Form 8-K EverBank Financial Corp For: Oct 28
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): | October 28, 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 October 28, 2015, EverBank Financial Corp (the “Company”) issued a press release announcing its financial results for the quarter ended September 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 October 28, 2015, the Company distributed and made available to investors, and posted on its website, the financial tables reflecting its performance for the quarter ended September 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 October 28, 2015, by the Company announcing its financial results for the quarter ended September 30, 2015. |
99.2 | Financial tables distributed and made available to investors, and posted on the Company’s website, on October 28, 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: October 28, 2015
EXHIBIT LIST
Exhibit No. | Description |
99.1 | Press release, dated October 28, 2015, by the Company announcing its financial results for the quarter ended September 30, 2015. |
99.2 | Financial tables distributed and made available to investors, and posted on the Company’s website, on October 28, 2015. |
EverBank Financial Corp Announces Third Quarter 2015 Financial Results
JACKSONVILLE, FL, October 28, 2015 - EverBank Financial Corp (NYSE: EVER) announced today its financial results for the third quarter ended September 30, 2015.
"We executed on our core strategies in the quarter which resulted in strong loan and deposit growth of $1.1 billion, respectively, in addition to a reduction in our overall expense base," said Robert M. Clements, chairman and chief executive officer. "However, our third quarter financial results were influenced by a difficult market environment and some unusual items. Despite these headwinds, we expect a rebound in our earnings in the fourth quarter."
GAAP net income available to common shareholders was $27.1 million for the third quarter 2015, compared to $39.0 million for the second quarter 2015 and $41.0 million for the third quarter 2014. GAAP diluted earnings per share in the third quarter 2015 were $0.21 compared to $0.31 in the second quarter 2015 and $0.33 in the third quarter 2014. Adjusted net income available to common shareholders was $28.8 million for the third quarter 2015, compared to $43.9 million for the second quarter 2015 and $41.5 million for the third quarter 2014.1 Adjusted diluted earnings per common share in the third quarter 2015 were $0.23 compared to $0.35 in the second quarter 2015 and $0.33 in the third quarter 2014.1
"Retained originations grew 5% compared to the prior quarter to $1.9 billion, which highlights the continued success we're experiencing in our lending businesses", said W. Blake Wilson, president and chief operating officer. "We continue to focus on strategies and initiatives designed to scale the investments we've made and optimize our organization in order to continue to improve our efficiency."
Third Quarter 2015 Key Highlights
• | Total assets of $25.2 billion, an increase of 23% year over year. |
• | Portfolio loans held for investment (HFI) of $20.9 billion, an increase of 26% year over year. |
• | Total originations of $3.3 billion, an increase of 8% year over year. Commercial originations increased 32% year over year to $1.0 billion. |
• | Total deposits of $17.6 billion, an increase of 21% year over year. Commercial deposits increased 70% year over year to $4.0 billion. |
• | Net interest margin (NIM) of 2.90%. |
• | Adjusted return on average equity (ROE)1 was 6.9% for the quarter and 9.1% year to date. GAAP ROE was 6.5% and 6.3% year to date. |
• | Tangible common equity per common share was $13.00 at September 30, 2015, an increase of 5% year over year.1 |
• | Adjusted non-performing assets to total assets1 were 0.55% at September 30, 2015. Annualized net charge-offs to average total loans and leases held for investment were 0.11% for the quarter. |
• | Consolidated common equity Tier 1 capital ratio of 10.2% and bank Tier 1 leverage ratio of 8.2% as of September 30, 2015. |
• | Received approvals for the sale of $3.4 billion of unpaid principal balance of servicing to Nationstar Mortgage, LLC with an expected transfer date of November 1, 2015. |
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 $25.2 billion at September 30, 2015, an increase of $1.1 billion, or 5%, compared to the prior quarter and an increase of $4.7 billion, or 23%, year over year. The sequential increase was driven by a $963 million, or 5%, increase in portfolio loans HFI to $20.9 billion and a $153 million, or 11%, increase in portfolio loans HFS to $1.5 billion.
Loans HFI for the third quarter of 2015, as compared to the second quarter of 2015 and third quarter of 2014, were comprised of:
($ in millions) | Sep 30, 2015 | Jun 30, 2015 | Sep 30, 2014 | % Change (Q/Q) | % Change (Y/Y) | ||||||||||||
Consumer Banking: | |||||||||||||||||
Residential loans | $ | 7,365 | $ | 6,899 | $ | 6,007 | 7 | % | 23 | % | |||||||
Government insured pool buyouts | 3,947 | 3,824 | 3,395 | 3 | % | 16 | % | ||||||||||
Total residential mortgages | 11,312 | 10,724 | 9,402 | 5 | % | 20 | % | ||||||||||
Home equity & other | 337 | 242 | 145 | 39 | % | 132 | % | ||||||||||
Total Consumer Banking | 11,649 | 10,966 | 9,548 | 6 | % | 22 | % | ||||||||||
Commercial Banking: | |||||||||||||||||
Commercial real estate & other commercial | 3,660 | 3,732 | 3,329 | (2 | )% | 10 | % | ||||||||||
Mortgage warehouse finance | 2,163 | 2,156 | 1,186 | — | % | 82 | % | ||||||||||
Lender finance | 1,118 | 914 | 678 | 22 | % | 65 | % | ||||||||||
Commercial and commercial real estate | 6,941 | 6,802 | 5,193 | 2 | % | 34 | % | ||||||||||
Equipment financing receivables | 2,288 | 2,147 | 1,839 | 7 | % | 24 | % | ||||||||||
Total Commercial Banking | 9,228 | 8,948 | 7,032 | 3 | % | 31 | % | ||||||||||
Total Loans HFI | $ | 20,877 | $ | 19,914 | $ | 16,580 | 5 | % | 26 | % | |||||||
Total consumer banking loans HFI increased $683 million, or 6%, compared to the prior quarter and increased $2.1 billion, or 22%, year over year, to $11.6 billion. Total residential mortgages increased $588 million, or 5%, compared to the prior quarter to $11.3 billion driven by strong retained jumbo loan originations and continued growth in government insured pool buyout loans.
Total commercial banking loans and leases HFI increased $280 million, or 3%, compared to the prior quarter and $2.2 billion, or 31%, year over year to $9.2 billion. Lender finance increased $203 million, or 22% compared to the prior quarter, to $1.1 billion, equipment financing receivables increased $141 million, or 7%, to $2.3 billion, mortgage warehouse finance outstanding balances remained flat at $2.2 billion and commercial real estate and other commercial loans decreased $71 million, or 2%, to $3.7 billion.
Loan Origination Activities
The following table presents total organic loan and lease origination information by product type:
($ in millions) | Sep 30, 2015 | Jun 30, 2015 | Sep 30, 2014 | % Change (Q/Q) | % Change (Y/Y) | ||||||||||||
Consumer originations | |||||||||||||||||
Conventional loans | $ | 1,073 | $ | 1,259 | $ | 1,115 | (15 | )% | (4 | )% | |||||||
Prime jumbo loans | 1,219 | 1,458 | 1,187 | (16 | )% | 3 | % | ||||||||||
2,292 | 2,718 | 2,302 | (16 | )% | — | % | |||||||||||
Commercial originations | |||||||||||||||||
Commercial & commercial real estate | 649 | 466 | 361 | 39 | % | 80 | % | ||||||||||
Equipment financing receivables | 345 | 293 | 393 | 18 | % | (12 | )% | ||||||||||
994 | 759 | 754 | 31 | % | 32 | % | |||||||||||
Total originations | $ | 3,287 | $ | 3,477 | $ | 3,056 | (5 | )% | 8 | % | |||||||
Total originations were $3.3 billion for the third quarter of 2015, a decrease of 5% compared to the prior quarter and an increase of 8% year over year. Retained originations were $1.9 billion for the third quarter 2015, an increase of 5% compared to the prior quarter and 14% year over year. Year to date, retained originations were $5.4 billion, an increase of 25% year over year.
Commercial originations were $994 million for the third quarter of 2015, an increase of 31% compared to the prior quarter and 32% year over year. Consumer originations were $2.3 billion for the third quarter of 2015, a decrease of 16% compared to the prior quarter and flat year over year. Prime jumbo origination volume was $1.2 billion in the third quarter, a decrease of 16% compared to the prior quarter and an increase of 3% year over year. Residential loans sold during the quarter totaled $1.8 billion, a decrease of 23% compared to the prior quarter and 17% year over year. The mix of purchase transactions for the third quarter was 65% of total originations compared to 58% in the prior quarter.
Deposits and Other Funding
Total deposits for the third quarter ending September 30, 2015, as compared to the second quarter of 2015 and third quarter of 2014, were comprised of the following:
($ in millions) | Sep 30, 2015 | Jun 30, 2015 | Sep 30, 2014 | % Change (Q/Q) | % Change (Y/Y) | ||||||||||||
Noninterest-bearing demand | $ | 1,390 | $ | 1,153 | $ | 1,084 | 21 | % | 28 | % | |||||||
Interest-bearing demand | 3,631 | 3,626 | 2,941 | — | % | 23 | % | ||||||||||
Savings and money market accounts, excluding market-based | 5,734 | 5,211 | 5,160 | 10 | % | 11 | % | ||||||||||
Global market-based accounts | 732 | 784 | 910 | (7 | )% | (20 | )% | ||||||||||
Time, excluding market-based | 6,079 | 5,709 | 4,379 | 6 | % | 39 | % | ||||||||||
Total deposits | $ | 17,566 | $ | 16,484 | $ | 14,474 | 7 | % | 21 | % | |||||||
Consumer deposits | $ | 13,519 | $ | 13,084 | $ | 12,088 | 3 | % | 12 | % | |||||||
Commercial deposits | 4,047 | 3,400 | 2,386 | 19 | % | 70 | % | ||||||||||
Total deposits | $ | 17,566 | $ | 16,484 | $ | 14,474 | 7 | % | 21 | % | |||||||
Total deposits were $17.6 billion at September 30, 2015, an increase of $1.1 billion, or 7% compared to the prior quarter and an increase of $3.1 billion, or 21%, year over year. Commercial deposits were $4.0 billion, an increase of $648 million, or 19%, compared to the prior quarter and $1.7 billion, or 70%, year over year. Commercial
deposits represented 23% of total deposits at quarter end, compared to 21% in the prior quarter and 16% a year ago.
Total other borrowings were $5.3 billion at September 30, 2015, compared to $5.2 billion in the prior quarter and $4.0 billion at September 30, 2014.
Capital Strength
Total shareholders' equity was $1.8 billion at September 30, 2015, flat quarter over quarter and an increase of 6% year over year. As of September 30, 2015, our consolidated common equity Tier 1 capital ratio was 10.2% and the bank’s Tier 1 leverage and total risk-based capital ratios were 8.2% and 12.7%, 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 9.50% and 9.75%.
Credit Quality
Adjusted non-performing assets were 0.55% of total assets at September 30, 2015, compared to 0.44% for the prior quarter and 0.50% at September 30, 2014. Net charge-offs during the third quarter of 2015 were $5 million, an increase of $1 million compared to the prior quarter and $2 million year over year. On an annualized basis, net charge-offs were 0.11% of total average loans and leases held for investment for the quarter, compared to 0.10% for the prior quarter and 0.09% for the third quarter of 2014.
Income Statement Highlights
Revenue
Revenue for the third quarter of 2015 was $210 million, a decrease of $43 million, or 17%, from $253 million in the second quarter of 2015. Excluding the change in valuation allowance on our mortgage servicing rights (MSR) in the second and third quarters of 2015, revenue would have been $214 million in the third quarter, a decrease of 10% compared to the prior quarter.
Net Interest Income
Net interest income was $169 million for the third quarter of 2015, flat compared to the prior quarter. Average interest-earning assets increased $1.3 billion, or 6%, compared to the prior quarter driven by a $1.5 billion, or 8%, increase in average loans and leases HFI, partially offset by a $231 million, or 12%, decrease in average loans HFS. Total average interest-bearing liabilities increased $1.3 billion, or 6%, compared to the prior quarter.
Net interest margin decreased to 2.90% for the third quarter of 2015 from 3.11% in the second quarter of 2015, driven by a 0.14% decline in the interest-earning asset yield to 3.85% and a 0.04% increase in the average cost of total interest-bearing liabilities to 1.03%.
Noninterest Income
Noninterest income for the third quarter of 2015 was $41 million, a decrease of $43 million, or 51%, compared to the prior quarter driven by lower levels of net loan servicing income and gain on sale of loans. Net loan servicing income decreased $20 million compared to the prior quarter to $6 million driven by the change in valuation allowance on our MSR, which included a $4 million impairment in the third quarter compared to a $16 million recovery in the prior quarter. Excluding the impact of the valuation allowance, net loan servicing income for the third quarter would have been $10 million, flat compared to the prior quarter.
Gain on sale of loans was $18 million, a decrease of $23 million, or 56%, compared to the prior quarter, driven by lower agency funding activity, interest rate lock commitments and margins, in addition to lower levels of loans sold.
Noninterest Expense
Noninterest expense for the third quarter of 2015 was $152 million, a decrease of $26 million, or 15%, compared to the prior quarter. Salaries, commissions and employee benefits were $89 million, a decrease of $6 million, or 7%, compared to the prior quarter driven by lower commissions in the quarter and severance expense incurred in the prior quarter. General and administrative expense was $40 million, a decrease of $20 million, or 33%, compared to the prior quarter driven by lower credit-related and other expenses.
EverBank's efficiency ratio in the third quarter of 2015 was 72%, compared to 70% in the prior quarter. Excluding the impact of MSR valuation allowance recovery or impairment, transaction and other non-recurring expenses, EverBank's adjusted efficiency ratio was 71% for the third quarter compared to 65% in prior quarter.
Based on its current outlook for the full year 2016, EverBank expects total noninterest expense of $600 million.
Dividends
On October 22, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.06 per common share, payable on November 23, 2015, to stockholders of record as of November 10, 2015. Also on October 22, 2015, the Company's Board of Directors declared a quarterly cash dividend of $421.875, payable on January 5, 2016, for each share of 6.75% Series A Non-Cumulative Perpetual Preferred Stock held as of December 21, 2015.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. Eastern Time on Wednesday, October 28, 2015 to discuss its third 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 10073053. The replay will be available through November 5, 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 $25.2 billion in assets and $17.6 billion in deposits as of September 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)
September 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 64,822 | $ | 49,436 | ||||
Interest-bearing deposits in banks | 534,354 | 317,228 | ||||||
Total cash and cash equivalents | 599,176 | 366,664 | ||||||
Investment securities: | ||||||||
Available for sale, at fair value | 574,104 | 776,311 | ||||||
Held to maturity (fair value of $115,885 and $118,230 as of September 30, 2015 and December 31, 2014, respectively) | 112,219 | 115,084 | ||||||
Other investments | 240,832 | 196,609 | ||||||
Total investment securities | 927,155 | 1,088,004 | ||||||
Loans held for sale (includes $1,101,341 and $728,378 carried at fair value as of September 30, 2015 and December 31, 2014, respectively) | 1,483,754 | 973,507 | ||||||
Loans and leases held for investment: | ||||||||
Loans and leases held for investment, net of unearned income | 20,877,381 | 17,760,253 | ||||||
Allowance for loan and lease losses | (71,897 | ) | (60,846 | ) | ||||
Total loans and leases held for investment, net | 20,805,484 | 17,699,407 | ||||||
Mortgage servicing rights (MSR), net | 357,550 | 435,619 | ||||||
Premises and equipment, net | 52,425 | 56,457 | ||||||
Other assets | 989,199 | 998,130 | ||||||
Total Assets | $ | 25,214,743 | $ | 21,617,788 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,389,644 | $ | 984,703 | ||||
Interest-bearing | 16,176,445 | 14,523,994 | ||||||
Total deposits | 17,566,089 | 15,508,697 | ||||||
Other borrowings | 5,297,000 | 4,004,000 | ||||||
Trust preferred securities and subordinated notes payable | 276,103 | 103,750 | ||||||
Accounts payable and accrued liabilities | 252,682 | 253,747 | ||||||
Total Liabilities | 23,391,874 | 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 September 30, 2015 and December 31, 2014) | 150,000 | 150,000 | ||||||
Common Stock, $0.01 par value (500,000,000 shares authorized; 124,954,523 and 123,679,049 issued and outstanding at September 30, 2015 and December 31, 2014, respectively) | 1,250 | 1,237 | ||||||
Additional paid-in capital | 873,175 | 851,158 | ||||||
Retained earnings | 871,160 | 810,796 | ||||||
Accumulated other comprehensive income (loss) (AOCI) | (72,716 | ) | (65,597 | ) | ||||
Total Shareholders’ Equity | 1,822,869 | 1,747,594 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 25,214,743 | $ | 21,617,788 | ||||
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans and leases | $ | 215,881 | $ | 180,913 | $ | 621,077 | $ | 509,708 | ||||||||
Interest and dividends on investment securities | 7,520 | 9,627 | 22,989 | 29,276 | ||||||||||||
Other interest income | 226 | 116 | 545 | 388 | ||||||||||||
Total Interest Income | 223,627 | 190,656 | 644,611 | 539,372 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 31,921 | 26,755 | 91,904 | 72,804 | ||||||||||||
Other borrowings | 22,866 | 17,565 | 59,404 | 49,197 | ||||||||||||
Total Interest Expense | 54,787 | 44,320 | 151,308 | 122,001 | ||||||||||||
Net Interest Income | 168,840 | 146,336 | 493,303 | 417,371 | ||||||||||||
Provision for Loan and Lease Losses | 11,131 | 6,735 | 28,063 | 15,929 | ||||||||||||
Net Interest Income after Provision for Loan and Lease Losses | 157,709 | 139,601 | 465,240 | 401,442 | ||||||||||||
Noninterest Income | ||||||||||||||||
Loan servicing fee income | 27,157 | 35,900 | 90,858 | 122,934 | ||||||||||||
Amortization of mortgage servicing rights | (16,760 | ) | (19,572 | ) | (56,065 | ) | (59,170 | ) | ||||||||
Recovery (impairment) of mortgage servicing rights | (4,450 | ) | 3,071 | (32,075 | ) | 8,012 | ||||||||||
Net loan servicing income (loss) | 5,947 | 19,399 | 2,718 | 71,776 | ||||||||||||
Gain on sale of loans | 18,037 | 47,920 | 101,248 | 129,474 | ||||||||||||
Loan production revenue | 5,861 | 5,783 | 17,443 | 15,709 | ||||||||||||
Deposit fee income | 3,844 | 3,828 | 10,946 | 11,696 | ||||||||||||
Other lease income | 3,714 | 3,910 | 9,876 | 12,621 | ||||||||||||
Other | 3,792 | 7,374 | 15,299 | 20,790 | ||||||||||||
Total Noninterest Income | 41,195 | 88,214 | 157,530 | 262,066 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries, commissions and other employee benefits expense | 89,369 | 90,781 | 277,124 | 283,734 | ||||||||||||
Equipment expense | 15,576 | 16,623 | 46,879 | 52,616 | ||||||||||||
Occupancy expense | 6,679 | 7,209 | 19,691 | 23,166 | ||||||||||||
General and administrative expense | 39,882 | 43,140 | 141,822 | 126,769 | ||||||||||||
Total Noninterest Expense | 151,506 | 157,753 | 485,516 | 486,285 | ||||||||||||
Income before Provision for Income Taxes | 47,398 | 70,062 | 137,254 | 177,223 | ||||||||||||
Provision for Income Taxes | 17,815 | 26,543 | 51,874 | 67,162 | ||||||||||||
Net Income | $ | 29,583 | $ | 43,519 | $ | 85,380 | $ | 110,061 | ||||||||
Less: Net Income Allocated to Preferred Stock | (2,532 | ) | (2,532 | ) | (7,594 | ) | (7,594 | ) | ||||||||
Net Income Allocated to Common Shareholders | $ | 27,051 | $ | 40,987 | $ | 77,786 | $ | 102,467 | ||||||||
Basic Earnings Per Common Share | $ | 0.22 | $ | 0.33 | $ | 0.63 | $ | 0.83 | ||||||||
Diluted Earnings Per Common Share | $ | 0.21 | $ | 0.33 | $ | 0.61 | $ | 0.82 | ||||||||
Dividends Declared Per Common Share | $ | 0.06 | $ | 0.04 | $ | 0.14 | $ | 0.10 | ||||||||
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 Common Equity Per Common Share, 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) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Net income | $ | 29,583 | $ | 41,567 | $ | 14,230 | $ | 38,021 | $ | 43,519 | ||||||||||
Transaction expense and non-recurring regulatory related expense, net of tax | (784 | ) | 3,745 | 1,498 | 2,502 | 2,201 | ||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount, net of tax | (51 | ) | 159 | (967 | ) | (205 | ) | 198 | ||||||||||||
MSR impairment (recovery), net of tax | 2,758 | (9,751 | ) | 26,879 | — | (1,904 | ) | |||||||||||||
Restructuring cost, net of tax | (222 | ) | 10,667 | — | (164 | ) | — | |||||||||||||
Adjusted net income | $ | 31,284 | $ | 46,387 | $ | 41,640 | $ | 40,154 | $ | 44,014 | ||||||||||
Adjusted net income allocated to preferred stock | 2,532 | 2,531 | 2,531 | 2,531 | 2,532 | |||||||||||||||
Adjusted net income allocated to common shareholders | $ | 28,752 | $ | 43,856 | $ | 39,109 | $ | 37,623 | $ | 41,482 | ||||||||||
Adjusted net earnings per common share, basic | $ | 0.23 | $ | 0.35 | $ | 0.32 | $ | 0.31 | $ | 0.34 | ||||||||||
Adjusted net earnings per common share, diluted | $ | 0.23 | $ | 0.35 | $ | 0.31 | $ | 0.30 | $ | 0.33 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
(units in thousands) | ||||||||||||||||||||
Basic | 124,823 | 124,348 | 123,939 | 123,278 | 122,950 | |||||||||||||||
Diluted | 127,099 | 126,523 | 126,037 | 125,646 | 125,473 | |||||||||||||||
Adjusted Efficiency Ratio | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||
Net interest income | $ | 168,840 | $ | 169,025 | $ | 155,438 | $ | 147,436 | $ | 146,336 | ||||||||||
Noninterest income | 41,195 | 83,814 | 32,521 | 75,173 | 88,214 | |||||||||||||||
Total revenue | 210,035 | 252,839 | 187,959 | 222,609 | 234,550 | |||||||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
MSR impairment (recovery) | 4,450 | (15,727 | ) | 43,352 | — | (3,070 | ) | |||||||||||||
Restructuring cost | — | 96 | — | (465 | ) | — | ||||||||||||||
Adjusted total revenue | $ | 214,485 | $ | 237,208 | $ | 231,311 | $ | 222,144 | $ | 231,480 | ||||||||||
Noninterest expense | $ | 151,506 | $ | 177,968 | $ | 156,042 | $ | 152,657 | $ | 157,753 | ||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | 1,264 | (6,041 | ) | (2,417 | ) | (4,035 | ) | (3,550 | ) | |||||||||||
Restructuring cost | 360 | (17,108 | ) | — | (200 | ) | — | |||||||||||||
Adjusted noninterest expense | $ | 153,130 | $ | 154,819 | $ | 153,625 | $ | 148,422 | $ | 154,203 | ||||||||||
GAAP efficiency ratio | 72 | % | 70 | % | 83 | % | 69 | % | 67 | % | ||||||||||
Adjusted efficiency ratio | 71 | % | 65 | % | 66 | % | 67 | % | 67 | % | ||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||
Regulatory Capital(1) (bank level) | |||||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 2,002,848 | $ | 2,000,597 | $ | 1,793,270 | $ | 1,789,398 | $ | 1,769,205 | |||||||||||
Less: | Goodwill and other intangibles | (47,198 | ) | (47,253 | ) | (47,442 | ) | (49,589 | ) | (49,957 | ) | ||||||||||
Disallowed servicing asset | (26,699 | ) | (31,625 | ) | (46,302 | ) | (32,054 | ) | (23,524 | ) | |||||||||||
Disallowed deferred tax asset | — | — | (659 | ) | — | — | |||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 71,202 | 47,179 | 68,225 | 64,002 | 49,516 | |||||||||||||||
Tier 1 capital | (A) | 2,000,153 | 1,968,898 | 1,767,092 | 1,771,757 | 1,745,240 | |||||||||||||||
Add: | Allowance for loan and lease losses | 72,653 | 67,196 | 62,846 | 60,846 | 57,245 | |||||||||||||||
Total regulatory capital | (B) | $ | 2,072,806 | $ | 2,036,094 | $ | 1,829,938 | $ | 1,832,603 | $ | 1,802,485 | ||||||||||
Adjusted total assets | (C) | $ | 24,428,171 | $ | 23,000,873 | $ | 21,732,119 | $ | 21,592,849 | $ | 20,480,723 | ||||||||||
Risk-weighted assets | (D) | 16,336,138 | 15,464,920 | 14,822,821 | 13,658,685 | 12,869,352 | |||||||||||||||
Tier 1 leverage ratio | (A)/(C) | 8.2 | % | 8.6 | % | 8.1 | % | 8.2 | % | 8.5 | % | ||||||||||
Tier 1 risk-based capital ratio | (A)/(D) | 12.2 | % | 12.7 | % | 11.9 | % | 13.0 | % | 13.6 | % | ||||||||||
Total risk-based capital ratio | (B)/(D) | 12.7 | % | 13.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | ||||||||||
(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) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 1,822,869 | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | |||||||||||
Less: | Preferred stock | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | ||||||||||
Goodwill and other intangibles | (47,198 | ) | (47,253 | ) | (47,310 | ) | (49,589 | ) | (49,957 | ) | |||||||||||
Disallowed servicing asset | (39,838 | ) | (44,798 | ) | (53,648 | ) | (32,054 | ) | (23,524 | ) | |||||||||||
Disallowed deferred tax asset | — | — | (634 | ) | — | — | |||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 72,716 | 48,659 | 69,893 | 65,597 | 51,108 | |||||||||||||||
Common tier 1 capital | (E) | 1,658,549 | 1,626,429 | 1,576,113 | 1,581,548 | 1,548,650 | |||||||||||||||
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) | 1,912,299 | 1,880,179 | 1,829,863 | 1,835,298 | 1,802,400 | |||||||||||||||
Add: | Subordinated notes payable | 172,353 | 172,702 | — | — | — | |||||||||||||||
Add: | Allowance for loan and lease losses | 72,653 | 67,196 | 62,846 | 60,846 | 57,245 | |||||||||||||||
Total regulatory capital | (G) | $ | 2,157,305 | $ | 2,120,077 | $ | 1,892,709 | $ | 1,896,144 | $ | 1,859,645 | ||||||||||
Adjusted total assets | (H) | $ | 24,429,012 | $ | 22,997,941 | $ | 21,738,727 | $ | 21,601,742 | $ | 20,487,969 | ||||||||||
Risk-weighted assets | (I) | 16,327,166 | 15,454,736 | 14,819,123 | 13,665,981 | 12,875,007 | |||||||||||||||
Common equity tier 1 ratio | (E)/(I) | 10.2 | % | 10.5 | % | 10.6 | % | 11.6 | % | 12.0 | % | ||||||||||
Tier 1 leverage ratio | (F)/(H) | 7.8 | % | 8.2 | % | 8.4 | % | 8.5 | % | 8.8 | % | ||||||||||
Tier 1 risk-based capital ratio | (F)/(I) | 11.7 | % | 12.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | ||||||||||
Total risk-based capital ratio | (G)/(I) | 13.2 | % | 13.7 | % | 12.8 | % | 13.9 | % | 14.4 | % | ||||||||||
(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, Tangible Common Equity Per Common Share and Tangible Assets | ||||||||||||||||||||
(dollars in thousands except share and per share amounts) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Shareholders’ equity | $ | 1,822,869 | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | |||||||||||||||
Intangible assets | 2,124 | 2,651 | 3,178 | 3,705 | 4,232 | |||||||||||||||
Tangible equity | 1,773,886 | 1,770,311 | 1,707,775 | 1,697,030 | 1,669,932 | |||||||||||||||
Less: | ||||||||||||||||||||
Perpetual preferred stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Tangible common equity | $ | 1,623,886 | $ | 1,620,311 | $ | 1,557,775 | $ | 1,547,030 | $ | 1,519,932 | ||||||||||
Common shares outstanding at period end | 124,954,523 | 124,611,940 | 124,133,375 | 123,679,049 | 122,994,480 | |||||||||||||||
Book value per common share | $ | 13.39 | $ | 13.40 | $ | 12.95 | $ | 12.92 | $ | 12.77 | ||||||||||
Tangible common equity per common share | 13.00 | 13.00 | 12.55 | 12.51 | 12.36 | |||||||||||||||
Total assets | $ | 25,214,743 | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | |||||||||||||||
Intangible assets | 2,124 | 2,651 | 3,178 | 3,705 | 4,232 | |||||||||||||||
Tangible assets | $ | 25,165,760 | $ | 24,070,981 | $ | 23,297,182 | $ | 21,567,224 | $ | 20,459,251 | ||||||||||
Non-Performing Assets(1) | ||||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Non-accrual loans and leases: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | $ | 27,322 | $ | 26,500 | $ | 24,840 | $ | 24,576 | $ | 23,067 | ||||||||||
Home equity lines | 4,186 | 2,169 | 2,191 | 2,363 | 2,152 | |||||||||||||||
Other consumer and credit card | 5 | — | 29 | 38 | 31 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 78,801 | 48,082 | 37,025 | 41,140 | 46,819 | |||||||||||||||
Equipment financing receivables | 13,661 | 12,417 | 10,775 | 8,866 | 6,803 | |||||||||||||||
Total non-accrual loans and leases | 123,975 | 89,168 | 74,860 | 76,983 | 78,872 | |||||||||||||||
Accruing loans 90 days or more past due | — | — | — | — | — | |||||||||||||||
Total non-performing loans (NPL) | 123,975 | 89,168 | 74,860 | 76,983 | 78,872 | |||||||||||||||
Other real estate owned (OREO) | 15,491 | 16,826 | 17,588 | 22,509 | 24,501 | |||||||||||||||
Total non-performing assets (NPA) | 139,466 | 105,994 | 92,448 | 99,492 | 103,373 | |||||||||||||||
Troubled debt restructurings (TDR) less than 90 days past due | 16,558 | 14,693 | 15,251 | 13,634 | 16,547 | |||||||||||||||
Total NPA and TDR(1) | $ | 156,024 | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | ||||||||||
Total NPA and TDR | $ | 156,024 | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | ||||||||||
Government insured 90 days or more past due still accruing | 2,814,506 | 2,901,184 | 2,662,619 | 2,646,415 | 2,632,744 | |||||||||||||||
Loans accounted for under ASC 310-30: | ||||||||||||||||||||
90 days or more past due | 4,871 | 4,571 | 5,165 | 8,448 | 10,519 | |||||||||||||||
Total regulatory NPA and TDR | $ | 2,975,401 | $ | 3,026,442 | $ | 2,775,483 | $ | 2,767,989 | $ | 2,763,183 | ||||||||||
Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30: (1) | ||||||||||||||||||||
NPL to total loans | 0.56 | % | 0.42 | % | 0.37 | % | 0.41 | % | 0.45 | % | ||||||||||
NPA to total assets | 0.55 | % | 0.44 | % | 0.40 | % | 0.46 | % | 0.50 | % | ||||||||||
NPA and TDR to total assets | 0.62 | % | 0.50 | % | 0.46 | % | 0.52 | % | 0.58 | % | ||||||||||
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30: | ||||||||||||||||||||
NPL to total loans | 13.21 | % | 14.14 | % | 13.49 | % | 14.63 | % | 15.65 | % | ||||||||||
NPA to total assets | 11.73 | % | 12.49 | % | 11.82 | % | 12.74 | % | 13.39 | % | ||||||||||
NPA and TDR to total assets | 11.80 | % | 12.55 | % | 11.89 | % | 12.80 | % | 13.47 | % | ||||||||||
(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
September 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, Tangible Common Equity Per Common Share 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 Nine Months Ended | |||||||||||||||||||
(dollars in thousands, except per share amounts) | Sep 30, 2015 | Jun 30, 2015 | Sep 30, 2014 | Sep 30, 2015 | Sep 30, 2014 | |||||||||||||||
Operating Results: | ||||||||||||||||||||
Total revenue(1) | $ | 210,035 | $ | 252,839 | $ | 234,550 | $ | 650,833 | $ | 679,437 | ||||||||||
Net interest income | 168,840 | 169,025 | 146,336 | 493,303 | 417,371 | |||||||||||||||
Provision for loan and lease losses | 11,131 | 7,932 | 6,735 | 28,063 | 15,929 | |||||||||||||||
Noninterest income | 41,195 | 83,814 | 88,214 | 157,530 | 262,066 | |||||||||||||||
Noninterest expense | 151,506 | 177,968 | 157,753 | 485,516 | 486,285 | |||||||||||||||
Net income | 29,583 | 41,567 | 43,519 | 85,380 | 110,061 | |||||||||||||||
Net earnings per common share, basic | 0.22 | 0.31 | 0.33 | 0.63 | 0.83 | |||||||||||||||
Net earnings per common share, diluted | 0.21 | 0.31 | 0.33 | 0.61 | 0.82 | |||||||||||||||
Performance Metrics: | ||||||||||||||||||||
Adjusted net earnings per common share, diluted(2) | $ | 0.23 | $ | 0.35 | $ | 0.33 | $ | 0.88 | $ | 0.83 | ||||||||||
Yield on interest-earning assets | 3.85 | % | 3.99 | % | 3.95 | % | 3.94 | % | 4.12 | % | ||||||||||
Cost of interest-bearing liabilities | 1.03 | % | 0.99 | % | 1.01 | % | 1.01 | % | 1.03 | % | ||||||||||
Net interest margin | 2.90 | % | 3.11 | % | 3.02 | % | 3.03 | % | 3.20 | % | ||||||||||
Return on average assets | 0.48 | % | 0.72 | % | 0.85 | % | 0.49 | % | 0.78 | % | ||||||||||
Return on average risk-weighted assets(3) (9) | 0.74 | % | 1.10 | % | 1.37 | % | 0.76 | % | 1.21 | % | ||||||||||
Return on average equity(4) | 6.5 | % | 9.5 | % | 10.6 | % | 6.3 | % | 9.0 | % | ||||||||||
Adjusted return on average equity(5) | 6.9 | % | 10.7 | % | 10.7 | % | 9.1 | % | 9.1 | % | ||||||||||
Efficiency ratio(6) | 72 | % | 70 | % | 67 | % | 75 | % | 72 | % | ||||||||||
Adjusted efficiency ratio(7) | 71 | % | 65 | % | 67 | % | 68 | % | 71 | % | ||||||||||
Loans and leases held for investment as a percentage of deposits | 119 | % | 121 | % | 115 | % | 119 | % | 115 | % | ||||||||||
Loans and leases held for investment excluding government insured pool buyouts as a percentage of deposits | 96 | % | 98 | % | 91 | % | 96 | % | 91 | % | ||||||||||
Credit Quality Ratios: | ||||||||||||||||||||
Adjusted non-performing assets as a percentage of total assets(8) | 0.55 | % | 0.44 | % | 0.50 | % | 0.55 | % | 0.50 | % | ||||||||||
Net charge-offs to average loans and leases held for investment | 0.11 | % | 0.10 | % | 0.09 | % | 0.12 | % | 0.13 | % | ||||||||||
ALLL as a percentage of loans and leases held for investment | 0.34 | % | 0.33 | % | 0.35 | % | 0.34 | % | 0.35 | % | ||||||||||
Government insured pool buyouts as a percentage of loans and leases held for investment | 19 | % | 19 | % | 20 | % | 19 | % | 20 | % | ||||||||||
Capital: | ||||||||||||||||||||
Common equity tier 1 ratio (EFC consolidated; see Table 10d)(9) | 10.2 | % | 10.5 | % | 12.0 | % | 10.2 | % | 12.0 | % | ||||||||||
Tier 1 leverage ratio (bank level; see Table 10c)(9) | 8.2 | % | 8.6 | % | 8.5 | % | 8.2 | % | 8.5 | % | ||||||||||
Total risk-based capital ratio (bank level; see Table 10c)(9) | 12.7 | % | 13.2 | % | 14.0 | % | 12.7 | % | 14.0 | % | ||||||||||
Tangible common equity per common share(10) | $ | 13.00 | $ | 13.00 | $ | 12.36 | $ | 13.00 | $ | 12.36 | ||||||||||
Consumer Banking Metrics: | ||||||||||||||||||||
Unpaid principal balance of loans originated | $ | 2,292,027 | $ | 2,717,588 | $ | 2,302,082 | $ | 7,375,577 | $ | 6,235,450 | ||||||||||
Jumbo residential mortgage loans originated | 1,219,349 | 1,458,297 | 1,187,161 | 3,978,392 | 3,103,487 | |||||||||||||||
Unpaid principal balance of loans sold | 1,802,783 | 2,333,747 | 2,172,645 | 5,506,033 | 4,914,113 | |||||||||||||||
Unpaid principal balance of loans serviced for the Company and others | 44,347,242 | 44,835,934 | 50,830,585 | 44,347,242 | 50,830,585 | |||||||||||||||
Consumer Banking loans as a percentage of loans and leases held for investment | 56 | % | 55 | % | 58 | % | 56 | % | 58 | % | ||||||||||
Consumer deposits | $ | 13,518,818 | $ | 13,083,912 | $ | 12,087,775 | $ | 13,518,818 | $ | 12,087,775 | ||||||||||
Commercial Banking Metrics: | ||||||||||||||||||||
Loan and lease originations: | ||||||||||||||||||||
Commercial and commercial real estate | $ | 648,993 | $ | 465,924 | $ | 361,387 | $ | 1,595,134 | $ | 804,825 | ||||||||||
Equipment financing receivables | 345,490 | 293,456 | 392,790 | 862,285 | 958,799 | |||||||||||||||
Commercial Banking loans as a percentage of loans and leases held for investment | 44 | % | 45 | % | 42 | % | 44 | % | 42 | % | ||||||||||
Commercial deposits | $ | 4,047,271 | $ | 3,399,615 | $ | 2,385,730 | $ | 4,047,271 | $ | 2,385,730 | ||||||||||
Market Price Per Share of Common Stock: | ||||||||||||||||||||
Closing | $ | 19.30 | $ | 19.65 | $ | 17.66 | $ | 19.30 | $ | 17.66 | ||||||||||
High | 20.69 | 20.21 | 20.50 | 20.69 | 20.61 | |||||||||||||||
Low | 19.06 | 17.82 | 17.66 | 17.24 | 16.40 | |||||||||||||||
Period End Balance Sheet Data: | ||||||||||||||||||||
Loans and leases held for investment, net | $ | 20,805,484 | $ | 19,847,804 | $ | 16,522,706 | $ | 20,805,484 | $ | 16,522,706 | ||||||||||
Total assets | 25,214,743 | 24,120,491 | 20,510,342 | 25,214,743 | 20,510,342 | |||||||||||||||
Deposits | 17,566,089 | 16,483,527 | 14,473,505 | 17,566,089 | 14,473,505 | |||||||||||||||
Total liabilities | 23,391,874 | 22,300,670 | 18,789,319 | 23,391,874 | 18,789,319 | |||||||||||||||
Total shareholders’ equity | 1,822,869 | 1,819,821 | 1,721,023 | 1,822,869 | 1,721,023 | |||||||||||||||
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 adjusted net income to net income, see Table 10a. |
(6) | The efficiency ratio represents noninterest expense as a percentage of total revenue. 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 revenue 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 | Nine Months Ended | |||||||||||||||||||
(dollars in thousands, except per share data) | Sep 30, 2015 | Jun 30, 2015 | Sep 30, 2014 | Sep 30, 2015 | Sep 30, 2014 | |||||||||||||||
Interest Income | ||||||||||||||||||||
Interest and fees on loans and leases | $ | 215,881 | $ | 210,347 | $ | 180,913 | $ | 621,077 | $ | 509,708 | ||||||||||
Interest and dividends on investment securities | 7,520 | 7,447 | 9,627 | 22,989 | 29,276 | |||||||||||||||
Other interest income | 226 | 159 | 116 | 545 | 388 | |||||||||||||||
Total interest income | 223,627 | 217,953 | 190,656 | 644,611 | 539,372 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 31,921 | 30,219 | 26,755 | 91,904 | 72,804 | |||||||||||||||
Other borrowings | 22,866 | 18,709 | 17,565 | 59,404 | 49,197 | |||||||||||||||
Total interest expense | 54,787 | 48,928 | 44,320 | 151,308 | 122,001 | |||||||||||||||
Net Interest Income | 168,840 | 169,025 | 146,336 | 493,303 | 417,371 | |||||||||||||||
Provision for loan and lease losses | 11,131 | 7,932 | 6,735 | 28,063 | 15,929 | |||||||||||||||
Net Interest Income after Provision for Loan and Lease Losses | 157,709 | 161,093 | 139,601 | 465,240 | 401,442 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Loan servicing fee income | 27,157 | 29,569 | 35,900 | 90,858 | 122,934 | |||||||||||||||
Amortization of mortgage servicing rights | (16,760 | ) | (19,006 | ) | (19,572 | ) | (56,065 | ) | (59,170 | ) | ||||||||||
Recovery (impairment) of mortgage servicing rights | (4,450 | ) | 15,727 | 3,071 | (32,075 | ) | 8,012 | |||||||||||||
Net loan servicing income (loss) | 5,947 | 26,290 | 19,399 | 2,718 | 71,776 | |||||||||||||||
Gain on sale of loans | 18,037 | 40,588 | 47,920 | 101,248 | 129,474 | |||||||||||||||
Loan production revenue | 5,861 | 6,195 | 5,783 | 17,443 | 15,709 | |||||||||||||||
Deposit fee income | 3,844 | 3,052 | 3,828 | 10,946 | 11,696 | |||||||||||||||
Other lease income | 3,714 | 2,082 | 3,910 | 9,876 | 12,621 | |||||||||||||||
Other | 3,792 | 5,607 | 7,374 | 15,299 | 20,790 | |||||||||||||||
Total noninterest income | 41,195 | 83,814 | 88,214 | 157,530 | 262,066 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Salaries, commissions and other employee benefits expense | 89,369 | 95,769 | 90,781 | 277,124 | 283,734 | |||||||||||||||
Equipment expense | 15,576 | 15,258 | 16,623 | 46,879 | 52,616 | |||||||||||||||
Occupancy expense | 6,679 | 7,156 | 7,209 | 19,691 | 23,166 | |||||||||||||||
General and administrative expense | 39,882 | 59,785 | 43,140 | 141,822 | 126,769 | |||||||||||||||
Total noninterest expense | 151,506 | 177,968 | 157,753 | 485,516 | 486,285 | |||||||||||||||
Income before Income Taxes | 47,398 | 66,939 | 70,062 | 137,254 | 177,223 | |||||||||||||||
Provision for Income Taxes | 17,815 | 25,372 | 26,543 | 51,874 | 67,162 | |||||||||||||||
Net Income | $ | 29,583 | $ | 41,567 | $ | 43,519 | $ | 85,380 | $ | 110,061 | ||||||||||
Net Income Allocated to Preferred Stock | 2,532 | 2,531 | 2,532 | 7,594 | 7,594 | |||||||||||||||
Net Income Allocated to Common Shareholders | $ | 27,051 | $ | 39,036 | $ | 40,987 | $ | 77,786 | $ | 102,467 | ||||||||||
Net Earnings per Common Share, Basic | $ | 0.22 | $ | 0.31 | $ | 0.33 | $ | 0.63 | $ | 0.83 | ||||||||||
Net Earnings per Common Share, Diluted | $ | 0.21 | $ | 0.31 | $ | 0.33 | $ | 0.61 | $ | 0.82 | ||||||||||
Dividends Declared per Common Share | $ | 0.06 | $ | 0.04 | $ | 0.04 | $ | 0.14 | $ | 0.10 | ||||||||||
Dividend payout ratio(1) | 27.27 | % | 12.90 | % | 12.12 | % | 22.22 | % | 12.05 | % | ||||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||||||||
(units in thousands) | ||||||||||||||||||||
Basic | 124,823 | 124,348 | 122,950 | 124,373 | 122,826 | |||||||||||||||
Diluted | 127,099 | 126,523 | 125,473 | 126,568 | 125,292 | |||||||||||||||
(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) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 64,822 | $ | 59,976 | $ | 63,094 | $ | 49,436 | $ | 57,835 | ||||||||||
Interest-bearing deposits in banks | 534,354 | 498,184 | 488,954 | 317,228 | 306,265 | |||||||||||||||
Total cash and cash equivalents | 599,176 | 558,160 | 552,048 | 366,664 | 364,100 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Available for sale, at fair value | 574,104 | 656,587 | 719,645 | 776,311 | 987,345 | |||||||||||||||
Held to maturity | 112,219 | 109,393 | 115,631 | 115,084 | 113,751 | |||||||||||||||
Other investments | 240,832 | 239,089 | 236,494 | 196,609 | 194,314 | |||||||||||||||
Total investment securities | 927,155 | 1,005,069 | 1,071,770 | 1,088,004 | 1,295,410 | |||||||||||||||
Loans held for sale | 1,483,754 | 1,330,779 | 1,861,306 | 973,507 | 871,736 | |||||||||||||||
Loans and leases held for investment: | ||||||||||||||||||||
Loans and leases held for investment, net of unearned income | 20,877,381 | 19,913,895 | 18,533,637 | 17,760,253 | 16,579,951 | |||||||||||||||
Allowance for loan and lease losses | (71,897 | ) | (66,091 | ) | (62,846 | ) | (60,846 | ) | (57,245 | ) | ||||||||||
Total loans and leases held for investment, net | 20,805,484 | 19,847,804 | 18,470,791 | 17,699,407 | 16,522,706 | |||||||||||||||
Mortgage servicing rights (MSR), net | 357,550 | 362,803 | 383,763 | 435,619 | 441,243 | |||||||||||||||
Deferred income taxes, net | — | — | — | — | 3,162 | |||||||||||||||
Premises and equipment, net | 52,425 | 52,176 | 54,283 | 56,457 | 55,500 | |||||||||||||||
Other assets | 989,199 | 963,700 | 953,258 | 998,130 | 956,485 | |||||||||||||||
Total Assets | $ | 25,214,743 | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 1,389,644 | $ | 1,152,917 | $ | 1,213,266 | $ | 984,703 | $ | 1,084,400 | ||||||||||
Interest-bearing | 16,176,445 | 15,330,610 | 14,863,421 | 14,523,994 | 13,389,105 | |||||||||||||||
Total deposits | 17,566,089 | 16,483,527 | 16,076,687 | 15,508,697 | 14,473,505 | |||||||||||||||
Other borrowings | 5,297,000 | 5,247,000 | 5,178,000 | 4,004,000 | 3,977,000 | |||||||||||||||
Trust preferred securities and subordinated notes payable | 276,103 | 276,452 | 103,750 | 103,750 | 103,750 | |||||||||||||||
Accounts payable and accrued liabilities | 252,682 | 293,691 | 230,970 | 253,747 | 235,064 | |||||||||||||||
Total Liabilities | 23,391,874 | 22,300,670 | 21,589,407 | 19,870,194 | 18,789,319 | |||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||
Series A 6.75% Non-Cumulative Perpetual Preferred Stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Common Stock | 1,250 | 1,246 | 1,241 | 1,237 | 1,230 | |||||||||||||||
Additional paid-in capital | 873,175 | 865,632 | 858,925 | 851,158 | 840,667 | |||||||||||||||
Retained earnings | 871,160 | 851,602 | 817,539 | 810,796 | 780,234 | |||||||||||||||
Accumulated other comprehensive loss | (72,716 | ) | (48,659 | ) | (69,893 | ) | (65,597 | ) | (51,108 | ) | ||||||||||
Total Shareholders’ Equity | 1,822,869 | 1,819,821 | 1,757,812 | 1,747,594 | 1,721,023 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 25,214,743 | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | ||||||||||
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 September 30, 2015 | ||||||||||||||||||||
Net interest income | $ | 92,157 | $ | 80,790 | $ | (4,107 | ) | $ | — | $ | 168,840 | |||||||||
Provision for loan and lease losses | 3,091 | 8,040 | — | — | 11,131 | |||||||||||||||
Net interest income after provision for loan and lease losses | 89,066 | 72,750 | (4,107 | ) | — | 157,709 | ||||||||||||||
Noninterest income | 32,847 | 8,204 | 144 | — | 41,195 | |||||||||||||||
Noninterest expense | 94,014 | 30,386 | 27,106 | — | 151,506 | |||||||||||||||
Income (loss) before income tax | 27,899 | 50,568 | (31,069 | ) | — | 47,398 | ||||||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | (921 | ) | — | (343 | ) | — | (1,264 | ) | ||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount | (44 | ) | (39 | ) | — | — | (83 | ) | ||||||||||||
MSR impairment (recovery) | 4,450 | — | — | — | 4,450 | |||||||||||||||
Restructuring cost | (360 | ) | — | — | — | (360 | ) | |||||||||||||
Adjusted income (loss) before income tax | $ | 31,024 | $ | 50,529 | $ | (31,412 | ) | $ | — | $ | 50,141 | |||||||||
Total assets as of September 30, 2015 | $ | 15,649,933 | $ | 9,678,171 | $ | 274,938 | $ | (388,299 | ) | $ | 25,214,743 | |||||||||
Total deposits as of September 30, 2015 | 13,518,818 | 4,047,271 | — | — | 17,566,089 | |||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||
Net interest income | $ | 84,635 | $ | 63,302 | $ | (1,601 | ) | $ | — | $ | 146,336 | |||||||||
Provision for loan and lease losses | 5,476 | 1,259 | — | — | 6,735 | |||||||||||||||
Net interest income after provision for loan and lease losses | 79,159 | 62,043 | (1,601 | ) | — | 139,601 | ||||||||||||||
Noninterest income | 75,241 | 12,797 | 176 | — | 88,214 | |||||||||||||||
Noninterest expense | 105,776 | 27,859 | 24,118 | — | 157,753 | |||||||||||||||
Income (loss) before income tax | 48,624 | 46,981 | (25,543 | ) | — | 70,062 | ||||||||||||||
Adjustment items (pre-tax): | ||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | 3,175 | — | 375 | — | 3,550 | |||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount | — | 319 | — | — | 319 | |||||||||||||||
MSR impairment (recovery) | (3,070 | ) | — | — | — | (3,070 | ) | |||||||||||||
OTTI losses on investment securities (Volcker Rule) | — | — | — | — | — | |||||||||||||||
Adjusted income (loss) before income tax | $ | 48,729 | $ | 47,300 | $ | (25,168 | ) | $ | — | $ | 70,861 | |||||||||
Total assets as of September 30, 2014 | $ | 13,292,823 | $ | 7,257,986 | $ | 120,054 | $ | (160,521 | ) | $ | 20,510,342 | |||||||||
Total deposits as of September 30, 2014 | 12,087,775 | 2,385,730 | — | — | 14,473,505 | |||||||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||||||||||||||
Average Balances and Interest Rates(1) (2) (3) | Table 5 | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2015 | Three Months Ended June 30, 2015 | Three Months Ended September 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 | $ | 351,834 | $ | 226 | 0.26 | % | $ | 249,732 | $ | 159 | 0.25 | % | $ | 184,449 | $ | 116 | 0.25 | % | |||||||||||||||
Investments | 995,467 | 7,520 | 3.01 | % | 1,031,225 | 7,447 | 2.89 | % | 1,322,842 | 9,627 | 2.90 | % | |||||||||||||||||||||
Loans held for sale | 1,740,497 | 14,529 | 3.34 | % | 1,971,798 | 16,378 | 3.32 | % | 1,866,562 | 15,740 | 3.37 | % | |||||||||||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||||||
Residential mortgages: | |||||||||||||||||||||||||||||||||
Residential | 6,901,559 | 55,895 | 3.24 | % | 6,208,965 | 53,034 | 3.42 | % | 5,261,448 | 45,245 | 3.44 | % | |||||||||||||||||||||
Government insured pool buyouts | 3,994,565 | 45,353 | 4.54 | % | 3,701,238 | 43,137 | 4.66 | % | 3,738,326 | 36,102 | 3.86 | % | |||||||||||||||||||||
Residential mortgages | 10,896,124 | 101,248 | 3.72 | % | 9,910,203 | 96,171 | 3.88 | % | 8,999,774 | 81,347 | 3.62 | % | |||||||||||||||||||||
Home equity lines | 250,537 | 2,770 | 4.39 | % | 185,839 | 2,168 | 4.68 | % | 137,993 | 2,074 | 5.96 | % | |||||||||||||||||||||
Other consumer and credit card | 4,778 | 130 | 10.79 | % | 4,695 | 92 | 7.86 | % | 4,945 | 108 | 8.70 | % | |||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||||||||||||||
Commercial real estate and other commercial | 3,832,593 | 50,346 | 5.21 | % | 3,626,989 | 49,890 | 5.48 | % | 3,263,260 | 46,156 | 5.62 | % | |||||||||||||||||||||
Mortgage warehouse finance | 1,862,290 | 12,707 | 2.67 | % | 1,875,134 | 12,758 | 2.69 | % | 1,191,602 | 8,822 | 2.90 | % | |||||||||||||||||||||
Lender finance | 1,023,005 | 8,985 | 3.44 | % | 896,994 | 8,116 | 3.58 | % | 630,336 | 5,677 | 3.52 | % | |||||||||||||||||||||
Commercial and commercial real estate | 6,717,888 | 72,038 | 4.24 | % | 6,399,117 | 70,764 | 4.40 | % | 5,085,198 | 60,655 | 4.72 | % | |||||||||||||||||||||
Equipment financing receivables | 2,173,960 | 25,166 | 4.63 | % | 2,079,283 | 24,774 | 4.77 | % | 1,625,813 | 20,989 | 5.16 | % | |||||||||||||||||||||
Total loans and leases held for investment | 20,043,287 | 201,352 | 4.00 | % | 18,579,137 | 193,969 | 4.17 | % | 15,853,723 | 165,173 | 4.15 | % | |||||||||||||||||||||
Total interest-earning assets | 23,131,085 | $ | 223,627 | 3.85 | % | 21,831,892 | $ | 217,953 | 3.99 | % | 19,227,576 | $ | 190,656 | 3.95 | % | ||||||||||||||||||
Noninterest-earning assets | 1,309,468 | 1,208,509 | 1,206,336 | ||||||||||||||||||||||||||||||
Total assets | $ | 24,440,553 | $ | 23,040,401 | $ | 20,433,912 | |||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 3,625,255 | $ | 6,214 | 0.68 | % | $ | 3,643,248 | $ | 6,111 | 0.67 | % | $ | 2,821,448 | $ | 4,382 | 0.62 | % | |||||||||||||||
Market-based money market accounts | 365,005 | 561 | 0.61 | % | 367,871 | 577 | 0.63 | % | 403,670 | 621 | 0.61 | % | |||||||||||||||||||||
Savings and money market accounts, excluding market-based | 5,457,507 | 9,063 | 0.66 | % | 5,098,205 | 8,240 | 0.65 | % | 5,077,685 | 8,069 | 0.63 | % | |||||||||||||||||||||
Market-based time | 390,975 | 610 | 0.62 | % | 423,006 | 736 | 0.70 | % | 561,292 | 1,171 | 0.83 | % | |||||||||||||||||||||
Time, excluding market-based | 5,527,481 | 15,473 | 1.11 | % | 5,318,760 | 14,555 | 1.10 | % | 4,501,948 | 12,512 | 1.10 | % | |||||||||||||||||||||
Total deposits | 15,366,223 | 31,921 | 0.82 | % | 14,851,090 | 30,219 | 0.82 | % | 13,366,043 | 26,755 | 0.79 | % | |||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||
Trust preferred securities and subordinated notes payable | 276,234 | 4,192 | 6.07 | % | 105,648 | 1,681 | 6.37 | % | 103,750 | 1,661 | 6.35 | % | |||||||||||||||||||||
FHLB advances | 5,424,174 | 18,674 | 1.35 | % | 4,826,396 | 17,028 | 1.40 | % | 3,808,326 | 15,904 | 1.63 | % | |||||||||||||||||||||
Other | — | — | 0.00 | % | — | — | 0.00 | % | 24,000 | — | 0.00 | % | |||||||||||||||||||||
Total borrowings | 5,700,408 | 22,866 | 1.58 | % | 4,932,044 | 18,709 | 1.50 | % | 3,936,076 | 17,565 | 1.75 | % | |||||||||||||||||||||
Total interest-bearing liabilities | 21,066,631 | 54,787 | 1.03 | % | 19,783,134 | 48,928 | 0.99 | % | 17,302,119 | 44,320 | 1.01 | % | |||||||||||||||||||||
Noninterest-bearing demand deposits | 1,309,855 | 1,278,044 | 1,173,181 | ||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 239,823 | 192,214 | 259,794 | ||||||||||||||||||||||||||||||
Total liabilities | 22,616,309 | 21,253,392 | 18,735,094 | ||||||||||||||||||||||||||||||
Total shareholders’ equity | 1,824,244 | 1,787,009 | 1,698,818 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 24,440,553 | $ | 23,040,401 | $ | 20,433,912 | |||||||||||||||||||||||||||
Net interest income/spread | $ | 168,840 | 2.82 | % | $ | 169,025 | 3.00 | % | $ | 146,336 | 2.94 | % | |||||||||||||||||||||
Net interest margin | 2.90 | % | 3.11 | % | 3.02 | % | |||||||||||||||||||||||||||
Memo: Total deposits including noninterest-bearing | $ | 16,676,078 | $ | 31,921 | 0.76 | % | $ | 16,129,134 | $ | 30,219 | 0.75 | % | $ | 14,539,224 | $ | 26,755 | 0.73 | % | |||||||||||||||
(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) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Residential mortgages: | ||||||||||||||||||||||||||||
Residential | $ | 7,364,522 | $ | 6,899,235 | $ | 6,265,322 | $ | 6,324,965 | $ | 6,006,987 | ||||||||||||||||||
Government insured pool buyouts | 3,947,359 | 3,824,378 | 3,513,916 | 3,595,105 | 3,395,095 | |||||||||||||||||||||||
Residential mortgages | 11,311,881 | 10,723,613 | 9,779,238 | 9,920,070 | 9,402,082 | |||||||||||||||||||||||
Home equity lines | 332,183 | 237,241 | 170,998 | 156,869 | 139,589 | |||||||||||||||||||||||
Other consumer and credit card | 4,910 | 4,870 | 4,472 | 5,054 | 5,894 | |||||||||||||||||||||||
Total Consumer Banking | 11,648,974 | 10,965,724 | 9,954,708 | 10,081,993 | 9,547,565 | |||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and commercial real estate: | ||||||||||||||||||||||||||||
Commercial real estate and other commercial | 3,660,362 | 3,731,671 | 3,550,489 | 3,527,586 | 3,328,979 | |||||||||||||||||||||||
Mortgage warehouse finance | 2,162,627 | 2,155,535 | 2,103,098 | 1,356,651 | 1,185,591 | |||||||||||||||||||||||
Lender finance | 1,117,886 | 914,422 | 851,759 | 762,453 | 678,400 | |||||||||||||||||||||||
Commercial and commercial real estate | 6,940,875 | 6,801,628 | 6,505,346 | 5,646,690 | 5,192,970 | |||||||||||||||||||||||
Equipment financing receivables | 2,287,532 | 2,146,543 | 2,073,583 | 2,031,570 | 1,839,416 | |||||||||||||||||||||||
Total Commercial Banking | 9,228,407 | 8,948,171 | 8,578,929 | 7,678,260 | 7,032,386 | |||||||||||||||||||||||
Loans and leases held for investment, net of unearned income | 20,877,381 | 19,913,895 | 18,533,637 | 17,760,253 | 16,579,951 | |||||||||||||||||||||||
Allowance for loan and lease losses | (71,897 | ) | (66,091 | ) | (62,846 | ) | (60,846 | ) | (57,245 | ) | ||||||||||||||||||
Total loans and leases held for investment, net | $ | 20,805,484 | $ | 19,847,804 | $ | 18,470,791 | $ | 17,699,407 | $ | 16,522,706 | ||||||||||||||||||
The balances presented above include: | ||||||||||||||||||||||||||||
Net purchased loan and lease discounts | $ | 43,166 | $ | 43,215 | $ | 50,053 | $ | 47,108 | $ | 54,510 | ||||||||||||||||||
Net deferred loan and lease origination costs | $ | 115,990 | $ | 108,141 | $ | 98,757 | $ | 94,778 | $ | 84,832 | ||||||||||||||||||
Deposits | Table 6b | |||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 1,389,644 | $ | 1,152,917 | $ | 1,213,266 | $ | 984,703 | $ | 1,084,400 | ||||||||||||||||||
Interest-bearing demand | 3,631,458 | 3,626,387 | 3,674,565 | 3,540,027 | 2,941,171 | |||||||||||||||||||||||
Market-based money market accounts | 351,880 | 372,282 | 352,865 | 374,856 | 397,617 | |||||||||||||||||||||||
Savings and money market accounts, excluding market-based | 5,734,451 | 5,211,101 | 5,137,429 | 5,136,031 | 5,159,642 | |||||||||||||||||||||||
Market-based time | 379,967 | 412,103 | 426,431 | 466,514 | 511,923 | |||||||||||||||||||||||
Time, excluding market-based | 6,078,689 | 5,708,737 | 5,272,131 | 5,006,566 | 4,378,752 | |||||||||||||||||||||||
Total deposits | $ | 17,566,089 | $ | 16,483,527 | $ | 16,076,687 | $ | 15,508,697 | $ | 14,473,505 | ||||||||||||||||||
General and Administrative Expense | Table 7 | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||||||||
Legal and professional fees, excluding consent order expense | $ | 6,123 | $ | 7,323 | $ | 5,928 | $ | 9,903 | $ | 7,061 | $ | 19,374 | $ | 21,652 | ||||||||||||||
Credit-related expenses | 7,340 | 11,860 | 2,698 | 4,995 | 6,356 | 21,898 | 22,728 | |||||||||||||||||||||
FDIC premium assessment and other agency fees | 7,066 | 6,468 | 6,414 | 6,025 | 6,684 | 19,948 | 13,440 | |||||||||||||||||||||
Advertising and marketing expense | 5,810 | 6,262 | 6,664 | 5,899 | 6,175 | 18,736 | 15,538 | |||||||||||||||||||||
Subservicing expense | (103 | ) | 1,345 | 3,791 | 3,716 | 3,673 | 5,033 | 6,155 | ||||||||||||||||||||
Consent order expense | (866 | ) | 163 | 2,741 | 108 | 1,634 | 2,038 | 4,489 | ||||||||||||||||||||
Other | 14,512 | 26,364 | 13,919 | 11,078 | 11,557 | 54,795 | 42,767 | |||||||||||||||||||||
Total general and administrative expense | $ | 39,882 | $ | 59,785 | $ | 42,155 | $ | 41,724 | $ | 43,140 | $ | 141,822 | $ | 126,769 | ||||||||||||||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Non-Performing Assets(1) | Table 8 | |||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Non-accrual loans and leases: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | $ | 27,322 | $ | 26,500 | $ | 24,840 | $ | 24,576 | $ | 23,067 | ||||||||||
Home equity lines | 4,186 | 2,169 | 2,191 | 2,363 | 2,152 | |||||||||||||||
Other consumer and credit card | 5 | — | 29 | 38 | 31 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 78,801 | 48,082 | 37,025 | 41,140 | 46,819 | |||||||||||||||
Equipment financing receivables | 13,661 | 12,417 | 10,775 | 8,866 | 6,803 | |||||||||||||||
Total non-accrual loans and leases | 123,975 | 89,168 | 74,860 | 76,983 | 78,872 | |||||||||||||||
Accruing loans 90 days or more past due | — | — | — | — | — | |||||||||||||||
Total non-performing loans (NPL) | 123,975 | 89,168 | 74,860 | 76,983 | 78,872 | |||||||||||||||
Other real estate owned (OREO) | 15,491 | 16,826 | 17,588 | 22,509 | 24,501 | |||||||||||||||
Total non-performing assets (NPA) | 139,466 | 105,994 | 92,448 | 99,492 | 103,373 | |||||||||||||||
Troubled debt restructurings (TDR) less than 90 days past due | 16,558 | 14,693 | 15,251 | 13,634 | 16,547 | |||||||||||||||
Total NPA and TDR(1) | $ | 156,024 | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | ||||||||||
Total NPA and TDR | $ | 156,024 | $ | 120,687 | $ | 107,699 | $ | 113,126 | $ | 119,920 | ||||||||||
Government insured 90 days or more past due still accruing | 2,814,506 | 2,901,184 | 2,662,619 | 2,646,415 | 2,632,744 | |||||||||||||||
Loans accounted for under ASC 310-30: | ||||||||||||||||||||
90 days or more past due | 4,871 | 4,571 | 5,165 | 8,448 | 10,519 | |||||||||||||||
Total regulatory NPA and TDR | $ | 2,975,401 | $ | 3,026,442 | $ | 2,775,483 | $ | 2,767,989 | $ | 2,763,183 | ||||||||||
Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30:(1) | ||||||||||||||||||||
NPL to total loans | 0.56 | % | 0.42 | % | 0.37 | % | 0.41 | % | 0.45 | % | ||||||||||
NPA to total assets | 0.55 | % | 0.44 | % | 0.40 | % | 0.46 | % | 0.50 | % | ||||||||||
NPA and TDR to total assets | 0.62 | % | 0.50 | % | 0.46 | % | 0.52 | % | 0.58 | % | ||||||||||
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30: | ||||||||||||||||||||
NPL to total loans | 13.21 | % | 14.14 | % | 13.49 | % | 14.63 | % | 15.65 | % | ||||||||||
NPA to total assets | 11.73 | % | 12.49 | % | 11.82 | % | 12.74 | % | 13.39 | % | ||||||||||
NPA and TDR to total assets | 11.80 | % | 12.55 | % | 11.89 | % | 12.80 | % | 13.47 | % | ||||||||||
(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) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
ALLL, beginning of period | $ | 66,091 | $ | 62,846 | $ | 60,846 | $ | 57,245 | $ | 56,728 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | 2,630 | 2,447 | 2,539 | 1,368 | 2,023 | |||||||||||||||
Home equity lines | 353 | 276 | 288 | 383 | 171 | |||||||||||||||
Other consumer and credit card | — | 29 | 33 | 28 | 28 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 406 | — | 2,018 | 1,626 | 568 | |||||||||||||||
Equipment financing receivables | 2,703 | 2,838 | 2,631 | 2,122 | 1,548 | |||||||||||||||
Total charge-offs | 6,092 | 5,590 | 7,509 | 5,527 | 4,338 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||
Residential mortgages | 91 | 53 | 58 | 152 | 127 | |||||||||||||||
Home equity lines | 70 | 97 | 83 | 48 | 289 | |||||||||||||||
Other consumer and credit card | — | — | — | — | — | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||
Commercial and commercial real estate | 4 | 218 | 2 | 2 | 6 | |||||||||||||||
Equipment financing receivables | 602 | 535 | 366 | 322 | 180 | |||||||||||||||
Total recoveries | 767 | 903 | 509 | 524 | 602 | |||||||||||||||
Net charge-offs | 5,325 | 4,687 | 7,000 | 5,003 | 3,736 | |||||||||||||||
Provision for loan and lease losses | 11,131 | 7,932 | 9,000 | 8,604 | 6,735 | |||||||||||||||
Transfers to loans held for sale | — | — | — | — | (2,482 | ) | ||||||||||||||
ALLL, end of period | $ | 71,897 | $ | 66,091 | $ | 62,846 | $ | 60,846 | $ | 57,245 | ||||||||||
Net charge-offs to average loans and leases held for investment | 0.11 | % | 0.10 | % | 0.16 | % | 0.12 | % | 0.09 | % | ||||||||||
Allowance for Loan and Lease Losses Ratio | Table 9b | |||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
ALLL | $ | 71,897 | $ | 66,091 | $ | 62,846 | $ | 60,846 | $ | 57,245 | ||||||||||
Loans and leases held for investment, net of unearned income | 20,877,381 | 19,913,895 | 18,533,637 | 17,760,253 | 16,579,951 | |||||||||||||||
ALLL as a percentage of loans and leases held for investment | 0.34 | % | 0.33 | % | 0.34 | % | 0.34 | % | 0.35 | % | ||||||||||
Government insured pool buyouts as a percentage of loans and leases held for investment | 19 | % | 19 | % | 19 | % | 20 | % | 20 | % | ||||||||||
Reserves for Repurchase Obligations for Loans Sold or Securitized | Table 9c | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Loan origination repurchase reserves, beginning of period | $ | 18,145 | $ | 25,585 | $ | 25,940 | $ | 24,712 | $ | 26,373 | ||||||||||
Provision for new sales/securitizations | 633 | 840 | 442 | 548 | 627 | |||||||||||||||
Provision (release of provision) for changes in estimate of existing reserves | (3,525 | ) | (3,655 | ) | (531 | ) | 1,500 | — | ||||||||||||
Net realized losses on repurchases | (10,285 | ) | (4,625 | ) | (266 | ) | (820 | ) | (2,288 | ) | ||||||||||
Loan origination repurchase reserves, end of period | $ | 4,968 | $ | 18,145 | $ | 25,585 | $ | 25,940 | $ | 24,712 | ||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||
Adjusted Net Income | Table 10a | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
(dollars in thousands, except per share data) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Sep 30, 2015 | Sep 30, 2014 | ||||||||||||||||||||
Net income | $ | 29,583 | $ | 41,567 | $ | 14,230 | $ | 38,021 | $ | 43,519 | $ | 85,380 | $ | 110,061 | |||||||||||||
Transaction expense and non-recurring regulatory related expense, net of tax | (784 | ) | 3,745 | 1,498 | 2,502 | 2,201 | 4,459 | 3,960 | |||||||||||||||||||
Increase (decrease) in Bank of Florida non-accretable discount, net of tax | (51 | ) | 159 | (967 | ) | (205 | ) | 198 | (859 | ) | 932 | ||||||||||||||||
MSR impairment (recovery), net of tax | 2,758 | (9,751 | ) | 26,879 | — | (1,904 | ) | 19,886 | (4,967 | ) | |||||||||||||||||
Restructuring cost, net of tax | (222 | ) | 10,667 | — | (164 | ) | — | 10,445 | 630 | ||||||||||||||||||
OTTI losses on investment securities (Volcker Rule), net of tax | — | — | — | — | — | — | 425 | ||||||||||||||||||||
Adjusted net income | $ | 31,284 | $ | 46,387 | $ | 41,640 | $ | 40,154 | $ | 44,014 | $ | 119,311 | $ | 111,041 | |||||||||||||
Adjusted net income allocated to preferred stock | 2,532 | 2,531 | 2,531 | 2,531 | 2,532 | 7,594 | 7,594 | ||||||||||||||||||||
Adjusted net income allocated to common shareholders | $ | 28,752 | $ | 43,856 | $ | 39,109 | $ | 37,623 | $ | 41,482 | $ | 111,717 | $ | 103,447 | |||||||||||||
Adjusted net earnings per common share, basic | $ | 0.23 | $ | 0.35 | $ | 0.32 | $ | 0.31 | $ | 0.34 | $ | 0.90 | $ | 0.84 | |||||||||||||
Adjusted net earnings per common share, diluted | $ | 0.23 | $ | 0.35 | $ | 0.31 | $ | 0.30 | $ | 0.33 | $ | 0.88 | $ | 0.83 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||
(units in thousands) | |||||||||||||||||||||||||||
Basic | 124,823 | 124,348 | 123,939 | 123,278 | 122,950 | 124,373 | 122,826 | ||||||||||||||||||||
Diluted | 127,099 | 126,523 | 126,037 | 125,646 | 125,473 | 126,568 | 125,292 | ||||||||||||||||||||
Adjusted Efficiency Ratio | Table 10b | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
(dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Sep 30, 2015 | Sep 30, 2014 | ||||||||||||||||||||
Net interest income | $ | 168,840 | $ | 169,025 | $ | 155,438 | $ | 147,436 | $ | 146,336 | $ | 493,303 | $ | 417,371 | |||||||||||||
Noninterest income | 41,195 | 83,814 | 32,521 | 75,173 | 88,214 | 157,530 | 262,066 | ||||||||||||||||||||
Total revenue | 210,035 | 252,839 | 187,959 | 222,609 | 234,550 | 650,833 | 679,437 | ||||||||||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||||||||||
MSR impairment (recovery) | 4,450 | (15,727 | ) | 43,352 | — | (3,070 | ) | 32,075 | (8,011 | ) | |||||||||||||||||
Restructuring cost | — | 96 | — | (465 | ) | — | 96 | (1,964 | ) | ||||||||||||||||||
OTTI losses on securities (Volcker Rule) | — | — | — | — | — | — | 685 | ||||||||||||||||||||
Adjusted total revenue | $ | 214,485 | $ | 237,208 | $ | 231,311 | $ | 222,144 | $ | 231,480 | $ | 683,004 | $ | 670,147 | |||||||||||||
Noninterest expense | $ | 151,506 | $ | 177,968 | $ | 156,042 | $ | 152,657 | $ | 157,753 | $ | 485,516 | $ | 486,285 | |||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||||||||||
Transaction expense and non-recurring regulatory related expense | 1,264 | (6,041 | ) | (2,417 | ) | (4,035 | ) | (3,550 | ) | (7,194 | ) | (6,387 | ) | ||||||||||||||
Restructuring cost | 360 | (17,108 | ) | — | (200 | ) | — | (16,748 | ) | (2,981 | ) | ||||||||||||||||
Adjusted noninterest expense | $ | 153,130 | $ | 154,819 | $ | 153,625 | $ | 148,422 | $ | 154,203 | $ | 461,574 | $ | 476,917 | |||||||||||||
GAAP efficiency ratio | 72 | % | 70 | % | 83 | % | 69 | % | 67 | % | 75 | % | 72 | % | |||||||||||||
Adjusted efficiency ratio | 71 | % | 65 | % | 66 | % | 67 | % | 67 | % | 68 | % | 71 | % | |||||||||||||
EverBank Financial Corp and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures (continued) | |||||||||||||||||||||
Regulatory Capital(1) (bank level) | Table 10c | ||||||||||||||||||||
(dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 2,002,848 | $ | 2,000,597 | $ | 1,793,270 | $ | 1,789,398 | $ | 1,769,205 | |||||||||||
Less: | Goodwill and other intangibles | (47,198 | ) | (47,253 | ) | (47,442 | ) | (49,589 | ) | (49,957 | ) | ||||||||||
Disallowed servicing asset | (26,699 | ) | (31,625 | ) | (46,302 | ) | (32,054 | ) | (23,524 | ) | |||||||||||
Disallowed deferred tax asset | — | — | (659 | ) | — | — | |||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 71,202 | 47,179 | 68,225 | 64,002 | 49,516 | |||||||||||||||
Tier 1 capital | (A) | 2,000,153 | 1,968,898 | 1,767,092 | 1,771,757 | 1,745,240 | |||||||||||||||
Add: | Allowance for loan and lease losses | 72,653 | 67,196 | 62,846 | 60,846 | 57,245 | |||||||||||||||
Total regulatory capital | (B) | $ | 2,072,806 | $ | 2,036,094 | $ | 1,829,938 | $ | 1,832,603 | $ | 1,802,485 | ||||||||||
Adjusted total assets | (C) | $ | 24,428,171 | $ | 23,000,873 | $ | 21,732,119 | $ | 21,592,849 | $ | 20,480,723 | ||||||||||
Risk-weighted assets | (D) | 16,336,138 | 15,464,920 | 14,822,821 | 13,658,685 | 12,869,352 | |||||||||||||||
Tier 1 leverage ratio | (A)/(C) | 8.2 | % | 8.6 | % | 8.1 | % | 8.2 | % | 8.5 | % | ||||||||||
Tier 1 risk-based capital ratio | (A)/(D) | 12.2 | % | 12.7 | % | 11.9 | % | 13.0 | % | 13.6 | % | ||||||||||
Total risk-based capital ratio | (B)/(D) | 12.7 | % | 13.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | ||||||||||
(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) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||
Shareholders’ equity | $ | 1,822,869 | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | |||||||||||
Less: | Preferred stock | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | (150,000 | ) | ||||||||||
Goodwill and other intangibles | (47,198 | ) | (47,253 | ) | (47,310 | ) | (49,589 | ) | (49,957 | ) | |||||||||||
Disallowed servicing asset | (39,838 | ) | (44,798 | ) | (53,648 | ) | (32,054 | ) | (23,524 | ) | |||||||||||
Disallowed deferred tax asset | — | — | (634 | ) | — | — | |||||||||||||||
Add: | Accumulated losses on securities and cash flow hedges | 72,716 | 48,659 | 69,893 | 65,597 | 51,108 | |||||||||||||||
Common tier 1 capital | (E) | 1,658,549 | 1,626,429 | 1,576,113 | 1,581,548 | 1,548,650 | |||||||||||||||
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) | 1,912,299 | 1,880,179 | 1,829,863 | 1,835,298 | 1,802,400 | |||||||||||||||
Add: | Subordinated notes payable | 172,353 | 172,702 | — | — | — | |||||||||||||||
Add: | Allowance for loan and lease losses | 72,653 | 67,196 | 62,846 | 60,846 | 57,245 | |||||||||||||||
Total regulatory capital | (G) | $ | 2,157,305 | $ | 2,120,077 | $ | 1,892,709 | $ | 1,896,144 | $ | 1,859,645 | ||||||||||
Adjusted total assets | (H) | $ | 24,429,012 | $ | 22,997,941 | $ | 21,738,727 | $ | 21,601,742 | $ | 20,487,969 | ||||||||||
Risk-weighted assets | (I) | 16,327,166 | 15,454,736 | 14,819,123 | 13,665,981 | 12,875,007 | |||||||||||||||
Common equity tier 1 ratio | (E)/(I) | 10.2 | % | 10.5 | % | 10.6 | % | 11.6 | % | 12.0 | % | ||||||||||
Tier 1 leverage ratio | (F)/(H) | 7.8 | % | 8.2 | % | 8.4 | % | 8.5 | % | 8.8 | % | ||||||||||
Tier 1 risk-based capital ratio | (F)/(I) | 11.7 | % | 12.2 | % | 12.3 | % | 13.4 | % | 14.0 | % | ||||||||||
Total risk-based capital ratio | (G)/(I) | 13.2 | % | 13.7 | % | 12.8 | % | 13.9 | % | 14.4 | % | ||||||||||
(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, Tangible Common Equity Per Common Share and Tangible Assets | Table 10e | ||||||||||||||||||
(dollars in thousands except share and per share amounts) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||
Shareholders’ equity | $ | 1,822,869 | $ | 1,819,821 | $ | 1,757,812 | $ | 1,747,594 | $ | 1,721,023 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | ||||||||||||||
Intangible assets | 2,124 | 2,651 | 3,178 | 3,705 | 4,232 | ||||||||||||||
Tangible equity | 1,773,886 | 1,770,311 | 1,707,775 | 1,697,030 | 1,669,932 | ||||||||||||||
Less: | |||||||||||||||||||
Perpetual preferred stock | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | ||||||||||||||
Tangible common equity | $ | 1,623,886 | $ | 1,620,311 | $ | 1,557,775 | $ | 1,547,030 | $ | 1,519,932 | |||||||||
Common shares outstanding at period end | 124,954,523 | 124,611,940 | 124,133,375 | 123,679,049 | 122,994,480 | ||||||||||||||
Book value per common share | $ | 13.39 | $ | 13.40 | $ | 12.95 | $ | 12.92 | $ | 12.77 | |||||||||
Tangible common equity per common share | 13.00 | 13.00 | 12.55 | 12.51 | 12.36 | ||||||||||||||
Total assets | $ | 25,214,743 | $ | 24,120,491 | $ | 23,347,219 | $ | 21,617,788 | $ | 20,510,342 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 46,859 | 46,859 | 46,859 | 46,859 | 46,859 | ||||||||||||||
Intangible assets | 2,124 | 2,651 | 3,178 | 3,705 | 4,232 | ||||||||||||||
Tangible assets | $ | 25,165,760 | $ | 24,070,981 | $ | 23,297,182 | $ | 21,567,224 | $ | 20,459,251 | |||||||||
EverBank Financial Corp and Subsidiaries | ||||||||||||||||||||
Residential Mortgage Lending and Servicing | Table 11 | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||
Key Metrics: | ||||||||||||||||||||
Mortgage lending volume: | ||||||||||||||||||||
Agency | $ | 961,485 | $ | 1,177,725 | $ | 1,043,500 | $ | 971,774 | $ | 1,108,917 | ||||||||||
Jumbo | 1,219,349 | 1,458,297 | 1,300,746 | 1,183,702 | 1,187,161 | |||||||||||||||
Other | 111,193 | 81,566 | 21,716 | 22,160 | 6,004 | |||||||||||||||
Mortgage lending volume | $ | 2,292,027 | $ | 2,717,588 | $ | 2,365,962 | $ | 2,177,636 | $ | 2,302,082 | ||||||||||
Mortgage loans sold: | ||||||||||||||||||||
Agency | $ | 1,036,106 | $ | 895,799 | $ | 802,329 | $ | 878,209 | $ | 1,111,504 | ||||||||||
Jumbo | 314,500 | 1,057,431 | 189,965 | 385,564 | 691,431 | |||||||||||||||
GNMA | 447,466 | 376,265 | 373,761 | 379,223 | 365,547 | |||||||||||||||
Other | 4,711 | 4,252 | 3,448 | 4,403 | 4,163 | |||||||||||||||
Mortgage loans sold | $ | 1,802,783 | $ | 2,333,747 | $ | 1,369,503 | $ | 1,647,399 | $ | 2,172,645 | ||||||||||
Unpaid principal balance of loans serviced for the Company and others | $ | 44,347,242 | $ | 44,835,934 | $ | 50,481,475 | $ | 50,746,457 | $ | 50,830,585 | ||||||||||
Average contractual servicing fee | 0.27 | % | 0.27 | % | 0.29 | % | 0.29 | % | 0.29 | % | ||||||||||
Applications | $ | 1,446,134 | $ | 1,770,099 | $ | 1,658,070 | $ | 1,335,506 | $ | 1,279,945 | ||||||||||
Rate locks | 1,422,918 | 1,571,512 | 1,564,567 | 1,251,366 | 1,236,764 | |||||||||||||||
Mortgage Lending Volume by Channel: | ||||||||||||||||||||
Retail | $ | 1,467,344 | $ | 1,728,598 | $ | 1,301,488 | $ | 1,218,614 | $ | 1,259,019 | ||||||||||
Consumer Direct | 289,832 | 411,407 | 441,155 | 385,588 | 454,449 | |||||||||||||||
Correspondent | 534,851 | 577,584 | 623,319 | 573,433 | 588,614 | |||||||||||||||
Purchase Activity (%): | ||||||||||||||||||||
Retail | 73 | % | 67 | % | 51 | % | 62 | % | 72 | % | ||||||||||
Consumer Direct | 14 | % | 12 | % | 6 | % | 4 | % | 12 | % | ||||||||||
Correspondent | 70 | % | 62 | % | 43 | % | 51 | % | 66 | % | ||||||||||
Total | 65 | % | 58 | % | 41 | % | 49 | % | 59 | % | ||||||||||