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EverBank Financial Corp Announces Full Year And Fourth Quarter 2012 Financial Results

Stocks in this article: EVER

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.

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