For the quarter ended
For the six months ended
The annualized return on average stockholders’ equity for the six months ended
Quarterly Highlights
-
For the quarter ended
June 30, 2019 , non-interest bearing demand deposits grew by$335 million , to 17.1% of total deposits atJune 30, 2019 compared to 15.4% of total deposits atDecember 31, 2018 . Total deposits increased by$243 million for the quarter endedJune 30, 2019 . Non-interest bearing demand deposits grew by$478 million for the six months endedJune 30, 2019 while total deposits increased by$448 million . The cost of total deposits increased by 0.03% over the immediately preceding quarter endedMarch 31, 2019 , to 1.70%. -
Loans and leases, including equipment under operating lease, grew by
$231 million during the quarter; loan and lease growth was$420 million excluding the transfer of$189 million of Pinnacle Public Finance loans to loans held for sale atJune 30, 2019 . For the six months endedJune 30, 2019 , excluding the transfer of Pinnacle loans to held for sale, loans and leases grew by$809 million . -
Net interest income for the quarter ended
June 30, 2019 was flat to the immediately preceding quarter at$190.9 million and, as expected, decreased by$64.4 million from$255.3 million for the quarter endedJune 30, 2018 . The net interest margin, calculated on a tax-equivalent basis, was 2.52% for the quarter endedJune 30, 2019 compared to 2.54% for the immediately preceding quarter endedMarch 31, 2019 and 3.60% for the quarter endedJune 30, 2018 . The most significant reason for the declines in net interest income and the net interest margin for the quarter endedJune 30, 2019 compared to the quarter endedJune 30, 2018 was the decrease in accretion on formerly covered residential loans. -
During the quarter ended
June 30, 2019 , the Company repurchased approximately 3.0 million shares of its common stock for an aggregate purchase price of approximately$102 million . During the six months endedJune 30, 2019 , the Company repurchased approximately 4.1 million shares of its common stock for an aggregate purchase price of approximately$142 million , at a weighted average price of$34.44 per share. -
We are in the implementation phase of our
BankUnited 2.0 initiative and remain on target to deliver the projected benefits presented to investors last quarter. Non-interest expense for the quarter endedJune 30, 2019 included costs directly related toBankUnited 2.0 of$6.2 million . -
Book value per common share grew to
$30.09 atJune 30, 2019 from$29.49 atDecember 31, 2018 while tangible book value per common share increased to$29.27 from$28.71 over the same period.
(1) Non-loss share diluted earnings per share is a non-GAAP financial measure. See section entitled "Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measurements to their comparable GAAP financial measurements.
Loans and Leases
Loans, including premiums, discounts and deferred fees and costs, totaled
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|||||||||||||||
Residential and other consumer loans |
$ |
5,267,788 |
|
|
23.3 |
% |
|
$ |
5,045,687 |
|
|
22.6 |
% |
|
$ |
4,948,989 |
|
|
22.5 |
% |
Multi-family |
2,383,116 |
|
|
10.5 |
% |
|
2,536,588 |
|
|
11.3 |
% |
|
2,585,421 |
|
|
11.8 |
% |
|||
Non-owner occupied commercial real estate |
4,862,256 |
|
|
21.5 |
% |
|
4,731,127 |
|
|
21.2 |
% |
|
4,611,573 |
|
|
21.0 |
% |
|||
Construction and land |
220,536 |
|
|
1.0 |
% |
|
198,265 |
|
|
0.9 |
% |
|
210,516 |
|
|
1.0 |
% |
|||
Owner occupied commercial real estate |
1,966,004 |
|
|
8.7 |
% |
|
1,979,161 |
|
|
8.9 |
% |
|
2,007,603 |
|
|
9.1 |
% |
|||
Commercial and industrial |
4,531,948 |
|
|
20.1 |
% |
|
4,484,992 |
|
|
20.1 |
% |
|
4,312,213 |
|
|
19.6 |
% |
|||
National commercial lending platforms |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Pinnacle |
1,269,468 |
|
|
5.6 |
% |
|
1,450,316 |
|
|
6.4 |
% |
|
1,462,655 |
|
|
6.7 |
% |
|||
Bridge - franchise finance |
593,005 |
|
|
2.6 |
% |
|
546,489 |
|
|
2.4 |
% |
|
517,305 |
|
|
2.4 |
% |
|||
Bridge - equipment finance |
677,061 |
|
|
3.0 |
% |
|
640,910 |
|
|
2.9 |
% |
|
636,838 |
|
|
2.9 |
% |
|||
SBF |
256,274 |
|
|
1.1 |
% |
|
250,930 |
|
|
1.1 |
% |
|
252,221 |
|
|
1.1 |
% |
|||
Mortgage warehouse lending |
564,393 |
|
|
2.5 |
% |
|
494,352 |
|
|
2.2 |
% |
|
431,674 |
|
|
2.0 |
% |
|||
|
$ |
22,591,849 |
|
|
100.0 |
% |
|
$ |
22,358,817 |
|
|
100.0 |
% |
|
$ |
21,977,008 |
|
|
100.0 |
% |
Equipment under operating lease, net |
$ |
707,680 |
|
|
|
|
$ |
710,209 |
|
|
|
|
$ |
702,354 |
|
|
|
The residential portfolio grew by
Loans held for sale at
Asset Quality and Allowance for Loan and Lease Losses
For the quarters ended
Factors contributing to the recovery of loan losses for the quarter ended
Non-performing loans totaled
The ratios of the allowance for loan and lease losses to total loans and to non-performing loans were 0.50% and 81.17%, respectively, at
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, |
||||||||||||||||||||||
|
2019 |
|
2018 |
||||||||||||||||||||
|
Residential
|
|
Commercial |
|
Total |
|
Residential
|
|
Commercial |
|
Total |
||||||||||||
Beginning balance |
$ |
10,952 |
|
|
$ |
103,751 |
|
|
$ |
114,703 |
|
|
$ |
10,832 |
|
|
$ |
126,644 |
|
|
$ |
137,476 |
|
Provision (recovery) |
131 |
|
|
(2,878 |
) |
|
(2,747 |
) |
|
(280 |
) |
|
9,275 |
|
|
8,995 |
|
||||||
Charge-offs |
— |
|
|
(1,711 |
) |
|
(1,711 |
) |
|
(222 |
) |
|
(12,046 |
) |
|
(12,268 |
) |
||||||
Recoveries |
153 |
|
|
1,743 |
|
|
1,896 |
|
|
8 |
|
|
760 |
|
|
768 |
|
||||||
Ending balance |
$ |
11,236 |
|
|
$ |
100,905 |
|
|
$ |
112,141 |
|
|
$ |
10,338 |
|
|
$ |
124,633 |
|
|
$ |
134,971 |
|
|
Six Months Ended June 30, |
||||||||||||||||||||||
|
2019 |
|
2018 |
||||||||||||||||||||
|
Residential
|
|
Commercial |
|
Total |
|
Residential
|
|
Commercial |
|
Total |
||||||||||||
Beginning balance |
$ |
10,788 |
|
|
$ |
99,143 |
|
|
$ |
109,931 |
|
|
$ |
10,720 |
|
|
$ |
134,075 |
|
|
$ |
144,795 |
|
Provision |
281 |
|
|
7,253 |
|
|
7,534 |
|
|
94 |
|
|
12,048 |
|
|
12,142 |
|
||||||
Charge-offs |
— |
|
|
(7,844 |
) |
|
(7,844 |
) |
|
(504 |
) |
|
(22,396 |
) |
|
(22,900 |
) |
||||||
Recoveries |
167 |
|
|
2,353 |
|
|
2,520 |
|
|
28 |
|
|
906 |
|
|
934 |
|
||||||
Ending balance |
$ |
11,236 |
|
|
$ |
100,905 |
|
|
$ |
112,141 |
|
|
$ |
10,338 |
|
|
$ |
124,633 |
|
|
$ |
134,971 |
|
Charge-offs related to taxi medallion loans totaled
Deposits
At
Net interest income
Net interest income for the quarter ended
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased to 2.52% for the quarter ended
The most significant factor impacting the decrease in net interest margin for the quarter and six months ended
Other offsetting factors contributing to the decline in the net interest margin included:
-
The tax-equivalent yield on loans other than formerly covered residential loans increased to 4.26% and 4.25%, respectively, for the quarter and six months ended
June 30, 2019 , from 3.96% and 3.89%, respectively, for the quarter and six months endedJune 30, 2018 . The most significant factor contributing to this increased yield was the impact of increases in benchmark interest rates. -
The tax-equivalent yield on investment securities increased to 3.61% and 3.63%, respectively, for the quarter and six months ended
June 30, 2019 from 3.33% and 3.19%, respectively, for the quarter and six months endedJune 30, 2018 . -
The average rate on interest bearing liabilities increased to 2.17% and 2.13%, respectively, for the quarter and six months ended
June 30, 2019 , from 1.58% and 1.48%, respectively, for the quarter and six months endedJune 30, 2018 , reflecting higher average rates on both interest bearing deposits and FHLB advances. Increases in the cost of interest bearing liabilities primarily reflected increases in market interest rates. -
Average non-interest bearing demand deposits increased as a percentage of total deposits for the quarter and six months ended
June 30, 2019 compared to the quarter and six months endedJune 30, 2018 .
Non-interest income
Non-interest income totaled
The most significant factor contributing to the increase in non-interest income for the six months ended
Lease financing income decreased by
Non-interest expense
Non-interest expense totaled
Employee compensation and benefits declined by
Costs incurred directly related to the implementation of our
Provision for income taxes
The effective income tax rate was 25.2% and 25.9% for the quarter and six months ended
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at
The earnings release and slides with supplemental information relating to the 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
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
BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) |
|||||||
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Cash and due from banks: |
|
|
|
||||
Non-interest bearing |
$ |
10,152 |
|
|
$ |
9,392 |
|
Interest bearing |
432,681 |
|
|
372,681 |
|
||
Cash and cash equivalents |
442,833 |
|
|
382,073 |
|
||
Investment securities (including securities recorded at fair value of $8,128,708 and $8,156,878) |
8,138,708 |
|
|
8,166,878 |
|
||
Non-marketable equity securities |
289,789 |
|
|
267,052 |
|
||
Loans held for sale |
224,759 |
|
|
36,992 |
|
||
Loans (including covered loans of $201,376 at December 31, 2018) |
22,591,849 |
|
|
21,977,008 |
|
||
Allowance for loan and lease losses |
(112,141 |
) |
|
(109,931 |
) |
||
Loans, net |
22,479,708 |
|
|
21,867,077 |
|
||
Bank owned life insurance |
274,603 |
|
|
263,340 |
|
||
Equipment under operating lease, net |
707,680 |
|
|
702,354 |
|
||
Goodwill and other intangible assets |
77,696 |
|
|
77,718 |
|
||
Other assets |
456,489 |
|
|
400,842 |
|
||
Total assets |
$ |
33,092,265 |
|
|
$ |
32,164,326 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Liabilities: |
|
|
|
||||
Demand deposits: |
|
|
|
||||
Non-interest bearing |
$ |
4,099,636 |
|
|
$ |
3,621,254 |
|
Interest bearing |
1,831,441 |
|
|
1,771,465 |
|
||
Savings and money market |
10,910,607 |
|
|
11,261,746 |
|
||
Time |
7,080,716 |
|
|
6,819,758 |
|
||
Total deposits |
23,922,400 |
|
|
23,474,223 |
|
||
Federal funds purchased |
99,000 |
|
|
175,000 |
|
||
Federal Home Loan Bank advances |
5,331,000 |
|
|
4,796,000 |
|
||
Notes and other borrowings |
403,661 |
|
|
402,749 |
|
||
Other liabilities |
468,294 |
|
|
392,521 |
|
||
Total liabilities |
30,224,355 |
|
|
29,240,493 |
|
||
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 95,315,633 and 99,141,374 shares issued and outstanding |
953 |
|
|
991 |
|
||
Paid-in capital |
1,080,966 |
|
|
1,220,147 |
|
||
Retained earnings |
1,803,360 |
|
|
1,697,822 |
|
||
Accumulated other comprehensive income (loss) |
(17,369 |
) |
|
4,873 |
|
||
Total stockholders' equity |
2,867,910 |
|
|
2,923,833 |
|
||
Total liabilities and stockholders' equity |
$ |
33,092,265 |
|
|
$ |
32,164,326 |
|
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, |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Interest income: |
|
|
|
|
|
|
|
||||||||
Loans |
$ |
249,364 |
|
|
$ |
288,264 |
|
|
$ |
489,996 |
|
|
$ |
562,264 |
|
Investment securities |
72,796 |
|
|
56,092 |
|
|
149,141 |
|
|
106,077 |
|
||||
Other |
5,069 |
|
|
4,499 |
|
|
9,921 |
|
|
8,290 |
|
||||
Total interest income |
327,229 |
|
|
348,855 |
|
|
649,058 |
|
|
676,631 |
|
||||
Interest expense: |
|
|
|
|
|
|
|
||||||||
Deposits |
99,987 |
|
|
65,298 |
|
|
197,408 |
|
|
121,659 |
|
||||
Borrowings |
36,359 |
|
|
28,294 |
|
|
69,866 |
|
|
51,900 |
|
||||
Total interest expense |
136,346 |
|
|
93,592 |
|
|
267,274 |
|
|
173,559 |
|
||||
Net interest income before provision for loan losses |
190,883 |
|
|
255,263 |
|
|
381,784 |
|
|
503,072 |
|
||||
Provision for (recovery of) loan losses (including $294 and $567 for covered loans for the three and six months ended June 30, 2018) |
(2,747 |
) |
|
8,995 |
|
|
7,534 |
|
|
12,142 |
|
||||
Net interest income after provision for loan losses |
193,630 |
|
|
246,268 |
|
|
374,250 |
|
|
490,930 |
|
||||
Non-interest income: |
|
|
|
|
|
|
|
||||||||
Income from resolution of covered assets, net |
— |
|
|
4,238 |
|
|
— |
|
|
7,555 |
|
||||
Net loss on FDIC indemnification |
— |
|
|
(1,400 |
) |
|
— |
|
|
(5,015 |
) |
||||
Deposit service charges and fees |
4,290 |
|
|
3,510 |
|
|
8,120 |
|
|
6,997 |
|
||||
Gain (loss) on sale of loans, net (including $(2,002) and $(298) related to covered loans for the three and six months ended June 30, 2018) |
2,121 |
|
|
768 |
|
|
5,057 |
|
|
4,269 |
|
||||
Gain on investment securities, net |
4,116 |
|
|
2,142 |
|
|
9,901 |
|
|
2,506 |
|
||||
Lease financing |
17,005 |
|
|
17,492 |
|
|
34,191 |
|
|
31,594 |
|
||||
Other non-interest income |
7,805 |
|
|
5,223 |
|
|
14,323 |
|
|
12,053 |
|
||||
Total non-interest income |
35,337 |
|
|
31,973 |
|
|
71,592 |
|
|
59,959 |
|
||||
Non-interest expense: |
|
|
|
|
|
|
|
||||||||
Employee compensation and benefits |
57,251 |
|
|
65,537 |
|
|
122,484 |
|
|
132,573 |
|
||||
Occupancy and equipment |
13,991 |
|
|
14,241 |
|
|
27,157 |
|
|
28,544 |
|
||||
Amortization of FDIC indemnification asset |
— |
|
|
44,250 |
|
|
— |
|
|
84,597 |
|
||||
Deposit insurance expense |
5,027 |
|
|
4,623 |
|
|
9,068 |
|
|
9,435 |
|
||||
Professional fees |
6,937 |
|
|
2,657 |
|
|
14,808 |
|
|
5,532 |
|
||||
Technology and telecommunications |
12,013 |
|
|
8,644 |
|
|
23,181 |
|
|
16,858 |
|
||||
Depreciation of equipment under operating lease |
11,489 |
|
|
9,476 |
|
|
23,301 |
|
|
18,792 |
|
||||
Other non-interest expense |
13,377 |
|
|
11,819 |
|
|
26,776 |
|
|
26,733 |
|
||||
Total non-interest expense |
120,085 |
|
|
161,247 |
|
|
246,775 |
|
|
323,064 |
|
||||
Income before income taxes |
108,882 |
|
|
116,994 |
|
|
199,067 |
|
|
227,825 |
|
||||
Provision for income taxes |
27,431 |
|
|
27,094 |
|
|
51,644 |
|
|
52,690 |
|
||||
Net income |
$ |
81,451 |
|
|
$ |
89,900 |
|
|
$ |
147,423 |
|
|
$ |
175,135 |
|
Earnings per common share, basic |
$ |
0.81 |
|
|
$ |
0.82 |
|
|
$ |
1.46 |
|
|
$ |
1.60 |
|
Earnings per common share, diluted |
$ |
0.81 |
|
|
$ |
0.82 |
|
|
$ |
1.45 |
|
|
$ |
1.59 |
|
BANKUNITED, INC. AND SUBSIDIARIES AVERAGE BALANCES AND YIELDS (Dollars in thousands) |
||||||||||||||||||||||
|
|
Three Months Ended June 30, |
||||||||||||||||||||
|
|
2019 |
|
2018 |
||||||||||||||||||
|
|
Average
|
|
Interest (1)(2) |
|
Yield/
|
|
Average
|
|
Interest (1)(2) |
|
Yield/
|
||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-covered loans |
|
$ |
22,505,138 |
|
|
$ |
253,766 |
|
|
4.52 |
% |
|
$ |
21,117,897 |
|
|
$ |
208,415 |
|
|
3.96 |
% |
Covered loans |
|
— |
|
|
— |
|
|
— |
% |
|
475,568 |
|
|
84,200 |
|
|
70.82 |
% |
||||
Total loans |
|
22,505,138 |
|
|
253,766 |
|
|
4.52 |
% |
|
21,593,465 |
|
|
292,615 |
|
|
5.43 |
% |
||||
Investment securities (3) |
|
8,187,518 |
|
|
73,867 |
|
|
3.61 |
% |
|
6,902,634 |
|
|
57,444 |
|
|
3.33 |
% |
||||
Other interest earning assets |
|
525,563 |
|
|
5,069 |
|
|
3.87 |
% |
|
484,087 |
|
|
4,499 |
|
|
3.73 |
% |
||||
|
|
31,218,219 |
|
|
332,702 |
|
|
4.27 |
% |
|
28,980,186 |
|
|
354,558 |
|
|
4.90 |
% |
||||
Allowance for loan and lease losses |
|
(117,206 |
) |
|
|
|
|
|
(140,223 |
) |
|
|
|
|
||||||||
Non-interest earning assets |
|
1,589,286 |
|
|
|
|
|
|
1,912,471 |
|
|
|
|
|
||||||||
Total assets |
|
$ |
32,690,299 |
|
|
|
|
|
|
$ |
30,752,434 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing demand deposits |
|
$ |
1,773,912 |
|
|
6,225 |
|
|
1.41 |
% |
|
$ |
1,621,161 |
|
|
4,195 |
|
|
1.04 |
% |
||
Savings and money market deposits |
|
10,924,580 |
|
|
52,191 |
|
|
1.92 |
% |
|
10,553,624 |
|
|
33,317 |
|
|
1.27 |
% |
||||
Time deposits |
|
6,944,862 |
|
|
41,571 |
|
|
2.40 |
% |
|
6,475,569 |
|
|
27,786 |
|
|
1.72 |
% |
||||
|
|
19,643,354 |
|
|
99,987 |
|
|
2.04 |
% |
|
18,650,354 |
|
|
65,298 |
|
|
1.40 |
% |
||||
Federal funds purchased |
|
127,242 |
|
|
771 |
|
|
2.42 |
% |
|
— |
|
|
— |
|
|
— |
% |
||||
FHLB advances |
|
5,028,418 |
|
|
30,263 |
|
|
2.41 |
% |
|
4,761,659 |
|
|
22,988 |
|
|
1.94 |
% |
||||
Notes and other borrowings |
|
405,726 |
|
|
5,325 |
|
|
5.25 |
% |
|
402,805 |
|
|
5,306 |
|
|
5.27 |
% |
||||
Total interest bearing liabilities |
|
25,204,740 |
|
|
136,346 |
|
|
2.17 |
% |
|
23,814,818 |
|
|
93,592 |
|
|
1.58 |
% |
||||
Non-interest bearing demand deposits |
|
3,932,716 |
|
|
|
|
|
|
3,315,851 |
|
|
|
|
|
||||||||
Other non-interest bearing liabilities |
|
601,703 |
|
|
|
|
|
|
536,800 |
|
|
|
|
|
||||||||
|
|
29,739,159 |
|
|
|
|
|
|
27,667,469 |
|
|
|
|
|
||||||||
Stockholders' equity |
|
2,951,140 |
|
|
|
|
|
|
3,084,965 |
|
|
|
|
|
||||||||
|
|
$ |
32,690,299 |
|
|
|
|
|
|
$ |
30,752,434 |
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
196,356 |
|
|
|
|
|
|
$ |
260,966 |
|
|
|
||||||
Interest rate spread |
|
|
|
|
|
2.10 |
% |
|
|
|
|
|
3.32 |
% |
||||||||
Net interest margin |
|
|
|
|
|
2.52 |
% |
|
|
|
|
|
3.60 |
% |
(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, |
||||||||||||||||||||
|
|
2019 |
|
2018 |
||||||||||||||||||
|
|
Average
|
|
Interest (1)(2) |
|
Yield/
|
|
Average
|
|
Interest (1)(2) |
|
Yield/
|
||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-covered loans |
|
$ |
22,241,262 |
|
|
$ |
498,776 |
|
|
4.51 |
% |
|
$ |
20,951,864 |
|
|
$ |
405,293 |
|
|
3.89 |
% |
Covered loans |
|
— |
|
|
— |
|
|
— |
% |
|
487,070 |
|
|
165,509 |
|
|
67.96 |
% |
||||
Total loans |
|
22,241,262 |
|
|
498,776 |
|
|
4.51 |
% |
|
21,438,934 |
|
|
570,802 |
|
|
5.35 |
% |
||||
Investment securities (3) |
|
8,353,116 |
|
|
151,474 |
|
|
3.63 |
% |
|
6,837,901 |
|
|
108,967 |
|
|
3.19 |
% |
||||
Other interest earning assets |
|
510,933 |
|
|
9,921 |
|
|
3.91 |
% |
|
501,376 |
|
|
8,291 |
|
|
3.33 |
% |
||||
Total interest earning assets |
|
31,105,311 |
|
|
660,171 |
|
|
4.26 |
% |
|
28,778,211 |
|
|
688,060 |
|
|
4.80 |
% |
||||
Allowance for loan and lease losses |
|
(114,157 |
) |
|
|
|
|
|
(142,706 |
) |
|
|
|
|
||||||||
Non-interest earning assets |
|
1,596,565 |
|
|
|
|
|
|
1,928,486 |
|
|
|
|
|
||||||||
Total assets |
|
$ |
32,587,719 |
|
|
|
|
|
|
$ |
30,563,991 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing demand deposits |
|
$ |
1,738,393 |
|
|
11,864 |
|
|
1.38 |
% |
|
$ |
1,610,643 |
|
|
8,352 |
|
|
1.05 |
% |
||
Savings and money market deposits |
|
11,187,818 |
|
|
105,008 |
|
|
1.89 |
% |
|
10,675,768 |
|
|
62,371 |
|
|
1.18 |
% |
||||
Time deposits |
|
6,926,041 |
|
|
80,536 |
|
|
2.34 |
% |
|
6,395,299 |
|
|
50,936 |
|
|
1.61 |
% |
||||
Total interest bearing deposits |
|
19,852,252 |
|
|
197,408 |
|
|
2.01 |
% |
|
18,681,710 |
|
|
121,659 |
|
|
1.31 |
% |
||||
Federal funds purchased |
|
132,282 |
|
|
1,596 |
|
|
2.41 |
% |
|
— |
|
|
— |
|
|
— |
% |
||||
FHLB advances |
|
4,845,337 |
|
|
57,637 |
|
|
2.40 |
% |
|
4,611,359 |
|
|
41,285 |
|
|
1.81 |
% |
||||
Notes and other borrowings |
|
405,547 |
|
|
10,633 |
|
|
5.24 |
% |
|
402,822 |
|
|
10,615 |
|
|
5.27 |
% |
||||
Total interest bearing liabilities |
|
25,235,418 |
|
|
267,274 |
|
|
2.13 |
% |
|
23,695,891 |
|
|
173,559 |
|
|
1.48 |
% |
||||
Non-interest bearing demand deposits |
|
3,769,828 |
|
|
|
|
|
|
3,306,238 |
|
|
|
|
|
||||||||
Other non-interest bearing liabilities |
|
629,123 |
|
|
|
|
|
|
487,313 |
|
|
|
|
|
||||||||
Total liabilities |
|
29,634,369 |
|
|
|
|
|
|
27,489,442 |
|
|
|
|
|
||||||||
Stockholders' equity |
|
2,953,350 |
|
|
|
|
|
|
3,074,549 |
|
|
|
|
|
||||||||
Total liabilities and stockholders' equity |
|
$ |
32,587,719 |
|
|
|
|
|
|
$ |
30,563,991 |
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
392,897 |
|
|
|
|
|
|
$ |
514,501 |
|
|
|
||||||
Interest rate spread |
|
|
|
|
|
2.13 |
% |
|
|
|
|
|
3.32 |
% |
||||||||
Net interest margin |
|
|
|
|
|
2.53 |
% |
|
|
|
|
|
3.58 |
% |
(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, |
||||||||||||
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
81,451 |
|
|
$ |
89,900 |
|
|
$ |
147,423 |
|
|
$ |
175,135 |
|
Distributed and undistributed earnings allocated to participating securities |
(3,382 |
) |
|
(3,463 |
) |
|
(6,074 |
) |
|
(6,676 |
) |
||||
Income allocated to common stockholders for basic earnings per common share |
$ |
78,069 |
|
|
$ |
86,437 |
|
|
$ |
141,349 |
|
|
$ |
168,459 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
97,451,019 |
|
|
106,170,834 |
|
|
98,150,014 |
|
|
106,347,378 |
|
||||
Less average unvested stock awards |
(1,174,339 |
) |
|
(1,222,436 |
) |
|
(1,173,137 |
) |
|
(1,165,750 |
) |
||||
Weighted average shares for basic earnings per common share |
96,276,680 |
|
|
104,948,398 |
|
|
96,976,877 |
|
|
105,181,628 |
|
||||
Basic earnings per common share |
$ |
0.81 |
|
|
$ |
0.82 |
|
|
$ |
1.46 |
|
|
$ |
1.60 |
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Income allocated to common stockholders for basic earnings per common share |
$ |
78,069 |
|
|
$ |
86,437 |
|
|
$ |
141,349 |
|
|
$ |
168,459 |
|
Adjustment for earnings reallocated from participating securities |
9 |
|
|
12 |
|
|
13 |
|
|
23 |
|
||||
Income used in calculating diluted earnings per common share |
$ |
78,078 |
|
|
$ |
86,449 |
|
|
$ |
141,362 |
|
|
$ |
168,482 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic earnings per common share |
96,276,680 |
|
|
104,948,398 |
|
|
96,976,877 |
|
|
105,181,628 |
|
||||
Dilutive effect of stock options and certain share-based awards |
345,899 |
|
|
522,997 |
|
|
312,821 |
|
|
519,598 |
|
||||
Weighted average shares for diluted earnings per common share |
96,622,579 |
|
|
105,471,395 |
|
|
97,289,698 |
|
|
105,701,226 |
|
||||
Diluted earnings per common share |
$ |
0.81 |
|
|
$ |
0.82 |
|
|
$ |
1.45 |
|
|
$ |
1.59 |
|
BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
Financial ratios (5) |
|
|
|
|
|
|
|
||||
Return on average assets |
1.00 |
% |
|
1.17 |
% |
|
0.91 |
% |
|
1.16 |
% |
Return on average stockholders’ equity |
11.1 |
% |
|
11.7 |
% |
|
10.1 |
% |
|
11.5 |
% |
Net interest margin (4) |
2.52 |
% |
|
3.60 |
% |
|
2.53 |
% |
|
3.58 |
% |
|
June 30, 2019 |
|
December 31, 2018 |
||
Asset quality ratios |
|
|
|
||
Non-performing loans to total loans (1) (3) (6) |
0.61 |
% |
|
0.59 |
% |
Non-performing assets to total assets (2) (6) |
0.45 |
% |
|
0.43 |
% |
Allowance for loan and lease losses to total loans (3) |
0.50 |
% |
|
0.50 |
% |
Allowance for loan and lease losses to non-performing loans (1) (6) |
81.17 |
% |
|
84.63 |
% |
Net charge-offs to average loans (5) |
0.05 |
% |
|
0.28 |
% |
|
BankUnited, Inc. |
|
BankUnited, N.A. |
||
Capital ratios |
|
|
|
||
Tier 1 leverage |
8.6 |
% |
|
9.3 |
% |
Common Equity Tier 1 ("CET1") risk-based capital |
12.0 |
% |
|
12.9 |
% |
Total risk-based capital |
12.4 |
% |
|
13.4 |
% |
(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 month and six month periods.
(6) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling
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
Total stockholders’ equity |
$ |
2,867,910 |
|
Less: goodwill and other intangible assets |
77,696 |
|
|
Tangible stockholders’ equity |
$ |
2,790,214 |
|
|
|
||
Common shares issued and outstanding |
95,315,633 |
|
|
|
|
||
Book value per common share |
$ |
30.09 |
|
|
|
||
Tangible book value per common share |
$ |
29.27 |
|
Non-loss share diluted earnings per share is a non-GAAP financial measure. Management believes disclosure of this measure provides readers with information that may be useful in understanding the impact of the covered loans and
|
Three Months Ended
|
||
Net Income (GAAP) |
$ |
89.9 |
|
Less Loss Share Contribution |
(25.0 |
) |
|
Net Income as reported, minus Loss Share Contribution |
$ |
64.9 |
|
Diluted earnings per common share, excluding Loss Share Contribution: |
|
||
Diluted earnings per common share (GAAP) |
$ |
0.82 |
|
Less: Net impact on diluted earnings per common share of Loss Share Contribution (non-GAAP) |
(0.23 |
) |
|
Non-loss share diluted earnings per common share (non-GAAP) |
$ |
0.59 |
|
Non-loss share diluted earnings per share: |
|
||
Loss Share Contribution |
$ |
25.0 |
|
Weighted average shares for diluted earnings per common share (GAAP) |
105,471 |
|
|
Impact on diluted earnings per common share of Loss Share Contribution (non-GAAP) |
0.24 |
|
|
Impact on diluted earnings per common share of Loss Share Contribution: |
|
||
Loss Share Contribution, net of tax, allocated to participating securities |
(1.0 |
) |
|
Weighted average shares for diluted earnings per common share (GAAP) |
105,471 |
|
|
Impact on diluted earnings per common share of Loss Share Contribution allocated to participating securities (non-GAAP) |
(0.01 |
) |
|
Net impact on diluted earnings per common share of Loss Share Contribution (non-GAAP) |
$ |
0.23 |
|
Supplemental Calculations
Calculation of Loss Share Contribution and Non-Loss Share Earnings Per Share
Non-Loss Share Earnings are calculated by removing the total Loss Share Contribution from Net Income. The Loss Share Contribution is a hypothetical presentation of the impact of the covered loans and
|
Three Months Ended
|
||
Net Income As Reported |
$ |
89.9 |
|
Calculation of Loss Share Contribution: |
|
||
Interest Income - Covered Loans (Accretion) |
$ |
84.2 |
|
Amortization of FDIC Indemnification Asset |
(44.3 |
) |
|
Loss Share Earnings |
40.0 |
|
|
Hypothetical interest income on alternate assets (1) |
(5.9 |
) |
|
Loss Share Contribution, pre-tax |
34.1 |
|
|
Income taxes (2) |
(9.0 |
) |
|
Loss Share Contribution, after tax |
$ |
25.0 |
|
|
|
||
Net Income as reported, minus Loss Share Contribution |
$ |
64.9 |
|
|
|
||
Diluted Earnings Per Common Share, as Reported |
$ |
0.82 |
|
Earnings Per Share, Loss Share Contribution |
0.23 |
|
|
Non-Loss Share Diluted Earnings Per Share |
$ |
0.59 |
|
(1) See section entitled "Supplemental Calculations - Calculation of Hypothetical Interest Income on Alternate Assets" below for calculation of these amounts and underlying assumptions.
(2) An assumed marginal tax rate of 26.5% was applied.
(3) Calculation variances of
Calculation of Hypothetical Interest Income on Alternate Assets
The hypothetical interest income calculated below reflects the estimated income that may have been earned if the average balance of covered loans and the
|
Three Months Ended
|
||
Average Balances (1) |
|
||
Average Covered Loans |
$ |
476 |
|
Average FDIC Indemnification Asset |
231 |
|
|
Average Loss Share Asset |
$ |
707 |
|
|
|
||
Yield |
|
||
Yield on securities - reported (2) |
3.33 |
% |
|
Hypothetical interest income on alternate assets |
$ |
5.9 |
|
(1) Calculated as the simple average of beginning and ending balances reported for each period.
(2) The weighted average yield on the Company’s investment securities as reported for the applicable quarter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190724005150/en/
Source:
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
llunak@bankunited.com