EverBank Financial's first-quarter profits more than doubled from the same period last year as strong loan growth more than offset a sharp drop in income from servicing mortgages.
The Jacksonville, Fla., company said Wednesday that it earned $25.4 million in the quarter, up 117% year over year. Earnings per share increased 122%, to 20 cents.
The $26.6 billion-asset EverBank said that loans held for investment increased 23% from a year earlier, thanks to double-digit gains in consumer and commercial loans. The increased volume helped to boost net interest income by 12% year over year, to $173.8 million.
Noninterest income fell 8%, to $29.8 million, primarily due to a 31% decline fees from loan servicing. In a news release, EverBank attributed the decline to change in the valuation allowance on its mortgage servicing rights.
Revenue increased 14% year-over-year, to $268.8 million, but was down 3% from the prior quarter after factoring in the valuation change. Loan originations in the quarter totaled $2.5 billion, down 20% year-over-year and 25% from the fourth quarter.
EverBank's shares closed at $15.20 Wednesday, down 3.5% from Tuesday's close.