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BankUnited, Inc. Reports 2021 Results

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Jan. 20, 2022-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2021.

"We are pleased with the quarter, with earnings of $1.41 per share, over $1 billion of loan growth, our best loan growth quarter since the second quarter of 2016, over $1 billion in deposit growth and margin expansion of 11 basis points. Our outlook for the Company going into 2022 is optimistic," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended December 31, 2021, the Company reported net income of $125.3 million, or $1.41 per diluted share, compared to $86.9 million or $0.94 per diluted share for the immediately preceding quarter ended September 30, 2021 and $85.7 million, or $0.89 per diluted share, for the quarter ended December 31, 2020.

For the year ended December 31, 2021, the Company reported net income of $415.0 million, or $4.52 per diluted share, compared to $197.9 million, or $2.06 per diluted share, for the year ended December 31, 2020. The return on average stockholders' equity for the year ended December 31, 2021 was 13.3%, while the return on average assets was 1.16%.

Financial Highlights

  • Total loans, excluding the runoff of PPP loans, grew by $1.0 billion for the quarter ended December 31, 2021, our largest loan growth quarter since the second quarter of 2016.
  • The net interest margin, calculated on a tax-equivalent basis, expanded to 2.44% for the quarter ended December 31, 2021 from 2.33% for both the immediately preceding quarter and for the quarter ended December 31, 2020. Net interest income increased by $10.9 million compared to the immediately preceding quarter ended September 30, 2021 and by $12.6 million compared to the quarter ended December 31, 2020.
  • Total deposits increased by $1.3 billion during the quarter ended December 31, 2021. Average non-interest bearing demand deposits grew by $418 million for the quarter ended December 31, 2021, compared to the immediately preceding quarter and by $2.2 billion compared to the quarter ended December 31, 2020. At December 31, 2021, non-interest bearing demand deposits represented 30% of total deposits, compared to 25% of total deposits at December 31, 2020. Non-interest bearing demand deposits declined by $183 million during the quarter ended December 31, 2021.
  • The average cost of total deposits was 0.19% for the quarter ended December 31, 2021 compared to 0.20% for the immediately preceding quarter ended September 30, 2021. The average cost of total deposits was 0.43% for the quarter ended December 31, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.16% at December 31, 2021 from 0.19% at September 30, 2021 and 0.36% at December 31, 2020.
  • Criticized and classified loans continued to decline. During the quarter ended December 31, 2021, total criticized and classified loans declined by $367 million. The ratio of non-performing loans to total loans declined to 0.87% at December 31, 2021 from 1.21% at September 30, 2021. Loans currently under short-term deferral totaled $11 million and loans modified under the CARES Act totaled $194 million for a total of $205 million at December 31, 2021, down from a total of $285 million at September 30, 2021.
  • For the quarter ended December 31, 2021, the Company recorded a provision for credit losses of $0.2 million compared to a recovery of $(11.8) million for the immediately preceding quarter ended September 30, 2021 and a recovery of credit losses of $(1.6) million for the quarter ended December 31, 2020. For the years ended December 31, 2021 and 2020, the provision for (recovery of) credit losses was $(67.1) million and $178.4 million, respectively. Year over year volatility in the provision is related to the expected economic impact of the onset of the COVID-19 pandemic in 2020 and subsequent economic recovery in 2021.
  • As previously reported, during the quarter ended December 31, 2021, the Bank reached a settlement with the Florida Department of Revenue related to certain tax matters for the 2009-2019 tax years and recorded a tax benefit of $43.9 million, net of federal impact. Unrelated to the Florida settlement, the Bank recorded an additional $25.2 million tax benefit related to a reduction in the liability for unrecognized tax benefits arising from expiration of statutes of limitation in the Federal and certain state jurisdictions.
  • The following table details $40.4 million of notable items that impacted income before income taxes for the quarter ended December 31, 2021 (income (expense) in thousands):

Gain on sale of single-family residential loans

$

18,216

 

Discontinuance of cash flow hedges

 

(44,833

)

Special employee bonus

 

(6,809

)

Professional fees related to tax settlement

 

(4,198

)

Impairment of operating lease equipment

 

(2,813

)

 

$

(40,437

)

  • Book value per common share and tangible book value per common share continued to accrete, increasing to $35.47 and $34.56, respectively, at December 31, 2021 from $34.39 and $33.53, respectively, at September 30, 2021 and $32.05 and $31.22, respectively at December 31, 2020.
  • During the quarter ended December 31, 2021, the Company repurchased approximately 4.4 million shares of its common stock for an aggregate purchase price of $181.8 million, at a weighted average price of $41.45 per share.

     

Loans and Leases

A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Residential and other consumer loans

$

8,368,380

 

35.2

%

 

$

7,827,224

 

34.3

%

 

$

6,348,222

 

26.6

%

Multi-family

 

1,154,738

 

4.9

%

 

 

1,181,935

 

5.2

%

 

 

1,639,201

 

6.9

%

Non-owner occupied commercial real estate

 

4,381,610

 

18.4

%

 

 

4,537,078

 

19.9

%

 

 

4,963,273

 

20.8

%

Construction and land

 

165,390

 

0.7

%

 

 

163,988

 

0.7

%

 

 

293,307

 

1.2

%

Owner occupied commercial real estate

 

1,944,658

 

8.2

%

 

 

2,012,376

 

8.8

%

 

 

2,000,770

 

8.4

%

Commercial and industrial

 

4,790,275

 

20.2

%

 

 

4,166,914

 

18.3

%

 

 

4,447,383

 

18.6

%

PPP

 

248,505

 

1.0

%

 

 

332,548

 

1.5

%

 

 

781,811

 

3.3

%

Pinnacle

 

919,641

 

3.9

%

 

 

932,865

 

4.1

%

 

 

1,107,386

 

4.6

%

Bridge - franchise finance

 

342,124

 

1.4

%

 

 

396,589

 

1.7

%

 

 

549,733

 

2.3

%

Bridge - equipment finance

 

357,599

 

1.5

%

 

 

379,446

 

1.7

%

 

 

475,548

 

2.0

%

Mortgage warehouse lending ("MWL")

 

1,092,133

 

4.6

%

 

 

877,006

 

3.8

%

 

 

1,259,408

 

5.3

%

 

$

23,765,053

 

100.0

%

 

$

22,807,969

 

100.0

%

 

$

23,866,042

 

100.0

%

Operating lease equipment, net

$

640,726

 

 

 

$

659,935

 

 

 

$

663,517

 

 

In the aggregate, commercial loans, excluding the runoff of PPP loans, grew by $500 million during the quarter ended December 31, 2021. The largest increase was in commercial and industrial loans, including owner-occupied commercial real estate which grew by $556 million for the quarter, followed by mortgage warehouse lending which grew by $215 million for the quarter. MWL line utilization was 56% at December 31, 2021 compared to 51% at September 30, 2021 and 62% at December 31, 2020. Commercial real estate portfolio segments in the aggregate declined by $181 million. Balances for Pinnacle and Bridge declined by $13 million and $76 million, respectively. Residential and other consumer loans grew by $541 million during the quarter ended December 31, 2021. GNMA early buyout loans grew by $110 million, totaling $2.0 billion at December 31, 2021.

Asset Quality and the Allowance for Credit Losses ("ACL")

The following table presents information about non-performing loans, loans on deferral and CARES Act modifications at December 31, 2021 (in thousands):

 

Non-Performing Loans

 

Currently Under Short-Term Deferral

 

CARES Act Modification

Residential and other consumer (1)

$

28,577

 

$

10,601

 

$

22,264

Commercial:

 

 

 

 

 

CRE by Property Type:

 

 

 

 

 

Retail

 

18,152

 

 

 

 

Hotel

 

18,282

 

 

 

 

14,828

Office

 

814

 

 

 

 

Multi-family

 

10,865

 

 

 

 

7,315

Other

 

7,167

 

 

 

 

Owner occupied commercial real estate

 

20,453

 

 

 

 

15,109

Commercial and industrial

 

68,720

 

 

 

 

106,625

Bridge - franchise finance

 

32,879

 

 

 

 

27,881

Total commercial

 

177,332

 

 

 

 

171,758

Total

$

205,909

 

$

10,601

 

$

194,022

_______________________

(1)

Excludes government insured residential loans.

In the table above, "currently under short-term deferral" refers to loans subject to a 90-day payment deferral at December 31, 2021 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, which expired on January 1, 2022, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act. All of the loans that have rolled off of modification to date have paid off or resumed regular payments.

Non-performing loans totaled $205.9 million or 0.87% of total loans at December 31, 2021, compared to $276.7 million or 1.21% of total loans at September 30, 2021 and $244.5 million or 1.02% of total loans at December 31, 2020. Non-performing loans included $46.1 million, $49.1 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.19% of total loans at December 31, 2021 and 0.22% of total loans at both September 30, 2021 and December 31, 2020.

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Special mention

$

148,593

 

$

153,373

 

$

711,516

Substandard - accruing

 

1,136,378

 

 

 

1,432,801

 

 

 

1,758,654

 

Substandard - non-accruing

 

129,579

 

 

 

227,055

 

 

 

203,758

 

Doubtful

 

47,754

 

 

 

16,447

 

 

 

11,867

 

Total

$

1,462,304

 

 

$

1,829,676

 

 

$

2,685,795

 

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the years ended December 31, 2021 and 2020 (dollars in thousands):

 

ACL

 

ACL to Total
Loans (1)

 

ACL to Non-
Performing Loans

 

Net Charge-offs to
Average Loans

December 31, 2020

$

257,323

 

1.08

%

 

105.26

%

 

0.26

%

September 30, 2021

$

159,615

 

0.70

%

 

57.69

%

 

 

December 31, 2021

$

126,457

 

0.53

%

 

61.41

%

 

0.29

%

_______________________

(1)

 

ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.62%, 0.81% and 1.26% at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

The ACL at December 31, 2021 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in December 2021, economic information provided by additional sources, information about borrower financial condition and collateral values, data reflecting the impact of recent events on individual borrowers and other relevant information.

For the quarter ended December 31, 2021, the Company recorded a provision for credit losses of $0.2 million, which included a provision of $1.1 million related to funded loans offset by recoveries of provision related to unfunded loan commitments and accrued interest receivable. The decline in the ACL for the quarter ended December 31, 2021 was primarily attributable to charge-offs, the substantial majority of which were previously reserved for.

The following table summarizes the activity in the ACL for the periods indicated (in thousands):

 

Three Months Ended December 31,

 

Years Ended December 31,

 

2021

 

2020

 

2021

 

2020

Beginning balance

$

159,615

 

 

$

274,128

 

 

$

257,323

 

 

$

108,671

 

Cumulative effect of adoption of CECL

 

 

 

 

 

 

 

 

 

 

27,305

 

Balance after adoption of CECL

 

159,615

 

 

 

274,128

 

 

 

257,323

 

 

 

135,976

 

Provision (recovery)

 

1,067

 

 

 

1,244

 

 

 

(64,456

)

 

 

182,339

 

Net charge-offs

 

(34,225

)

 

 

(18,049

)

 

 

(66,410

)

 

 

(60,992

)

Ending balance

$

126,457

 

 

$

257,323

 

 

$

126,457

 

 

$

257,323

 

Net interest income

Net interest income for the quarter ended December 31, 2021 was $206.0 million compared to $195.1 million for the immediately preceding quarter ended September 30, 2021 and $193.4 million for the quarter ended December 31, 2020. Interest income increased by $3.5 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter, and decreased by $13.2 million compared to the quarter ended December 31, 2020. Interest expense decreased by $7.4 million compared to the immediately preceding quarter and by $25.9 million compared to the quarter ended December 31, 2020.

The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.11% to 2.44% for the quarter ended December 31, 2021, from 2.33% for the immediately preceding quarter ended September 30, 2021. Factors impacting the net interest margin for the quarter ended December 31, 2021 included:

  • The average rate paid on FHLB and FRB advances decreased to 1.86% for the quarter ended December 31, 2021, from 2.35% for the quarter ended September 30, 2021. This decrease resulted from the termination and maturity of higher cost cash flow hedges and related borrowings during the quarter ended December 31, 2021.
  • The average rate paid on interest bearing deposits decreased to 0.27% for the quarter ended December 31, 2021, from 0.29% for the quarter ended September 30, 2021. This decline reflected continued initiatives taken to lower rates paid on deposits, including the re-pricing of term deposits, partially offset by the issuance of some callable CDs in anticipation of rising rates.
  • The tax-equivalent yield on investment securities increased to 1.54% for the quarter ended December 31, 2021 from 1.49% for the quarter ended September 30, 2021. This increase resulted primarily from slower prepayment speeds on securities purchased at a premium.
  • The tax-equivalent yield on loans increased to 3.50% for the quarter ended December 31, 2021, from 3.45% for the quarter ended September 30, 2021.

     

Non-interest income and Non-interest expense

Non-interest income totaled $45.6 million for the quarter ended December 31, 2021 compared to $25.5 million for the immediately preceding quarter ended September 30, 2021 and $35.3 million for the quarter ended December 31, 2020. The main reason for the increase in non-interest income for the quarter ended December 31, 2021 compared to the immediately preceding quarter was an increase in the gain on sale of loans. During the quarter, the Company sold a portfolio of single-family residential loans for a gain of $18.2 million.

Non-interest expense totaled $187.9 million for the quarter ended December 31, 2021 compared to $118.0 million for the immediately preceding quarter ended September 30, 2021 and $123.3 million for the quarter ended December 31, 2020. Non-interest expense totaled $547.6 million and $457.2 million for the year ended December 31, 2021 and 2020, respectively. The following table details notable items that impacted non-interest expense for the quarter ended December 31, 2021 (in thousands):

Discontinuance of cash flow hedges

$

(44,833

)

Special employee bonus

 

(6,809

)

Professional fees related to tax settlement

 

(4,198

)

Impairment of operating lease equipment

 

(2,813

)

 

$

(58,653

)

  • Employee compensation and benefits increased by $13.3 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter. The Company paid a special bonus in the fourth quarter to substantially all of its employees, in recognition of their hard work and efforts in the challenging environment we have faced over the past two years. Employees, regardless of their position in the organization, shared equally in the bonus payout, which totaled $6.8 million. Additionally, there was an increase of $4.6 million in variable compensation accruals for both incentives and regular annual discretionary bonuses in the fourth quarter.

  • Professional fees increased by $5.7 million for the quarter ended December 31, 2021 compared to the immediately preceding quarter. The increase is primarily a result of $4.2 million related to the tax settlement with the Florida Department of Revenue discussed above.
  • A loss on discontinuance of cash flow hedges totaling $44.8 million resulted from the termination of $401 million notional of pay fixed interest rate swaps at a weighted average pay rate of 3.24% during the quarter ended December 31, 2021.
  • Depreciation and impairment of operating lease equipment included $2.8 million resulting from impairment charges related to certain sand cars in the operating lease equipment portfolio. 

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, January 20, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.

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. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 1618956. A replay of the call will be available from 12:00 p.m. ET on January 20th through 11:59 p.m. ET on January 27th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 1618956. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited, Inc.

BankUnited, Inc., with total assets of $35.8 billion at December 31, 2021, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 63 banking centers in 13 Florida counties and 4 banking centers in the New York metropolitan area at December 31, 2021.

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,” "forecasts" 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, including as impacted by the COVID-19 pandemic. 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, 2020 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are 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)

 

 

December 31,
2021

 

December 31,
2020

ASSETS

 

 

 

Cash and due from banks:

 

 

 

Non-interest bearing

$

19,143

 

 

$

20,233

 

Interest bearing

 

295,714

 

 

 

377,483

 

Cash and cash equivalents

 

314,857

 

 

 

397,716

 

Investment securities (including securities recorded at fair value of $10,054,198 and $9,166,683)

 

10,064,198

 

 

 

9,176,683

 

Non-marketable equity securities

 

135,859

 

 

 

195,865

 

Loans held for sale

 

 

 

 

24,676

 

Loans

 

23,765,053

 

 

 

23,866,042

 

Allowance for credit losses

 

(126,457

)

 

 

(257,323

)

Loans, net

 

23,638,596

 

 

 

23,608,719

 

Bank owned life insurance

 

309,477

 

 

 

294,629

 

Operating lease equipment, net

 

640,726

 

 

 

663,517

 

Goodwill

 

77,637

 

 

 

77,637

 

Other assets

 

634,046

 

 

 

571,051

 

Total assets

$

35,815,396

 

 

$

35,010,493

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Liabilities:

 

 

 

Demand deposits:

 

 

 

Non-interest bearing

$

8,975,621

 

 

$

7,008,838

 

Interest bearing

 

3,709,493

 

 

 

3,020,039

 

Savings and money market

 

13,368,745

 

 

 

12,659,740

 

Time

 

3,384,243

 

 

 

4,807,199

 

Total deposits

 

29,438,102

 

 

 

27,495,816

 

Federal funds purchased

 

199,000

 

 

 

180,000

 

FHLB advances

 

1,905,000

 

 

 

3,122,999

 

Notes and other borrowings

 

721,416

 

 

 

722,495

 

Other liabilities

 

514,117

 

 

 

506,171

 

Total liabilities

 

32,777,635

 

 

 

32,027,481

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 85,647,986 and 93,067,500 shares issued and outstanding

 

856

 

 

 

931

 

Paid-in capital

 

707,503

 

 

 

1,017,518

 

Retained earnings

 

2,345,342

 

 

 

2,013,715

 

Accumulated other comprehensive loss

 

(15,940

)

 

 

(49,152

)

Total stockholders' equity

 

3,037,761

 

 

 

2,983,012

 

Total liabilities and stockholders' equity

$

35,815,396

 

 

$

35,010,493

 

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2021

 

2021

 

2020

 

2021

 

2020

Interest income:

 

 

 

 

 

 

 

 

 

Loans

$

198,275

 

 

$

194,689

 

 

$

207,232

 

 

$

800,819

 

 

$

864,175

 

Investment securities

 

38,201

 

 

 

38,243

 

 

 

42,260

 

 

 

152,619

 

 

 

193,856

 

Other

 

1,397

 

 

 

1,413

 

 

 

1,628

 

 

 

6,010

 

 

 

9,578

 

Total interest income

 

237,873

 

 

 

234,345

 

 

 

251,120

 

 

 

959,448

 

 

 

1,067,609

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

13,631

 

 

 

14,273

 

 

 

29,290

 

 

 

67,596

 

 

 

199,980

 

Borrowings

 

18,227

 

 

 

24,950

 

 

 

28,464

 

 

 

96,164

 

 

 

115,871

 

Total interest expense

 

31,858

 

 

 

39,223

 

 

 

57,754

 

 

 

163,760

 

 

 

315,851

 

Net interest income before provision for credit losses

 

206,015

 

 

 

195,122

 

 

 

193,366

 

 

 

795,688

 

 

 

751,758

 

Provision for (recovery of) credit losses

 

246

 

 

 

(11,842

)

 

 

(1,643

)

 

 

(67,119

)

 

 

178,431

 

Net interest income after provision for credit losses

 

205,769

 

 

 

206,964

 

 

 

195,009

 

 

 

862,807

 

 

 

573,327

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Deposit service charges and fees

 

5,815

 

 

 

5,553

 

 

 

4,569

 

 

 

21,685

 

 

 

16,496

 

Gain on sale of loans, net

 

19,003

 

 

 

1,403

 

 

 

2,425

 

 

 

24,394

 

 

 

13,170

 

Gain (loss) on investment securities, net

 

590

 

 

 

(664

)

 

 

7,203

 

 

 

6,446

 

 

 

17,767

 

Lease financing

 

14,041

 

 

 

13,212

 

 

 

13,547

 

 

 

53,263

 

 

 

59,112

 

Other non-interest income

 

6,173

 

 

 

5,974

 

 

 

7,536

 

 

 

28,365

 

 

 

26,676

 

Total non-interest income

 

45,622

 

 

 

25,478

 

 

 

35,280

 

 

 

134,153

 

 

 

133,221

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

70,561

 

 

 

57,224

 

 

 

60,944

 

 

 

243,532

 

 

 

217,156

 

Occupancy and equipment

 

12,817

 

 

 

11,760

 

 

 

11,797

 

 

 

47,944

 

 

 

48,237

 

Deposit insurance expense

 

3,471

 

 

 

3,552

 

 

 

6,759

 

 

 

18,695

 

 

 

21,854

 

Professional fees

 

8,023

 

 

 

2,312

 

 

 

2,937

 

 

 

14,386

 

 

 

11,708

 

Technology and telecommunications

 

18,221

 

 

 

16,687

 

 

 

16,052

 

 

 

67,500

 

 

 

58,108

 

Discontinuance of cash flow hedges

 

44,833

 

 

 

 

 

 

 

 

 

44,833

 

 

 

 

Depreciation and impairment of operating lease equipment

 

15,769

 

 

 

12,944

 

 

 

12,270

 

 

 

53,764

 

 

 

49,407

 

Other non-interest expense

 

14,165

 

 

 

13,563

 

 

 

12,565

 

 

 

56,921

 

 

 

50,719

 

Total non-interest expense

 

187,860

 

 

 

118,042

 

 

 

123,324

 

 

 

547,575

 

 

 

457,189

 

Income before income taxes

 

63,531

 

 

 

114,400

 

 

 

106,965

 

 

 

449,385

 

 

 

249,359

 

Provision (benefit) for income taxes

 

(61,724

)

 

 

27,459

 

 

 

21,228

 

 

 

34,401

 

 

 

51,506

 

Net income

$

125,255

 

 

$

86,941

 

 

$

85,737

 

 

$

414,984

 

 

$

197,853

 

Earnings per common share, basic

$

1.42

 

 

$

0.94

 

 

$

0.89

 

 

$

4.52

 

 

$

2.06

 

Earnings per common share, diluted

$

1.41

 

 

$

0.94

 

 

$

0.89

 

 

$

4.52

 

 

$

2.06

 

 

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

 

 

Three Months Ended
December 31, 2021

 

Three Months Ended
September 30, 2021

 

Three Months Ended
December 31, 2020

 

 

 

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

22,919,535

 

 

$

201,345

 

3.50

%

 

$

22,879,654

 

 

$

197,995

 

3.45

%

 

$

23,706,859

 

 

$

210,896

 

3.55

%

Investment securities (3)

 

10,113,026

 

 

 

38,889

 

 

1.54

%

 

 

10,452,255

 

 

 

38,939

 

 

1.49

%

 

 

9,446,389

 

 

 

42,966

 

 

1.82

%

Other interest earning assets

 

1,184,056

 

 

 

1,397

 

 

0.47

%

 

 

750,700

 

 

 

1,413

 

 

0.75

%

 

 

726,273

 

 

 

1,628

 

 

0.89

%

Total interest earning assets

 

34,216,617

 

 

 

241,631

 

 

2.81

%

 

 

34,082,609

 

 

 

238,347

 

 

2.79

%

 

 

33,879,521

 

 

 

255,490

 

 

3.01

%

Allowance for credit losses

 

(149,319

)

 

 

 

 

 

 

(171,381

)

 

 

 

 

 

 

(280,243

)

 

 

 

 

Non-interest earning assets

 

1,767,850

 

 

 

 

 

 

 

1,856,608

 

 

 

 

 

 

 

1,817,476

 

 

 

 

 

Total assets

$

35,835,148

 

 

 

 

 

 

$

35,767,836

 

 

 

 

 

 

$

35,416,754

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

3,058,355

 

 

$

1,481

 

 

0.19

%

 

$

3,038,038

 

 

$

1,701

 

 

0.22

%

 

$

2,903,300

 

 

$

3,637

 

 

0.50

%

Savings and money market deposits

 

13,460,084

 

 

 

9,619

 

 

0.28

%

 

 

13,554,572

 

 

 

10,029

 

 

0.29

%

 

 

11,839,631

 

 

 

14,517

 

 

0.49

%

Time deposits

 

3,399,302

 

 

 

2,531

 

 

0.30

%

 

 

2,866,746

 

 

 

2,543

 

 

0.35

%

 

 

5,360,630

 

 

 

11,136

 

 

0.83

%

Total interest bearing deposits

 

19,917,741

 

 

 

13,631

 

 

0.27

%

 

 

19,459,356

 

 

 

14,273

 

 

0.29

%

 

 

20,103,561

 

 

 

29,290

 

 

0.58

%

Federal funds purchased

 

56,793

 

 

 

13

 

 

0.09

%

 

 

70,054

 

 

 

15

 

 

0.08

%

 

 

20,707

 

 

 

6

 

 

0.12

%

FHLB and PPPLF borrowings

 

1,909,450

 

 

 

8,957

 

 

1.86

%

 

 

2,647,314

 

 

 

15,678

 

 

2.35

%

 

 

3,698,666

 

 

 

19,207

 

 

2.07

%

Notes and other borrowings

 

721,525

 

 

 

9,257

 

 

5.13

%

 

 

721,638

 

 

 

9,257

 

 

5.13

%

 

 

722,581

 

 

 

9,251

 

 

5.12

%

Total interest bearing liabilities

 

22,605,509

 

 

 

31,858

 

 

0.56

%

 

 

22,898,362

 

 

 

39,223

 

 

0.68

%

 

 

24,545,515

 

 

 

57,754

 

 

0.94

%

Non-interest bearing demand deposits

 

9,330,805

 

 

 

 

 

 

 

8,912,960

 

 

 

 

 

 

 

7,152,967

 

 

 

 

 

Other non-interest bearing liabilities

 

785,254

 

 

 

 

 

 

 

752,774

 

 

 

 

 

 

 

772,277

 

 

 

 

 

Total liabilities

 

32,721,568

 

 

 

 

 

 

 

32,564,096

 

 

 

 

 

 

 

32,470,759

 

 

 

 

 

Stockholders' equity

 

3,113,580

 

 

 

 

 

 

 

3,203,740

 

 

 

 

 

 

 

2,945,995

 

 

 

 

 

Total liabilities and stockholders' equity

$

35,835,148

 

 

 

 

 

 

$

35,767,836

 

 

 

 

 

 

$

35,416,754

 

 

 

 

 

Net interest income

 

 

$

209,773

 

 

 

 

 

 

$

199,124

 

 

 

 

 

 

$

197,736

 

 

 

Interest rate spread

 

 

 

 

2.25

%

 

 

 

 

 

2.11

%

 

 

 

 

 

2.07

%

Net interest margin

 

 

 

 

2.44

%

 

 

 

 

 

2.33

%

 

 

 

 

 

2.33

%

_______________________

(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)

 

 

Years Ended December 31,

 

2021

 

2020

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans

$

23,083,973

 

 

$

814,101

 

3.53

%

 

$

23,385,832

 

 

$

879,082

 

3.76

%

Investment securities (2)

 

9,873,178

 

 

 

155,353

 

 

1.57

%

 

 

8,739,023

 

 

 

196,954

 

 

2.25

%

Other interest earning assets

 

1,093,869

 

 

 

6,010

 

 

0.55

%

 

 

672,634

 

 

 

9,578

 

 

1.42

%

Total interest earning assets

 

34,051,020

 

 

 

975,464

 

 

2.86

%

 

 

32,797,489

 

 

 

1,085,614

 

 

3.31

%

Allowance for credit losses

 

(197,212

)

 

 

 

 

 

 

(236,704

)

 

 

 

 

Non-interest earning assets

 

1,770,685

 

 

 

 

 

 

 

1,860,322

 

 

 

 

 

Total assets

$

35,624,493

 

 

 

 

 

 

$

34,421,107

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

3,027,649

 

 

 

8,550

 

 

0.28

%

 

$

2,582,951

 

 

 

19,445

 

 

0.75

%

Savings and money market deposits

 

13,339,651

 

 

 

43,082

 

 

0.32

%

 

 

10,843,894

 

 

 

85,572

 

 

0.79

%

Time deposits

 

3,490,082

 

 

 

15,964

 

 

0.46

%

 

 

6,617,939

 

 

 

94,963

 

 

1.43

%

Total interest bearing deposits

 

19,857,382

 

 

 

67,596

 

 

0.34

%

 

 

20,044,784

 

 

 

199,980

 

 

1.00

%

Federal funds purchased

 

33,945

 

 

 

30

 

 

0.09

%

 

 

71,858

 

 

 

418

 

 

0.58

%

FHLB and PPPLF borrowings

 

2,622,723

 

 

 

59,116

 

 

2.25

%

 

 

4,295,882

 

 

 

85,491

 

 

1.99

%

Notes and other borrowings

 

721,803

 

 

 

37,018

 

 

5.13

%

 

 

592,521

 

 

 

29,962

 

 

5.06

%

Total interest bearing liabilities

 

23,235,853

 

 

 

163,760

 

 

0.70

%

 

 

25,005,045

 

 

 

315,851

 

 

1.26

%

Non-interest bearing demand deposits

 

8,480,964

 

 

 

 

 

 

 

5,760,309

 

 

 

 

 

Other non-interest bearing liabilities

 

784,031

 

 

 

 

 

 

 

786,337

 

 

 

 

 

Total liabilities

 

32,500,848

 

 

 

 

 

 

 

31,551,691

 

 

 

 

 

Stockholders' equity

 

3,123,645

 

 

 

 

 

 

 

2,869,416

 

 

 

 

 

Total liabilities and stockholders' equity

$

35,624,493

 

 

 

 

 

 

$

34,421,107

 

 

 

 

 

Net interest income

 

 

$

811,704

 

 

 

 

 

 

$

769,763

 

 

 

Interest rate spread

 

 

 

 

2.16

%

 

 

 

 

 

2.05

%

Net interest margin

 

 

 

 

2.38

%

 

 

 

 

 

2.35

%

_______________________

(1)

On a tax-equivalent basis where applicable

(2)

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 December 31,

 

Years Ended December 31,

2021

 

2020

 

2021

 

2020

Basic earnings per common share:

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

Net income

$

125,255

 

 

$

85,737

 

 

$

414,984

 

 

$

197,853

 

Distributed and undistributed earnings allocated to participating securities

 

(2,059

)

 

 

(4,015

)

 

 

(5,991

)

 

 

(8,882

)

Income allocated to common stockholders for basic earnings per common share

$

123,196

 

 

$

81,722

 

 

$

408,993

 

 

$

188,971

 

Denominator:

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

88,123,835

 

 

 

92,725,905

 

 

 

91,612,243

 

 

 

92,869,736

 

Less average unvested stock awards

 

(1,193,180

)

 

 

(1,160,984

)

 

 

(1,212,055

)

 

 

(1,163,480

)

Weighted average shares for basic earnings per common share

 

86,930,655

 

 

 

91,564,921

 

 

 

90,400,188

 

 

 

91,706,256

 

Basic earnings per common share

$

1.42

 

 

$

0.89

 

 

$

4.52

 

 

$

2.06

 

Diluted earnings per common share:

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

Income allocated to common stockholders for basic earnings per common share

$

123,196

 

 

$

81,722

 

 

$

408,993

 

 

$

188,971

 

Adjustment for earnings reallocated from participating securities

 

(234

)

 

 

(67

)

 

 

(585

)

 

 

(123

)

Income used in calculating diluted earnings per common share

$

122,962

 

 

$

81,655

 

 

$

408,408

 

 

$

188,848

 

Denominator:

 

 

 

 

 

 

 

Weighted average shares for basic earnings per common share

 

86,930,655

 

 

 

91,564,921

 

 

 

90,400,188

 

 

 

91,706,256

 

Dilutive effect of stock options

 

 

 

 

20,179

 

 

 

134

 

 

 

24,608

 

Weighted average shares for diluted earnings per common share

 

86,930,655

 

 

 

91,585,100

 

 

 

90,400,322

 

 

 

91,730,864

 

Diluted earnings per common share

$

1.41

 

 

$

0.89

 

 

$

4.52

 

 

$

2.06

 

 

BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

2021

 

2020

 

2021

 

2020

Financial ratios (4)

 

 

 

 

 

 

 

Return on average assets

1.39

%

 

0.96

%

 

1.16

%

 

0.57

%

Return on average stockholders’ equity

16.0

%

 

11.6

%

 

13.3

%

 

6.9

%

Net interest margin (3)

2.44

%

 

2.33

%

 

2.38

%

 

2.35

%

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Asset quality ratios

 

 

 

 

 

Non-performing loans to total loans (1)(5)

0.87

%

 

1.21

%

 

1.02

%

Non-performing assets to total assets (2)(5)

0.58

%

 

0.80

%

 

0.71

%

Allowance for credit losses to total loans

0.53

%

 

0.70

%

 

1.08

%

Allowance for credit losses to non-performing loans (1)(5)

61.41

%

 

57.69

%

 

105.26

%

Net charge-offs to average loans

0.29

%

 

 

 

0.26

%

_______________________

(1)

 

We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.

(2)

Non-performing assets include non-performing loans, OREO and other repossessed assets.

(3)

On a tax-equivalent basis.

(4)

Annualized for the three month periods.

(5)

Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets at December 31, 2020.

 

 

December 31, 2021

 

December 31, 2020

 

Required to be
Considered Well
Capitalized

 

BankUnited, Inc.

 

BankUnited, N.A.

 

BankUnited, Inc.

 

BankUnited, N.A.

 

Capital ratios

 

 

 

 

 

 

 

 

 

Tier 1 leverage

8.4

%

 

9.6

%

 

8.6

%

 

9.5

%

 

5.0

%

Common Equity Tier 1 ("CET1") risk-based capital

12.6

%

 

14.5

%

 

12.6

%

 

13.9

%

 

6.5

%

Total risk-based capital

14.3

%

 

14.9

%

 

14.7

%

 

14.8

%

 

10.0

%

On a fully-phased in basis with respect to the adoption of CECL, the Company's and the Bank's CET1 risk-based capital ratios would have been 12.5% and 14.4%, respectively, at December 31, 2021.

Non-GAAP Financial Measures

ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands):

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Total loans (GAAP)

$

23,765,053

 

 

$

22,807,969

 

 

$

23,866,042

 

Less: Government insured residential loans

 

2,023,221

 

 

 

1,913,497

 

 

 

1,419,074

 

Less: PPP loans

 

248,505

 

 

 

332,548

 

 

 

781,811

 

Less: MWL

 

1,092,133

 

 

 

877,006

 

 

 

1,259,408

 

Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)

$

20,401,194

 

 

$

19,684,918

 

 

$

20,405,749

 

 

 

 

 

 

 

ACL

$

126,457

 

 

$

159,615

 

 

$

257,323

 

 

 

 

 

 

 

ACL to total loans (GAAP)

 

0.53

%

 

 

0.70

%

 

 

1.08

%

 

 

 

 

 

 

ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP)

 

0.62

%

 

 

0.81

%

 

 

1.26

%

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 basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. 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 the dates indicated (in thousands except share and per share data):

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Total stockholders’ equity (GAAP)

$

3,037,761

 

$

3,096,674

 

$

2,983,012

Less: goodwill

 

77,637

 

 

 

77,637

 

 

 

77,637

 

Tangible stockholders’ equity (non-GAAP)

$

2,960,124

 

 

$

3,019,037

 

 

$

2,905,375

 

 

 

 

 

 

 

Common shares issued and outstanding

 

85,647,986

 

 

 

90,049,326

 

 

 

93,067,500

 

 

 

 

 

 

 

Book value per common share (GAAP)

$

35.47

 

 

$

34.39

 

 

$

32.05

 

 

 

 

 

 

 

Tangible book value per common share (non-GAAP)

$

34.56

 

 

$

33.53

 

 

$

31.22

 

 

BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
llunak@bankunited.com

Source: BankUnited, Inc.