Oct 16, 2026 earnings call — EverBank merger update and Q4 results
Earnings per share up 22% year-over-year; net income available to common shareholders was $56.3 million for the quarter.
Revenue $0.2B (est $0.2B) · EPS $0.85 (est $0.84)
Key quotes
"With this partnership, we will be able to address these fundamental risks and turn what was a weakness into a strength."
"The company sold $543 million of single-family residential loans during the quarter and has entered into an agreement to sell $429 million of multifamily loans in the first quarter of fiscal 2027."
"$39.2 million of net charge-offs were taken during the quarter, inclusive of the problem loan mentioned previously."
Analyst Q&A 4
timing and yields of loan sales
Q (Jeff Rulis · D.A. Davidson): He asked when the loan sales closed and what the average yields were. He also asked why those loans were chosen, whether more sales are planned, the outlook for earning assets, and the makeup of remaining nonaccruals.
A: The single-family sale closed at the end of September and the multifamily purchase and sale agreement was signed on 9/30/2026, with the multifamily expected to close in December. The single-family loans yield about 4.25%–4.40% on average and the multifamily held for sale is about 4.8%. Management said these came from the Luther Burbank portfolio (previously marked with purchase accounting), they have no immediate plans for more sales but will be opportunistic, they expect earning assets to be relatively flat to modestly higher with loan growth, and some larger nonaccrual credits remain including a $40 million real estate loan expected to be sold.
"The single family is reflective of a rate in the 4.25%, 4.30%, 4.40% range on average, and the single multifamily bucket that is held for sale is in about 4.8% today." — Kelli Holz (CFO)
offsetting NII from loan declines
Q (Matthew Clark · Piper Sandler): He asked whether the roughly $1 billion decline in loans will reduce NII and if they plan to offset that by cutting expenses or reinvesting. He also asked about expense run rate, CD repricing, deposit beta, and share buybacks.
A: Management has no definitive plans but said they can pull levers on the investment side and could replace sold loans with higher-yielding investments to defend NII, and they expect margin to rise. The quarter had elevated expenses from year-end cleanup and, excluding merger items, expense should be flat to modestly lower next quarter. Current CD specials are 4.1% for a 13-month CD, the assumed beta on interest-bearing deposits is about 50%, and while there is appetite for buybacks they cannot repurchase shares now because of proxy constraints.
"One of the nice things about higher rates is the investments now yield higher than these loans that we got rid of, so we could replace those loans with investments." — Brent Beardall (CEO)
expenses, accretion, and loan repricing
Q (Andrew Terrell · Stephens): He asked whether the $115 million core expense level is a sustainable run rate and whether the reported loan yields included accretable interest. He also asked how accretion will change and what portion of loans are floating or reprice soon.
A: Management said the cleaned-up $115 million level is a fair number to use but they remain opportunistic in hiring and investments. The quoted single-family and multifamily yields are book yields; the single-family sale recognized about $18 million of the fair value mark and sales accelerated accretable income, leaving $119 million of accretable yield on the balance sheet and reducing accretion modestly (about $35 million removed from the balance as of June 30, lowering quarterly accretion by roughly $0.5 million). They have $7.1 billion of loans that reprice within a quarter (including swaps).
"So we have $7.1 billion that reprice within a quarter." — Brent Beardall (CEO)
EverBank meetings and NII plans
Q (Kelly Motta · KBW): She asked what feedback management heard from employees and front-line people since the EverBank deal announcement. She also asked how proceeds from loan sales will be allocated between paying down borrowings and reinvestment, and about accretion and the credit mark since the deal.
A: Management said meetings have been optimistic as people see how the two banks complement each other, and leadership is more excited about the deal now than at announcement. They have not made final decisions on using loan-sale proceeds but will work to defend NII and may buy investments rather than shrink income; Kelli noted they factored a roughly $0.5 million per quarter drag to accretion from the loan sales. From a credit mark standpoint, there were no significant changes from the deal announcement and they will keep the same assumptions.
"Sincerely, I am more excited about the deal today than when we announced it a month ago." — Brent Beardall (CEO)