EverBank Financial Corp Announces Fourth Quarter and Full Year 2014 Financial Results

JACKSONVILLE, Fla.--()--EverBank Financial Corp (NYSE:EVER) announced today its financial results for the fourth quarter and the year ended December 31, 2014.

"EverBank had a successful year in 2014 as we executed on key strategic initiatives designed to grow our commercial and consumer banking businesses and better align our franchise around our core clients," said Robert M. Clements, chairman and chief executive officer. "Our core business fundamentals remained strong in the quarter as evidenced by robust loan and deposit growth, reduced noninterest expense and exceptional credit quality."

GAAP net income available to common shareholders was $35.5 million for the fourth quarter 2014, compared to $41.0 million for the third quarter 2014 and $15.9 million for the fourth quarter 2013. GAAP diluted earnings per share were $0.28, compared to $0.33 in the third quarter 2014 and $0.13 in the fourth quarter 2013. Excluding the impact of $2.1 million in non-recurring regulatory and other expenses, net of tax, fourth quarter net income available to common shareholders would have been $37.6 million, or $0.30 per diluted share1.

For the full year 2014, GAAP net income available to common shareholders was $138.0 million compared to $126.6 million for 2013. GAAP diluted earnings per share were $1.10, compared to $1.02 in 2013.

Fourth Quarter and Full Year 2014 Key Highlights

  • Total retained originations of $1.7 billion in the quarter and $6.0 billion for the year.
  • Commercial originations of $842 million in the quarter and $2.6 billion for the year, an increase of 12% compared to the prior quarter and 32% year over year.
  • Loans held for investment (HFI) of $17.8 billion at December 31, 2014, an increase of 7% compared to the prior quarter and 34% year over year.
  • Total assets of $21.6 billion at December 31, 2014, an increase of 5% compared to the prior quarter and 23% year over year.
  • Total deposits of $15.5 billion at December 31, 2014, an increase of 7% compared to the prior quarter and 17% year over year.
  • Return on average equity (ROE) was 9.0% for the quarter and 9.5% on an adjusted basis.
  • Tangible common equity per common share of $12.51 at December 31, 2014, an increase of 8% year over year.
  • Solid capital position with a common equity Tier 1 ratio of 11.6%, a bank Tier 1 leverage ratio of 8.2% and a bank total risk-based capital ratio of 13.4% at December 31, 2014.
  • Adjusted non-performing assets to total assets1 improved to 0.46% at December 31, 2014. Annualized net charge-offs to total loans and leases held for investment remained low at 0.12% for the quarter.

"In 2014 we demonstrated the strength of our asset generation franchise by originating $6.0 billion of high quality portfolio loans and leases, including $1.7 billion in the fourth quarter, up 18% from the fourth quarter a year ago," said W. Blake Wilson, president and chief operating officer. "We believe that EverBank is uniquely positioned to capitalize on industry trends and commercial deposit growth opportunities as evidenced by our 24% increase in commercial deposit balances during the quarter."

Balance Sheet

Continued Strong Asset Growth

Total assets were $21.6 billion at December 31, 2014, an increase of $1.1 billion, or 5%, compared to the prior quarter and an increase of $4.0 billion, or 23%, year over year. The strong sequential increase was driven by a $1.2 billion, or 7%, increase in portfolio loans HFI to $17.7 billion, resulting from both consumer and commercial loan growth, offset by a $207 million, or 16%, decrease in investment securities.

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

Loans HFI for the fourth quarter of 2014, as compared to the third quarter of 2014 and fourth quarter of 2013, were comprised of:

($ in millions)   Dec 31,
2014
  Sep 30,
2014
  Dec 31,
2013
 

%

Change

(Q/Q)

 

%

Change

(Y/Y)

Consumer Banking:
Residential loans $ 6,325 $ 6,007 $ 5,153 5 % 23 %
Government insured pool buyouts 3,595   3,395   1,892   6 % 90 %
Total residential mortgages 9,920 9,402 7,045 6 % 41 %
Home equity lines & other 162   145   157   11 % 3 %
Total Consumer Banking 10,082 9,548 7,202 6 % 40 %
 
Commercial Banking:
Commercial real estate & other commercial 3,528 3,329 3,276 6 % 8 %
Mortgage warehouse finance 1,357 1,186 944 14 % 44 %
Lender finance 762   678   593   12 % 29 %
Commercial and commercial real estate 5,647 5,193 4,813 9 % 17 %
Equipment financing receivables 2,032   1,839   1,238   10 % 64 %
Total Commercial Banking 7,678 7,032 6,051 9 % 27 %
 
Total Loans HFI $ 17,760   $ 16,580   $ 13,253   7 % 34 %
 

Total consumer banking loans HFI increased $534 million, or 6%, compared to the prior quarter and $2.9 billion, or 40%, year over year, to $10.1 billion driven by strong growth in our prime jumbo originations and by government insured pool buyout port folio acquisition opportunities. Residential loans increased $318 million, or 5%, quarter over quarter to $6.3 billion and government insured pool buyouts increased $200 million, or 6%, quarter over quarter to $3.6 billion.

Total commercial banking loans and leases HFI increased $646 million, or 9%, compared to the prior quarter and $1.6 billion, or 27%, year over year to $7.7 billion driven by the continued growth and success in our commercial banking business. Commercial real estate and other commercial loans increased $199 million, or 6%, quarter over quarter to $3.5 billion, equipment financing receivables increased $192 million, or 10%, quarter over quarter to $2.0 billion, mortgage warehouse finance outstanding balances increased $171 million, or 14%, quarter over quarter to $1.4 billion and lender finance increased $84 million, or 12%, quarter over quarter to $762 million.

Loan Origination Activities

The following table presents total organic loan and lease origination information by product type:

($ in millions) Dec 31,
2014
  Sep 30,
2014
  Dec 31,
2013
 

%

Change

(Q/Q)

 

%

Change

(Y/Y)

Consumer originations    
Conventional loans $ 994 $ 1,115 $ 1,188 (11 )% (16 )%
Prime jumbo loans 1,184   1,187   808   % 47 %
2,178 2,302 1,996 (5 )% 9 %
Commercial originations
Commercial & commercial real estate 484 361 442 34 % 10 %
Equipment financing receivables 358   393   260   (9 )% 38 %
842   754   702   12 % 20 %
Total organic originations $ 3,019   $ 3,056   $ 2,698   (1 )% 12 %

Total originations were $3.0 billion for the fourth quarter and retained originations were $1.7 billion, a decrease of 1% and an increase of 2% compared to the prior quarter, respectively.

Commercial originations were $842 million for the fourth quarter, an increase of 12% compared to the prior quarter driven by strong growth in commercial and commercial real estate originations, and 20% year over year driven by strong growth in commercial and commercial real estate and equipment finance originations. Consumer originations were $2.2 billion for the fourth quarter of 2014, a decrease of 5% compared to the prior quarter and an increase of 9% year over year. Prime jumbo origination volume was $1.2 billion in the fourth quarter, flat compared to the prior quarter and an increase of 47% year over year. The mix of purchase transactions for the fourth quarter was 49% of total originations and 62% of retail channel originations.

For the full year 2014, total originations were $11.0 billion, a decrease of 14% year over year driven by lower conforming residential lending activity. Retained originations were $6.0 billion, an increase of 58% year over year driven by strong commercial and prime jumbo origination activity.

Deposits

Total deposits were $15.5 billion at December 31, 2014, an increase of 7% compared to the prior quarter and an increase of 17% year over year. Commercial deposits were $3.0 billion, an increase of 24% compared to the prior quarter and 62% year over year, and represented 19% of total deposits at quarter end.

At December 31, 2014, as compared to the third quarter of 2014 and fourth quarter of 2013, our deposits were comprised of the following:

($ in millions) Dec 31,
2014
  Sep 30,
2014
  Dec 31,
2013
 

%

Change

(Q/Q)

 

%

Change

(Y/Y)

Noninterest-bearing demand $ 985 $ 1,084 $ 1,077   (9 )%   (9 )%
Interest-bearing demand 3,540 2,941 3,006 20 % 18 %
Savings and money market accounts 5,136 5,160 5,111 % %
Global market-based accounts 841 910 1,011 (8 )% (17 )%
Time, excluding market-based 5,007   4,379   3,056   14 % 64 %
Total deposits $ 15,509   $ 14,474   $ 13,261   7 % 17 %
 
Consumer deposits $ 12,555 $ 12,088 $ 11,435 4 % 10 %
Commercial deposits 2,954   2,386   1,827   24 % 62 %
Total deposits $ 15,509   $ 14,474   $ 13,261   7 % 17 %
 

Total other borrowings were $4.0 billion at December 31, 2014, flat compared to the prior quarter.

Capital Strength

Total shareholders' equity was $1.7 billion at December 31, 2014, an increase of 2% quarter over quarter and 8% year over year. The bank’s Tier 1 leverage ratio was 8.2% and the total risk-based capital ratio was 13.4% at December 31, 2014. As a result, the bank is considered "well-capitalized" under all applicable regulatory guidelines. Our common equity Tier 1 capital ratio at December 31, 2014 was 11.6% and our estimate of the fully phased-in Basel III common equity Tier 1 capital ratio was between 10.25% and 10.50%.

Credit Quality

Our adjusted non-performing assets were 0.46% of total assets at December 31, 2014, compared to 0.50% for the prior quarter and 0.65% at December 31, 2013. Net charge-offs during the fourth quarter of 2014 were $5 million, an increase of $1 million, or 34%, compared to the prior quarter. On an annualized basis, net charge-offs were 0.12% of total average loans and leases held for investment, compared to 0.09% for the prior quarter and 0.20% for the fourth quarter of 2013.

Income Statement Highlights

Revenue

Revenue for the fourth quarter of 2014 was $223 million, a decrease of $12 million, or 5%, from $235 million in the third quarter of 2014. The decline was driven by a $13 million, or 15%, decrease in noninterest income, partially offset by a $1 million, or 1%, increase in net interest income.

Net Interest Income

Net interest income for the fourth quarter of 2014 was $147 million, an increase of $1 million, or 1%, compared to the prior quarter. This increase was driven by a $4 million, or 2%, increase in interest income resulting from increased average interest-earning assets, partially offset by a $3 million, or 6%, increase in interest expense resulting from increased average interest-bearing liabilities.

Net interest margin decreased slightly to 3.00% for the fourth quarter of 2014, from 3.02% in the third quarter of 2014. The interest-earning asset yield increased 0.02% to 3.97%, offset by a 0.03% increase in cost of interest-bearing liabilities.

Noninterest Income

Noninterest income for the fourth quarter of 2014 was $75 million, a decrease of $13 million, or 15%, compared to the prior quarter. Gain on sale of loans declined $14 million, or 29%, compared to the prior quarter to $34 million, driven by lower levels of loan sales. Net loan servicing income declined $4 million, or 20%, compared to the prior quarter, driven by a $3 million decrease in valuation allowance recovery. Partially offsetting these declines was a $5 million increase in other noninterest income.

Noninterest Expense

Noninterest expense for the fourth quarter of 2014 was $153 million, a decrease of $5 million, or 3%, compared to the prior quarter. Salaries, commissions and employee benefits were $87 million, a decrease of $4 million, or 4%. General and administrative expense was $42 million, a decrease of $1 million, or 3%, compared to the prior quarter. For the full year 2014, noninterest expense was $639 million, a decrease of $209 million, or 25%, year over year.

EverBank's efficiency ratio in the fourth quarter of 2014 was 69%, compared to 67% in the prior quarter and 85% in the fourth quarter of 2013. For the full year, EverBank's efficiency ratio was 71%, compared to 79% in 2013.

Income Tax Expense

Our effective tax rate was 38% for the third and fourth quarter of 2014, compared to 30% for the fourth quarter of 2013.

Segment Analysis for the Fourth Quarter of 2014

  • Consumer Banking pre-tax income was $44 million, a 9% decrease compared to $49 million in the prior quarter driven by a 12% decrease in noninterest income, partially offset by a 4% decrease in noninterest expense.
  • Commercial Banking pre-tax income was $46 million, a 2% decrease compared to $47 million in the prior quarter, driven by a 29% decrease in noninterest income, partially offset by a 13% decrease in noninterest expense.
  • Corporate Services had a pre-tax loss of $29 million, a 13% increase compared to $26 million in the prior quarter driven by a 12% increase noninterest expense.

Dividends

On January 22, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per common share, payable on February 20, 2015, to stockholders of record as of February 11, 2015. Also on January 22, 2015, the Company's Board of Directors declared a quarterly cash dividend of $421.875, payable on April 6, 2015, for each share of 6.75% Series A Non-Cumulative Perpetual Preferred Stock held as of March 20, 2015.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. Eastern Time on Wednesday, January 28, 2015 to discuss its fourth quarter and full year 2014 results. The dial-in number for the conference call is 1-866-270-1533 and the international dial-in number is 1-412-317-0797, passcode is 10058646. A live webcast of the conference call will also be available on the investor relations page of the Company's website at www.abouteverbank.com/ir.

About EverBank Financial Corp

EverBank Financial Corp, through its wholly-owned subsidiary EverBank, provides a diverse range of financial products and services directly to clients nationwide through multiple business channels. Headquartered in Jacksonville, Florida, EverBank has $21.6 billion in assets and $15.5 billion in deposits as of December 31, 2014. With an emphasis on value, innovation and service, EverBank offers a broad selection of banking, lending and investing products to consumers and businesses nationwide. EverBank provides services to clients through the internet, over the phone, through the mail, at its Florida-based financial centers and at other business offices throughout the country. More information on EverBank can be found at www.abouteverbank.com/ir.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s asset growth and earnings, industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: deterioration of general business and economic conditions, including the real estate and financial markets, in the United States and in the geographic regions and communities we serve; risks related to liquidity; our capital and liquidity requirements (including under regulatory capital standards, such as Basel III capital standards) and our ability to generate or raise capital; changes in interest rates that affect the pricing of our financial products, the demand for our financial services and the valuation of our financial assets and liabilities, mortgage servicing rights and mortgages held for sale; risk of higher loan and lease charge-offs; legislative or regulatory actions affecting or concerning mortgage loan modification and refinancing and foreclosure; our ability to comply with any supervisory actions to which we are or become subject as a result of examination by our regulators; concentration of our commercial real estate loan portfolio; higher than normal delinquency and default rates; limited ability to rely on brokered deposits as a part of our funding strategy; our ability to comply with the amended consent order and the terms and conditions of our settlement of the Independent Foreclosure Review; concentration of mass-affluent clients and jumbo mortgages; hedging strategies; the effectiveness of our derivatives to manage interest rate risk; delinquencies on our equipment leases and reductions in the resale value of leased equipment; increases in loan repurchase requests and our reserves for loan repurchases; changes in currency exchange rates or other political or economic changes in certain foreign countries; loss of key personnel; fraudulent and negligent acts by loan applicants, mortgage brokers, other vendors and our employees; changes in and compliance with laws and regulations that govern our operations; failure to establish and maintain effective internal controls and procedures; effects of changes in existing U.S. government or government-sponsored mortgage programs; changes in laws and regulations that may restrict our ability to originate or increase our risk of liability with respect to certain mortgage loans; risks related to the approval and consummation of anticipated acquisitions and dispositions; risks related to the continuing integration of acquired businesses and any future acquisitions; environmental liabilities with respect to properties that we take title to upon foreclosure; and the inability of our banking subsidiary to pay dividends.

For additional factors that could materially affect our financial results, please refer to EverBank Financial Corp’s filings with the Securities and Exchange Commission, including but not limited to, the risks described under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Company undertakes no obligation to revise these statements following the date of this news release, except as required by law.

EverBank Financial Corp and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)
   
December 31, 2014 December 31, 2013
Assets
Cash and due from banks $ 49,436 $ 46,175
Interest-bearing deposits in banks 317,228   801,603  
Total cash and cash equivalents 366,664 847,778
Investment securities:
Available for sale, at fair value 776,311 1,115,627
Held to maturity (fair value of $118,230 and $107,921 as of December 31, 2014 and 2013, respectively) 115,084 107,312
Other investments 196,609   128,063  
Total investment securities 1,088,004 1,351,002
Loans held for sale (includes $728,378 and $672,371 carried at fair value as of December 31, 2014 and 2013, respectively) 973,507 791,382
Loans and leases held for investment:
Loans and leases held for investment, net of unearned income 17,760,253 13,252,724
Allowance for loan and lease losses (60,846 ) (63,690 )
Total loans and leases held for investment, net 17,699,407 13,189,034
Mortgage servicing rights (MSR), net 435,619 506,680
Deferred income taxes, net 51,375
Premises and equipment, net 56,457 60,733
Other assets 998,130   843,000  
Total Assets $ 21,617,788   $ 17,640,984  
Liabilities
Deposits:
Noninterest-bearing $ 984,703 $ 1,076,631
Interest-bearing 14,523,994   12,184,709  
Total deposits 15,508,697 13,261,340
Other borrowings 4,004,000 2,377,000
Trust preferred securities 103,750 103,750
Accounts payable and accrued liabilities 253,747   277,881  
Total Liabilities 19,870,194 16,019,971
Commitments and Contingencies
Shareholders’ Equity
Series A 6.75% Non-Cumulative Perpetual Preferred Stock, $0.01 par value (liquidation preference of $25,000 per share; 10,000,000 shares authorized and 6,000 issued and outstanding at December 31, 2014 and 2013) 150,000 150,000
Common Stock, $0.01 par value (500,000,000 shares authorized at December 31, 2014 and 2013; 123,679,049 and 122,626,315 issued and outstanding at December 31, 2014 and 2013, respectively) 1,237 1,226
Additional paid-in capital 851,158 832,351
Retained earnings 810,796 690,051
Accumulated other comprehensive income (loss) (AOCI), net of benefit for income taxes of $40,211 and $32,224 at December 31, 2014 and 2013, respectively (65,597 ) (52,615 )
Total Shareholders’ Equity 1,747,594   1,621,013  
Total Liabilities and Shareholders’ Equity $ 21,617,788   $ 17,640,984  
 
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,
2014     2013   2014     2013  
Interest Income
Interest and fees on loans and leases $ 184,880 $ 162,343 $ 694,588 $ 678,962
Interest and dividends on investment securities 9,336 10,633 38,612 55,072
Other interest income 179   555   567   1,663  
Total Interest Income 194,395 173,531 733,767 735,697
Interest Expense
Deposits 29,108 23,925 101,912 101,752
Other borrowings 17,851   14,570   67,048   75,020  
Total Interest Expense 46,959   38,495   168,960   176,772  
Net Interest Income 147,436 135,036 564,807 558,925
Provision for Loan and Lease Losses 8,604   7,022   24,533   12,038  
Net Interest Income after Provision for Loan and Lease Losses 138,832 128,014 540,274 546,887
Noninterest Income
Loan servicing fee income 35,529 48,691 158,463 188,759
Amortization of mortgage servicing rights (20,064 ) (25,342 ) (79,234 ) (126,803 )
Recovery (impairment) of mortgage servicing rights   14,692   8,012   94,951  
Net loan servicing income 15,465 38,041 87,241 156,907
Gain on sale of loans 34,170 32,867 163,644 242,412
Loan production revenue 5,243 5,920 20,952 35,986
Deposit fee income 3,087 3,917 14,783 19,084
Other lease income 4,376 5,293 16,997 24,681
Other 12,832   9,671   33,622   40,321  
Total Noninterest Income 75,173 95,709 337,239 519,391
Noninterest Expense
Salaries, commissions and other employee benefits expense 86,736 101,656 370,470 441,736
Equipment expense 16,716 24,752 69,332 85,920
Occupancy expense 7,481 11,481 30,647 35,087
General and administrative expense 41,724   59,297   168,493   285,495  
Total Noninterest Expense 152,657   197,186   638,942   848,238  
Income before Provision for Income Taxes 61,348 26,537 238,571 218,040
Provision for Income Taxes 23,327   8,086   90,489   81,300  
Net Income $ 38,021   $ 18,451   $ 148,082   $ 136,740  
Less: Net Income Allocated to Preferred Stock (2,531 ) (2,531 ) (10,125 ) (10,125 )
Net Income Allocated to Common Shareholders $ 35,490   $ 15,920   $ 137,957   $ 126,615  
Basic Earnings Per Common Share $ 0.29 $ 0.13 $ 1.12 $ 1.04
Diluted Earnings Per Common Share $ 0.28 $ 0.13 $ 1.10 $ 1.02
Dividends Declared Per Common Share $ 0.04 $ 0.03 $ 0.14 $ 0.10

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 and Tangible Assets are non-GAAP financial measures. The Company’s management uses these measures to evaluate the underlying performance and efficiency of its operations. The Company’s management believes these non-GAAP measures provide meaningful additional information about the operating performance of the Company’s business and facilitate a meaningful comparison of our results in the current period to those in prior periods and future periods because these non-GAAP measures exclude certain items that may not be indicative of our core operating results and business outlook. In addition, the Company’s management believes that certain of these non-GAAP measures represent a consistent benchmark against which to evaluate the Company’s growth, profitability and capital position. These non-GAAP measures are provided to enhance investors’ overall understanding of our current financial performance, and not as a substitute for, the Company’s reported results. Moreover, the manner in which we calculate these measures may differ from that of other companies reporting non-GAAP measures with similar names.

In the tables below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated:

         
EverBank Financial Corp and Subsidiaries
 
Adjusted Net Income                              
Three Months Ended
(dollars in thousands, except per share data)

December 31,

2014

September 30,

2014

June 30, 2014 March 31, 2014

December 31,

2013

Net income $ 38,021 $ 43,519 $ 34,782 $ 31,760 $ 18,451
Transaction expense and non-recurring regulatory related expense, net of tax 2,502 2,201 1,294 465 4,807
Increase (decrease) in Bank of Florida non-accretable discount, net of tax (205 ) 198 423 311 (68 )
MSR impairment (recovery), net of tax (1,904 ) (3,063 ) (9,109 )
Restructuring cost, net of tax (164 ) 630 16,090
OTTI losses on investment securities (Volcker Rule), net of tax     425     2,045  
Adjusted net income $ 40,154   $ 44,014   $ 36,924   $ 30,103   $ 32,216  
Adjusted net income allocated to preferred stock 2,531   2,532   2,531   2,531   2,531  
Adjusted net income allocated to common shareholders $ 37,623   $ 41,482   $ 34,393   $ 27,572   $ 29,685  
Adjusted net earnings per common share, basic $ 0.31 $ 0.34 $ 0.28 $ 0.22 $ 0.24
Adjusted net earnings per common share, diluted $ 0.30 $ 0.33 $ 0.27 $ 0.22 $ 0.24
Weighted average common shares outstanding:
(units in thousands)
Basic 123,278 122,950 122,840 122,684 122,595
Diluted 125,646 125,473 125,389 125,038 124,420
 
EverBank Financial Corp and Subsidiaries
 
Tangible Equity, Tangible Common Equity and Tangible Assets
(dollars in thousands)  

December 31,

2014

 

September 30,

2014

  June 30, 2014   March 31, 2014  

December 31,

2013

Shareholders’ equity $ 1,747,594 $ 1,721,023 $ 1,679,448 $ 1,647,639 $ 1,621,013
Less:
Goodwill 46,859 46,859 46,859 46,859 46,859
Intangible assets 3,705   4,232   4,759   5,286   5,813  
Tangible equity 1,697,030 1,669,932 1,627,830 1,595,494 1,568,341
Less:
Perpetual preferred stock 150,000   150,000   150,000   150,000   150,000  
Tangible common equity $ 1,547,030   $ 1,519,932   $ 1,477,830   $ 1,445,494   $ 1,418,341  
 
Total assets $ 21,617,788 $ 20,510,342 $ 19,753,820 $ 17,630,948 $ 17,640,984
Less:
Goodwill 46,859 46,859 46,859 46,859 46,859
Intangible assets 3,705   4,232   4,759   5,286   5,813  
Tangible assets $ 21,567,224   $ 20,459,251   $ 19,702,202   $ 17,578,803   $ 17,588,312  
 
Regulatory Capital (bank level)                              
(dollars in thousands)

December 31,

2014

September 30,

2014

June 30, 2014 March 31, 2014

December 31,

2013

Shareholders’ equity $ 1,789,398 $ 1,769,205 $ 1,714,454 $ 1,686,414 $ 1,662,164
Less: Goodwill and other intangibles (49,589 ) (49,957 ) (50,328 ) (50,700 ) (51,072 )
Disallowed servicing asset (32,054 ) (23,524 ) (29,028 ) (26,419 ) (20,469 )
Disallowed deferred tax asset (61,737 ) (62,682 ) (63,749 )
Add: Accumulated losses on securities and cash flow hedges 64,002   49,516   52,121   51,507   50,608  
Tier 1 capital 1,771,757 1,745,240 1,625,482 1,598,120 1,577,482
Add: Allowance for loan and lease losses 60,846   57,245   56,728   62,969   63,690  
Total regulatory capital $ 1,832,603   $ 1,802,485   $ 1,682,210   $ 1,661,089   $ 1,641,172  
 
Adjusted total assets $ 21,592,849 $ 20,480,723 $ 19,660,793 $ 17,539,708 $ 17,554,236
Risk-weighted assets 13,658,685 12,869,352 12,579,476 11,597,320 11,467,411
 
Regulatory Capital (EFC consolidated)                              
(dollars in thousands) Dec 31,
2014
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Shareholders’ equity $ 1,747,594 $ 1,721,023 $ 1,679,448 $ 1,647,639 $ 1,621,013
Less: Preferred stock (150,000 ) (150,000 ) (150,000 ) (150,000 ) (150,000 )
Goodwill and other intangibles (49,589 ) (49,957 ) (50,328 ) (50,700 ) (51,072 )
Disallowed servicing asset (32,054 ) (23,524 ) (29,028 ) (26,419 ) (20,469 )
Disallowed deferred tax asset (61,737 ) (62,682 ) (63,749 )
Add: Accumulated losses on securities and cash flow hedges 65,597   51,108   53,936   53,647   52,615  
Common tier 1 capital $ 1,581,548   $ 1,548,650   $ 1,442,291   $ 1,411,485   $ 1,388,338  
 
Risk-weighted assets $ 13,665,981 12,875,007 12,583,537 11,600,258 11,469,483
 
EverBank Financial Corp and Subsidiaries
         
Non-Performing Assets(1)                              
(dollars in thousands)

December 31,

2014

September 30,

2014

June 30, 2014 March 31, 2014

December 31,

2013

Non-accrual loans and leases:
Consumer Banking:
Residential mortgages $ 24,576 $ 23,067 $ 22,212 $ 47,835 $ 59,526
Home equity lines 2,363 2,152 1,903 3,462 3,270
Other consumer and credit card 38 31 20 33 18
Commercial Banking:
Commercial and commercial real estate 41,140 46,819 44,172 23,884 18,569
Equipment financing receivables 8,866   6,803   6,475   5,446   4,527  
Total non-accrual loans and leases 76,983 78,872 74,782 80,660 85,910
Accruing loans 90 days or more past due          
Total non-performing loans (NPL) 76,983 78,872 74,782 80,660 85,910
Other real estate owned (OREO) 22,509   24,501   25,530   29,333   29,034  
Total non-performing assets (NPA) 99,492 103,373 100,312 109,993 114,944
Troubled debt restructurings (TDR) less than 90 days past due 13,634   16,547   16,687   73,455   76,913  
Total NPA and TDR(1) $ 113,126   $ 119,920   $ 116,999   $ 183,448   $ 191,857  
 
Total NPA and TDR $ 113,126 $ 119,920 $ 116,999 $ 183,448 $ 191,857
Government insured 90 days or more past due still accruing 2,646,415 2,632,744 2,424,166 1,021,276 1,039,541
Loans accounted for under ASC 310-30:
90 days or more past due 8,448   10,519   23,159   9,915   10,083  
Total regulatory NPA and TDR $ 2,767,989   $ 2,763,183   $ 2,564,324   $ 1,214,639   $ 1,241,481  
Adjusted credit quality ratios excluding government insured loans and loans accounted for under ASC 310-30: (1)
NPL to total loans 0.41 % 0.45 % 0.44 % 0.56 % 0.61 %
NPA to total assets 0.46 % 0.50 % 0.51 % 0.62 % 0.65 %
NPA and TDR to total assets 0.52 % 0.58 % 0.59 % 1.04 % 1.09 %
Credit quality ratios including government insured loans and loans accounted for under ASC 310-30:
NPL to total loans 14.63 % 15.65 % 14.89 % 7.72 % 8.12 %
NPA to total assets 12.74 % 13.39 % 12.90 % 6.47 % 6.60 %
NPA and TDR to total assets 12.80 % 13.47 % 12.98 % 6.89 % 7.04 %

(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.

Contacts

EverBank Financial Corp
Investor Relations:
Scott Verlander, 904-623-8455
Scott.Verlander@EverBank.com
or
Media:
Michael Cosgrove, 904-623-2029
Michael.Cosgrove@EverBank.com

Contacts

EverBank Financial Corp
Investor Relations:
Scott Verlander, 904-623-8455
Scott.Verlander@EverBank.com
or
Media:
Michael Cosgrove, 904-623-2029
Michael.Cosgrove@EverBank.com