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



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

Business Wire

JACKSONVILLE, Fla. -- January 30, 2013

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.

Organic asset generation totaled $3.5 billion and retained organic production
totaled $0.7 billion for the fourth quarter of 2012. Residential preferred
jumbo loan volume originated during the fourth quarter was $397.5 million, an
increase of 116% over the prior quarter. We executed $178 million of preferred
jumbo whole loan sales to third parties for securitization during the fourth
quarter and had approximately $500 million of preferred jumbo loans classified
as HFS on December 31, 2012, which we intend to sell or securitize.

Deposit and Other Funding Sources

Total deposits grew by $1.3 billion, or 11%, to $13.1 billion at December 31,
2012, from $11.8 billion at September 30, 2012, and by $2.9 billion, or 28%,
from $10.3 billion at December 31, 2011. At December 31, 2012, our deposits
were comprised of the following:

  * Non-interest bearing accounts were $1.4 billion, or 11% of total deposits;
  * Interest-bearing checking accounts were $2.7 billion, or 20% of total
    deposits;
  * Savings and money market accounts were $4.5 billion, or 34% of total
    deposits;
  * Global markets money market and time accounts were $1.2 billion, or 9% of
    total deposits; and
  * Time deposit accounts, excluding global markets, were $3.4 billion, or 26%
    of total deposits.

Total other borrowings were $3.2 billion at December 31, 2012, an increase of
$349.1 million compared to $2.8 billion at September 30, 2012 and an increase
of $1.9 billion compared to $1.3 billion at December 31, 2011. The increase in
other borrowings was the result of overall balance sheet positioning and
funding the BPL acquisition. We expect to replace a portion of our wholesale
borrowings with core deposits over time.

Credit Quality

Our adjusted non-performing assets were 1.08% of total assets at December 31,
2012, a decrease from 1.29% at September 30, 2012 and 1.86% at December 31,
2011. We recorded a provision for loan and lease losses of $10.5 million
during the fourth quarter of 2012, an increase of $6.2 million, or 142%,
compared to the third quarter of 2012. The increase was driven by a one-time
$6.0 million provision related to our adoption of the Office of the
Comptroller of the Currency's ("OCC") troubled debt restructuring guidance on
performing loans in Chapter 7 bankruptcy. Excluding this non-recurring charge,
our provision was $4.6 million, an increase of $0.2 million, or 4%, from the
prior quarter.

Net charge-offs during the fourth quarter of 2012 declined to $4.9 million
from $5.3 million in the third quarter of 2012, a decline of 7%. On an
annualized basis, net charge-offs were 0.16% of total average loans and leases
held for investment, compared to 0.25% for the third quarter of 2012 and 1.03%
for the fourth quarter of 2011.

Originated Loan Repurchase Activity

During the fourth quarter of 2012, we experienced net realized losses on loan
repurchases of $7.3 million and recorded a provision of $3.3 million on
repurchase obligations for loans sold or securitized. Our reserve declined
from $31.0 million in the third quarter of 2012 to $27.0 million in the fourth
quarter of 2012. We continue to be well reserved with approximately 6 quarters
of coverage based on the average quarterly loss rate over the trailing four
quarters. Trends continue to be stable with severities declining over the last
twelve months to 45% in fourth quarter 2012, compared to 48% in the fourth
quarter 2011. We continue to believe that our 0.10% total loss rate is
indicative of our disciplined underwriting guidelines and risk management
culture.

Capital Strength

Total shareholders' equity was $1.5 billion at December 31, 2012, compared to
$1.3 billion at September 30, 2012. The bank’s Tier 1 leverage ratio was 8.0%
and total risk-based capital ratio was 13.5% at December 31, 2012. As a
result, the bank is considered "well-capitalized" under all applicable
regulatory guidelines.

During the fourth quarter, we issued 6.0 million depositary shares, each
representing 1/1,000th of a share of Series A Preferred Stock, for gross
proceeds of $150.0 million with a dividend rate of 6.75% per annum.

Income Statement Highlights

Strong Revenue Growth

Revenue for the fourth quarter was $272.2 million, an increase of $48.7
million, or 22%, from $223.5 million in the third quarter 2012. Compared to
the fourth quarter 2011, revenue increased $96.4 million, or 55%. The linked
quarter increase was driven by the positive contribution to net interest
income by the acquired BPL portfolio as well as a $6.3 million increase in
loan production revenue and a $19.4 million increase in net loan servicing
income. Adjusted for the impact of the non-cash mortgage servicing rights
("MSR") valuation allowance in the third quarter, net loan servicing income
increased $1.2 million linked quarter and total revenue increased by $30.4
million, or 13%, compared to the third quarter 2012. Compared to the fourth
quarter 2011, revenue increased $78 million, or 40%, adjusted for the MSR
valuation allowance incurred in the prior year quarter.

Revenue for the year was $883.6 million, an increase of $198.2 million, or
29%, from $685.4 million in 2011. The increase was primarily due to higher net
interest income as well as increased loan production revenue and gain on sale
of loans, offset by a decrease in loan servicing income resulting from
elevated MSR amortization and a $24.1 million increase to the MSR valuation
allowance.

Net Interest Income

For the quarter, net interest income increased by $20.8 million to $147.0
million, from $126.2 million for the third quarter of 2012. This increase was
attributed to higher interest income generated by the strong growth in loans
and leases HFI, including a $2.5 billion increase in commercial and commercial
real estate loans resulting from the acquired BPL loan portfolio as well as
growth in our mortgage warehouse finance business, which resulted in a $50.0
million increase in interest income on loans and leases HFI during the
quarter. Offsetting this increase was a decline in loans HFS and investment
securities average balances and yields. Interest expense increased by $10.2
million during the quarter as we increased longer dated time deposits and
borrowings to fund the BPL acquisition.

Net interest margin decreased to 3.56% for the fourth quarter from 3.66% in
the third quarter. BPL positively impacted our commercial loan yields and NIM
as expected, offset by lower accretion income on our lease financing
receivables, the impact of growth in our shorter duration commercial and HFS
assets and an increase in interest expense on deposits and borrowings.
Excluding the impact of accretion income from our 2010 acquisition of Tygris
Commercial Finance Group, Inc., our core net interest margin increased 3 basis
points to 3.40% from 3.37% in the third quarter.

For 2012, net interest income was $513.8 million, an increase of $61.5
million, or 14%, compared to 2011. The increase was primarily due to higher
average loans, offset by lower asset yields, lower accretion income and higher
deposit and other borrowings balances. Net interest margin for 2012 was 3.74%
compared to 4.11% in 2011.

Noninterest Income

Noninterest income for the fourth quarter of 2012 increased by $27.9 million,
or 29%, to $125.2 million compared to the third quarter of 2012. This increase
was caused by a $19.4 million improvement in net loan servicing income as well
as a $6.3 million increase in loan origination revenue. Gain on sale of loans
was flat compared to the third quarter at $85.7 million. Adjusted for the MSR
valuation allowance in the third quarter 2012, noninterest income increased by
$9.6 million, or 8% during the quarter.

For 2012, noninterest income increased by $136.7 million, or 59%, to $369.8
million. The increase was driven by a $234.4 million, or 235%, increase in
origination revenues and gain on sale of loans, offset by a $79.6 million
decrease in loan servicing income resulting from elevated MSR amortization and
a $24.1 million increase to the MSR valuation allowance.

Noninterest Expense

Noninterest expense for the fourth quarter of 2012 increased by $33.0 million,
or 18%, to $217.0 million from $184.0 million in the third quarter. Salaries,
commissions and employee benefits increased by $18.1 million, or 21%, with
approximately $5 million attributed to the employees hired as a result of the
BPL transaction and more than $6 million attributed to hiring activity and
investments in retail mortgage lending. Approximately 10% of our noninterest
expense is variable and tied to mortgage origination levels.

We continued to invest in our retail lending expansion during the fourth
quarter, adding approximately 150 FTEs. For the year, we have added
approximately 440 FTEs in our retail channel and opened 58 lending offices.
Noninterest expense directly related to our retail expansion was $22.4 million
for the fourth quarter, compared to $14.6 million in the third quarter and was
$49.5 million for the full year 2012.

General and administrative expense, excluding credit-related expenses,
increased by $20.9 million, or 42%, from the third quarter primarily due to a
$5.3 million and $14.4 million increase in professional fees and other
expenses, respectively. The increase in professional fees was attributed to
legal and consulting fees related to the consent order. The increase in other
general and administrative expense was largely driven by expenses related to
our independent foreclosure review. Credit-related expenses for the fourth
quarter decreased $9.8 million, or 39%, to $15.3 million from $25.1 million in
the third quarter 2012. Key drivers of the decrease include a decline in of
our expenses related to GNMA pool buyout loans and a decrease in foreclosure
and REO expense related to the Bank of Florida portfolio.

Income Tax Expense

Our effective tax rate for the fourth quarter of 2012 was 35%, compared to 37%
for the third quarter of 2012 and 22% for the fourth quarter 2011.

Segment Analysis for the Fourth Quarter of 2012

  * Banking and Wealth Management adjusted pre-tax income was $84.6 million,
    including other credit-related expenses, foreclosure and OREO expenses of
    $8.6 million.
  * Mortgage Banking adjusted pre-tax income was $20.3 million, including
    other credit-related expenses, foreclosure and OREO expenses of $6.6
    million.
  * Corporate Services had an adjusted pre-tax loss of $36.6 million.

Independent Foreclosure Review

Earlier this month, several mortgage servicers announced they had entered into
settlement agreements with the OCC and the Federal Reserve Board that would
end their independent foreclosure reviews under consent orders entered into
between those servicers and their regulators in April 2011. EverBank elected
not to participate in the settlement and we are in the process of completing
our foreclosure review, which we expect to conclude by the end of the second
quarter 2013.

Dividend

On January 29, 2013, the Company's Board of Directors declared a quarterly
cash dividend of $0.02 per common share, payable on February 22, 2013, to
stockholders of record as of February 11, 2013.

Forward Looking Statements

This news release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and such statements
are intended to be covered by the safe harbor provided by the same. 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, including the
real estate and financial markets, in the United States and in the geographic
regions and communities we serve; risks related to liquidity; changes in
interest rates that affect the pricing of our financial products, the demand
for our financial services and the valuation of our financial assets and
liabilities, mortgage servicing rights and mortgages held for sale; risk of
higher loan and lease charge-offs; legislative or regulatory actions affecting
or concerning mortgage loan modification and refinancing; our ability to
comply with any supervisory actions to which we are or become subject as a
result of examination by our regulators; 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 clients 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;
changes in laws and regulations that may restrict our ability to originate or
increase our risk of liability with respect to certain mortgage loans; 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,
January 31, 2013 to discuss its full year and fourth quarter 2012 results. The
dial-in number for the conference call is 1-877-941-1427 and the international
dial-in number is 1-480-629-9664, passcode is 4586595. 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 January 31, 2013 until February 7, 2013. The replay dial-in
number is 1-877-870-5176 and the international replay dial-in number is
1-858-384-5517, replay passcode is 4586595.

About EverBank Financial Corp

EverBank Financial Corp, through its wholly-owned subsidiary EverBank,
provides a diverse range of financial products and services directly to
clients nationwide through multiple business channels. Headquartered in
Jacksonville, Florida, EverBank has $18.2 billion in assets and $13.1 billion
in deposits as of December 31, 2012. With an emphasis on value, innovation and
service, EverBank offers a broad selection of banking, lending and investing
products to consumers and businesses nationwide. EverBank provides services to
clients through the internet, over the phone, through the mail, at its
Florida-based financial centers and at other business offices throughout the
country. More information on EverBank can be found at
www.abouteverbank.com/ir.

                                                               
EverBank Financial Corp and Subsidiaries

Consolidated Balance Sheets (unaudited)

(Dollars in thousands, except per share
data)
                                                                 
                                               December 31,     December 31,
                                               2012             2011
Assets
Cash and due from banks                        $ 175,400        $ 31,441
Interest-bearing deposits in banks             268,514          263,540       
Total cash and cash equivalents                443,914          294,981
Investment securities:
Available for sale, at fair value              1,619,878        1,903,922
Held to maturity (fair value of $146,709 and
$194,350 as of December 31, 2012 and 2011,     143,234          189,518
respectively)
Other investments                              158,172          98,392        
Total investment securities                    1,921,284        2,191,832
Loans held for sale (includes $1,439,685 and
$777,280 carried at fair value as of           2,088,046        2,725,286
December 31, 2012 and 2011, respectively)
Loans and leases held for investment:
Covered by loss share or indemnification       592,959          841,146
agreements
Not covered by loss share or indemnification   11,912,130       5,678,135     
agreements
Loans and leases held for investment, net of   12,505,089       6,519,281
unearned income
Allowance for loan and lease losses            (82,102      )   (77,765      )
Total loans and leases held for investment,    12,422,987       6,441,516
net
Equipment under operating leases, net          50,040           56,399
Mortgage servicing rights (MSR), net           375,859          489,496
Deferred income taxes, net                     170,877          151,634
Premises and equipment, net                    66,806           43,738
Other assets                                   703,065          646,796       
Total Assets                                   $ 18,242,878     $ 13,041,678  
Liabilities
Deposits:
Noninterest-bearing                            $ 1,445,783      $ 1,234,615
Interest-bearing                               11,696,605       9,031,148     
Total deposits                                 13,142,388       10,265,763
Other borrowings                               3,173,021        1,257,879
Trust preferred securities                     103,750          103,750
Accounts payable and accrued liabilities       372,543          446,621       
Total Liabilities                              16,791,702       12,074,013
Commitments and Contingencies
Shareholders’ Equity
Series A 6% Cumulative Convertible Preferred
Stock, $0.01 par value (1,000,000 shares
authorized and 186,744 shares issued and       —                2
outstanding at December 31, 2011; no shares
authorized, issued or outstanding at
December 31, 2012)
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 4%     —                1
Preferred Stock and 136,544 shares issued
and outstanding at December 31, 2011; no
shares authorized, issued or outstanding at
December 31, 2012)
Series A 6.75% Non-Cumulative Perpetual
Preferred Stock, $0.01 par value
(liquidation preference of $25,000 per
share;10,000,000 shares authorized and 6,000   150,000          —
issued and outstanding at December 31, 2012;
no shares authorized, issued or outstanding
at December 31, 2011)
Common Stock, $0.01 par value (500,000,000
and 150,000,000 shares authorized at
December 31, 2012 and 2011,                    1,210            751
respectively;120,987,955 and 75,094,375
issued and outstanding at December 31, 2012
and 2011, respectively)
Additional paid-in capital                     811,085          561,247
Retained earnings                              575,665          513,413
Accumulated other comprehensive income
(loss) (AOCI), net of benefit for income       (86,784      )   (107,749     )
taxes of $53,193 and $65,367 at December 31,
2012 and 2011, respectively
Total Shareholders’ Equity                     1,451,176        967,665       
Total Liabilities and Shareholders’ Equity     $ 18,242,878     $ 13,041,678  
                                                                              

                                                    
EverBank Financial Corp and Subsidiaries

Consolidated Statements of Income (unaudited)

(Dollars in thousands, except per share data)
                                                      
                         Three Months Ended          Year Ended

                         December 31,                December 31,
                         2012          2011          2012          2011
Interest Income
Interest and fees on     $ 173,619     $ 121,519     $ 574,443     $ 479,938
loans and leases
Interest and dividends
on investment            18,501        24,072        80,628        106,850
securities
Other interest income    147           120           485           1,432      
Total Interest Income    192,267       145,711       655,556       588,220
Interest Expense
Deposits                 24,901        21,452        88,785        97,011
Other borrowings         20,373        9,421         52,977        38,899     
Total Interest Expense   45,274        30,873        141,762       135,910    
Net Interest Income      146,993       114,838       513,794       452,310
Provision for Loan and   10,528        10,412        31,999        49,704     
Lease Losses
Net Interest Income
after Provision for      136,465       104,426       481,795       402,606
Loan and Lease Losses
Noninterest Income
Loan servicing fee       44,884        45,416        175,264       189,439
income
Amortization and
impairment of mortgage   (37,660   )   (47,208   )   (200,941  )   (135,478  )
servicing rights
Net loan servicing       7,224         (1,792    )   (25,677   )   53,961
income (loss)
Gain on sale of loans    85,681        33,439        289,532       73,293
Loan production          16,841        7,958         44,658        26,471
revenue
Deposit fee income       4,712         6,568         21,450        25,966
Other lease income       8,570         8,761         33,158        30,924
Other                    2,129         6,027         6,651         22,488     
Total Noninterest        125,157       60,961        369,772       233,103
Income
Noninterest Expense
Salaries, commissions
and other employee       103,490       61,320        331,756       232,771
benefits expense
Equipment expense        20,445        13,641        70,856        49,718
Occupancy expense        7,596         5,381         25,581        20,189
General and              85,466        67,318        307,377       251,517    
administrative expense
Total Noninterest        216,997       147,660       735,570       554,195    
Expense
Income before
Provision for Income     44,625        17,727        115,997       81,514
Taxes
Provision for Income     15,779        3,967         41,955        28,785     
Taxes
Net Income               $ 28,846      $ 13,760      $ 74,042      $ 52,729   
Less: Net Income
Allocated to Preferred   (1,491    )   (2,799    )   (10,724   )   (11,218   )
Stock
Net Income Allocated     $ 27,355      $ 10,961      $ 63,318      $ 41,511   
to Common Shareholders
Basic Earnings Per       $ 0.23        $ 0.15        $ 0.61        $ 0.55
Common Share
Diluted Earnings Per     $ 0.22        $ 0.14        $ 0.60        $ 0.54
Common Share
Dividends Declared Per   $ 0.02        $ —           $ 0.04        $ —
Common Share
                                                                              

Non-GAAP Financial Measures

This press release contains financial information and performance measures
determined by methods other than in accordance with accounting principles
generally accepted in the United States of America (“GAAP”). Adjusted Net
Income, Adjusted Earnings Per Share, Adjusted Non-Performing Asset Ratio,
Tangible Shareholders’ Equity, Tangible Common Shareholders' Equity, Adjusted
Tangible Common Shareholders’ Equity, Tangible Assets, and Adjusted Efficiency
Ratios are non-GAAP financial measures. The Company’s management uses these
measures to evaluate the underlying performance and efficiency of its
operations. The Company’s management believes these non-GAAP measures allow
for a better evaluation and transparency of the operating performance of the
Company’s business and facilitate a meaningful comparison of our results in
the current period to those in prior periods and future periods because these
non-GAAP measures exclude certain items that may not be indicative of our core
operating results and business outlook. In addition the Company’s management
believes that certain of these non-GAAP measures represent a consistent
benchmark against which to evaluate the Company’s growth, profitability and
capital position. These non-GAAP measures are provided to enhance investors’
overall understanding of our current financial performance, and not as a
substitute for, the Company’s reported results. Moreover, the manner in which
we calculate these measures may differ from that of other companies reporting
non-GAAP measures with similar names.

In the tables below, we have provided a reconciliation of, where applicable,
the most comparable GAAP financial measures and ratios to the non-GAAP
financial measures and ratios used in this press release, or a reconciliation
of the non-GAAP calculation of the financial measure for the periods
indicated:

 
EverBank Financial Corp and Subsidiaries
Adjusted Net Income
                    Three Months Ended
(dollars in         December 31,     September 30,    June 30, 2012    March 31, 2012   December 31,
thousands)          2012             2012                                               2011
Net income          $ 28,846         $ 22,178         $ 11,172         $ 11,846         $ 13,760
Transaction
expense, net of     903              1,268            2,363            821              802
tax
Non-recurring
regulatory          9,564            1,326            3,780            3,063            3,529
related expense,
net of tax
Increase in Bank
of Florida
non-accretable      486              111              463              2,135            2,208
discount, net of
tax
Adoption of TDR
guidance and        3,709            —                —                —                —
policy change,
net of tax
MSR impairment,     —                11,302           18,684           9,389            11,638        
net of tax
Adjusted net        $ 43,508         $ 36,185         $ 36,462         $ 27,254         $ 31,937      
income
                                                                                         
Tangible Equity, Tangible Common Equity,

Adjusted Tangible Common Equity and Tangible Assets
(dollars in         December 31,     September 30,    June 30, 2012    March 31, 2012   December 31,
thousands)          2012             2012                                               2011
Shareholders’       $ 1,451,176      $ 1,258,022      $ 1,181,369      $ 994,689        $ 967,665
equity
Less:
Goodwill            46,859           10,238           10,238           10,238           10,238
Intangible assets   7,921            6,348            6,700            7,052            7,404         
Tangible equity     1,396,396        1,241,436        1,164,431        977,399          950,023
Less:
Perpetual           150,000          —                —                —                —             
preferred stock
Tangible common     1,246,396        1,241,436        1,164,431        977,399          950,023
equity
Less:
Accumulated other
comprehensive       (86,784      )   (106,731     )   (113,094     )   (89,196      )   (107,749     )
loss
Adjusted tangible   $ 1,333,180      $ 1,348,167      $ 1,277,525      $ 1,066,595      $ 1,057,772   
common equity
Total assets        $ 18,242,878     $ 16,509,440     $ 15,040,824     $ 13,774,821     $ 13,041,678
Less:
Goodwill            46,859           10,238           10,238           10,238           10,238
Intangible assets   7,921            6,348            6,700            7,052            7,404         
Tangible assets     $ 18,188,098     $ 16,492,854     $ 15,023,886     $ 13,757,531     $ 13,024,036  
                                                                                         
Regulatory Capital (bank level)
(dollars in         December 31,     September 30,    June 30, 2012    March 31, 2012   December 31,
thousands)          2012             2012                                               2011
Shareholders’       $ 1,518,934      $ 1,339,669      $ 1,263,687      $ 1,099,404      $ 1,070,887
equity
      Goodwill
Less: and other     (54,780      )   (16,586      )   (16,938      )   (17,290      )   (17,642      )
      intangibles
      Disallowed
      servicing     (32,378      )   (33,366      )   (36,650      )   (40,783      )   (38,925      )
      asset
      Disallowed
      deferred      (67,296      )   (69,412      )   (70,357      )   (71,302      )   (71,803      )
      tax asset
      Accumulated
      losses on
Add:  securities    83,477           103,238          110,101          86,981           105,682       
      and cash
      flow hedges
Tier 1 capital      1,447,957        1,323,543        1,249,843        1,057,010        1,048,199
      Low-level
      recourse
Less: and           —                —                —                (20,424      )   (21,587      )
      residual
      interests
      Allowance
Add:  for loan      82,102           76,469           77,393           78,254           77,765        
      and lease
      losses
Total regulatory    $ 1,530,059      $ 1,400,012      $ 1,327,236      $ 1,114,840      $ 1,104,377   
capital
Adjusted total      $ 18,141,856     $ 16,488,067     $ 15,022,729     $ 13,731,482     $ 13,081,401
assets
Risk-weighted       11,339,415       8,701,164        8,424,290        7,311,556        7,043,371
assets
                                                                                                      

 
EverBank Financial Corp and Subsidiaries
Non-Performing Assets^(1)
(dollars in          December 31,    September 30,   June 30,        March 31,       December 31,
thousands)           2012            2012            2012            2012            2011
Non-accrual loans
and leases:
Residential          $ 73,752        $ 75,355        $ 66,956        $ 74,810        $ 81,594
mortgages
Commercial and
commercial real      76,289          85,306          95,882          89,576          104,829
estate
Lease financing      2,010           2,018           1,295           1,861           2,385
receivables
Home equity lines    4,246           4,492           4,256           3,771           4,251
Consumer and         332             479             573             571             419          
credit card
Total non-accrual    156,629         167,650         168,962         170,589         193,478
loans and leases
Accruing loans 90
days or more past    —               1,973           1,800           5,119           6,673        
due
Total
non-performing       156,629         169,623         170,762         175,708         200,151
loans (NPL)
Other real estate    40,492          43,612          49,248          49,304          42,664       
owned (OREO)
Total
non-performing       197,121         213,235         220,010         225,012         242,815
assets (NPA)
Troubled debt
restructurings       90,094          82,030          93,184          92,954          92,628       
(TDR) less than 90
days past due
Total NPA and        $ 287,215       $ 295,265       $ 313,194       $ 317,966       $ 335,443    
TDR^(1)
                                                                                      
Total NPA and TDR    $ 287,215       $ 295,265       $ 313,194       $ 317,966       $ 335,443
Government-insured
90 days or more      1,729,877       1,684,550       1,647,567       1,530,665       1,570,787
past due still
accruing
Loans accounted
for under ASC
310-30:
90 days or more      79,984          117,506         140,797         146,379         149,743
past due
OREO                 16,528          18,557          20,379          22,852          19,456       
Total regulatory     $ 2,113,604     $ 2,115,878     $ 2,121,937     $ 2,017,862     $ 2,075,429  
NPA and TDR
Adjusted credit
quality ratios
excluding
government-insured
loans and loans
accounted for
under ASC
310-30:^(1)
NPL to total loans   1.08        %   1.49        %   1.57        %   1.80        %   2.18        %
NPA to total         1.08        %   1.29        %   1.46        %   1.63        %   1.86        %
assets
NPA and TDR to       1.57        %   1.79        %   2.08        %   2.31        %   2.57        %
total assets
Credit quality
ratios including
government-insured
loans and loans
accounted for
under ASC 310-30:
NPL to total loans   13.55       %   17.32       %   18.00       %   18.95       %   20.95       %
NPA to total         11.09       %   12.32       %   13.49       %   13.97       %   15.20       %
assets
NPA and TDR to       11.59       %   12.82       %   14.11       %   14.65       %   15.91       %
total assets
                                                                                                  

(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 accounted for
under ASC 310-30 because we expect to fully collect the carrying value of such
loans and foreclosed property.

 
EverBank Financial Corp and Subsidiaries
Business Segments Selected Financial Information
(dollars in      Banking and    Mortgage      Corporate
thousands)       Wealth         Banking       Services     Eliminations   Consolidated
                 Management
Three Months
Ended December
31, 2012
Net interest     $  135,686     $  12,531     $ (1,224 )   $     —        $  146,993
income
Provision for
loan and lease   8,866          1,662         —            —              10,528      
losses
Net interest
income after
provision for    126,820        10,869        (1,224   )   —              136,465
loan and lease
losses
Noninterest      34,057         91,012        88           —              125,157
income
Noninterest
expense:
Foreclosure
and OREO         7,246          1,572         —            —              8,818
expense
Other
credit-related   1,387          5,062         —            —              6,449
expenses
All other
noninterest      74,435         87,180        40,115       —              201,730     
expense
Income (loss)
before income    77,809         8,067         (41,251  )   —              44,625      
tax
Adjustment
items
(pre-tax):
Increase in
Bank of
Florida          784            —             —            —              784
non-accretable
discount
Adoption of
TDR guidance     5,982          —             —            —              5,982
and policy
change
Transaction
and
non-recurring    —              12,276        4,606        —              16,882      
regulatory
related
expense
Adjusted
income (loss)    84,575         20,343        (36,645  )   —              68,273      
before income
tax
Total assets
as of December   16,119,927     2,127,100     166,234      (170,383   )   18,242,878  
31, 2012
Efficiency
Ratios:
GAAP basis:
including
foreclosure,
OREO expenses    48.9       %                                             79.7       %
and other
credit-related
expenses
excluding
foreclosure,
OREO expenses    43.9       %                                             74.1       %
and other
credit-related
expenses
Adjusted
basis:
including
foreclosure,
OREO expenses    48.9       %                                             73.5       %
and other
credit-related
expenses
excluding
foreclosure,
OREO expenses    43.9       %                                             67.9       %
and other
credit-related
expenses
Three Months
Ended
September 30,
2012
Net interest     $  114,587     $  13,105     $ (1,498 )   $     —        $  126,194
income
Provision for
loan and lease   3,547          812           —            —              4,359       
losses
Net interest
income after
provision for    111,040        12,293        (1,498   )   —              121,835
loan and lease
losses
Noninterest      20,608         76,693        (2       )   —              97,299
income
Noninterest
expense:
Foreclosure
and OREO         17,463         2,176         —            —              19,639
expense
Other
credit-related   1,879          3,544         2            —              5,425
expenses
All other
noninterest      60,526         65,900        32,479       —              158,905     
expense
Income (loss)
before income    51,780         17,366        (33,981  )   —              35,165      
tax
Adjustment
items
(pre-tax):
Increase in
Bank of
Florida          178            —             —            —              178
non-accretable
discount
MSR impairment   —              18,229        —            —              18,229
Transaction
and
non-recurring    —              1,657         2,527        —              4,184       
regulatory
related
expense
Adjusted
income (loss)    51,958         37,252        (31,454  )   —              57,756      
before income
tax
Total assets
as of            14,696,893     1,838,964     129,141      (155,558   )   16,509,440  
September 30,
2012
Efficiency
Ratios:
GAAP basis:
including
foreclosure,
OREO expenses    59.1       %                                             82.3       %
and other
credit-related
expenses
excluding
foreclosure,
OREO expenses    44.8       %                                             71.1       %
and other
credit-related
expenses
Adjusted
basis:
including
foreclosure,
OREO expenses    59.1       %                                             74.4       %
and other
credit-related
expenses
excluding
foreclosure,
OREO expenses    44.8       %                                             64.0       %
and other
credit-related
expenses
                                                                                      

 
EverBank Financial Corp and Subsidiaries
Business Segments Selected Financial Information (continued)
(dollars in      Banking and    Mortgage      Corporate
thousands)       Wealth         Banking       Services     Eliminations   Consolidated
                 Management
Three Months
Ended December
31, 2011
Net interest     $  104,117     $  12,372     $ (1,651 )   $     —        $  114,838
income
Provision for
loan and lease   9,014          1,398         —            —              10,412      
losses
Net interest
income after
provision for    95,103         10,974        (1,651   )   —              104,426
loan and lease
losses
Noninterest      29,309         31,637        15           —              60,961
income
Noninterest
expense:
Foreclosure
and OREO         6,470          4,839         —            —              11,309
expense
Other
credit-related   2,629          5,956         —            —              8,585
expenses
All other
noninterest      49,617         47,424        30,725       —              127,766     
expense
Income (loss)
before income    65,696         (15,608   )   (32,361  )   —              17,727      
tax
Adjustment
items
(pre-tax):
Increase in
Bank of
Florida          3,567          —             —            —              3,567
non-accretable
discount
MSR impairment   —              18,771        —            —              18,771
Transaction
and
non-recurring    —              3,802         3,180        —              6,982       
regulatory
related
expense
Adjusted
income (loss)    69,263         6,965         (29,181  )   —              47,047      
before income
tax
Total assets
as of December   11,658,702     1,557,421     99,886       (274,331   )   13,041,678  
31, 2011
Efficiency
Ratios:
GAAP basis:
including
foreclosure,
OREO expenses    44.0       %                                             84.0       %
and other
credit-related
expenses
excluding
foreclosure,
OREO expenses    37.2       %                                             72.7       %
and other
credit-related
expenses
Adjusted
basis:
including
foreclosure,
OREO expenses    44.0       %                                             72.3       %
and other
credit-related
expenses
excluding
foreclosure,
OREO expenses    37.2       %                                             62.1       %
and other
credit-related
expenses
                                                                                      

Contact:

EverBank Financial Corp
Media Contact
Michael Cosgrove, 904-623-2029
Michael.Cosgrove@EverBank.com
or
Investor Relations, 877-755-6722
Investor.Relations@EverBank.com
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