The corrected release reads:
BANKUNITED, INC. REPORTS THIRD QUARTER 2017 RESULTS
For the quarter ended September 30, 2017, the Company reported net
income of
Quarterly Highlights
-
Net interest income increased by
$19.5 million to $241.3 million for the quarter ended September 30, 2017 from$221.7 million for the quarter ended September 30, 2016. Interest income increased by$39.5 million , driven by increases in the average balances of loans and investment securities outstanding and an increase in the yield on interest earning assets. Interest expense increased by$19.9 million , driven by increases in average interest bearing liabilities and the cost of those liabilities. For the nine months endedSeptember 30, 2017 , net interest income increased by$68.6 million to $711.4 million from$642.9 million for the nine months endedSeptember 30, 2016 . -
The net interest margin, calculated on a tax-equivalent basis,
decreased to 3.62% for the quarter ended September 30, 2017 from 3.69%
for the quarter ended September 30, 2016 and 3.76% for the immediately
preceding quarter ended
June 30, 2017 . Significant factors contributing to the decline in the net interest margin included the continued run-off of high-yielding covered loans and an increase in the cost of interest bearing liabilities. The net interest margin, calculated on a tax-equivalent basis, was 3.69% for the nine months endedSeptember 30, 2017 compared to 3.75% for the nine months endedSeptember 30, 2016 . -
The provision for loan losses for the quarter ended
September 30, 2017 totaled$37.9 million and included a provision of$32.7 million related to the taxi medallion portfolio. Increases in the provision for loan losses for the quarter and nine months endedSeptember 30, 2017 over the corresponding periods in the prior year were driven primarily by provisions related to the taxi medallion portfolio. -
Gain on sale of investment securities available for sale, net totaled
$26.9 million for the quarter ended September 30, 2017. Substantially all of these gains resulted from the sale of securities formerly covered under the Commercial Shared-Loss Agreement and originally acquired at significant discounts in the FSB Acquisition. -
Total interest earning assets increased by
$613 million during the third quarter of 2017. Non-covered loans and leases, including equipment under operating lease, grew by$384 million during the quarter. Our loan production activities for the quarter endedSeptember 30, 2017 were impacted by Hurricane Irma. For the nine months endedSeptember 30, 2017 , total interest earning assets increased by$1.9 billion and non-covered loans and leases grew by$1.3 billion . -
Total deposits increased by
$445 million for the quarter ended September 30, 2017 to$21.2 billion . For the nine months endedSeptember 30, 2017 , total deposits increased by$1.7 billion . -
Book value per common share grew to
$24.56 at September 30, 2017, a 7.8% increase from September 30, 2016. Tangible book value per common share increased by 8.1% over the same period, to$23.83 at September 30, 2017. -
The Company, its
Florida market and many of its customers were impacted by Hurricane Irma and, to a lesser extent Hurricane Harvey, during the quarter endedSeptember 30, 2017 . Our analysis of the ultimate impact of the hurricanes on the level of loans losses is ongoing, but we do not expect the ultimate impact of these storms on our operations or financial condition to be material.
Impact of Hurricanes Irma and Harvey
On
The allowance for loan and lease losses as of September 30, 2017,
included
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 | 8.6% | 9.3% | ||
Common Equity Tier 1 ("CET1") risk-based capital | 11.9% | 13.0% | ||
Tier 1 risk-based capital | 11.9% | 13.0% | ||
Total risk-based capital | 12.7% | 13.8% |
Loans and Leases
Loans, including premiums, discounts and deferred fees and costs,
increased to
For the quarter ended September 30, 2017, 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 portfolio composition at the dates indicated follows:
Non-Covered Loans | Total Loans | |||||||
September 30, | December 31, | September 30, | December 31, | |||||
2017 | 2016 | 2017 | 2016 | |||||
Residential and other consumer loans | 19.9% | 18.4% | 22.0% | 21.0% | ||||
Multi-family | 16.8% | 20.4% | 16.3% | 19.8% | ||||
Non-owner occupied commercial real estate | 20.9% | 19.9% | 20.4% | 19.3% | ||||
Construction and land | 1.3% | 1.7% | 1.3% | 1.6% | ||||
Owner occupied commercial real estate | 9.8% | 9.3% | 9.5% | 9.0% | ||||
Commercial and industrial | 19.5% | 18.1% | 19.0% | 17.5% | ||||
Commercial lending subsidiaries | 11.8% | 12.2% | 11.5% | 11.8% | ||||
100.0% | 100.0% | 100.0% | 100.0% |
Asset Quality and Allowance for Loan and Lease Losses
For the quarters ended September 30, 2017 and 2016, the Company recorded
provisions for loan losses of
The most significant factor contributing to the increase in the
provision for loan losses related to non-covered loans for the quarter
and nine 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
0.77% and 76.69%, respectively, at September 30, 2017, compared to 0.80%
and 113.68% at December 31, 2016. 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 charge-offs related to taxi
medallion loans in 2017. The annualized ratio of net charge-offs to
average non-covered loans was 0.40% for the nine months ended
The following tables summarize the activity in the allowance for loan and lease losses for the periods indicated (in thousands):
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||||||
Non- | Non- | |||||||||||||||||||||||||||||||
ACI | Non-ACI | Covered | ACI | Non-ACI | Covered | |||||||||||||||||||||||||||
Loans | Loans | Loans | Total | Loans | Loans | Loans | Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | 1,812 | $ | 2,737 | $ | 151,099 | $ | 155,648 | $ | — | $ | 3,453 | $ | 132,265 | $ | 135,718 | ||||||||||||||||
Provision (recovery) | — | 261 | 37,593 | 37,854 | — | (445 | ) | 24,853 | 24,408 | |||||||||||||||||||||||
Charge-offs | — | — | (36,028 | ) | (36,028 | ) | — | (247 | ) | (6,615 | ) | (6,862 | ) | |||||||||||||||||||
Recoveries | — | 38 | 1,061 | 1,099 | — | 24 | 1,188 | 1,212 | ||||||||||||||||||||||||
Balance at end of period | $ | 1,812 | $ | 3,036 | $ | 153,725 | $ | 158,573 | $ | — | $ | 2,785 | $ | 151,691 | $ | 154,476 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||||||
Non- | Non- | |||||||||||||||||||||||||||||||
ACI | ACI | Non-Covered | ACI | Non-ACI | Covered | |||||||||||||||||||||||||||
Loans | Loans | Loans | Total | Loans | Loans | Loans | Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 2,100 | $ | 150,853 | $ | 152,953 | $ | — | $ | 4,868 | $ | 120,960 | $ | 125,828 | ||||||||||||||||
Provision (recovery) | 1,812 | 881 | 60,880 | 63,573 | — | (1,119 | ) | 43,568 | 42,449 | |||||||||||||||||||||||
Charge-offs | — | (55 | ) | (61,034 | ) | (61,089 | ) | — | (1,086 | ) | (15,748 | ) | (16,834 | ) | ||||||||||||||||||
Recoveries | — | 110 | 3,026 | 3,136 | — | 122 | 2,911 | 3,033 | ||||||||||||||||||||||||
Balance at end of period | $ | 1,812 | $ | 3,036 | $ | 153,725 | $ | 158,573 | $ | — | $ | 2,785 | $ | 151,691 | $ | 154,476 |
Charge-offs related to taxi medallion loans totaled
Deposits
At September 30, 2017, deposits totaled
Net interest income
Net interest income for the quarter ended September 30, 2017 increased
to
The Company’s net interest margin, calculated on a tax-equivalent basis,
was 3.62% for the quarter ended September 30, 2017 compared to 3.76% for
the immediately preceding quarter ended
Significant offsetting factors impacting the declines in net interest
margin for the quarter and nine months ended
- Non-covered loans, originated at yields lower than those on covered loans, continued to increase as a percentage of total loans.
-
The tax-equivalent yield on loans increased to 5.15% for both the
quarter and nine months ended
September 30, 2017 from 5.03% and 5.14% for the quarter and nine months endedSeptember 30, 2016 , reflecting increased yields on both non-covered and covered loans. -
The tax-equivalent yield on non-covered loans was 3.79% and 3.73%,
respectively, for the quarter and nine months ended
September 30, 2017 , compared to 3.56% and 3.58% for the quarter and nine months endedSeptember 30, 2016 . The most significant factor contributing to increased yields on non-covered loans was the impact of increases in market interest rates. -
The tax-equivalent yield on covered loans increased to 56.70% and
53.54%, respectively, for the quarter and nine months ended
September 30, 2017 from 42.50% and 40.48% for the quarter and nine months endedSeptember 30, 2016 . -
The tax-equivalent yield on investment securities increased to 3.14%
and 3.07%, respectively, for the quarter and nine months ended
September 30, 2017 from 2.87% and 2.82% for the quarter and nine months endedSeptember 30, 2016 . -
The average rate on interest bearing liabilities increased to 1.17%
and 1.08%, respectively, for the quarter and nine months ended
September 30, 2017 from 0.92% and 0.93% for the quarter and nine months endedSeptember 30, 2016 , 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 rates.
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.
Changes in accretable yield on ACI loans for the nine months ended
Balance at December 31, 2015 | $ | 902,565 | ||
Reclassifications from non-accretable difference | 76,751 | |||
Accretion | (303,931 | ) | ||
Balance at December 31, 2016 | 675,385 | |||
Reclassifications from non-accretable difference | 72,827 | |||
Accretion | (226,251 | ) | ||
Balance at September 30, 2017 | $ | 521,961 |
Non-interest income
Non-interest income totaled
Increases in gain on sale of investment securities primarily reflected gains recognized in the quarter ended September 30, 2017 from the sale of certain securities formerly covered under the Commercial Shared-Loss Agreement and originally acquired at significant discounts in the FSB Acquisition. Increases in lease financing income generally corresponded to growth in the operating lease portfolio.
Due to the impact of Hurricane Irma, the Company did not execute a sale
of covered loans during the quarter ended
Non-interest expense
Non-interest expense totaled
Amortization of the
Provision for income taxes
The effective income tax rate was 32.2% and 31.2%, respectively, for the
quarter and nine 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 comparability 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 September 30, 2017 (in thousands except share and per share data):
Total stockholders’ equity | $ | 2,623,489 | |
Less: goodwill and other intangible assets | 77,857 | ||
Tangible stockholders’ equity | $ | 2,545,632 | |
Common shares issued and outstanding | 106,821,902 | ||
Book value per common share | $ | 24.56 | |
Tangible book value per common share | $ | 23.83 |
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m.
ET on Tuesday, October 31, 2017 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 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, 2016 and in the Company's subsequent filings
with the
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED | ||||||||
(In thousands, except share and per share data) | ||||||||
September 30, | December 31, | |||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Non-interest bearing | $ | 34,883 | $ | 40,260 | ||||
Interest bearing | 3,714 | 35,413 | ||||||
Interest bearing deposits at Federal Reserve Bank | 254,004 | 372,640 | ||||||
Cash and cash equivalents | 292,601 | 448,313 | ||||||
Investment securities available for sale, at fair value | 6,893,472 | 6,073,584 | ||||||
Investment securities held to maturity | 10,000 | 10,000 | ||||||
Non-marketable equity securities | 270,239 | 284,272 | ||||||
Loans held for sale | 31,507 | 41,198 | ||||||
Loans (including covered loans of $537,976 and $614,042) | 20,610,430 | 19,395,394 | ||||||
Allowance for loan and lease losses | (158,573 | ) | (152,953 | ) | ||||
Loans, net | 20,451,857 | 19,242,441 | ||||||
FDIC indemnification asset | 349,617 | 515,933 | ||||||
Bank owned life insurance | 248,876 | 239,736 | ||||||
Equipment under operating lease, net | 588,207 | 539,914 | ||||||
Deferred tax asset, net | 23,910 | 62,940 | ||||||
Goodwill and other intangible assets | 77,857 | 78,047 | ||||||
Other assets | 316,688 | 343,773 | ||||||
Total assets | $ | 29,554,831 | $ | 27,880,151 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits: | ||||||||
Non-interest bearing | $ | 3,096,492 | $ | 2,960,591 | ||||
Interest bearing | 1,828,809 | 1,523,064 | ||||||
Savings and money market | 9,964,242 | 9,251,593 | ||||||
Time | 6,333,701 | 5,755,642 | ||||||
Total deposits | 21,223,244 | 19,490,890 | ||||||
Federal Home Loan Bank advances | 4,871,000 | 5,239,348 | ||||||
Notes and other borrowings | 402,828 | 402,809 | ||||||
Other liabilities | 434,270 | 328,675 | ||||||
Total liabilities | 26,931,342 | 25,461,722 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 106,821,902 and 104,166,945 shares issued and outstanding | 1,068 | 1,042 | ||||||
Paid-in capital | 1,492,790 | 1,426,459 | ||||||
Retained earnings | 1,077,042 | 949,681 | ||||||
Accumulated other comprehensive income | 52,589 | 41,247 | ||||||
Total stockholders' equity | 2,623,489 | 2,418,429 | ||||||
Total liabilities and stockholders' equity | $ | 29,554,831 | $ | 27,880,151 |
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 253,815 | $ | 227,233 | $ | 739,586 | $ | 662,439 | ||||||||
Investment securities | 51,851 | 39,712 | 141,624 | 109,963 | ||||||||||||
Other | 3,777 | 3,036 | 10,606 | 8,850 | ||||||||||||
Total interest income | 309,443 | 269,981 | 891,816 | 781,252 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 45,919 | 30,968 | 120,161 | 86,427 | ||||||||||||
Borrowings | 22,260 | 17,278 | 60,209 | 51,939 | ||||||||||||
Total interest expense | 68,179 | 48,246 | 180,370 | 138,366 | ||||||||||||
Net interest income before provision for loan losses | 241,264 | 221,735 | 711,446 | 642,886 | ||||||||||||
Provision for (recovery of) loan losses (including $261, $(445), $2,693 and $(1,119) for covered loans) | 37,854 | 24,408 | 63,573 | 42,449 | ||||||||||||
Net interest income after provision for loan losses | 203,410 | 197,327 | 647,873 | 600,437 | ||||||||||||
Non-interest income: | ||||||||||||||||
Income from resolution of covered assets, net | 6,400 | 8,883 | 22,066 | 26,426 | ||||||||||||
Net gain (loss) on FDIC indemnification | (4,838 | ) | 993 | (14,174 | ) | (9,410 | ) | |||||||||
Service charges and fees | 4,938 | 5,171 | 15,554 | 14,529 | ||||||||||||
Gain (loss) on sale of loans, net (including $0, $(10,033), $(1,582) and $(14,895) related to covered loans) | 2,447 | (7,947 | ) | 6,601 | (7,360 | ) | ||||||||||
Gain on investment securities available for sale, net | 26,931 | 3,008 | 29,194 | 10,065 | ||||||||||||
Lease financing | 13,287 | 11,188 | 40,067 | 32,762 | ||||||||||||
Other non-interest income | 4,161 | 3,779 | 12,055 | 10,118 | ||||||||||||
Total non-interest income | 53,326 | 25,075 | 111,363 | 77,130 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Employee compensation and benefits | 58,327 | 55,162 | 178,386 | 166,374 | ||||||||||||
Occupancy and equipment | 18,829 | 18,867 | 56,689 | 57,199 | ||||||||||||
Amortization of FDIC indemnification asset | 45,225 | 38,957 | 135,351 | 116,711 | ||||||||||||
Deposit insurance expense | 5,764 | 4,943 | 16,827 | 12,866 | ||||||||||||
Professional fees | 2,748 | 3,884 | 12,573 | 10,119 | ||||||||||||
Telecommunications and data processing | 3,452 | 3,746 | 10,481 | 10,800 | ||||||||||||
Depreciation of equipment under operating lease | 8,905 | 6,855 | 25,655 | 20,004 | ||||||||||||
Other non-interest expense | 13,455 | 15,590 | 37,735 | 40,151 | ||||||||||||
Total non-interest expense | 156,705 | 148,004 | 473,697 | 434,224 | ||||||||||||
Income before income taxes | 100,031 | 74,398 | 285,539 | 243,343 | ||||||||||||
Provision for income taxes | 32,252 | 23,550 | 89,060 | 80,896 | ||||||||||||
Net income | $ | 67,779 | $ | 50,848 | $ | 196,479 | $ | 162,447 | ||||||||
Earnings per common share, basic | $ | 0.62 | $ | 0.47 | $ | 1.79 | $ | 1.52 | ||||||||
Earnings per common share, diluted | $ | 0.62 | $ | 0.47 | $ | 1.79 | $ | 1.50 | ||||||||
Cash dividends declared per common share | $ | 0.21 | $ | 0.21 | $ | 0.63 | $ | 0.63 |
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||||||
AVERAGE BALANCES AND YIELDS | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
Average |
|
Yield/ |
Average |
|
Yield/ |
|||||||||||||||
Balance |
Interest (1) |
Rate (1)(2) |
Balance |
Interest (1) |
Rate (1)(2) |
|||||||||||||||
Assets: | ||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Non-covered loans | $ | 19,710,115 | $ | 187,928 | 3.79% | $ | 17,813,925 | $ | 158,963 | 3.56% | ||||||||||
Covered loans | 518,026 | 73,452 | 56.70% | 700,884 | 74,487 | 42.50% | ||||||||||||||
Total loans | 20,228,141 | 261,380 | 5.15% | 18,514,809 | 233,450 | 5.03% | ||||||||||||||
Investment securities (3) | 7,002,615 | 55,046 | 3.14% | 5,898,382 | 42,262 | 2.87% | ||||||||||||||
Other interest earning assets | 545,224 | 3,777 | 2.75% | 557,490 | 3,036 | 2.17% | ||||||||||||||
Total interest earning assets | 27,775,980 | 320,203 | 4.60% | 24,970,681 | 278,748 | 4.45% | ||||||||||||||
Allowance for loan and lease losses | (160,231 | ) | (139,284 | ) | ||||||||||||||||
Non-interest earning assets | 1,699,912 | 1,884,894 | ||||||||||||||||||
Total assets | $ | 29,315,661 | $ | 26,716,291 | ||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing demand deposits | $ | 1,590,206 | 3,415 | 0.85% | $ | 1,437,677 | 2,224 | 0.62% | ||||||||||||
Savings and money market deposits | 9,968,512 | 21,964 | 0.87% | 8,349,281 | 12,974 | 0.62% | ||||||||||||||
Time deposits | 6,290,056 | 20,540 | 1.30% | 5,567,909 | 15,770 | 1.13% | ||||||||||||||
Total interest bearing deposits | 17,848,774 | 45,919 | 1.02% | 15,354,867 | 30,968 | 0.80% | ||||||||||||||
FHLB advances | 4,924,325 | 16,946 | 1.37% | 5,143,003 | 11,956 | 0.92% | ||||||||||||||
Notes and other borrowings | 402,828 | 5,314 | 5.28% | 403,590 | 5,322 | 5.27% | ||||||||||||||
Total interest bearing liabilities | 23,175,927 | 68,179 | 1.17% | 20,901,460 | 48,246 | 0.92% | ||||||||||||||
Non-interest bearing demand deposits | 3,036,046 | 2,981,017 | ||||||||||||||||||
Other non-interest bearing liabilities | 468,735 | 460,514 | ||||||||||||||||||
Total liabilities | 26,680,708 | 24,342,991 | ||||||||||||||||||
Stockholders' equity | 2,634,953 | 2,373,300 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 29,315,661 | $ | 26,716,291 | ||||||||||||||||
Net interest income | $ | 252,024 | $ | 230,502 | ||||||||||||||||
Interest rate spread | 3.43% | 3.53% | ||||||||||||||||||
Net interest margin | 3.62% | 3.69% | ||||||||||||||||||
----------------------------------- |
||||||||||||||||||||
(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) | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
Average |
|
Yield/ |
Average |
|
Yield/ |
|||||||||||||||
Balance |
Interest (1) |
Rate (1)(2) |
Balance |
Interest (1) |
Rate (1)(2) |
|||||||||||||||
Assets: | ||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Non-covered loans | $ | 19,169,479 | $ | 535,926 | 3.73% | $ | 16,876,786 | $ | 452,525 | 3.58% | ||||||||||
Covered loans | 560,934 | 225,194 | 53.54% | 746,709 | 226,659 | 40.48% | ||||||||||||||
Total loans | 19,730,413 | 761,120 | 5.15% | 17,623,495 | 679,184 | 5.14% | ||||||||||||||
Investment securities (3) | 6,569,553 | 151,337 | 3.07% | 5,551,249 | 117,478 | 2.82% | ||||||||||||||
Other interest earning assets | 557,623 | 10,606 | 2.54% | 531,245 | 8,850 | 2.22% | ||||||||||||||
Total interest earning assets | 26,857,589 | 923,063 | 4.59% | 23,705,989 | 805,512 | 4.53% | ||||||||||||||
Allowance for loan and lease losses | (157,015 | ) | (133,280 | ) | ||||||||||||||||
Non-interest earning assets | 1,754,499 | 1,946,846 | ||||||||||||||||||
Total assets | $ | 28,455,073 | $ | 25,519,555 | ||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing demand deposits | $ | 1,564,229 | 8,913 | 0.76% | $ | 1,341,218 | 6,140 | 0.61% | ||||||||||||
Savings and money market deposits | 9,557,907 | 55,741 | 0.78% | 8,203,676 | 37,285 | 0.61% | ||||||||||||||
Time deposits | 5,988,433 | 55,507 | 1.24% | 5,177,191 | 43,002 | 1.11% | ||||||||||||||
Total interest bearing deposits | 17,110,569 | 120,161 | 0.94% | 14,722,085 | 86,427 | 0.78% | ||||||||||||||
FHLB advances | 4,889,578 | 44,262 | 1.21% | 4,698,492 | 35,972 | 1.02% | ||||||||||||||
Notes and other borrowings | 402,821 | 15,947 | 5.28% | 403,213 | 15,967 | 5.28% | ||||||||||||||
Total interest bearing liabilities | 22,402,968 | 180,370 | 1.08% | 19,823,790 | 138,366 | 0.93% | ||||||||||||||
Non-interest bearing demand deposits | 3,034,682 | 2,944,861 | ||||||||||||||||||
Other non-interest bearing liabilities | 443,430 | 431,921 | ||||||||||||||||||
Total liabilities | 25,881,080 | 23,200,572 | ||||||||||||||||||
Stockholders' equity | 2,573,993 | 2,318,983 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 28,455,073 | $ | 25,519,555 | ||||||||||||||||
Net interest income | $ | 742,693 | $ | 667,146 | ||||||||||||||||
Interest rate spread | 3.51% | 3.60% | ||||||||||||||||||
Net interest margin | 3.69% | 3.75% | ||||||||||||||||||
----------------------------------- |
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(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 September 30, | Nine Months Ended September 30, | |||||||||||||||
|
2017 | 2016 | 2017 | 2016 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 67,779 | $ | 50,848 | $ | 196,479 | $ | 162,447 | ||||||||
Distributed and undistributed earnings allocated to participating securities | (2,525 | ) | (2,031 | ) | (7,331 | ) | (6,522 | ) | ||||||||
Income allocated to common stockholders for basic earnings per common share | $ | 65,254 | $ | 48,817 | $ | 189,148 | $ | 155,925 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 106,809,381 | 104,153,018 | 106,488,396 | 104,077,932 | ||||||||||||
Less average unvested stock awards | (1,101,485 | ) | (1,150,268 | ) | (1,102,381 | ) | (1,165,509 | ) | ||||||||
Weighted average shares for basic earnings per common share | 105,707,896 | 103,002,750 | 105,386,015 | 102,912,423 | ||||||||||||
Basic earnings per common share | $ | 0.62 | $ | 0.47 | $ | 1.79 | $ | 1.52 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income allocated to common stockholders for basic earnings per common share | $ | 65,254 | $ | 48,817 | $ | 189,148 | $ | 155,925 | ||||||||
Adjustment for earnings reallocated from participating securities | 6 | (81 | ) | 21 | (264 | ) | ||||||||||
Income used in calculating diluted earnings per common share | $ | 65,260 | $ | 48,736 | $ | 189,169 | $ | 155,661 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares for basic earnings per common share | 105,707,896 | 103,002,750 | 105,386,015 | 102,912,423 | ||||||||||||
Dilutive effect of stock options and executive share-based awards | 365,286 | 558,304 | 479,459 | 699,977 | ||||||||||||
Weighted average shares for diluted earnings per common share | 106,073,182 | 103,561,054 | 105,865,474 | 103,612,400 | ||||||||||||
Diluted earnings per common share | $ | 0.62 | $ | 0.47 | $ | 1.79 | $ | 1.50 |
BANKUNITED, INC. AND SUBSIDIARIES |
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Three Months Ended |
Nine Months Ended |
|||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
Financial ratios (5) | ||||||||||||||
Return on average assets | 0.92% | 0.76% | 0.92% | 0.85% | ||||||||||
Return on average stockholders’ equity | 10.21% | 8.52% | 10.21% | 9.36% | ||||||||||
Net interest margin (4) | 3.62% | 3.69% | 3.69% | 3.75% | ||||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||
Non- |
Total |
Non- |
Total | |||||||||||
Asset quality ratios | ||||||||||||||
Non-performing loans to total loans (1) (3) | 1.00% | 0.99% | 0.71% | 0.70% | ||||||||||
Non-performing assets to total assets (2) | 0.69% | 0.72% | 0.51% | 0.53% | ||||||||||
Allowance for loan and lease losses to total loans (3) | 0.77% | 0.77% | 0.80% | 0.79% | ||||||||||
Allowance for loan and lease losses to non-performing loans (1) | 76.69% | 77.82% | 113.68% | 112.55% | ||||||||||
Net charge-offs to average loans (5) | 0.40% | 0.39% | 0.13% | 0.13% |
(1) | We define non-performing loans to include non-accrual loans, and loans, other than ACI loans, that are past due 90 days or more and still accruing. Contractually delinquent ACI loans on which interest continues to be accreted 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 nine-month periods. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20171031005244/en/
Source:
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak,
786-313-1698
llunak@bankunited.com