For the quarter ended June 30, 2018, the Company reported net income of
The annualized return on average stockholders’ equity for the six months
ended
Performance Highlights
-
Net interest income increased by
$15.7 million to $255.3 million for the quarter ended June 30, 2018 from$239.6 million for the quarter ended June 30, 2017. Interest income increased by$50.0 million , driven by increases in the average balances of loans and investment securities outstanding as well as increases in yields on interest earning assets. Interest expense increased by$34.3 million , driven primarily by increases in average interest bearing deposits and an increase in the cost of interest bearing liabilities. For the six months endedJune 30, 2018 , net interest income increased by$32.9 million to $503.1 million from$470.2 million for the six months endedJune 30, 2017 . -
The net interest margin, calculated on a tax-equivalent basis, was
3.60% for the quarter ended June 30, 2018 compared to 3.56% for the
immediately preceding quarter ended
March 31, 2018 and 3.76% for the quarter ended June 30, 2017. Significant factors contributing to the decline in the net interest margin from the comparable quarter of the prior year were (i) an increase in the cost of interest bearing liabilities; (ii) the impact on tax equivalent yields of the reduction in the statutory federal income tax rate; and (iii) although yields on all categories of interest earning assets increased, non-covered loans and investment securities were added to the balance sheet at yields lower than the existing yield on earning assets, which is impacted by the yield on covered loans. -
Non-covered loans and leases, including equipment under operating
lease, grew by
$431 million during the quarter. For the six months endedJune 30, 2018 , non-covered loans and leases grew by$497 million . -
For the quarter ended June 30, 2018, total deposits declined by
$62 million . Total deposits increased by$299 million for the six months endedJune 30, 2018 . Growth in non-interest bearing demand deposits accounted for$245 million of this increase. -
Book value per common share grew to
$29.17 at June 30, 2018 from$28.32 at December 31, 2017 while tangible book value per common share increased to$28.44 from$27.59 over the same period. -
During the six months ended
June 30, 2018 , under the terms of the share repurchase program authorized by its Board of Directors, the Company repurchased 1.3 million shares of its common stock for an aggregate purchase price of$54.4 million . During the quarter endedJune 30, 2018 , the Company repurchased 0.1 million shares for an aggregate purchase price of$5.8 million . -
In
July 2018 Moody's Investor Service upgraded the Company andBankUnited, N.A.'s issuer rating to Baa3 from Ba1.
Capital
The Company and its banking subsidiary continue to exceed all regulatory
guidelines required to be considered well capitalized. The Company’s and
BankUnited, Inc. | BankUnited, N.A. | |||||
Tier 1 leverage | 9.7% | 10.2% | ||||
Common Equity Tier 1 ("CET1") risk-based capital | 13.4% | 14.1% | ||||
Tier 1 risk-based capital | 13.4% | 14.1% | ||||
Total risk-based capital | 14.0% | 14.7% | ||||
Loans and Leases
Loans, including premiums, discounts and deferred fees and costs,
totaled
For the quarter ended June 30, 2018, non-covered commercial loans,
including commercial real estate loans, commercial and industrial loans,
and loans and leases originated by our commercial lending subsidiaries,
grew by
The Company's national platforms and the
A comparison of loan portfolio composition at the dates indicated follows:
Non-Covered Loans | Total Loans | |||||||
June 30, 2018 |
December 31, 2017 |
June 30, 2018 |
December 31, 2017 |
|||||
Residential and other consumer loans | 20.6% | 19.8% | 22.2% | 21.7% | ||||
Multi-family | 13.4% | 15.4% | 13.1% | 15.0% | ||||
Non-owner occupied commercial real estate | 21.2% | 21.5% | 20.7% | 21.0% | ||||
Construction and land | 1.2% | 1.5% | 1.2% | 1.5% | ||||
Owner occupied commercial real estate | 9.6% | 9.7% | 9.4% | 9.4% | ||||
Commercial and industrial | 21.5% | 19.9% | 21.1% | 19.4% | ||||
Commercial lending subsidiaries | 12.5% | 12.2% | 12.3% | 12.0% | ||||
100.0% | 100.0% | 100.0% | 100.0% | |||||
Asset Quality and Allowance for Loan and Lease Losses
For the quarters ended June 30, 2018 and 2017, the Company recorded
provisions for loan losses of
Significant offsetting factors impacting the decrease in the provision for loan losses related to non-covered loans for the quarter ended June 30, 2018 as compared to the quarter ended June 30, 2017 were (i) lower loan growth and (ii) a net decrease in reserves related to certain qualitative factors; partially offset by (iii) an increase in the provision related to taxi medallion loans; (iv) an increase in the provision related to specific reserves for other loans; and (v) the relative impact on the provision of changes in quantitative loss factors.
Significant offsetting factors impacting the decrease in the provision
for loan losses related to non-covered loans for the six months ended
Non-covered, non-performing loans totaled
The ratios of the allowance for non-covered loan and lease losses to
total non-covered loans and to non-performing, non-covered loans were
0.63% and 72.11%, respectively, at June 30, 2018, compared to 0.69% and
84.03%, at December 31, 2017. The decrease in the ratio of the allowance
for non-covered loan and lease losses to non-performing, non-covered
loans was primarily a result of the increase in non-accrual multi-family
loans during the six months ended
The following table summarizes the activity in the allowance for loan and lease losses for the periods indicated (in thousands):
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total |
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 518 | $ | 136,958 | $ | 137,476 | $ | 831 | $ | 2,058 | $ | 148,392 | $ | 151,281 | ||||||||||||||||
Provision | — | 294 | 8,701 | 8,995 | 981 | 672 | 11,966 | 13,619 | ||||||||||||||||||||||||
Charge-offs | — | (224 | ) | (12,044 | ) | (12,268 | ) | — | — | (10,237 | ) | (10,237 | ) | |||||||||||||||||||
Recoveries | — | 2 | 766 | 768 | — | 7 | 978 | 985 | ||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 590 | $ | 134,381 | $ | 134,971 | $ | 1,812 | $ | 2,737 | $ | 151,099 | $ | 155,648 | ||||||||||||||||
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total |
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 258 | $ | 144,537 | $ | 144,795 | $ | — | $ | 2,100 | $ | 150,853 | $ | 152,953 | ||||||||||||||||
Provision | — | 567 | 11,575 | 12,142 | 1,812 | 620 | 23,287 | 25,719 | ||||||||||||||||||||||||
Charge-offs | — | (239 | ) | (22,661 | ) | (22,900 | ) | — | (55 | ) | (25,006 | ) | (25,061 | ) | ||||||||||||||||||
Recoveries | — | 4 | 930 | 934 | — | 72 | 1,965 | 2,037 | ||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 590 | $ | 134,381 | $ | 134,971 | $ | 1,812 | $ | 2,737 | $ | 151,099 | $ | 155,648 | ||||||||||||||||
Charge-offs related to taxi medallion loans totaled
Deposits
At June 30, 2018, deposits totaled
Net interest income
Net interest income for the quarter ended June 30, 2018 increased to
The Company’s net interest margin, calculated on a tax-equivalent basis,
was 3.60% for the quarter ended June 30, 2018, compared to 3.56% for the
immediately preceding quarter ended
Significant offsetting factors impacting the declines in net interest
margin for the quarter and six months ended
-
The tax-equivalent yield on loans increased to 5.43% and 5.35%,
respectively, for the quarter and six months ended
June 30, 2018 , compared to 5.24% and 5.15% for the quarter and six months endedJune 30, 2017 , reflecting increased yields on both non-covered and covered loans. -
The tax-equivalent yield on non-covered loans was 3.96% and 3.89%,
respectively, for the quarter and the six months ended
June 30, 2018 , compared to 3.78% and 3.70% for the quarter and six months endedJune 30, 2017 . The most significant factor contributing to the increased yield on non-covered loans was the impact of increases in benchmark interest rates. -
The tax-equivalent yield on covered loans increased to 70.82% and
67.96%, respectively, for the quarter and six months ended
June 30, 2018 from 54.51% and 52.10% for the quarter and six months endedJune 30, 2017 . -
The tax-equivalent yield on investment securities increased to 3.33%
and 3.19%, respectively, for the quarter and six months ended
June 30, 2018 from 3.05% and 3.03% for the quarter and six months endedJune 30, 2017 . -
Tax-equivalent yields on non-covered loans and investment securities
and the net interest margin were each negatively impacted by
approximately 0.08% for the quarter ended June 30, 2018 as compared to
the quarter ended
June 30, 2017 as a result of the reduction in the statutory federal income tax rate. For the six months endedJune 30, 2018 as compared to the six months endedJune 30, 2017 , the tax rate change negatively impacted the net interest margin by approximately 0.08%. - Growth of non-covered loans and investment securities at yields lower than the overall yield on interest earning assets.
-
The average rate on interest bearing liabilities increased to 1.58%
and 1.48%, respectively for the quarter and six months ended
June 30, 2018 , from 1.07% and 1.03% for the quarter and six months endedJune 30, 2017 , reflecting higher average rates on both interest bearing deposits and FHLB advances. Increases in the cost of interest bearing liabilities primarily reflect increases in market interest rates and extension of the duration of FHLB advances.
The Company’s net interest margin continues to be impacted by reclassifications from non-accretable difference to accretable yield on ACI loans. Non-accretable difference at acquisition represented the difference between the total contractual payments due and the cash flows expected to be received on these loans. The accretable yield on ACI loans represented the amount by which undiscounted expected future cash flows exceeded the recorded investment in the loans. As the Company’s expected cash flows from ACI loans have increased since the FSB Acquisition, the Company has reclassified amounts from non-accretable difference to accretable yield, resulting in increases in the yield on covered loans.
Changes in accretable yield on ACI loans for the six months ended
Balance, December 31, 2016 | $ | 675,385 | |||||||
Reclassifications from non-accretable difference, net | 81,501 | ||||||||
Accretion | (301,827 | ) | |||||||
Balance, December 31, 2017 | 455,059 | ||||||||
Reclassifications from non-accretable difference, net | 60,490 | ||||||||
Accretion | (167,761 | ) | |||||||
Balance, June 30, 2018 | $ | 347,788 |
Non-interest expense
Non-interest expense totaled
Amortization of the
Provision for income taxes
The effective income tax rate was 23.2% and 23.1% for the quarter and
six months ended
Non-GAAP Financial Measures
Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful base for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at June 30, 2018 (in thousands except share and per share data):
Total stockholders’ equity | $ | 3,099,433 | |||||||
Less: goodwill and other intangible assets | 77,740 | ||||||||
Tangible stockholders’ equity | $ | 3,021,693 | |||||||
Common shares issued and outstanding | 106,241,116 | ||||||||
Book value per common share | $ | 29.17 | |||||||
Tangible book value per common share | $ | 28.44 |
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m.
ET on Tuesday, July 24, 2018 with President and Chief Executive Officer,
The earnings release will be available on the Investor Relations page
under About Us on www.bankunited.com
prior to the call. The call may be accessed via a live Internet webcast
at www.bankunited.com
or through a dial in telephone number at (855) 798-3052 (domestic) or
(234) 386-2812 (international). The name of the call is
About BankUnited, Inc. and the FSB Acquisition
BankUnited, Inc., with total assets of
On May 21, 2009,
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance.
The Company generally identifies forward-looking statements by terminology 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. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 which is available at the SEC’s website (www.sec.gov).
BANKUNITED, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED | |||||||||
(In thousands, except share and per share data) | |||||||||
June 30, 2018 |
December 31, 2017 |
||||||||
ASSETS | |||||||||
Cash and due from banks: | |||||||||
Non-interest bearing | $ | 10,937 | $ | 35,246 | |||||
Interest bearing | 368,319 | 159,336 | |||||||
Cash and cash equivalents | 379,256 | 194,582 | |||||||
Investment securities (including securities recorded at fair value of $7,093,068 and $6,680,832) | 7,103,068 | 6,690,832 | |||||||
Non-marketable equity securities | 278,739 | 265,989 | |||||||
Loans held for sale | 46,829 | 34,097 | |||||||
Loans (including covered loans of $451,350 and $503,118) | 21,869,723 | 21,416,504 | |||||||
Allowance for loan and lease losses | (134,971 | ) | (144,795 | ) | |||||
Loans, net | 21,734,752 | 21,271,709 | |||||||
FDIC indemnification asset | 200,783 | 295,635 | |||||||
Bank owned life insurance | 261,758 | 252,462 | |||||||
Equipment under operating lease, net | 591,267 | 599,502 | |||||||
Goodwill and other intangible assets | 77,740 | 77,796 | |||||||
Other assets | 675,379 | 664,382 | |||||||
Total assets | $ | 31,349,571 | $ | 30,346,986 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Liabilities: | |||||||||
Demand deposits: | |||||||||
Non-interest bearing | $ | 3,315,550 | $ | 3,071,032 | |||||
Interest bearing | 1,621,940 | 1,757,581 | |||||||
Savings and money market | 10,590,438 | 10,715,024 | |||||||
Time | 6,650,022 | 6,334,842 | |||||||
Total deposits | 22,177,950 | 21,878,479 | |||||||
Federal Home Loan Bank advances | 5,071,000 | 4,771,000 | |||||||
Notes and other borrowings | 402,799 | 402,830 | |||||||
Other liabilities | 598,389 | 268,615 | |||||||
Total liabilities | 28,250,138 | 27,320,924 | |||||||
Commitments and contingencies | |||||||||
Stockholders' equity: | |||||||||
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 106,241,116 and | |||||||||
106,848,185 shares issued and outstanding | 1,062 | 1,068 | |||||||
Paid-in capital | 1,455,554 | 1,498,227 | |||||||
Retained earnings | 1,592,157 | 1,471,781 | |||||||
Accumulated other comprehensive income | 50,660 | 54,986 | |||||||
Total stockholders' equity | 3,099,433 | 3,026,062 | |||||||
Total liabilities and stockholders' equity | $ | 31,349,571 | $ | 30,346,986 | |||||
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 288,264 | $ | 249,409 | $ | 562,264 | $ | 485,771 | ||||||||
Investment securities | 56,092 | 46,054 | 106,077 | 89,773 | ||||||||||||
Other | 4,499 | 3,372 | 8,290 | 6,829 | ||||||||||||
Total interest income | 348,855 | 298,835 | 676,631 | 582,373 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 65,298 | 39,514 | 121,659 | 74,242 | ||||||||||||
Borrowings | 28,294 | 19,732 | 51,900 | 37,949 | ||||||||||||
Total interest expense | 93,592 | 59,246 | 173,559 | 112,191 | ||||||||||||
Net interest income before provision for loan losses | 255,263 | 239,589 | 503,072 | 470,182 | ||||||||||||
Provision for loan losses (including $294, $1,653, $567 | ||||||||||||||||
and $2,432 for covered loans) | 8,995 | 13,619 | 12,142 | 25,719 | ||||||||||||
Net interest income after provision for loan losses | 246,268 | 225,970 | 490,930 | 444,463 | ||||||||||||
Non-interest income: | ||||||||||||||||
Income from resolution of covered assets, net | 4,238 | 8,361 | 7,555 | 15,666 | ||||||||||||
Net loss on FDIC indemnification | (1,400 | ) | (2,588 | ) | (5,015 | ) | (9,336 | ) | ||||||||
Deposit service charges and fees | 3,510 | 3,252 | 6,997 | 6,455 | ||||||||||||
Gain (loss) on sale of loans, net (including $(2,002), | ||||||||||||||||
$(3,447), $(298) and $(1,565) related to covered loans) | 768 | (404 | ) | 4,269 | 4,154 | |||||||||||
Gain on investment securities, net | 2,142 | 627 | 2,506 | 2,263 | ||||||||||||
Lease financing | 17,492 | 13,141 | 31,594 | 26,780 | ||||||||||||
Other non-interest income | 5,223 | 7,504 | 12,053 | 12,055 | ||||||||||||
Total non-interest income | 31,973 | 29,893 | 59,959 | 58,037 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Employee compensation and benefits | 65,537 | 60,388 | 132,573 | 120,059 | ||||||||||||
Occupancy and equipment | 18,985 | 19,251 | 37,817 | 37,860 | ||||||||||||
Amortization of FDIC indemnification asset | 44,250 | 45,663 | 84,597 | 90,126 | ||||||||||||
Deposit insurance expense | 4,623 | 5,588 | 9,435 | 11,063 | ||||||||||||
Professional fees | 2,657 | 4,785 | 5,532 | 9,825 | ||||||||||||
Telecommunications and data processing | 3,900 | 3,745 | 7,585 | 7,029 | ||||||||||||
Depreciation of equipment under operating lease | 9,476 | 8,733 | 18,792 | 16,750 | ||||||||||||
Other non-interest expense | 11,819 | 12,282 | 26,733 | 24,280 | ||||||||||||
Total non-interest expense | 161,247 | 160,435 | 323,064 | 316,992 | ||||||||||||
Income before income taxes | 116,994 | 95,428 | 227,825 | 185,508 | ||||||||||||
Provision for income taxes | 27,094 | 29,021 | 52,690 | 56,808 | ||||||||||||
Net income | $ | 89,900 | $ | 66,407 | $ | 175,135 | $ | 128,700 | ||||||||
Earnings per common share, basic | $ | 0.82 | $ | 0.60 | $ | 1.60 | $ | 1.18 | ||||||||
Earnings per common share, diluted | $ | 0.82 | $ | 0.60 | $ | 1.59 | $ | 1.17 | ||||||||
Cash dividends declared per common share | $ | 0.21 | $ | 0.21 | $ | 0.42 | $ | 0.42 | ||||||||
BANKUNITED, INC. AND SUBSIDIARIES | |||||||||||||||||||||
AVERAGE BALANCES AND YIELDS | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||
Average
Balance |
Interest (1) |
Yield/
Rate (1)(2) |
Average
Balance |
Interest (1) |
Yield/ Rate (1)(2) |
||||||||||||||||
Assets: | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Non-covered loans | $ | 21,117,897 | $ | 208,415 | 3.96% | $ | 19,063,873 | $ | 180,015 | 3.78% | |||||||||||
Covered loans | 475,568 | 84,200 | 70.82% | 562,049 | 76,588 | 54.51% | |||||||||||||||
Total loans | 21,593,465 | 292,615 | 5.43% | 19,625,922 | 256,603 | 5.24% | |||||||||||||||
Investment securities (3) | 6,902,634 | 57,444 | 3.33% | 6,445,336 | 49,205 | 3.05% | |||||||||||||||
Other interest earning assets | 484,087 | 4,499 | 3.73% | 555,755 | 3,372 | 2.43% | |||||||||||||||
Total interest earning assets | 28,980,186 | 354,558 | 4.90% | 26,627,013 | 309,180 | 4.65% | |||||||||||||||
Allowance for loan and lease losses | (140,223 | ) | (154,745 | ) | |||||||||||||||||
Non-interest earning assets | 1,912,471 | 1,754,208 | |||||||||||||||||||
Total assets | $ | 30,752,434 | $ | 28,226,476 | |||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing demand deposits | $ | 1,621,161 | 4,195 | 1.04% | $ | 1,537,017 | 2,814 | 0.73% | |||||||||||||
Savings and money market deposits | 10,553,624 | 33,317 | 1.27% | 9,438,586 | 18,356 | 0.78% | |||||||||||||||
Time deposits | 6,475,569 | 27,786 | 1.72% | 5,996,229 | 18,344 | 1.23% | |||||||||||||||
Total interest bearing deposits | 18,650,354 | 65,298 | 1.40% | 16,971,832 | 39,514 | 0.93% | |||||||||||||||
FHLB advances | 4,761,659 | 22,988 | 1.94% | 4,795,809 | 14,417 | 1.21% | |||||||||||||||
Notes and other borrowings | 402,805 | 5,306 | 5.27% | 402,818 | 5,315 | 5.28% | |||||||||||||||
Total interest bearing liabilities | 23,814,818 | 93,592 | 1.58% | 22,170,459 | 59,246 | 1.07% | |||||||||||||||
Non-interest bearing demand deposits | 3,315,851 | 3,025,018 | |||||||||||||||||||
Other non-interest bearing liabilities | 536,800 | 451,967 | |||||||||||||||||||
Total liabilities | 27,667,469 | 25,647,444 | |||||||||||||||||||
Stockholders' equity | 3,084,965 | 2,579,032 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 30,752,434 | $ | 28,226,476 | |||||||||||||||||
Net interest income | $ | 260,966 | $ | 249,934 | |||||||||||||||||
Interest rate spread | 3.32% | 3.58% | |||||||||||||||||||
Net interest margin | 3.60% | 3.76% | |||||||||||||||||||
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value except for securities held to maturity
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||||||
AVERAGE BALANCES AND YIELDS | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
Average Balance |
Interest (1) |
Yield/ Rate (1)(2) |
Average Balance |
Interest (1) |
Yield/ Rate (1)(2) |
|||||||||||||||
Assets: | ||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Non-covered loans | $ | 20,951,864 | $ | 405,293 | 3.89% | $ | 18,894,681 | $ | 347,998 | 3.70% | ||||||||||
Covered loans | 487,070 | 165,509 | 67.96% | 582,744 | 151,742 | 52.10% | ||||||||||||||
Total loans | 21,438,934 | 570,802 | 5.35% | 19,477,425 | 499,740 | 5.15% | ||||||||||||||
Investment securities (3) | 6,837,901 | 108,967 | 3.19% | 6,349,434 | 96,291 | 3.03% | ||||||||||||||
Other interest earning assets | 501,376 | 8,291 | 3.33% | 563,926 | 6,829 | 2.44% | ||||||||||||||
Total interest earning assets | 28,778,211 | 688,060 | 4.80% | 26,390,785 | 602,860 | 4.58% | ||||||||||||||
Allowance for loan and lease losses | (142,706 | ) | (155,380 | ) | ||||||||||||||||
Non-interest earning assets | 1,928,486 | 1,782,243 | ||||||||||||||||||
Total assets | $ | 30,563,991 | $ | 28,017,648 | ||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing demand deposits | $ | 1,610,643 | 8,352 | 1.05% | $ | 1,551,025 | 5,499 | 0.71% | ||||||||||||
Savings and money market deposits | 10,675,768 | 62,371 | 1.18% | 9,349,203 | 33,777 | 0.73% | ||||||||||||||
Time deposits | 6,395,299 | 50,936 | 1.61% | 5,835,121 | 34,966 | 1.21% | ||||||||||||||
Total interest bearing deposits | 18,681,710 | 121,659 | 1.31% | 16,735,349 | 74,242 | 0.89% | ||||||||||||||
FHLB advances | 4,611,359 | 41,285 | 1.81% | 4,871,917 | 27,316 | 1.13% | ||||||||||||||
Notes and other borrowings | 402,822 | 10,615 | 5.27% | 402,818 | 10,633 | 5.28% | ||||||||||||||
Total interest bearing liabilities | 23,695,891 | 173,559 | 1.48% | 22,010,084 | 112,191 | 1.03% | ||||||||||||||
Non-interest bearing demand deposits | 3,306,238 | 3,033,989 | ||||||||||||||||||
Other non-interest bearing liabilities | 487,313 | 430,567 | ||||||||||||||||||
Total liabilities | 27,489,442 | 25,474,640 | ||||||||||||||||||
Stockholders' equity | 3,074,549 | 2,543,008 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 30,563,991 | $ | 28,017,648 | ||||||||||||||||
Net interest income | $ | 514,501 | $ | 490,669 | ||||||||||||||||
Interest rate spread | 3.32% | 3.55% | ||||||||||||||||||
Net interest margin | 3.58% | 3.73% | ||||||||||||||||||
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value except for securities held to maturity
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
(In thousands except share and per share amounts) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
|
2018 | 2017 | 2018 | 2017 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 89,900 | $ | 66,407 | $ | 175,135 | $ | 128,700 | ||||||||
Distributed and undistributed earnings allocated to | ||||||||||||||||
participating securities | (3,463 |
) |
(2,483 | ) | (6,676 | ) | (4,805 | ) | ||||||||
Income allocated to common stockholders for basic | ||||||||||||||||
earnings per common share | $ | 86,437 | $ | 63,924 | $ | 168,459 | $ | 123,895 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 106,170,834 | 106,827,077 | 106,347,378 | 106,325,244 | ||||||||||||
Less average unvested stock awards | (1,222,436 | ) | (1,144,135 | ) | (1,165,750 | ) | (1,102,836 | ) | ||||||||
Weighted average shares for basic earnings per common | ||||||||||||||||
share | 104,948,398 | 105,682,942 | 105,181,628 | 105,222,408 | ||||||||||||
Basic earnings per common share | $ | 0.82 | $ | 0.60 | $ | 1.60 | $ | 1.18 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income allocated to common stockholders for basic earnings | ||||||||||||||||
per common share | $ | 86,437 | $ | 63,924 | $ | 168,459 | $ | 123,895 | ||||||||
Adjustment for earnings reallocated from participating | ||||||||||||||||
securities | 12 | 7 | 23 | 15 | ||||||||||||
Income used in calculating diluted earnings per common | ||||||||||||||||
share | $ | 86,449 | $ | 63,931 | $ | 168,482 | $ | 123,910 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares for basic earnings per common | ||||||||||||||||
share | 104,948,398 | 105,682,942 | 105,181,628 | 105,222,408 | ||||||||||||
Dilutive effect of stock options and executive share-based | ||||||||||||||||
awards | 522,997 | 455,135 | 519,598 | 537,491 | ||||||||||||
Weighted average shares for diluted earnings per common | ||||||||||||||||
share | 105,471,395 | 106,138,077 | 105,701,226 | 105,759,899 | ||||||||||||
Diluted earnings per common share | $ | 0.82 | $ | 0.60 | $ | 1.59 | $ | 1.17 | ||||||||
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||
SELECTED RATIOS | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
Financial ratios (5) | ||||||||
Return on average assets | 1.17% | 0.94% | 1.16% | 0.93% | ||||
Return on average stockholders’ equity | 11.69% | 10.33% | 11.49% | 10.21% | ||||
Net interest margin (4) | 3.60% | 3.76% | 3.58% | 3.73% | ||||
June 30, 2018 | December 31, 2017 | |||||||
Non- Covered |
Total |
Non- Covered |
Total | |||||
Asset quality ratios | ||||||||
Non-performing loans to total loans (1) (3) | 0.87% | 0.86% | 0.82% | 0.81% | ||||
Non-performing assets to total assets (2) | 0.62% | 0.65% | 0.60% | 0.61% | ||||
Allowance for loan and lease losses to total loans (3) | 0.63% | 0.62% | 0.69% | 0.68% | ||||
Allowance for loan and lease losses to non-performing loans (1) | 72.11% | 71.58% | 84.03% | 83.53% | ||||
Net charge-offs to average loans (5) | 0.21% | 0.21% | 0.38% | 0.38% | ||||
(1) We define non-performing loans to include non-accrual loans, and loans, other than ACI loans and government insured residential loans, that are past due 90 days or more and still accruing. Contractually delinquent ACI loans and government insured residential loans on which interest continues to be accreted or accrued are excluded from non-performing loans.
(2) Non-performing assets include non-performing loans, OREO and other repossessed assets.
(3) Total loans include premiums, discounts, and deferred fees and costs.
(4) On a tax-equivalent basis.
(5) Annualized for the three and six month periods.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180724005176/en/
Source:
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak,
786-313-1698
llunak@bankunited.com