Our adjusted consolidated efficiency ratio was 72% for the second quarter of 2012, or 63%, when excluding credit-related expenses from noninterest expense. The efficiency ratio for our Banking and Wealth Management segment was 54% for the second quarter of 2012, or 44%, when excluding credit-related expenses from noninterest expense.
During the first half of 2012, we added 147 residential lending professionals as a part of our retail lending expansion. As a result, the loan production volume from our retail offices increased by $217 million, or 244%, in the second quarter to $306 million, up from $89 million in the first quarter of 2012.
Income Tax Expense
Our effective tax rate for the second quarter of 2012 was 36%, compared to 38% for the second quarter of 2011.
Forward Looking Statements
This news release contains certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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 in the United States and in the geographic regions and communities we serve; risks related to liquidity; changes in interest rates; risk of higher lease and loan charge-offs; legislative or regulatory actions affecting or concerning mortgage loan modification and refinancing; 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 customers 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; 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
- Banking and Wealth Management adjusted pre-tax income was $60.6 million, including other credit-related expenses, foreclosure and OREO expenses of $14.0 million.
- Mortgage Banking adjusted pre-tax income was $27.7 million, including other credit-related expenses, foreclosure and OREO expenses of $6.8 million.
- Corporate Services had an adjusted pre-tax loss of $29.9 million.
The Company will host a conference call at 8:30 a.m. Eastern Time on Thursday, July 26, 2012 to discuss its second quarter 2012 results. The dial-in number for the conference call is 1-877-941-4774 and the U.S. toll-free dial-in number is 1-480-629-9760, passcode is 4551597. A live webcast of the conference call will also be available on the investor relations page of the Company's website at
For those unable to participate in the conference call, a replay will be available from 11:30 a.m. Eastern Time on July 26, 2012 until 11:59 p.m. Eastern Time on August 1, 2012. The replay dial-in number is 1-877-870-5176 and the U.S. toll-free replay dial-in number is 1-858-384-5517, replay passcode is 4551597.
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