“The COVID-19 pandemic has altered life as we know it. While extraordinary changes in the economic backdrop and the implications of the COVID-19 outbreak had a material impact on our provision for credit losses this quarter, BankUnited’s capital and liquidity positions are strong. We are prepared to navigate these challenging circumstances and are intently focused on doing what we can to support our customers, communities and employees in these unprecedented times. I would be remiss not to add that I am extremely proud of the commitment demonstrated by our employees, many of whom have been working around the clock to help our clients during this difficult time. I am confident we will emerge stronger on the other side of this pandemic, well positioned to partner with our customers as they chart a path forward,” said
For the quarter ended
Our Response to the COVID-19 Pandemic
The COVID-19 pandemic has caused substantial disruption to the global economy and the communities we serve. In response to the pandemic, we have:
- Prioritized the well-being of our employees, operational resilience, liquidity, support to our customers, and asset quality.
- Activated our business continuity and contingency funding plans.
- Enabled 79% of our total employees, and 97% of our non-branch employees, to work remotely. We have not experienced any significant operational issues or disruptions in customer service as a result.
- Expanded certain employee benefits and launched a number of programs to keep our employees healthy and engaged.
- Implemented modified service models for all of our branches. To promote social distancing, customers are being served in these branches through drive through or lobby appointments only, and in some cases, with reduced hours. 24% of our retail branches are temporarily closed based on customer traffic counts and staffing levels.
- Supported our clients through participating in the Small Business Administration’s Paycheck Protection Program ("PPP"), and granting forbearance, deferrals and fee waivers on a case-by-case basis.
- Enhanced daily monitoring of liquidity trends and deposit flows, and confirmed and optimized sources of contingent liquidity.
-
Pro-actively reached out to all of our borrowers with total credit exposure of
$5 million or more, and to all borrowers in certain high-risk segments to assess the potential impact of COVID-19. - Segregated certain segments of the loan portfolio for enhanced monitoring, including franchise finance, hotels and retail.
- Augmented our stress testing protocols.
We remain confident in our long-term underlying strength and stability, and our ability to navigate these challenging conditions.
Financial Highlights
-
The Company and its banking subsidiary exceeded all regulatory guidelines required to be considered well capitalized at
March 31, 2020 . The Company's and the Bank's CET1 risk-based capital ratios were 11.8% and 12.9% atMarch 31, 2020 , respectively. The Company's and the Bank's Tier 1 leverage ratios were 8.5% and 9.3% atMarch 31, 2020 , respectively. -
Our liquidity position remains strong. At
March 31, 2020 , the Bank had total same day available liquidity of approximately$8.5 billion . -
Non-interest bearing demand deposits grew by
$305 million for the quarter endedMarch 31, 2020 , to 18.4% of total deposits atMarch 31, 2020 compared to 17.6% of total deposits atDecember 31, 2019 and 15.9% of total deposits one year ago. Total deposits grew by$606 million for the quarter endedMarch 31, 2020 . -
The average cost of total deposits declined to 1.36% for the quarter ended
March 31, 2020 , from 1.48% for the immediately preceding quarter endedDecember 31, 2019 , and 1.67% for the quarter endedMarch 31, 2019 . On a spot basis, the average annual percentage yield ("APY") on total interest-bearing deposits declined to 1.35% atMarch 31, 2020 from 1.71% atDecember 31, 2019 , reflecting recent actions taken to reduce the cost of deposits. -
The provision for credit losses totaled
$125.4 million for the quarter endedMarch 31, 2020 , reflecting the application of the CECL methodology and encompassing the expected economic impact of the COVID-19 pandemic. The provision included approximately$93 million related to changes in the economic forecast since the initial adoption of CECL onJanuary 1, 2020 and was impacted by an increase of approximately$16 million in specific reserves during the quarter. Most of the increase in specific reserves related to credits in the franchise finance portfolio segment. The provision for credit losses, excluding the portion related to unfunded commitments, was 0.53% of average loans for the quarter endedMarch 31, 2020 . For the quarter endedMarch 31, 2019 , the Company recorded a provision for loan losses, under the incurred loss model, of$10.3 million . -
The Allowance for Credit Losses ("ACL") represented our current estimate of expected lifetime credit losses from the loan portfolio and totaled
$251 million , or 1.08% of total loans, atMarch 31, 2020 . Upon initial adoption of CECL, atJanuary 1, 2020 , the ACL was 0.59% of total loans and atDecember 31, 2019 , calculated under an incurred loss methodology, the ACL was 0.47% of total loans. -
Pre-tax, pre-provision income totaled
$85.0 million for the quarter endedMarch 31, 2020 compared to$100.5 million for the quarter endedMarch 31, 2019 . Pre-tax, pre-provision income for the quarter endedMarch 31, 2020 included a$5.0 million unrealized loss on marketable equity securities, resulting from the impact on markets of the COVID-19 crisis. Inclusive of this$5.0 million unrealized loss, loss on investment securities was$(3.5) million for the quarter endedMarch 31, 2020 compared to a gain on investment securities of$5.8 million for the comparable quarter of the prior year, a negative variance of$9.2 million . Additional factors contributing to the decline in pre-tax, pre-provision income were a$10.3 million decline in net interest income, discussed further below, partially offset by a$7.8 million decrease in total non-interest expense. -
The net interest margin, calculated on a tax-equivalent basis, was 2.35% for the quarter ended
March 31, 2020 , compared to 2.41% for the immediately preceding quarter endedDecember 31, 2019 and 2.54% for the quarter endedMarch 31, 2019 . Both yields on interest earning assets and the cost of interest bearing liabilities declined for the quarter endedMarch 31, 2020 as compared to the quarters endedDecember 31, 2019 andMarch 31, 2019 ; however, the repricing of interest bearing liabilities, particularly deposits, lagged the repricing of interest earning assets. -
Stockholders' equity was impacted by a decline of
$291.8 million in accumulated other comprehensive income for the quarter endedMarch 31,2020 , attributed to an increase in unrealized losses on investment securities available for sale and derivative instruments. The Company currently expects to recover the amortized cost basis of its available for sale securities portfolio. Share repurchases totaling approximately$101 million during the quarter endedMarch 31, 2020 also impacted stockholders' equity. As previously reported, the Company has temporarily suspended its share repurchase program. -
As previously reported, the Company announced an increase of
$0.02 in its quarterly cash dividend to$0.23 per common share, reflecting a 10% increase from the previous quarterly cash dividend of$0.21 per common share.
Capital
The Company's and
|
|
|
|
|
Required to be Considered Well Capitalized |
|||||||||
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage |
8.5 |
% |
|
9.3 |
% |
|
8.9 |
% |
|
9.3 |
% |
|
5.0 |
% |
Common Equity Tier 1 ("CET1") risk-based capital |
11.8 |
% |
|
12.9 |
% |
|
12.3 |
% |
|
12.9 |
% |
|
6.5 |
% |
Total risk-based capital |
12.6 |
% |
|
13.7 |
% |
|
12.8 |
% |
|
13.4 |
% |
|
10.0 |
% |
As permitted by a recently issued inter-agency interim final rule, the Company has elected the option to temporarily delay the effects of the adoption of CECL on regulatory capital for two years, followed by a three-year transition period. On a fully phased in basis, at
The primary reason for the decline in the Company's regulatory capital ratios from
Liquidity
BankUnited's liquidity position remains strong. At
Asset Quality and the Allowance for Credit Losses
Effective
The following table presents the ACL at the dates indicated, related ACL coverage ratios, as well as net charge-off rates for the quarter ended
|
ACL |
|
ACL to Total Loans |
|
ACL to Non-Performing Loans |
|
Net Charge-offs to Average Loans |
|||||
|
$ |
108,671 |
|
|
0.47 |
% |
|
53.07 |
% |
|
0.05 |
% |
|
$ |
135,976 |
|
|
0.59 |
% |
|
66.4 |
% |
|
N/A |
|
|
$ |
250,579 |
|
|
1.08 |
% |
|
126.41 |
% |
|
0.13 |
% |
The Company based its reasonable and supportable forecast used in estimating the ACL at
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
Three Months Ended |
||||||
|
2020 |
|
2019 |
||||
Beginning balance |
$ |
108,671 |
|
|
$ |
109,931 |
|
Cumulative effect of adoption of CECL |
27,305 |
|
|
— |
|
||
Balance after adoption of CECL |
135,976 |
|
|
109,931 |
|
||
Provision |
121,865 |
|
|
10,281 |
|
||
Charge-offs |
(7,806 |
) |
|
(6,133 |
) |
||
Recoveries |
544 |
|
|
624 |
|
||
Ending balance |
$ |
250,579 |
|
|
$ |
114,703 |
|
Non-performing loans totaled
The following table shows the composition of the Company's criticized and classified commercial loans at the dates indicated (dollars in thousands):
|
|
|
|
||||
Special Mention |
$ |
288,148 |
|
|
$ |
72,881 |
|
Substandard accruing |
238,786 |
|
|
180,380 |
|
||
Substandard non-accruing |
181,278 |
|
|
185,906 |
|
||
Total criticized and classified |
$ |
708,212 |
|
|
$ |
439,167 |
|
Percent of total loans |
3.10 |
% |
|
1.90 |
% |
The increase in special mention and substandard accruing loans was primarily attributed to downgrades in the Bridge franchise finance portfolio during the quarter ended
Loans and Leases
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
|
|
|
|
||||||||||
Residential and other consumer loans |
$ |
5,634,823 |
|
|
24.4 |
% |
|
$ |
5,661,119 |
|
|
24.5 |
% |
Multi-family |
1,967,578 |
|
|
8.5 |
% |
|
2,217,705 |
|
|
9.6 |
% |
||
Non-owner occupied commercial real estate |
4,987,798 |
|
|
21.5 |
% |
|
5,030,904 |
|
|
21.7 |
% |
||
Construction and land |
222,223 |
|
|
1.0 |
% |
|
243,925 |
|
|
1.1 |
% |
||
Owner occupied commercial real estate |
2,026,510 |
|
|
8.7 |
% |
|
2,062,808 |
|
|
8.9 |
% |
||
Commercial and industrial |
5,008,573 |
|
|
21.6 |
% |
|
4,655,349 |
|
|
20.1 |
% |
||
Pinnacle |
1,187,607 |
|
|
5.0 |
% |
|
1,202,430 |
|
|
5.2 |
% |
||
Bridge - franchise finance |
647,699 |
|
|
2.8 |
% |
|
627,482 |
|
|
2.6 |
% |
||
Bridge - equipment finance |
649,154 |
|
|
2.8 |
% |
|
684,794 |
|
|
3.0 |
% |
||
Mortgage warehouse lending |
852,313 |
|
|
3.7 |
% |
|
768,472 |
|
|
3.3 |
% |
||
|
$ |
23,184,278 |
|
|
100.0 |
% |
|
$ |
23,154,988 |
|
|
100.0 |
% |
Operating lease equipment, net |
$ |
684,563 |
|
|
|
|
$ |
698,153 |
|
|
|
For the quarter ended
The following table presents loan portfolio sub-segments that, in light of current circumstances, have been identified for enhanced monitoring as of
|
|
|||
|
Amount |
% of Total Loans |
||
Retail exposure in the CRE portfolio |
$ |
1,446,599 |
6.2 |
% |
Retail exposure in the C&I portfolio (1) |
346,915 |
1.5 |
% |
|
Bridge - franchise finance |
647,699 |
2.8 |
% |
|
Hotel |
619,482 |
2.7 |
% |
|
Airlines |
84,649 |
0.4 |
% |
|
Cruise lines |
71,374 |
0.3 |
% |
|
Energy |
46,348 |
0.2 |
% |
|
|
$ |
3,263,066 |
14.1 |
% |
(1) |
Includes |
There is also exposure to energy in the operating lease portfolio, primarily railcars, totaling
Investment securities totaled
Net interest income
Net interest income for the quarter ended
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased to 2.35% for the quarter ended
Significant factors contributing to these declines in the net interest margin included:
-
The tax-equivalent yield on loans decreased to 4.18% for the quarter ended
March 31, 2020 , from 4.27% for the quarter endedDecember 31, 2019 and 4.50% for the quarter endedMarch 31, 2019 . The most significant factor contributing to these decreases was the impact of decreases in benchmark interest rates. -
The tax-equivalent yield on investment securities decreased to 2.81% for the quarter ended
March 31, 2020 from 3.18% for the quarter endedDecember 31, 2019 and 3.64% for the quarter endedMarch 31, 2019 . The most significant factors contributing to these decreases were the impact of decreases in benchmark interest rates and, to a lesser extent, increased prepayment speeds. -
The average rate on interest bearing liabilities decreased to 1.82% for the quarter ended
March 31, 2020 from 1.96% for the quarter endedDecember 31, 2019 and 2.10% for the quarter endedMarch 31, 2019 , reflecting lower average rates on interest bearing deposits, short term borrowings and FHLB advances. Decreases in the cost of interest bearing liabilities primarily reflect decreases in benchmark interest rates.
For the quarter ended
Non-interest income
Non-interest income totaled
The most significant factor contributing to the decrease in non-interest income for the quarter ended
Non-interest expense
Non-interest expense totaled
Significant factors contributing to the decrease in non-interest expense for the quarter ended
-
Employee compensation and benefits decreased by
$6.3 million , primarily due to a reduction in headcount and a decrease in equity based compensation expense related to the impact of a declining stock price on liability-classified awards. -
Professional fees decreased by
$4.7 million , primarily due to the consulting services in 2019 related to our BankUnited 2.0 initiative.
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
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
CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and due from banks: |
|
|
|
||||
Non-interest bearing |
$ |
8,905 |
|
|
$ |
7,704 |
|
Interest bearing |
757,793 |
|
|
206,969 |
|
||
Cash and cash equivalents |
766,698 |
|
|
214,673 |
|
||
Investment securities (including securities recorded at fair value of |
7,874,601 |
|
|
7,769,237 |
|
||
Non-marketable equity securities |
281,714 |
|
|
253,664 |
|
||
Loans held for sale |
17,655 |
|
|
37,926 |
|
||
Loans |
23,184,278 |
|
|
23,154,988 |
|
||
Allowance for credit losses |
(250,579 |
) |
|
(108,671 |
) |
||
Loans, net |
22,933,699 |
|
|
23,046,317 |
|
||
Bank owned life insurance |
288,869 |
|
|
282,151 |
|
||
Operating lease equipment, net |
684,563 |
|
|
698,153 |
|
||
|
77,663 |
|
|
77,674 |
|
||
Other assets |
670,209 |
|
|
491,498 |
|
||
Total assets |
$ |
33,595,671 |
|
|
$ |
32,871,293 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Liabilities: |
|
|
|
||||
Demand deposits: |
|
|
|
||||
Non-interest bearing |
$ |
4,599,337 |
|
|
$ |
4,294,824 |
|
Interest bearing |
2,535,696 |
|
|
2,130,976 |
|
||
Savings and money market |
10,323,899 |
|
|
10,621,544 |
|
||
Time |
7,541,839 |
|
|
7,347,247 |
|
||
Total deposits |
25,000,771 |
|
|
24,394,591 |
|
||
Federal funds purchased |
— |
|
|
100,000 |
|
||
|
5,144,409 |
|
|
4,480,501 |
|
||
Notes and other borrowings |
428,579 |
|
|
429,338 |
|
||
Other liabilities |
505,783 |
|
|
486,084 |
|
||
Total liabilities |
31,079,542 |
|
|
29,890,514 |
|
||
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock, par value |
924 |
|
|
951 |
|
||
Paid-in capital |
987,757 |
|
|
1,083,920 |
|
||
Retained earnings |
1,851,040 |
|
|
1,927,735 |
|
||
Accumulated other comprehensive loss |
(323,592 |
) |
|
(31,827 |
) |
||
Total stockholders' equity |
2,516,129 |
|
|
2,980,779 |
|
||
Total liabilities and stockholders' equity |
$ |
33,595,671 |
|
|
$ |
32,871,293 |
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) |
|||||||
|
Three Months Ended |
||||||
|
2020 |
|
2019 |
||||
Interest income: |
|
|
|
||||
Loans |
$ |
234,359 |
|
|
$ |
240,632 |
|
Investment securities |
56,060 |
|
|
76,345 |
|
||
Other |
3,720 |
|
|
4,852 |
|
||
Total interest income |
294,139 |
|
|
321,829 |
|
||
Interest expense: |
|
|
|
||||
Deposits |
82,822 |
|
|
97,421 |
|
||
Borrowings |
30,741 |
|
|
33,507 |
|
||
Total interest expense |
113,563 |
|
|
130,928 |
|
||
Net interest income before provision for credit losses |
180,576 |
|
|
190,901 |
|
||
Provision for credit losses |
125,428 |
|
|
10,281 |
|
||
Net interest income after provision for credit losses |
55,148 |
|
|
180,620 |
|
||
Non-interest income: |
|
|
|
||||
Deposit service charges and fees |
4,186 |
|
|
3,830 |
|
||
Gain on sale of loans, net |
3,466 |
|
|
2,936 |
|
||
Gain (loss) on investment securities, net |
(3,453 |
) |
|
5,785 |
|
||
Lease financing |
15,481 |
|
|
17,186 |
|
||
Other non-interest income |
3,618 |
|
|
6,518 |
|
||
Total non-interest income |
23,298 |
|
|
36,255 |
|
||
Non-interest expense: |
|
|
|
||||
Employee compensation and benefits |
58,887 |
|
|
65,233 |
|
||
Occupancy and equipment |
12,369 |
|
|
13,166 |
|
||
Deposit insurance expense |
4,403 |
|
|
4,041 |
|
||
Professional fees |
3,204 |
|
|
7,871 |
|
||
Technology and telecommunications |
12,596 |
|
|
11,168 |
|
||
Depreciation of operating lease equipment |
12,603 |
|
|
11,812 |
|
||
Other non-interest expense |
14,806 |
|
|
13,399 |
|
||
Total non-interest expense |
118,868 |
|
|
126,690 |
|
||
Income (loss) before income taxes |
(40,422 |
) |
|
90,185 |
|
||
Provision (benefit) for income taxes |
(9,471 |
) |
|
24,213 |
|
||
Net income (loss) |
$ |
(30,951 |
) |
|
$ |
65,972 |
|
Earnings (loss) per common share, basic |
$ |
(0.33 |
) |
|
$ |
0.65 |
|
Earnings (loss) per common share, diluted |
$ |
(0.33 |
) |
|
$ |
0.65 |
|
AVERAGE BALANCES AND YIELDS (Dollars in thousands) |
||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||
|
|
2020 |
|
2019 |
||||||||||||||||||
|
|
Average
|
|
Interest (1)(2) |
|
Yield/
|
|
Average
|
|
Interest (1)(2) |
|
Yield/
|
||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
|
$ |
22,850,065 |
|
|
$ |
238,108 |
|
|
4.18 |
% |
|
$ |
21,974,453 |
|
|
$ |
245,010 |
|
|
4.50 |
% |
Investment securities (3) |
|
8,107,649 |
|
|
56,951 |
|
|
2.81 |
% |
|
8,520,555 |
|
|
77,607 |
|
|
3.64 |
% |
||||
Other interest earning assets |
|
646,628 |
|
|
3,720 |
|
|
2.31 |
% |
|
496,141 |
|
|
4,852 |
|
|
3.96 |
% |
||||
Total interest earning assets |
|
31,604,342 |
|
|
298,779 |
|
|
3.79 |
% |
|
30,991,149 |
|
|
327,469 |
|
|
4.26 |
% |
||||
Allowance for credit losses |
|
(138,842 |
) |
|
|
|
|
|
(111,074 |
) |
|
|
|
|
||||||||
Non-interest earning assets |
|
1,749,752 |
|
|
|
|
|
|
1,603,922 |
|
|
|
|
|
||||||||
Total assets |
|
$ |
33,215,252 |
|
|
|
|
|
|
$ |
32,483,997 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing demand deposits |
|
$ |
2,173,628 |
|
|
6,959 |
|
|
1.29 |
% |
|
$ |
1,702,479 |
|
|
5,639 |
|
|
1.34 |
% |
||
Savings and money market deposits |
|
10,412,202 |
|
|
37,756 |
|
|
1.46 |
% |
|
11,453,980 |
|
|
52,817 |
|
|
1.87 |
% |
||||
Time deposits |
|
7,510,070 |
|
|
38,107 |
|
|
2.04 |
% |
|
6,907,011 |
|
|
38,965 |
|
|
2.29 |
% |
||||
Total interest bearing deposits |
|
20,095,900 |
|
|
82,822 |
|
|
1.66 |
% |
|
20,063,470 |
|
|
97,421 |
|
|
1.97 |
% |
||||
Short term borrowings |
|
94,066 |
|
|
367 |
|
|
1.56 |
% |
|
137,378 |
|
|
824 |
|
|
2.40 |
% |
||||
FHLB advances |
|
4,414,830 |
|
|
25,084 |
|
|
2.29 |
% |
|
4,660,222 |
|
|
27,374 |
|
|
2.38 |
% |
||||
Notes and other borrowings |
|
429,098 |
|
|
5,290 |
|
|
4.93 |
% |
|
404,852 |
|
|
5,309 |
|
|
5.25 |
% |
||||
Total interest bearing liabilities |
|
25,033,894 |
|
|
113,563 |
|
|
1.82 |
% |
|
25,265,922 |
|
|
130,928 |
|
|
2.10 |
% |
||||
Non-interest bearing demand deposits |
|
4,368,553 |
|
|
|
|
|
|
3,605,131 |
|
|
|
|
|
||||||||
Other non-interest bearing liabilities |
|
749,101 |
|
|
|
|
|
|
657,360 |
|
|
|
|
|
||||||||
Total liabilities |
|
30,151,548 |
|
|
|
|
|
|
29,528,413 |
|
|
|
|
|
||||||||
Stockholders' equity |
|
3,063,704 |
|
|
|
|
|
|
2,955,584 |
|
|
|
|
|
||||||||
Total liabilities and stockholders' equity |
|
$ |
33,215,252 |
|
|
|
|
|
|
$ |
32,483,997 |
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
185,216 |
|
|
|
|
|
|
$ |
196,541 |
|
|
|
||||||
Interest rate spread |
|
|
|
|
|
1.97 |
% |
|
|
|
|
|
2.16 |
% |
||||||||
Net interest margin |
|
|
|
|
|
2.35 |
% |
|
|
|
|
|
2.54 |
% |
(1) |
On a tax-equivalent basis where applicable |
|
(2) |
Annualized |
|
(3) |
At fair value except for securities held to maturity |
EARNINGS (LOSS) PER COMMON SHARE (In thousands except share and per share amounts) |
||||||||
|
Three Months Ended |
|||||||
2020 |
|
2019 |
||||||
Basic earnings per common share: |
|
|
|
|||||
Numerator: |
|
|
|
|||||
Net income (loss) |
$ |
(30,951 |
) |
|
$ |
65,972 |
|
|
Distributed and undistributed earnings allocated to participating securities |
— |
|
|
(2,697 |
) |
|||
Income (loss) allocated to common stockholders for basic earnings per common share |
$ |
(30,951 |
) |
|
$ |
63,275 |
|
|
Denominator: |
|
|
|
|||||
Weighted average common shares outstanding |
93,944,529 |
|
|
98,856,775 |
|
|||
Less average unvested stock awards |
(1,101,370 |
) |
|
(1,171,921 |
) |
|||
Weighted average shares for basic earnings (loss) per common share |
92,843,159 |
|
|
97,684,854 |
|
|||
Basic earnings (loss) per common share |
$ |
(0.33 |
) |
|
$ |
0.65 |
|
|
Diluted earnings (loss) per common share: |
|
|
|
|||||
Numerator: |
|
|
|
|||||
Income (loss) allocated to common stockholders for basic earnings per common share |
$ |
(30,951 |
) |
|
$ |
63,275 |
|
|
Adjustment for earnings reallocated from participating securities |
— |
|
|
5 |
|
|||
Income (loss) used in calculating diluted earnings per common share |
$ |
(30,951 |
) |
|
$ |
63,280 |
|
|
Denominator: |
|
|
|
|||||
Weighted average shares for basic earnings (loss) per common share |
92,843,159 |
|
|
97,684,854 |
|
|||
Dilutive effect of stock options and certain shared-based awards |
— |
|
|
279,779 |
|
|||
Weighted average shares for diluted earnings per common share |
92,843,159 |
|
|
97,964,633 |
|
|||
Diluted earnings (loss) per common share |
$ |
(0.33 |
) |
|
$ |
0.65 |
|
SELECTED RATIOS |
||||||
|
Three Months Ended |
|||||
|
2020 |
|
2019 |
|||
Financial ratios (4) |
|
|
|
|||
Return on average assets |
(0.37 |
)% |
|
0.82 |
% |
|
Return on average stockholders’ equity |
(4.1 |
)% |
|
9.1 |
% |
|
Net interest margin (3) |
2.35 |
% |
|
2.54 |
% |
|
|
|
|
|
|||
Asset quality ratios |
|
|
|
|||
Non-performing loans to total loans (1)(5) |
0.85 |
% |
|
0.88 |
% |
|
Non-performing assets to total assets (2) (5) |
0.61 |
% |
|
0.63 |
% |
|
Allowance for credit losses to total loans |
1.08 |
% |
|
0.47 |
% |
|
Allowance for credit losses to non-performing loans (1) (5) |
126.41 |
% |
|
53.07 |
% |
|
Provision for credit losses to average loans (4) |
0.53 |
% |
|
0.04 |
% |
|
Net charge-offs to average loans (4) |
0.13 |
% |
|
0.05 |
% |
|
|
||
(1) |
We define non-performing loans to include non-accrual loans and loans other than government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent 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 |
Non-GAAP Financial Measures
Pre-tax, pre-provision income is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses, particularly in view of the adoption of the CECL accounting methodology in the current quarter, which may impact comparability of operating results to prior periods. This measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of pre-tax, pre-provision income to the comparable GAAP financial measurement of income (loss) before income taxes for the three months ended
|
Three Months Ended |
||||||
|
2020 |
|
2019 |
||||
Income (loss) before income taxes (GAAP) |
$ |
(40,422 |
) |
|
$ |
90,185 |
|
Plus: Provision for credit losses |
125,428 |
|
|
10,281 |
|
||
Pre-tax, pre-provision income (non-GAAP) |
$ |
85,006 |
|
|
$ |
100,466 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200429005155/en/
Investor Relations:
llunak@bankunited.com
Source: