0001502749-14-000043.txt : 20141029 0001502749-14-000043.hdr.sgml : 20141029 20141029060723 ACCESSION NUMBER: 0001502749-14-000043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20141029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141029 DATE AS OF CHANGE: 20141029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EverBank Financial Corp CENTRAL INDEX KEY: 0001502749 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 900615674 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35533 FILM NUMBER: 141178501 BUSINESS ADDRESS: STREET 1: 501 RIVERSIDE AVENUE, 12TH FLOOR CITY: JACKSONVILLE STATE: FL ZIP: 32202 BUSINESS PHONE: (904) 281-6000 MAIL ADDRESS: STREET 1: 501 RIVERSIDE AVENUE, 12TH FLOOR CITY: JACKSONVILLE STATE: FL ZIP: 32202 8-K 1 a8-kearningsrelease93014.htm 8-K 8-K Earnings Release 9.30.14


 
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
(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 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 Company’s 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 Company’s website, on October 29, 2014.
 
 




 EX-99.1 2 ex991pressrelease93014.htm EARNINGS RELEASE Ex 99.1 Press Release 9.30.14

                                                




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.




                                                



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.



                                                



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 bank’s 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%.



                                                



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.



                                                



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
Michael.Cosgrove@EverBank.com
 
Investor.Relations@EverBank.com





                                                



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, 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





                                                



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






                                                



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 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
 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



                                                



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






                                                



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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




 EX-99.2 3 ex992quarterlyfinancialtab.htm FINANCIAL TABLES Ex 99.2 Quarterly Financial Tables 9.30.14


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
%