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EverBank Financial Corp. Announces Second Quarter 2013 Financial Results

EverBank Financial Corp. (NYSE:EVER) announced today its financial results for the second quarter ended June 30, 2013.

GAAP diluted earnings per share was $0.35, a 17% increase from $0.30 in the first quarter 2013 and a 289% increase from $0.09 in the second quarter 2012. Adjusted diluted earnings per share was $0.28, a 15% decrease from $0.33 in the first quarter 2013 and a 15% decrease from $0.33 in the second quarter 2012. 1

“EverBank's results for the second quarter highlight the power of our banking franchise as we achieved quarterly portfolio loan growth of 5% and a return on equity of 12.7%," said Robert M. Clements, Chairman and Chief Executive Officer. "The second quarter saw a meaningful rise in interest rates and we look forward to benefiting from this transition given the composition of our balance sheet and flexibility of our business model. We remain confident in our ability to generate earnings growth and attractive risk-adjusted returns over the long term."

Second Quarter 2013 Key Highlights

  • Return on equity ("ROE") was 12.7% and adjusted ROE was 10.2%.
  • Net income of $46 million, an increase of 17% compared to the prior quarter and an increase of 312% compared to the second quarter of 2012.
  • Adjusted net income of $37 million, a decrease of 15% compared to the prior quarter and an increase of 2% compared to the second quarter of 2012.
  • Revenue of $288 million, an increase of 4% compared to the prior quarter and an increase of 45% compared to the second quarter of 2012.
  • Total organic asset generation of $3.8 billion, an increase of 15% compared to the prior quarter and an increase of 39% compared to the second quarter of 2012.
  • Total loans and leases held for investment were $12.9 billion, an increase of 5% compared to the prior quarter.
  • Annualized net charge-offs to average loans and leases held for investment were 0.12% for the quarter.
  • Tangible common equity per common share was $11.00 at June 30, 2013, an increase of 3% compared to the prior quarter and an increase of 10% compared to the second quarter 2012.
  • Our board of directors approved a 50% increase in the quarterly common stock dividend to $0.03 per share.

"EverBank is benefiting from its strategic expansion into commercial and retail lending, with second quarter commercial lending and leasing loan growth of 5% and retail lending origination growth of 45% compared to the prior quarter," said W. Blake Wilson, President and Chief Operating Officer. "As the market transitions, we are keenly focused on optimizing efficiency at the business unit level. In addition, having completed our significant infrastructure investments, we anticipate achieving meaningful operating leverage across the organization."

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

Balance Sheet

Diversified Loan Growth

Total portfolio loans held for investment were $12.9 billion at June 30, 2013, an increase of $0.6 billion, or 5%, from the prior quarter. Year over year, this represents a $5.1 billion, or 65%, increase. Loans held for investment for the second quarter 2013 were comprised of:

($ in millions)  

June 30,

2013

 

March 31,

2013

 

June 30,

2012

Residential mortgages $ 6,586 $ 6,280 $ 5,061
Commercial & commercial real estate 3,798 3,722 1,320
Warehouse finance 1,292 1,161 527
Lease financing receivables 1,015 911 681
Other 176   181   196
Total HFI $ 12,867   $ 12,255   $ 7,785

During the second quarter, residential loans HFI increased by 5% compared to the prior quarter to $6.6 billion as we experienced significant growth in our prime jumbo hybrid ARM portfolio. Based on the current rate environment, we expect to continue to originate prime jumbo loans for our balance sheet and will selectively evaluate capital market executions. This strategy is consistent with our approach of retaining high quality loans with attractive risk-adjusted returns for our portfolio.Our commercial lending and leasing platforms experienced strong growth in the quarter and represent approximately 47% of loans HFI in the second quarter compared to approximately 32% a year ago. Our focus on high quality commercial lending and leasing assets positions us to benefit from higher interest rate levels.

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