EVER - EverBank

[constructive]

EverBank is a primarily online bank which trades at lower multiples than their closest comp, Bank of Internet. They are known for their unique foreign currency and precious metal accounts, but 92% of deposits are in traditional forms. As a national online bank they appear to have a clear growth and profitability runway compared to regional banks.

 

The latest corporate presentation is attached (edit: fixed broken link). It appears they are well suited for a rising interest rate environment and they may be able to ramp ROE back up above 15% after taking a breather the past few years.

 

                Market Cap          P/B          P/E        TTM ROE      5 Yr ROE      5 Yr Rev Growth

EVER            $1.2B                1.3            14            12                11                    20%

BOFI            $570M              3.5            23            18                17                    17%

 

For comparison, the fastest growing regional banks.

SBNY            $2.9B                2.8            23            13                11                    17%

EGBN          $440M              2.3            15            16                10                    20%

 

I might like to own Bank of Internet too, but not at the current price. As a side note, I remember looking at Bank of Internet in 2011, around $15 a share. I dropped the idea quickly after visiting their lame website: http://web.archive.org/web/20110205104007/http://www.bankofinternet.com/

Now it is much improved: https://www.bankofinternet.com/

Everbank's is pretty good too: https://www.everbank.com/

 

The latest 10K: http://idc.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFilingConvPDF1?SessionID=5l8u6yzvKVVhoIS&ID=9164696

 

Anyone have a sense why it's cheap? It IPOed in 2012 and TPG, Sageview, Aquiline, and Timucuan still own 23% of the company. It seems to be flying under the radar, for example BOFI has 18 articles on Seeking Alpha and EVER only has 2.

September_Investor_Update_vFINAL.PDF