A spokesman for EverBank Financial Group pointed to the changing environment to a purchase market, the new regulatory scheme under Dodd-Frank and the company’s success in growing its retail channel over the past 18 months as the reasons behind the decision to close its wholesale production operations.
Wholesale has always been profitable for the Jacksonville, Fla.-based bank, but because of the factors listed above, it has been less profitable as of late, the spokesman noted.
Besides retail, EverBank will still purchase loans through the correspondent channel and it has a consumer-direct operation as well.
Wholesale was responsible for $500 million in production for 2Q13 and $1.2 billion year-to-date. Overall it had $3.9 billion in 2Q13 and $2.9 billion in 1Q13.
Retail in 2Q13 was $1.2 billion, up 45% over the first quarter and 293% over 2Q12. The growth, the spokesman said, is because of the decision to open retail outlets across the country over the past year-and-one-half, especially in areas where EverBank has a presence for gathering deposits.
Purchase transactions were 32% of total volume but 49% of retail.
EverBank will close wholesale lending operations centers in Dallas, Jacksonville and Sacramento, Calif. There will be 150 positions eliminated as a result. There will be some people who will transition into other positions at the company.
In 3Q13, it will take a one-time aftertax charge of between $2 million and $4 million.
The spokesman noted EverBank as a whole has 366 open positions, with most of those in residential mortgages, and especially in the retail channel.
In June, for example, the company became the
The company also released its 2Q13 results. Its portfolio of residential mortgage loans held for investment grew to $6.6 billion from $6.3 billion in 1Q13 and $5.1 billion one year prior. It is seeing significant growth in its jumbo hybrid adjustable-rate mortgage portfolio. Hybrid ARMs made up $500 million of 2Q volume, part of the $1.1 billion of
Warehouse financing on EverBank’s balance sheet is at $1.3 billion, up from $527 million one year prior.
For the quarter, mortgage banking had income of $10.3 million before taxes; one year earlier there was a loss of $7.9 million. GAAP income for EverBank was $46 million in 2Q13, up from $11 million one year prior.
