EverBank Financial (EVER) in Jacksonville, Fla., reported strong 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 $15 billion-asset company said late Wednesday its total loans climbed 44% year over year, to $10.9 billion, as it originated $2.7 billion of loans in the quarter that ended June 30. 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 49% from the same quarter last year, to $11.7 million, while earnings per share fell 61%, to 9 cents.
The company, which went public in May, attributed the decline in net income largely to a 44% increase in its noninterest expense 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 related to its acquisition of MetLife's warehouse business during the quarter, while advertising costs increased more than 140% year mostly related to its deposit-gathering campaign.
EverBank's shares were trading at $11.92 midday Thursday, down four cents from Wednesday's closing price.