0001502749-16-000085.txt : 20161028 0001502749-16-000085.hdr.sgml : 20161028 20161028070132 ACCESSION NUMBER: 0001502749-16-000085 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20161028 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20161028 DATE AS OF CHANGE: 20161028 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: 161956928 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-kearningsrelease93016.htm 8-K Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
 
Date of Report (Date of Earliest Event Reported):
 
October 28, 2016
 
EverBank Financial Corp
 
(Exact name of registrant as specified in its charter)
 

 
 
 
 
 
Delaware
 
001-35533
 
52-2024090
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
501 Riverside Ave., Jacksonville, FL
 
 
 
32202
(Address of principal executive offices)
 
 
 
(Zip Code)
 
 
 
904-281-6000
(Registrant’s telephone number, including area code)


Not Applicable
 (Former name or former address, if changed since last report)
 
 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







 




Item 2.02. Results of Operations and Financial Condition
On October 28, 2016, EverBank Financial Corp (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2016, which press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Item 2.02, as well as the exhibit referenced herein, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).
Item 7.01. Regulation FD Disclosure
On October 28, 2016, 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, 2016, attached hereto as Exhibit 99.2.
The information contained in this Item 7.01, as well as the exhibit referenced herein, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
  Description.
 
 
99.1
Press release, dated October 28, 2016, by the Company announcing its financial results for the quarter ended September 30, 2016.
 
 
99.2
Financial tables distributed and made available to investors, and posted on the Company’s website, on October 28, 2016.
 
 




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
EverBank Financial Corp
 
(Registrant)
 
 
 
 
By:
 
/s/ Steven J. Fischer
 
 
 
Name:
 
Steven J. Fischer
 
 
 
Title:
 
Senior Executive Vice President and Chief Financial Officer
 
Dated: October 28, 2016




EXHIBIT LIST
 
 
 
Exhibit No.
  Description
 
 
99.1
Press release, dated October 28, 2016, by the Company announcing its financial results for the quarter ended September 30, 2016.
 
 
99.2
Financial tables distributed and made available to investors, and posted on the Company’s website, on October 28, 2016.
 
 




 EX-99.1 2 ex991pressrelease93016.htm EXHIBIT 99.1 Exhibit






EverBank Financial Corp Announces Third Quarter 2016 Financial Results


JACKSONVILLE, FL, October 28, 2016 - EverBank Financial Corp (NYSE: EVER) announced today its financial results for the third quarter ended September 30, 2016.
GAAP net income available to common shareholders was $34.6 million for the third quarter 2016, compared to $19.0 million for the second quarter 2016 and $27.1 million for the third quarter 2015. GAAP diluted earnings per share in the third quarter 2016 were $0.27 compared to $0.15 in the second quarter 2016 and $0.21 in the third quarter 2015. Adjusted net income available to common shareholders was $51.6 million for the third quarter 2016, compared to $40.5 million for the second quarter 2016 and $28.8 million for the third quarter 2015.1 Adjusted diluted earnings per common share were $0.40 in the third quarter 2016 compared to $0.32 in the second quarter 2016 and $0.23 in the third quarter 2015.1 
Third Quarter 2016 Key Highlights
•
Total assets of $28.7 billion, an increase of 14% year over year.
•
Portfolio loans held for investment (HFI) of $23.9 billion, an increase of 15% year over year.
•
Total deposits of $19.6 billion, an increase of 12% year over year.
•
Net interest margin (NIM) of 2.81%.
•
GAAP return on average equity (ROE) of 8.0% and adjusted ROE1 of 11.9% for the quarter.
•
Tangible common equity per common share was $13.53 at September 30, 2016, an increase of 4% year over year.1 
•
Adjusted non-performing assets to total assets1 of 0.69% at September 30, 2016. Annualized net charge-offs to average total loans and leases held for investment of 0.10% for the quarter.
•
Consolidated common equity Tier 1 capital ratio of 9.7% and bank Tier 1 leverage ratio of 7.9% at September 30, 2016.
•
On August 8, 2016, Teachers Insurance and Annuity Association of America (TIAA) announced an agreement to acquire EverBank for $19.50 per share of common stock in cash pursuant to an agreement and plan of merger, dated August 7, 2016. In addition, holders of EverBank’s Series A Preferred Stock would receive cash in an amount equal to the liquidation preference plus accrued but unpaid dividends. The closing of the proposed merger is subject to the receipt of regulatory approval as well as the approval of EverBank’s stockholders.




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






Balance Sheet
Total assets were $28.7 billion at September 30, 2016, an increase of $1.3 billion, or 5%, compared to the prior quarter and an increase of $3.5 billion, or 14%, year over year. Compared to the prior quarter, loans held for sale (HFS) increased $627 million, or 42%, to $2.1 billion and loans HFI increased $714 million, or 3%, to $23.9 billion.
Portfolio Loans HFI
The following table presents total portfolio loans and leases HFI by product type:
($ in millions)
Sep 30,
2016
 
Jun 30,
2016
 
Sep 30,
2015
 
% Change (Q/Q)
 
% Change (Y/Y)
Consumer Banking:
 
 
 
 
 
 
 
 
 
Residential loans
$
6,654

 
$
6,962

 
$
7,365

 
(4
)%
 
(10
)%
Government insured pool buyouts
5,139

 
4,403

 
3,947

 
17
 %
 
30
 %
Total residential mortgages
11,793

 
11,365

 
11,312

 
4
 %
 
4
 %
Home equity lines and other
1,173

 
1,074

 
337

 
9
 %
 
248
 %
Total Consumer Banking
12,966

 
12,439

 
11,649

 
4
 %
 
11
 %
 
 
 
 
 
 
 
 
 
 
Commercial Banking:
 
 
 
 
 
 
 
 

Commercial real estate and other commercial
3,882

 
3,831

 
3,660

 
1
 %
 
6
 %
Mortgage warehouse finance
3,077

 
3,035

 
2,163

 
1
 %
 
42
 %
Lender finance
1,496

 
1,451

 
1,118

 
3
 %
 
34
 %
Commercial and commercial real estate
8,454

 
8,317

 
6,941

 
2
 %
 
22
 %
Equipment financing receivables
2,512

 
2,462

 
2,288

 
2
 %
 
10
 %
Total Commercial Banking
10,967

 
10,780

 
9,228

 
2
 %
 
19
 %
 
 
 
 
 
 
 
 
 
 
Total Loans HFI
$
23,933

 
$
23,219

 
$
20,877

 
3
 %
 
15
 %

Total consumer banking loans HFI increased $527 million, or 4%, compared to the prior quarter and increased $1.3 billion, or 11%, year over year to $13.0 billion. Total residential mortgages increased $428 million, or 4%, compared to the prior quarter to $11.8 billion driven by growth in government insured pool buyouts. Home equity lines and other increased $99 million, or 9%, compared to the prior quarter to $1.2 billion.
Total commercial banking loans and leases HFI increased $187 million, or 2%, compared to the prior quarter and $1.7 billion, or 19%, year over year to $11.0 billion. Equipment financing receivables increased $50 million, or 2%, compared to the prior quarter to $2.5 billion, lender finance increased $45 million, or 3%, to $1.5 billion, mortgage warehouse finance increased $41 million, or 1%, to $3.1 billion and commercial real estate and other commercial loans increased $51 million, or 1%, to $3.9 billion.
    

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






Loan Origination Activities
The following table presents total organic loan and lease origination information by product type:
($ in millions)
Sep 30,
2016
 
Jun 30,
2016
 
Sep 30,
2015
 
% Change (Q/Q)
 
% Change (Y/Y)
Consumer originations


 


 
 
 
 
 
 
Conventional loans
$
1,662

 
$
1,522

 
$
1,073

 
9
 %
 
55
 %
Prime jumbo loans
870

 
883

 
1,219

 
(1
)%
 
(29
)%
 
2,532

 
2,406

 
2,292

 
5
 %
 
10
 %
Commercial originations
 
 
 
 
 
 

 

Commercial and commercial real estate
444

 
358

 
649

 
24
 %
 
(32
)%
Equipment financing receivables
329

 
318

 
345

 
4
 %
 
(5
)%
 
774

 
676

 
994

 
14
 %
 
(22
)%
Total originations
$
3,306

 
$
3,081

 
$
3,287

 
7
 %
 
1
 %

Total originations were $3.3 billion for the third quarter of 2016, an increase of 7% compared to the prior quarter and 1% year over year. Consumer originations were $2.5 billion for the third quarter 2016, an increase of 5% compared to the prior quarter and a 10% increase year over year. Commercial originations were $774 million for the third quarter of 2016, an increase of 14% compared to the prior quarter and a decrease of 22% year over year.

Deposits and Other Funding
The following table presents total deposit balances by account type and segment:
($ in millions)
Sep 30,
2016
 
Jun 30,
2016
 
Sep 30,
2015
 
% Change (Q/Q)
 
% Change (Y/Y)
Noninterest-bearing demand
$
2,071

 
$
1,510

 
$
1,390

 
37
 %
 
49
 %
Interest-bearing demand
3,585

 
3,696

 
3,631

 
(3
)%
 
(1
)%
Savings and money market accounts, excluding market-based
6,272

 
6,478

 
5,734

 
(3
)%
 
9
 %
Global market-based accounts
681

 
701

 
732

 
(3
)%
 
(7
)%
Time, excluding market-based
7,034

 
6,427

 
6,079

 
9
 %
 
16
 %
Total deposits
$
19,643

 
$
18,812

 
$
17,566

 
4
 %
 
12
 %
 
 
 
 
 
 
 

 

Consumer deposits
$
15,268

 
$
14,788

 
$
13,519

 
3
 %
 
13
 %
Commercial deposits
4,375

 
4,024

 
4,047

 
9
 %
 
8
 %
Total deposits
$
19,643

 
$
18,812

 
$
17,566

 
4
 %
 
12
 %

Total deposits were $19.6 billion at September 30, 2016, an increase of $832 million, or 4%, compared to the prior quarter and an increase of $2.1 billion, or 12%, year over year.
Total other borrowings were $6.5 billion at September 30, 2016, an increase of $465 million, or 8%, compared to the prior quarter and an increase of $1.2 billion, or 22%, year over year.

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






Capital Strength
Total shareholders' equity was $1.9 billion at September 30, 2016, an increase of 2% compared to the prior quarter and an increase of 4% year over year. As of September 30, 2016, our consolidated common equity Tier 1 capital ratio was 9.7% and the bank’s Tier 1 leverage and total risk-based capital ratios were 7.9% and 12.5%, respectively. As a result, the bank is considered "well-capitalized" under all applicable regulatory guidelines.
Credit Quality
Adjusted non-performing assets1 were 0.69% of total assets at September 30, 2016, compared to 0.52% for the prior quarter and 0.55% at September 30, 2015. Net charge-offs during the third quarter of 2016 were $6 million, an increase of $1 million compared to both the prior quarter and year over year. On an annualized basis, net charge-offs were 0.10% of total average loans and leases HFI for the quarter, compared to 0.09% for the prior quarter and 0.11% for the third quarter of 2015.
Income Statement Highlights
Revenue
Revenue for the third quarter of 2016 was $233 million, an increase of $36 million, or 18%, compared to $197 million in the second quarter of 2016. Excluding the change in valuation allowance on our mortgage servicing rights (MSR) and other one-time items, revenue would have been $256 million in the third quarter of 2016, an increase of 10% compared to the prior quarter.
Net Interest Income
Net interest income was $190 million for the third quarter of 2016, an increase of $12 million, or 7%, compared to the prior quarter. Average interest-earning assets increased $1.3 billion, or 5%, compared to the prior quarter driven primarily by a $1.0 billion, or 4%, increase in average loans and leases HFI. Total average interest-bearing liabilities increased $968 million, or 4%, compared to the prior quarter driven by a $743 million, or 13%, increase in average borrowings.
Net interest margin increased to 2.81% for the third quarter of 2016 from 2.80% in the second quarter of 2016, driven by stable interest-earning asset yields at 3.81% and a 0.04% decrease in the average cost of total interest-bearing liabilities to 1.11%.
Noninterest Income
Noninterest income for the third quarter of 2016 was $43 million, an increase of $24 million, or 126%, compared to the prior quarter, driven by increased gain on sale of loans and higher net loan servicing income. Net loan servicing income increased $12 million compared to the prior quarter to a loss of $19 million, driven primarily by the change in valuation allowance on our MSR, which included impairment of $23 million in the third quarter 2016 compared to impairment of $37 million in the prior quarter. Excluding the impact of the valuation allowance, net loan servicing income for the third quarter would have been $4 million, a decrease of $2 million, or 29%, compared to the prior quarter.
Gain on sale of loans was $43 million, an increase of $11 million, or 35%, compared to the prior quarter, driven primarily by higher agency funding activity.

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






Noninterest Expense
Noninterest expense for the third quarter of 2016 was $162 million, an increase of $6 million, or 4%, compared to the prior quarter. Salaries, commissions and employee benefits were $94 million, a decrease of $1 million, or 1%, compared to the prior quarter. General and administrative expense was $46 million, an increase of $8 million, or 21%, compared to the prior quarter, driven by higher legal and professional fees.
EverBank's efficiency ratio in the third quarter of 2016 was 69%, compared to 79% in the prior quarter. Excluding the impact of our MSR valuation allowance recovery or impairment, transaction and other non-recurring expenses, EverBank's adjusted efficiency ratio1 was 61% for the third quarter compared to 67% in prior quarter.
Dividends
On October 19, 2016, the Company's Board of Directors declared a quarterly cash dividend of $0.06 per common share, payable on November 22, 2016, to stockholders of record as of November 10, 2016. Also on October 19, 2016, the Company's Board of Directors declared a quarterly cash dividend of $421.875, payable on January 5, 2017, for each share of 6.75% Series A Non-Cumulative Perpetual Preferred Stock held as of December 21, 2016.
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 $28.7 billion in assets and $19.6 billion in deposits as of September 30, 2016. With an emphasis on value, innovation and service, EverBank offers a broad selection of banking, lending and investing products to consumers and businesses nationwide. EverBank provides services to clients through the internet, over the phone, through the mail, at its Florida-based financial centers and at other business offices throughout the country. More information on EverBank can be found at https://about.everbank/investors.     
Investor Contact
Scott Verlander
904.623.8455
Scott.Verlander@EverBank.com
    
Media Contact
Michael Cosgrove
904.623.2029
Michael.Cosgrove@EverBank.com

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






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: the 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; the possibility that the proposed merger with TIAA does not close when expected or at all because required regulatory or other approvals and conditions to closing, including stockholder approval of the merger agreement are not received on a timely basis or at all; the effect of the announcement of the pendency of the merger on our business relationships, operating results and business generally; risks that the proposed merger disrupts our current plans and operations and potential difficulties in our employee retention as a result of the merger; the outcome of any legal proceedings that may be instituted against us related to the merger agreement; 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; 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, mortgage warehouse finance customers, 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; environmental liabilities with respect to properties that we take title to upon foreclosure; fluctuations in our stock price; 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.



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


EverBank Financial Corp and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
 
September 30,
2016
 
December 31, 2015
Assets
 
 
 
Cash and due from banks
$
54,380

 
$
55,300

Interest-bearing deposits in banks
534,284

 
527,151

Total cash and cash equivalents
588,664

 
582,451

Investment securities:
 
 
 
Available for sale, at fair value
486,902

 
555,019

Held to maturity (fair value of $105,862 and $105,448 as of September 30, 2016 and December 31, 2015, respectively)
100,928

 
103,746

Other investments
294,710

 
265,431

Total investment securities
882,540

 
924,196

Loans held for sale (includes $1,815,113 and $1,307,741 carried at fair value as of September 30, 2016 and December 31, 2015, respectively)
2,112,855

 
1,509,268

Loans and leases held for investment:
 
 
 
Loans and leases held for investment, net of unearned income
23,932,724

 
22,227,492

Allowance for loan and lease losses
(90,170
)
 
(78,137
)
Total loans and leases held for investment, net
23,842,554

 
22,149,355

Mortgage servicing rights (MSR), net
249,106

 
335,280

Premises and equipment, net
46,525

 
51,599

Other assets
980,801

 
1,048,877

Total Assets
$
28,703,045

 
$
26,601,026

Liabilities
 
 
 
Deposits:
 
 
 
Noninterest-bearing
$
2,071,154

 
$
1,141,357

Interest-bearing
17,572,194

 
17,100,685

Total deposits
19,643,348

 
18,242,042

Other borrowings
6,487,000

 
5,877,000

Trust preferred securities and subordinated notes payable
360,179

 
276,170

Accounts payable and accrued liabilities
316,962

 
337,493

Total Liabilities
26,807,489

 
24,732,705

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, 2016 and December 31, 2015)
150,000

 
150,000

Common Stock, $0.01 par value (500,000,000 shares authorized; 125,437,973 and 125,020,843 issued and outstanding at September 30, 2016 and December 31, 2015, respectively)
1,254

 
1,250

Additional paid-in capital
882,386

 
874,806

Retained earnings
962,749

 
906,278

Accumulated other comprehensive income (loss) (AOCI)
(100,833
)
 
(64,013
)
Total Shareholders’ Equity
1,895,556

 
1,868,321

Total Liabilities and Shareholders’ Equity
$
28,703,045

 
$
26,601,026




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,
 
 
2016
 
2015
 
2016
 
2015
Interest Income
 
 
 
 
 
 
 
 
Interest and fees on loans and leases
 
$
249,601

 
$
215,881

 
$
716,828

 
$
621,077

Interest and dividends on investment securities
 
6,719

 
7,520

 
21,088

 
22,989

Other interest income
 
568

 
226

 
1,349

 
545

Total Interest Income
 
256,888

 
223,627

 
739,265

 
644,611

Interest Expense
 
 
 
 
 
 
 
 
Deposits
 
39,272

 
31,921

 
117,440

 
91,904

Other borrowings
 
27,981

 
22,866

 
80,969

 
59,404

Total Interest Expense
 
67,253

 
54,787

 
198,409

 
151,308

Net Interest Income
 
189,635

 
168,840

 
540,856

 
493,303

Provision for Loan and Lease Losses
 
12,070

 
11,131

 
27,001

 
28,063

Net Interest Income after Provision for Loan and Lease Losses
 
177,565

 
157,709

 
513,855

 
465,240

Noninterest Income
 
 
 
 
 
 
 
 
Loan servicing fee income
 
23,637

 
27,157

 
69,892

 
90,858

Amortization of mortgage servicing rights
 
(19,176
)
 
(16,760
)
 
(50,457
)
 
(56,065
)
Recovery (impairment) of mortgage servicing rights
 
(23,170
)
 
(4,450
)
 
(82,584
)
 
(32,075
)
Net loan servicing income (loss)
 
(18,709
)
 
5,947

 
(63,149
)
 
2,718

Gain on sale of loans
 
43,101

 
18,037

 
103,825

 
101,248

Loan production revenue
 
7,231

 
5,861

 
19,220

 
17,443

Deposit fee income
 
2,059

 
3,844

 
7,114

 
10,946

Other lease income
 
3,919

 
3,714

 
11,602

 
9,876

Other
 
5,733

 
3,792

 
13,643

 
15,299

Total Noninterest Income
 
43,334

 
41,195

 
92,255

 
157,530

Noninterest Expense
 
 
 
 
 
 
 
 
Salaries, commissions and other employee benefits expense
 
94,052

 
89,369

 
280,614

 
277,124

Equipment expense
 
15,833

 
15,576

 
47,802

 
46,879

Occupancy expense
 
6,298

 
6,679

 
19,828

 
19,691

General and administrative expense
 
45,582

 
39,882

 
118,791

 
141,822

Total Noninterest Expense
 
161,765

 
151,506

 
467,035

 
485,516

Income before Provision for Income Taxes
 
59,134

 
47,398

 
139,075

 
137,254

Provision for Income Taxes
 
22,003

 
17,815

 
52,465

 
51,874

Net Income
 
$
37,131

 
$
29,583

 
$
86,610

 
$
85,380

Less: Net Income Allocated to Preferred Stock
 
(2,532
)
 
(2,532
)
 
(7,594
)
 
(7,594
)
Net Income Allocated to Common Shareholders
 
$
34,599

 
$
27,051

 
$
79,016

 
$
77,786

Basic Earnings Per Common Share
 
$
0.28

 
$
0.22

 
$
0.63

 
$
0.63

Diluted Earnings Per Common Share
 
$
0.27

 
$
0.21

 
$
0.62

 
$
0.61

Dividends Declared Per Common Share
 
$
0.06

 
$
0.06

 
$
0.18

 
$
0.14





Non-GAAP Financial Measures
This press release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Efficiency Ratio, Adjusted Return on Equity, Tangible Shareholders’ Equity, Tangible Common Shareholders' Equity, Tangible Common Equity Per Common Share, Tangible Assets and Adjusted Non-Performing Asset Ratio are non-GAAP financial measures. The Company’s management uses these measures to evaluate the underlying performance and efficiency of its operations. The Company’s management believes these non-GAAP measures provide meaningful additional information about the operating performance of the Company’s business and facilitate a meaningful comparison of our results in the current period to those in prior periods and future periods because these non-GAAP measures exclude certain items that may not be indicative of our core operating results and business outlook. In addition, the Company’s management believes that certain of these non-GAAP measures represent a consistent benchmark against which to evaluate the Company’s growth, profitability and capital position. These non-GAAP measures are provided to enhance investors’ overall understanding of our current financial performance, and not as a substitute for, the Company’s reported results. Moreover, the manner in which we calculate these measures may differ from that of other companies reporting non-GAAP measures with similar names.
In the tables below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated:



EverBank Financial Corp and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
(dollars in thousands, except per share data)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Net income
 
$
37,131

 
$
21,555

 
$
27,924

 
$
45,146

 
$
29,583

Gain on repurchase of trust preferred securities, net of tax
 
—

 
(916
)
 
—

 
—

 
—

Transaction expense and non-recurring regulatory related expense, net of tax
 
4,220

 
187

 
(43
)
 
(1,849
)
 
(784
)
Increase (decrease) in Bank of Florida non-accretable discount, net of tax
 
—

 
(201
)
 
(14
)
 
—

 
(51
)
MSR impairment (recovery), net of tax
 
14,365

 
22,861

 
13,976

 
(55
)
 
2,758

Restructuring cost, net of tax
 
(1,589
)
 
(442
)
 
438

 
2,219

 
(222
)
Adjusted net income
 
$
54,127

 
$
43,044

 
$
42,281

 
$
45,461

 
$
31,284

Adjusted net income allocated to preferred stock
 
2,532

 
2,531

 
2,531

 
2,531

 
2,532

Adjusted net income allocated to common shareholders
 
$
51,595

 
$
40,513

 
$
39,750

 
$
42,930

 
$
28,752

Adjusted net earnings per common share, basic
 
$
0.41

 
$
0.32

 
$
0.32

 
$
0.34

 
$
0.23

Adjusted net earnings per common share, diluted
 
$
0.40

 
$
0.32

 
$
0.32

 
$
0.34

 
$
0.23

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
   (units in thousands)
 
 
 
 
 
 
 
 
 
 
   Basic
 
125,382

 
125,294

 
125,125

 
124,983

 
124,823

   Diluted
 
127,453

 
126,612

 
126,045

 
126,980

 
127,099

 
 
 
 
 
 
 
 
 
 
 
Adjusted Efficiency Ratio
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
(dollars in thousands)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Net interest income
 
$
189,635

 
$
177,440

 
$
173,781

 
$
175,040

 
$
168,840

Noninterest income
 
43,334

 
19,168

 
29,753

 
57,850

 
41,195

Total revenue
 
232,969

 
196,608

 
203,534

 
232,890

 
210,035

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
Gain on repurchase of trust preferred securities

 
—

 
(1,478
)
 
—

 
—

 
—

MSR impairment (recovery)
 
23,170

 
36,872

 
22,542

 
(89
)
 
4,450

Restructuring cost
 
—

 
(129
)
 
—

 
160

 
—

Adjusted total revenue
 
$
256,139

 
$
231,873

 
$
226,076

 
$
232,961

 
$
214,485

 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
$
161,765

 
$
155,840

 
$
149,430

 
$
152,861

 
$
151,506

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
Transaction expense and non-recurring regulatory related expense
 
(6,806
)
 
(302
)
 
69

 
2,981

 
1,264

Restructuring cost
 
2,563

 
584

 
(706
)
 
(3,419
)
 
360

Adjusted noninterest expense
 
$
157,522

 
$
156,122

 
$
148,793

 
$
152,423

 
$
153,130

 
 
 
 
 
 
 
 
 
 
 
GAAP efficiency ratio
 
69
%
 
79
%
 
73
%
 
66
%
 
72
%
Adjusted efficiency ratio
 
61
%
 
67
%
 
66
%
 
65
%
 
71
%


EverBank Financial Corp and Subsidiaries
 
Regulatory Capital (bank level)
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Shareholders’ equity
 
$
2,161,524

 
$
2,124,090

 
$
2,123,612

 
$
2,050,456

 
$
2,002,848

Less:
Goodwill and other intangibles
 
(47,227
)
 
(47,318
)
 
(47,401
)
 
(47,143
)
 
(47,198
)
 
Disallowed servicing asset
 
—

 
—

 
(8,618
)
 
(17,719
)
 
(26,699
)
Add:
Accumulated losses on securities and cash flow hedges
 
100,140

 
107,834

 
95,611

 
62,887

 
71,202

Tier 1 capital
(A)
2,214,437

 
2,184,606

 
2,163,204

 
2,048,481

 
2,000,153

Add:
Allowance for loan and lease losses
 
90,948

 
84,994

 
84,134

 
78,789

 
72,653

Total regulatory capital
(B)
$
2,305,385

 
$
2,269,600

 
$
2,247,338

 
$
2,127,270

 
$
2,072,806

 
 
 
 
 
 
 
 
 
 
 
Adjusted total assets
(C)
$
28,189,485

 
$
26,946,525

 
$
26,232,737

 
$
25,281,658

 
$
24,428,171

Risk-weighted assets
(D)
18,435,220

 
17,998,277

 
17,362,622

 
17,133,084

 
16,336,138

 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
(A)/(C)
7.9
%
 
8.1
%
 
8.2
%
 
8.1
%
 
8.2
%
Tier 1 risk-based capital ratio
(A)/(D)
12.0
%
 
12.1
%
 
12.5
%
 
12.0
%
 
12.2
%
Total risk-based capital ratio
(B)/(D)
12.5
%
 
12.6
%
 
12.9
%
 
12.4
%
 
12.7
%
 
 
 
 
 
 
 
 
 
 
 
Regulatory Capital (EFC consolidated)
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Shareholders’ equity
 
$
1,895,556

 
$
1,857,359

 
$
1,855,903

 
$
1,868,321

 
$
1,822,869

Less:
Preferred stock
 
(150,000
)
 
(150,000
)
 
(150,000
)
 
(150,000
)
 
(150,000
)
 
Goodwill and other intangibles
 
(47,227
)
 
(47,318
)
 
(47,401
)
 
(47,143
)
 
(47,198
)
 
Disallowed servicing asset
 
(3,060
)
 
(16,132
)
 
(33,609
)
 
(30,959
)
 
(39,838
)
Add:
Accumulated losses on securities and cash flow hedges
 
100,833

 
108,733

 
96,789

 
64,013

 
72,716

Common tier 1 capital
(E)
1,796,102

 
1,752,642

 
1,721,682

 
1,704,232

 
1,658,549

Add:
Preferred stock
 
150,000

 
150,000

 
150,000

 
150,000

 
150,000

Add:
Additional tier 1 capital (trust preferred securities)
 
98,750

 
98,750

 
103,750

 
103,750

 
103,750

Tier 1 capital
(F)
2,044,852

 
2,001,392

 
1,975,432

 
1,957,982

 
1,912,299

Add:
Subordinated notes payable
 
261,428

 
261,329

 
261,417

 
172,420

 
172,353

Add:
Allowance for loan and lease losses
 
90,948

 
84,994

 
84,134

 
78,789

 
72,653

Total regulatory capital
(G)
$
2,397,228

 
$
2,347,715

 
$
2,320,983

 
$
2,209,191

 
$
2,157,305

 
 
 
 
 
 
 
 
 
 
 
Adjusted total assets
(H)
$
28,192,055

 
$
26,917,493

 
$
26,220,573

 
$
25,286,802

 
$
24,429,012

Risk-weighted assets
(I)
18,448,080

 
17,990,693

 
17,349,099

 
17,131,756

 
16,327,166

 
 
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 ratio
(E)/(I)
9.7
%
 
9.7
%
 
9.9
%
 
9.9
%
 
10.2
%
Tier 1 leverage ratio
(F)/(H)
7.3
%
 
7.4
%
 
7.5
%
 
7.7
%
 
7.8
%
Tier 1 risk-based capital ratio
(F)/(I)
11.1
%
 
11.1
%
 
11.4
%
 
11.4
%
 
11.7
%
Total risk-based capital ratio
(G)/(I)
13.0
%
 
13.0
%
 
13.4
%
 
12.9
%
 
13.2
%




EverBank Financial Corp and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Tangible Equity, Tangible Common Equity, Tangible Common Equity Per Common Share and Tangible Assets
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except share and per share amounts)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Shareholders’ equity
 
$
1,895,556

 
$
1,857,359

 
$
1,855,903

 
$
1,868,321

 
$
1,822,869

Less:
 
 
 
 
 
 
 
 
 
 
Goodwill
 
46,859

 
46,859

 
46,859

 
46,859

 
46,859

Intangible assets
 
1,176

 
1,355

 
1,535

 
1,772

 
2,124

Tangible equity
 
1,847,521

 
1,809,145

 
1,807,509

 
1,819,690

 
1,773,886

Less:
 
 
 
 
 
 
 
 
 
 
Perpetual preferred stock
 
150,000

 
150,000

 
150,000

 
150,000

 
150,000

Tangible common equity
 
$
1,697,521

 
$
1,659,145

 
$
1,657,509

 
$
1,669,690

 
$
1,623,886

 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding at period end
 
125,437,973

 
125,324,413

 
125,247,099

 
125,020,843

 
124,954,523

Book value per common share
 
$
13.92

 
$
13.62

 
$
13.62

 
$
13.74

 
$
13.39

Tangible common equity per common share
 
13.53

 
13.24

 
13.23

 
13.36

 
13.00

 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
28,703,045

 
$
27,354,310

 
$
26,641,399

 
$
26,601,026

 
$
25,214,743

Less:
 
 
 
 
 
 
 
 
 
 
Goodwill
 
46,859

 
46,859

 
46,859

 
46,859

 
46,859

Intangible assets
 
1,176

 
1,355

 
1,535

 
1,772

 
2,124

Tangible assets
 
$
28,655,010

 
$
27,306,096

 
$
26,593,005

 
$
26,552,395

 
$
25,165,760

 
 
 
 
 
 
 
 
 
 
 
Non-Performing Assets(1)
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Non-accrual loans and leases:
 
 
 
 
 
 
 
 
 
 
Consumer Banking:
 
 
 
 
 
 
 
 
 
 
Residential mortgages
 
$
33,607

 
$
27,580

 
$
28,644

 
$
32,218

 
$
27,322

Home equity lines and other
 
6,741

 
6,678

 
6,151

 
3,339

 
4,191

Commercial Banking:
 
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate
 
106,790

 
65,962

 
66,945

 
71,913

 
78,801

Equipment financing receivables
 
37,677

 
28,833

 
26,676

 
17,407

 
13,661

Total non-accrual loans and leases
 
184,815

 
129,053

 
128,416

 
124,877

 
123,975

Accruing loans 90 days or more past due
 
—

 
—

 
—

 
—

 
—

Total non-performing loans (NPL)
 
184,815

 
129,053

 
128,416

 
124,877

 
123,975

Other real estate owned (OREO)
 
11,866

 
13,477

 
14,072

 
17,253

 
15,491

Total non-performing assets (NPA)
 
196,681

 
142,530

 
142,488

 
142,130

 
139,466

Troubled debt restructurings (TDR) less than 90 days past due
 
14,865

 
14,760

 
15,814

 
16,425

 
16,558

Total NPA and TDR(1)
 
$
211,546

 
$
157,290

 
$
158,302

 
$
158,555

 
$
156,024

 
 
 
 
 
 
 
 
 
 
 
Total NPA and TDR
 
$
211,546

 
$
157,290

 
$
158,302

 
$
158,555

 
$
156,024

Government insured 90 days or more past due still accruing
 
3,706,213

 
3,211,913

 
3,255,744

 
3,199,978

 
2,814,506

Loans accounted for under ASC 310-30:
 
 
 
 
 
 
 
 
 
 
90 days or more past due
 
3,823

 
4,130

 
4,858

 
5,148

 
4,871

Total regulatory NPA and TDR
 
$
3,921,582

 
$
3,373,333

 
$
3,418,904

 
$
3,363,681

 
$
2,975,401

Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30: (1)
 
 
 
 
 
 
 
 
 
 
NPL to total loans
 
0.71
%
 
0.52
%
 
0.54
%
 
0.53
%
 
0.56
%
NPA to total assets
 
0.69
%
 
0.52
%
 
0.53
%
 
0.53
%
 
0.55
%
NPA and TDR to total assets
 
0.74
%
 
0.58
%
 
0.59
%
 
0.60
%
 
0.62
%
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30:
 
 
 
 
 
 
 
 
 
 
NPL to total loans
 
15.01
%
 
13.59
%
 
14.23
%
 
14.08
%
 
13.21
%
NPA to total assets
 
13.61
%
 
12.28
%
 
12.77
%
 
12.58
%
 
11.73
%
NPA and TDR to total assets
 
13.66
%
 
12.33
%
 
12.83
%
 
12.64
%
 
11.80
%
 
(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
 
 
 
 
 
 
 
 
 
 
 
Business Segments Selected Financial Information
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Consumer Banking
 
Commercial Banking
 
Corporate
Services
 
Eliminations
 
Consolidated
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
108,948

 
$
85,879

 
$
(5,192
)
 
$
—

 
$
189,635

Provision for loan and lease losses
 
3,088

 
8,982

 
—

 
—

 
12,070

Net interest income after provision for loan and lease losses
 
105,860

 
76,897

 
(5,192
)
 
—

 
177,565

Noninterest income
 
34,171

 
9,019

 
144

 
—

 
43,334

Noninterest expense
 
93,510

 
31,317

 
36,938

 
—

 
161,765

Income (loss) before income tax
 
46,521

 
54,599

 
(41,986
)
 
—

 
59,134

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
Gain on repurchase of trust preferred securities
 
—

 
—

 
—

 
—

 
—

Transaction expense and non-recurring regulatory related expense
 
216

 
—

 
6,591

 
—

 
6,807

Increase (decrease) in Bank of Florida non-accretable discount
 
—

 
—

 
—

 
—

 
—

MSR impairment (recovery)
 
23,170

 
—

 
—

 
—

 
23,170

Restructuring cost
 
(2,246
)
 
(366
)
 
49

 
—

 
(2,563
)
Adjusted income (loss) before income tax
 
$
67,661

 
$
54,233

 
$
(35,346
)
 
$
—

 
$
86,548

Total assets as of September 30, 2016
 
$
17,622,499

 
$
11,226,918

 
$
253,058

 
$
(399,430
)
 
$
28,703,045

Total deposits as of September 30, 2016
 
15,268,033

 
4,375,315

 
—

 
—

 
19,643,348

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
99,370

 
$
83,141

 
$
(5,071
)
 
$
—

 
$
177,440

Provision for loan and lease losses
 
1,068

 
4,944

 
—

 
—

 
6,012

Net interest income after provision for loan and lease losses
 
98,302

 
78,197

 
(5,071
)
 
—

 
171,428

Noninterest income
 
5,225

 
12,389

 
1,554

 
—

 
19,168

Noninterest expense
 
93,485

 
33,790

 
28,565

 
—

 
155,840

Income (loss) before income tax
 
10,042

 
56,796

 
(32,082
)
 
—

 
34,756

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
Gain on repurchase of trust preferred securities
 
—

 
—

 
(1,478
)
 
—

 
(1,478
)
Transaction expense and non-recurring regulatory related expense
 
148

 
—

 
154

 
—

 
302

Increase (decrease) in Bank of Florida non-accretable discount
 
—

 
(324
)
 
—

 
—

 
(324
)
MSR impairment (recovery)
 
36,872

 
—

 
—

 
—

 
36,872

Restructuring cost
 
(1,538
)
 
759

 
66

 
—

 
(713
)
Adjusted income (loss) before income tax
 
$
45,524

 
$
57,231

 
$
(33,340
)
 
$
—

 
$
69,415

Total assets as of June 30, 2016
 
$
16,514,624

 
$
11,037,749

 
$
259,250

 
$
(457,313
)
 
$
27,354,310

Total deposits as of June 30, 2016
 
14,787,822

 
4,023,940

 
—

 
—

 
18,811,762

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
92,157

 
$
80,790

 
$
(4,107
)
 
$
—

 
$
168,840

Provision for loan and lease losses
 
3,091

 
8,040

 
—

 
—

 
11,131

Net interest income after provision for loan and lease losses
 
89,066

 
72,750

 
(4,107
)
 
—

 
157,709

Noninterest income
 
32,847

 
8,204

 
144

 
—

 
41,195

Noninterest expense
 
94,014

 
30,386

 
27,106

 
—

 
151,506

Income (loss) before income tax
 
27,899

 
50,568

 
(31,069
)
 
—

 
47,398

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
Transaction expense and non-recurring regulatory related expense
 
(921
)
 
—

 
(343
)
 
—

 
(1,264
)
Increase (decrease) in Bank of Florida non-accretable discount
 
(44
)
 
(39
)
 
—

 
—

 
(83
)
MSR impairment (recovery)
 
4,450

 
—

 
—

 
—

 
4,450

Restructuring cost
 
(360
)
 
—

 
—

 
—

 
(360
)
Adjusted income (loss) before income tax
 
$
31,024

 
$
50,529

 
$
(31,412
)
 
$
—

 
$
50,141

Total assets as of September 30, 2015
 
$
15,649,933

 
$
9,678,171

 
$
274,938

 
$
(388,299
)
 
$
25,214,743

Total deposits as of September 30, 2015
 
13,518,818

 
4,047,271

 
—

 
—

 
17,566,089




 EX-99.2 3 ex992quarterlyfinancialtab.htm EXHIBIT 99.2 Exhibit


Exhibit 99.2


EverBank Financial Corp and Subsidiaries
Quarterly Financial Tables
September 30, 2016






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 9a
Allowance for Loan and Lease Losses Activity
 
 
 
 
Table 9b
Allowance for Loan and Lease Losses Ratio
 
 
 
 
Table 10
Reconciliation of Non-GAAP Measures
 
 
 
 
 
 
Table 10a
Adjusted Net Income
 
 
Table 10b
Adjusted Efficiency Ratio
 
 
Table 10c
Regulatory Capital (bank level)
 
 
Table 10d
Regulatory Capital (EFC consolidated)
 
 
Table 10e
Tangible Equity, Tangible Common Equity, Tangible Common Equity Per Common Share and Tangible Assets
 
 
 
 
 
Table 11
Residential Mortgage Lending



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,
2016
 
Jun 30,
2016
 
Sep 30,
2015
 
Sep 30,
2016
 
Sep 30,
2015
Operating Results:
 
 
 
 
 
 
 
 
 
Total revenue(1)
$
232,969

 
$
196,608

 
$
210,035

 
$
633,111

 
$
650,833

Net interest income
189,635

 
177,440

 
168,840

 
540,856

 
493,303

Provision for loan and lease losses
12,070

 
6,012

 
11,131

 
27,001

 
28,063

Noninterest income
43,334

 
19,168

 
41,195

 
92,255

 
157,530

Noninterest expense
161,765

 
155,840

 
151,506

 
467,035

 
485,516

Net income allocated to common shareholders
34,599

 
19,024

 
27,051

 
79,016

 
77,786

Net earnings per common share, diluted
0.27

 
0.15

 
0.21

 
0.62

 
0.61

Performance Metrics:
 
 
 
 
 
 
 
 
 
Adjusted net earnings per common share, diluted(2)
$
0.40

 
$
0.32

 
$
0.23

 
$
1.04

 
$
0.88

Yield on interest-earning assets
3.81
%
 
3.81
%
 
3.85
%
 
3.82
%
 
3.94
%
Cost of interest-bearing liabilities
1.11
%
 
1.15
%
 
1.03
%
 
1.13
%
 
1.01
%
Net interest margin
2.81
%
 
2.80
%
 
2.90
%
 
2.81
%
 
3.03
%
Return on average assets
0.53
%
 
0.32
%
 
0.48
%
 
0.43
%
 
0.49
%
Return on average risk-weighted assets(3)
0.82
%
 
0.49
%
 
0.74
%
 
0.65
%
 
0.76
%
Return on average equity(4)
8.0
%
 
4.4
%
 
6.5
%
 
6.1
%
 
6.3
%
Adjusted return on average equity(5)
11.9
%
 
9.4
%
 
6.9
%
 
10.2
%
 
9.1
%
Efficiency ratio(6) 
69
%
 
79
%
 
72
%
 
74
%
 
75
%
Adjusted efficiency ratio(7)
61
%
 
67
%
 
71
%
 
65
%
 
68
%
Loans and leases held for investment as a percentage of deposits
122
%
 
123
%
 
119
%
 
122
%
 
119
%
Loans and leases held for investment excluding government insured pool buyouts as a percentage of deposits
96
%
 
100
%
 
96
%
 
96
%
 
96
%
Credit Quality Ratios:
 
 
 
 
 
 
 
 
 
Adjusted non-performing assets as a percentage of total assets(8)
0.69
%
 
0.52
%
 
0.55
%
 
0.69
%
 
0.55
%
Net charge-offs to average loans and leases held for investment
0.10
%
 
0.09
%
 
0.11
%
 
0.09
%
 
0.12
%
ALLL as a percentage of loans and leases held for investment
0.38
%
 
0.36
%
 
0.34
%
 
0.38
%
 
0.34
%
Government insured pool buyouts as a percentage of loans and leases held for investment
21
%
 
19
%
 
19
%
 
21
%
 
19
%
Capital:
 
 
 
 
 
 
 
 
 
Common equity tier 1 ratio (EFC consolidated; see Table 10d)
9.7
%
 
9.7
%
 
10.2
%
 
9.7
%
 
10.2
%
Tier 1 leverage ratio (bank level; see Table 10c)
7.9
%
 
8.1
%
 
8.2
%
 
7.9
%
 
8.2
%
Total risk-based capital ratio (bank level; see Table 10c)
12.5
%
 
12.6
%
 
12.7
%
 
12.5
%
 
12.7
%
Tangible common equity per common share(9)
$
13.53

 
$
13.24

 
$
13.00

 
$
13.53

 
$
13.00

Consumer Banking Metrics:
 
 
 
 
 
 
 
 
 
Unpaid principal balance of loans originated
$
2,531,539

 
$
2,405,643

 
$
2,292,027

 
$
6,734,314

 
$
7,375,577

Jumbo residential mortgage loans originated
869,808

 
883,252

 
1,219,349

 
2,477,597

 
3,978,392

Unpaid principal balance of loans serviced for the Company and others
40,322,771

 
40,474,814

 
44,347,242

 
40,322,771

 
44,347,242

Consumer Banking loans as a percentage of loans and leases held for investment
54
%
 
54
%
 
56
%
 
54
%
 
56
%
Consumer deposits
$
15,268,033

 
$
14,787,822

 
$
13,518,818

 
$
15,268,033

 
$
13,518,818

Commercial Banking Metrics:
 
 
 
 
 
 
 
 
 
Loan and lease originations:
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate
$
444,468

 
$
357,733

 
$
648,993

 
$
1,167,179

 
$
1,595,134

Equipment financing receivables
329,499

 
318,033

 
345,490

 
947,282

 
862,285

Commercial Banking loan and lease sales
90,521

 
236,016

 
61,666

 
604,275

 
201,877

Commercial Banking loans as a percentage of loans and leases held for investment
46
%
 
46
%
 
44
%
 
46
%
 
44
%
Commercial deposits
$
4,375,315

 
$
4,023,940

 
$
4,047,271

 
$
4,375,315

 
$
4,047,271

Market Price Per Share of Common Stock:
 
 
 
 
 
 
 
 
 
Closing
$
19.36

 
$
14.86

 
$
19.30

 
$
19.36

 
$
19.30

High
19.36

 
15.78

 
20.69

 
19.36

 
20.69

Low
14.16

 
13.61

 
19.06

 
12.58

 
17.24


See Notes to Financial Highlights

2


EverBank Financial Corp and Subsidiaries
Financial Highlights - Notes
(Dollars in thousands)
 
(1)
Total revenue is defined as net interest income before provision for loan and lease losses and total noninterest income.
(2)
Adjusted net earnings per common share, diluted is calculated using a numerator based on adjusted net income. Adjusted net earnings per common share, diluted is a non-GAAP financial measure and its most directly comparable GAAP measure is net earnings per common share, diluted. Adjusted net income includes adjustments to our net income for certain significant items that we believe are not reflective of our ongoing business or operating performance. For a reconciliation of adjusted net income to net income, which is the most directly comparable GAAP measure, see Table 10a.
(3)
Return on average risk-weighted assets equals net income divided by average risk-weighted assets. Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets. For detailed information regarding regulatory capital (EFC consolidated), see Table 10d.
(4)
Return on average equity is calculated as net income less dividends declared on the Series A 6.75% Non-Cumulative Perpetual Preferred Stock divided by average common shareholders' equity (average shareholders' equity less average Series A 6.75% Non-Cumulative Perpetual Preferred Stock).
(5)
Adjusted return on average equity is calculated as adjusted net income less dividends declared on the Series A 6.75% Non-Cumulative Perpetual Preferred Stock divided by average common shareholders' equity. Adjusted net income is a non-GAAP measure of our financial performance and its most directly comparable GAAP measure is net income. For a reconciliation of adjusted net income to net income, see Table 10a.
(6)
The efficiency ratio represents noninterest expense as a percentage of total revenue. We use the efficiency ratio to measure noninterest costs expended to generate a dollar of revenue.
(7)
The adjusted efficiency ratio represents adjusted noninterest expense as a percentage of adjusted total revenue based on adjusted net income. The adjusted efficiency ratio is a non-GAAP measure of our financial performance and its most directly comparable GAAP measure is the efficiency ratio. For a reconciliation of adjusted net income to net income, see Table 10a. For detailed information regarding the adjusted efficiency ratio, see Table 10b. We use the adjusted efficiency ratio to measure adjusted noninterest costs expended to generate a dollar of adjusted revenue.
(8)
We define non-performing assets, or NPA, as non-accrual loans, accruing loans past due 90 days or more and foreclosed property. Our NPA calculation excludes government insured pool buyout loans for which payment is insured by the government. We also exclude loans and foreclosed property accounted for under ASC 310-30 because we expect to fully collect the carrying value of such loans and foreclosed property. For more detailed information on NPA, see Table 8.
(9)
Calculated as tangible common shareholders' equity divided by shares of common stock. Tangible common shareholders' equity equals shareholders' equity less goodwill, other intangible assets and perpetual preferred stock (see Table 10e). Tangible common equity per common share is calculated using a denominator that includes actual period end common shares outstanding. Tangible common equity per common share is a non-GAAP financial measure, and its most directly comparable GAAP financial measure is book value per common share.




3


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,
2016
 
Jun 30,
2016
 
Sep 30,
2015
 
Sep 30,
2016
 
Sep 30,
2015
Interest Income
 
 
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
249,601

 
$
236,168

 
$
215,881

 
$
716,828

 
$
621,077

Interest and dividends on investment securities
6,719

 
6,965

 
7,520

 
21,088

 
22,989

Other interest income
568

 
385

 
226

 
1,349

 
545

Total interest income
256,888

 
243,518

 
223,627

 
739,265

 
644,611

Interest Expense
 
 
 
 
 
 
 
 
 
Deposits
39,272

 
39,078

 
31,921

 
117,440

 
91,904

Other borrowings
27,981

 
27,000

 
22,866

 
80,969

 
59,404

Total interest expense
67,253

 
66,078

 
54,787

 
198,409

 
151,308

Net Interest Income
189,635

 
177,440

 
168,840

 
540,856

 
493,303

Provision for loan and lease losses
12,070

 
6,012

 
11,131

 
27,001

 
28,063

Net Interest Income after Provision for Loan and Lease Losses
177,565

 
171,428

 
157,709

 
513,855

 
465,240

Noninterest Income
 
 
 
 
 
 
 
 
 
Loan servicing fee income
23,637

 
22,814

 
27,157

 
69,892

 
90,858

Amortization of mortgage servicing rights
(19,176
)
 
(16,550
)
 
(16,760
)
 
(50,457
)
 
(56,065
)
Recovery (impairment) of mortgage servicing rights
(23,170
)
 
(36,872
)
 
(4,450
)
 
(82,584
)
 
(32,075
)
Net loan servicing income (loss)
(18,709
)
 
(30,608
)
 
5,947

 
(63,149
)
 
2,718

Gain on sale of loans
43,101

 
31,973

 
18,037

 
103,825

 
101,248

Loan production revenue
7,231

 
6,729

 
5,861

 
19,220

 
17,443

Deposit fee income
2,059

 
1,953

 
3,844

 
7,114

 
10,946

Other lease income
3,919

 
3,316

 
3,714

 
11,602

 
9,876

Other
5,733

 
5,805

 
3,792

 
13,643

 
15,299

Total noninterest income
43,334

 
19,168

 
41,195

 
92,255

 
157,530

Noninterest Expense
 
 
 
 
 
 
 
 
 
Salaries, commissions and other employee benefits expense
94,052

 
94,922

 
89,369

 
280,614

 
277,124

Equipment expense
15,833

 
16,052

 
15,576

 
47,802

 
46,879

Occupancy expense
6,298

 
7,266

 
6,679

 
19,828

 
19,691

General and administrative expense
45,582

 
37,600

 
39,882

 
118,791

 
141,822

Total noninterest expense
161,765

 
155,840

 
151,506

 
467,035

 
485,516

Income before Provision for Income Taxes
59,134

 
34,756

 
47,398

 
139,075

 
137,254

Provision for Income Taxes
22,003

 
13,201

 
17,815

 
52,465

 
51,874

Net Income
$
37,131

 
$
21,555

 
$
29,583

 
$
86,610

 
$
85,380

Net Income Allocated to Preferred Stock
(2,532
)
 
(2,531
)
 
(2,532
)
 
(7,594
)
 
(7,594
)
Net Income Allocated to Common Shareholders
$
34,599

 
$
19,024

 
$
27,051

 
$
79,016

 
$
77,786

Net Earnings per Common Share, Basic
$
0.28

 
$
0.15

 
$
0.22

 
$
0.63

 
$
0.63

Net Earnings per Common Share, Diluted
$
0.27

 
$
0.15

 
$
0.21

 
$
0.62

 
$
0.61

Dividends Declared per Common Share
$
0.06

 
$
0.06

 
$
0.06

 
$
0.18

 
$
0.14

Dividend payout ratio(1)
21.43
%
 
40.00
%
 
27.27
%
 
28.57
%
 
22.22
%
Weighted Average Common Shares Outstanding
 
 
 
 
 
 
 
 
 
(units in thousands)
 
 
 
 
 
 
 
 
 
Basic
125,382

 
125,294

 
124,823

 
125,267

 
124,373

Diluted
127,453

 
126,612

 
127,099

 
126,699

 
126,568


(1)
Dividend payout ratio is calculated as dividends declared per common share divided by basic earnings per common share.


4


EverBank Financial Corp and Subsidiaries
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
Table 3

(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Assets
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
54,380

 
$
62,512

 
$
90,478

 
$
55,300

 
$
64,822

Interest-bearing deposits in banks
534,284

 
559,434

 
510,167

 
527,151

 
534,354

Total cash and cash equivalents
588,664

 
621,946

 
600,645

 
582,451

 
599,176

Investment securities:
 
 
 
 
 
 
 
 
 
Available for sale, at fair value
486,902

 
461,141

 
504,769

 
555,019

 
574,104

Held to maturity
100,928

 
104,205

 
101,305

 
103,746

 
112,219

Other investments
294,710

 
271,606

 
234,406

 
265,431

 
240,832

Total investment securities
882,540

 
836,952

 
840,480

 
924,196

 
927,155

Loans held for sale
2,112,855

 
1,485,747

 
1,137,702

 
1,509,268

 
1,483,754

Loans and leases held for investment:
 
 
 
 
 
 
 
 
 
Loans and leases held for investment, net of unearned income
23,932,724

 
23,218,614

 
22,756,113

 
22,227,492

 
20,877,381

Allowance for loan and lease losses
(90,170
)
 
(84,250
)
 
(83,485
)
 
(78,137
)
 
(71,897
)
Total loans and leases held for investment, net
23,842,554

 
23,134,364

 
22,672,628

 
22,149,355

 
20,805,484

Mortgage servicing rights (MSR), net
249,106

 
274,356

 
312,671

 
335,280

 
357,550

Premises and equipment, net
46,525

 
48,486

 
50,901

 
51,599

 
52,425

Other assets
980,801

 
952,459

 
1,026,372

 
1,048,877

 
989,199

Total Assets
$
28,703,045

 
$
27,354,310

 
$
26,641,399

 
$
26,601,026

 
$
25,214,743

Liabilities
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
Noninterest-bearing
$
2,071,154

 
$
1,510,198

 
$
1,499,063

 
$
1,141,357

 
$
1,389,644

Interest-bearing
17,572,194

 
17,301,564

 
17,497,414

 
17,100,685

 
16,176,445

Total deposits
19,643,348

 
18,811,762

 
18,996,477

 
18,242,042

 
17,566,089

Other borrowings
6,487,000

 
6,022,000

 
5,147,000

 
5,877,000

 
5,297,000

Trust preferred securities and subordinated notes payable
360,179

 
360,079

 
365,167

 
276,170

 
276,103

Accounts payable and accrued liabilities
316,962

 
303,110

 
276,852

 
337,493

 
252,682

Total Liabilities
26,807,489

 
25,496,951

 
24,785,496

 
24,732,705

 
23,391,874

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

 
150,000

 
150,000

 
150,000

 
150,000

Common Stock
1,254

 
1,253

 
1,252

 
1,250

 
1,250

Additional paid-in capital
882,386

 
879,169

 
877,275

 
874,806

 
873,175

Retained earnings
962,749

 
935,670

 
924,165

 
906,278

 
871,160

Accumulated other comprehensive loss
(100,833
)
 
(108,733
)
 
(96,789
)
 
(64,013
)
 
(72,716
)
Total Shareholders’ Equity
1,895,556

 
1,857,359

 
1,855,903

 
1,868,321

 
1,822,869

Total Liabilities and Shareholders’ Equity
$
28,703,045

 
$
27,354,310

 
$
26,641,399

 
$
26,601,026

 
$
25,214,743


5


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, 2016
 
 
 
 
 
 
 
 
 
Net interest income
$
108,948

 
$
85,879

 
$
(5,192
)
 
$
—

 
$
189,635

Provision for loan and lease losses
3,088

 
8,982

 
—

 
—

 
12,070

Net interest income after provision for loan and lease losses
105,860

 
76,897

 
(5,192
)
 
—

 
177,565

Noninterest income
34,171

 
9,019

 
144

 
—

 
43,334

Noninterest expense
93,510

 
31,317

 
36,938

 
—

 
161,765

Income (loss) before income tax
46,521

 
54,599

 
(41,986
)
 
—

 
59,134

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
Gain on repurchase of trust preferred securities
—

 
—

 
—

 
—

 
—

Transaction expense and non-recurring regulatory related expense
216

 
—

 
6,591

 
—

 
6,807

Increase (decrease) in Bank of Florida non-accretable discount
—

 
—

 
—

 
—

 
—

MSR impairment (recovery)
23,170

 
—

 
—

 
—

 
23,170

Restructuring cost
(2,246
)
 
(366
)
 
49

 
—

 
(2,563
)
Adjusted income (loss) before income tax
$
67,661

 
$
54,233

 
$
(35,346
)
 
$
—

 
$
86,548

Total assets as of September 30, 2016
$
17,622,499

 
$
11,226,918

 
$
253,058

 
$
(399,430
)
 
$
28,703,045

Total deposits as of September 30, 2016
15,268,033

 
4,375,315

 
—

 
—

 
19,643,348

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
Net interest income
$
99,370

 
$
83,141

 
$
(5,071
)
 
$
—

 
$
177,440

Provision for loan and lease losses
1,068

 
4,944

 
—

 
—

 
6,012

Net interest income after provision for loan and lease losses
98,302

 
78,197

 
(5,071
)
 
—

 
171,428

Noninterest income
5,225

 
12,389

 
1,554

 
—

 
19,168

Noninterest expense
93,485

 
33,790

 
28,565

 
—

 
155,840

Income (loss) before income tax
10,042

 
56,796

 
(32,082
)
 
—

 
34,756

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
Gain on repurchase of trust preferred securities
—

 
—

 
(1,478
)
 
—

 
(1,478
)
Transaction expense and non-recurring regulatory related expense
148

 
—

 
154

 
—

 
302

Increase (decrease) in Bank of Florida non-accretable discount
—

 
(324
)
 
—

 
—

 
(324
)
MSR impairment (recovery)
36,872

 
—

 
—

 
—

 
36,872

Restructuring cost
(1,538
)
 
759

 
66

 
—

 
(713
)
Adjusted income (loss) before income tax
$
45,524

 
$
57,231

 
$
(33,340
)
 
$
—

 
$
69,415

Total assets as of June 30, 2016
$
16,514,624

 
$
11,037,749

 
$
259,250

 
$
(457,313
)
 
$
27,354,310

Total deposits as of June 30, 2016
14,787,822

 
4,023,940

 
—

 
—

 
18,811,762

 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
Net interest income
$
92,157

 
$
80,790

 
$
(4,107
)
 
$
—

 
$
168,840

Provision for loan and lease losses
3,091

 
8,040

 
—

 
—

 
11,131

Net interest income after provision for loan and lease losses
89,066

 
72,750

 
(4,107
)
 
—

 
157,709

Noninterest income
32,847

 
8,204

 
144

 
—

 
41,195

Noninterest expense
94,014

 
30,386

 
27,106

 
—

 
151,506

Income (loss) before income tax
27,899

 
50,568

 
(31,069
)
 
—

 
47,398

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
Transaction expense and non-recurring regulatory related expense
(921
)
 
—

 
(343
)
 
—

 
(1,264
)
Increase (decrease) in Bank of Florida non-accretable discount
(44
)
 
(39
)
 
—

 
—

 
(83
)
MSR impairment (recovery)
4,450

 
—

 
—

 
—

 
4,450

Restructuring cost
(360
)
 
—

 
—

 
—

 
(360
)
Adjusted income (loss) before income tax
$
31,024

 
$
50,529

 
$
(31,412
)
 
$
—

 
$
50,141

Total assets as of September 30, 2015
$
15,649,933

 
$
9,678,171

 
$
274,938

 
$
(388,299
)
 
$
25,214,743

Total deposits as of September 30, 2015
13,518,818

 
4,047,271

 
—

 
—

 
17,566,089



6


EverBank Financial Corp and Subsidiaries
 
 
Average Balances and Interest Rates(1) (2) (3)
 
 
 
 
 
 
 
 
 
 
 
Table 5
 
 
Three Months Ended
September 30, 2016
 
Three Months Ended
June 30, 2016
 
Three Months Ended
September 30, 2015
(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
$
444,504

 
$
568

 
0.51
%
 
$
303,129

 
$
385

 
0.51
%
 
$
351,834

 
$
226

 
0.26
%
Investments
855,451

 
6,719

 
3.13
%
 
838,777

 
6,965

 
3.33
%
 
995,467

 
7,520

 
3.01
%
Loans held for sale
2,042,414

 
16,798

 
3.29
%
 
1,874,252

 
15,125

 
3.23
%
 
1,740,497

 
14,529

 
3.34
%
Loans and leases held for investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Banking:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
6,741,757

 
53,398

 
3.17
%
 
6,824,775

 
53,376

 
3.13
%
 
6,901,559

 
55,895

 
3.24
%
Government insured pool buyouts
5,175,352

 
60,792

 
4.70
%
 
4,568,782

 
54,879

 
4.80
%
 
3,994,565

 
45,353

 
4.54
%
Residential mortgages
11,917,109

 
114,190

 
3.83
%
 
11,393,557

 
108,255

 
3.80
%
 
10,896,124

 
101,248

 
3.72
%
Home equity lines and other
1,086,805

 
10,030

 
3.67
%
 
928,021

 
8,230

 
3.57
%
 
255,315

 
2,900

 
4.51
%
Commercial Banking:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate and other commercial
3,819,895

 
47,530

 
4.93
%
 
3,901,421

 
47,397

 
4.84
%
 
3,832,593

 
50,346

 
5.21
%
Mortgage warehouse finance
2,664,319

 
19,241

 
2.83
%
 
2,475,149

 
17,325

 
2.77
%
 
1,862,290

 
12,707

 
2.67
%
Lender finance
1,510,827

 
13,931

 
3.61
%
 
1,356,091

 
11,927

 
3.48
%
 
1,023,005

 
8,985

 
3.44
%
Commercial and commercial real estate
7,995,041

 
80,702

 
3.98
%
 
7,732,661

 
76,649

 
3.94
%
 
6,717,888

 
72,038

 
4.24
%
Equipment financing receivables
2,477,319

 
27,881

 
4.50
%
 
2,415,338

 
27,909

 
4.62
%
 
2,173,960

 
25,166

 
4.63
%
Total loans and leases held for investment
23,476,274

 
232,803

 
3.95
%
 
22,469,577

 
221,043

 
3.93
%
 
20,043,287

 
201,352

 
4.00
%
Total interest-earning assets
26,818,643

 
$
256,888

 
3.81
%
 
25,485,735

 
$
243,518

 
3.81
%
 
23,131,085

 
$
223,627

 
3.85
%
Noninterest-earning assets
1,318,167

 
 
 
 
 
1,380,992

 
 
 
 
 
1,309,468

 
 
 
 
Total assets
$
28,136,810

 
 
 
 
 
$
26,866,727

 
 
 
 
 
$
24,440,553

 
 
 
 
Liabilities and Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand
$
3,678,495

 
$
6,146

 
0.66
%
 
$
3,730,252

 
$
6,282

 
0.68
%
 
$
3,625,255

 
$
6,214

 
0.68
%
Market-based money market accounts
355,485

 
545

 
0.61
%
 
359,728

 
546

 
0.61
%
 
365,005

 
561

 
0.61
%
Savings and money market accounts, excluding market-based
6,416,744

 
11,465

 
0.71
%
 
6,594,527

 
12,339

 
0.75
%
 
5,457,507

 
9,063

 
0.66
%
Market-based time
337,811

 
725

 
0.85
%
 
355,069

 
760

 
0.86
%
 
390,975

 
610

 
0.62
%
Time, excluding market-based
6,591,170

 
20,391

 
1.24
%
 
6,114,552

 
19,151

 
1.26
%
 
5,527,481

 
15,473

 
1.11
%
Total deposits
17,379,705

 
39,272

 
0.90
%
 
17,154,128

 
39,078

 
0.92
%
 
15,366,223

 
31,921

 
0.82
%
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities and subordinated notes payable
360,114

 
5,313

 
5.90
%
 
363,475

 
5,243

 
5.77
%
 
276,234

 
4,192

 
6.07
%
Long-term FHLB advances
4,080,913

 
20,341

 
1.95
%
 
3,776,672

 
19,948

 
2.09
%
 
3,172,000

 
17,513

 
2.16
%
Short-term FHLB advances
2,199,185

 
2,327

 
0.41
%
 
1,757,143

 
1,809

 
0.41
%
 
2,252,174

 
1,161

 
0.20
%
Total borrowings
6,640,212

 
27,981

 
1.66
%
 
5,897,290

 
27,000

 
1.82
%
 
5,700,408

 
22,866

 
1.58
%
Total interest-bearing liabilities
24,019,917

 
67,253

 
1.11
%
 
23,051,418

 
66,078

 
1.15
%
 
21,066,631

 
54,787

 
1.03
%
Noninterest-bearing demand deposits
1,797,407

 
 
 
 
 
1,543,952

 
 
 
 
 
1,309,855

 
 
 
 
Other noninterest-bearing liabilities
435,392

 
 
 
 
 
403,991

 
 
 
 
 
239,823

 
 
 
 
Total liabilities
26,252,716

 
 
 
 
 
24,999,361

 
 
 
 
 
22,616,309

 
 
 
 
Total shareholders’ equity
1,884,094

 
 
 
 
 
1,867,366

 
 
 
 
 
1,824,244

 
 
 
 
Total liabilities and shareholders’ equity
$
28,136,810

 
 
 
 
 
$
26,866,727

 
 
 
 
 
$
24,440,553

 
 
 
 
Net interest income/spread
 
 
$
189,635

 
2.70
%
 
 
 
$
177,440

 
2.66
%
 
 
 
$
168,840

 
2.82
%
Net interest margin
 
 
 
 
2.81
%
 
 
 
 
 
2.80
%
 
 
 
 
 
2.90
%
Memo: Total deposits including noninterest-bearing
$
19,177,112

 
$
39,272

 
0.82
%
 
$
18,698,080

 
$
39,078

 
0.84
%
 
$
16,676,078

 
$
31,921

 
0.76
%

(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.



7


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

 
 
 
 
(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
 
 
 
 
Consumer Banking:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
6,653,526

 
$
6,961,746

 
$
7,254,377

 
$
7,501,767

 
$
7,364,522

 
 
 
 
Government insured pool buyouts
5,139,215

 
4,403,338

 
4,396,059

 
4,215,355

 
3,947,359

 
 
 
 
Residential mortgages
11,792,741

 
11,365,084

 
11,650,436

 
11,717,122

 
11,311,881

 
 
 
 
Home equity lines and other
1,173,155

 
1,073,656

 
917,856

 
501,785

 
337,093

 
 
 
 
Total Consumer Banking
12,965,896

 
12,438,740

 
12,568,292

 
12,218,907

 
11,648,974

 
 
 
 
Commercial Banking:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate and other commercial
3,882,297

 
3,831,432

 
3,883,821

 
3,954,522

 
3,660,362

 
 
 
 
Mortgage warehouse finance
3,076,511

 
3,035,329

 
2,603,163

 
2,372,731

 
2,162,627

 
 
 
 
Lender finance
1,495,585

 
1,450,638

 
1,300,254

 
1,280,423

 
1,117,886

 
 
 
 
Commercial and commercial real estate
8,454,393

 
8,317,399

 
7,787,238

 
7,607,676

 
6,940,875

 
 
 
 
Equipment financing receivables
2,512,435

 
2,462,475

 
2,400,583

 
2,400,909

 
2,287,532

 
 
 
 
Total Commercial Banking
10,966,828

 
10,779,874

 
10,187,821

 
10,008,585

 
9,228,407

 
 
 
 
Loans and leases held for investment, net of unearned income
23,932,724

 
23,218,614

 
22,756,113

 
22,227,492

 
20,877,381

 
 
 
 
Allowance for loan and lease losses
(90,170
)
 
(84,250
)
 
(83,485
)
 
(78,137
)
 
(71,897
)
 
 
 
 
Total loans and leases held for investment, net
$
23,842,554

 
$
23,134,364

 
$
22,672,628

 
$
22,149,355

 
$
20,805,484

 
 
 
 
The balances presented above include:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net purchased loan and lease discounts
$
82,560

 
$
71,636

 
$
63,250

 
$
45,770

 
$
43,166

 
 
 
 
Net deferred loan and lease origination costs
$
125,346

 
$
125,555

 
$
125,877

 
$
123,255

 
$
115,990

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
Table 6b    

 
 
 
 
(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
 
 
 
 
Noninterest-bearing demand
$
2,071,154

 
$
1,510,198

 
$
1,499,063

 
$
1,141,357

 
$
1,389,644

 
 
 
 
Interest-bearing demand
3,585,418

 
3,696,048

 
3,694,755

 
3,709,156

 
3,631,458

 
 
 
 
Market-based money market accounts
353,613

 
358,649

 
353,742

 
342,600

 
351,880

 
 
 
 
Savings and money market accounts, excluding market-based
6,271,548

 
6,478,326

 
6,892,789

 
6,338,685

 
5,734,451

 
 
 
 
Market-based time
327,472

 
341,993

 
358,566

 
374,171

 
379,967

 
 
 
 
Time, excluding market-based
7,034,143

 
6,426,548

 
6,197,562

 
6,336,073

 
6,078,689

 
 
 
 
Total deposits
$
19,643,348

 
$
18,811,762

 
$
18,996,477

 
$
18,242,042

 
$
17,566,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and Administrative Expense
 
 
 
 
 
 
 
 
 
 
 
Table 7

 
Three Months Ended
 
Nine Months Ended
(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
 
Sep 30,
2016
 
Sep 30,
2015
Legal and professional fees, excluding consent order expense
$
11,815

 
$
5,488

 
$
4,998

 
$
7,444

 
$
6,123

 
$
22,301

 
$
19,374

Credit-related expenses
6,862

 
6,388

 
4,907

 
7,261

 
7,340

 
18,157

 
21,898

FDIC premium assessment and other agency fees
8,097

 
6,903

 
7,241

 
7,198

 
7,066

 
22,241

 
19,948

Advertising and marketing expense
5,685

 
4,911

 
4,911

 
6,485

 
5,810

 
15,507

 
18,736

Subservicing expense
—

 
—

 
—

 
—

 
(103
)
 
—

 
5,033

Consent order expense
31

 
—

 
(341
)
 
463

 
(866
)
 
(310
)
 
2,038

Other
13,092

 
13,910

 
13,893

 
10,878

 
14,512

 
40,895

 
54,795

Total general and administrative expense
$
45,582

 
$
37,600

 
$
35,609

 
$
39,729

 
$
39,882

 
$
118,791

 
$
141,822


8


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

(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Non-accrual loans and leases:
 
 
 
 
 
 
 
 
 
Consumer Banking:
 
 
 
 
 
 
 
 
 
Residential mortgages
$
33,607

 
$
27,580

 
$
28,644

 
$
32,218

 
$
27,322

Home equity lines and other
6,741

 
6,678

 
6,151

 
3,339

 
4,191

Commercial Banking:
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate
106,790

 
65,962

 
66,945

 
71,913

 
78,801

Equipment financing receivables
37,677

 
28,833

 
26,676

 
17,407

 
13,661

Total non-accrual loans and leases
184,815

 
129,053

 
128,416

 
124,877

 
123,975

Total non-performing loans (NPL)
184,815

 
129,053

 
128,416

 
124,877

 
123,975

Other real estate owned (OREO)
11,866

 
13,477

 
14,072

 
17,253

 
15,491

Total non-performing assets (NPA)
196,681

 
142,530

 
142,488

 
142,130

 
139,466

Troubled debt restructurings (TDR) less than 90 days past due
14,865

 
14,760

 
15,814

 
16,425

 
16,558

Total NPA and TDR(1)
$
211,546

 
$
157,290

 
$
158,302

 
$
158,555

 
$
156,024

 
 
 
 
 
 
 
 
 
 
Total NPA and TDR
$
211,546

 
$
157,290

 
$
158,302

 
$
158,555

 
$
156,024

Government insured 90 days or more past due still accruing
3,706,213

 
3,211,913

 
3,255,744

 
3,199,978

 
2,814,506

Loans accounted for under ASC 310-30:
 
 
 
 
 
 
 
 
 
90 days or more past due
3,823

 
4,130

 
4,858

 
5,148

 
4,871

Total regulatory NPA and TDR
$
3,921,582

 
$
3,373,333

 
$
3,418,904

 
$
3,363,681

 
$
2,975,401

Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30:(1)
 
 
 
 
 
 
 
 
 
NPL to total loans
0.71
%
 
0.52
%
 
0.54
%
 
0.53
%
 
0.56
%
NPA to total assets
0.69
%
 
0.52
%
 
0.53
%
 
0.53
%
 
0.55
%
NPA and TDR to total assets
0.74
%
 
0.58
%
 
0.59
%
 
0.60
%
 
0.62
%
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30:
 
 
 
 
 
 
 
 
 
NPL to total loans
15.01
%
 
13.59
%
 
14.23
%
 
14.08
%
 
13.21
%
NPA to total assets
13.61
%
 
12.28
%
 
12.77
%
 
12.58
%
 
11.73
%
NPA and TDR to total assets
13.66
%
 
12.33
%
 
12.83
%
 
12.64
%
 
11.80
%
 
(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.

9


EverBank Financial Corp and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan and Lease Losses Activity
 
 
 
 
 
 
 
 
Table 9a

 
Three Months Ended
(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
ALLL, beginning of period
$
84,250

 
$
83,485

 
$
78,137

 
$
71,897

 
$
66,091

Charge-offs:
 
 
 
 
 
 
 
 
 
Consumer Banking:
 
 
 
 
 
 
 
 
 
Residential mortgages
2,290

 
2,176

 
1,845

 
1,527

 
2,630

Home equity lines and other
505

 
275

 
219

 
599

 
353

Commercial Banking:
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate
79

 
—

 
69

 
—

 
406

Equipment financing receivables
4,006

 
3,935

 
2,564

 
3,356

 
2,703

Total charge-offs
6,880

 
6,386

 
4,697

 
5,482

 
6,092

Recoveries:
 
 
 
 
 
 
 
 
 
Consumer Banking:
 
 
 
 
 
 
 
 
 
Residential mortgages
57

 
272

 
232

 
506

 
91

Home equity lines and other
52

 
69

 
80

 
88

 
70

Commercial Banking:
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate
133

 
4

 
77

 
216

 
4

Equipment financing receivables
488

 
794

 
737

 
788

 
602

Total recoveries
730

 
1,139

 
1,126

 
1,598

 
767

Net charge-offs
6,150

 
5,247

 
3,571

 
3,884

 
5,325

Provision for loan and lease losses
12,070

 
6,012

 
8,919

 
10,124

 
11,131

ALLL, end of period
$
90,170

 
$
84,250

 
$
83,485

 
$
78,137

 
$
71,897

Net charge-offs to average loans and leases held for investment
0.10
%
 
0.09
%
 
0.07
%
 
0.07
%
 
0.11
%
 
 
 
 
 
 
 
 
 
 
Allowance for Loan and Lease Losses Ratio
 
Table 9b    

(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
ALLL
$
90,170

 
$
84,250

 
$
83,485

 
$
78,137

 
$
71,897

Loans and leases held for investment, net of unearned income
23,932,724

 
23,218,614

 
22,756,113

 
22,227,492

 
20,877,381

ALLL as a percentage of loans and leases held for investment
0.38
%
 
0.36
%
 
0.37
%
 
0.35
%
 
0.34
%
Government insured pool buyouts as a percentage of loans and leases held for investment
21
%
 
19
%
 
19
%
 
19
%
 
19
%


10


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,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
 
Sep 30,
2016
 
Sep 30,
2015
Net income
$
37,131

 
$
21,555

 
$
27,924

 
$
45,146

 
$
29,583

 
$
86,610

 
$
85,380

Gain on repurchase of trust preferred securities, net of tax
—

 
(916
)
 
—

 
—

 
—

 
(916
)
 
—

Transaction expense and non-recurring regulatory related expense, net of tax
4,220

 
187

 
(43
)
 
(1,849
)
 
(784
)
 
4,364

 
4,459

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

 
(201
)
 
(14
)
 
—

 
(51
)
 
(215
)
 
(859
)
MSR impairment (recovery), net of tax
14,365

 
22,861

 
13,976

 
(55
)
 
2,758

 
51,202

 
19,886

Restructuring cost, net of tax
(1,589
)
 
(442
)
 
438

 
2,219

 
(222
)
 
(1,593
)
 
10,445

Adjusted net income
$
54,127

 
$
43,044

 
$
42,281

 
$
45,461

 
$
31,284

 
$
139,452

 
$
119,311

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
$
51,595

 
$
40,513

 
$
39,750

 
$
42,930

 
$
28,752

 
$
131,858

 
$
111,717

Adjusted net earnings per common share, basic
$
0.41

 
$
0.32

 
$
0.32

 
$
0.34

 
$
0.23

 
$
1.05

 
$
0.90

Adjusted net earnings per common share, diluted
$
0.40

 
$
0.32

 
$
0.32

 
$
0.34

 
$
0.23

 
$
1.04

 
$
0.88

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
(units in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
125,382

 
125,294

 
125,125

 
124,983

 
124,823

 
125,267

 
124,373

Diluted
127,453

 
126,612

 
126,045

 
126,980

 
127,099

 
126,699

 
126,568

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Efficiency Ratio
 
 
 
 
 
 
 
 
 
 
 
 
Table 10b

 
Three Months Ended
 
Nine Months Ended
(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
 
Sep 30,
2016
 
Sep 30,
2015
Net interest income
$
189,635

 
$
177,440

 
$
173,781

 
$
175,040

 
$
168,840

 
$
540,856

 
$
493,303

Noninterest income
43,334

 
19,168

 
29,753

 
57,850

 
41,195

 
92,255

 
157,530

Total revenue
232,969

 
196,608

 
203,534

 
232,890

 
210,035

 
633,111

 
650,833

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on repurchase of trust preferred securities
—

 
(1,478
)
 
—

 
—

 
—

 
(1,478
)
 
—

MSR impairment (recovery)
23,170

 
36,872

 
22,542

 
(89
)
 
4,450

 
82,584

 
32,075

Restructuring cost
—

 
(129
)
 
—

 
160

 
—

 
(129
)
 
96

Adjusted total revenue
$
256,139

 
$
231,873

 
$
226,076

 
$
232,961

 
$
214,485

 
$
714,088

 
$
683,004

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
$
161,765

 
$
155,840

 
$
149,430

 
$
152,861

 
$
151,506

 
$
467,035

 
$
485,516

Adjustment items (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction expense and non-recurring regulatory related expense
(6,806
)
 
(302
)
 
69

 
2,981

 
1,264

 
(7,039
)
 
(7,194
)
Restructuring cost
2,563

 
584

 
(706
)
 
(3,419
)
 
360

 
2,441

 
(16,748
)
Adjusted noninterest expense
$
157,522

 
$
156,122

 
$
148,793

 
$
152,423

 
$
153,130

 
$
462,437

 
$
461,574

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP efficiency ratio
69
%
 
79
%
 
73
%
 
66
%
 
72
%
 
74
%
 
75
%
Adjusted efficiency ratio
61
%
 
67
%
 
66
%
 
65
%
 
71
%
 
65
%
 
68
%


11


EverBank Financial Corp and Subsidiaries
 
 
 
 
 
 
 

Reconciliation of Non-GAAP Measures (continued)
 
 
 
 
 
 
 

 
 
 
 
 
Regulatory Capital (bank level)
 
 
 
Table 10c

(dollars in thousands)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Shareholders’ equity
 
$
2,161,524

 
$
2,124,090

 
$
2,123,612

 
$
2,050,456

 
$
2,002,848

Less:
Goodwill and other intangibles
 
(47,227
)
 
(47,318
)
 
(47,401
)
 
(47,143
)
 
(47,198
)
 
Disallowed servicing asset
 
—

 
—

 
(8,618
)
 
(17,719
)
 
(26,699
)
Add:
Accumulated losses on securities and cash flow hedges
 
100,140

 
107,834

 
95,611

 
62,887

 
71,202

Tier 1 capital
(A)
2,214,437

 
2,184,606

 
2,163,204

 
2,048,481

 
2,000,153

Add:
Allowance for loan and lease losses
 
90,948

 
84,994

 
84,134

 
78,789

 
72,653

Total regulatory capital
(B)
$
2,305,385

 
$
2,269,600

 
$
2,247,338

 
$
2,127,270

 
$
2,072,806

 
 
 
 
 
 
 
 
 
 
 
Adjusted total assets
(C)
$
28,189,485

 
$
26,946,525

 
$
26,232,737

 
$
25,281,658

 
$
24,428,171

Risk-weighted assets
(D)
18,435,220

 
17,998,277

 
17,362,622

 
17,133,084

 
16,336,138

 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
(A)/(C)
7.9
%
 
8.1
%
 
8.2
%
 
8.1
%
 
8.2
%
Tier 1 risk-based capital ratio
(A)/(D)
12.0
%
 
12.1
%
 
12.5
%
 
12.0
%
 
12.2
%
Total risk-based capital ratio
(B)/(D)
12.5
%
 
12.6
%
 
12.9
%
 
12.4
%
 
12.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory Capital (EFC consolidated)
 
 
 
Table 10d

(dollars in thousands)
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Shareholders’ equity
 
$
1,895,556

 
$
1,857,359

 
$
1,855,903

 
$
1,868,321

 
$
1,822,869

Less:
Preferred stock
 
(150,000
)
 
(150,000
)
 
(150,000
)
 
(150,000
)
 
(150,000
)
 
Goodwill and other intangibles
 
(47,227
)
 
(47,318
)
 
(47,401
)
 
(47,143
)
 
(47,198
)
 
Disallowed servicing asset
 
(3,060
)
 
(16,132
)
 
(33,609
)
 
(30,959
)
 
(39,838
)
Add:
Accumulated losses on securities and cash flow hedges
 
100,833

 
108,733

 
96,789

 
64,013

 
72,716

Common tier 1 capital
(E)
1,796,102

 
1,752,642

 
1,721,682

 
1,704,232

 
1,658,549

Add:
Preferred stock
 
150,000

 
150,000

 
150,000

 
150,000

 
150,000

Add:
Additional tier 1 capital (trust preferred securities)
 
98,750

 
98,750

 
103,750

 
103,750

 
103,750

Tier 1 capital
(F)
2,044,852

 
2,001,392

 
1,975,432

 
1,957,982

 
1,912,299

Add:
Subordinated notes payable
 
261,428

 
261,329

 
261,417

 
172,420

 
172,353

Add:
Allowance for loan and lease losses
 
90,948

 
84,994

 
84,134

 
78,789

 
72,653

Total regulatory capital
(G)
$
2,397,228

 
$
2,347,715

 
$
2,320,983

 
$
2,209,191

 
$
2,157,305

 
 
 
 
 
 
 
 
 
 
 
Adjusted total assets
(H)
$
28,192,055

 
$
26,917,493

 
$
26,220,573

 
$
25,286,802

 
$
24,429,012

Risk-weighted assets
(I)
18,448,080

 
17,990,693

 
17,349,099

 
17,131,756

 
16,327,166

 
 
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 ratio
(E)/(I)
9.7
%
 
9.7
%
 
9.9
%
 
9.9
%
 
10.2
%
Tier 1 leverage ratio
(F)/(H)
7.3
%
 
7.4
%
 
7.5
%
 
7.7
%
 
7.8
%
Tier 1 risk-based capital ratio
(F)/(I)
11.1
%
 
11.1
%
 
11.4
%
 
11.4
%
 
11.7
%
Total risk-based capital ratio
(G)/(I)
13.0
%
 
13.0
%
 
13.4
%
 
12.9
%
 
13.2
%


12


EverBank Financial Corp and Subsidiaries
 
 
 
 
 
 
Reconciliation of Non-GAAP Measures (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Equity, Tangible Common Equity, Tangible Common Equity Per Common Share and Tangible Assets
 
 
 
 
 
 
 
 
Table 10e

 
(dollars in thousands except share and per share amounts)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Shareholders’ equity
$
1,895,556

 
$
1,857,359

 
$
1,855,903

 
$
1,868,321

 
$
1,822,869

Less:
 
 
 
 
 
 
 
 
 
Goodwill
46,859

 
46,859

 
46,859

 
46,859

 
46,859

Intangible assets
1,176

 
1,355

 
1,535

 
1,772

 
2,124

Tangible equity
1,847,521

 
1,809,145

 
1,807,509

 
1,819,690

 
1,773,886

Less:
 
 
 
 
 
 
 
 
 
Perpetual preferred stock
150,000

 
150,000

 
150,000

 
150,000

 
150,000

Tangible common equity
$
1,697,521

 
$
1,659,145

 
$
1,657,509

 
$
1,669,690

 
$
1,623,886

 
 
 
 
 
 
 
 
 
 
Common shares outstanding at period end
125,437,973

 
125,324,413

 
125,247,099

 
125,020,843

 
124,954,523

Book value per common share
$
13.92

 
$
13.62

 
$
13.62

 
$
13.74

 
$
13.39

Tangible common equity per common share
13.53

 
13.24

 
13.23

 
13.36

 
13.00

 
 
 
 
 
 
 
 
 
 
Total assets
$
28,703,045

 
$
27,354,310

 
$
26,641,399

 
$
26,601,026

 
$
25,214,743

Less:
 
 
 
 
 
 
 
 
 
Goodwill
46,859

 
46,859

 
46,859

 
46,859

 
46,859

Intangible assets
1,176

 
1,355

 
1,535

 
1,772

 
2,124

Tangible assets
$
28,655,010

 
$
27,306,096

 
$
26,593,005

 
$
26,552,395

 
$
25,165,760


13


EverBank Financial Corp and Subsidiaries
 
 
 
 
 
 
 
Residential Mortgage Lending
 
 
 
Table 11

 
Three Months Ended
(dollars in thousands)
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
 
Dec 31,
2015
 
Sep 30,
2015
Key Metrics:
 
 
 
 
 
 
 
 
 
Mortgage lending volume:
 
 
 
 
 
 
 
 
 
Agency
$
1,466,079

 
$
1,297,388

 
$
872,338

 
$
823,506

 
$
961,485

Jumbo
869,808

 
883,252

 
724,536

 
1,073,881

 
1,219,349

Other
195,652

 
225,003

 
200,257

 
183,613

 
111,193

Mortgage lending volume
$
2,531,539

 
$
2,405,643

 
$
1,797,131

 
$
2,081,000

 
$
2,292,027

Mortgage loans sold:(1)
 
 
 
 
 
 
 
 
 
   Agency, excluding GNMA II
$
1,235,695

 
$
1,222,678

 
$
828,796

 
$
543,709

 
$
1,265,174

   Jumbo
320,960

 
456,140

 
981,304

 
611,644

 
314,499

   GNMA II
—

 
3,362

 
7,308

 
—

 
—

   Other
17,287

 
11,128

 
5,026

 
4,748

 
4,712

Mortgage loans sold
$
1,573,942

 
$
1,693,308

 
$
1,822,434

 
$
1,160,101

 
$
1,584,385

Applications
$
1,713,655

 
$
1,557,100

 
$
1,509,883

 
$
1,296,496

 
$
1,446,134

Rate locks
1,669,722

 
1,564,302

 
1,486,128

 
1,144,034

 
1,422,918

Mortgage Lending Volume by Channel:
 
 
 
 
 
 
 
 
 
Retail
$
1,782,100

 
$
1,750,962

 
$
1,253,682

 
$
1,392,686

 
$
1,467,344

Consumer Direct
483,431

 
388,128

 
244,149

 
224,126

 
289,832

Correspondent
266,008

 
266,553

 
299,301

 
464,188

 
534,851

Purchase Activity (%):
 
 
 
 
 
 
 
 
 
Retail
60
%
 
65
%
 
59
%
 
68
%
 
73
%
Consumer Direct
17
%
 
14
%
 
8
%
 
11
%
 
14
%
Correspondent
76
%
 
74
%
 
69
%
 
57
%
 
70
%
Total
54
%
 
58
%
 
54
%
 
59
%
 
65
%

(1)
Excludes sales of loans to third party servicers out of government insured pool buyouts accounted for under ASC 310-30 since additional cash flows expected and/or realized in the pool are not recognized into earnings immediately but come in as a prospective adjustment to yield for the remainder of the pool.


14