and lease losses | 83,264 | 64,729 | (1,555 | ) | — | 146,438 | ||||||||||||||
Noninterest income | 22,000 | 10,373 | 148 | — | 32,521 | |||||||||||||||
Noninterest expense | 98,599 | 27,811 | 29,632 | — | 156,042 | |||||||||||||||
Income (loss) before income tax | 6,665 | 47,291 | (31,039 | ) | — | 22,917 | ||||||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | 2,324 | — | 93 | — | 2,417 | |||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount | — | (1,560 | ) | — | — | (1,560 | ) | |||||||||||||
MSR impairment (recovery) | 43,352 | — | — | — | 43,352 | |||||||||||||||
Adjusted income (loss) before income tax | $ | 52,341 | $ | 45,731 | $ | (30,946 | ) | $ | — | $ | 67,126 | |||||||||
Total assets as of March 31, 2015 | $ | 14,665,509 | $ | 8,760,963 | $ | 211,067 | $ | (290,320 | ) | $ | 23,347,219 | |||||||||
Total deposits as of March 31, 2015 | 12,865,348 | 3,211,339 | — | — | 16,076,687 | |||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Net interest income | $ | 79,994 | $ | 61,780 | $ | (1,583 | ) | $ | — | $ | 140,191 | |||||||||
Provision for loan and lease losses | 1,738 | 4,385 | — | — | 6,123 | |||||||||||||||
Net interest income after provision for loan and lease losses | 78,256 | 57,395 | (1,583 | ) | — | 134,068 | ||||||||||||||
Noninterest income | 79,680 | 9,302 | 286 | — | 89,268 | |||||||||||||||
Noninterest expense | 115,100 | 27,619 | 24,601 | — | 167,320 | |||||||||||||||
Income (loss) before income tax | $ | 42,836 | $ | 39,078 | $ | (25,898 | ) | $ | — | $ | 56,016 | |||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | 2,087 | — | — | — | 2,087 | |||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount | — | 683 | — | — | 683 | |||||||||||||||
OTTI losses on investment securities (Volcker Rule) | 685 | — | — | — | 685 | |||||||||||||||
Adjusted income (loss) before income tax | $ | 45,608 | $ | 39,761 | $ | (25,898 | ) | $ | — | $ | 59,471 | |||||||||
Total assets as of June 30, 2014 | $ | 12,864,427 | $ | 6,973,288 | $ | 186,630 | $ | (270,525 | ) | $ | 19,753,820 | |||||||||
Total deposits as of June 30, 2014 | 12,050,198 | 1,824,477 | — | — | 13,874,675 | |||||||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||||||||||||||
Average Balances and Interest Rates(1) (2) (3) | Table 5 | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2015 | Three Months Ended March 31, 2015 | Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 249,732 | $ | 159 | 0.25 | % | $ | 255,816 | $ | 160 | 0.25 | % | $ | 171,693 | $ | 110 | 0.26 | % | |||||||||||||||
Investments | 1,031,225 | 7,447 | 2.89 | % | 1,067,104 | 8,022 | 3.02 | % | 1,371,621 | 9,818 | 2.86 | % | |||||||||||||||||||||
Loans held for sale | 1,971,798 | 16,378 | 3.32 | % | 1,523,484 | 12,516 | 3.29 | % | 1,159,638 | 11,293 | 3.90 | % | |||||||||||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||||||
Residential mortgages: | |||||||||||||||||||||||||||||||||
Residential | 6,208,965 | 53,034 | 3.42 | % | 6,219,788 | 52,187 | 3.36 | % | 5,585,545 | 48,582 | 3.48 | % | |||||||||||||||||||||
Government insured pool buyouts | 3,701,238 | 43,137 | 4.66 | % | 3,568,879 | 38,710 | 4.34 | % | 2,842,108 | 31,168 | 4.39 | % | |||||||||||||||||||||
Residential mortgages | 9,910,203 | 96,171 | 3.88 | % | 9,788,667 | 90,897 | 3.71 | % | 8,427,653 | 79,750 | 3.79 | % | |||||||||||||||||||||
Home equity lines | 185,839 | 2,168 | 4.68 | % | 154,267 | 1,801 | 4.73 | % | 143,169 | 1,444 | 4.05 | % | |||||||||||||||||||||
Other consumer and credit card | 4,695 | 92 | 7.86 | % | 4,629 | 132 | 11.54 | % | 5,470 | 184 | 13.49 | % | |||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate and other commercial | 3,626,989 | 49,890 | 5.48 | % | 3,547,906 | 49,079 | 5.53 | % | 3,234,109 | 45,196 | 5.57 | % | |||||||||||||||||||||
Mortgage warehouse finance | 1,875,134 | 12,758 | 2.69 | % | 1,233,928 | 8,604 | 2.79 | % | 1,022,151 | 7,329 | 2.84 | % | |||||||||||||||||||||
Lender finance | 896,994 | 8,116 | 3.58 | % | 774,608 | 6,970 | 3.60 | % | 587,673 | 5,824 | 3.92 | % | |||||||||||||||||||||
Commercial and commercial real estate | 6,399,117 | 70,764 | 4.40 | % | 5,556,442 | 64,653 | 4.65 | % | 4,843,933 | 58,349 | 4.79 | % | |||||||||||||||||||||
Equipment financing receivables | 2,079,283 | 24,774 | 4.77 | % | 2,031,071 | 24,850 | 4.89 | % | 1,363,727 | 19,305 | 5.66 | % | |||||||||||||||||||||
Total loans and leases held for investment | 18,579,137 | 193,969 | 4.17 | % | 17,535,076 | 182,333 | 4.16 | % | 14,783,952 | 159,032 | 4.29 | % | |||||||||||||||||||||
Total interest-earning assets | 21,831,892 | $ | 217,953 | 3.99 | % | 20,381,480 | $ | 203,031 | 3.99 | % | 17,486,904 | $ | 180,253 | 4.12 | % | ||||||||||||||||||
Noninterest-earning assets | 1,208,509 | 1,388,038 | 1,258,917 | ||||||||||||||||||||||||||||||
Total assets | $ | 23,040,401 | $ | 21,769,518 | $ | 18,745,821 | |||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 3,643,248 | $ | 6,111 | 0.67 | % | $ | 3,662,559 | $ | 6,096 | 0.68 | % | $ | 2,847,544 | $ | 4,212 | 0.59 | % | |||||||||||||||
Market-based money market accounts | 367,871 | 577 | 0.63 | % | 362,498 | 528 | 0.59 | % | 415,544 | 632 | 0.61 | % | |||||||||||||||||||||
Savings and money market accounts, excluding market-based | 5,098,205 | 8,240 | 0.65 | % | 5,133,320 | 8,190 | 0.65 | % | 4,904,879 | 7,449 | 0.61 | % | |||||||||||||||||||||
Market-based time | 423,006 | 736 | 0.70 | % | 443,962 | 760 | 0.69 | % | 576,828 | 1,125 | 0.78 | % | |||||||||||||||||||||
Time, excluding market-based | 5,318,760 | 14,555 | 1.10 | % | 4,936,035 | 14,190 | 1.16 | % | 3,507,409 | 10,024 | 1.15 | % | |||||||||||||||||||||
Total deposits | 14,851,090 | 30,219 | 0.82 | % | 14,538,374 | 29,764 | 0.83 | % | 12,252,204 | 23,442 | 0.77 | % | |||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||
Trust preferred securities and subordinated notes payable | 105,648 | 1,681 | 6.37 | % | 103,750 | 1,640 | 6.41 | % | 103,750 | 1,644 | 6.35 | % | |||||||||||||||||||||
FHLB advances | 4,826,396 | 17,028 | 1.40 | % | 4,050,089 | 16,189 | 1.60 | % | 3,362,011 | 14,976 | 1.76 | % | |||||||||||||||||||||
Other | — | — | 0.00 | % | — | — | 0.00 | % | 24,000 | — | 0.00 | % | |||||||||||||||||||||
Total borrowings | 4,932,044 | 18,709 | 1.50 | % | 4,153,839 | 17,829 | 1.72 | % | 3,489,761 | 16,620 | 1.89 | % | |||||||||||||||||||||
Total interest-bearing liabilities | 19,783,134 | 48,928 | 0.99 | % | 18,692,213 | 47,593 | 1.03 | % | 15,741,965 | 40,062 | 1.02 | % | |||||||||||||||||||||
Noninterest-bearing demand deposits | 1,278,044 | 1,104,966 | 1,149,025 | ||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 192,214 | 216,777 | 195,482 | ||||||||||||||||||||||||||||||
Total liabilities | 21,253,392 | 20,013,956 | 17,086,472 | ||||||||||||||||||||||||||||||
Total shareholders’ equity | 1,787,009 | 1,755,562 | 1,659,349 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 23,040,401 | $ | 21,769,518 | $ | 18,745,821 | |||||||||||||||||||||||||||
Net interest income/spread | $ | 169,025 | 3.00 | % | $ | 155,438 | 2.96 | % | $ | 140,191 | 3.10 | % | |||||||||||||||||||||
Net interest margin | 3.11 | % | 3.09 | % | 3.22 | % | |||||||||||||||||||||||||||
Memo: Total deposits including noninterest-bearing | $ | 16,129,134 | $ | 30,219 | 0.75 | % | $ | 15,643,340 | $ | 29,764 | 0.77 | % | $ | 13,401,229 | $ | 23,442 | 0.70 | % | |||||||||||||||
(1) | The average balances are principally daily averages, and, for loans, include both performing and non-performing balances. |
(2) | Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. |
(3) | All interest income was fully taxable for all periods presented. |
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||||||||||
Loans and Leases Held for Investment | Table 6a | |||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Residential mortgages: | ||||||||||||||||||||||||||||
Residential | $ | 6,899,235 | $ | 6,265,322 | $ | 6,324,965 | $ | 6,006,987 | $ | 5,205,043 | ||||||||||||||||||
Government insured pool buyouts | 3,824,378 | 3,513,916 | 3,595,105 | 3,395,095 | 3,197,348 | |||||||||||||||||||||||
Residential mortgages | 10,723,613 | 9,779,238 | 9,920,070 | 9,402,082 | 8,402,391 | |||||||||||||||||||||||
Home equity lines | 237,241 | 170,998 | 156,869 | 139,589 | 138,886 | |||||||||||||||||||||||
Other consumer and credit card | 4,870 | 4,472 | 5,054 | 5,894 | 5,473 | |||||||||||||||||||||||
Total Consumer Banking | 10,965,724 | 9,954,708 | 10,081,993 | 9,547,565 | 8,546,750 | |||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and commercial real estate: | ||||||||||||||||||||||||||||
Commercial real estate and other commercial | 3,731,671 | 3,550,489 | 3,527,586 | 3,328,979 | 3,234,423 | |||||||||||||||||||||||
Mortgage warehouse finance | 2,155,535 | 2,103,098 | 1,356,651 | 1,185,591 | 1,310,611 | |||||||||||||||||||||||
Lender finance | 914,422 | 851,759 | 762,453 | 678,400 | 625,335 | |||||||||||||||||||||||
Commercial and commercial real estate | 6,801,628 | 6,505,346 | 5,646,690 | 5,192,970 | 5,170,369 | |||||||||||||||||||||||
Equipment financing receivables | 2,146,543 | 2,073,583 | 2,031,570 | 1,839,416 | 1,577,525 | |||||||||||||||||||||||
Total Commercial Banking | 8,948,171 | 8,578,929 | 7,678,260 | 7,032,386 | 6,747,894 | |||||||||||||||||||||||
Loans and leases held for investment, net of unearned income | 19,913,895 | 18,533,637 | 17,760,253 | 16,579,951 | 15,294,644 | |||||||||||||||||||||||
Allowance for loan and lease losses | (66,091 | ) | (62,846 | ) | (60,846 | ) | (57,245 | ) | (56,728 | ) | ||||||||||||||||||
Total loans and leases held for investment, net | $ | 19,847,804 | $ | 18,470,791 | $ | 17,699,407 | $ | 16,522,706 | $ | 15,237,916 | ||||||||||||||||||
The balances presented above include: | ||||||||||||||||||||||||||||
Net purchased loan and lease discounts | $ | 43,215 | $ | 50,053 | $ | 47,108 | $ | 54,510 | $ | 53,134 | ||||||||||||||||||
Net deferred loan and lease origination costs | $ | 108,141 | $ | 98,757 | $ | 94,778 | $ | 84,832 | $ | 69,849 | ||||||||||||||||||
Deposits | Table 6b | |||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 1,152,917 | $ | 1,213,266 | $ | 984,703 | $ | 1,084,400 | $ | 1,055,556 | ||||||||||||||||||
Interest-bearing demand | 3,626,387 | 3,674,565 | 3,540,027 | 2,941,171 | 2,801,811 | |||||||||||||||||||||||
Market-based money market accounts | 372,282 | 352,865 | 374,856 | 397,617 | 411,633 | |||||||||||||||||||||||
Savings and money market accounts, excluding market-based | 5,211,101 | 5,137,429 | 5,136,031 | 5,159,642 | 4,864,459 | |||||||||||||||||||||||
Market-based time | 412,103 | 426,431 | 466,514 | 511,923 | 577,247 | |||||||||||||||||||||||
Time, excluding market-based | 5,708,737 | 5,272,131 | 5,006,566 | 4,378,752 | 4,163,969 | |||||||||||||||||||||||
Total deposits | $ | 16,483,527 | $ | 16,076,687 | $ | 15,508,697 | $ | 14,473,505 | $ | 13,874,675 | ||||||||||||||||||
General and Administrative Expense | Table 7 | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||||||||||
Legal and professional fees, excluding consent order expense | $ | 7,323 | $ | 5,928 | $ | 9,903 | $ | 7,061 | $ | 7,475 | $ | 13,251 | $ | 14,591 | ||||||||||||||
Credit-related expenses | 11,860 | 2,698 | 4,995 | 6,356 | 8,765 | 14,558 | 16,372 | |||||||||||||||||||||
FDIC premium assessment and other agency fees | 6,468 | 6,414 | 6,025 | 6,684 | 7,199 | 12,882 | 6,756 | |||||||||||||||||||||
Advertising and marketing expense | 6,262 | 6,664 | 5,899 | 6,175 | 4,932 | 12,926 | 9,363 | |||||||||||||||||||||
Subservicing expense | 1,345 | 3,791 | 3,716 | 3,673 | 2,482 | 5,136 | 2,482 | |||||||||||||||||||||
Consent order expense | 163 | 2,741 | 108 | 1,634 | 2,099 | 2,904 | 2,855 | |||||||||||||||||||||
Other | 26,364 | 13,919 | 11,078 | 11,557 | 13,879 | 40,283 | 31,210 | |||||||||||||||||||||
Total general and administrative expense | $ | 59,785 | $ | 42,155 | $ | 41,724 | $ | 43,140 | $ | 46,831 | $ | 101,940 | $ | 83,629 | ||||||||||||||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Non-Performing Assets(1) | Table 8 | |||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
Non-accrual loans and leases: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | $ | 26,500 | $ | 24,840 | $ | 24,576 | $ | 23,067 | $ | 22,212 | ||||||||||
Home equity lines | 2,169 | 2,191 | 2,363 | 2,152 | 1,903 | |||||||||||||||
Other consumer and credit card | — | 29 | 38 | 31 | 20 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 48,082 | 37,025 | 41,140 | 46,819 | 44,172 | |||||||||||||||
Equipment financing receivables | 12,417 | 10,775 | 8,866 | 6,803 | 6,475 | |||||||||||||||
Total non-accrual loans and leases | 89,168 | 74,860 | 76,983 | 78,872 | 74,782 | |||||||||||||||
Accruing loans 90 days or more past due | — | — | — | — | — | |||||||||||||||
Total non-performing loans (NPL) | 89,168 | 74,860 | 76,983 | 78,872 | 74,782 | |||||||||||||||
Other real estate owned (OREO) | 16,826 | 17,588 | 22,509 | 24,501 | 25,530 | |||||||||||||||
Total non-performing assets (NPA) | 105,994 | 92,448 | 99,492 | 103,373 | 100,312 | |||||||||||||||
Troubled debt restructurings (TDR) less than 90 days past due | 14,693 | 15,251 | 13,634 | 16,547 | 16,687 | |||||||||||||||
Total NPA and TDR(1) | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | $ | 116,999 | ||||||||||
Total NPA and TDR | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | $ | 116,999 | ||||||||||
Government insured 90 days or more past due still accruing | 2,901,184 | 2,662,619 | 2,646,415 | 2,632,744 | 2,424,166 | |||||||||||||||
Loans accounted for under ASC 310-30: | ||||||||||||||||||||
90 days or more past due | 4,571 | 5,165 | 8,448 | 10,519 | 23,159 | |||||||||||||||
Total regulatory NPA and TDR | $ | 3,026,442 | $ | 2,775,483 | $ | 2,767,989 | $ | 2,763,183 | $ | 2,564,324 | ||||||||||
Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30:(1) | ||||||||||||||||||||
NPL to total loans | 0.42 | % | 0.37 | % | 0.41 | % | 0.45 | % | 0.44 | % | ||||||||||
NPA to total assets | 0.44 | % | 0.40 | % | 0.46 | % | 0.50 | % | 0.51 | % | ||||||||||
NPA and TDR to total assets | 0.50 | % | 0.46 | % | 0.52 | % | 0.58 | % | 0.59 | % | ||||||||||
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30: | ||||||||||||||||||||
NPL to total loans | 14.14 | % | 13.49 | % | 14.63 | % | 15.65 | % | 14.89 | % | ||||||||||
NPA to total assets | 12.49 | % | 11.82 | % | 12.74 | % | 13.39 | % | 12.90 | % | ||||||||||
NPA and TDR to total assets | 12.55 | % | 11.89 | % | 12.80 | % | 13.47 | % | 12.98 | % | ||||||||||
(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 accounted for under ASC 310-30 because we expect to fully collect the carrying value of such loans and foreclosed property. |
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Allowance for Loan and Lease Losses Activity | Table 9a | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
ALLL, beginning of period | $ | 62,846 | $ | 60,846 | $ | 57,245 | $ | 56,728 | $ | 62,969 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | 2,447 | 2,539 | 1,368 | 2,023 | 1,810 | |||||||||||||||
Home equity lines | 276 | 288 | 383 | 171 | 163 | |||||||||||||||
Other consumer and credit card | 29 | 33 | 28 | 28 | 20 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | — | 2,018 | 1,626 | 568 | 4,714 | |||||||||||||||
Equipment financing receivables | 2,838 | 2,631 | 2,122 | 1,548 | 938 | |||||||||||||||
Total charge-offs | 5,590 | 7,509 | 5,527 | 4,338 | 7,645 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | 53 | 58 | 152 | 127 | 251 | |||||||||||||||
Home equity lines | 97 | 83 | 48 | 289 | 74 | |||||||||||||||
Other consumer and credit card | — | — | — | — | — | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 218 | 2 | 2 | 6 | — | |||||||||||||||
Equipment financing receivables | 535 | 366 | 322 | 180 | 196 | |||||||||||||||
Total recoveries | 903 | 509 | 524 | 602 | 521 | |||||||||||||||
Net charge-offs | 4,687 | 7,000 | 5,003 | 3,736 | 7,124 | |||||||||||||||
Provision for loan and lease losses | 7,932 | 9,000 | 8,604 | 6,735 | 6,123 | |||||||||||||||
Transfers to loans held for sale | — | — | — | (2,482 | ) | (5,240 | ) | |||||||||||||
ALLL, end of period | $ | 66,091 | $ | 62,846 | $ | 60,846 | $ | 57,245 | $ | 56,728 | ||||||||||
Net charge-offs to average loans and leases held for investment | 0.10 | % | 0.16 | % | 0.12 | % | 0.09 | % | 0.19 | % | ||||||||||
Allowance for Loan and Lease Losses Ratio | Table 9b | |||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
ALLL | $ | 66,091 | $ | 62,846 | $ | 60,846 | $ | 57,245 | $ | 56,728 | ||||||||||
Loans and leases held for investment, net of unearned income | 19,913,895 | 18,533,637 | 17,760,253 | 16,579,951 | 15,294,644 | |||||||||||||||
ALLL as a percentage of loans and leases held for investment | 0.33 | % | 0.34 | % | 0.34 | % | 0.35 | % | 0.37 | % | ||||||||||
Government insured pool buyouts as a percentage of loans and leases held for investment | 19 | % | 19 | % | 20 | % | 20 | % | 21 | % | ||||||||||
Reserves for Repurchase Obligations for Loans Sold or Securitized | Table 9c | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
Loan origination repurchase reserves, beginning of period | $ | 25,585 | $ | 25,940 | $ | 24,712 | $ | 26,373 | $ | 24,428 | ||||||||||
Provision for new sales/securitizations | 840 | 442 | 548 | 627 | 595 | |||||||||||||||
Provision (release of provision) for changes in estimate of existing reserves | (3,655 | ) | (531 | ) | 1,500 | — | 3,400 | |||||||||||||
Net realized losses on repurchases | (4,625 | ) | (266 | ) | (820 | ) | (2,288 | ) | (2,050 | ) | ||||||||||
Loan origination repurchase reserves, end of period | $ | 18,145 | $ | 25,585 | $ | 25,940 | $ | 24,712 | $ | 26,373 | ||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||
Adjusted Net Income | Table 10a | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
(dollars in thousands, except per share data) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Jun 30, 2015 | Jun 30, 2014 | ||||||||||||||||||||
Net income | $ | 41,567 | $ | 14,230 | $ | 38,021 | $ | 43,519 | $ | 34,782 | $ | 55,797 | $ | 66,542 | |||||||||||||
Transaction expense and non-recurring regulatory related expense, net of tax | 3,745 | 1,498 | 2,502 | 2,201 | 1,294 | 5,243 | 1,759 | ||||||||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount, net of tax | 159 | (967 | ) | (205 | ) | 198 | 423 | (808 | ) | 734 | |||||||||||||||||
MSR impairment (recovery), net of tax | (9,751 | ) | 26,879 | — | (1,904 | ) | — | 17,128 | (3,063 | ) | |||||||||||||||||
Restructuring cost, net of tax | 10,667 | — | (164 | ) | — | — | 10,667 | 630 | |||||||||||||||||||
OTTI losses on investment securities (Volcker Rule), net of tax | — | — | — | — | 425 | — | 425 | ||||||||||||||||||||
Adjusted net income | $ | 46,387 | $ | 41,640 | $ | 40,154 | $ | 44,014 | $ | 36,924 | $ | 88,027 | $ | 67,027 | |||||||||||||
Adjusted net income allocated to preferred stock | 2,531 | 2,531 | 2,531 | 2,532 | 2,531 | 5,062 | 5,062 | ||||||||||||||||||||
Adjusted net income allocated to common shareholders | $ | 43,856 | $ | 39,109 | $ | 37,623 | $ | 41,482 | $ | 34,393 | $ | 82,965 | $ | 61,965 | |||||||||||||
Adjusted net earnings per common share, basic | $ | 0.35 | $ | 0.32 | $ | 0.31 | $ | 0.34 | $ | 0.28 | $ | 0.67 | $ | 0.50 | |||||||||||||
Adjusted net earnings per common share, diluted | $ | 0.35 | $ | 0.31 | $ | 0.30 | $ | 0.33 | $ | 0.27 | $ | 0.66 | $ | 0.49 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||
(units in thousands) | |||||||||||||||||||||||||||
Basic | 124,348 | 123,939 | 123,278 | 122,950 | 122,840 | 124,144 | 122,763 | ||||||||||||||||||||
Diluted | 126,523 | 126,037 | 125,646 | 125,473 | 125,389 | 126,283 | 125,205 | ||||||||||||||||||||
Adjusted Efficiency Ratio | Table 10b | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Jun 30, 2015 | Jun 30, 2014 | ||||||||||||||||||||
Net interest income | $ | 169,025 | $ | 155,438 | $ | 147,436 | $ | 146,336 | $ | 140,191 | $ | 324,463 | $ | 271,035 | |||||||||||||
Noninterest income | 83,814 | 32,521 | 75,173 | 88,214 | 89,268 | 116,335 | 173,852 | ||||||||||||||||||||
Total revenue | 252,839 | 187,959 | 222,609 | 234,550 | 229,459 | 440,798 | 444,887 | ||||||||||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||||||||||
MSR impairment (recovery) | (15,727 | ) | 43,352 | — | (3,070 | ) | — | 27,625 | (4,941 | ) | |||||||||||||||||
Restructuring cost | 96 | — | (465 | ) | — | — | 96 | (1,964 | ) | ||||||||||||||||||
OTTI losses on securities (Volcker Rule) | — | — | — | — | 685 | — | 685 | ||||||||||||||||||||
Adjusted total revenue | $ | 237,208 | $ | 231,311 | $ | 222,144 | $ | 231,480 | $ | 230,144 | $ | 468,519 | $ | 438,667 | |||||||||||||
Noninterest expense | $ | 177,968 | $ | 156,042 | $ | 152,657 | $ | 157,753 | $ | 167,320 | $ | 334,010 | $ | 328,532 | |||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | (6,041 | ) | (2,417 | ) | (4,035 | ) | (3,550 | ) | (2,087 | ) | (8,458 | ) | (2,837 | ) | |||||||||||||
Restructuring cost | (17,108 | ) | — | (200 | ) | — | — | (17,108 | ) | (2,981 | ) | ||||||||||||||||
Adjusted noninterest expense | $ | 154,819 | $ | 153,625 | $ | 148,422 | $ | 154,203 | $ | 165,233 | $ | 308,444 | $ | 322,714 | |||||||||||||
GAAP efficiency ratio | 70 | % | 83 | % | 69 | % | 67 | % | 73 | % | 76 | % | 74 | % | |||||||||||||
Adjusted efficiency ratio | 65 | % | 66 | % | 67 | % | 67 | % | 72 | % | 66 | % | 74 | % | |||||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures (continued) | |||||||||||||||||||||
Regulatory Capital(1) (bank level) | Table 10c | ||||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 2,000,597 | $ | 1,793,270 | $ | 1,789,398 | $ | 1,769,205 | $ | 1,714,454 | |||||||||||
Less: | Goodwill and other intangibles | (47,253 | ) | (47,442 | ) | (49,589 | ) | (49,957 | ) | (50,328 | ) | ||||||||||
Disallowed servicing asset | (31,625 | ) | (46,302 | ) | (32,054 | ) | (23,524 | ) | (29,028 | ) | |||||||||||
Disallowed deferred tax asset | — | (659 | ) | — | — | (61,737 | ) | ||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 47,179 | 68,225 | 64,002 | 49,516 | 52,121 | |||||||||||||||
Tier 1 capital | (A) | 1,968,898 | 1,767,092 | 1,771,757 | 1,745,240 | 1,625,482 | |||||||||||||||
Add: | Allowance for loan and lease losses | 67,196 | 62,846 | 60,846 | 57,245 | 56,728 | |||||||||||||||
Total regulatory capital | (B) | $ | 2,036,094 | $ | 1,829,938 | $ | 1,832,603 | $ | 1,802,485 | $ | 1,682,210 | ||||||||||
Adjusted total assets | (C) | $ | 23,000,873 | $ | 21,732,119 | $ | 21,592,849 | $ | 20,480,723 | $ | 19,660,793 | ||||||||||
Risk-weighted assets | (D) | 15,464,920 | 14,822,821 | 13,658,685 | 12,869,352 | 12,579,476 | |||||||||||||||
Tier 1 leverage ratio | (A)/(C) | 8.6 | % | 8.1 | % | 8.2 | % | 8.5 | % | 8.3 | % | ||||||||||
Tier 1 risk-based capital ratio | (A)/(D) | 12.7 | % | 11.9 | % | 13.0 | % | 13.6 | % | 12.9 | % | ||||||||||
Total risk-based capital ratio | (B)/(D) | 13.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | 13.4 | % | ||||||||||
(1) Calculated under Basel III for periods beginning March 31, 2015. Calculated under Basel I for periods through December 31, 2014. | |||||||||||||||||||||
Regulatory Capital(1) (EFC consolidated) | Table 10d | ||||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | $ | 1,679,448 | |||||||||||
Less: | Preferred stock | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | ||||||||||
Goodwill and other intangibles | (47,253 | ) | (47,310 | ) | (49,589 | ) | (49,957 | ) | (50,328 | ) | |||||||||||
Disallowed servicing asset | (44,798 | ) | (53,648 | ) | (32,054 | ) | (23,524 | ) | (29,028 | ) | |||||||||||
Disallowed deferred tax asset | — | (634 | ) | — | — | (61,737 | ) | ||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 48,659 | 69,893 | 65,597 | 51,108 | 53,936 | |||||||||||||||
Common tier 1 capital | (E) | 1,626,429 | 1,576,113 | 1,581,548 | 1,548,650 | 1,442,291 | |||||||||||||||
Add: | Preferred stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Add: | Additional tier 1 capital (trust preferred securities) | 103,750 | 103,750 | 103,750 | 103,750 | 103,750 | |||||||||||||||
Tier 1 capital | (F) | 1,880,179 | 1,829,863 | 1,835,298 | 1,802,400 | 1,696,041 | |||||||||||||||
Add: | Subordinated notes payable | 172,702 | — | — | — | — | |||||||||||||||
Add: | Allowance for loan and lease losses | 67,196 | 62,846 | 60,846 | 57,245 | 56,728 | |||||||||||||||
Total regulatory capital | (G) | $ | 2,120,077 | $ | 1,892,709 | $ | 1,896,144 | $ | 1,859,645 | $ | 1,752,769 | ||||||||||
Adjusted total assets | (H) | $ | 22,997,941 | $ | 21,738,727 | $ | 21,601,742 | $ | 20,487,969 | $ | 19,666,663 | ||||||||||
Risk-weighted assets | (I) | 15,454,736 | 14,819,123 | 13,665,981 | 12,875,007 | 12,583,537 | |||||||||||||||
Common equity tier 1 ratio | (E)/(I) | 10.5 | % | 10.6 | % | 11.6 | % | 12.0 | % | 11.5 | % | ||||||||||
Tier 1 leverage ratio | (F)/(H) | 8.2 | % | 8.4 | % | 8.5 | % | 8.8 | % | 8.6 | % | ||||||||||
Tier 1 risk-based capital ratio | (F)/(I) | 12.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | 13.5 | % | ||||||||||
Total risk-based capital ratio | (G)/(I) | 13.7 | % | 12.8 | % | 13.9 | % | 14.4 | % | 13.9 | % | ||||||||||
(1) Calculated under Basel III for periods beginning March 31, 2015. Calculated under Basel I for periods through December 31, 2014. | |||||||||||||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||
Reconciliation of Non-GAAP Measures (continued) | |||||||||||||||||||
Tangible Equity, Tangible Common Equity and Tangible Assets | Table 10e | ||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||
Shareholders’ equity | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | $ | 1,679,448 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | ||||||||||||||
Intangible assets | 2,651 | 3,178 | 3,705 | 4,232 | 4,759 | ||||||||||||||
Tangible equity | 1,770,311 | 1,707,775 | 1,697,030 | 1,669,932 | 1,627,830 | ||||||||||||||
Less: | |||||||||||||||||||
Perpetual preferred stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | ||||||||||||||
Tangible common equity | $ | 1,620,311 | $ | 1,557,775 | $ | 1,547,030 | $ | 1,519,932 | $ | 1,477,830 | |||||||||
Total assets | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | $ | 19,753,820 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | ||||||||||||||
Intangible assets | 2,651 | 3,178 | 3,705 | 4,232 | 4,759 | ||||||||||||||
Tangible assets | $ | 24,070,981 | $ | 23,297,182 | $ | 21,567,224 | $ | 20,459,251 | $ | 19,702,202 | |||||||||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Residential Mortgage Lending and Servicing | Table 11 | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | |||||||||||||||
Key Metrics: | ||||||||||||||||||||
Mortgage lending volume: | ||||||||||||||||||||
Agency | $ | 1,177,725 | $ | 1,043,500 | $ | 971,774 | $ | 1,108,917 | $ | 1,124,684 | ||||||||||
Jumbo | 1,458,297 | 1,300,746 | 1,183,702 | 1,187,161 | 1,108,188 | |||||||||||||||
Other | 81,566 | 21,716 | 22,160 | 6,004 | — | |||||||||||||||
Mortgage lending volume | $ | 2,717,588 | $ | 2,365,962 | $ | 2,177,636 | $ | 2,302,082 | $ | 2,232,872 | ||||||||||
Mortgage loans sold: | ||||||||||||||||||||
Agency | $ | 895,799 | $ | 802,329 | $ | 878,209 | $ | 1,111,504 | $ | 804,015 | ||||||||||
Jumbo | 1,057,431 | 189,965 | 385,564 | 691,431 | 447,408 | |||||||||||||||
GNMA | 376,265 | 373,761 | 379,223 | 365,547 | 176,734 | |||||||||||||||
Other | 4,252 | 3,448 | 4,403 | 4,163 | 103,556 | |||||||||||||||
Mortgage loans sold | $ | 2,333,747 | $ | 1,369,503 | $ | 1,647,399 | $ | 2,172,645 | $ | 1,531,713 | ||||||||||
Unpaid principal balance of loans serviced for the Company and others | $ | 44,835,934 | $ | 50,481,475 | $ | 50,746,457 | $ | 50,830,585 | $ | 50,790,378 | ||||||||||
Average contractual servicing fee | 0.27 | % | 0.29 | % | 0.29 | % | 0.29 | % | 0.29 | % | ||||||||||
Applications | $ | 1,770,099 | $ | 1,658,070 | $ | 1,335,506 | $ | 1,279,945 | $ | 1,656,807 | ||||||||||
Rate locks | 1,571,512 | 1,564,567 | 1,251,366 | 1,236,764 | 1,664,388 | |||||||||||||||
Mortgage Lending Volume by Channel: | ||||||||||||||||||||
Retail | $ | 1,728,598 | $ | 1,301,488 | $ | 1,218,614 | $ | 1,259,019 | $ | 1,225,568 | ||||||||||
Consumer Direct | 411,407 | 441,155 | 385,588 | 454,449 | 461,115 | |||||||||||||||
Correspondent | 577,584 | 623,319 | 573,433 | 588,614 | 546,189 | |||||||||||||||
Purchase Activity (%): | ||||||||||||||||||||
Retail | 67 | % | 51 | % | 62 | % | 72 | % | 80 | % | ||||||||||
Consumer Direct | 12 | % | 6 | % | 4 | % | 12 | % | 13 | % | ||||||||||
Correspondent | 62 | % | 43 | % | 51 | % | 66 | % | 60 | % | ||||||||||
Total | 58 | % | 41 | % | 49 | % | 59 | % | 61 | % | ||||||||||