EverBank Financial Corp Announces Full Year and Fourth Quarter 2012 Financial Results
JACKSONVILLE, Fla.--(BUSINESS WIRE)--
EverBank Financial Corp (NYSE: EVER) (“EverBank”, "we", "our" or the
“Company”) announced today its financial results for the fourth quarter
and the year ended December 31, 2012.
Adjusted diluted earnings per share was $0.34 in the fourth quarter
2012, a 13% increase from $0.30 in the third quarter 2012 and a 3%
increase from $0.33 in the fourth quarter 2011.1 GAAP diluted
earnings per share was $0.22, a 16% increase from $0.19 in the third
quarter 2012 and a 57% increase from $0.14 in the fourth quarter 2011.
For the full year 2012, adjusted diluted earnings per share was $1.27, a
14% increase from $1.11 in 2011. GAAP diluted earnings per share was
$0.60, an 11% increase from $0.54 in 2011.
“EverBank is pleased to have completed a historic year for our Company
as we executed on our strategic plans, raised significant growth capital
and closed two material acquisitions,” said Robert M. Clements, Chairman
and Chief Executive Officer. “Our fundamentals remained strong in the
fourth quarter as we benefited from continued loan and deposit growth,
credit quality improvement and robust noninterest income. We believe we
are well positioned for growth and success in 2013.”
Fourth Quarter and Full Year 2012 Key Highlights
Adjusted return on equity ("ROE") was 13.2% for the fourth quarter, an
increase of 128 basis points compared to the prior quarter. For the
year, adjusted ROE was 12.4%, up 177 basis points over 2011.
Adjusted net income was $43.5 million for the fourth quarter of 2012,
compared to $36.2 million for the third quarter 2012 and $31.9 million
for the fourth quarter of 2011. For the year, adjusted net income was
$143.4 million, an increase of 33%.
GAAP net income was $28.8 million for the fourth quarter of 2012,
compared to $22.2 million for the third quarter 2012 and $13.8 million
in the fourth quarter of 2011. For the full year, GAAP net income was
$74.0 million, an increase of 40% over 2011.
Record revenue of $272.2 million, an increase of 22% compared to the
prior quarter and an increase of 55% compared to the fourth quarter
2011. For the year, revenue was $883.6 million, an increase of 29%
over 2011.
Record residential origination volume of $2.9 billion, an increase of
16% compared to the prior quarter and an increase of 48% compared to
the fourth quarter. For the year, residential origination volume
totaled $9.6 billion, an increase of 61% over 2011.
Total loans and leases were $14.5 billion, up $3.1 billion, or 27%,
for the quarter and up $5.3 billion, or 58%, for the year.
Deposits were $13.1 billion, up $1.3 billion, or 11.2%, for the
quarter and up $2.9 billion, or 28%, for the year.
Asset quality improved during the quarter as adjusted non-performing
assets were 1.08% of total assets at December 31, 2012. Annualized net
charge-offs to average loans and leases held for investment were 0.16%
for the quarter.
Completed the public offering of $150 million of our 6.75% Series A
Non-Cumulative Perpetual Preferred Stock ("Series A Preferred Stock")
in November 2012.
Tangible common equity per common share was $10.30 at December 31,
2012, and excluding accumulated other comprehensive loss was $11.02.
Closed acquisition of Business Property Lending, Inc. ("BPL") on
October 1, 2012, adding $2.3 billion of commercial loans.
"Our mortgage banking segment generated record residential origination
volumes during the fourth quarter and is increasing market share as we
continue to invest in our purchase driven retail channel,” said W. Blake
Wilson, President and Chief Operating Officer. “In addition, we have
substantially completed our integration of BPL and are well on our way
to executing our growth plans for the business. We continue to expect we
will achieve our previously stated intermediate targets for the
business."
1
A reconciliation of Non-GAAP financial measures can be found in the
financial tables attached hereto.
Balance Sheet
Continued Balance Sheet Growth
Total assets increased by $1.7 billion, or 10%, to $18.2 billion at
December 31, 2012, from $16.5 billion at September 30, 2012, and by $5.2
billion, or 40%, from $13.0 billion at December 31, 2011. Our
interest-earning assets for the fourth quarter 2012 were largely
comprised of:
Residential loans held for sale ("HFS") of $2.1 billion, a 49%
increase from the prior quarter due to our success in originating
preferred jumbo loans eligible for sale into the capital markets;
Residential loans held for investment ("HFI") of $6.7 billion, a 1%
decline from the prior quarter as we originated more loans for sale
and diversified into other types of loans;
Commercial and commercial real estate loans of $4.8 billion, a 106%
increase from the prior quarter due largely to the acquisition of BPL;
Commercial leases of $0.8 billion, a 13% increase from the prior
quarter; and
Investment securities of $1.9 billion, a 5% decline from the prior
quarter.
Loan Origination Activities
Residential loan originations were $2.9 billion for the fourth quarter,
an increase of 16% from the third quarter 2012 and 48% from the fourth
quarter 2011. Loan production volume from our retail channel was $837.1
million in the fourth quarter, an increase of $324.3 million, or 63%,
from the third quarter 2012 and an increase of $530.3 million, or 173%,
from the second quarter 2012. Our retail channel is benefiting from the
increased productivity of our recently hired sales teams and greater
market share. We expect this productivity improvement to continue into
2013 as we further penetrate target markets and capitalize on purchase
driven origination volumes.
Organic asset generation totaled $3.5 billion and retained organic
production totaled $0.7 billion for the fourth quarter of 2012.
Residential preferred jumbo loan volume originated during the fourth
quarter was $397.5 million, an increase of 116% over the prior quarter.
We executed $178 million of preferred jumbo whole loan sales to third
parties for securitization during the fourth quarter and had
approximately $500 million of preferred jumbo loans classified as HFS on
December 31, 2012, which we intend to sell or securitize.
Deposit and Other Funding Sources
Total deposits grew by $1.3 billion, or 11%, to $13.1 billion at
December 31, 2012, from $11.8 billion at September 30, 2012, and by $2.9
billion, or 28%, from $10.3 billion at December 31, 2011. At
December 31, 2012, our deposits were comprised of the following:
Non-interest bearing accounts were $1.4 billion, or 11% of total
deposits;
Interest-bearing checking accounts were $2.7 billion, or 20% of total
deposits;
Savings and money market accounts were $4.5 billion, or 34% of total
deposits;
Global markets money market and time accounts were $1.2 billion, or 9%
of total deposits; and
Time deposit accounts, excluding global markets, were $3.4 billion, or
26% of total deposits.
Total other borrowings were $3.2 billion at December 31, 2012, an
increase of $349.1 million compared to $2.8 billion at September 30,
2012 and an increase of $1.9 billion compared to $1.3 billion at
December 31, 2011. The increase in other borrowings was the result of
overall balance sheet positioning and funding the BPL acquisition. We
expect to replace a portion of our wholesale borrowings with core
deposits over time.
Credit Quality
Our adjusted non-performing assets were 1.08% of total assets at
December 31, 2012, a decrease from 1.29% at September 30, 2012 and 1.86%
at December 31, 2011. We recorded a provision for loan and lease losses
of $10.5 million during the fourth quarter of 2012, an increase of $6.2
million, or 142%, compared to the third quarter of 2012. The increase
was driven by a one-time $6.0 million provision related to our adoption
of the Office of the Comptroller of the Currency's ("OCC") troubled debt
restructuring guidance on performing loans in Chapter 7 bankruptcy.
Excluding this non-recurring charge, our provision was $4.6 million, an
increase of $0.2 million, or 4%, from the prior quarter.
Net charge-offs during the fourth quarter of 2012 declined to $4.9
million from $5.3 million in the third quarter of 2012, a decline of 7%.
On an annualized basis, net charge-offs were 0.16% of total average
loans and leases held for investment, compared to 0.25% for the third
quarter of 2012 and 1.03% for the fourth quarter of 2011.
Originated Loan Repurchase Activity
During the fourth quarter of 2012, we experienced net realized losses on
loan repurchases of $7.3 million and recorded a provision of $3.3
million on repurchase obligations for loans sold or securitized. Our
reserve declined from $31.0 million in the third quarter of 2012 to
$27.0 million in the fourth quarter of 2012. We continue to be well
reserved with approximately 6 quarters of coverage based on the average
quarterly loss rate over the trailing four quarters. Trends continue to
be stable with severities declining over the last twelve months to 45%
in fourth quarter 2012, compared to 48% in the fourth quarter 2011. We
continue to believe that our 0.10% total loss rate is indicative of our
disciplined underwriting guidelines and risk management culture.
Capital Strength
Total shareholders' equity was $1.5 billion at December 31, 2012,
compared to $1.3 billion at September 30, 2012. The bank’s Tier 1
leverage ratio was 8.0% and total risk-based capital ratio was 13.5% at
December 31, 2012. As a result, the bank is considered
"well-capitalized" under all applicable regulatory guidelines.
During the fourth quarter, we issued 6.0 million depositary shares, each
representing 1/1,000th of a share of Series A Preferred Stock, for gross
proceeds of $150.0 million with a dividend rate of 6.75% per annum.
Income Statement Highlights
Strong Revenue Growth
Revenue for the fourth quarter was $272.2 million, an increase of $48.7
million, or 22%, from $223.5 million in the third quarter 2012. Compared
to the fourth quarter 2011, revenue increased $96.4 million, or 55%. The
linked quarter increase was driven by the positive contribution to net
interest income by the acquired BPL portfolio as well as a $6.3 million
increase in loan production revenue and a $19.4 million increase in net
loan servicing income. Adjusted for the impact of the non-cash mortgage
servicing rights ("MSR") valuation allowance in the third quarter, net
loan servicing income increased $1.2 million linked quarter and total
revenue increased by $30.4 million, or 13%, compared to the third
quarter 2012. Compared to the fourth quarter 2011, revenue increased $78
million, or 40%, adjusted for the MSR valuation allowance incurred in
the prior year quarter.
Revenue for the year was $883.6 million, an increase of $198.2 million,
or 29%, from $685.4 million in 2011. The increase was primarily due to
higher net interest income as well as increased loan production revenue
and gain on sale of loans, offset by a decrease in loan servicing income
resulting from elevated MSR amortization and a $24.1 million increase to
the MSR valuation allowance.
Net Interest Income
For the quarter, net interest income increased by $20.8 million to
$147.0 million, from $126.2 million for the third quarter of 2012. This
increase was attributed to higher interest income generated by the
strong growth in loans and leases HFI, including a $2.5 billion increase
in commercial and commercial real estate loans resulting from the
acquired BPL loan portfolio as well as growth in our mortgage warehouse
finance business, which resulted in a $50.0 million increase in interest
income on loans and leases HFI during the quarter. Offsetting this
increase was a decline in loans HFS and investment securities average
balances and yields. Interest expense increased by $10.2 million during
the quarter as we increased longer dated time deposits and borrowings to
fund the BPL acquisition.
Net interest margin decreased to 3.56% for the fourth quarter from 3.66%
in the third quarter. BPL positively impacted our commercial loan yields
and NIM as expected, offset by lower accretion income on our lease
financing receivables, the impact of growth in our shorter duration
commercial and HFS assets and an increase in interest expense on
deposits and borrowings. Excluding the impact of accretion income from
our 2010 acquisition of Tygris Commercial Finance Group, Inc., our core
net interest margin increased 3 basis points to 3.40% from 3.37% in the
third quarter.
For 2012, net interest income was $513.8 million, an increase of $61.5
million, or 14%, compared to 2011. The increase was primarily due to
higher average loans, offset by lower asset yields, lower accretion
income and higher deposit and other borrowings balances. Net interest
margin for 2012 was 3.74% compared to 4.11% in 2011.
Noninterest Income
Noninterest income for the fourth quarter of 2012 increased by $27.9
million, or 29%, to $125.2 million compared to the third quarter of
2012. This increase was caused by a $19.4 million improvement in net
loan servicing income as well as a $6.3 million increase in loan
origination revenue. Gain on sale of loans was flat compared to the
third quarter at $85.7 million. Adjusted for the MSR valuation allowance
in the third quarter 2012, noninterest income increased by $9.6 million,
or 8% during the quarter.
For 2012, noninterest income increased by $136.7 million, or 59%, to
$369.8 million. The increase was driven by a $234.4 million, or 235%,
increase in origination revenues and gain on sale of loans, offset by a
$79.6 million decrease in loan servicing income resulting from elevated
MSR amortization and a $24.1 million increase to the MSR valuation
allowance.
Noninterest Expense
Noninterest expense for the fourth quarter of 2012 increased by $33.0
million, or 18%, to $217.0 million from $184.0 million in the third
quarter. Salaries, commissions and employee benefits increased by $18.1
million, or 21%, with approximately $5 million attributed to the
employees hired as a result of the BPL transaction and more than $6
million attributed to hiring activity and investments in retail mortgage
lending. Approximately 10% of our noninterest expense is variable and
tied to mortgage origination levels.
We continued to invest in our retail lending expansion during the fourth
quarter, adding approximately 150 FTEs. For the year, we have added
approximately 440 FTEs in our retail channel and opened 58 lending
offices. Noninterest expense directly related to our retail expansion
was $22.4 million for the fourth quarter, compared to $14.6 million in
the third quarter and was $49.5 million for the full year 2012.
General and administrative expense, excluding credit-related expenses,
increased by $20.9 million, or 42%, from the third quarter primarily due
to a $5.3 million and $14.4 million increase in professional fees and
other expenses, respectively. The increase in professional fees was
attributed to legal and consulting fees related to the consent order.
The increase in other general and administrative expense was largely
driven by expenses related to our independent foreclosure review.
Credit-related expenses for the fourth quarter decreased $9.8 million,
or 39%, to $15.3 million from $25.1 million in the third quarter 2012.
Key drivers of the decrease include a decline in of our expenses related
to GNMA pool buyout loans and a decrease in foreclosure and REO expense
related to the Bank of Florida portfolio.
Income Tax Expense
Our effective tax rate for the fourth quarter of 2012 was 35%, compared
to 37% for the third quarter of 2012 and 22% for the fourth quarter 2011.
Segment Analysis for the Fourth Quarter of 2012
Banking and Wealth Management adjusted pre-tax income was $84.6
million, including other credit-related expenses, foreclosure and OREO
expenses of $8.6 million.
Mortgage Banking adjusted pre-tax income was $20.3 million, including
other credit-related expenses, foreclosure and OREO expenses of $6.6
million.
Corporate Services had an adjusted pre-tax loss of $36.6 million.
Independent Foreclosure Review
Earlier this month, several mortgage servicers announced they had
entered into settlement agreements with the OCC and the Federal Reserve
Board that would end their independent foreclosure reviews under consent
orders entered into between those servicers and their regulators in
April 2011. EverBank elected not to participate in the settlement and we
are in the process of completing our foreclosure review, which we expect
to conclude by the end of the second quarter 2013.
Dividend
On January 29, 2013, the Company's Board of Directors declared a
quarterly cash dividend of $0.02 per common share, payable on February
22, 2013, to stockholders of record as of February 11, 2013.
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; 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; 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; concentration of mass-affluent clients and
jumbo mortgages; hedging strategies; risks related to securities held in
our securities portfolio; delinquencies on our equipment leases and
reductions in the resale value of leased equipment; 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; 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.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. Eastern Time on
Thursday, January 31, 2013 to discuss its full year and fourth quarter
2012 results. The dial-in number for the conference call is
1-877-941-1427 and the international dial-in number is 1-480-629-9664,
passcode is 4586595. 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.
For those unable to participate in the conference call, a replay will be
available from January 31, 2013 until February 7, 2013. The replay
dial-in number is 1-877-870-5176 and the international replay dial-in
number is 1-858-384-5517, replay passcode is 4586595.
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 $18.2 billion in assets and $13.1
billion in deposits as of December 31, 2012. 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.
EverBank Financial Corp and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
December 31, 2012
December 31, 2011
Assets
Cash and due from banks
$
175,400
$
31,441
Interest-bearing deposits in banks
268,514
263,540
Total cash and cash equivalents
443,914
294,981
Investment securities:
Available for sale, at fair value
1,619,878
1,903,922
Held to maturity (fair value of $146,709 and $194,350 as of December
31, 2012 and 2011, respectively)
143,234
189,518
Other investments
158,172
98,392
Total investment securities
1,921,284
2,191,832
Loans held for sale (includes $1,439,685 and $777,280 carried at
fair value as of December 31, 2012 and 2011, respectively)
2,088,046
2,725,286
Loans and leases held for investment:
Covered by loss share or indemnification agreements
592,959
841,146
Not covered by loss share or indemnification agreements
11,912,130
5,678,135
Loans and leases held for investment, net of unearned income
12,505,089
6,519,281
Allowance for loan and lease losses
(82,102
)
(77,765
)
Total loans and leases held for investment, net
12,422,987
6,441,516
Equipment under operating leases, net
50,040
56,399
Mortgage servicing rights (MSR), net
375,859
489,496
Deferred income taxes, net
170,877
151,634
Premises and equipment, net
66,806
43,738
Other assets
703,065
646,796
Total Assets
$
18,242,878
$
13,041,678
Liabilities
Deposits:
Noninterest-bearing
$
1,445,783
$
1,234,615
Interest-bearing
11,696,605
9,031,148
Total deposits
13,142,388
10,265,763
Other borrowings
3,173,021
1,257,879
Trust preferred securities
103,750
103,750
Accounts payable and accrued liabilities
372,543
446,621
Total Liabilities
16,791,702
12,074,013
Commitments and Contingencies
Shareholders’ Equity
Series A 6% Cumulative Convertible Preferred Stock, $0.01 par value
(1,000,000 shares authorized and 186,744 shares issued and
outstanding at December 31, 2011; no shares authorized, issued or
outstanding at December 31, 2012)
—
2
Series B 4% Cumulative Convertible Preferred Stock, $0.01 par value
(liquidation preference of $1,000 per share; 1,000,000 shares
authorized inclusive of Series A 4% Preferred Stock and 136,544
shares issued and outstanding at December 31, 2011; no shares
authorized, issued or outstanding at December 31, 2012)
—
1
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 and 6,000 issued and outstanding at December 31, 2012; no
shares authorized, issued or outstanding at December 31, 2011)
150,000
—
Common Stock, $0.01 par value (500,000,000 and 150,000,000 shares
authorized at December 31, 2012 and 2011, respectively;120,987,955
and 75,094,375 issued and outstanding at December 31, 2012 and 2011,
respectively)
1,210
751
Additional paid-in capital
811,085
561,247
Retained earnings
575,665
513,413
Accumulated other comprehensive income (loss) (AOCI), net of benefit
for income taxes of $53,193 and $65,367 at December 31, 2012 and
2011, respectively
(86,784
)
(107,749
)
Total Shareholders’ Equity
1,451,176
967,665
Total Liabilities and Shareholders’ Equity
$
18,242,878
$
13,041,678
EverBank Financial Corp and Subsidiaries
Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2012
2011
2012
2011
Interest Income
Interest and fees on loans and leases
$
173,619
$
121,519
$
574,443
$
479,938
Interest and dividends on investment securities
18,501
24,072
80,628
106,850
Other interest income
147
120
485
1,432
Total Interest Income
192,267
145,711
655,556
588,220
Interest Expense
Deposits
24,901
21,452
88,785
97,011
Other borrowings
20,373
9,421
52,977
38,899
Total Interest Expense
45,274
30,873
141,762
135,910
Net Interest Income
146,993
114,838
513,794
452,310
Provision for Loan and Lease Losses
10,528
10,412
31,999
49,704
Net Interest Income after Provision for Loan and Lease Losses
136,465
104,426
481,795
402,606
Noninterest Income
Loan servicing fee income
44,884
45,416
175,264
189,439
Amortization and impairment of mortgage servicing rights
(37,660
)
(47,208
)
(200,941
)
(135,478
)
Net loan servicing income (loss)
7,224
(1,792
)
(25,677
)
53,961
Gain on sale of loans
85,681
33,439
289,532
73,293
Loan production revenue
16,841
7,958
44,658
26,471
Deposit fee income
4,712
6,568
21,450
25,966
Other lease income
8,570
8,761
33,158
30,924
Other
2,129
6,027
6,651
22,488
Total Noninterest Income
125,157
60,961
369,772
233,103
Noninterest Expense
Salaries, commissions and other employee benefits expense
103,490
61,320
331,756
232,771
Equipment expense
20,445
13,641
70,856
49,718
Occupancy expense
7,596
5,381
25,581
20,189
General and administrative expense
85,466
67,318
307,377
251,517
Total Noninterest Expense
216,997
147,660
735,570
554,195
Income before Provision for Income Taxes
44,625
17,727
115,997
81,514
Provision for Income Taxes
15,779
3,967
41,955
28,785
Net Income
$
28,846
$
13,760
$
74,042
$
52,729
Less: Net Income Allocated to Preferred Stock
(1,491
)
(2,799
)
(10,724
)
(11,218
)
Net Income Allocated to Common Shareholders
$
27,355
$
10,961
$
63,318
$
41,511
Basic Earnings Per Common Share
$
0.23
$
0.15
$
0.61
$
0.55
Diluted Earnings Per Common Share
$
0.22
$
0.14
$
0.60
$
0.54
Dividends Declared Per Common Share
$
0.02
$
—
$
0.04
$
—
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
Non-Performing Asset Ratio, Tangible Shareholders’ Equity, Tangible
Common Shareholders' Equity, Adjusted Tangible Common Shareholders’
Equity, Tangible Assets, and Adjusted Efficiency Ratios 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 allow for a
better evaluation and transparency of 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)
December 31, 2012
September 30, 2012
June 30, 2012
March 31, 2012
December 31, 2011
Net income
$
28,846
$
22,178
$
11,172
$
11,846
$
13,760
Transaction expense, net of tax
903
1,268
2,363
821
802
Non-recurring regulatory related expense, net of tax
9,564
1,326
3,780
3,063
3,529
Increase in Bank of Florida non-accretable discount, net of tax
486
111
463
2,135
2,208
Adoption of TDR guidance and policy change, net of tax
3,709
—
—
—
—
MSR impairment, net of tax
—
11,302
18,684
9,389
11,638
Adjusted net income
$
43,508
$
36,185
$
36,462
$
27,254
$
31,937
Tangible Equity, Tangible Common Equity,
Adjusted Tangible Common Equity and Tangible Assets
(dollars in thousands)
December 31, 2012
September 30, 2012
June 30, 2012
March 31, 2012
December 31, 2011
Shareholders’ equity
$
1,451,176
$
1,258,022
$
1,181,369
$
994,689
$
967,665
Less:
Goodwill
46,859
10,238
10,238
10,238
10,238
Intangible assets
7,921
6,348
6,700
7,052
7,404
Tangible equity
1,396,396
1,241,436
1,164,431
977,399
950,023
Less:
Perpetual preferred stock
150,000
—
—
—
—
Tangible common equity
1,246,396
1,241,436
1,164,431
977,399
950,023
Less:
Accumulated other comprehensive loss
(86,784
)
(106,731
)
(113,094
)
(89,196
)
(107,749
)
Adjusted tangible common equity
$
1,333,180
$
1,348,167
$
1,277,525
$
1,066,595
$
1,057,772
Total assets
$
18,242,878
$
16,509,440
$
15,040,824
$
13,774,821
$
13,041,678
Less:
Goodwill
46,859
10,238
10,238
10,238
10,238
Intangible assets
7,921
6,348
6,700
7,052
7,404
Tangible assets
$
18,188,098
$
16,492,854
$
15,023,886
$
13,757,531
$
13,024,036
Regulatory Capital (bank level)
(dollars in thousands)
December 31, 2012
September 30, 2012
June 30, 2012
March 31, 2012
December 31, 2011
Shareholders’ equity
$
1,518,934
$
1,339,669
$
1,263,687
$
1,099,404
$
1,070,887
Less:
Goodwill and other intangibles
(54,780
)
(16,586
)
(16,938
)
(17,290
)
(17,642
)
Disallowed servicing asset
(32,378
)
(33,366
)
(36,650
)
(40,783
)
(38,925
)
Disallowed deferred tax asset
(67,296
)
(69,412
)
(70,357
)
(71,302
)
(71,803
)
Add:
Accumulated losses on securities and cash flow hedges
83,477
103,238
110,101
86,981
105,682
Tier 1 capital
1,447,957
1,323,543
1,249,843
1,057,010
1,048,199
Less:
Low-level recourse and residual interests
—
—
—
(20,424
)
(21,587
)
Add:
Allowance for loan and lease losses
82,102
76,469
77,393
78,254
77,765
Total regulatory capital
$
1,530,059
$
1,400,012
$
1,327,236
$
1,114,840
$
1,104,377
Adjusted total assets
$
18,141,856
$
16,488,067
$
15,022,729
$
13,731,482
$
13,081,401
Risk-weighted assets
11,339,415
8,701,164
8,424,290
7,311,556
7,043,371
EverBank Financial Corp and Subsidiaries
Non-Performing Assets(1)
(dollars in thousands)
December 31, 2012
September 30, 2012
June 30, 2012
March 31, 2012
December 31, 2011
Non-accrual loans and leases:
Residential mortgages
$
73,752
$
75,355
$
66,956
$
74,810
$
81,594
Commercial and commercial real estate
76,289
85,306
95,882
89,576
104,829
Lease financing receivables
2,010
2,018
1,295
1,861
2,385
Home equity lines
4,246
4,492
4,256
3,771
4,251
Consumer and credit card
332
479
573
571
419
Total non-accrual loans and leases
156,629
167,650
168,962
170,589
193,478
Accruing loans 90 days or more past due
—
1,973
1,800
5,119
6,673
Total non-performing loans (NPL)
156,629
169,623
170,762
175,708
200,151
Other real estate owned (OREO)
40,492
43,612
49,248
49,304
42,664
Total non-performing assets (NPA)
197,121
213,235
220,010
225,012
242,815
Troubled debt restructurings (TDR) less than 90 days past due
90,094
82,030
93,184
92,954
92,628
Total NPA and TDR(1)
$
287,215
$
295,265
$
313,194
$
317,966
$
335,443
Total NPA and TDR
$
287,215
$
295,265
$
313,194
$
317,966
$
335,443
Government-insured 90 days or more past due still accruing
1,729,877
1,684,550
1,647,567
1,530,665
1,570,787
Loans accounted for under ASC 310-30:
90 days or more past due
79,984
117,506
140,797
146,379
149,743
OREO
16,528
18,557
20,379
22,852
19,456
Total regulatory NPA and TDR
$
2,113,604
$
2,115,878
$
2,121,937
$
2,017,862
$
2,075,429
Adjusted credit quality ratios excluding government-insured loans
and loans accounted for under ASC 310-30:(1)
NPL to total loans
1.08
%
1.49
%
1.57
%
1.80
%
2.18
%
NPA to total assets
1.08
%
1.29
%
1.46
%
1.63
%
1.86
%
NPA and TDR to total assets
1.57
%
1.79
%
2.08
%
2.31
%
2.57
%
Credit quality ratios including government-insured loans and loans
accounted for under ASC 310-30:
NPL to total loans
13.55
%
17.32
%
18.00
%
18.95
%
20.95
%
NPA to total assets
11.09
%
12.32
%
13.49
%
13.97
%
15.20
%
NPA and TDR to total assets
11.59
%
12.82
%
14.11
%
14.65
%
15.91
%
(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)
Banking and Wealth Management
Mortgage Banking
Corporate Services
Eliminations
Consolidated
Three Months Ended December 31, 2012
Net interest income
$
135,686
$
12,531
$
(1,224
)
$
—
$
146,993
Provision for loan and lease losses
8,866
1,662
—
—
10,528
Net interest income after provision for loan and lease losses
126,820
10,869
(1,224
)
—
136,465
Noninterest income
34,057
91,012
88
—
125,157
Noninterest expense:
Foreclosure and OREO expense
7,246
1,572
—
—
8,818
Other credit-related expenses
1,387
5,062
—
—
6,449
All other noninterest expense
74,435
87,180
40,115
—
201,730
Income (loss) before income tax
77,809
8,067
(41,251
)
—
44,625
Adjustment items (pre-tax):
Increase in Bank of Florida non-accretable discount
784
—
—
—
784
Adoption of TDR guidance and policy change
5,982
—
—
—
5,982
Transaction and non-recurring regulatory related expense
—
12,276
4,606
—
16,882
Adjusted income (loss) before income tax
84,575
20,343
(36,645
)
—
68,273
Total assets as of December 31, 2012
16,119,927
2,127,100
166,234
(170,383
)
18,242,878
Efficiency Ratios:
GAAP basis:
including foreclosure, OREO expenses and other credit-related
expenses
48.9
%
79.7
%
excluding foreclosure, OREO expenses and other credit-related
expenses
43.9
%
74.1
%
Adjusted basis:
including foreclosure, OREO expenses and other credit-related
expenses
48.9
%
73.5
%
excluding foreclosure, OREO expenses and other credit-related
expenses
43.9
%
67.9
%
Three Months Ended September 30, 2012
Net interest income
$
114,587
$
13,105
$
(1,498
)
$
—
$
126,194
Provision for loan and lease losses
3,547
812
—
—
4,359
Net interest income after provision for loan and lease losses
111,040
12,293
(1,498
)
—
121,835
Noninterest income
20,608
76,693
(2
)
—
97,299
Noninterest expense:
Foreclosure and OREO expense
17,463
2,176
—
—
19,639
Other credit-related expenses
1,879
3,544
2
—
5,425
All other noninterest expense
60,526
65,900
32,479
—
158,905
Income (loss) before income tax
51,780
17,366
(33,981
)
—
35,165
Adjustment items (pre-tax):
Increase in Bank of Florida non-accretable discount
178
—
—
—
178
MSR impairment
—
18,229
—
—
18,229
Transaction and non-recurring regulatory related expense
—
1,657
2,527
—
4,184
Adjusted income (loss) before income tax
51,958
37,252
(31,454
)
—
57,756
Total assets as of September 30, 2012
14,696,893
1,838,964
129,141
(155,558
)
16,509,440
Efficiency Ratios:
GAAP basis:
including foreclosure, OREO expenses and other credit-related
expenses
59.1
%
82.3
%
excluding foreclosure, OREO expenses and other credit-related
expenses
44.8
%
71.1
%
Adjusted basis:
including foreclosure, OREO expenses and other credit-related
expenses
59.1
%
74.4
%
excluding foreclosure, OREO expenses and other credit-related
expenses
44.8
%
64.0
%
EverBank Financial Corp and Subsidiaries
Business Segments Selected Financial Information (continued)
(dollars in thousands)
Banking and Wealth Management
Mortgage Banking
Corporate Services
Eliminations
Consolidated
Three Months Ended December 31, 2011
Net interest income
$
104,117
$
12,372
$
(1,651
)
$
—
$
114,838
Provision for loan and lease losses
9,014
1,398
—
—
10,412
Net interest income after provision for loan and lease losses
95,103
10,974
(1,651
)
—
104,426
Noninterest income
29,309
31,637
15
—
60,961
Noninterest expense:
Foreclosure and OREO expense
6,470
4,839
—
—
11,309
Other credit-related expenses
2,629
5,956
—
—
8,585
All other noninterest expense
49,617
47,424
30,725
—
127,766
Income (loss) before income tax
65,696
(15,608
)
(32,361
)
—
17,727
Adjustment items (pre-tax):
Increase in Bank of Florida non-accretable discount
3,567
—
—
—
3,567
MSR impairment
—
18,771
—
—
18,771
Transaction and non-recurring regulatory related expense
—
3,802
3,180
—
6,982
Adjusted income (loss) before income tax
69,263
6,965
(29,181
)
—
47,047
Total assets as of December 31, 2011
11,658,702
1,557,421
99,886
(274,331
)
13,041,678
Efficiency Ratios:
GAAP basis:
including foreclosure, OREO expenses and other credit-related
expenses
44.0
%
84.0
%
excluding foreclosure, OREO expenses and other credit-related
expenses
37.2
%
72.7
%
Adjusted basis:
including foreclosure, OREO expenses and other credit-related
expenses
44.0
%
72.3
%
excluding foreclosure, OREO expenses and other credit-related
expenses
Press Release $EVER EverBank Financial Corp.
JACKSONVILLE, Fla.--(BUSINESS WIRE)-- EverBank Financial Corp (NYSE: EVER) (“EverBank”, "we", "our" or the “Company”) announced today its financial results for the fourth quarter and the year ended December 31, 2012.
Adjusted diluted earnings per share was $0.34 in the fourth quarter 2012, a 13% increase from $0.30 in the third quarter 2012 and a 3% increase from $0.33 in the fourth quarter 2011.1 GAAP diluted earnings per share was $0.22, a 16% increase from $0.19 in the third quarter 2012 and a 57% increase from $0.14 in the fourth quarter 2011. For the full year 2012, adjusted diluted earnings per share was $1.27, a 14% increase from $1.11 in 2011. GAAP diluted earnings per share was $0.60, an 11% increase from $0.54 in 2011.
“EverBank is pleased to have completed a historic year for our Company as we executed on our strategic plans, raised significant growth capital and closed two material acquisitions,” said Robert M. Clements, Chairman and Chief Executive Officer. “Our fundamentals remained strong in the fourth quarter as we benefited from continued loan and deposit growth, credit quality improvement and robust noninterest income. We believe we are well positioned for growth and success in 2013.”
Fourth Quarter and Full Year 2012 Key Highlights
"Our mortgage banking segment generated record residential origination volumes during the fourth quarter and is increasing market share as we continue to invest in our purchase driven retail channel,” said W. Blake Wilson, President and Chief Operating Officer. “In addition, we have substantially completed our integration of BPL and are well on our way to executing our growth plans for the business. We continue to expect we will achieve our previously stated intermediate targets for the business."
Balance Sheet
Continued Balance Sheet Growth
Total assets increased by $1.7 billion, or 10%, to $18.2 billion at December 31, 2012, from $16.5 billion at September 30, 2012, and by $5.2 billion, or 40%, from $13.0 billion at December 31, 2011. Our interest-earning assets for the fourth quarter 2012 were largely comprised of:
Loan Origination Activities
Residential loan originations were $2.9 billion for the fourth quarter, an increase of 16% from the third quarter 2012 and 48% from the fourth quarter 2011. Loan production volume from our retail channel was $837.1 million in the fourth quarter, an increase of $324.3 million, or 63%, from the third quarter 2012 and an increase of $530.3 million, or 173%, from the second quarter 2012. Our retail channel is benefiting from the increased productivity of our recently hired sales teams and greater market share. We expect this productivity improvement to continue into 2013 as we further penetrate target markets and capitalize on purchase driven origination volumes.
Organic asset generation totaled $3.5 billion and retained organic production totaled $0.7 billion for the fourth quarter of 2012. Residential preferred jumbo loan volume originated during the fourth quarter was $397.5 million, an increase of 116% over the prior quarter. We executed $178 million of preferred jumbo whole loan sales to third parties for securitization during the fourth quarter and had approximately $500 million of preferred jumbo loans classified as HFS on December 31, 2012, which we intend to sell or securitize.
Deposit and Other Funding Sources
Total deposits grew by $1.3 billion, or 11%, to $13.1 billion at December 31, 2012, from $11.8 billion at September 30, 2012, and by $2.9 billion, or 28%, from $10.3 billion at December 31, 2011. At December 31, 2012, our deposits were comprised of the following:
Total other borrowings were $3.2 billion at December 31, 2012, an increase of $349.1 million compared to $2.8 billion at September 30, 2012 and an increase of $1.9 billion compared to $1.3 billion at December 31, 2011. The increase in other borrowings was the result of overall balance sheet positioning and funding the BPL acquisition. We expect to replace a portion of our wholesale borrowings with core deposits over time.
Credit Quality
Our adjusted non-performing assets were 1.08% of total assets at December 31, 2012, a decrease from 1.29% at September 30, 2012 and 1.86% at December 31, 2011. We recorded a provision for loan and lease losses of $10.5 million during the fourth quarter of 2012, an increase of $6.2 million, or 142%, compared to the third quarter of 2012. The increase was driven by a one-time $6.0 million provision related to our adoption of the Office of the Comptroller of the Currency's ("OCC") troubled debt restructuring guidance on performing loans in Chapter 7 bankruptcy. Excluding this non-recurring charge, our provision was $4.6 million, an increase of $0.2 million, or 4%, from the prior quarter.
Net charge-offs during the fourth quarter of 2012 declined to $4.9 million from $5.3 million in the third quarter of 2012, a decline of 7%. On an annualized basis, net charge-offs were 0.16% of total average loans and leases held for investment, compared to 0.25% for the third quarter of 2012 and 1.03% for the fourth quarter of 2011.
Originated Loan Repurchase Activity
During the fourth quarter of 2012, we experienced net realized losses on loan repurchases of $7.3 million and recorded a provision of $3.3 million on repurchase obligations for loans sold or securitized. Our reserve declined from $31.0 million in the third quarter of 2012 to $27.0 million in the fourth quarter of 2012. We continue to be well reserved with approximately 6 quarters of coverage based on the average quarterly loss rate over the trailing four quarters. Trends continue to be stable with severities declining over the last twelve months to 45% in fourth quarter 2012, compared to 48% in the fourth quarter 2011. We continue to believe that our 0.10% total loss rate is indicative of our disciplined underwriting guidelines and risk management culture.
Capital Strength
Total shareholders' equity was $1.5 billion at December 31, 2012, compared to $1.3 billion at September 30, 2012. The bank’s Tier 1 leverage ratio was 8.0% and total risk-based capital ratio was 13.5% at December 31, 2012. As a result, the bank is considered "well-capitalized" under all applicable regulatory guidelines.
During the fourth quarter, we issued 6.0 million depositary shares, each representing 1/1,000th of a share of Series A Preferred Stock, for gross proceeds of $150.0 million with a dividend rate of 6.75% per annum.
Income Statement Highlights
Strong Revenue Growth
Revenue for the fourth quarter was $272.2 million, an increase of $48.7 million, or 22%, from $223.5 million in the third quarter 2012. Compared to the fourth quarter 2011, revenue increased $96.4 million, or 55%. The linked quarter increase was driven by the positive contribution to net interest income by the acquired BPL portfolio as well as a $6.3 million increase in loan production revenue and a $19.4 million increase in net loan servicing income. Adjusted for the impact of the non-cash mortgage servicing rights ("MSR") valuation allowance in the third quarter, net loan servicing income increased $1.2 million linked quarter and total revenue increased by $30.4 million, or 13%, compared to the third quarter 2012. Compared to the fourth quarter 2011, revenue increased $78 million, or 40%, adjusted for the MSR valuation allowance incurred in the prior year quarter.
Revenue for the year was $883.6 million, an increase of $198.2 million, or 29%, from $685.4 million in 2011. The increase was primarily due to higher net interest income as well as increased loan production revenue and gain on sale of loans, offset by a decrease in loan servicing income resulting from elevated MSR amortization and a $24.1 million increase to the MSR valuation allowance.
Net Interest Income
For the quarter, net interest income increased by $20.8 million to $147.0 million, from $126.2 million for the third quarter of 2012. This increase was attributed to higher interest income generated by the strong growth in loans and leases HFI, including a $2.5 billion increase in commercial and commercial real estate loans resulting from the acquired BPL loan portfolio as well as growth in our mortgage warehouse finance business, which resulted in a $50.0 million increase in interest income on loans and leases HFI during the quarter. Offsetting this increase was a decline in loans HFS and investment securities average balances and yields. Interest expense increased by $10.2 million during the quarter as we increased longer dated time deposits and borrowings to fund the BPL acquisition.
Net interest margin decreased to 3.56% for the fourth quarter from 3.66% in the third quarter. BPL positively impacted our commercial loan yields and NIM as expected, offset by lower accretion income on our lease financing receivables, the impact of growth in our shorter duration commercial and HFS assets and an increase in interest expense on deposits and borrowings. Excluding the impact of accretion income from our 2010 acquisition of Tygris Commercial Finance Group, Inc., our core net interest margin increased 3 basis points to 3.40% from 3.37% in the third quarter.
For 2012, net interest income was $513.8 million, an increase of $61.5 million, or 14%, compared to 2011. The increase was primarily due to higher average loans, offset by lower asset yields, lower accretion income and higher deposit and other borrowings balances. Net interest margin for 2012 was 3.74% compared to 4.11% in 2011.
Noninterest Income
Noninterest income for the fourth quarter of 2012 increased by $27.9 million, or 29%, to $125.2 million compared to the third quarter of 2012. This increase was caused by a $19.4 million improvement in net loan servicing income as well as a $6.3 million increase in loan origination revenue. Gain on sale of loans was flat compared to the third quarter at $85.7 million. Adjusted for the MSR valuation allowance in the third quarter 2012, noninterest income increased by $9.6 million, or 8% during the quarter.
For 2012, noninterest income increased by $136.7 million, or 59%, to $369.8 million. The increase was driven by a $234.4 million, or 235%, increase in origination revenues and gain on sale of loans, offset by a $79.6 million decrease in loan servicing income resulting from elevated MSR amortization and a $24.1 million increase to the MSR valuation allowance.
Noninterest Expense
Noninterest expense for the fourth quarter of 2012 increased by $33.0 million, or 18%, to $217.0 million from $184.0 million in the third quarter. Salaries, commissions and employee benefits increased by $18.1 million, or 21%, with approximately $5 million attributed to the employees hired as a result of the BPL transaction and more than $6 million attributed to hiring activity and investments in retail mortgage lending. Approximately 10% of our noninterest expense is variable and tied to mortgage origination levels.
We continued to invest in our retail lending expansion during the fourth quarter, adding approximately 150 FTEs. For the year, we have added approximately 440 FTEs in our retail channel and opened 58 lending offices. Noninterest expense directly related to our retail expansion was $22.4 million for the fourth quarter, compared to $14.6 million in the third quarter and was $49.5 million for the full year 2012.
General and administrative expense, excluding credit-related expenses, increased by $20.9 million, or 42%, from the third quarter primarily due to a $5.3 million and $14.4 million increase in professional fees and other expenses, respectively. The increase in professional fees was attributed to legal and consulting fees related to the consent order. The increase in other general and administrative expense was largely driven by expenses related to our independent foreclosure review. Credit-related expenses for the fourth quarter decreased $9.8 million, or 39%, to $15.3 million from $25.1 million in the third quarter 2012. Key drivers of the decrease include a decline in of our expenses related to GNMA pool buyout loans and a decrease in foreclosure and REO expense related to the Bank of Florida portfolio.
Income Tax Expense
Our effective tax rate for the fourth quarter of 2012 was 35%, compared to 37% for the third quarter of 2012 and 22% for the fourth quarter 2011.
Segment Analysis for the Fourth Quarter of 2012
Independent Foreclosure Review
Earlier this month, several mortgage servicers announced they had entered into settlement agreements with the OCC and the Federal Reserve Board that would end their independent foreclosure reviews under consent orders entered into between those servicers and their regulators in April 2011. EverBank elected not to participate in the settlement and we are in the process of completing our foreclosure review, which we expect to conclude by the end of the second quarter 2013.
Dividend
On January 29, 2013, the Company's Board of Directors declared a quarterly cash dividend of $0.02 per common share, payable on February 22, 2013, to stockholders of record as of February 11, 2013.
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; 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; 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; concentration of mass-affluent clients and jumbo mortgages; hedging strategies; risks related to securities held in our securities portfolio; delinquencies on our equipment leases and reductions in the resale value of leased equipment; 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; 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.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. Eastern Time on Thursday, January 31, 2013 to discuss its full year and fourth quarter 2012 results. The dial-in number for the conference call is 1-877-941-1427 and the international dial-in number is 1-480-629-9664, passcode is 4586595. 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.
For those unable to participate in the conference call, a replay will be available from January 31, 2013 until February 7, 2013. The replay dial-in number is 1-877-870-5176 and the international replay dial-in number is 1-858-384-5517, replay passcode is 4586595.
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 $18.2 billion in assets and $13.1 billion in deposits as of December 31, 2012. 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.
EverBank Financial Corp and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
December 31,
2012
December 31,
2011
EverBank Financial Corp and Subsidiaries
Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)
December 31,
December 31,
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 Non-Performing Asset Ratio, Tangible Shareholders’ Equity, Tangible Common Shareholders' Equity, Adjusted Tangible Common Shareholders’ Equity, Tangible Assets, and Adjusted Efficiency Ratios 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 allow for a better evaluation and transparency of 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:
Adjusted Tangible Common Equity and Tangible Assets
December 31,
2012
September 30,
2012
June 30,
2012
March 31,
2012
December 31,
2011
(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.
Wealth
Management
Banking
Services
Wealth
Management
Banking
Services
EverBank Financial Corp
Media Contact
Michael Cosgrove, 904-623-2029
Michael.Cosgrove@EverBank.com
or
Investor Relations, 877-755-6722
Investor.Relations@EverBank.com
Source: EverBank Financial Corp