EverBank Has Loan Surge, But Profits Fall on Higher Expenses
EverBank Financial, Jacksonville, Fla., reported strong residential loan growth in its first quarter as a publicly traded company but expenses related to organic growth, recent acquisitions and a nationwide marketing campaign dragged down its overall earnings.
The depository originated $2.7 billion of loans and leases in 2Q, up 19% from 1Q and 89% from the year ago.
It also closed on its purchase of the warehouse lending division of MetLife.
The $15-billion-asset company said total loans climbed 44% year-over-year, to $10.9 billion. Noninterest income rose 40% year over year, to $74.1 million, due primarily to strong gains on the sale of loans.
However, its quarterly profit fell 43% from the same quarter last year, to $11.7 million, while earnings per share fell 61%.
EverBank, which went public in May, attributed the decline in net income largely to a 44% increase in its noninterest income year over year, to $54.1 million. Employee compensation increased by $20 million in the quarter as the company added staff and paid out more in commissions relating to a growth in mortgage lending.
Professional fees rose 47%—largely due to the MetLife warehouse deal, while advertising costs increased more than 140% year mostly related to its deposit-gathering campaign.
EverBank's shares were trading at almost $12 midday, down slightly.