EverBank Financial in Jacksonville, Fla., reported higher quarterly profit due to an uptick in residential lending.
The $20.5 billion-asset company's profit rose 31% from a year earlier, to $43.5 million. Earnings per share of 33 cents a share beat the average estimate of analysts polled by Bloomberg by 2 cents.
Net interest income rose 5%, to $146.3 million. Total loans rose 32%, to $16.6 billion, because of a 30% increase in residential loans. The net interest margin compressed by 15 basis points, to 3.02%.
Higher interest income offset lower fee revenue. Noninterest income fell 39%, to $88.2 million, tied to Everbank's sale of default loan servicing assets to Green Tree Servicing in May.
Operating expenses fell 30%, to $157.8 million.