EverBank Financial Earnings: What to Watch for


Earnings season is here once again. We're about a week in, but we have already seen some impressive numbers from banking behemoths JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America. While these results are important to those of us that follow the banking sector, my interest lies in some of the smaller banks beyond the behemoths.

With that in mind, I turn my attention to a regional bank that will be reporting earnings tomorrow. Here are some things I will be watching when it comes to EverBank Financial (NYS: EVER) .

What analysts are expecting
EverBank has only been a public company in its current state since May of this year, though it has a history of operations dating back nearly 50 years. Its first public quarter ended June 2012, and the bank saw an EPS of $0.24 per share. This quarter, earnings are expected to check in at $0.26 per share on revenues of $225.2 million for the quarter.

Balance sheet improvement
Though the company just returned back to public life, we can still look for improvement over the previous quarter in many important banking metrics. The second quarter saw nonperforming assets check in at 1.46%. Compared with the 6.6% nonperforming assets ratio at Popular (NAS: BPOP) a bank of similar size, EverBank is performing well thus far, but its track record may not be long enough to fully judge just yet.

What else to look for
EverBank also completed the acquisition of a warehouse finance business from MetLife (NYS: MET) during the quarter, opening up additional revenue streams as the bank tries to find its footing as a public company once again. The bank took a step in the right direction by initiating a dividend with its earnings report. Though small, any dividend is still better than no dividend, so hopefully the bank will continue to improve so it can return value to shareholders going forward.

While EverBank has only been public (again) for a short time, there are still other great opportunities among some of the smaller banks. Over the next few years, some of the best performance in the financial sector could come from regional banks, including one small, under-the-radar bank. It's been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading.

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Robert Eberhard has no positions in the stocks mentioned above. Follow him on Twitter for earnings coverage throughout the next few weeks. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Motley Fool newsletter services recommend Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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