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Form 8-K EverBank Financial Corp For: Oct 29

October 29, 2014 6:07 AM


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�29, 2014
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
(Registrants 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�29, 2014, EverBank Financial Corp (the Company) issued a press release announcing its financial results for the quarter ended September�30, 2014, 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�29, 2014, 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, 2014, attached hereto as Exhibit 99.2.
The information contained in this Item�7.01, as well as the exhibit referenced herein, are 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 29, 2014, by the Company announcing its financial results for the quarter ended September 30, 2014.
99.2
Financial tables distributed and made available to investors, and posted on the Companys website, on October 29, 2014.





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:
Executive Vice President and Chief Financial Officer
Dated: October�29, 2014





EXHIBIT LIST
Exhibit�No.
��Description
99.1
Press release, dated October 29, 2014, by the Company announcing its financial results for the quarter ended September 30, 2014.
99.2
Financial tables distributed and made available to investors, and posted on the Companys website, on October 29, 2014.





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EverBank Financial Corp Announces Third Quarter 2014 Financial Results

JACKSONVILLE, FL, October 29, 2014 - EverBank Financial Corp (NYSE: EVER) announced today its financial results for the third quarter ended September�30, 2014.
"We are pleased with our third quarter performance as we delivered strong earnings, achieved robust portfolio loan growth and benefited from our deposit growth initiatives," said Robert M. Clements, chairman and chief executive officer. "We remain focused on executing our core strategies designed to enhance the long-term value of our franchise and serve the needs of our consumer and commercial banking clients."
GAAP net income available to common shareholders was $41.0 million for the third quarter 2014, compared to $32.3 million for the second quarter 2014 and $30.6 million for the third quarter 2013. GAAP diluted earnings per share were $0.33, a 27% increase from $0.26 in the second quarter 2014 and a 32% increase from $0.25 in the third quarter 2013.
Third Quarter 2014 Key Highlights
"
Return on average equity (ROE) was 10.6% for the quarter.
"
Portfolio loans held for investment (HFI) of $16.6 billion, an increase of 8% compared to the prior quarter.
"
Retained originations of $1.7 billion in the quarter; year to date retained originations of $4.3 billion.
"
Total assets of $20.5 billion, an increase of 4% compared to the prior quarter.
"
Total deposits of $14.5 billion, an increase of 4% compared to the prior quarter.
"
Tangible common equity per common share increased 8% year over year to $12.36 at September�30, 2014.
"
Strong capital position with bank tier 1 leverage ratio of 8.5% and bank total risk-based capital ratio of 14.0%.
"
Adjusted non-performing assets to total assets1 improved to 0.50% at September 30, 2014. Annualized net charge-offs to total loans and leases held for investment remained low at 0.09% for the quarter.
"During the quarter, we continued to execute on initiatives designed to deliver improved efficiency and drive operating leverage across the organization," said W. Blake Wilson, president and chief operating officer. "The investments we have made in our origination franchise are resulting in continued portfolio loan growth across our consumer and commercial businesses."
Balance Sheet
Strong Asset Growth
Total assets were $20.5 billion at September 30, 2014, an increase of $757 million, or 4%, compared to the prior quarter and an increase of $2.9 billion, or 16%, year over year. The strong sequential increase was driven by a $1.3 billion, or 8%, increase in portfolio loans HFI to $16.6 billion, resulting from both consumer and commercial loan growth, offset by an $833 million, or 49%, decrease in portfolio loans held for sale (HFS). The decrease in loans HFS resulted from the sale of fixed-rate and longer duration preferred jumbo loans during the quarter as investor demand for EverBank originated loans remained strong.


1

A reconciliation of Non-GAAP financial measures can be found in the financial tables attached hereto.





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Loans HFI for the third quarter of 2014, as compared to the second quarter of 2014 and third quarter of 2013, were comprised of:
($ in millions)
Sep 30,
2014
Jun 30,
2014
Sep 30,
2013
% Change (Q/Q)
% Change (Y/Y)
Consumer Banking:
Residential loans
$
6,007

$
5,205

$
4,623

15
�%
30
�%
Government insured pool buyouts
3,395

3,197

2,075

6
�%
64
�%
Total residential mortgages
9,402

8,402

6,699

12
�%
40
�%
Home equity lines
140

139

157

1
�%
(11
)%
Other consumer and credit card
6

5

6

8
�%
(2
)%
Total Consumer Banking
9,548

8,547

6,862

12
�%
39
�%
Commercial Banking:

Commercial real estate & other commercial
3,329

3,234

3,279

3
�%
2
�%
Mortgage warehouse finance
1,186

1,311

851

(10
)%
39
�%
Lender finance
678

625

478

8
�%
42
�%
Commercial and commercial real estate
5,193

5,170

4,608


�%
13
�%
Equipment financing receivables
1,839

1,578

1,093

17
�%
68
�%
Total Commercial Banking
7,032

6,748

5,701

4
�%
23
�%
Total Loans HFI
$
16,580

$
15,295

$
12,563

8
�%
32
�%

Total consumer banking loans HFI increased $1.0 billion, or 12%, compared to the prior quarter and $2.7 billion, or 39%, year over year, to $9.5 billion driven by strong residential mortgage loan growth. Residential loans increased $802 million, or 15%, in the quarter driven by retention of adjustable rate preferred jumbo loans.
Total commercial banking loans and leases HFI increased $284 million, or 4%, compared to the prior quarter and $1.3 billion, or 23%, year over year to $7.0 billion. Commercial real estate and other commercial loans increased $95 million, or 3%, to $3.3 billion, equipment financing receivables increased $262 million, or 17%, to $1.8 billion and lender finance increased $53 million, or 8%, to $678 million. Mortgage warehouse finance outstanding balances decreased $125 million, or 10%, compared to the prior quarter, to $1.2 billion.
Loan Origination Activities
Total originations were $3.1 billion and retained originations were $1.7 billion for the third quarter of 2014, increases of 5% and 4%, respectively, compared to the prior quarter driven by both commercial and consumer lending. Year to date, total retained originations were $4.3 billion.
Commercial originations were $754 million for the third quarter, an increase of 10% compared to the prior quarter and 115% year over year, driven by strong commercial and commercial real estate origination growth. Consumer originations were $2.3 billion for the third quarter of 2014, an increase of 3% compared to the prior quarter and a decrease of 15% year over year. Prime jumbo origination volume was $1.2 billion in the third quarter, an increase of 7% compared to the prior quarter and an increase of 55% year over year. The mix of purchase transactions for the third quarter was 59% of total originations and 72% of retail channel originations.




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The following table presents total organic loan and lease origination information by product type:
($ in millions)
Sep 30,
2014
Jun 30,
2014
Sep 30,
2013
% Change (Q/Q)
% Change (Y/Y)
Consumer originations




Conventional loans
$
1,115

$
1,125

$
1,933

(1
)%
(42
)%
Prime jumbo loans
1,187

1,108

767

7
�%
55
�%
2,302

2,233

2,700

3
�%
(15
)%
Commercial originations


Commercial & commercial real estate
361

285

174

27
�%
107
�%
Equipment financing receivables
393

399

177

(1
)%
122
�%
754

684

351

10
�%
115
�%
Total organic originations
$
3,056

$
2,917

$
3,051

5
�%

�%

Deposits
Total deposits were $14.5 billion at September�30, 2014, an increase of 4% compared to the prior quarter and an increase of 6% year over year. Commercial deposits were $2.4 billion, an increase of 31% compared to the prior quarter and 35% year over year, and represented 16% of total deposits at quarter end.
At September�30, 2014, as compared to the second quarter of 2014 and third quarter of 2013, our deposits were comprised of the following:
($ in millions)
Sep 30,
2014
Jun 30,
2014
Sep 30,
2013
% Change (Q/Q)
% Change (Y/Y)
Noninterest-bearing demand
$
1,084

$
1,056

$
1,366

3
�%
(21
)%
Interest-bearing demand
2,941

2,802

2,999

5
�%
(2
)%
Savings and money market accounts
5,160

4,864

5,186

6
�%
(1
)%
Global market-based accounts
910

989

1,041

(8
)%
(13
)%
Time, excluding market-based
4,379

4,164

3,036

5
�%
44
�%
Total deposits
$
14,474

$
13,875

$
13,628

4
�%
6
�%


Consumer deposits
$
12,088

$
12,050

$
11,864


�%
2
�%
Commercial deposits
2,386

1,824

1,764

31
�%
35
�%
Total deposits
$
14,474

$
13,875

$
13,628

4
�%
6
�%
Total other borrowings were $4.0 billion at September�30, 2014, compared to $3.8 billion in the prior quarter driven by increased Federal Home Loan Bank borrowings.
Capital Strength
Total shareholders' equity was $1.7 billion at September�30, 2014, an increase of 2% quarter over quarter and 7% year over year. The banks Tier 1 leverage ratio was 8.5% and the total risk-based capital ratio was 14.0% at September�30, 2014. As a result, the bank is considered "well-capitalized" under all applicable regulatory guidelines. Our common equity Tier 1 capital ratio at September 30, 2014 was 12.0% and our estimate of the fully phased-in Basel III common equity Tier 1 capital ratio was between 10.25% and 10.75%.




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Credit Quality
Our adjusted non-performing assets were 0.50% of total assets at September�30, 2014, compared to 0.51% for the prior quarter and 1.01% at September�30, 2013. Net charge-offs during the third quarter of 2014 were $4 million, a decrease of $3 million, or 48%, compared to the prior quarter. On an annualized basis, net charge-offs were 0.09% of total average loans and leases held for investment, compared to 0.19% for the prior quarter and 0.30% for the third quarter of 2013.
Income Statement Highlights
Revenue
Revenue for the third quarter of 2014 was $235 million, an increase of $5 million, or 2%, from $229 million in the second quarter of 2014. The increase was driven by higher net interest income resulting from increased interest-earning assets.
Net Interest Income
For the third quarter of 2014, net interest income was $146 million, an increase of $6 million, or 4%, compared to the prior quarter. This increase resulted from a $1.7 billion, or 10%, increase in average interest-earning assets compared to the prior quarter, driven by higher residential mortgage loans HFI and loans HFS in addition to higher commercial loans and leases HFI, partially offset by higher average interest-bearing liabilities.
Net interest margin decreased to 3.02% for the third quarter of 2014 from 3.22% in the second quarter of 2014. The interest-earning asset yield declined 0.17% to 3.95%, driven by declines in both loans HFS and HFI yields. Partially offsetting this decline was a reduction in cost of total interest-bearing liabilities driven by lower cost of borrowings.
Noninterest Income
Noninterest income for the third quarter of 2014 was $88 million, a decrease of $1 million, or 1%, compared to the prior quarter. Gain on sale of loans was $48 million, flat compared to the prior quarter, driven by our loans held for sale activity including loan sales with an unpaid principal balance (UPB) of $2.2 billion. Net loan servicing income declined $2 million compared to the prior quarter driven by a $5 million decrease in loan servicing fee income resulting from the transfer of our default servicing UPB to Green Tree Servicing LLC in May 2014, partially offset by a $3 million valuation allowance recovery in the quarter.
Noninterest Expense
Noninterest expense for the third quarter of 2014 was $158 million, a decrease of $10 million, or 6%, compared to the prior quarter. Salaries, commissions and employee benefits were $91 million, a decrease of $4 million, or 5%, compared to the prior quarter driven by a full quarter benefit from the transfer of our default servicing platform in May 2014. General and administrative expense was $43 million, a decrease of $4 million, or 8%, compared to the prior quarter driven by a $2 million decrease in credit-related expenses and a $2 million decrease in other general and administrative expenses.
EverBank's efficiency ratio was 67%, compared to 73% in the prior quarter and 80% in the third quarter 2013.
Year to date, noninterest expense was $486 million, a 25% decrease from September 30, 2013. We continue to expect noninterest expense for the full year 2014 of $650 million.
Income Tax Expense
Our effective tax rate for the third quarter of 2014 was 38%, which was the same for the prior quarter and for the third quarter of 2013.




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Segment Analysis for the Third Quarter of 2014 ����
"
Consumer Banking pre-tax income was $49 million, a 14% increase compared to $43 million in the prior quarter driven by a 1% increase in net interest income after provision and an 8% decrease in noninterest expense, offset by a 6% decrease in noninterest income.
"
Commercial Banking pre-tax income was $47 million, a 20% increase compared to $39 million in the prior quarter, driven by an 8% increase in net interest income after provision and a 38% increase in noninterest income, offset by a 1% increase in noninterest expense.
"
Corporate Services had a pre-tax loss of $26 million, a 1% decrease compared to $26 million in the prior quarter driven by a 2% decline in noninterest expense.
Dividends
On October 23, 2014, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per common share, payable on November 24, 2014, to stockholders of record as of November 12, 2014. Also on October 23, 2014, the Company's Board of Directors declared a quarterly cash dividend of $421.875, payable on January 5, 2015, for each share of 6.75% Series A Non-Cumulative Perpetual Preferred Stock held as of December 19, 2014.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. Eastern Time on Wednesday, October 29, 2014 to discuss its third quarter 2014 results. The dial-in number for the conference call is 1-866-270-1533 and the international dial-in number is 1-412-317-0797, passcode is 10054361. A live webcast of the conference call will also be available on the investor relations page of the Company's website at www.abouteverbank.com/ir.
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 $20.5 billion in assets and $14.5 billion in deposits as of September�30, 2014. 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 www.abouteverbank.com/ir.����
Media
Investor Relations
Michael Cosgrove
Scott Verlander
904.623.2029
904.623.8455






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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 Companys asset growth and earnings, industry, managements beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Companys 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 Corps filings with the Securities and Exchange Commission, including but not limited to, the risks described under the headings Risk Factors and Managements 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.





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EverBank Financial Corp and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
September�30, 2014
December�31, 2013
Assets
Cash and due from banks
$
57,835

$
46,175

Interest-bearing deposits in banks
306,265

801,603

Total cash and cash equivalents
364,100

847,778

Investment securities:
Available for sale, at fair value
987,345

1,115,627

Held to maturity (fair value of $115,529 and $107,921 as of September 30, 2014 and December�31, 2013, respectively)
113,751

107,312

Other investments
194,314

128,063

Total investment securities
1,295,410

1,351,002

Loans held for sale (includes $768,909 and $672,371 carried at fair value as of September 30, 2014 and December�31, 2013, respectively)
871,736

791,382

Loans and leases held for investment:
Loans and leases held for investment, net of unearned income
16,579,951

13,252,724

Allowance for loan and lease losses
(57,245
)
(63,690
)
Total loans and leases held for investment, net
16,522,706

13,189,034

Equipment under operating leases, net
15,542

28,126

Mortgage servicing rights (MSR), net
441,243

506,680

Deferred income taxes, net
3,162

51,375

Premises and equipment, net
55,500

60,733

Other assets
940,943

814,874

Total Assets
$
20,510,342

$
17,640,984

Liabilities
Deposits:
Noninterest-bearing
$
1,084,400

$
1,076,631

Interest-bearing
13,389,105

12,184,709

Total deposits
14,473,505

13,261,340

Other borrowings
3,977,000

2,377,000

Trust preferred securities
103,750

103,750

Accounts payable and accrued liabilities
235,064

277,881

Total Liabilities
18,789,319

16,019,971

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, 2014 and December 31, 2013)
150,000

150,000

Common Stock, $0.01 par value (500,000,000 shares authorized; 122,994,480 and 122,626,315 issued and outstanding at September 30, 2014 and December�31, 2013, respectively)
1,230

1,226

Additional paid-in capital
840,667

832,351

Retained earnings
780,234

690,051

Accumulated other comprehensive income (loss) (AOCI)
(51,108
)
(52,615
)
Total Shareholders Equity
1,721,023

1,621,013

Total Liabilities and Shareholders Equity
$
20,510,342

$
17,640,984






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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,
2014
2013
2014
2013
Interest Income
Interest and fees on loans and leases
$
180,913

$
170,110

$
509,708

$
516,619

Interest and dividends on investment securities
9,627

13,376

29,276

44,439

Other interest income
116

493

388

1,108

Total Interest Income
190,656

183,979

539,372

562,166

Interest Expense
Deposits
26,755

24,437

72,804

77,827

Other borrowings
17,565

20,686

49,197

60,450

Total Interest Expense
44,320

45,123

122,001

138,277

Net Interest Income
146,336

138,856

417,371

423,889

Provision for Loan and Lease Losses
6,735

3,068

15,929

5,016

Net Interest Income after Provision for Loan and Lease Losses
139,601

135,788

401,442

418,873

Noninterest Income
Loan servicing fee income
35,900

50,713

122,934

140,068

Amortization of mortgage servicing rights
(19,572
)
(30,438
)
(59,170
)
(101,461
)
Recovery (impairment) of mortgage servicing rights
3,071

35,132

8,012

80,259

Net loan servicing income
19,399

55,407

71,776

118,866

Gain on sale of loans
47,920

51,397

129,474

209,545

Loan production revenue
5,783

10,514

15,709

30,066

Deposit fee income
3,828

4,952

11,696

15,167

Other lease income
3,910

6,506

12,621

19,388

Other
7,374

14,793

20,790

30,650

Total Noninterest Income
88,214

143,569

262,066

423,682

Noninterest Expense
Salaries, commissions and other employee benefits expense
90,781

111,144

283,734

340,080

Equipment expense
16,623

20,609

52,616

61,168

Occupancy expense
7,209

8,675

23,166

23,606

General and administrative expense
43,140

85,268

126,769

226,198

Total Noninterest Expense
157,753

225,696

486,285

651,052

Income before Provision for Income Taxes
70,062

53,661

177,223

191,503

Provision for Income Taxes
26,543

20,511

67,162

73,214

Net Income
$
43,519

$
33,150

$
110,061

$
118,289

Less: Net Income Allocated to Preferred Stock
(2,532
)
(2,532
)
(7,594
)
(7,594
)
Net Income Allocated to Common Shareholders
$
40,987

$
30,618

$
102,467

$
110,695

Basic Earnings Per Common Share
$
0.33

$
0.25

$
0.83

$
0.91

Diluted Earnings Per Common Share
$
0.33

$
0.25

$
0.82

$
0.89

Dividends Declared Per Common Share
$
0.04

$
0.03

$
0.10

$
0.07







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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 Non-Performing Asset Ratio, Tangible Shareholders Equity, Tangible Common Shareholders' Equity and Tangible Assets are non-GAAP financial measures. The Companys management uses these measures to evaluate the underlying performance and efficiency of its operations. The Companys management believes these non-GAAP measures provide meaningful additional information about the operating performance of the Companys 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 Companys management believes that certain of these non-GAAP measures represent a consistent benchmark against which to evaluate the Companys 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 Companys 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
Tangible Equity, Tangible Common Equity and Tangible Assets
(dollars in thousands)
September�30, 2014
June�30, 2014
March�31, 2014
December�31, 2013
September�30, 2013
Shareholders equity
$
1,721,023

$
1,679,448

$
1,647,639

$
1,621,013

$
1,602,913

Less:
Goodwill
46,859

46,859

46,859

46,859

46,859

Intangible assets
4,232

4,759

5,286

5,813

6,340

Tangible equity
1,669,932

1,627,830

1,595,494

1,568,341

1,549,714

Less:
Perpetual preferred stock
150,000

150,000

150,000

150,000

150,000

Tangible common equity
$
1,519,932

$
1,477,830

$
1,445,494

$
1,418,341

$
1,399,714

Total assets
$
20,510,342

$
19,753,820

$
17,630,948

$
17,640,984

$
17,612,089

Less:
Goodwill
46,859

46,859

46,859

46,859

46,859

Intangible assets
4,232

4,759

5,286

5,813

6,340

Tangible assets
$
20,459,251

$
19,702,202

$
17,578,803

$
17,588,312

$
17,558,890





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EverBank Financial Corp and Subsidiaries
Regulatory Capital (bank level)
(dollars in thousands)
September�30, 2014
June�30, 2014
March�31, 2014
December�31, 2013
September�30, 2013
Shareholders equity
$
1,769,205

$
1,714,454

$
1,686,414

$
1,662,164

$
1,648,152

Less:
Goodwill and other intangibles
(49,957
)
(50,328
)
(50,700
)
(51,072
)
(51,436
)
Disallowed servicing asset
(23,524
)
(29,028
)
(26,419
)
(20,469
)
(39,658
)
Disallowed deferred tax asset


(61,737
)
(62,682
)
(63,749
)
(64,462
)
Add:
Accumulated losses on securities and cash flow hedges
49,516

52,121

51,507

50,608

54,392

Tier 1 capital
1,745,240

1,625,482

1,598,120

1,577,482

1,546,988

Add:
Allowance for loan and lease losses
57,245

56,728

62,969

63,690

66,991

Total regulatory capital
$
1,802,485

$
1,682,210

$
1,661,089

$
1,641,172

$
1,613,979

Adjusted total assets
$
20,480,723

$
19,660,793

$
17,539,708

$
17,554,236

$
17,510,528

Risk-weighted assets
12,869,352

12,579,476

11,597,320

11,467,411

11,120,048

Regulatory Capital (EFC consolidated)
(dollars in thousands)
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Shareholders equity
$
1,721,023

$
1,679,448

$
1,647,639

$
1,621,013

$
1,602,913

Less:
Preferred stock
(150,000
)
(150,000
)
(150,000
)
(150,000
)
(150,000
)
Goodwill and other intangibles
(49,957
)
(50,328
)
(50,700
)
(51,072
)
(51,436
)
Disallowed servicing asset
(23,524
)
(29,028
)
(26,419
)
(20,469
)
(39,658
)
Disallowed deferred tax asset


(61,737
)
(62,682
)
(63,749
)
(64,462
)
Add:
Accumulated losses on securities and cash flow hedges
51,108

53,936

53,647

52,615

56,879

Common tier 1 capital
$
1,548,650

$
1,442,291

$
1,411,485

$
1,388,338

$
1,354,236

Risk-weighted assets
$
12,875,007

12,583,537

11,600,258

11,469,483

11,120,445







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EverBank Financial Corp and Subsidiaries
Non-Performing Assets(1)
(dollars in thousands)
September�30, 2014
June�30, 2014
March�31, 2014
December�31, 2013
September�30, 2013
Non-accrual loans and leases:
Consumer Banking:
Residential mortgages
$
23,067

$
22,212

$
47,835

$
59,526

$
60,066

Home equity lines
2,152

1,903

3,462

3,270

4,164

Other consumer and credit card
31

20

33

18

15

Commercial Banking:
Commercial and commercial real estate
46,819

44,172

23,884

18,569

76,662

Equipment financing receivables
6,803

6,475

5,446

4,527

4,171

Total non-accrual loans and leases
78,872

74,782

80,660

85,910

145,078

Accruing loans 90 days or more past due










Total non-performing loans (NPL)
78,872

74,782

80,660

85,910

145,078

Other real estate owned (OREO)
24,501

25,530

29,333

29,034

32,108

Total non-performing assets (NPA)
103,373

100,312

109,993

114,944

177,186

Troubled debt restructurings (TDR) less than 90 days past due
16,547

16,687

73,455

76,913

79,664

Total NPA and TDR(1)
$
119,920

$
116,999

$
183,448

$
191,857

$
256,850

Total NPA and TDR
$
119,920

$
116,999

$
183,448

$
191,857

$
256,850

Government insured 90 days or more past due still accruing
2,632,744

2,424,166

1,021,276

1,039,541

1,147,795

Loans accounted for under ASC 310-30:
90 days or more past due
10,519

23,159

9,915

10,083

45,104

OREO








21,240

Total regulatory NPA and TDR
$
2,763,183

$
2,564,324

$
1,214,639

$
1,241,481

$
1,470,989

Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30: (1)
NPL to total loans
0.45
%
0.44
%
0.56
%
0.61
%
1.07
%
NPA to total assets
0.50
%
0.51
%
0.62
%
0.65
%
1.01
%
NPA and TDR to total assets
0.58
%
0.59
%
1.04
%
1.09
%
1.46
%
Credit quality ratios including government insured loans and loans accounted for under ASC�310-30:
NPL to total loans
15.65
%
14.89
%
7.72
%
8.12
%
9.87
%
NPA to total assets
13.39
%
12.90
%
6.47
%
6.60
%
7.90
%
NPA and TDR to total assets
13.47
%
12.98
%
6.89
%
7.04
%
8.35
%
(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, 2014




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�9d
Reserves for Repurchase Obligations for Loans Serviced
Table�10
Reconciliation of Non-GAAP Measures
Table�10a
Adjusted Net Income
Table�10b
Tangible Equity, Tangible Common Equity and Tangible Assets
Table�10c
Regulatory Capital (bank level)
Table 10d
Regulatory Capital (EFC consolidated)
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,
2014
Jun 30,
2014
Sep 30,
2013
Sep 30,
2014
Sep 30,
2013
Operating Results:
Total revenue(1)
$
234,550

$
229,459

$
282,425

$
679,437

$
847,571

Net interest income
146,336

140,191

138,856

417,371

423,889

Provision for loan and lease losses
6,735

6,123

3,068

15,929

5,016

Noninterest income
88,214

89,268

143,569

262,066

423,682

Noninterest expense
157,753

167,320

225,696

486,285

651,052

Net income
43,519

34,782

33,150

110,061

118,289

Net earnings per common share, basic
0.33

0.26

0.25

0.83

0.91

Net earnings per common share, diluted
0.33

0.26

0.25

0.82

0.89

Performance Metrics:
Yield on interest-earning assets
3.95
%
4.12
%
4.32
%
4.12
%
4.40
%
Cost of interest-bearing liabilities
1.01
%
1.02
%
1.18
%
1.03
%
1.22
%
Net interest margin
3.02
%
3.22
%
3.24
%
3.20
%
3.33
%
Return on average assets
0.85
%
0.74
%
0.72
%
0.78
%
0.86
%
Return on average risk-weighted assets(2)
1.37
%
1.15
%
1.16
%
1.21
%
1.39
%
Return on average equity(3)
10.6
%
8.6
%
8.7
%
9.0
%
10.8
%
Efficiency ratio(4)
67
%
73
%
80
%
72
%
77
%
Loans and leases held for investment as a percentage of deposits
115
%
110
%
92
%
115
%
92
%
Credit Quality Ratios:
Adjusted non-performing assets as a percentage of total assets(5)
0.50
%
0.51
%
1.01
%
0.50
%
1.01
%
Net charge-offs to average loans and leases held for investment
0.09
%
0.19
%
0.30
%
0.13
%
0.22
%
ALLL as a percentage of loans and leases held for investment
0.35
%
0.37
%
0.53
%
0.35
%
0.53
%
ALLL as a percentage of loans and leases held for investment (excluding ASC 310-30)
0.35
%
0.34
%
0.44
%
0.35
%
0.44
%
Government insured pool buyouts as a percentage of loans and leases held for investment
20
%
21
%
17
%
20
%
17
%
Capital:
Common equity tier 1 ratio (EFC consolidated, Basel I)(6)
12.0
%
11.5
%
12.2
%
12.0
%
12.2
%
Tier 1 leverage ratio (bank level)(7)
8.5
%
8.3
%
8.8
%
8.5
%
8.8
%
Total risk-based capital ratio (bank level)(8)
14.0
%
13.4
%
14.5
%
14.0
%
14.5
%
Tangible common equity per common share(9)
$
12.36

$
12.02

$
11.42

$
12.36

$
11.42

Consumer Banking Metrics:
Unpaid principal balance of loans originated
$
2,302,082

$
2,232,872

$
2,700,159

$
6,235,450

$
8,853,846

Jumbo residential mortgage loans originated
1,187,161

1,108,188

767,004

3,103,487

2,582,975

Unpaid principal balance of loans sold
2,172,645

1,531,713

3,164,457

4,914,113

8,730,352

Unpaid principal balance of loans serviced for the Company and others
50,830,585

50,790,378

61,274,075

50,830,585

61,274,075

Consumer Banking loans as a percentage of loans and leases held for investment
58
%
56
%
55
%
58
%
55
%
Consumer deposits(10)
$
12,087,775

$
12,050,198

$
11,864,123

$
12,087,775

$
11,864,123

Commercial Banking Metrics:
Loan and lease originations:
Commercial and commercial real estate
$
361,387

$
285,425

$
174,353

$
804,825

$
757,895

Equipment financing receivables
392,790

398,519

177,179

958,799

514,758

Commercial Banking loans as a percentage of loans and leases held for investment
42
%
44
%
45
%
42
%
45
%
Commercial deposits(10)
$
2,385,730

$
1,824,477

$
1,763,553

$
2,385,730

$
1,763,553

Market Price Per Share of Common Stock:
Closing
$
17.66

$
20.16

$
14.98

$
17.66

$
14.98

High
20.50

20.61

16.80

20.61

17.29

Low
17.66

18.08

13.95

16.40

12.75

Period End Balance Sheet Data:
Loans and leases held for investment, net
$
16,522,706

$
15,237,916

$
12,495,976

$
16,522,706

$
12,495,976

Total assets
20,510,342

19,753,820

17,612,089

20,510,342

17,612,089

Deposits
14,473,505

13,874,675

13,627,676

14,473,505

13,627,676

Total liabilities
18,789,319

18,074,372

16,009,176

18,789,319

16,009,176

Total shareholders equity
1,721,023

1,679,448

1,602,913

1,721,023

1,602,913

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)
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.
(3)
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).
(4)
The efficiency ratio represents noninterest expense as a percentage of total revenues. We use the efficiency ratio to measure noninterest costs expended to generate a dollar of revenue.
(5)
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.
(6)
The common equity tier 1 ratio is calculated as common tier 1 capital divided by risk-weighted assets. Common tier 1 capital is calculated as tier 1 capital less the Series A 6.75% Non-Cumulative Perpetual Preferred Stock. 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.
(7)
Calculated as Tier 1 capital divided by adjusted total assets. Total assets are adjusted for goodwill, deferred tax assets disallowed from Tier 1 capital and other regulatory adjustments. For more detailed information on regulatory capital (bank level), see Table 10c.
(8)
Calculated as total risk-based capital divided by total risk-weighted assets. Risk-based capital includes Tier 1 capital, allowance for loan and lease losses, subject to limitations, and other regulatory adjustments. 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 more detailed information on regulatory capital (bank level), see Table 10c.
(9)
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 10b). 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.
(10)
The September 30, 2014 values reflect a reclassification of $157,355 of deposits from consumer deposits to commercial deposits. Prior periods were not adjusted.







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,
2014
Jun 30,
2014
Sep 30,
2013
Sep 30,
2014
Sep 30,
2013
Interest Income
Interest and fees on loans and leases
$
180,913

$
170,325

$
170,110

$
509,708

$
516,619

Interest and dividends on investment securities
9,627

9,818

13,376

29,276

44,439

Other interest income
116

110

493

388

1,108

Total interest income
190,656

180,253

183,979

539,372

562,166

Interest Expense
Deposits
26,755

23,442

24,437

72,804

77,827

Other borrowings
17,565

16,620

20,686

49,197

60,450

Total interest expense
44,320

40,062

45,123

122,001

138,277

Net Interest Income
146,336

140,191

138,856

417,371

423,889

Provision for loan and lease losses
6,735

6,123

3,068

15,929

5,016

Net Interest Income after Provision for Loan and Lease Losses
139,601

134,068

135,788

401,442

418,873

Noninterest Income
Loan servicing fee income
35,900

40,417

50,713

122,934

140,068

Amortization of mortgage servicing rights
(19,572
)
(19,026
)
(30,438
)
(59,170
)
(101,461
)
Recovery (impairment) of mortgage servicing rights
3,071



35,132

8,012

80,259

Net loan servicing income
19,399

21,391

55,407

71,776

118,866

Gain on sale of loans
47,920

47,703

51,397

129,474

209,545

Loan production revenue
5,783

5,347

10,514

15,709

30,066

Deposit fee income
3,828

4,533

4,952

11,696

15,167

Other lease income
3,910

3,806

6,506

12,621

19,388

Other
7,374

6,488

14,793

20,790

30,650

Total noninterest income
88,214

89,268

143,569

262,066

423,682

Noninterest Expense
Salaries, commissions and other employee benefits expense
90,781

95,259

111,144

283,734

340,080

Equipment expense
16,623

17,345

20,609

52,616

61,168

Occupancy expense
7,209

7,885

8,675

23,166

23,606

General and administrative expense
43,140

46,831

85,268

126,769

226,198

Total noninterest expense
157,753

167,320

225,696

486,285

651,052

Income before Income Taxes
70,062

56,016

53,661

177,223

191,503

Provision for Income Taxes
26,543

21,234

20,511

67,162

73,214

Net Income
$
43,519

$
34,782

$
33,150

$
110,061

$
118,289

Net Income Allocated to Preferred Stock
2,532

2,531

2,532

7,594

7,594

Net Income Allocated to Common Shareholders
$
40,987

$
32,251

$
30,618

$
102,467

$
110,695

Net Earnings per Common Share, Basic
$
0.33

$
0.26

$
0.25

$
0.83

$
0.91

Net Earnings per Common Share, Diluted
$
0.33

$
0.26

$
0.25

$
0.82

$
0.89

Dividends Declared per Common Share
$
0.04

$
0.03

$
0.03

$
0.10

$
0.07

Dividend payout ratio(1)
12.12
%
11.54
%
12.00
%
12.05
%
7.69
%
Weighted Average Common Shares Outstanding
(units in thousands)
Basic
122,950

122,840

122,509

122,826

122,128

Diluted
125,473

125,389

124,124

125,292

123,821


(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,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Assets
Cash and due from banks
$
57,835

$
65,433

$
60,587

$
46,175

$
109,471

Interest-bearing deposits in banks
306,265

104,563

439,242

801,603

978,464

Total cash and cash equivalents
364,100

169,996

499,829

847,778

1,087,935

Investment securities:
Available for sale, at fair value
987,345

1,029,667

1,118,646

1,115,627

1,205,340

Held to maturity
113,751

118,614

116,984

107,312

109,245

Other investments
194,314

186,818

122,918

128,063

106,450

Total investment securities
1,295,410

1,335,099

1,358,548

1,351,002

1,421,035

Loans held for sale
871,736

1,704,406

596,729

791,382

1,059,947

Loans and leases held for investment:
Loans and leases held for investment, net of unearned income
16,579,951

15,294,644

13,864,109

13,252,724

12,562,967

Allowance for loan and lease losses
(57,245
)
(56,728
)
(62,969
)
(63,690
)
(66,991
)
Total loans and leases held for investment, net
16,522,706

15,237,916

13,801,140

13,189,034

12,495,976

Equipment under operating leases, net
15,542

18,460

24,170

28,126

34,918

Mortgage servicing rights (MSR), net
441,243

437,595

446,493

506,680

501,494

Deferred income taxes, net
3,162

54,351

42,140

51,375

92,253

Premises and equipment, net
55,500

54,844

60,654

60,733

67,282

Other assets
940,943

741,153

801,245

814,874

851,249

Total Assets
$
20,510,342

$
19,753,820

$
17,630,948

$
17,640,984

$
17,612,089

Liabilities
Deposits:
Noninterest-bearing
$
1,084,400

$
1,055,556

$
1,054,796

$
1,076,631

$
1,365,655

Interest-bearing
13,389,105

12,819,119

12,233,615

12,184,709

12,262,021

Total deposits
14,473,505

13,874,675

13,288,411

13,261,340

13,627,676

Other borrowings
3,977,000

3,797,000

2,377,000

2,377,000

1,872,700

Trust preferred securities
103,750

103,750

103,750

103,750

103,750

Accounts payable and accrued liabilities
235,064

298,947

214,148

277,881

405,050

Total Liabilities
18,789,319

18,074,372

15,983,309

16,019,971

16,009,176

Shareholders Equity
Series A 6.75% Non-Cumulative Perpetual Preferred Stock
150,000

150,000

150,000

150,000

150,000

Common Stock
1,230

1,229

1,227

1,226

1,225

Additional paid-in capital
840,667

837,991

834,460

832,351

830,758

Retained earnings
780,234

744,164

715,599

690,051

677,809

Accumulated other comprehensive loss
(51,108
)
(53,936
)
(53,647
)
(52,615
)
(56,879
)
Total Shareholders Equity
1,721,023

1,679,448

1,647,639

1,621,013

1,602,913

Total Liabilities and Shareholders Equity
$
20,510,342

$
19,753,820

$
17,630,948

$
17,640,984

$
17,612,089






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, 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

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

Three Months Ended June 30, 2014
Net interest income
$
79,994

$
61,780

$
(1,583
)
$


$
140,191

Provision for loan and lease losses
1,738

4,385





6,123

Net interest income after provision for loan and lease losses
78,256

57,395

(1,583
)


134,068

Noninterest income
79,680

9,302

286



89,268

Noninterest expense
115,100

27,619

24,601



167,320

Income (loss) before income tax
$
42,836

$
39,078

$
(25,898
)
$


$
56,016

Total assets as of June 30, 2014
$
12,864,427

$
6,973,288

$
186,630

$
(270,525
)
$
19,753,820

Total deposits as of June 30, 2014
12,050,198

1,824,477





13,874,675

Three Months Ended September 30, 2013
Net interest income
$
76,011

$
64,423

$
(1,578
)
$


$
138,856

Provision for loan and lease losses
1,918

1,150





3,068

Net interest income after provision for loan and lease losses
74,093

63,273

(1,578
)


135,788

Noninterest income
131,063

12,353

153



143,569

Noninterest expense
167,907

36,602

21,187



225,696

Income (loss) before income tax
$
37,249

$
39,024

$
(22,612
)
$


$
53,661

Total assets as of September 30, 2013
$
11,578,876

$
6,029,290

$
213,745

$
(209,822
)
$
17,612,089

Total deposits as of September 30, 2013
11,864,123

1,763,553





13,627,676







EverBank Financial Corp and Subsidiaries
Average Balances and Interest Rates(1) (2) (3)
Table 5
Three Months Ended September 30, 2014
Three Months Ended June 30, 2014
Three Months Ended September 30, 2013
(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
$
184,449

$
116

0.25
%
$
171,693

$
110

0.26
%
$
878,078

$
493

0.22
%
Investments
1,322,842

9,627

2.90
%
1,371,621

9,818

2.86
%
1,619,621

13,376

3.30
%
Loans held for sale
1,866,562

15,740

3.37
%
1,159,638

11,293

3.90
%
1,932,075

18,207

3.77
%
Loans and leases held for investment:
Consumer Banking:
Residential mortgages:
Residential
5,261,448

45,245

3.44
%
5,585,545

48,582

3.48
%
4,244,971

36,588

3.45
%
Government insured pool buyouts
3,738,326

36,102

3.86
%
2,842,108

31,168

4.39
%
2,235,466

31,018

5.55
%
Residential mortgages
8,999,774

81,347

3.62
%
8,427,653

79,750

3.79
%
6,480,437

67,606

4.17
%
Home equity lines
137,993

2,074

5.96
%
143,169

1,444

4.05
%
162,194

1,708

4.18
%
Other consumer and credit card
4,945

108

8.70
%
5,470

184

13.49
%
6,241

263

16.72
%
Commercial Banking:
Commercial and commercial real estate:
Commercial real estate and other commercial
3,263,260

46,156

5.62
%
3,234,109

45,196

5.57
%
3,346,321

52,058

6.18
%
Mortgage warehouse finance
1,191,602

8,822

2.90
%
1,022,151

7,329

2.84
%
1,062,274

8,496

3.13
%
Lender finance
630,336

5,677

3.52
%
587,673

5,824

3.92
%
456,075

4,220

3.62
%
Commercial and commercial real estate
5,085,198

60,655

4.72
%
4,843,933

58,349

4.79
%
4,864,670

64,774

5.28
%
Equipment financing receivables
1,625,813

20,989

5.16
%
1,363,727

19,305

5.66
%
1,041,040

17,552

6.74
%
Total loans and leases held for investment
15,853,723

165,173

4.15
%
14,783,952

159,032

4.29
%
12,554,582

151,903

4.82
%
Total interest-earning assets
19,227,576

$
190,656

3.95
%
17,486,904

$
180,253

4.12
%
16,984,356

$
183,979

4.32
%
Noninterest-earning assets
1,206,336

1,258,917

1,449,836

Total assets
$
20,433,912

$
18,745,821

$
18,434,192

Liabilities and Shareholders Equity:
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$
2,821,448

$
4,382

0.62
%
$
2,847,544

$
4,212

0.59
%
$
3,055,881

$
5,025

0.65
%
Market-based money market accounts
403,670

621

0.61
%
415,544

632

0.61
%
416,145

672

0.64
%
Savings and money market accounts, excluding market-based
5,077,685

8,069

0.63
%
4,904,879

7,449

0.61
%
5,214,061

8,362

0.64
%
Market-based time
561,292

1,171

0.83
%
576,828

1,125

0.78
%
621,675

1,244

0.79
%
Time, excluding market-based
4,501,948

12,512

1.10
%
3,507,409

10,024

1.15
%
3,082,451

9,134

1.18
%
Total deposits
13,366,043

26,755

0.79
%
12,252,204

23,442

0.77
%
12,390,213

24,437

0.78
%
Borrowings:
Trust preferred securities
103,750

1,661

6.35
%
103,750

1,644

6.35
%
103,750

1,649

6.31
%
FHLB advances
3,808,326

15,904

1.63
%
3,362,011

14,976

1.76
%
2,511,830

19,037

2.97
%
Other
24,000



0.00
%
24,000



0.00
%
13



0.00
%
Total borrowings
3,936,076

17,565

1.75
%
3,489,761

16,620

1.89
%
2,615,593

20,686

3.10
%
Total interest-bearing liabilities
17,302,119

44,320

1.01
%
15,741,965

40,062

1.02
%
15,005,806

45,123

1.18
%
Noninterest-bearing demand deposits
1,173,181

1,149,025

1,515,123

Other noninterest-bearing liabilities
259,794

195,482

351,762

Total liabilities
18,735,094

17,086,472

16,872,691

Total shareholders equity
1,698,818

1,659,349

1,561,501

Total liabilities and shareholders equity
$
20,433,912

$
18,745,821

$
18,434,192

Net interest income/spread
$
146,336

2.94
%
$
140,191

3.10
%
$
138,856

3.14
%
Net interest margin
3.02
%
3.22
%
3.24
%
Memo: Total deposits including noninterest-bearing
$
14,539,224

$
26,755

0.73
%
$
13,401,229

$
23,442

0.70
%
$
13,905,336

$
24,437

0.70
%

(1)
The average balances are principally daily averages, and, for loans, include both performing and non-performing balances.
(2)
Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments.
(3)
All interest income was fully taxable for all periods presented.







EverBank Financial Corp and Subsidiaries
Loans and Leases Held for Investment
Table�6a����

(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
Consumer Banking:
Residential mortgages:
Residential
$
6,006,987

$
5,205,043

$
5,688,053

$
5,153,106

$
4,623,219

Government insured pool buyouts
3,395,095

3,197,348

1,911,773

1,891,637

2,075,395

Residential mortgages
9,402,082

8,402,391

7,599,826

7,044,743

6,698,614

Home equity lines
139,589

138,886

147,086

151,916

156,977

Other consumer and credit card
5,894

5,473

5,427

5,154

6,023

Total Consumer Banking
9,547,565

8,546,750

7,752,339

7,201,813

6,861,614

Commercial Banking:
Commercial and commercial real estate:
Commercial real estate and other commercial
3,328,979

3,234,423

3,243,654

3,276,130

3,278,837

Mortgage warehouse finance
1,185,591

1,310,611

911,223

944,219

851,153

Lender finance
678,400

625,335

664,143

592,621

478,497

Commercial and commercial real estate
5,192,970

5,170,369

4,819,020

4,812,970

4,608,487

Equipment financing receivables
1,839,416

1,577,525

1,292,750

1,237,941

1,092,866

Total Commercial Banking
7,032,386

6,747,894

6,111,770

6,050,911

5,701,353

Loans and leases held for investment, net of unearned income
16,579,951

15,294,644

13,864,109

13,252,724

12,562,967

Allowance for loan and lease losses
(57,245
)
(56,728
)
(62,969
)
(63,690
)
(66,991
)
Total loans and leases held for investment, net
$
16,522,706

$
15,237,916

$
13,801,140

$
13,189,034

$
12,495,976

The balances presented above include:
Net purchased loan and lease discounts
$
54,510

$
53,134

$
79,905

$
102,416

$
120,321

Net deferred loan and lease origination costs
$
84,832

$
69,849

$
64,688

$
54,107

$
45,315

Deposits
Table�6b����

(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
Noninterest-bearing demand
$
1,084,400

$
1,055,556

$
1,054,796

$
1,076,631

$
1,365,655

Interest-bearing demand
2,941,171

2,801,811

2,961,831

3,006,401

2,998,836

Market-based money market accounts
397,617

411,633

413,017

413,137

413,427

Savings and money market accounts, excluding market-based
5,159,642

4,864,459

5,023,585

5,110,992

5,186,243

Market-based time
511,923

577,247

583,740

597,858

627,889

Time, excluding market-based
4,378,752

4,163,969

3,251,442

3,056,321

3,035,626

Total deposits
$
14,473,505

$
13,874,675

$
13,288,411

$
13,261,340

$
13,627,676

General and Administrative Expense
Table 7

Three Months Ended
Nine Months Ended
(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
September�30,
2014
September�30,
2013
Legal and professional fees, excluding consent order expense
$
7,061

$
7,475

$
7,116

$
9,238

$
7,158

$
21,652

$
21,544

Credit-related expenses
6,356

8,765

7,607

17,168

11,856

22,728

32,675

FDIC premium assessment and other agency fees
6,684

7,199

(443
)
6,089

6,708

13,440

28,768

Advertising and marketing expense
6,175

4,932

4,431

5,984

6,516

15,538

23,217

Subservicing expense
3,673

2,482







6,155



Consent order expense
1,634

2,099

756

7,641

32,475

4,489

64,698

Other
11,557

13,879

17,331

13,177

20,555

42,767

55,296

Total general and administrative expense
$
43,140

$
46,831

$
36,798

$
59,297

$
85,268

$
126,769

$
226,198






EverBank Financial Corp and Subsidiaries
Non-Performing Assets(1)
Table 8

(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
Non-accrual loans and leases:
Consumer Banking:
Residential mortgages
$
23,067

$
22,212

$
47,835

$
59,526

$
60,066

Home equity lines
2,152

1,903

3,462

3,270

4,164

Other consumer and credit card
31

20

33

18

15

Commercial Banking:
Commercial and commercial real estate
46,819

44,172

23,884

18,569

76,662

Equipment financing receivables
6,803

6,475

5,446

4,527

4,171

Total non-accrual loans and leases
78,872

74,782

80,660

85,910

145,078

Accruing loans 90 days or more past due










Total non-performing loans (NPL)
78,872

74,782

80,660

85,910

145,078

Other real estate owned (OREO)
24,501

25,530

29,333

29,034

32,108

Total non-performing assets (NPA)
103,373

100,312

109,993

114,944

177,186

Troubled debt restructurings (TDR) less than 90 days past due
16,547

16,687

73,455

76,913

79,664

Total NPA and TDR(1)
$
119,920

$
116,999

$
183,448

$
191,857

$
256,850

Total NPA and TDR
$
119,920

$
116,999

$
183,448

$
191,857

$
256,850

Government insured 90 days or more past due still accruing
2,632,744

2,424,166

1,021,276

1,039,541

1,147,795

Loans accounted for under ASC 310-30:
90 days or more past due
10,519

23,159

9,915

10,083

45,104

OREO








21,240

Total regulatory NPA and TDR
$
2,763,183

$
2,564,324

$
1,214,639

$
1,241,481

$
1,470,989

Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30:(1)
NPL to total loans
0.45
%
0.44
%
0.56
%
0.61
%
1.07
%
NPA to total assets
0.50
%
0.51
%
0.62
%
0.65
%
1.01
%
NPA and TDR to total assets
0.58
%
0.59
%
1.04
%
1.09
%
1.46
%
Credit quality ratios including government insured loans and loans accounted for under ASC�310-30:
NPL to total loans
15.65
%
14.89
%
7.72
%
8.12
%
9.87
%
NPA to total assets
13.39
%
12.90
%
6.47
%
6.60
%
7.90
%
NPA and TDR to total assets
13.47
%
12.98
%
6.89
%
7.04
%
8.35
%
(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,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
ALLL, beginning of period
$
56,728

$
62,969

$
63,690

$
66,991

$
73,469

Charge-offs:
Consumer Banking:
Residential mortgages
2,023

1,810

3,165

4,197

3,038

Home equity lines
171

163

316

270

430

Other consumer and credit card
28

20

15

4

28

Commercial Banking:
Commercial and commercial real estate
568

4,714

5

2,608

6,081

Equipment financing receivables
1,548

938

1,189

1,209

746

Total charge-offs
4,338

7,645

4,690

8,288

10,323

Recoveries:
Consumer Banking:
Residential mortgages
127

251

566

1,398

70

Home equity lines
289

74

141

134

130

Other consumer and credit card






27

14

Commercial Banking:
Commercial and commercial real estate
6



1

306

488

Equipment financing receivables
180

196

190

197

75

Total recoveries
602

521

898

2,062

777

Net charge-offs
3,736

7,124

3,792

6,226

9,546

Provision for loan and lease losses
6,735

6,123

3,071

7,022

3,068

Transfers to loans held for sale
(2,482
)
(5,240
)


(4,097
)


ALLL, end of period
$
57,245

$
56,728

$
62,969

$
63,690

$
66,991

Net charge-offs to average loans and leases held for investment
0.09
%
0.19
%
0.12
%
0.20
%
0.30
%
Allowance for Loan and Lease Losses Ratio
Table�9b����

(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
ALLL
$
57,245

$
56,728

$
62,969

$
63,690

$
66,991

Loans and leases held for investment, net of unearned income
16,579,951

15,294,644

13,864,109

13,252,724

12,562,967

ALLL as a percentage of loans and leases held for investment
0.35
%
0.37
%
0.45
%
0.48
%
0.53
%
ALLL excluding portion related to loans and leases accounted for under ASC 310-30
$
48,156

$
44,020

$
47,672

$
48,931

$
50,431

Loans and leases held for investment, net of unearned income excluding loans and leases accounted for under ASC 310-30
13,930,197

12,865,207

12,783,173

12,259,724

11,386,431

ALLL as a percentage of loans and leases held for investment (excluding ASC 310-30)
0.35
%
0.34
%
0.37
%
0.40
%
0.44
%
Government insured pool buyouts as a percentage of loans and leases held for investment
20
%
21
%
14
%
14
%
17
%
Reserves for Repurchase Obligations for Loans Sold or Securitized
��
��
Table 9c

Three Months Ended
(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
Loan origination repurchase reserves, beginning of period
$
26,373

$
24,428

$
20,225

$
19,086

$
21,960

Provision for new sales/securitizations
627

595

429

635

1,012

Provision (release of provision) for changes in estimate of existing reserves


3,400

4,000

1,563

(1,718
)
Net realized losses on repurchases
(2,288
)
(2,050
)
(226
)
(1,059
)
(2,168
)
Loan origination repurchase reserves, end of period
$
24,712

$
26,373

$
24,428

$
20,225

$
19,086

Reserves for Repurchase Obligations for Loans Serviced
Table�9d����

Three Months Ended
(dollars in thousands)
September�30,
2014
June�30,
2014
March�31,
2014
December�31,
2013
September�30,
2013
Loan servicing repurchase reserves, beginning of period
$
5,802

$
10,796

$
23,668

$
22,733

$
23,518

Provision (release of provision) for change in estimate of existing reserves
(626
)
(1,303
)
(5,037
)
3,580

4,531

Net realized losses on repurchases
(1,101
)
(3,691
)
(7,835
)
(2,645
)
(5,316
)
Loan servicing repurchase reserves, end of period
$
4,075

$
5,802

$
10,796

$
23,668

$
22,733







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,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Sep 30,
2014
Sep 30,
2013
Net income
$
43,519

$
34,782

$
31,760

$
18,451

$
33,150

$
110,061

$
118,289

Transaction expense and non-recurring regulatory related expense, net of tax
2,201

1,294

465

4,807

20,203

3,960

43,670

Increase (decrease) in Bank of Florida non-accretable discount, net of tax
198

423

311

(68
)
(439
)
932

(27
)
MSR impairment (recovery), net of tax
(1,904
)


(3,063
)
(9,109
)
(21,783
)
(4,967
)
(49,761
)
Restructuring cost, net of tax




630

16,090

3,242

630

3,242

OTTI losses on investment securities (Volcker Rule), net of tax


425



2,045



425



Adjusted net income
$
44,014

$
36,924

$
30,103

$
32,216

$
34,373

$
111,041

$
115,413

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
$
41,482

$
34,393

$
27,572

$
29,685

$
31,841

$
103,447

$
107,819

Adjusted net earnings per common share, basic
$
0.34

$
0.28

$
0.22

$
0.24

$
0.26

$
0.84

$
0.88

Adjusted net earnings per common share, diluted
$
0.33

$
0.27

$
0.22

$
0.24

$
0.26

$
0.83

$
0.87

Weighted average common shares outstanding:
(units in thousands)
Basic
122,950

122,840

122,684

122,595

122,509

122,826

122,128

Diluted
125,473

125,389

125,038

124,420

124,124

125,292

123,821

Tangible Equity, Tangible Common Equity and Tangible Assets
Table 10b

(dollars in thousands)
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Shareholders equity
$
1,721,023

$
1,679,448

$
1,647,639

$
1,621,013

$
1,602,913

Less:
Goodwill
46,859

46,859

46,859

46,859

46,859

Intangible assets
4,232

4,759

5,286

5,813

6,340

Tangible equity
1,669,932

1,627,830

1,595,494

1,568,341

1,549,714

Less:
Perpetual preferred stock
150,000

150,000

150,000

150,000

150,000

Tangible common equity
$
1,519,932

$
1,477,830

$
1,445,494

$
1,418,341

$
1,399,714

Total assets
$
20,510,342

$
19,753,820

$
17,630,948

$
17,640,984

$
17,612,089

Less:
Goodwill
46,859

46,859

46,859

46,859

46,859

Intangible assets
4,232

4,759

5,286

5,813

6,340

Tangible assets
$
20,459,251

$
19,702,202

$
17,578,803

$
17,588,312

$
17,558,890







EverBank Financial Corp and Subsidiaries

Reconciliation of Non-GAAP Measures (continued)

Regulatory Capital (bank level)
Table 10c

(dollars in thousands)
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Shareholders equity
$
1,769,205

$
1,714,454

$
1,686,414

$
1,662,164

$
1,648,152

Less:
Goodwill and other intangibles
(49,957
)
(50,328
)
(50,700
)
(51,072
)
(51,436
)
Disallowed servicing asset
(23,524
)
(29,028
)
(26,419
)
(20,469
)
(39,658
)
Disallowed deferred tax asset


(61,737
)
(62,682
)
(63,749
)
(64,462
)
Add:
Accumulated losses on securities and cash flow hedges
49,516

52,121

51,507

50,608

54,392

Tier 1 capital
1,745,240

1,625,482

1,598,120

1,577,482

1,546,988

Add:
Allowance for loan and lease losses
57,245

56,728

62,969

63,690

66,991

Total regulatory capital
$
1,802,485

$
1,682,210

$
1,661,089

$
1,641,172

$
1,613,979

Adjusted total assets
$
20,480,723

$
19,660,793

$
17,539,708

$
17,554,236

$
17,510,528

Risk-weighted assets
12,869,352

12,579,476

11,597,320

11,467,411

11,120,048

Regulatory Capital (EFC consolidated)
Table 10d

(dollars in thousands)
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Shareholders equity
$
1,721,023

$
1,679,448

$
1,647,639

$
1,621,013

$
1,602,913

Less:
Preferred stock
(150,000
)
(150,000
)
(150,000
)
(150,000
)
(150,000
)
Goodwill and other intangibles
(49,957
)
(50,328
)
(50,700
)
(51,072
)
(51,436
)
Disallowed servicing asset
(23,524
)
(29,028
)
(26,419
)
(20,469
)
(39,658
)
Disallowed deferred tax asset


(61,737
)
(62,682
)
(63,749
)
(64,462
)
Add:
Accumulated losses on securities and cash flow hedges
51,108

53,936

53,647

52,615

56,879

Common tier 1 capital
$
1,548,650

$
1,442,291

$
1,411,485

$
1,388,338

$
1,354,236

Risk-weighted assets
$
12,875,007

12,583,537

11,600,258

11,469,483

11,120,445








EverBank Financial Corp and Subsidiaries
Residential Mortgage Lending and Servicing
Table 11

Three Months Ended
(dollars in thousands)
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Key Metrics:
Mortgage lending volume:
Agency
$
1,108,917

$
1,124,684

$
892,358

$
1,188,032

$
1,933,155

Jumbo
1,187,161

1,108,188

808,138

808,001

767,004

Other
6,004









Mortgage lending volume
$
2,302,082

$
2,232,872

$
1,700,496

$
1,996,033

$
2,700,159

Mortgage loans sold:
���Agency
$
1,111,504

$
804,015

$
897,234

$
1,382,970

$
1,793,944

���Jumbo
691,431

447,408

54,210

30,656

911,100

���GNMA
365,547

176,734

255,021

254,641

450,386

���Other
4,163

103,556

3,290

9,322

9,027

Mortgage loans sold
$
2,172,645

$
1,531,713

$
1,209,755

$
1,677,589

$
3,164,457

Unpaid principal balance of loans serviced for the Company and others
$
50,830,585

$
50,790,378

$
60,677,571

$
61,035,320

$
61,274,075

Average contractual servicing fee
0.29
%
0.29
%
0.29
%
0.29
%
0.29
%
Applications
$
1,279,945

$
1,656,807

$
1,534,751

$
2,374,710

$
2,491,569

Rate locks
1,236,764

1,664,388

1,461,488

1,272,266

1,360,608

Mortgage Lending Volume by Channel:
Retail
$
1,259,019

$
1,225,568

$
781,241

$
884,934

$
1,023,790

Consumer Direct
454,449

461,115

414,726

639,105

924,408

Correspondent
588,614

546,189

504,529

471,994

751,961

Purchase Activity (%):
Retail
72
%
80
%
70
%
67
%
66
%
Consumer Direct
12
%
13
%
5
%
4
%
3
%
Correspondent
66
%
60
%
44
%
53
%
49
%
Total
59
%
61
%
46
%
43
%
40
%



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