For the quarter ended September 30, 2014, the Company reported net
income of
For the nine months ended
Performance Highlights
-
New loans and leases, including equipment under operating leases, grew
by
$623 million during the third quarter of 2014. For the nine months endedSeptember 30, 2014 , new loans and leases increased by$2.7 billion , excluding the impact of the sale of$303 million of indirect auto loans in the second quarter of 2014. -
Total deposits increased by
$797 million for the quarter ended September 30, 2014 to$12.8 billion , reflecting growth across all deposit categories, including$374 million of growth in demand deposits. For the nine months endedSeptember 30, 2014 , total deposits grew by$2.3 billion . -
Net interest income increased by
$9.1 million to $173.2 million for the quarter ended September 30, 2014 from$164.1 million for the quarter ended September 30, 2013. Interest income increased by$13.5 million primarily as a result of an increase in the average balance of loans outstanding, partially offset by a decline in the yield on loans. Interest expense increased by$4.4 million due primarily to an increase in average interest bearing liabilities, partially offset by a decline in the cost of interest bearing liabilities. - The net interest margin, calculated on a tax-equivalent basis, was 4.58% for the quarter ended September 30, 2014 compared to 5.70% for the quarter ended September 30, 2013 and 4.67% for the immediately preceding quarter ended June 30, 2014. The net interest margin continues to be impacted by the origination of new loans at current market yields lower than those on loans acquired in the FSB Acquisition (as defined below).
-
Earnings for the quarter ended September 30, 2014 benefited from a
reduction in the effective income tax rate, primarily due to a
$5.0 million release of reserves for uncertain tax liabilities. -
Book value and tangible book value per common share grew to
$20.07 and$19.39 , respectively, at September 30, 2014.
Capital
The Company and its banking subsidiary continue to exceed all regulatory guidelines required to be considered well capitalized. The Company’s regulatory capital ratios at September 30, 2014 were as follows:
Tier 1 leverage | 11.2 | % | |
Tier 1 risk-based capital | 17.2 | % | |
Total risk-based capital | 18.0 | % |
Loans and Leases
Loans, net of premiums, discounts and deferred fees and costs, increased
to
For the quarter ended September 30, 2014, new commercial loans,
including commercial real estate loans, commercial and industrial loans,
and leases, grew
The
A comparison of portfolio composition at the dates indicated follows:
New Loans | Total Loans | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Single family residential and home equity | 23.2 | % | 24.0 | % | 30.7 | % | 34.3 | % | |||||
Commercial real estate | 41.0 | % | 38.5 | % | 37.3 | % | 34.3 | % | |||||
Commercial | 35.6 | % | 34.7 | % | 31.8 | % | 29.0 | % | |||||
Consumer | 0.2 | % | 2.8 | % | 0.2 | % | 2.4 | % | |||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
The Company's portfolio of equipment under operating lease grew by
Asset Quality
Asset quality remains strong. The ratio of non-performing, non-covered
loans to total non-covered loans was 0.25% at September 30, 2014 as
compared to 0.31% at December 31, 2013. The ratio of total
non-performing loans to total loans was 0.28% at September 30, 2014 as
compared to 0.39% at December 31, 2013. The ratio of the allowance for
non-covered loan and lease losses to non-performing, non-covered loans
was 288.22% at September 30, 2014 compared to 246.73% at December 31,
2013. At September 30, 2014, non-performing assets totaled
For the quarters ended September 30, 2014 and 2013, the Company recorded
provisions for loan losses of
For the nine months ended
The provision related to new loans for the three and nine months ended
The provisions for (recoveries of) loan losses related to covered loans
were significantly mitigated by offsetting increases or decreases in
non-interest income recorded in “Net loss on
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, 2014 | Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
ACI Loans |
Non-ACI
Loans |
New Loans | Total | ACI Loans |
Non-ACI
Loans |
New Loans | Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 7,287 | $ | 68,184 | $ | 75,471 | $ | 4,304 | $ | 13,908 | $ | 40,219 | $ | 58,431 | ||||||||||||||||
Provision (recovery) | — | (900 | ) | 6,287 | 5,387 | (842 | ) | (1,995 | ) | 5,441 | 2,604 | |||||||||||||||||||||
Charge-offs | — | (1,052 | ) | (1,642 | ) | (2,694 | ) | (117 | ) | (1,317 | ) | (586 | ) | (2,020 | ) | |||||||||||||||||
Recoveries | — | 454 | 250 | 704 | — | 147 | 457 | 604 | ||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 5,789 | $ | 73,079 | $ | 78,868 | $ | 3,345 | $ | 10,743 | $ | 45,531 | $ | 59,619 | ||||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
ACI Loans |
Non-ACI
Loans |
New Loans | Total | ACI Loans |
Non-ACI
Loans |
New Loans | Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | 2,893 | $ | 9,502 | $ | 57,330 | $ | 69,725 | $ | 8,019 | $ | 9,874 | $ | 41,228 | $ | 59,121 | ||||||||||||||||
Provision (recovery) | 2,312 | (1,519 | ) | 20,189 | 20,982 | (2,440 | ) | 1,452 | 20,440 | 19,452 | ||||||||||||||||||||||
Charge-offs | (5,205 | ) | (2,686 | ) | (5,369 | ) | (13,260 | ) | (2,234 | ) | (3,223 | ) | (16,837 | ) | (22,294 | ) | ||||||||||||||||
Recoveries | — | 492 | 929 | 1,421 | — | 2,640 | 700 | 3,340 | ||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 5,789 | $ | 73,079 | $ | 78,868 | $ | 3,345 | $ | 10,743 | $ | 45,531 | $ | 59,619 | ||||||||||||||||
Credit risk continues to be limited, though to a declining extent, by
the Loss Sharing Agreements with the
Deposits
At September 30, 2014, deposits totaled
Net interest income
Net interest income for the quarter ended September 30, 2014 increased
to
The Company’s net interest margin, calculated on a tax-equivalent basis,
was 4.58% for the quarter ended September 30, 2014 as compared to 5.70%
for the quarter ended September 30, 2013. Net interest margin,
calculated on a tax-equivalent basis, was 4.75% for the nine months
ended
-
The tax-equivalent yield on loans declined to 6.46% and 6.65%,
respectively, for the quarter and nine months ended
September 30, 2014 compared to 8.83% and 9.79% for the corresponding periods in 2013, primarily because new loans, originated at yields lower than those on loans acquired in the FSB Acquisition, comprised a greater percentage of total loans. -
The yield on new loans was 3.58% for both the quarter and nine months
ended
September 30, 2014 compared to 3.71% and 3.85% for the corresponding periods in 2013, primarily reflecting the impact of lower interest rates on new production over the last year.
-
The yield on loans acquired in the FSB Acquisition increased to 28.68%
for the quarter ended September 30, 2014 from 26.91% for the
corresponding period in 2013. For the nine months ended
September 30, 2014 , the yield on loans acquired in the FSB Acquisition increased to 27.07% from 25.93% for the corresponding period in 2013. -
The average rate on interest bearing liabilities declined to 0.89% and
0.88%, respectively, for the quarter and nine months ended
September 30, 2014 compared to 0.93% and 0.96% for the corresponding periods in 2013, primarily due to lower rates on time deposits and FHLB advances. -
Non-interest bearing deposits comprised a greater percentage of
average total deposits for the quarter and nine months ended
September 30, 2014 as compared to the corresponding periods in 2013. Average non-interest bearing deposits were 20% of average total deposits for both the quarter and nine months endedSeptember 30, 2014 , respectively, as compared to 17% and 16% of average total deposits for the corresponding periods in 2013.
Interest income included proceeds of
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 of 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, 2012 | $ | 1,286,066 | |||
Reclassifications from non-accretable difference | 282,952 | ||||
Accretion | (410,446 | ) | |||
Balance at December 31, 2013 | 1,158,572 | ||||
Reclassifications from non-accretable difference | 135,521 | ||||
Accretion | (262,562 | ) | |||
Balance at September 30, 2014 | $ | 1,031,531 |
Non-interest income
Non-interest income totaled
The consolidated statement of income line items Provision for (recovery
of) losses on covered loans; Income from resolution of covered assets,
net; Gain (loss) on sale of covered loans; Loss on covered investment
securities available for sale and Gain (loss) on covered OREO relate to
transactions in the covered assets. The line item Net loss on
Income from resolution of covered assets, net was
The Company recognized net gains on the sale of covered loans of
Gain on sale of covered loans | $ | 17,971 | ||
Provision for loan losses on transfer to loans held for sale | (3,469 | ) | ||
Loss on sale of OREO | (524 | ) | ||
Loss on FDIC indemnification | (1,737 | ) | ||
$ | 12,241 | |||
Gains were recognized on these sales due primarily to better than
expected pricing. Covered residential loans continue to be sold on a
quarterly basis. Net gains of
Net loss on
Other non-interest income increased to
Non-interest expense
Non-interest expense totaled
Increased compensation and occupancy and equipment expenses for the
quarter and nine months ended
Amortization of the
Provision for income taxes
The effective income tax rate decreased to 27.0% and 32.1% for the
quarter and nine months ended
Non-GAAP Financial Measure
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, 2014 (in thousands except share and per share data):
Total stockholders’ equity | $ | 2,040,169 | |
Less: goodwill and other intangible assets | 68,575 | ||
Tangible stockholders’ equity | $ | 1,971,594 | |
Common shares issued and outstanding | 101,665,975 | ||
Book value per common share | $ | 20.07 | |
Tangible book value per common share | $ | 19.39 |
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m.
ET on Thursday, October 23, 2014 with Chairman, 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 (888) 713-4214 (domestic) or
(617) 213-4866 (international). The name of the call is
About BankUnited, Inc. and the FSB Acquisition
BankUnited, Inc., with total assets of
The Company was organized by a management team led by its Chairman,
President and Chief Executive Officer,
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, 2013 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) | ||||||||
September 30, 2014 |
December 31, 2013 |
|||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Non-interest bearing | $ | 46,593 | $ | 45,976 | ||||
Interest bearing | 18,763 | 14,590 | ||||||
Interest bearing deposits at Federal Reserve Bank | 280,042 | 190,075 | ||||||
Federal funds sold | 2,746 | 2,108 | ||||||
Cash and cash equivalents | 348,144 | 252,749 | ||||||
Investment securities available for sale, at fair value (including covered securities of $205,769 at December 31, 2013) | 4,304,329 | 3,637,124 | ||||||
Non-marketable equity securities | 159,049 | 152,066 | ||||||
Loans held for sale | 2,119 | 194 | ||||||
Loans (including covered loans of $1,099,927 and $1,483,888) | 11,085,776 | 9,053,609 | ||||||
Allowance for loan and lease losses | (78,868 | ) | (69,725 | ) | ||||
Loans, net | 11,006,908 | 8,983,884 | ||||||
FDIC indemnification asset | 1,023,079 | 1,205,117 | ||||||
Bank owned life insurance | 214,320 | 206,759 | ||||||
Equipment under operating lease | 242,448 | 196,483 | ||||||
Other real estate owned (including covered OREO of $18,216 and $39,672) | 18,531 | 40,570 | ||||||
Deferred tax asset, net | 98,113 | 70,626 | ||||||
Goodwill and other intangible assets | 68,575 | 69,067 | ||||||
Other assets | 195,124 | 232,010 | ||||||
Total assets | $ | 17,680,739 | $ | 15,046,649 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits: | ||||||||
Non-interest bearing | $ | 2,579,163 | $ | 2,171,335 | ||||
Interest bearing | 857,910 | 676,079 | ||||||
Savings and money market | 5,411,565 | 4,402,987 | ||||||
Time | 3,985,269 | 3,282,027 | ||||||
Total deposits | 12,833,907 | 10,532,428 | ||||||
Federal Home Loan Bank advances and other borrowings | 2,593,648 | 2,414,313 | ||||||
Other liabilities | 213,015 | 171,210 | ||||||
Total liabilities | 15,640,570 | 13,117,951 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock, par value $0.01 per share, 400,000,000 shares authorized; | ||||||||
101,665,975 and 101,013,014 shares issued and outstanding | 1,017 | 1,010 | ||||||
Paid-in capital | 1,348,964 | 1,334,945 | ||||||
Retained earnings | 626,761 | 535,263 | ||||||
Accumulated other comprehensive income | 63,427 | 57,480 | ||||||
Total stockholders' equity | 2,040,169 | 1,928,698 | ||||||
Total liabilities and stockholders' equity | $ | 17,680,739 | $ | 15,046,649 | ||||
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, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 171,591 | $ | 158,332 | $ | 499,558 | $ | 458,183 | ||||||||
Investment securities available for sale | 27,816 | 27,993 | 78,383 | 88,194 | ||||||||||||
Other | 1,815 | 1,359 | 5,576 | 3,780 | ||||||||||||
Total interest income | 201,222 | 187,684 | 583,517 | 550,157 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 19,432 | 15,248 | 52,994 | 44,287 | ||||||||||||
Borrowings | 8,541 | 8,318 | 24,932 | 23,915 | ||||||||||||
Total interest expense | 27,973 | 23,566 | 77,926 | 68,202 | ||||||||||||
Net interest income before provision for loan losses | 173,249 | 164,118 | 505,591 | 481,955 | ||||||||||||
Provision for (recovery of) loan losses (including $(900), $(2,837), $793 and $(988) for covered loans) | 5,387 | 2,604 | 20,982 | 19,452 | ||||||||||||
Net interest income after provision for loan losses | 167,862 | 161,514 | 484,609 | 462,503 | ||||||||||||
Non-interest income: | ||||||||||||||||
Income from resolution of covered assets, net | 14,525 | 24,592 | 39,756 | 64,362 | ||||||||||||
Net loss on FDIC indemnification | (16,958 | ) | (18,377 | ) | (39,758 | ) | (47,747 | ) | ||||||||
FDIC reimbursement of costs of resolution of covered assets | 1,411 | 2,040 | 3,651 | 7,165 | ||||||||||||
Service charges and fees | 4,236 | 3,634 | 12,427 | 10,355 | ||||||||||||
Gain (loss) on sale of loans, net (including gain (loss) related to covered loans of $3,667, $(4,286), $22,595, and $(9,368)) | 3,789 | (4,081 | ) | 23,112 | (8,782 | ) | ||||||||||
Gain on investment securities available for sale, net (including loss related to covered securities of $(963) for the nine months ended September 30, 2013) | 795 | 1,066 | 1,156 | 6,288 | ||||||||||||
Other non-interest income | 6,653 | 4,786 | 24,775 | 15,372 | ||||||||||||
Total non-interest income | 14,451 | 13,660 | 65,119 | 47,013 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Employee compensation and benefits | 50,003 | 44,117 | 149,008 | 130,219 | ||||||||||||
Occupancy and equipment | 17,782 | 16,571 | 52,245 | 46,994 | ||||||||||||
Amortization of FDIC indemnification asset | 17,948 | 12,354 | 48,883 | 21,784 | ||||||||||||
(Gain) loss on other real estate owned, net (including (gain) loss related to covered OREO of $93, $(1,697), $(2,495) and $(7,120)) | 93 | (1,697 | ) | (2,366 | ) | (7,120 | ) | |||||||||
Foreclosure and other real estate owned expense | 1,408 | 2,803 | 3,896 | 7,432 | ||||||||||||
Deposit insurance expense | 2,452 | 1,926 | 7,015 | 5,587 | ||||||||||||
Professional fees | 3,106 | 4,831 | 9,663 | 17,212 | ||||||||||||
Telecommunications and data processing | 3,332 | 2,842 | 9,905 | 9,694 | ||||||||||||
Other non-interest expense | 12,809 | 12,870 | 39,765 | 33,101 | ||||||||||||
Total non-interest expense | 108,933 | 96,617 | 318,014 | 264,903 | ||||||||||||
Income before income taxes | 73,380 | 78,557 | 231,714 | 244,613 | ||||||||||||
Provision for income taxes | 19,813 | 24,248 | 74,333 | 88,070 | ||||||||||||
Net income | $ | 53,567 | $ | 54,309 | $ | 157,381 | $ | 156,543 | ||||||||
Earnings per common share, basic | $ | 0.51 | $ | 0.52 | $ | 1.51 | $ | 1.52 | ||||||||
Earnings per common share, diluted | $ | 0.51 | $ | 0.52 | $ | 1.50 | $ | 1.51 | ||||||||
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, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Average Balance |
Yield / Rate (2) |
Average Balance |
Yield / Rate (2) |
|||||||||||||||||||
Interest (1) | Interest (1) | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||
Loans | $ | 10,769,828 | $ | 174,504 | 6.46 | % | $ | 7,234,822 | $ | 160,257 | 8.83 | % | ||||||||||
Investment securities available for sale (3) | 4,193,309 | 28,556 | 2.72 | % | 4,030,197 | 28,670 | 2.85 | % | ||||||||||||||
Other interest earning assets | 473,419 | 1,815 | 1.52 | % | 416,185 | 1,359 | 1.30 | % | ||||||||||||||
Total interest earning assets | 15,436,556 | 204,875 | 5.29 | % | 11,681,204 | 190,286 | 6.50 | % | ||||||||||||||
Allowance for loan and lease losses | (78,219 | ) | (61,792 | ) | ||||||||||||||||||
Non-interest earning assets | 1,886,180 | 2,009,626 | ||||||||||||||||||||
Total assets | $ | 17,244,517 | $ | 13,629,038 | ||||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||
Interest bearing demand deposits | $ | 791,648 | 815 | 0.41 | % | $ | 571,884 | 636 | 0.44 | % | ||||||||||||
Savings and money market deposits | 5,169,380 | 6,929 | 0.53 | % | 4,342,628 | 5,191 | 0.47 | % | ||||||||||||||
Time deposits | 3,934,361 | 11,688 | 1.18 | % | 2,927,537 | 9,421 | 1.28 | % | ||||||||||||||
Total interest bearing deposits | 9,895,389 | 19,432 | 0.78 | % | 7,842,049 | 15,248 | 0.77 | % | ||||||||||||||
FHLB advances and other borrowings | 2,620,323 | 8,541 | 1.29 | % | 2,199,731 | 8,318 | 1.50 | % | ||||||||||||||
Total interest bearing liabilities | 12,515,712 | 27,973 | 0.89 | % | 10,041,780 | 23,566 | 0.93 | % | ||||||||||||||
Non-interest bearing demand deposits | 2,447,150 | 1,568,407 | ||||||||||||||||||||
Other non-interest bearing liabilities | 257,053 | 144,231 | ||||||||||||||||||||
Total liabilities | 15,219,915 | 11,754,418 | ||||||||||||||||||||
Stockholders' equity | 2,024,602 | 1,874,620 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 17,244,517 | $ | 13,629,038 | ||||||||||||||||||
Net interest income | $ | 176,902 | $ | 166,720 | ||||||||||||||||||
Interest rate spread | 4.40 | % | 5.57 | % | ||||||||||||||||||
Net interest margin | 4.58 | % | 5.70 | % |
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
AVERAGE BALANCES AND YIELDS | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Average Balance |
Interest (1) |
Yield / Rate (2) |
Average Balance |
Interest (1) |
Yield / Rate (2) |
|||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||
Loans | $ | 10,188,110 | $ | 507,309 | 6.65 | % | $ | 6,311,252 | $ | 463,144 | 9.79 | % | ||||||||||
Investment securities available for sale (3) | 3,844,005 | 80,415 | 2.79 | % | 4,245,236 | 90,327 | 2.84 | % | ||||||||||||||
Other interest earning assets | 439,090 | 5,576 | 1.70 | % | 471,625 | 3,780 | 1.07 | % | ||||||||||||||
Total interest earning assets | 14,471,205 | 593,300 | 5.47 | % | 11,028,113 | 557,251 | 6.74 | % | ||||||||||||||
Allowance for loan and lease losses | (74,478 | ) | (62,272 | ) | ||||||||||||||||||
Non-interest earning assets | 1,929,339 | 2,060,332 | ||||||||||||||||||||
Total assets | $ | 16,326,066 | $ | 13,026,173 | ||||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||
Interest bearing demand deposits | $ | 731,712 | 2,270 | 0.41 | % | $ | 562,299 | 1,945 | 0.46 | % | ||||||||||||
Savings and money market deposits | 4,915,728 | 18,312 | 0.50 | % | 4,208,333 | 15,175 | 0.48 | % | ||||||||||||||
Time deposits | 3,643,425 | 32,412 | 1.19 | % | 2,734,198 | 27,167 | 1.33 | % | ||||||||||||||
Total interest bearing deposits | 9,290,865 | 52,994 | 0.76 | % | 7,504,830 | 44,287 | 0.79 | % | ||||||||||||||
FHLB advances and other borrowings | 2,545,148 | 24,932 | 1.31 | % | 2,032,805 | 23,915 | 1.58 | % | ||||||||||||||
Total interest bearing liabilities | 11,836,013 | 77,926 | 0.88 | % | 9,537,635 | 68,202 | 0.96 | % | ||||||||||||||
Non-interest bearing demand deposits | 2,270,947 | 1,458,849 | ||||||||||||||||||||
Other non-interest bearing liabilities | 219,794 | 172,342 | ||||||||||||||||||||
Total liabilities | 14,326,754 | 11,168,826 | ||||||||||||||||||||
Stockholders' equity | 1,999,312 | 1,857,347 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 16,326,066 | $ | 13,026,173 | ||||||||||||||||||
Net interest income | $ | 515,374 | $ | 489,049 | ||||||||||||||||||
Interest rate spread | 4.59 | % | 5.78 | % | ||||||||||||||||||
Net interest margin | 4.75 | % | 5.92 | % |
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
(In thousands except share amounts) | ||||||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 53,567 | $ | 54,309 | $ | 157,381 | $ | 156,543 | ||||||||
Distributed and undistributed earnings allocated to participating securities | (2,130 | ) | (2,132 | ) | (6,215 | ) | (7,427 | ) | ||||||||
Income allocated to common stockholders for basic earnings per common share | $ | 51,437 | $ | 52,177 | $ | 151,166 | $ | 149,116 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 101,657,560 | 100,737,319 | 101,545,930 | 99,131,377 | ||||||||||||
Less average unvested stock awards | (1,175,739 | ) | (1,085,044 | ) | (1,120,393 | ) | (1,118,496 | ) | ||||||||
Weighted average shares for basic earnings per common share | 100,481,821 | 99,652,275 | 100,425,537 | 98,012,881 | ||||||||||||
Basic earnings per common share | $ | 0.51 | $ | 0.52 | $ | 1.51 | $ | 1.52 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income allocated to common stockholders for basic earnings per common share | $ | 51,437 | $ | 52,177 | $ | 151,166 | $ | 149,116 | ||||||||
Adjustment for earnings reallocated from participating securities | 5 | 4 | 14 | 1,264 | ||||||||||||
Income used in calculating diluted earnings per common share | $ | 51,442 | $ | 52,181 | $ | 151,180 | $ | 150,380 | ||||||||
Denominator: | ||||||||||||||||
Average shares for basic earnings per common share | 100,481,821 | 99,652,275 | 100,425,537 | 98,012,881 | ||||||||||||
Dilutive effect of stock options and preferred shares | 140,006 | 196,190 | 142,035 | 1,626,264 | ||||||||||||
Weighted average shares for diluted earnings per common share | 100,621,827 | 99,848,465 | 100,567,572 | 99,639,145 | ||||||||||||
Diluted earnings per common share | $ | 0.51 | $ | 0.52 | $ | 1.50 | $ | 1.51 | ||||||||
BANKUNITED, INC. AND SUBSIDIARIES | ||||||||||||
SELECTED RATIOS | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Financial ratios (4) | ||||||||||||
Return on average assets | 1.23 | % | 1.58 | % | 1.29 | % | 1.61 | % | ||||
Return on average stockholders’ equity | 10.50 | % | 11.49 | % | 10.52 | % | 11.27 | % | ||||
Net interest margin (5) | 4.58 | % | 5.70 | % | 4.75 | % | 5.92 | % | ||||
September 30, 2014 | December 31, 2013 | |||||
Capital ratios | ||||||
Tier 1 leverage | 11.20 | % | 12.42 | % | ||
Tier 1 risk-based capital | 17.16 | % | 21.06 | % | ||
Total risk-based capital | 17.96 | % | 21.93 | % |
September 30, 2014 | December 31, 2013 | |||||||||||
Non-Covered | Total | Non-Covered | Total | |||||||||
Asset quality ratios | ||||||||||||
Non-performing loans to total loans (1) (3) | 0.25 | % | 0.28 | % | 0.31 | % | 0.39 | % | ||||
Non-performing assets to total assets (2) | 0.15 | % | 0.28 | % | 0.16 | % | 0.51 | % | ||||
Allowance for loan and lease losses to total loans (3) | 0.73 | % | 0.71 | % | 0.76 | % | 0.77 | % | ||||
Allowance for loan and lease losses to non-performing loans (1) | 288.22 | % | 250.09 | % | 246.73 | % | 195.52 | % | ||||
Net charge-offs to average loans (4) | 0.07 | % | 0.16 | % | 0.34 | % | 0.31 | % | ||||
(1) We define non-performing loans to include non-accrual loans, loans, other than ACI loans, that are past due 90 days or more and still accruing and certain loans modified in troubled debt restructurings. 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 and OREO.
(3) Total loans is net of premiums, discounts, and deferred fees and costs.
(4) Annualized.
(5) On a tax-equivalent basis.
Source:
BankUnited, Inc.
Investor Relations:
Leslie Lunak,
786-313-1698
llunak@bankunited.com
or
Media
Relations:
Mary Harris, 305-817-8117
mharris@bankunited.com