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EverBank 2nd-qtr profit falls on higher expenses
July 25, 2012 / 9:41 PM / 5 years ago

EverBank 2nd-qtr profit falls on higher expenses

* Q2 EPS $0.09 vs $0.23 last year

* Sets quarterly dividend of $0.02 per share

July 25 (Reuters) - EverBank Financial Corp, which went public in May, posted a lower quarterly profit on higher expenses, and initiated a quarterly dividend.

The company’s second-quarter net income fell to $11.2 million, or 9 cents per share, from $21.8 million, or 23 cents per share, a year earlier.

Excluding items, it earned 33 cents per share.

Analysts were expecting the lender to earn 24 cents in the quarter, according to Thomson Reuters I/B/E/S.

Total non-interest expense for the quarter jumped almost 45 percent to $175.8 million.

Provision for loan and lease losses fell by $3.2 million to $5.8 million.

Net interest income rose by almost 11 percent to $125 million.

EverBank which has a market capitalization of about $1.37 billion, has been using acquisitions to diversify its operations and increase assets.

It announced plans to buy GE Capital’s Business Property Lending Inc division for $2.51 billion earlier this month to boost its ability to lend to small and mid-size companies.

The lender also agreed to buy MetLife Inc’s warehouse finance business in February.

EverBank, which counts private equity firms TPG, Sageview Partners and New Mountain Partners as investors, also declared its first quarterly dividend of 2 cents per share.

The company’s shares, which have risen more than 19 percent from their IPO price, closed at $11.95 on Wednesday on the New York Stock Exchange. (Reporting by Sharanya Hrishikesh in Bangalore; Editing by Roshni Menon)

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