"We finished the year with continued improvement on both sides of our balance sheet, expanding margin and strong credit performance. We are benefiting from a strong economy in our primary market and are looking forward to 2024 with great optimism," said
For the quarter ended
Quarterly Highlights
-
Two notable items totaling
$41.8 million impacted income before income taxes for the quarter endedDecember 31, 2023 (in thousands):
|
|
$ |
35,356 |
|
|
Loss on sale of operating lease equipment |
|
6,479 |
|
|
|
$ |
41,835 |
The loss on sale of operating lease equipment of
-
We continued to execute on near-term strategic priorities this quarter:
- The net interest margin, calculated on a tax-equivalent basis, expanded this quarter to 2.60% from 2.56% for the immediately preceding quarter.
-
Non-brokered deposits grew by
$604 million for the quarter endedDecember 31, 2023 . Total deposits grew by$426 million . -
Non-interest bearing deposits declined by
$521 million for the quarter, to 26% of total deposits atDecember 31, 2023 , from 28% atSeptember 30, 2023 . On an average basis, non-interest bearing deposits were relatively flat to the prior quarter, declining by only$28.5 million . Most of the period-end decline was attributable to quarter-end outflows related to seasonality in the residential real estate sector, impacting our title solutions vertical and other mortgage related deposits. -
Residential loans declined by
$172 million for the quarter, while our core C&I and commercial real estate portfolios grew by a total of$476 million . SinceDecember 31, 2022 , residential loans have declined by$692 million . -
The amortized cost of the investment securities portfolio declined by
$106 million during the quarter endedDecember 31, 2023 and has declined by$959 million sinceDecember 31, 2022 . -
Wholesale funding, including FHLB advances and brokered deposits, declined by
$228 million for the quarter. We have paid down FHLB advances by$2.4 billion sinceMarch 31, 2023 . -
Liquidity remains ample. Total same day available liquidity was
$13.6 billion , the available liquidity to uninsured, uncollateralized deposits ratio was 152% and an estimated 66% of our deposits were insured or collateralized atDecember 31, 2023 . -
Our capital position is robust. At
December 31, 2023 , CET1 was 11.4% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.0% atDecember 31, 2023 . The ratio of tangible common equity/tangible assets increased to 7.0% atDecember 31, 2023 .
-
For the quarter ended
December 31, 2023 , the provision for credit losses was$19.3 million compared to$33.0 million for the immediately preceding quarter. The ratio of the ACL to total loans increased to 0.82% atDecember 31, 2023 , from 0.80% atSeptember 30, 2023 . -
The net charge-off ratio for the year ended
December 31, 2023 was 0.09%. NPAs remained low, totaling$130.6 million atDecember 31, 2023 , down from$140.5 million atSeptember 30, 2023 . The NPA ratio atDecember 31, 2023 declined to 0.37%, including 0.12% related to the guaranteed portion of non-performing SBA loans, from 0.40%, including 0.11% related to the guaranteed portion of non-performing SBA loans atSeptember 30, 2023 . -
As expected in the current macro-environment, the average cost of total deposits increased to 2.96% for the quarter ended
December 31, 2023 from 2.74% for the immediately preceding quarter. This increase of 0.22% was smaller than the 0.28% increase in the cost of deposits for the quarter endedSeptember 30, 2023 , continuing the trend of a declining rate of increase in deposit costs. The yield on average interest earning assets increased to 5.70% for the quarter endedDecember 31, 2023 from 5.52% for the immediately preceding quarter. -
Our commercial real estate exposure is modest. Commercial real estate loans totaled 23.6% of loans at
December 31, 2023 , representing 169% of the Bank's total risk based capital. AtDecember 31, 2023 , the weighted average LTV of the CRE portfolio was 56.0% and the weighted average DSCR was 1.80. 58% of the portfolio was secured by collateral properties located inFlorida and 25% was secured by properties in theNew York tri-state area. -
We remain committed to keeping the duration of our securities portfolio short; the duration of the available for sale securities portfolio was 1.96 at
December 31, 2023 . Held to maturity securities were not significant. -
The net unrealized pre-tax loss on the securities portfolio improved by
$109 million for the quarter endedDecember 31, 2023 , now representing 6% of amortized cost. AOCI improved by$50 million . -
Book value and tangible book value per common share continued to grow, to
$34.66 and$33.62 , respectively, atDecember 31, 2023 , compared to$33.92 and$32.88 , respectively, atSeptember 30, 2023 and$32.19 and$31.16 , respectively, atDecember 31, 2022 .
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
|
|
|
|
|
|
|
||||||||||||
|
Residential |
$ |
8,209,027 |
|
33.3 |
% |
|
$ |
8,380,568 |
|
34.4 |
% |
|
$ |
8,900,714 |
|
35.7 |
% |
|
Non-owner occupied commercial real estate |
|
5,323,241 |
|
21.6 |
% |
|
|
5,296,784 |
|
21.7 |
% |
|
|
5,405,597 |
|
21.7 |
% |
|
Construction and land |
|
495,992 |
|
2.0 |
% |
|
|
445,273 |
|
1.8 |
% |
|
|
294,360 |
|
1.2 |
% |
|
Owner occupied commercial real estate |
|
1,935,743 |
|
7.9 |
% |
|
|
1,851,246 |
|
7.6 |
% |
|
|
1,890,813 |
|
7.6 |
% |
|
Commercial and industrial |
|
6,971,981 |
|
28.3 |
% |
|
|
6,658,010 |
|
27.4 |
% |
|
|
6,417,721 |
|
25.9 |
% |
|
Pinnacle - municipal finance |
|
884,690 |
|
3.6 |
% |
|
|
900,199 |
|
3.7 |
% |
|
|
912,122 |
|
3.7 |
% |
|
Franchise finance |
|
182,408 |
|
0.7 |
% |
|
|
196,745 |
|
0.8 |
% |
|
|
253,774 |
|
1.0 |
% |
|
Equipment finance |
|
197,939 |
|
0.8 |
% |
|
|
219,874 |
|
0.9 |
% |
|
|
286,147 |
|
1.1 |
% |
|
Mortgage warehouse lending ("MWL") |
|
432,663 |
|
1.8 |
% |
|
|
407,577 |
|
1.7 |
% |
|
|
524,740 |
|
2.1 |
% |
|
|
$ |
24,633,684 |
|
100.0 |
% |
|
$ |
24,356,276 |
|
100.0 |
% |
|
$ |
24,885,988 |
|
100.0 |
% |
Consistent with our balance sheet strategy, for the quarter ended
Asset Quality and the Allowance for Credit Losses ("ACL")
The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended
|
|
ACL |
|
ACL to Total Loans |
|
ACL to Non- Performing Loans |
|
Net Charge-offs to Average Loans (1) |
||||
|
|
$ |
147,946 |
|
0.59 |
% |
|
140.88 |
% |
|
0.22 |
% |
|
|
$ |
196,063 |
|
0.80 |
% |
|
143.22 |
% |
|
0.07 |
% |
|
|
$ |
202,689 |
|
0.82 |
% |
|
159.54 |
% |
|
0.09 |
% |
____________
(1) Annualized for the nine months ended
The ACL at
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Beginning balance |
$ |
196,063 |
|
|
$ |
130,671 |
|
|
$ |
147,946 |
|
|
$ |
126,457 |
|
|
Impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
N/A |
|
|
|
N/A |
|
|
|
(1,794 |
) |
|
|
N/A |
|
|
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
196,063 |
|
|
|
130,671 |
|
|
|
146,152 |
|
|
|
126,457 |
|
|
Provision |
|
16,257 |
|
|
|
40,408 |
|
|
|
78,924 |
|
|
|
73,814 |
|
|
Net charge-offs |
|
(9,631 |
) |
|
|
(23,133 |
) |
|
|
(22,387 |
) |
|
|
(52,325 |
) |
|
Ending balance |
$ |
202,689 |
|
|
$ |
147,946 |
|
|
$ |
202,689 |
|
|
$ |
147,946 |
|
Non-performing loans totaled
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
|
|
|
|
|
|
|
|||
|
Special mention |
$ |
319,905 |
|
$ |
341,999 |
|
$ |
51,433 |
|
Substandard - accruing |
|
711,266 |
|
|
534,336 |
|
|
605,965 |
|
Substandard - non-accruing |
|
86,903 |
|
|
96,248 |
|
|
75,125 |
|
Doubtful |
|
19,035 |
|
|
19,344 |
|
|
7,990 |
|
Total |
$ |
1,137,109 |
|
$ |
991,927 |
|
$ |
740,513 |
The increase in the substandard accruing category for the quarter ended
Net Interest Income
Net interest income for the quarter ended
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.04% to 2.60% for the quarter ended
-
The tax-equivalent yield on loans increased to 5.69% for the quarter ended
December 31, 2023 , from 5.54% for the quarter endedSeptember 30, 2023 . This increase reflects the origination of new loans at higher rates, re-positioning of the portfolio and to a lesser extent, the resetting of variable rate loans to higher coupon rates. -
The tax-equivalent yield on investment securities increased to 5.73% for the quarter ended
December 31, 2023 , from 5.48% for the quarter endedSeptember 30, 2023 . Factors leading to this increase included the reset of coupon rates on variable rate securities and retrospective accounting adjustments related to prepayment speeds on certain securities. -
The average cost of interest bearing deposits increased to 4.04% for the quarter ended
December 31, 2023 from 3.76% for the quarter endedSeptember 30, 2023 , a continuing response to the higher interest rate environment. - The reduction in the proportion of total funding comprised of more expensive wholesale funding also contributed to the increase in the net interest margin.
Non-interest income and Non-interest expense
Non-interest income totaled
Non-interest expense totaled
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. 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. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BI50a5352f746b4dc890465ca3d32e6db9. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance.
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "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 limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as but not limited to adverse events or conditions impacting the financial services industry. 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
|
|
|||||||||||
|
CONSOLIDATED BALANCE SHEETS - UNAUDITED |
|||||||||||
|
(In thousands, except share and per share data) |
|||||||||||
|
|
|
|
|
|
|
||||||
|
ASSETS |
|
|
|
|
|
||||||
|
Cash and due from banks: |
|
|
|
|
|
||||||
|
Non-interest bearing |
$ |
14,945 |
|
|
$ |
12,391 |
|
|
$ |
16,068 |
|
|
Interest bearing |
|
573,338 |
|
|
|
379,494 |
|
|
|
556,579 |
|
|
Cash and cash equivalents |
|
588,283 |
|
|
|
391,885 |
|
|
|
572,647 |
|
|
Investment securities (including securities reported at fair value of |
|
8,877,354 |
|
|
|
8,886,484 |
|
|
|
9,755,327 |
|
|
Non-marketable equity securities |
|
310,084 |
|
|
|
312,159 |
|
|
|
294,172 |
|
|
Loans |
|
24,633,684 |
|
|
|
24,356,276 |
|
|
|
24,885,988 |
|
|
Allowance for credit losses |
|
(202,689 |
) |
|
|
(196,063 |
) |
|
|
(147,946 |
) |
|
Loans, net |
|
24,430,995 |
|
|
|
24,160,213 |
|
|
|
24,738,042 |
|
|
Bank owned life insurance |
|
318,459 |
|
|
|
319,808 |
|
|
|
308,212 |
|
|
Operating lease equipment, net |
|
371,909 |
|
|
|
460,146 |
|
|
|
539,799 |
|
|
|
|
77,637 |
|
|
|
77,637 |
|
|
|
77,637 |
|
|
Other assets |
|
786,886 |
|
|
|
781,332 |
|
|
|
740,876 |
|
|
Total assets |
$ |
35,761,607 |
|
|
$ |
35,389,664 |
|
|
$ |
37,026,712 |
|
|
|
|
|
|
|
|
||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||||||
|
Liabilities: |
|
|
|
|
|
||||||
|
Demand deposits: |
|
|
|
|
|
||||||
|
Non-interest bearing |
$ |
6,835,236 |
|
|
$ |
7,356,523 |
|
|
$ |
8,037,848 |
|
|
Interest bearing |
|
3,403,539 |
|
|
|
3,290,391 |
|
|
|
2,142,067 |
|
|
Savings and money market |
|
11,135,708 |
|
|
|
10,276,071 |
|
|
|
13,061,341 |
|
|
Time |
|
5,163,995 |
|
|
|
5,189,681 |
|
|
|
4,268,078 |
|
|
Total deposits |
|
26,538,478 |
|
|
|
26,112,666 |
|
|
|
27,509,334 |
|
|
Federal funds purchased |
|
— |
|
|
|
— |
|
|
|
190,000 |
|
|
FHLB advances |
|
5,115,000 |
|
|
|
5,165,000 |
|
|
|
5,420,000 |
|
|
Notes and other borrowings |
|
708,973 |
|
|
|
715,197 |
|
|
|
720,923 |
|
|
Other liabilities |
|
821,235 |
|
|
|
872,731 |
|
|
|
750,474 |
|
|
Total liabilities |
|
33,183,686 |
|
|
|
32,865,594 |
|
|
|
34,590,731 |
|
|
|
|
|
|
|
|
||||||
|
Commitments and contingencies |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
Stockholders' equity: |
|
|
|
|
|
||||||
|
Common stock, par value |
|
744 |
|
|
|
744 |
|
|
|
757 |
|
|
Paid-in capital |
|
283,642 |
|
|
|
279,672 |
|
|
|
321,729 |
|
|
Retained earnings |
|
2,650,956 |
|
|
|
2,650,850 |
|
|
|
2,551,400 |
|
|
Accumulated other comprehensive loss |
|
(357,421 |
) |
|
|
(407,196 |
) |
|
|
(437,905 |
) |
|
Total stockholders' equity |
|
2,577,921 |
|
|
|
2,524,070 |
|
|
|
2,435,981 |
|
|
Total liabilities and stockholders' equity |
$ |
35,761,607 |
|
|
$ |
35,389,664 |
|
|
$ |
37,026,712 |
|
|
|
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
||||||||||||||||
|
(In thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|||||||
|
Loans |
$ |
346,255 |
|
$ |
337,014 |
|
$ |
288,973 |
|
$ |
1,318,217 |
|
|
$ |
934,642 |
|
|
Investment securities |
|
125,993 |
|
|
122,857 |
|
|
105,172 |
|
|
488,212 |
|
|
|
280,100 |
|
|
Other |
|
10,957 |
|
|
10,668 |
|
|
7,345 |
|
|
51,152 |
|
|
|
15,709 |
|
|
Total interest income |
|
483,205 |
|
|
470,539 |
|
|
401,490 |
|
|
1,857,581 |
|
|
|
1,230,451 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||
|
Deposits |
|
192,833 |
|
|
176,974 |
|
|
94,403 |
|
|
660,305 |
|
|
|
179,972 |
|
|
Borrowings |
|
73,162 |
|
|
78,723 |
|
|
64,021 |
|
|
323,472 |
|
|
|
137,519 |
|
|
Total interest expense |
|
265,995 |
|
|
255,697 |
|
|
158,424 |
|
|
983,777 |
|
|
|
317,491 |
|
|
Net interest income before provision for credit losses |
|
217,210 |
|
|
214,842 |
|
|
243,066 |
|
|
873,804 |
|
|
|
912,960 |
|
|
Provision for credit losses |
|
19,253 |
|
|
33,049 |
|
|
39,608 |
|
|
87,607 |
|
|
|
75,154 |
|
|
Net interest income after provision for credit losses |
|
197,957 |
|
|
181,793 |
|
|
203,458 |
|
|
786,197 |
|
|
|
837,806 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|||||||
|
Deposit service charges and fees |
|
5,386 |
|
|
5,402 |
|
|
5,482 |
|
|
21,682 |
|
|
|
23,402 |
|
|
Gain (loss) on investment securities, net |
|
617 |
|
|
887 |
|
|
320 |
|
|
(10,052 |
) |
|
|
(15,805 |
) |
|
Lease financing |
|
3,723 |
|
|
16,531 |
|
|
14,153 |
|
|
45,882 |
|
|
|
54,111 |
|
|
Other non-interest income |
|
7,366 |
|
|
4,904 |
|
|
6,858 |
|
|
29,326 |
|
|
|
15,928 |
|
|
Total non-interest income |
|
17,092 |
|
|
27,724 |
|
|
26,813 |
|
|
86,838 |
|
|
|
77,636 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|||||||
|
Employee compensation and benefits |
|
73,454 |
|
|
68,825 |
|
|
69,902 |
|
|
280,744 |
|
|
|
265,548 |
|
|
Occupancy and equipment |
|
10,610 |
|
|
10,890 |
|
|
10,770 |
|
|
43,345 |
|
|
|
45,400 |
|
|
Deposit insurance expense |
|
43,453 |
|
|
7,790 |
|
|
6,205 |
|
|
66,747 |
|
|
|
17,999 |
|
|
Professional fees |
|
5,052 |
|
|
2,696 |
|
|
3,028 |
|
|
14,184 |
|
|
|
11,730 |
|
|
Technology |
|
18,628 |
|
|
19,193 |
|
|
22,388 |
|
|
79,984 |
|
|
|
77,103 |
|
|
Depreciation of operating lease equipment |
|
10,476 |
|
|
11,217 |
|
|
12,547 |
|
|
44,446 |
|
|
|
50,388 |
|
|
Other non-interest expense |
|
29,190 |
|
|
26,479 |
|
|
23,639 |
|
|
106,501 |
|
|
|
72,142 |
|
|
Total non-interest expense |
|
190,863 |
|
|
147,090 |
|
|
148,479 |
|
|
635,951 |
|
|
|
540,310 |
|
|
Income before income taxes |
|
24,186 |
|
|
62,427 |
|
|
81,792 |
|
|
237,084 |
|
|
|
375,132 |
|
|
Provision for income taxes |
|
3,374 |
|
|
15,446 |
|
|
17,585 |
|
|
58,413 |
|
|
|
90,161 |
|
|
Net income |
$ |
20,812 |
|
$ |
46,981 |
|
$ |
64,207 |
|
$ |
178,671 |
|
|
$ |
284,971 |
|
|
Earnings per common share, basic |
$ |
0.27 |
|
$ |
0.63 |
|
$ |
0.83 |
|
$ |
2.39 |
|
|
$ |
3.55 |
|
|
Earnings per common share, diluted |
$ |
0.27 |
|
$ |
0.63 |
|
$ |
0.82 |
|
$ |
2.38 |
|
|
$ |
3.54 |
|
|
|
|||||||||||||||||||||||||||||
|
AVERAGE BALANCES AND YIELDS |
|||||||||||||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||||||
|
|
2023 |
|
2023 |
|
2022 |
||||||||||||||||||||||||
|
|
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 |
$ |
24,416,013 |
|
|
$ |
349,603 |
|
5.69 |
% |
|
$ |
24,417,433 |
|
|
$ |
340,357 |
|
5.54 |
% |
|
$ |
24,624,062 |
|
|
$ |
292,272 |
|
4.72 |
% |
|
Investment securities (3) |
|
8,850,397 |
|
|
|
126,870 |
|
5.73 |
% |
|
|
9,034,116 |
|
|
|
123,794 |
|
5.48 |
% |
|
|
9,788,969 |
|
|
|
106,034 |
|
4.33 |
% |
|
Other interest earning assets |
|
801,833 |
|
|
|
10,957 |
|
5.42 |
% |
|
|
785,146 |
|
|
|
10,668 |
|
5.39 |
% |
|
|
710,315 |
|
|
|
7,345 |
|
4.10 |
% |
|
Total interest earning assets |
|
34,068,243 |
|
|
|
487,430 |
|
5.70 |
% |
|
|
34,236,695 |
|
|
|
474,819 |
|
5.52 |
% |
|
|
35,123,346 |
|
|
|
405,651 |
|
4.60 |
% |
|
Allowance for credit losses |
|
(198,984 |
) |
|
|
|
|
|
|
(173,407 |
) |
|
|
|
|
|
|
(137,300 |
) |
|
|
|
|
||||||
|
Non-interest earning assets |
|
1,715,795 |
|
|
|
|
|
|
|
1,747,310 |
|
|
|
|
|
|
|
1,837,156 |
|
|
|
|
|
||||||
|
Total assets |
$ |
35,585,054 |
|
|
|
|
|
|
$ |
35,810,598 |
|
|
|
|
|
|
$ |
36,823,202 |
|
|
|
|
|
||||||
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest bearing demand deposits |
$ |
3,433,216 |
|
|
$ |
31,978 |
|
3.70 |
% |
|
$ |
3,038,870 |
|
|
$ |
25,491 |
|
3.33 |
% |
|
$ |
2,183,854 |
|
|
$ |
6,704 |
|
1.22 |
% |
|
Savings and money market deposits |
|
10,287,945 |
|
|
|
104,188 |
|
4.02 |
% |
|
|
10,205,765 |
|
|
|
97,956 |
|
3.81 |
% |
|
|
12,054,892 |
|
|
|
68,001 |
|
2.24 |
% |
|
Time deposits |
|
5,225,756 |
|
|
|
56,667 |
|
4.30 |
% |
|
|
5,420,522 |
|
|
|
53,527 |
|
3.92 |
% |
|
|
3,960,111 |
|
|
|
19,698 |
|
1.97 |
% |
|
Total interest bearing deposits |
|
18,946,917 |
|
|
|
192,833 |
|
4.04 |
% |
|
|
18,665,157 |
|
|
|
176,974 |
|
3.76 |
% |
|
|
18,198,857 |
|
|
|
94,403 |
|
2.06 |
% |
|
Federal funds purchased |
|
— |
|
|
|
— |
|
— |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
|
175,637 |
|
|
|
1,677 |
|
3.74 |
% |
|
FHLB advances |
|
5,545,978 |
|
|
|
64,034 |
|
4.58 |
% |
|
|
6,040,870 |
|
|
|
69,525 |
|
4.57 |
% |
|
|
6,125,435 |
|
|
|
53,084 |
|
3.44 |
% |
|
Notes and other borrowings |
|
711,073 |
|
|
|
9,128 |
|
5.13 |
% |
|
|
715,307 |
|
|
|
9,198 |
|
5.14 |
% |
|
|
721,044 |
|
|
|
9,260 |
|
5.14 |
% |
|
Total interest bearing liabilities |
|
25,203,968 |
|
|
|
265,995 |
|
4.19 |
% |
|
|
25,421,334 |
|
|
|
255,697 |
|
3.99 |
% |
|
|
25,220,973 |
|
|
|
158,424 |
|
2.49 |
% |
|
Non-interest bearing demand deposits |
|
6,909,027 |
|
|
|
|
|
|
|
6,937,537 |
|
|
|
|
|
|
|
8,237,885 |
|
|
|
|
|
||||||
|
Other non-interest bearing liabilities |
|
903,099 |
|
|
|
|
|
|
|
868,178 |
|
|
|
|
|
|
|
879,207 |
|
|
|
|
|
||||||
|
Total liabilities |
|
33,016,094 |
|
|
|
|
|
|
|
33,227,049 |
|
|
|
|
|
|
|
34,338,065 |
|
|
|
|
|
||||||
|
Stockholders' equity |
|
2,568,960 |
|
|
|
|
|
|
|
2,583,549 |
|
|
|
|
|
|
|
2,485,137 |
|
|
|
|
|
||||||
|
Total liabilities and stockholders' equity |
$ |
35,585,054 |
|
|
|
|
|
|
$ |
35,810,598 |
|
|
|
|
|
|
$ |
36,823,202 |
|
|
|
|
|
||||||
|
Net interest income |
|
|
$ |
221,435 |
|
|
|
|
|
$ |
219,122 |
|
|
|
|
|
$ |
247,227 |
|
|
|||||||||
|
Interest rate spread |
|
|
|
|
1.51 |
% |
|
|
|
|
|
1.53 |
% |
|
|
|
|
|
2.11 |
% |
|||||||||
|
Net interest margin |
|
|
|
|
2.60 |
% |
|
|
|
|
|
2.56 |
% |
|
|
|
|
|
2.81 |
% |
|||||||||
____________
|
(1) |
On a tax-equivalent basis where applicable |
||
|
(2) |
Annualized |
||
|
(3) |
At fair value except for securities held to maturity |
||
|
|
|||||||||||||||||||
|
AVERAGE BALANCES AND YIELDS |
|||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||
|
|
Years Ended |
||||||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||||||
|
|
Average Balance |
|
Interest (1) |
|
Yield/ Rate (1) |
|
Average Balance |
|
Interest (1) |
|
Yield/ Rate (1) |
||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Loans |
$ |
24,558,430 |
|
|
$ |
1,331,578 |
|
5.42 |
% |
|
$ |
23,937,857 |
|
|
$ |
947,386 |
|
3.96 |
% |
|
Investment securities (2) |
|
9,228,718 |
|
|
|
491,851 |
|
5.33 |
% |
|
|
10,081,701 |
|
|
|
283,081 |
|
2.81 |
% |
|
Other interest earning assets |
|
986,186 |
|
|
|
51,152 |
|
5.19 |
% |
|
|
675,068 |
|
|
|
15,709 |
|
2.33 |
% |
|
Total interest earning assets |
|
34,773,334 |
|
|
|
1,874,581 |
|
5.39 |
% |
|
|
34,694,626 |
|
|
|
1,246,176 |
|
3.59 |
% |
|
Allowance for credit losses |
|
(171,618 |
) |
|
|
|
|
|
|
(132,033 |
) |
|
|
|
|
||||
|
Non-interest earning assets |
|
1,749,981 |
|
|
|
|
|
|
|
1,721,570 |
|
|
|
|
|
||||
|
Total assets |
$ |
36,351,697 |
|
|
|
|
|
|
$ |
36,284,163 |
|
|
|
|
|
||||
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest bearing demand deposits |
$ |
2,905,968 |
|
|
$ |
86,759 |
|
2.99 |
% |
|
$ |
2,538,906 |
|
|
$ |
13,919 |
|
0.55 |
% |
|
Savings and money market deposits |
|
10,704,470 |
|
|
|
382,432 |
|
3.57 |
% |
|
|
12,874,240 |
|
|
|
130,705 |
|
1.02 |
% |
|
Time deposits |
|
5,169,458 |
|
|
|
191,114 |
|
3.70 |
% |
|
|
3,338,671 |
|
|
|
35,348 |
|
1.06 |
% |
|
Total interest bearing deposits |
|
18,779,896 |
|
|
|
660,305 |
|
3.52 |
% |
|
|
18,751,817 |
|
|
|
179,972 |
|
0.96 |
% |
|
Federal funds purchased |
|
35,403 |
|
|
|
1,611 |
|
4.55 |
% |
|
|
157,979 |
|
|
|
2,723 |
|
1.72 |
% |
|
FHLB advances |
|
6,331,685 |
|
|
|
285,026 |
|
4.50 |
% |
|
|
4,383,507 |
|
|
|
97,763 |
|
2.23 |
% |
|
Notes and other borrowings |
|
716,633 |
|
|
|
36,835 |
|
5.14 |
% |
|
|
721,223 |
|
|
|
37,033 |
|
5.13 |
% |
|
Total interest bearing liabilities |
|
25,863,617 |
|
|
|
983,777 |
|
3.80 |
% |
|
|
24,014,526 |
|
|
|
317,491 |
|
1.32 |
% |
|
Non-interest bearing demand deposits |
|
7,091,029 |
|
|
|
|
|
|
|
8,861,111 |
|
|
|
|
|
||||
|
Other non-interest bearing liabilities |
|
848,023 |
|
|
|
|
|
|
|
708,473 |
|
|
|
|
|
||||
|
Total liabilities |
|
33,802,669 |
|
|
|
|
|
|
|
33,584,110 |
|
|
|
|
|
||||
|
Stockholders' equity |
|
2,549,028 |
|
|
|
|
|
|
|
2,700,053 |
|
|
|
|
|
||||
|
Total liabilities and stockholders' equity |
$ |
36,351,697 |
|
|
|
|
|
|
$ |
36,284,163 |
|
|
|
|
|
||||
|
Net interest income |
|
|
$ |
890,804 |
|
|
|
|
|
$ |
928,685 |
|
|
||||||
|
Interest rate spread |
|
|
|
|
1.59 |
% |
|
|
|
|
|
2.27 |
% |
||||||
|
Net interest margin |
|
|
|
|
2.56 |
% |
|
|
|
|
|
2.68 |
% |
||||||
____________
|
(1) |
On a tax-equivalent basis where applicable |
||
|
(2) |
At fair value except for securities held to maturity |
||
|
|
|||||||||||||||
|
EARNINGS PER COMMON SHARE |
|||||||||||||||
|
(In thousands except share and per share amounts) |
|||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
|
Numerator: |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
20,812 |
|
|
$ |
64,207 |
|
|
$ |
178,671 |
|
|
$ |
284,971 |
|
|
Distributed and undistributed earnings allocated to participating securities |
|
(930 |
) |
|
|
(1,519 |
) |
|
|
(3,565 |
) |
|
|
(5,075 |
) |
|
Income allocated to common stockholders for basic earnings per common share |
$ |
19,882 |
|
|
$ |
62,688 |
|
|
$ |
175,106 |
|
|
$ |
279,896 |
|
|
Denominator: |
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding |
|
74,384,185 |
|
|
|
77,043,587 |
|
|
|
74,493,898 |
|
|
|
80,032,356 |
|
|
Less average unvested stock awards |
|
(1,130,715 |
) |
|
|
(1,207,275 |
) |
|
|
(1,168,004 |
) |
|
|
(1,224,568 |
) |
|
Weighted average shares for basic earnings per common share |
|
73,253,470 |
|
|
|
75,836,312 |
|
|
|
73,325,894 |
|
|
|
78,807,788 |
|
|
Basic earnings per common share |
$ |
0.27 |
|
|
$ |
0.83 |
|
|
$ |
2.39 |
|
|
$ |
3.55 |
|
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
|
Numerator: |
|
|
|
|
|
|
|
||||||||
|
Income allocated to common stockholders for basic earnings per common share |
$ |
19,882 |
|
|
$ |
62,688 |
|
|
$ |
175,106 |
|
|
$ |
279,896 |
|
|
Adjustment for earnings reallocated from participating securities |
|
— |
|
|
|
(184 |
) |
|
|
(275 |
) |
|
|
(626 |
) |
|
Income used in calculating diluted earnings per common share |
$ |
19,882 |
|
|
$ |
62,504 |
|
|
$ |
174,831 |
|
|
$ |
279,270 |
|
|
Denominator: |
|
|
|
|
|
|
|
||||||||
|
Weighted average shares for basic earnings per common share |
|
73,253,470 |
|
|
|
75,836,312 |
|
|
|
73,325,894 |
|
|
|
78,807,788 |
|
|
Dilutive effect of certain share-based awards |
|
203,123 |
|
|
|
127 |
|
|
|
197,441 |
|
|
|
94 |
|
|
Weighted average shares for diluted earnings per common share |
|
73,456,593 |
|
|
|
75,836,439 |
|
|
|
73,523,335 |
|
|
|
78,807,882 |
|
|
Diluted earnings per common share |
$ |
0.27 |
|
|
$ |
0.82 |
|
|
$ |
2.38 |
|
|
$ |
3.54 |
|
|
|
|||||||||||||||||
|
SELECTED RATIOS |
|||||||||||||||||
|
|
At or for the Three Months Ended |
|
Years Ended |
||||||||||||||
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Financial ratios (4) |
|
|
|
|
|
|
|
|
|
||||||||
|
Return on average assets |
|
0.23 |
% |
|
|
0.52 |
% |
|
|
0.69 |
% |
|
0.49 |
% |
|
0.79 |
% |
|
Return on average stockholders’ equity |
|
3.2 |
% |
|
|
7.2 |
% |
|
|
10.3 |
% |
|
7.0 |
% |
|
10.6 |
% |
|
Net interest margin (3) |
|
2.60 |
% |
|
|
2.56 |
% |
|
|
2.81 |
% |
|
2.56 |
% |
|
2.68 |
% |
|
Loans to deposits |
|
92.8 |
% |
|
|
93.3 |
% |
|
|
90.5 |
% |
|
|
|
|
||
|
Tangible book value per common share |
$ |
33.62 |
|
|
$ |
32.88 |
|
|
$ |
31.16 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|||
|
Asset quality ratios |
|
|
|
|
|
|||
|
Non-performing loans to total loans (1)(5) |
0.52 |
% |
|
0.56 |
% |
|
0.42 |
% |
|
Non-performing assets to total assets (2)(5) |
0.37 |
% |
|
0.40 |
% |
|
0.29 |
% |
|
Allowance for credit losses to total loans |
0.82 |
% |
|
0.80 |
% |
|
0.59 |
% |
|
Allowance for credit losses to non-performing loans (1)(5) |
159.54 |
% |
|
143.22 |
% |
|
140.88 |
% |
|
Net charge-offs to average loans |
0.09 |
% |
|
0.07 |
% |
|
0.22 |
% |
____________
|
(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 |
||
|
|
|
|
|
|
Required to be Considered Well Capitalized |
|||||||||
|
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
||||||
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|||||
|
Tier 1 leverage |
7.9 |
% |
|
9.1 |
% |
|
7.5 |
% |
|
8.4 |
% |
|
5.0 |
% |
|
Common Equity Tier 1 ("CET1") risk-based capital |
11.4 |
% |
|
13.1 |
% |
|
11.0 |
% |
|
12.4 |
% |
|
6.5 |
% |
|
Total risk-based capital |
13.4 |
% |
|
13.9 |
% |
|
12.7 |
% |
|
12.9 |
% |
|
10.0 |
% |
|
Tangible Common Equity/Tangible Assets |
7.0 |
% |
|
N/A |
|
6.4 |
% |
|
N/A |
|
N/A |
|||
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 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):
|
|
|
|
|
|
|
|||
|
Total stockholders’ equity |
$ |
2,577,921 |
|
$ |
2,524,070 |
|
$ |
2,435,981 |
|
Less: goodwill and other intangible assets |
|
77,637 |
|
|
77,637 |
|
|
77,637 |
|
Tangible stockholders’ equity |
$ |
2,500,284 |
|
$ |
2,446,433 |
|
$ |
2,358,344 |
|
|
|
|
|
|
|
|||
|
Common shares issued and outstanding |
|
74,372,505 |
|
|
74,413,059 |
|
|
75,674,587 |
|
|
|
|
|
|
|
|||
|
Book value per common share |
$ |
34.66 |
|
$ |
33.92 |
|
$ |
32.19 |
|
|
|
|
|
|
|
|||
|
Tangible book value per common share |
$ |
33.62 |
|
$ |
32.88 |
|
$ |
31.16 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240126405177/en/
Investor Relations:
llunak@bankunited.com
Source: