1 3rd Quarter Earnings Supplement October 24, 2012
2 Disclaimer THIS PRESENTATION HAS BEEN PREPARED BY EVERBANK FINANCIAL CORP ("EVERBANK" OR THE “COMPANY”) SOLELY FOR INFORMATIONAL PURPOSES BASED ON ITS OWN INFORMATION, AS WELL AS INFORMATION FROM PUBLIC SOURCES. THIS PRESENTATION HAS BEEN PREPARED TO ASSIST INTERESTED PARTIES IN MAKING THEIR OWN EVALUATION OF EVERBANK AND DOES NOT PURPORT TO CONTAIN ALL OF THE INFORMATION THAT MAY BE RELEVANT. IN ALL CASES, INTERESTED PARTIES SHOULD CONDUCT THEIR OWN INVESTIGATION AND ANALYSIS OF EVERBANK AND THE DATA SET FORTH IN THIS PRESENTATION AND OTHER INFORMATION PROVIDED BY OR ON BEHALF OF EVERBANK. EXCEPT AS OTHERWISE INDICATED, THIS PRESENTATION SPEAKS AS OF THE DATE HEREOF. THE DELIVERY OF THIS PRESENTATION SHALL NOT, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE WILL BE NO CHANGE IN THE AFFAIRS OF THE COMPANY AFTER THE DATE HEREOF. CERTAIN OF THE INFORMATION CONTAINED HEREIN MAY BE DERIVED FROM INFORMATION PROVIDED BY INDUSTRY SOURCES. EVERBANK BELIEVES THAT SUCH INFORMATION IS ACCURATE AND THAT THE SOURCES FROM WHICH IT HAS BEEN OBTAINED ARE RELIABLE. EVERBANK CANNOT GUARANTEE THE ACCURACY OF SUCH INFORMATION, HOWEVER, AND HAS NOT INDEPENDENTLY VERIFIED SUCH INFORMATION. THIS PRESENTATION MAY CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, AND SUCH STATEMENTS ARE INTENDED TO BE COVERED BY THE SAFE HARBOR PROVIDED BY THE SAME. WORDS SUCH AS “OUTLOOK,” “BELIEVES,” “EXPECTS,” “POTENTIAL,” “CONTINUES,” “MAY,” “WILL,” “COULD,” “SHOULD,” “SEEKS,” “APPROXIMATELY,” “PREDICTS,” “INTENDS,” “PLANS,” “ESTIMATES,” “ANTICIPATES” OR THE NEGATIVE VERSION OF THOSE WORDS OR OTHER COMPARABLE WORDS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS BUT ARE NOT THE EXCLUSIVE MEANS OF IDENTIFYING SUCH STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE NOT HISTORICAL FACTS, AND ARE BASED ON CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS ABOUT THE COMPANY’S INDUSTRY, MANAGEMENT’S BELIEFS AND CERTAIN ASSUMPTIONS MADE BY MANAGEMENT, MANY OF WHICH, BY THEIR NATURE, ARE INHERENTLY UNCERTAIN AND BEYOND THE COMPANY’S CONTROL. ACCORDINGLY, YOU ARE CAUTIONED THAT ANY SUCH FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT. ALTHOUGH THE COMPANY BELIEVES THAT THE EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS ARE REASONABLE AS OF THE DATE MADE, EXPECTATIONS MAY PROVE TO HAVE BEEN MATERIALLY DIFFERENT FROM THE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. UNLESS OTHERWISE REQUIRED BY LAW, EVERBANK ALSO DISCLAIMS ANY OBLIGATION TO UPDATE ITS VIEW OF ANY SUCH RISKS OR UNCERTAINTIES OR TO ANNOUNCE PUBLICLY THE RESULT OF ANY REVISIONS TO THE FORWARD-LOOKING STATEMENTS MADE IN THIS PRESENTATION. INTERESTED PARTIES SHOULD NOT PLACE UNDUE RELIANCE ON ANY FORWARD-LOOKING STATEMENT AND SHOULD CONSIDER THE UNCERTAINTIES AND RISKS DISCUSSED UNDER ITEM 1A. “RISK FACTORS” OF EVERBANK’S QUARTERLY REPORT ON FORM 10-Q AND IN ANY OF EVERBANK’S SUBSEQUENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
3 Key Highlights – 3Q12 Earnings per share growth Adjusted EPS of $0.30, up 11% year-over-year (YoY) GAAP EPS of $0.19, up 138% YoY Increased adjusted ROAE and ROAA Adjusted ROAE of 11.9%, up 167bps YoY Adjusted ROAA of 0.95%, up 12bps YoY Strategically positioned balance sheet for Business Property Lending (BPL) acquisition Total loans up $496mm, or 5%, linked quarter (LQ) to $11.4bn Core deposits up $1.0bn, or 9%, LQ to $11.8bn Other borrowings increased $320mm, or 13%, LQ to $2.8bn to match fund longer duration BPL assets Continued strong asset generation volume Total asset generation of $3.3bn for the quarter $1.0bn retained organic asset generation Solid capital ratios Tier 1 leverage (bank): 8.0% Total risk-based (bank): 16.1% Estimated tier 1 common equity ratio under fully phased-in Basel III: 11.0% - 11.5% Estimated pro forma for BPL at 9/30: 8.5% - 9.0% Improved credit quality Adjusted non-performing assets were 1.29% of total assets, down 17bps LQ Net charge-offs were 0.25% of average loans held for investment, down 9bps LQ Execution of strategic goals Continued investment in retail lending platform Closed acquisition of BPL on October 1, 2012 Note: A reconciliation of non-GAAP financial measures can be found in the appendix. Basel III information on a fully phased-in basis and based on proposed guidance through September 30, 2012.
4 Acquisition of Business Property Lending, Inc. Closed acquisition of Business Property Lending on October 1, 2012 In line with original plan Quick regulatory approval process Transaction highlights Includes commercial loan origination and servicing businesses Purchased $2.3bn of performing loans with average yields of ~6.5% 110 employees including senior management team Servicing rights on $2.9bn of securitized business loans Integration on schedule Strategically attractive Accelerates strategic growth plan Adds strong commercial asset generation capability Diversifies balance sheet into high quality business property loans Complements distribution strategy in key markets Immediately accretive to EPS, NIM and ROE
5 Balance Sheet Overview Strong Returns High Growth Low Risk Loans End of period loans: $11.4bn, up $0.5bn, or 5%, LQ and $3.4bn, or 42%, YoY Loans held for sale (HFS) decreased $1.8bn, or 56%, LQ Loans held for investment (HFI) increased $2.3bn, or 29%, LQ Transferred $1.9bn of loans to HFI from HFS Securities Securities decreased $154.9mm, or 7%, LQ to $2.0bn Deposits Total core deposits increased to $11.8bn, up $1.0bn, or 9%, LQ and $1.6bn, or 16%, YoY Borrowings Balances up $320mm, or 13%, LQ Capital Completed escrow conversion in August adding $48.7mm of capital A significant amount of balance sheet positioning for the quarter was completed for the purpose of closing BPL
6 Income Statement Overview Strong Returns High Growth Low Risk Net Interest Income Total interest income up $4.7mm, or 3%, LQ driven by an increase in interest and fees collected on loans and leases Interest expense up $3.5mm, or 11%, LQ and $1.6mm, or 5%, YoY due to increased deposits and borrowings Net interest margin of 3.66% Core net interest margin of 3.37% Noninterest Income Loan production and gain on sale income of $96.3mm, an increase of $16.5mm, or 21%, LQ due to strong residential mortgage origination volumes Loan servicing fee income was $42.3mm, down $0.1mm, or 0.3%, LQ MSR amortization expense of $36.3mm and increase in non-cash valuation allowance of $18.2mm Noninterest Expense Salaries, commissions and other employee benefit expenses were $85.4mm, up $9.1mm, or 12%, LQ Retail lending expansion represented $5.1mm Addition of approximately 150 FTEs General and administrative expenses down $2.2mm, or 3%, LQ Decreased professional and legal expenses in the quarter Increased marketing activity to grow deposits Foreclosure and OREO expenses increased due to GNMA buyout activity
7 6,198 6,442 7,245 7,708 9,980 1,793 2,725 2,531 3,179 1,403 6.21% 5.72% 5.45% 5.11% 4.97% 3Q11 4Q11 1Q12 2Q12 3Q12 HFI HFS Average Loan HFI Yield Loans Strong Returns High Growth Low Risk End of Period Loans ($mm) End of period loans up $0.5bn, or 5%, LQ and $3.4bn, or 42%, YoY Residential loans flat LQ and up 33% YoY Commercial loans up 26% LQ and 102% YoY Lease financing receivables up 9% LQ and 43% YoY Loan growth driven by strong organic origination activity in all asset classes Loan yield on average loans HFI of 4.97% down 14 bps LQ Decrease in excess accretion and addition of short- term, variable rate warehouse finance and vendor finance loans Transferred $1.9bn of residential loans HFS to HFI during the quarter Total Loan Composition ($mm) Quarter Highlights 11,383 7,990 9,167 9,776 10,887 11,383 7,990 9,167 9,776 10,887 73% 79% 22% 30% 26% 29% 12% 57% 51 56% 48% 61% 14% 13% 1 % 12% 13% 7% 6% 6% 6% 7% 5% 7% 3Q11 4Q11 1Q12 2Q12 3Q12 Residential HFS Residential HFI Commercial Commercial Finance Warehouse Finance
8 9,029 8,956 9,139 9,214 9,946 1,127 1,455 1,305 1,463 1,591 0.94% 0.82% 0.81% 0.77% 0.78% 3Q11 4Q11 1Q12 2Q12 3Q12 Interest-bearing Noninterest-bearing Cost of deposits Deposits Strong Returns High Growth Low Risk Average Deposits and Rates ($mm) Average deposits up $861.3mm, or 8%, LQ and $1.4bn, or 14%, YoY Noninterest-bearing deposits up 9% LQ and 41% YoY Interest checking deposits up 9% LQ and 13% YoY Global market deposits down 5% LQ and 32% YoY MMDA & savings deposits up 8% LQ and 11% YoY Time deposits up 15% LQ and 29% YoY Cost of deposits increased 1 bp LQ and decreased 16 bps YoY to 0.78% Over 63% of CD book will mature in the next 12 months 11,537 10,156 10,411 10,443 10,676 Quarter Highlights 3Q12 Deposit Composition Noninterest-bearing Interest Checking MMDA & Savings Global Market Time Deposits Note: Cost of deposits shown above represents interest expense paid on deposits over average total deposits. 13% 12% 21% 11%36% 20%
9 3.98% 3.94% 3.97% 3.86% 3.66% 3Q11 4Q11 1Q12 2Q12 3Q12 Net Interest Income Net Interest Margin Net Interest Income Net Interest Income ($mm) Net interest income affected by positioning of balance sheet to support BPL acquisition Net interest income up $1.2mm, or 1%, LQ and $15.3mm, or 14%, YoY Average interest earning assets up 5% LQ and 24% YoY Reported NIM declined 20bps LQ and 32bps YoY to 3.66% Core NIM declined 16bps LQ to 3.37% Driven by growth in warehouse finance and lender finance loans as well as balance sheet positioning to fund BPL Expected ~6.5% BPL loan yield should positively impact NIM 111 115 116 125 126 Core NIM Quarter Highlights ($mm) 1Q12 2Q12 3Q12 Average interest-earning assets 11,707$ 13,025$ 13,716$ Net interest income 116 125 126 Reported NIM 3.97% 3.86% 3.66% Net interest income 116$ 125$ 126$ Less: Discount accretion from Tygris acquisition 13 11 10 Adjusted net interest income 102$ 114$ 116$ Core NIM 3.52% 3.53% 3.37%
10 Noninterest Income and Expense Quarter Highlights Adjusted noninterest income up $11.3mm, or 11%, LQ and $41.5mm, or 56%, YoY Loan production and gain on sale income up $16.5mm, or 21%, LQ on lending volume of $2.5bn Loan servicing fee income flat LQ despite increase in MSR valuation allowance Non-cash increase in MSR valuation allowance of $18.2mm Noninterest Income Noninterest Expense Quarter Highlights Adjusted pre-credit noninterest expense increased $9.6mm, or 7%, LQ and $40.0mm, or 35%, YoY Salaries, commissions and other employee benefits rose $9.1mm, or 12%, LQ Increased retail lending staffing Commissions and incentives increased due to strong loan origination activity Advertising and marketing increase of $1.7mm Credit-related expenses up $4.3mm, or 21%, LQ due to GNMA buyout activity ($mm) 3Q11 2Q12 3Q12 Loan servicing fee income 48$ 42$ 42$ MSR amortization and valuation allowance (44) (64) (55) Loan production and gain o sale income 27 80 96 Deposit, lease and other income 22 16 13 Noninterest income 53$ 74$ 97$ Increase in MSR valuation allowance 21 30 18 Adjusted noninterest income 74$ 104$ 116$ ($mm) 3Q11 2Q12 3Q12 Salaries, commissions and other employee benefits expense 58$ 76$ 85$ Equipment expense 14 17 18 Occupa y expense 5 6 7 General and administrative expense 63 77 74 Total noninterest expense 140$ 176$ 184$ Transaction and regulatory related 8 10 4 Credit-related 17 21 25 Adjusted pre-credit noninterest expense 115$ 145$ 155$
11 2 13 15 1 2 5 14 6 5 3Q11 2Q12 3Q12 GNMA Buyout Expenses Foreclosure and OREO Other Credit-related Credit-related Expense Breakdown Commentary Credit-related Expenses ($mm) 17 21 25 Other credit-related expenses decreased $0.4mm, or 7%, LQ and $8.5mm, or 61%, YoY Foreclosure and OREO expenses increased $2.4mm, or 106%, LQ and increased $3.5mm, or 275%, YoY GNMA Buyout expenses increased $2.2mm, or 18%, LQ and $12.9mm, or 619%, YoY GNMA Buyouts were $2.7bn at the end of the quarter
12 74% 66% 58% 37% 31% 2% 3% 13% 9% 10% 24% 31% 29% 30% 28% 24% 31% 3Q11 4Q11 1Q12 2Q12 3Q12 Residential Commercial Commercial finance Warehouse finance Banking and Wealth Management Net interest income down $0.2mm, or 0.2%, LQ and $10.3mm, or 10%, YoY due to loan growth Provision for loan and lease losses down $1.5mm, or 30%, LQ and $9.6mm, or 73%, YoY due to credit quality improvement Credit-related expenses increased due to elevated foreclosure activity related to our GNMA pool buyout loans Segment Earnings Segment Highlights Retained Asset Volume ($mm) 950 495 617 501 739 ($mm) 3Q11 2Q12 3Q12 Net interest income 104$ 115$ 115$ Provision for loan and lease losses (13) (5) (4) Net interest income after provision 91 110 111 Noninterest income 24 26 21 Noninterest expense: Credit-related xp nses 0 14 19 All other noninterest expense 51 62 61 Pre-tax income 64$ 60$ 52$ Adjustment items (pre-tax) 0 1 0 Adjusted pre-tax i come 65$ 61$ 52$
13 Mortgage Banking Net interest income up $1.3mm, or 11%, LQ and $3.2mm, or 35%, YoY Noninterest income increased $47.7mm, or 165%, YoY as a result of increased gain on sale activity due to increased origination activity Continued high volume of originations due to historically low rates and HARP 2.0 Other credit-related expenses were down $0.6mm, or 16%, LQ and $7.6mm, or 68%, YoY reflecting positive credit trends Segment Earnings Segment Highlights Key Metrics ($mm) 3Q11 2Q12 3Q12 Net interest income after provision 9$ 11$ 12$ Noninterest income 29 49 77 Noninterest expense: Foreclosure and OREO expense 6 3 2 Other credit-related expenses 11 4 4 All other noninterest expense 42 61 66 Pre-tax income (loss) (21)$ (8)$ 17$ Adjustment items (pr -tax): 21 30 18 2 5 2 Adjusted pre-tax income (loss) 2$ 28$ 37$ Increase in MSR valuation allowance Transaction and non-recurring regulatory relat d expense 3Q11 2Q12 3Q12 Mortgage lending volum $1.6bn $2.3bn $2.5bn Gain on sale margin 136bps 288bps 361bps Servicing UPB $55.8bn $53.3bn $52.3bn Average servicing fee 31bps 30bps 30bps
14 Corporate Services GAAP pre-tax loss of $34.0mm, up $0.4mm, or 1%, LQ Adjusted pre-tax loss of $31.5mm, up $1.5mm, or 5%, LQ Noninterest expense of $32.5mm, down $0.3mm, or 1%, LQ Segment Earnings Segment Highlights (1) Ratio represents total company assets per Corporate Services FTE ($mm) 3Q11 2Q12 3Q12 Net interest income (2)$ (2)$ (1)$ Noninterest expense 29 33 32 Pre-tax income (loss) (31)$ (34)$ (34)$ Adjustment items (pre-tax): 5 4 3 Adjusted pre-tax income (26)$ (30)$ (31)$ Memo: FTE 496 541 588 Total Assets(1) / FTE 25.3$ 27.8$ 28.1$ Transaction and non-recurring regulatory related expense
15 2010 2011 1Q12 2Q12 3Q122010 2011 1Q12 2Q12 3Q12 12.32% 1.29% (10.20)% (0.82)% Regulatory NPAs / Assets Impact Ex. Govt Insured Loans Impact Ex. Tygris and Bank of Florida Adjusted NPAs / Assets Adjusted NPA / Total Assets Note: A reconciliation of Non-GAAP financial measures can be found in the appendix (1) Tygris and Bank of Florida purchase-impaired loans and leases accounted for under ASC 310-30 or by analogy Asset Quality Adjusted NPA ratio excludes loans and leases with enhanced credit protection (1) Adjusted NPA / Total Assets Build Highlights NCO / Average Loans HFI Adjusted non-performing assets to total assets declined 17 bps LQ resulting from a $6.8mm, or 3.1%, decrease in non-performing assets Net charge-offs to average loans HFI decreased 9 bps LQ to 0.25% Allowance for loan and lease losses decreased $0.9mm, or 1.2%, LQ as net charge-offs of $5.3mm exceeded provisions of $4.4mm 1.46% 1.02% 0.65% 0.34% 1.29% 2.11% 1.86% 1.63% 1.46% 0.25%
16 Mortgage Banking Drivers Revenue vs. Amortization and Valuation Allowance ($mm) Summary Servicing fee income Loan production and gain on sale income Amortization Addition to MSR valuation allowance (23) (28) (29) (34) (36) (21) (19) (15) (30) (18) 48 45 46 42 42 27 41 56 80 96 3Q11 4Q11 1Q12 2Q12 3Q12 Current low interest rate environment generates positive long-term net economic value for our mortgage business September 30, 2012 mortgage servicing rights carrying value reflects the significant decline in mortgage rates at the end of the third quarter and the success of the government’s HARP initiatives An increase in expected refinance activity will generate residential lending revenues over time, while the non-cash MSR valuation allowance is recorded immediately; we believe the residential lending revenues will more than offset the increase in prepayments Amortization rate of 29% closely approximates the actual payoff activity in the underlying portfolio We believe valuation allowance is recoverable if refinance activity slows
17 Credit – Originated Mortgage Repurchase Reserve Reserve Trends Summary Statistics by Vintage Coverage ratio of 2.5 years LTD realized losses of 9bps for the whole portfolio and expected total life-time realized losses of 16bps 2006 – 2008 quality of production was strong 2006 – 2008 vintages were primarily sold to the large agency aggregators Highlights Reserve Rollforward Losses to date ($mm) '04 - '05 '06 - '08 '09 - '12 Total Total Sold UPB $11,334 $11,978 $23,583 $44,686 Request Rate 0.34% 2.03% 0.32% 0.78% Requests Received 173 1,165 336 1,674 Pending Requests 17 251 31 301 Resolved Requests 156 914 305 1,373 Repurchase Rate 41% 40% 27% 37% Repurchase Requests 64 364 83 510 Average Loan size 221,770 208,597 224,896 219,761 Loss Severity 9% 46% 24% 37% Losses Recognized $1.3 $35.3 $4.5 $41.1 Losses Recognized (bps) 1.1 29.5 1.9 8.8 '04 - '05 '06 - '08 '09 - '12 Total $2,357 $450 $20,448 $23,255 8,977 11,528 3,135 23,640 $11,334 $11,978 $23,583 $46,895 0.34% 2.03% 0.32% 0.78% 0.04% 0.54% 0. 3% 0.22% 41% 40% 27% 37% 7% 22% 4% 22% 9% 46% 24% 37% 43% 51% 30% 45% Sold UPB ($mm) Agency Agency Aggregator Total Sold UPB Last 12 Months Repurchase Rates Request Rates Life Time Life Time Last 12 Months Life Time Last 12 Months Loss Severity($mm) 3Q11 4Q11 1Q12 2Q12 3Q12 Pending Reserves - BoP $ 33.2 $ 33.0 $ 32.0 $ 35.0 $ 34.0 Provisions - New Sales 0.0 0.1 0.4 0.3 - Provisions - Changes in Existing Reserves 2.6 1.2 5.8 1.1 1.7 Charge Offs (2.8) (2.3) (3.2) (2.4) (4.7) Pending Reserves - EoP $ 33.0 $ 32.0 $ 35.0 $ 34.0 $ 31.0 10 11 13 10 Quarters of Coverage at Trailing 4 Quarter Realized Loss Rate
18 Appendix
19 Non-GAAP Reconciliations Adjusted Net Income Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2012 2012 2012 2011 2011 Net income 22,178$ 11,172$ 11,846$ 13,760$ 7,758$ Transaction expense, net of tax 1,268 2,363 821 802 2,108 Non-recurring regulatory related expense, net of tax 1,326 3,780 3,063 3,529 2,643 Increase in Bank of Florida non-accretable discount, net of tax 111 463 2,135 2,208 298 MSR impairment, net of tax 11,302 18,684 9,389 11,638 12,824 Adjusted net income 36,185$ 36,462$ 27,254$ 31,937$ 25,631$
20 Non-GAAP Reconciliations Non-performing Assets (NPA) September 30, June 30, March 31, December 31, December 31, (dollars in thousands) 2012 2012 2012 2011 2010 Total non-accrual loans and leases 167,650$ 168,962$ 170,589$ 193,478$ 213,838$ Accruing loans 90 days or more past due 1,973 1,800 5,119 6,673 1,754 Total non-performing loans (NPL) 169,623 170,762 175,708 200,151 215,592 Other real estate owned (OREO) 43,612 49,248 49,304 42,664 37,450 Total non-performing assets (NPA) 213,235 220,010 225,012 242,815 253,042 Troubled debt restructurings (TDR) less than 90 days past due 82,030 93,184 92,954 92,628 70,173 Total NPA and TDR (1) 295,265$ 313,194$ 317,966$ 335,443$ 323,215$ Total NPA and TDR 295,265$ 313,194$ 317,966$ 335,443$ 323,215$ Government-insured 90 days or more past due still accruing 1,684,550 1,647,567 1,530,665 1,570,787 553,341 Bank of Florida loans accounted for under ASC 310-30: 90 days or more past due 117,506 140,797 146,379 149,743 195,425 OREO 18,557 20,379 22,852 19,456 19,166 Total regulatory NPA and TDR 2,115,878$ 2,121,937$ 2,017,862$ 2,075,429$ 1,091,147$ Adjusted credit quality ratios excluding government-insured loans and loans accounted for under ASC 310-30: (1) NPA to total assets 1.29% 1.46% 1.63% 1.86% 2.11% Credit quality ratios including government-insured loans and loans accounted for under ASC 310-30: NPA to total assets 12.32% 13.49% 13.97% 15.20% 8.50% (1) We define non-performing assets, or NPA, as non-accrual loans, accruing loans past due 90 days or more and foreclosed property. Our NPA calculation excludes government-insured pool buyout loans for which payment is insured by the government. We also exclude loans and foreclosed property acquired in the Bank of Florida acquisition accounted for under ASC 310-30 because as of September 30, 2012, we expected to fully collect the carrying value of such loans and foreclosed property.
21 September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2012 2012 2012 2011 2011 Shareholders' equity 1,339,669$ 1,263,687$ 1,099,404$ 1,070,887$ 1,078,080$ Less: Goodwill and other intangibles (16,586) (16,938) (17,290) (17,642) (17,994) Disallowed servicing asset (33,366) (36,650) (40,783) (38,925) (36,570) Disallowed deferred tax asset (69,412) (70,357) (71,302) (71,803) (72,147) Add: Accumulated losses on securities and cash flow hedges 103,238 110,101 86,981 105,682 85,525 Tier 1 capital 1,323,543 1,249,843 1,057,010 1,048,199 1,036,894 Less: Low-level recourse and residual interests - - (20,424) (21,587) (20,431) Add: Allowance for loan and lease losses 76,469 77,393 78,254 77,765 83,826 Total regulatory capital 1,400,012$ 1,327,236$ 1,114,840$ 1,104,377$ 1,100,289$ Adjusted total assets 16,488,067$ 15,022,729$ 13,731,482$ 13,081,401$ 12,550,738$ Risk-weighted assets 8,701,164 8,424,290 7,311,556 7,043,371 7,007,339 Non-GAAP Reconciliations Regulatory Capital (bank level)