By a News Reporter-Staff News Editor at Investment Weekly News -- EverBank Financial Corp (NYSE:EVER) announced its financial results for the second quarter ended June 30, 2014.
"We are pleased with our performance in the quarter as we achieved strong loan growth across our commercial and consumer lending businesses which resulted in 12% total asset growth compared to the first quarter," said Robert M. Clements, chairman and chief executive officer. "With the recent substantial corporate infrastructure investments and strategic repositioning initiatives completed, we expect to drive meaningful operating leverage across our scalable franchise which should result in continued improvement in efficiency in future periods."
GAAP net income available to common shareholders was $32.3 million for the second quarter 2014, compared to $29.2 million for the first quarter 2014 and $43.5 million for the second quarter 2013. GAAP diluted earnings per share were $0.26, a 13% increase from $0.23 in the first quarter 2014 and a 26% decrease from $0.35 in the second quarter 2013. Excluding the impact of $2.1 million in regulatory-related and other expenses, net of tax, net income available to common shareholders would have been $34.4 million, or $0.27 per diluted share.1 Second Quarter 2014 Key Highlights Total assets grew to $19.8 billion, an increase of 12% compared to the prior quarter.
Retained originations of $1.6 billion in the quarter compared to $1.1 billion in the prior quarter.
Portfolio loans held for investment (HFI) grew to $15.3 billion, an increase of 10% compared to the prior quarter, or 41% annualized.
Increased total deposits to $13.9 billion, an increase of 4% compared to the prior quarter.
Tangible common equity per common share increased 9% year over year to $12.02 at June 30, 2014.
Return on average equity (ROE) was 8.6% for the quarter.
Adjusted non-performing assets to total assets improved to 0.51% at June 30, 2014. Annualized net charge-offs to total loans and leases held for investment remained low at 0.19% for the quarter.
Our board of directors approved a 33% increase in the quarterly common stock dividend to $0.04 per share.
"In addition to being ahead of our retained origination and portfolio loan growth targets year to date, we successfully executed a series of asset rotation initiatives in the quarter designed to optimize the risk-adjusted returns of our balance sheet," said W. Blake Wilson, president and chief operating officer. "We also made progress on our deposit growth strategy in the quarter and expect to benefit from increased consumer and commercial deposits in the second half of the year." Balance Sheet Strong Asset Growth Total assets were $19.8 billion at June 30, 2014, an increase of $2.1 billion, or 12%, compared to the prior quarter. The strong sequential increase was driven by a $1.4 billion, or 10%, increase in portfolio loans HFI to $15.3 billion and a $1.1 billion, or 186%, increase in portfolio loans held for sale (HFS). The increase in loans HFS resulted from a transfer of $0.7 billion of longer duration hybrid adjustable rate mortgages (ARMs) from portfolio loans HFI to HFS. In addition, we supplemented our strong origination and portfolio growth with the acquisition of $1.5 billion of Ginnie Mae buyout loans. These loans have an attractive duration profile of less than two years on average, minimal incremental operating cost and are fully guaranteed by the United States government. 1A reconciliation of Non-GAAP financial measures can be found in the financial tables attached hereto.
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