EverBank Financial Corp Announces Second Quarter 2012 Financial Results And Initiation Of Quarterly Dividend

EverBank Financial Corp (NYSE: EVER) (“EverBank” or the “Company”) announced today its financial results for the quarter ended June 30, 2012. In addition, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per common share, payable on August 21, 2012, to stockholders of record as of August 6, 2012.

“We are pleased that the investments we have made contributed to our solid asset and deposit growth in the second quarter,” said Robert M. Clements, Chairman and Chief Executive Officer. “Our financial results highlight our ability to deliver positive earnings while we continue to make investments that we expect will deliver future growth. In addition, the acquisition of the GE Business Property Lending unit which we recently announced and is currently pending regulatory approval, will complement our strategic growth expansion as well as further diversify our balance sheet.”

Key Highlights
  • Total loans and leases were $10.9 billion at June 30, 2012, up $1.1 billion, or 11%, for the quarter and up $3.3 billion, or 44%, year over year.
  • Loans and leases originated were $2.7 billion for the second quarter 2012, an increase of 19% for the quarter and 89% year over year.
  • Closed the acquisition of the warehouse finance business from MetLife.
  • Our adjusted non-performing assets as a percentage of total assets was 1.46% at June 30, 2012, representing continued improvement from 1.63% at March 31, 2012 and 1.86% at December 31, 2011.1
  • GAAP net income was $11.2 million for the second quarter of 2012, compared to $21.8 million for the second quarter of 2011. GAAP diluted earnings per share (“EPS”) was $0.09 for the second quarter of 2012, compared to $0.08 in the first quarter of 2012 and $0.23 for the second quarter of 2011.
  • Adjusted net income was $36.5 million for the second quarter of 2012, compared to $25.5 million for the second quarter of 2011. Adjusted diluted EPS was $0.33 for the second quarter of 2012, as compared to $0.28 in the first quarter of 2012 and $0.26 for the second quarter of 2011.1
  • Deposits were $10.8 billion at June 30, 2012, up $0.3 billion, or 2%, from the first quarter 2012 and $0.9 billion, or 9%, as compared to the second quarter of 2011.
  • Announced the execution of a definitive agreement to acquire Business Property Lending, Inc. from GE Capital Real Estate, North America for a purchase price of approximately $2.51 billion.

“We completed the integration of the warehouse finance business and our second quarter results reflect the diversification and growth benefits to our franchise,” said W. Blake Wilson, President and Chief Operating Officer. “We continue to make strategic investments to support the future growth of the Company, including executing on our retail lending expansion strategy which generated approximately $300 million of new loans during the second quarter.”

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 $1.3 billion, or 9%, to $15.0 billion at June 30, 2012, from $13.8 billion at March 31, 2012, and by $2.5 billion, or 20%, from $12.5 billion at June 30, 2011. Our interest-earning assets for the second quarter 2012 were largely comprised of:
  • Residential loans held for investment which increased by 1% to $5.1 billion from the second quarter of 2011;
  • Commercial and commercial real estate loans which increased by 63% to $1.8 billion, from the second quarter of 2011, excluding the warehouse loans acquired at closing of the warehouse finance acquisition, commercial and commercial real estate loans increased by 32% from the second quarter of 2011;
  • Commercial leases which increased by 43% to $0.7 billion, from the second quarter of 2011;
  • Loans held for sale, which now includes the majority of our GNMA pool buyouts, increased by 301% to $3.2 billion, from the second quarter of 2011; and
  • Investment securities which decreased by 26% to $2.2 billion, from the second quarter of 2011.

Loan Origination and Portfolio Activities

Organic originations of residential loans, commercial loans and leases totaled $2.7 billion for the second quarter of 2012.

During the second quarter of 2012, we closed on the warehouse finance acquisition. Total loans outstanding at closing on April 2, 2012 were $351 million, which we grew to $527 million by the end of second quarter through a combination of increased utilization and new customer originations.

Deposit and Other Funding Sources

Total deposits grew by $0.3 billion, or 2%, to $10.8 billion at June 30, 2012, from $10.6 billion at March 31, 2012, and by $0.9 billion, or 9%, from $9.9 billion at June 30, 2011. At June 30, 2012, our deposits were comprised of the following:
  • Non-interest bearing accounts were $1.4 billion, or 13%, of total deposits;
  • Interest-bearing checking accounts were $2.2 billion, or 20%, of total deposits;
  • Savings and money market accounts were $4.0 billion, or 37%, of total deposits;
  • Global markets money market and time accounts were $1.3 billion, or 12%, of total deposits; and
  • Time deposit accounts, excluding global markets, were $2.1 billion, or 19%, of total deposits.

Total other borrowings were $2.5 billion at June 30, 2012, compared to $1.7 billion at March 31, 2012, as a result of an increase in term Federal Home Loan Bank advances to fund the warehouse finance acquisition and to take advantage of historically low long-term borrowing rates.

Credit Quality

Our adjusted non-performing assets as a percentage of total assets decreased to 1.46% at June 30, 2012, from 1.63% at March 31, 2012. We recorded provision for loan and lease losses of $5.8 million during the second quarter of 2012, which is a decrease of $3.2 million, or 36%, when compared to the second quarter of 2011. Net charge-offs during the second quarter of 2012 declined to $6.6 million, from $9.5 million in the second quarter of 2011, a decline of 30%. On an annualized basis, net charge-offs were 0.34% of total average loans and leases held for investment outstanding for the second quarter of 2012, compared to 0.58% for the second quarter of 2011.

Originated Loan Repurchase Activity

Our loan repurchase activity declined during the second quarter 2012, with losses on repurchase obligations for loans sold or securitized of $2.4 million, a 25% and 43% decline when compared to the first quarter 2012 and second quarter 2011, respectively. Severities over the last twelve months were 44% as of the second quarter 2012, compared to 58% in the second quarter 2011. We are currently reserved at more than three times our trailing twelve month net realized losses.

Capital Strength

Total shareholder’s equity was $1.2 billion at June 30, 2012, compared to $995 million at March 31, 2012. The increase is primarily due to the completion of our initial public offering on May 8, 2012, which raised $198 million. Additionally, at the initial public offering we converted all of our shares of Series B Preferred Stock into shares of our common stock. As a result at June 30, 2012 the ratio of tangible common equity to tangible assets was 7.8%. The bank’s Tier 1 leverage ratio was 8.3% and total risk-based capital ratio was 15.8% at June 30, 2012.

Income Statement Highlights

Net Interest Income

For the second quarter of 2012, net interest income increased by $12.1 million to $125.0 million, from $112.9 million for the second quarter of 2011. This increase in net interest income was attributable to an increase in interest income of $8.5 million, combined with a decrease in interest expense of $3.6 million. Our net interest margin decreased to 3.86% for the second quarter of 2012, from 4.22% for the second quarter of 2011. The primary driver of the decrease in net interest margin was a reduction in accretion income partially offset by a reduction in deposit and borrowing interest expense.

Noninterest Income

Noninterest income for the second quarter of 2012 increased by $21.2 million, or 40%, to $74.1 million compared to the same period in 2011. This increase was driven by production revenues and gain on sale of loans which increased by $68.7 million to $79.8 million. The increase in noninterest income was partially offset by net loan servicing loss, which decreased by $47.1 million to $(21.8) million. Net loan servicing loss includes a non-cash mortgage servicing rights impairment of $30.1 million, as well as increased amortization expense of $34.1 million, compared to $21.4 million in the second quarter of 2011. These changes were primarily related to the historic low interest rate environment resulting in strong residential lending volume of $2.3 billion and elevated servicing pay-off activity.

Noninterest Expense

Noninterest expense for the second quarter of 2012 increased by $54.1 million, or 44%, to $175.8 million from $121.7 million in the second quarter of 2011. The increase in noninterest expense was attributable to an increase in salaries, commissions and employee benefits, as well as professional and other fees and advertising expenses. Salaries, commissions and employee benefits increased by $20.0 million, or 35%, in the second quarter of 2012 compared to the second quarter 2011, due primarily to increased staffing and higher variable commission expenses in our Mortgage Banking segment. Professional fees increased by $6.1 million, or 47%, to $19.3 million due to acquisition-related costs, as well as continued regulatory-related expenses. Advertising and marketing expense increased by $4.9 million, or 133%, to $8.6 million as we reinitiated our deposit generation campaign. Credit related general and administrative expenses were $20.8 million in the second quarter of 2012, which remain at elevated levels, compared to $18.3 million in the second quarter of 2011.

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.

Segment Analysis
  • 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.

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

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 www.abouteverbank.com/ir.

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.

About EverBank Financial Corp

EverBank Financial Corp provides a diverse range of financial products and services directly to clients nationwide through multiple business channels. Headquartered in Jacksonville, Florida, EverBank has $15.0 billion in assets and $10.8 billion in deposits as of June 30, 2012. With an emphasis on value, innovation and service, EverBank offers a broad selection of banking, lending and investing products to consumers and businesses. EverBank provides services to customers through the internet, over the phone, through the mail and at its Florida-based financial centers. More information on EverBank can be found at www.abouteverbank.com/ir.
   

EverBank Financial Corp and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

(Dollars in thousands, except per share data)
 

June 30,2012

December 31,2011
Assets
Cash and due from banks $ 39,689 $ 31,441
Interest-bearing deposits in banks 478,543   263,540  
Total cash and cash equivalents 518,232 294,981
Investment securities:
Available for sale, at fair value 1,850,526 1,903,922
Held to maturity (fair value of $196,382 and $194,350 as of June 30, 2012 and December 31, 2011, respectively) 190,615 189,518
Other investments 133,282   98,392  
Total investment securities 2,174,423 2,191,832
Loans held for sale (includes $1,105,985 and $777,280 carried at fair value as of June 30, 2012 and December 31, 2011, respectively) 3,178,597 2,725,286
Loans and leases held for investment:
Covered by loss share or indemnification agreements 727,708 841,146
Not covered by loss share or indemnification agreements 7,057,722   5,678,135  
Loans and leases held for investment, net of unearned income 7,785,430 6,519,281
Allowance for loan and lease losses (77,393 ) (77,765 )
Total loans and leases held for investment, net 7,708,037 6,441,516
Equipment under operating leases, net 61,811 56,399
Mortgage servicing rights (MSR), net 415,962 489,496
Deferred income taxes, net 163,561 151,634
Premises and equipment, net 52,037 43,738
Other assets 768,164   646,796  
Total Assets $ 15,040,824   $ 13,041,678  
Liabilities
Deposits:
Noninterest-bearing $ 1,356,769 $ 1,234,615
Interest-bearing 9,446,974   9,031,148  
Total deposits 10,803,743 10,265,763
Other borrowings 2,503,636 1,257,879
Trust preferred securities 103,750 103,750
Accounts payable and accrued liabilities 448,326   446,621  
Total Liabilities 13,859,455 12,074,013
Commitments and Contingencies (Note 14)
Shareholders’ Equity
Series A 6% Cumulative Convertible Preferred Stock, $0.01 par value (1,000,000 shares authorized and 186,744 shares issued and outstanding at December 31, 2011; no shares authorized, issued or outstanding at June 30, 2012) (Note 9) 2
Series B 4% Cumulative Convertible Preferred Stock, $0.01 par value (liquidation preference of $1,000 per share; 1,000,000 shares authorized inclusive of Series A Preferred Stock and 136,544 shares issued and outstanding at December 31, 2011; no shares authorized, issued or outstanding at June 30, 2012) (Note 9) 1
Common Stock, $0.01 par value (500,000,000 and 150,000,000 shares authorized at June 30, 2012 and December 31, 2011, respectively; 116,479,658 and 75,094,375 issued and outstanding at June 30, 2012 and December 31, 2011, respectively) 1,165 751
Additional paid-in capital 762,422 561,247
Retained earnings 530,876 513,413
Accumulated other comprehensive income (loss) (AOCI) (113,094 ) (107,749 )
Total Shareholders’ Equity 1,181,369   967,665  
Total Liabilities and Shareholders’ Equity $ 15,040,824   $ 13,041,678  
 
   

EverBank Financial Corp and Subsidiaries

Condensed Consolidated Statements of Income (unaudited)

(Dollars in thousands, except per share data)
 
Three Months Ended Six Months Ended
June 30, June 30,
2012   2011 2012   2011
Interest Income
Interest and fees on loans and leases $ 135,816 $ 118,527 $ 260,594 $ 241,520
Interest and dividends on investment securities 20,699 29,333 41,248 55,577
Other interest income 82   273   186   1,115  
Total interest income 156,597 148,133 302,028 298,212
Interest Expense
Deposits 20,419 25,410 41,393 51,600
Other borrowings 11,194   9,813   20,028   20,009  
Total interest expense 31,613   35,223   61,421   71,609  
Net Interest Income 124,984 112,910 240,607 226,603
Provision for Loan and Lease Losses 5,757   9,004   17,112   27,034  
Net Interest Income after Provision for Loan and Lease Losses 119,227 103,906 223,495 199,569
Noninterest Income
Loan servicing fee income 42,483 46,757 88,039 95,633
Amortization and impairment of mortgage servicing rights (64,277 ) (21,429 ) (108,760 ) (44,217 )
Net loan servicing income (loss) (21,794 ) 25,328 (20,721 ) 51,416
Gain on sale of loans 69,926 5,456 118,103 18,933
Loan production revenue 9,852 5,588 17,289 11,995
Deposit fee income 5,828 6,435 12,067 11,595
Other lease income 8,822 8,336 17,485 15,068
Other 1,489   1,790   3,093   9,778  
Total noninterest income 74,123 52,933 147,316 118,785
Noninterest Expense
Salaries, commissions and other employee benefits expense 76,277 56,321 142,867 113,694
Equipment expense 16,889 11,709 32,837 22,469
Occupancy expense 6,017 5,031 11,366 9,571
General and administrative expense 76,600   48,650   147,534   121,216  
Total noninterest expense 175,783   121,711   334,604   266,950  
Income before Provision for Income Taxes 17,567 35,128 36,207 51,404
Provision for Income Taxes 6,395   13,333   13,189   20,193  
Net Income $ 11,172   $ 21,795   $ 23,018   $ 31,211  
Less: Net Income Allocated to Participating Preferred Stock (1,685 ) (4,417 ) (7,664 ) (6,824 )
Net Income Allocated to Common Shareholders $ 9,487   $ 17,378   $ 15,354   $ 24,387  
Basic Earnings Per Share $ 0.09 $ 0.23 $ 0.17 $ 0.33
Diluted Earnings Per Share $ 0.09 $ 0.23 $ 0.17 $ 0.32
 

         
Adjusted Net Income    
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)   2012   2012   2011   2011   2011
Net income $ 11,172 $ 11,846 $ 13,760 $ 7,758 $ 21,795
Transaction and non-recurring regulatory related expense, net of tax 6,143 3,884 4,331 4,751 2,136
Increase in Bank of Florida non-accretable discount, net of tax 463 2,135 2,208 298 -
Early adoption of TDR guidance and policy change, net of tax - - - - 1,561
MSR impairment, net of tax     18,684       9,389       11,638       12,824       -  
Adjusted net income   $ 36,462     $ 27,254     $ 31,937     $ 25,631     $ 25,492  
 
Tangible Equity, Adjusted Tangible Equity and Tangible Assets
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)   2012   2012   2011   2011   2011
Shareholders' equity $ 1,181,369 $ 994,689 $ 967,665 $ 973,708 $ 1,027,685
Less:
Goodwill 10,238 10,238 10,238 10,238 10,238
Intangible assets     6,700       7,052       7,404       7,756       8,081  
Tangible equity $ 1,164,431 $ 977,399 $ 950,023 $ 955,714 $ 1,009,366
Less:
Accumulated other comprehensive loss     (113,094 )     (89,196 )     (107,749 )     (87,303 )     (24,728 )
Adjusted tangible equity   $ 1,277,525     $ 1,066,595     $ 1,057,772     $ 1,043,017     $ 1,034,094  
 
Total assets $ 15,040,824 $ 13,774,821 $ 13,041,678 $ 12,550,764 $ 12,520,174
Less:
Goodwill 10,238 10,238 10,238 10,238 10,238
Intangible assets     6,700       7,052       7,404       7,756       8,081  
Tangible assets   $ 15,023,886     $ 13,757,531     $ 13,024,036     $ 12,532,770     $ 12,501,855  
 
Regulatory Capital (bank level)
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)   2012   2012   2011   2011   2011
Shareholders' equity $ 1,263,687 $ 1,099,404 $ 1,070,887 $ 1,078,080 $ 1,130,104
Less: Goodwill and other intangibles (16,938 ) (17,290 ) (17,642 ) (17,994 ) (18,319 )
Disallowed servicing asset (36,650 ) (40,783 ) (38,925 ) (36,570 ) (31,927 )
Disallowed deferred tax asset (70,357 ) (71,302 ) (71,803 ) (72,147 ) (74,522 )
Add: Accumulated losses on securities and cash flow hedges     110,101       86,981       105,682       85,525       25,051  
Tier 1 capital 1,249,843 1,057,010 1,048,199 1,036,894 1,030,387
Less: Low-level recourse and residual interests - (20,424 ) (21,587 ) (20,431 ) (19,079 )
Add: Allowance for loan and lease losses     77,393       78,254       77,765       83,826       80,419  
Total regulatory capital   $ 1,327,236     $ 1,114,840     $ 1,104,377     $ 1,100,289     $ 1,091,727  
 
Adjusted total assets $ 15,022,729 $ 13,731,482 $ 13,081,401 $ 12,550,738 $ 12,438,222
Risk-weighted assets     8,424,290       7,311,556       7,043,371       7,007,339       6,648,103  
 
 
Non-Performing Assets (1)  
  June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)   2012   2012   2011   2011   2011
Non-accrual loans and leases:
Residential mortgages $ 66,956 $ 74,810 $ 81,594 $ 74,194 $ 65,130
Commercial and commercial real estate 95,882 89,576 104,829 92,966 88,086
Lease financing receivables 1,295 1,861 2,385 1,745 1,986
Home equity lines 4,256 3,771 4,251 3,803 2,730
Consumer and credit card     573     571     419     471     641
Total non-accrual loans and leases 168,962 170,589 193,478 173,179 158,573
Accruing loans 90 days or more past due     1,800     5,119     6,673     4,808     4,584
Total non-performing loans (NPL) 170,762 175,708 200,151 177,987 163,157
Other real estate owned (OREO)     49,248     49,304     42,664     39,431     42,081
Total non-performing assets (NPA) 220,010 225,012 242,815 217,418 205,238
Troubled debt restructurings (TDR) less than 90 days past due     93,184     92,954     92,628     89,129     79,242
Total NPA and TDR (1)   $ 313,194   $ 317,966   $ 335,443   $ 306,547   $ 284,480
 
Total NPA and TDR $ 313,194 $ 317,966 $ 335,443 $ 306,547 $ 284,480
Government-insured 90 days or more past due still accruing 1,647,567 1,530,665 1,570,787 883,478 762,461
Bank of Florida loans accounted for under ASC 310-30:
90 days or more past due 140,797 146,379 149,743 159,767 190,544
OREO     20,379     22,852     19,456     19,616     22,566
Total regulatory NPA and TDR   $ 2,121,937   $ 2,017,862   $ 2,075,429   $ 1,369,408   $ 1,260,051
 
Adjusted credit quality ratios excluding government-insured loans and loans accounted for under ASC 310-30: (1)
 
NPL to total loans 1.57 % 1.80 % 2.18 % 2.23 % 2.16
NPA to total assets 1.46 1.63 1.86 1.73 1.64
NPA and TDR to total assets 2.08 2.31 2.57 2.44 2.27
 
Credit quality ratios including government-insured loans and loans accounted for under ASC 310-30:
 
NPL to total loans 18.00 % 18.95 % 20.95 % 15.28 % 14.77
NPA to total assets 13.49 13.97 15.20 10.20 9.43
NPA and TDR to total assets 14.11 14.65 15.91 10.91 10.06
                       
 
(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 acquired in the Bank of Florida acquisition accounted for under ASC 310-30 because as of June 30, 2012, we expected to fully collect the carrying value of such loans and foreclosed property.
 
         
Business Segments Selected Financial Information
Banking and
Wealth Mortgage Corporate
(dollars in thousands)   Management   Banking   Services   Eliminations   Consolidated
Three Months Ended June 30, 2012
Net interest income $ 114,801 $ 11,790 $ (1,607 ) $ - $ 124,984
Provision for loan and lease losses     5,041       716       -       -       5,757  
Net interest income after provision for loan and lease losses 109,760 11,074 (1,607 ) - 119,227
Noninterest income 25,605 48,524 (6 ) - 74,123
Noninterest expense:
Foreclosure and OREO expense 12,378 2,591 - - 14,969
Other credit-related expenses 1,604 4,193 9 - 5,806
All other noninterest expense     61,564       60,686       32,758       -       155,008  
Income (loss) before income tax     59,819       (7,872 )     (34,380 )     -       17,567  
 
Adjustment items (pre-tax):
Increase in Bank of Florida non-accretable discount 747 - - - 747
MSR impairment - 30,135 - - 30,135
Transaction and non-recurring regulatory related expense     -       5,461       4,448       -       9,909  
Adjusted income (loss) before income tax     60,566       27,724       (29,932 )     -       58,358  
Total assets as of June 30, 2012     13,327,046       1,902,152       124,406       (312,780 )     15,040,824  
 
Efficiency Ratios:
GAAP basis:
including foreclosure, OREO expenses and other credit-related expenses 53.8 % 88.3 %
excluding foreclosure, OREO expenses and other credit-related expenses 43.8 % 77.9 %
Adjusted basis:
including foreclosure, OREO expenses and other credit-related expenses 53.8 % 72.4 %
excluding foreclosure, OREO expenses and other credit-related expenses     43.8 %                 63.3 %
 
Three Months Ended March 31, 2012
Net interest income $ 106,545 $ 10,496 $ (1,418 ) $ - $ 115,623
Provision for loan and lease losses     10,315       1,040       -       -       11,355  
Net interest income after provision for loan and lease losses 96,230 9,456 (1,418 ) - 104,268
Noninterest income 25,228 47,873 92 - 73,193
Noninterest expense:
Foreclosure and OREO expense 7,962 2,997 - - 10,959
Other credit-related expenses (183 ) 11,990 3 - 11,810
All other noninterest expense     51,846       56,864       27,342       -       136,052  
Income (loss) before income tax     61,833       (14,522 )     (28,671 )     -       18,640  
 
Adjustment items (pre-tax):
Increase in Bank of Florida non-accretable discount 3,444 - - - 3,444
MSR impairment - 15,144 - - 15,144
Transaction and non-recurring regulatory related expense     -       4,722       1,542       -       6,264  
Adjusted income (loss) before income tax     65,277       5,344       (27,129 )     -       43,492  
Total assets as of March 31, 2012     12,494,752       1,438,744       92,381       (251,056 )     13,774,821  
 
Efficiency Ratios:
GAAP basis:
including foreclosure, OREO expenses and other credit-related expenses 45.2 % 84.1 %
excluding foreclosure, OREO expenses and other credit-related expenses 39.3 % 72.1 %
Adjusted basis:
including foreclosure, OREO expenses and other credit-related expenses 45.2 % 74.8 %
excluding foreclosure, OREO expenses and other credit-related expenses     39.3 %                 63.6 %
 
Three Months Ended June 30, 2011
Net interest income $ 105,107 $ 9,487 $ (1,684 ) $ - $ 112,910
Provision for loan and lease losses     8,235       769       -       -       9,004  
Net interest income after provision for loan and lease losses 96,872 8,718 (1,684 ) - 103,906
Noninterest income 15,728 37,204 1 - 52,933
Noninterest expense:
Foreclosure and OREO expense 4,639 4,125 - - 8,764
Other credit-related expenses 1,634 7,922 - - 9,556
All other noninterest expense     39,941       35,910       27,540       -       103,391  
Income (loss) before income tax     66,386       (2,035 )     (29,223 )     -       35,128  
 
Adjustment items (pre-tax):
Early adoption of TDR guidance and policy change 2,517 - - - 2,517
Transaction and non-recurring regulatory related expense     -       946       2,496       -       3,442  
Adjusted income (loss) before income tax     68,903       (1,089 )     (26,727 )     -       41,087  
Total assets as of June 30, 2011     11,140,910       1,482,997       130,615       (234,348 )     12,520,174  
 
Efficiency Ratios:
GAAP basis:
including foreclosure, OREO expenses and other credit-related expenses 38.2 % 73.4 %
excluding foreclosure, OREO expenses and other credit-related expenses 33.1 % 62.3 %
Adjusted basis:
including foreclosure, OREO expenses and other credit-related expenses 38.2 % 71.3 %
excluding foreclosure, OREO expenses and other credit-related expenses     33.1 %                 60.3 %
 

Copyright Business Wire 2010

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