For the quarter ended
Non-loss share earnings per share(1) for the trailing four
quarters ended
The annualized return on average stockholders’ equity for the nine
months ended
Performance Highlights
-
Net interest income increased by
$10.7 million to $252.0 million for the quarter endedSeptember 30, 2018 from$241.3 million for the quarter endedSeptember 30, 2017 . Interest income increased by$48.3 million , driven by increases in the average balances of loans and investment securities outstanding as well as increases in yields on interest earning assets. Interest expense increased by$37.6 million , driven primarily by increases in average interest bearing deposits and an increase in the cost of interest bearing liabilities. For the nine months endedSeptember 30, 2018 , net interest income increased by$43.6 million to $755.0 million from$711.4 million for the nine months endedSeptember 30, 2017 . -
The net interest margin, calculated on a tax-equivalent basis, was
3.51% for the quarter ended
September 30, 2018 compared to 3.60% for the immediately preceding quarter endedJune 30, 2018 and 3.62% for the quarter endedSeptember 30, 2017 . Significant factors contributing to the decline in the net interest margin from the comparable quarter of the prior year were (i) an increase in the cost of interest bearing liabilities; (ii) the impact on tax equivalent yields of the reduction in the statutory federal income tax rate; and (iii) although yields on all categories of interest earning assets increased, non-covered loans and investment securities were added to the balance sheet at yields lower than the existing yield on earning assets, which is impacted by the yield on covered loans. -
The provision for loan losses for the quarter ended
September 30, 2018 totaled$1.2 million compared to$37.9 million for the quarter endedSeptember 30, 2017 . The provision for the quarter endedSeptember 30, 2017 included$32.7 million related to taxi medallion loans. -
Non-covered loans and leases, including equipment under operating
lease, grew by
$211 million during the quarter endedSeptember 30, 2018 . For the nine months endedSeptember 30, 2018 , non-covered loans and leases grew by$708 million . -
For the quarter ended
September 30, 2018 , total deposits increased by$127 million , of which$98 million was non-interest bearing demand deposits. Total deposits increased by$427 million for the nine months endedSeptember 30, 2018 , of which$343 million was non-interest bearing demand deposits. -
Book value per common share grew to
$29.63 atSeptember 30, 2018 from$28.32 atDecember 31, 2017 while tangible book value per common share increased to$28.88 from$27.59 over the same period.
-
During the quarter ended
September 30, 2018 , the Company completed the$150 million share repurchase program authorized by its Board of Directors, repurchasing 2.4 million shares for an aggregate purchase price of$96 million . During the nine months endedSeptember 30, 2018 , the Company repurchased approximately 3.8 million shares of its common stock for an aggregate purchase price of$150.0 million . -
On
October 23, 2018 the Board of Directors of the Company authorized the repurchase of up to an additional$150 million in shares of its outstanding common stock. Any repurchases will be made in accordance with applicable securities laws from time to time in open market or private transactions. The extent to which the Company repurchases shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, the Company’s capital position and amount of retained earnings, regulatory requirements and other considerations. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued at any time.
(1) Non-loss share earnings per share is a non-GAAP measure. See section entitled "Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measurements to their comparable GAAP financial measurements.
Capital
The Company and its banking subsidiary continue to exceed all regulatory
guidelines required to be considered well capitalized. The Company’s and
BankUnited, Inc. | BankUnited, N.A. | ||||||
Tier 1 leverage | 9.5% | 10.3% | |||||
Common Equity Tier 1 ("CET1") risk-based capital | 13.2% | 14.3% | |||||
Tier 1 risk-based capital | 13.2% | 14.3% | |||||
Total risk-based capital | 13.8% | 14.9% | |||||
Loans and Leases
Loans, including premiums, discounts and deferred fees and costs,
totaled
A comparison of non-covered loan and lease portfolio composition at the dates indicated follows:
September 30, 2018 | June 30, 2018 | December 31, 2017 | ||||||||||||||||
Residential and other consumer loans | $ | 4,563,578 | 21.0% | $ | 4,448,660 | 20.6% | $ | 4,196,080 | 19.8% | |||||||||
Multi-family | 2,762,998 | 12.8% | 2,861,559 | 13.4% | 3,218,953 | 15.4% | ||||||||||||
Non-owner occupied commercial real estate | 4,567,589 | 21.4% | 4,526,922 | 21.2% | 4,474,801 | 21.5% | ||||||||||||
Construction and land | 244,619 | 1.1% | 255,393 | 1.2% | 310,484 | 1.5% | ||||||||||||
Owner occupied commercial real estate | 2,091,978 | 9.7% | 2,046,266 | 9.6% | 2,012,742 | 9.7% | ||||||||||||
Commercial and industrial | 4,708,545 | 21.9% | 4,594,857 | 21.5% | 4,137,827 | 19.9% | ||||||||||||
Commercial lending subsidiaries | 2,620,097 | 12.1% | 2,684,716 | 12.5% | 2,562,499 | 12.2% | ||||||||||||
$ | 21,559,404 | 100.0% | $ | 21,418,373 | 100.0% | $ | 20,913,386 | 100.0% | ||||||||||
Equipment under operating lease, net | $ | 661,677 | $ | 591,267 | $ | 599,502 | ||||||||||||
Residential and other consumer loans grew by
Asset Quality and Allowance for Loan and Lease Losses
For the quarters ended
Significant factors impacting the decrease 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
0.58% and 60.51%, 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 September 30, 2018 | Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total |
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 590 | $ | 134,381 | $ | 134,971 | $ | 1,812 | $ | 2,737 | $ | 151,099 | $ | 155,648 | ||||||||||||||||
Provision (recovery) | — | (50 | ) | 1,250 | 1,200 | — | 261 | 37,593 | 37,854 | |||||||||||||||||||||||
Charge-offs | — | (740 | ) | (12,340 | ) | (13,080 | ) | — | — | (36,028 | ) | (36,028 | ) | |||||||||||||||||||
Recoveries | — | 214 | 1,435 | 1,649 | — | 38 | 1,061 | 1,099 | ||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 14 | $ | 124,726 | $ | 124,740 | $ | 1,812 | $ | 3,036 | $ | 153,725 | $ | 158,573 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total |
ACI Loans |
Non-ACI Loans |
Non-Covered Loans |
Total | |||||||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 258 | $ | 144,537 | $ | 144,795 | $ | — | $ | 2,100 | $ | 150,853 | $ | 152,953 | ||||||||||||||||
Provision | — | 517 | 12,825 | 13,342 | 1,812 | 881 | 60,880 | 63,573 | ||||||||||||||||||||||||
Charge-offs | — | (979 | ) | (35,001 | ) | (35,980 | ) | — | (55 | ) | (61,034 | ) | (61,089 | ) | ||||||||||||||||||
Recoveries | — | 218 | 2,365 | 2,583 | — | 110 | 3,026 | 3,136 | ||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 14 | $ | 124,726 | $ | 124,740 | $ | 1,812 | $ | 3,036 | $ | 153,725 | $ | 158,573 |
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,
was 3.51% for the quarter ended
Significant offsetting factors impacting the declines in net interest
margin for the quarter and nine months ended
-
The tax-equivalent yield on loans increased to 5.47% and 5.39%,
respectively, for the quarter and nine months ended
September 30, 2018 , compared to 5.15% for both the quarter and nine months endedSeptember 30, 2017 , reflecting increased yields on both non-covered and covered loans. -
The tax-equivalent yield on non-covered loans was 4.05% and 3.94%,
respectively, for the quarter and the nine months ended
September 30, 2018 , compared to 3.79% and 3.73% for the quarter and nine months endedSeptember 30, 2017 . The most significant factor contributing to the increased yield on non-covered loans was the impact of increases in benchmark interest rates. -
The tax-equivalent yield on covered loans increased to 79.67% and
71.46%, respectively, for the quarter and nine months ended
September 30, 2018 from 56.70% and 53.54% for the quarter and nine months endedSeptember 30, 2017 , reflecting continued improvements in expected cash flows from ACI loans. -
The tax-equivalent yield on investment securities increased to 3.41%
and 3.26%, respectively, for the quarter and nine months ended
September 30, 2018 from 3.14% and 3.07% for the quarter and nine months endedSeptember 30, 2017 . -
Tax-equivalent yields on non-covered loans and investment securities
and the net interest margin were each negatively impacted by
approximately 0.08% for the quarter ended
September 30, 2018 as compared to the quarter endedSeptember 30, 2017 as a result of the reduction in the statutory federal income tax rate. For the nine months endedSeptember 30, 2018 as compared to the nine months endedSeptember 30, 2017 , the tax rate change negatively impacted the net interest margin by approximately 0.08%. - Growth of non-covered loans and investment securities at yields lower than the overall yield on interest earning assets, which is impacted by the yield on covered loans.
-
The average rate on interest bearing liabilities increased to 1.74%
and 1.57%, respectively for the quarter and nine months ended
September 30, 2018 , from 1.17% and 1.08% for the quarter and nine months endedSeptember 30, 2017 , reflecting higher average rates on both interest bearing deposits and FHLB advances. Increases in the cost of interest bearing liabilities primarily reflect increases in market interest rates and extension of the duration of FHLB advances.
Non-interest income
Non-interest income totaled
The most significant factors contributing to these decreases in
non-interest income included (i) decreases of
Non-interest expense
Non-interest expense totaled
Amortization of the
Provision for income taxes
The effective income tax rate was 18.0% and 21.4% for the quarter and
nine months ended
Covered loans and the
As the Company’s expected cash flows from ACI loans have improved since the FSB Acquisition, the Company has reclassified amounts from non-accretable difference to accretable yield, resulting in increases in the yield on covered loans. Non-accretable difference at acquisition represented the difference between the total contractual payments due and the cash flows expected to be received on ACI loans. The accretable yield on ACI loans represented the amount by which undiscounted expected future cash flows exceeded the recorded investment in the loans.
Changes in accretable yield on ACI loans for the nine months ended
Balance, December 31, 2016 | $ | 675,385 | ||
Reclassifications from non-accretable difference, net | 81,501 | |||
Accretion | (301,827 | ) | ||
Balance, December 31, 2017 | 455,059 | |||
Reclassifications from non-accretable difference, net | 78,561 | |||
Accretion | (249,609 | ) | ||
Balance, September 30, 2018 | $ | 284,011 |
At
The estimates of expected cash flows from ACI loans underlying the
balance of accretable yield and future estimated amortization of the
Impact of Hurricane Michael
In October, 2018, Hurricane Michael made landfall in the
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 BankUnited, Inc. and the FSB Acquisition
BankUnited, Inc., with total assets of
On
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) |
||||||||
September 30, 2018 |
December 31, 2017 |
|||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Non-interest bearing | $ | 11,644 | $ | 35,246 | ||||
Interest bearing | 268,155 | 159,336 | ||||||
Cash and cash equivalents | 279,799 | 194,582 | ||||||
Investment securities (including securities recorded at fair value of $7,217,403 and $6,680,832) | 7,227,403 | 6,690,832 | ||||||
Non-marketable equity securities | 273,427 | 265,989 | ||||||
Loans held for sale | 37,179 | 34,097 | ||||||
Loans (including covered loans of $359,767 and $503,118) | 21,919,171 | 21,416,504 | ||||||
Allowance for loan and lease losses | (124,740 | ) | (144,795 | ) | ||||
Loans, net | 21,794,431 | 21,271,709 | ||||||
FDIC indemnification asset | 152,517 | 295,635 | ||||||
Bank owned life insurance | 262,987 | 252,462 | ||||||
Equipment under operating lease, net | 661,677 | 599,502 | ||||||
Goodwill and other intangible assets | 77,729 | 77,796 | ||||||
Other assets | 746,487 | 664,382 | ||||||
Total assets | $ | 31,513,636 | $ | 30,346,986 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits: | ||||||||
Non-interest bearing | $ | 3,413,610 | $ | 3,071,032 | ||||
Interest bearing | 1,587,812 | 1,757,581 | ||||||
Savings and money market | 10,588,075 | 10,715,024 | ||||||
Time | 6,715,793 | 6,334,842 | ||||||
Total deposits | 22,305,290 | 21,878,479 | ||||||
Federal funds purchased | 175,000 | — | ||||||
Federal Home Loan Bank advances | 4,946,000 | 4,771,000 | ||||||
Notes and other borrowings | 402,780 | 402,830 | ||||||
Other liabilities | 609,678 | 268,615 | ||||||
Total liabilities | 28,438,748 | 27,320,924 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 103,793,325 and 106,848,185 shares issued and outstanding | 1,037 | 1,068 | ||||||
Paid-in capital | 1,364,864 | 1,498,227 | ||||||
Retained earnings | 1,667,092 | 1,471,781 | ||||||
Accumulated other comprehensive income | 41,895 | 54,986 | ||||||
Total stockholders' equity | 3,074,888 | 3,026,062 | ||||||
Total liabilities and stockholders' equity | $ | 31,513,636 | $ | 30,346,986 | ||||
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, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 293,543 | $ | 253,815 | $ | 855,807 | $ | 739,586 | ||||||||
Investment securities | 59,319 | 51,851 | 165,396 | 141,624 | ||||||||||||
Other | 4,855 | 3,777 | 13,145 | 10,606 | ||||||||||||
Total interest income | 357,717 | 309,443 | 1,034,348 | 891,816 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 75,257 | 45,919 | 196,916 | 120,161 | ||||||||||||
Borrowings | 30,492 | 22,260 | 82,392 | 60,209 | ||||||||||||
Total interest expense | 105,749 | 68,179 | 279,308 | 180,370 | ||||||||||||
Net interest income before provision for loan losses | 251,968 | 241,264 | 755,040 | 711,446 | ||||||||||||
Provision for (recovery of) loan losses (including ($50), $261, $517 and $2,693 for covered loans) | 1,200 | 37,854 | 13,342 | 63,573 | ||||||||||||
Net interest income after provision for loan losses | 250,768 | 203,410 | 741,698 | 647,873 | ||||||||||||
Non-interest income: | ||||||||||||||||
Income from resolution of covered assets, net | 3,134 | 6,400 | 10,689 | 22,066 | ||||||||||||
Net gain (loss) on FDIC indemnification | 3,090 | (4,838 | ) | (1,925 | ) | (14,174 | ) | |||||||||
Deposit service charges and fees | 3,677 | 3,251 | 10,674 | 9,706 | ||||||||||||
Gain (loss) on sale of loans, net (including $5,037, $0, $4,739 and $(1,582) related to covered loans) | 8,691 | 2,447 | 12,960 | 6,601 | ||||||||||||
Gain on investment securities, net | 432 | 26,931 | 2,938 | 29,194 | ||||||||||||
Lease financing | 14,091 | 13,287 | 45,685 | 40,067 | ||||||||||||
Other non-interest income | 5,620 | 5,848 | 17,673 | 17,903 | ||||||||||||
Total non-interest income | 38,735 | 53,326 | 98,694 | 111,363 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Employee compensation and benefits | 65,612 | 58,327 | 198,185 | 178,386 | ||||||||||||
Occupancy and equipment | 18,887 | 18,829 | 56,704 | 56,689 | ||||||||||||
Amortization of FDIC indemnification asset | 48,255 | 45,225 | 132,852 | 135,351 | ||||||||||||
Deposit insurance expense | 5,375 | 5,764 | 14,810 | 16,827 | ||||||||||||
Professional fees | 5,240 | 2,748 | 10,772 | 12,573 | ||||||||||||
Telecommunications and data processing | 4,187 | 3,452 | 11,772 | 10,481 | ||||||||||||
Depreciation of equipment under operating lease | 9,870 | 8,905 | 28,662 | 25,655 | ||||||||||||
Other non-interest expense | 13,372 | 13,455 | 40,105 | 37,735 | ||||||||||||
Total non-interest expense | 170,798 | 156,705 | 493,862 | 473,697 | ||||||||||||
Income before income taxes | 118,705 | 100,031 | 346,530 | 285,539 | ||||||||||||
Provision for income taxes | 21,377 | 32,252 | 74,067 | 89,060 | ||||||||||||
Net income | $ | 97,328 | $ | 67,779 | $ | 272,463 | $ | 196,479 | ||||||||
Earnings per common share, basic | $ | 0.90 | $ | 0.62 | $ | 2.50 | $ | 1.79 | ||||||||
Earnings per common share, diluted | $ | 0.90 | $ | 0.62 | $ | 2.49 | $ | 1.79 | ||||||||
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, | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
Average |
Interest (1) |
Yield/ Rate(1)(2) |
Average |
Interest (1) |
Yield/ |
|||||||||||||||
Assets: | ||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Non-covered loans | $ | 21,311,706 | $ | 216,746 | 4.05% | $ | 19,710,115 | $ | 187,928 | 3.79% | ||||||||||
Covered loans | 408,182 | 81,302 | 79.67% | 518,026 | 73,452 | 56.70% | ||||||||||||||
Total loans | 21,719,888 | 298,048 | 5.47% | 20,228,141 | 261,380 | 5.15% | ||||||||||||||
Investment securities (3) | 7,118,626 | 60,677 | 3.41% | 7,002,615 | 55,046 | 3.14% | ||||||||||||||
Other interest earning assets | 507,318 | 4,855 | 3.80% | 545,224 | 3,777 | 2.75% | ||||||||||||||
Total interest earning assets | 29,345,832 | 363,580 | 4.94% | 27,775,980 | 320,203 | 4.60% | ||||||||||||||
Allowance for loan and lease losses | (137,784 | ) | (160,231 | ) | ||||||||||||||||
Non-interest earning assets | 1,859,619 | 1,699,912 | ||||||||||||||||||
Total assets | $ | 31,067,667 | $ | 29,315,661 | ||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing demand deposits | $ | 1,592,908 | 4,550 | 1.13% | $ | 1,590,206 | 3,415 | 0.85% | ||||||||||||
Savings and money market deposits | 10,483,248 | 38,520 | 1.46% | 9,968,512 | 21,964 | 0.87% | ||||||||||||||
Time deposits | 6,728,915 | 32,187 | 1.90% | 6,290,056 | 20,540 | 1.30% | ||||||||||||||
Total interest bearing deposits | 18,805,071 | 75,257 | 1.59% | 17,848,774 | 45,919 | 1.02% | ||||||||||||||
Federal funds purchased | 89,218 | 445 | 2.00% | — | — | —% | ||||||||||||||
FHLB advances | 4,772,902 | 24,743 | 2.06% | 4,924,325 | 16,946 | 1.37% | ||||||||||||||
Notes and other borrowings | 402,782 | 5,304 | 5.27% | 402,828 | 5,314 | 5.28% | ||||||||||||||
Total interest bearing liabilities | 24,069,973 | 105,749 | 1.74% | 23,175,927 | 68,179 | 1.17% | ||||||||||||||
Non-interest bearing demand deposits | 3,369,393 | 3,036,046 | ||||||||||||||||||
Other non-interest bearing liabilities | 520,118 | 468,735 | ||||||||||||||||||
Total liabilities | 27,959,484 | 26,680,708 | ||||||||||||||||||
Stockholders' equity | 3,108,183 | 2,634,953 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 31,067,667 | $ | 29,315,661 | ||||||||||||||||
Net interest income | $ | 257,831 | $ | 252,024 | ||||||||||||||||
Interest rate spread | 3.20% | 3.43% | ||||||||||||||||||
Net interest margin | 3.51% | 3.62% |
______ |
||
(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, | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
Average |
Interest (1) |
Yield/ Rate (1)(2) |
Average Balance |
Interest (1) |
Yield/ Rate (1)(2) |
|||||||||||||||
Assets: | ||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Non-covered loans | $ | 21,073,130 | $ | 622,039 | 3.94% | $ | 19,169,479 | $ | 535,926 | 3.73% | ||||||||||
Covered loans | 460,485 | 246,811 | 71.46% | 560,934 | 225,194 | 53.54% | ||||||||||||||
Total loans | 21,533,615 | 868,850 | 5.39% | 19,730,413 | 761,120 | 5.15% | ||||||||||||||
Investment securities (3) | 6,932,504 | 169,645 | 3.26% | 6,569,553 | 151,337 | 3.07% | ||||||||||||||
Other interest earning assets | 503,378 | 13,145 | 3.49% | 557,623 | 10,606 | 2.54% | ||||||||||||||
Total interest earning assets | 28,969,497 | 1,051,640 | 4.85% | 26,857,589 | 923,063 | 4.59% | ||||||||||||||
Allowance for loan and lease losses | (141,047 | ) | (157,015 | ) | ||||||||||||||||
Non-interest earning assets | 1,905,278 | 1,754,499 | ||||||||||||||||||
Total assets | $ | 30,733,728 | $ | 28,455,073 | ||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing demand deposits | $ | 1,604,666 | 12,902 | 1.07% | $ | 1,564,229 | 8,913 | 0.76% | ||||||||||||
Savings and money market deposits | 10,610,889 | 100,891 | 1.27% | 9,557,907 | 55,741 | 0.78% | ||||||||||||||
Time deposits | 6,507,726 | 83,123 | 1.71% | 5,988,433 | 55,507 | 1.24% | ||||||||||||||
Total interest bearing deposits | 18,723,281 | 196,916 | 1.41% | 17,110,569 | 120,161 | 0.94% | ||||||||||||||
Federal funds purchased | 30,066 | 445 | 1.97% | — | — | —% | ||||||||||||||
FHLB advances | 4,665,799 | 66,028 | 1.89% | 4,889,578 | 44,262 | 1.21% | ||||||||||||||
Notes and other borrowings | 402,809 | 15,919 | 5.27% | 402,821 | 15,947 | 5.28% | ||||||||||||||
Total interest bearing liabilities | 23,821,955 | 279,308 | 1.57% | 22,402,968 | 180,370 | 1.08% | ||||||||||||||
Non-interest bearing demand deposits | 3,327,521 | 3,034,682 | ||||||||||||||||||
Other non-interest bearing liabilities | 498,368 | 443,430 | ||||||||||||||||||
Total liabilities | 27,647,844 | 25,881,080 | ||||||||||||||||||
Stockholders' equity | 3,085,884 | 2,573,993 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 30,733,728 | $ | 28,455,073 | ||||||||||||||||
Net interest income | $ | 772,332 | $ | 742,693 | ||||||||||||||||
Interest rate spread | 3.28% | 3.51% | ||||||||||||||||||
Net interest margin | 3.56% | 3.69% |
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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, | |||||||||||||||
|
2018 | 2017 | 2018 | 2017 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 97,328 | $ | 67,779 | $ | 272,463 | $ | 196,479 | ||||||||
Distributed and undistributed earnings allocated to participating securities | (3,771 | ) | (2,525 | ) | (10,444 | ) | (7,331 | ) | ||||||||
Income allocated to common stockholders for basic earnings per common share | $ | 93,557 | $ | 65,254 | $ | 262,019 | $ | 189,148 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 105,063,770 | 106,809,381 | 105,914,807 | 106,488,396 | ||||||||||||
Less average unvested stock awards | (1,178,982 | ) | (1,101,485 | ) | (1,170,209 | ) | (1,102,381 | ) | ||||||||
Weighted average shares for basic earnings per common share | 103,884,788 | 105,707,896 | 104,744,598 | 105,386,015 | ||||||||||||
Basic earnings per common share | $ | 0.90 | $ | 0.62 | $ | 2.50 | $ | 1.79 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income allocated to common stockholders for basic earnings per common share | $ | 93,557 | $ | 65,254 | $ | 262,019 | $ | 189,148 | ||||||||
Adjustment for earnings reallocated from participating securities | 13 | 6 | 37 | 21 | ||||||||||||
Income used in calculating diluted earnings per common share | $ | 93,570 | $ | 65,260 | $ | 262,056 | $ | 189,169 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares for basic earnings per common share | 103,884,788 | 105,707,896 | 104,744,598 | 105,386,015 | ||||||||||||
Dilutive effect of stock options and executive share-based awards | 499,431 | 365,286 | 512,801 | 479,459 | ||||||||||||
Weighted average shares for diluted earnings per common share | 104,384,219 | 106,073,182 | 105,257,399 | 105,865,474 | ||||||||||||
Diluted earnings per common share | $ | 0.90 | $ | 0.62 | $ | 2.49 | $ | 1.79 | ||||||||
BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS |
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
Financial ratios (5) | ||||||||
Return on average assets | 1.24% | 0.92% | 1.19% | 0.92% | ||||
Return on average stockholders’ equity | 12.42% | 10.21% | 11.80% | 10.21% | ||||
Net interest margin (4) | 3.51% | 3.62% | 3.56% | 3.69% | ||||
September 30, 2018 | December 31, 2017 | |||||||
Non-Covered | Total | Non-Covered | Total | |||||
Asset quality ratios | ||||||||
Non-performing loans to total loans (1) (3) | 0.96% | 0.94% | 0.82% | 0.81% | ||||
Non-performing assets to total assets (2) | 0.68% | 0.70% | 0.60% | 0.61% | ||||
Allowance for loan and lease losses to total loans (3) | 0.58% | 0.57% | 0.69% | 0.68% | ||||
Allowance for loan and lease losses to non-performing loans (1) | 60.51% | 60.47% | 84.03% | 83.53% | ||||
Net charge-offs to average loans (5) | 0.21% | 0.21% | 0.38% | 0.38% | ||||
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(1) | We define non-performing loans to include non-accrual loans, and loans, other than ACI loans and government insured residential loans, that are past due 90 days or more and still accruing. Contractually delinquent ACI loans and government insured residential loans on which interest continues to be accreted or accrued are excluded from non-performing loans. | |
(2) | Non-performing assets include non-performing loans, OREO and other repossessed assets. | |
(3) | Total loans include premiums, discounts, and deferred fees and costs. | |
(4) | On a tax-equivalent basis. | |
(5) | Annualized for the three and nine month periods. |
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 | $ | 3,074,888 | |
Less: goodwill and other intangible assets | 77,729 | ||
Tangible stockholders’ equity | $ | 2,997,159 | |
Common shares issued and outstanding | 103,793,325 | ||
Book value per common share | $ | 29.63 | |
Tangible book value per common share | $ | 28.88 | |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181024005186/en/
Source:
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak,
786-313-1698
llunak@bankunited.com