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.
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 | % Change | |||||||||||||
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 $3.9 billion.
Loan Origination Activities
The following table presents total organic loan and lease origination information by product type:
($ in millions) | Sep 30, 2016 | Jun 30, 2016 | Sep 30, 2015 | % Change | % Change | |||||||||||||
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 | % Change | |||||||||||||
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.
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.
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.
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, | |||||||
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 | Commercial | Corporate | 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 | |||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161028005080/en/
Contacts:
Investor Contact
Scott
Verlander, 904-623-8455
Scott.Verlander@EverBank.com
or
Media
Contact
Michael Cosgrove, 904-623-2029
Michael.Cosgrove@EverBank.com