Florida Mortgage Lender Announces Sale

NetBank Inc. will sell a portion of its business to EverBank while retaining its Clearwater-based Florida mortgage lender, Market Street Mortgage Corp.

EverBank will acquire NetBank’s held for investment loan portfolio, its business finance operations, and $2.5 billion in core and brokered deposits.

The deal also includes the NetBank brand and related trademarks and service marks, but not those of the Florida mortgage company division.

The price was not disclosed, but NetBank said it represented a discount to the current carrying value of the assets and liabilities being sold.

NetBank said it would record a loss on the sale of between $60-70 million.

NetBank said it had been under extreme financial pressure for more than a year due to a difficult Florida mortgage origination market, a flat yield curve and other factors.

The pressures have resulted in large operating losses that significantly reduced the company’s capital position and prompted heightened regulatory oversight.

EverBank, based in Jacksonville, said the deal would increase its assets to about $7 billion, its deposits to about $6 billion and its customer base to more than 550,000. The deal is expected to close by the end of June.

NetBank said its remaining business would include its loan servicing operation, along with Market Street Mortgage, which was acquired by NetBank in 2001.

SOURCE: Tampa Bay Business Journal