News Release

Printer Friendly Version  View printer-friendly version
<< Back
BankUnited, Inc. Reports First Quarter 2021 Results

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Apr. 22, 2021-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2021.

“This quarter, non-interest DDA grew by almost $1 billion, our net interest margin expanded, and we released some of the reserves we put up last year. This quarter also marks the culmination of our 2 year cloud journey, and the release of our new mobile banking platform." said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended March 31, 2021, the Company reported net income of $98.8 million, or $1.06 per diluted share, compared to a net loss of $(31.0) million, or $(0.33) per diluted share, for the quarter ended March 31, 2020. On an annualized basis, earnings for the quarter ended March 31, 2021 generated a return on average stockholders' equity of 13.2% and a return on average assets of 1.14%.

Financial Highlights

  • Net interest income increased by $2.9 million compared to the immediately preceding quarter ended December 31, 2020 and by $15.7 million compared to the quarter ended March 31, 2020. The net interest margin, calculated on a tax-equivalent basis, improved to 2.39% for the quarter ended March 31, 2021 from 2.33% for the immediately preceding quarter and 2.35% for the quarter ended March 31, 2020.
  • The average cost of total deposits continued to decline, dropping by 0.10% to 0.33% for the quarter ended March 31, 2021 from 0.43% for the immediately preceding quarter ended December 31, 2020, and 1.36% for the quarter ended March 31, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to 0.27% at March 31, 2021 from 0.36% at December 31, 2020 and 1.35% at March 31, 2020.
  • For the quarter ended March 31, 2021, the Company recorded a recovery of the provision for credit losses of $(28.0) million compared to a recovery of $(1.6) million for the immediately preceding quarter ended December 31, 2020 and a provision for credit losses of $125.4 million for the quarter ended March 31, 2020. The most significant factor leading to the recovery of credit losses for the quarter ended March 31, 2021 was an improving economic forecast. In contrast, the provision for credit losses for the quarter ended March 31, 2020 was driven primarily by a deteriorating economic forecast resulting from the onset of the COVID-19 pandemic.
  • Pre-tax, pre-provision net revenue ("PPNR") was $103.3 million for the quarter ended March 31, 2021 compared to $105.3 million for the immediately preceding quarter ended December 31, 2020 and $85.0 million for the quarter ended March 31, 2020.
  • Non-interest bearing demand deposits grew by $957 million during the quarter ended March 31, 2021. Total deposits grew by $236 million as higher cost time deposits continued to runoff, declining by $1.0 billion for the quarter ended March 31, 2021. Average non-interest bearing demand deposits grew by $338 million for the quarter ended March 31, 2021 compared to the immediately preceding quarter ended December 31, 2020 and by $3.1 billion compared to the quarter ended March 31, 2020. At March 31, 2021, non-interest bearing demand deposits represented 29% of total deposits, compared to 25% of total deposits at December 31, 2020.
  • Total loans and operating lease equipment declined by $487 million for the quarter ended March 31, 2020.
  • Loans on deferral totaled $126 million or less than 1% of total loans at March 31, 2021. Loans modified under the CARES Act totaled $636 million at March 31, 2021. In the aggregate, this represents $762 million or 3% of the total loan portfolio at March 31, 2021.
  • Non-performing assets totaled $236 million or 0.67% of total assets at March 31, 2020, a decline from $248 million or 0.71% of total assets at December 31, 2020.
  • Book value per common share and tangible book value per common share at March 31, 2021 increased to $32.83 and $32.00, respectively, from $32.05 and $31.22, respectively at December 31, 2020 and pre-pandemic levels of $31.33 and $30.52, respectively at December 31, 2019.
  • As previously reported, on January 20, 2021, the Company's Board of Directors reinstated the share repurchase program that the Company suspended in March 2020. During the quarter ended March 31, 2021, the Company repurchased approximately 0.2 million shares of its common stock for an aggregate purchase price of $7.3 million, at a weighted average price of $35.42 per share.

     

Loans and Leases

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

 

March 31, 2021

 

December 31, 2020

Residential and other consumer loans

$

6,582,447

 

 

28.1

%

 

$

6,348,222

 

 

26.6

%

Multi-family

1,507,462

 

 

6.5

%

 

1,639,201

 

 

6.9

%

Non-owner occupied commercial real estate

4,871,110

 

 

20.9

%

 

4,963,273

 

 

20.8

%

Construction and land

287,821

 

 

1.2

%

 

293,307

 

 

1.2

%

Owner occupied commercial real estate

1,932,153

 

 

8.3

%

 

2,000,770

 

 

8.4

%

Commercial and industrial

4,048,473

 

 

17.3

%

 

4,447,383

 

 

18.6

%

PPP

911,951

 

 

3.9

%

 

781,811

 

 

3.3

%

Pinnacle

1,088,685

 

 

4.7

%

 

1,107,386

 

 

4.6

%

Bridge - franchise finance

524,617

 

 

2.2

%

 

549,733

 

 

2.3

%

Bridge - equipment finance

460,391

 

 

2.0

%

 

475,548

 

 

2.0

%

Mortgage warehouse lending ("MWL")

1,145,957

 

 

4.9

%

 

1,259,408

 

 

5.3

%

 

$

23,361,067

 

 

100.0

%

 

$

23,866,042

 

 

100.0

%

Operating lease equipment, net

$

681,003

 

 

 

 

$

663,517

 

 

 

 

Growth in residential and other consumer loans for the quarter was attributable to GNMA early buyout loans. At March 31, 2021 and December 31, 2020, the residential portfolio included $1.7 billion and $1.4 billion, respectively, of GNMA early buyout loans. Residential activity for the quarter included purchases of approximately $578 million in GNMA early buyout loans, offset by approximately $237 million in re-poolings and paydowns. Residential and other consumer loans, excluding GNMA early buyout loans, declined by approximately $107 million.

In the aggregate, commercial loans declined by $739 million for the quarter ended March 31, 2021 as the environment remained challenging for new production, line utilization was below historical levels and accelerated prepayment activity continued. MWL line utilization declined seasonally to 55% at March 31, 2021 compared to 62% at December 31, 2020.

We originated $265 million of PPP loans under the Second Draw Program during the quarter ended March 31, 2021. Loans originated under the First Draw Program totaling $138 million were fully or partially forgiven during the quarter.

Asset Quality and the Allowance for Credit Losses

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

 

Non-Performing

Loans

 

Currently Under

Short-Term

Deferral

 

CARES Act

Modification

Residential and other consumer (1)

$

26,140

 

 

$

90,811

 

 

$

15,432

 

Commercial:

 

 

 

 

 

 

 

 

CRE by Property Type:

 

 

 

 

 

 

 

 

Retail

21,932

 

 

18,108

 

 

18,507

 

Hotel

34,003

 

 

 

 

343,354

 

Office

5,263

 

 

13,163

 

 

43,379

 

Multi-family

15,288

 

 

 

 

24,014

 

Other

4,788

 

 

 

 

 

Owner occupied commercial real estate

23,451

 

 

3,667

 

 

11,532

 

Commercial and industrial

66,491

 

 

 

 

141,741

 

Bridge - franchise finance

36,276

 

 

 

 

38,182

 

Total commercial

207,492

 

 

34,938

 

 

620,709

 

Total

$

233,632

 

 

$

125,749

 

 

$

636,141

 

______________

(1)

 

Excludes government insured residential loans.

 

In the table above, "currently under short-term deferral" refers to loans subject to either a first or second 90-day payment deferral at March 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, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act.

Non-performing loans declined to $233.6 million or 1.00% of total loans at March 31, 2021, from $244.5 million or 1.02% of total loans at December 31, 2020. Non-performing loans included $48.2 million and $51.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.21% and 0.22% of total loans at March 31, 2021 and December 31, 2020, respectively.

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

 

March 31, 2021

 

December 31, 2020

Special mention

$

420,331

 

 

$

711,516

 

Substandard - accruing

1,983,191

 

 

1,758,654

 

Substandard - non-accruing

189,589

 

 

203,758

 

Doubtful

17,903

 

 

11,867

 

Total

$

2,611,014

 

 

$

2,685,795

 

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

 

ACL

 

ACL to

Total Loans (1)

 

ACL to

Non-Performing

Loans

 

Net Charge-offs

to Average

Loans (2)

December 31, 2020

$

257,323

 

 

1.08

%

 

105.26

%

 

0.26

%

March 31, 2021

$

220,934

 

 

0.95

%

 

94.56

%

 

0.17

%

______________

(1)

 

ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 1.13% and 1.26% at March 31, 2021 and December 31, 2020, respectively.

(2)

Annualized for the three months ended March 31, 2021.

 

The ACL at March 31, 2021 represents management's estimate of lifetime expected credit losses from the loan portfolio 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 March 2021, economic information provided by additional sources, data reflecting the impact of recent events on individual borrowers and other relevant information. The decline in the ACL and in ACL coverage ratios from December 31, 2020 to March 31, 2021 related primarily to the recovery of credit losses recorded during the quarter. The decline in the ACL was primarily related to the pass rated portion of the portfolio.

For the quarter ended March 31, 2021, the Company recorded a recovery of credit losses of $(28.0) million, which included a recovery of $(26.3) million related to funded loans as well as immaterial amounts related to unfunded loan commitments, accrued interest receivable and an AFS debt security. The recovery of provision for credit losses was largely driven by improvements in forecasted economic conditions.

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

 

Three Months Ended March 31,

 

2021

 

2020

Beginning balance

$

257,323

 

 

$

108,671

 

Cumulative effect of adoption of CECL

 

 

27,305

 

Balance after adoption of CECL

257,323

 

 

135,976

 

Provision (recovery)

(26,306

)

 

121,865

 

Net charge-offs

(10,083

)

 

(7,262

)

Ending balance

$

220,934

 

 

$

250,579

 

 

Net interest income

Net interest income for the quarter ended March 31, 2021 was $196.2 million compared to $193.4 million for the immediately preceding quarter ended December 31, 2020 and $180.6 million for the quarter ended March 31, 2020.

Interest income decreased by $5.7 million for the quarter ended March 31, 2021 compared to the immediately preceding quarter, and by $48.7 million compared to the quarter ended March 31, 2020. Interest expense decreased by $8.6 million compared to the immediately preceding quarter and by $64.4 million compared to the quarter ended March 31, 2020. Decreases in interest income resulted from declines in market interest rates including the impact of repayment of assets originated in a higher rate environment and, with respect to comparison to the immediately preceding quarter, declines in average loans and investment securities. Declines in interest expense reflected decreases in market interest rates, the impact of our strategy focused on lowering the cost of deposits and improving the deposit mix and declines in average interest bearing liabilities.

The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.39% for the quarter ended March 31, 2021, from 2.33% for the immediately preceding quarter ended December 31, 2020. The decline in the average rate paid on interest bearing liabilities, particularly deposits, exceeded the decline in the average yield on interest earning assets. Offsetting factors contributing to the increase in the net interest margin for the quarter ended March 31, 2021 compared to the immediately preceding quarter ended December 31, 2020 included:

  • The average rate paid on interest bearing deposits decreased to 0.45% for the quarter ended March 31, 2021, from 0.58% for the quarter ended December 31, 2020. This decline reflected continued initiatives taken to lower rates paid on deposits, including the re-pricing of term deposits.
  • The tax-equivalent yield on investment securities decreased to 1.73% for the quarter ended March 31, 2021 from 1.82% for the quarter ended December 31, 2020. This decrease resulted from the impact of purchases of lower-yielding securities, prepayments of higher yielding mortgage-backed securities and decreases in coupon interest rates on existing floating rate assets.
  • The tax-equivalent yield on loans increased to 3.58% for the quarter ended March 31, 2021, from 3.55% for the quarter ended December 31, 2020. Accelerated amortization of origination fees on PPP loans that were partially or fully forgiven during the quarter impacted the yield on loans by approximately 0.06%.
  • The average rate paid on FHLB and PPPLF borrowings increased to 2.32% for the quarter ended March 31, 2021, from 2.07% for the quarter ended December 31, 2020, reflecting the maturity of short-term, lower rate FHLB advances and the payoff of all PPPLF borrowings during the fourth quarter of 2020.
  • The increase in average non-interest bearing demand deposits as a percentage of average total deposits also positively impacted the cost of total deposits and the net interest margin.

     

Non-interest income

Non-interest income totaled $30.3 million for the quarter ended March 31, 2021 compared to $35.3 million for the immediately preceding quarter ended December 31, 2020 and $23.3 million for the quarter ended March 31, 2020. These fluctuations in non-interest income were primarily attributable to gain (loss) on investment securities, net which totaled $2.4 million, $7.2 million and $(3.5) million for the quarters ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively. Increases in "other non-interest income" related primarily to increased revenue from our customer derivative program.

Non-interest expense

Non-interest expense totaled $123.2 million for the quarter ended March 31, 2021 compared to $123.3 million for the immediately preceding quarter ended December 31, 2020 and $118.9 million for the quarter ended March 31, 2020. Significant factors contributing to the increase in non-interest expense for the quarter ended March 31, 2021 compared to the quarter ended March 31, 2020 included:

  • Technology and telecommunications expense increased by $3.1 million reflecting investments in digital and data analytics capabilities and in the infrastructure to support cloud migration.
  • Deposit insurance expense increased by $3.0 million reflecting an increase in the assessment rate.

     

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, April 22, 2021 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 http://www.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 7587207. A replay of the call will be available from 12:00 p.m. ET on April 22nd through 11:59 p.m. ET on April 29th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 7587207. 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 $35.2 billion at March 31, 2021, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 69 banking centers in 14 Florida counties and 4 banking centers in the New York metropolitan area at March 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)

 

 

March 31,

2021

 

December 31,

2020

ASSETS

 

 

 

Cash and due from banks:

 

 

 

Non-interest bearing

$

20,750

 

 

$

20,233

 

Interest bearing

1,029,046

 

 

377,483

 

Cash and cash equivalents

1,049,796

 

 

397,716

 

Investment securities (including securities recorded at fair value of $9,234,784 and $9,166,683)

9,244,784

 

 

9,176,683

 

Non-marketable equity securities

177,709

 

 

195,865

 

Loans held for sale

13,770

 

 

24,676

 

Loans

23,361,067

 

 

23,866,042

 

Allowance for credit losses

(220,934

)

 

(257,323

)

Loans, net

23,140,133

 

 

23,608,719

 

Bank owned life insurance

301,881

 

 

294,629

 

Operating lease equipment, net

681,003

 

 

663,517

 

Goodwill

77,637

 

 

77,637

 

Other assets

492,526

 

 

571,051

 

Total assets

$

35,179,239

 

 

$

35,010,493

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Liabilities:

 

 

 

Demand deposits:

 

 

 

Non-interest bearing

$

7,965,658

 

 

$

7,008,838

 

Interest bearing

3,096,668

 

 

3,020,039

 

Savings and money market

12,885,645

 

 

12,659,740

 

Time

3,784,111

 

 

4,807,199

 

Total deposits

27,732,082

 

 

27,495,816

 

Federal funds purchased

 

 

180,000

 

FHLB advances

3,022,174

 

 

3,122,999

 

Notes and other borrowings

721,753

 

 

722,495

 

Other liabilities

641,395

 

 

506,171

 

Total liabilities

32,117,404

 

 

32,027,481

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 93,263,632 and 93,067,500 shares issued and outstanding

933

 

 

931

 

Paid-in capital

1,008,603

 

 

1,017,518

 

Retained earnings

2,091,124

 

 

2,013,715

 

Accumulated other comprehensive loss

(38,825

)

 

(49,152

)

Total stockholders' equity

3,061,835

 

 

2,983,012

 

Total liabilities and stockholders' equity

$

35,179,239

 

 

$

35,010,493

 

 
 
 
 
 

BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

 

2021

 

2020

 

2020

Interest income:

 

 

 

 

 

Loans

$

205,335

 

 

$

207,232

 

 

$

234,359

 

Investment securities

38,501

 

 

42,260

 

 

56,060

 

Other

1,593

 

 

1,628

 

 

3,720

 

Total interest income

245,429

 

 

251,120

 

 

294,139

 

Interest expense:

 

 

 

 

 

Deposits

22,376

 

 

29,290

 

 

82,822

 

Borrowings

26,813

 

 

28,464

 

 

30,741

 

Total interest expense

49,189

 

 

57,754

 

 

113,563

 

Net interest income before provision for credit losses

196,240

 

 

193,366

 

 

180,576

 

Provision for (recovery of) credit losses

(27,989

)

 

(1,643

)

 

125,428

 

Net interest income after provision for credit losses

224,229

 

 

195,009

 

 

55,148

 

Non-interest income:

 

 

 

 

 

Deposit service charges and fees

4,900

 

 

4,569

 

 

4,186

 

Gain on sale of loans, net

1,754

 

 

2,425

 

 

3,466

 

Gain (loss) on investment securities, net

2,365

 

 

7,203

 

 

(3,453

)

Lease financing

12,488

 

 

13,547

 

 

15,481

 

Other non-interest income

8,789

 

 

7,536

 

 

3,618

 

Total non-interest income

30,296

 

 

35,280

 

 

23,298

 

Non-interest expense:

 

 

 

 

 

Employee compensation and benefits

59,288

 

 

60,944

 

 

58,887

 

Occupancy and equipment

11,875

 

 

11,797

 

 

12,369

 

Deposit insurance expense

7,450

 

 

6,759

 

 

4,403

 

Professional fees

1,912

 

 

2,937

 

 

3,204

 

Technology and telecommunications

15,741

 

 

16,052

 

 

12,596

 

Depreciation of operating lease equipment

12,217

 

 

12,270

 

 

12,603

 

Other non-interest expense

14,738

 

 

12,565

 

 

14,806

 

Total non-interest expense

123,221

 

 

123,324

 

 

118,868

 

Income (loss) before income taxes

131,304

 

 

106,965

 

 

(40,422

)

Provision (benefit) for income taxes

32,490

 

 

21,228

 

 

(9,471

)

Net income (loss)

$

98,814

 

 

$

85,737

 

 

$

(30,951

)

Earnings (loss) per common share, basic

$

1.06

 

 

$

0.89

 

 

$

(0.33

)

Earnings (loss) per common share, diluted

$

1.06

 

 

$

0.89

 

 

$

(0.33

)

 
 
 
 
 

BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)

 

 

Three Months Ended

March 31, 2021

 

Three Months Ended

December 31, 2020

 

Three Months Ended

March 31, 2020

 

 

 

 

Average

Balance

 

Interest

(1)(2)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest

(1)(2)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest

(1)(2)

 

Yield/

Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

23,549,309

 

 

$

208,821

 

 

3.58

%

 

$

23,706,859

 

 

$

210,896

 

 

3.55

%

 

$

22,850,065

 

 

$

238,108

 

 

4.18

%

Investment securities (3)

9,070,185

 

 

39,188

 

 

1.73

%

 

9,446,389

 

 

42,966

 

 

1.82

%

 

8,107,649

 

 

56,951

 

 

2.81

%

Other interest earning assets

1,062,840

 

 

1,593

 

 

0.61

%

 

726,273

 

 

1,628

 

 

0.89

%

 

646,628

 

 

3,720

 

 

2.31

%

Total interest earning assets

33,682,334

 

 

249,602

 

 

2.98

%

 

33,879,521

 

 

255,490

 

 

3.01

%

 

31,604,342

 

 

298,779

 

 

3.79

%

Allowance for credit losses

(254,438

)

 

 

 

 

 

(280,243

)

 

 

 

 

 

(138,842

)

 

 

 

 

Non-interest earning assets

1,724,176

 

 

 

 

 

 

1,817,476

 

 

 

 

 

 

1,749,752

 

 

 

 

 

Total assets

$

35,152,072

 

 

 

 

 

 

$

35,416,754

 

 

 

 

 

 

$

33,215,252

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

2,942,874

 

 

$

2,774

 

 

0.38

%

 

$

2,903,300

 

 

$

3,637

 

 

0.50

%

 

$

2,173,628

 

 

$

6,959

 

 

1.29

%

Savings and money market deposits

12,793,019

 

 

12,127

 

 

0.38

%

 

11,839,631

 

 

14,517

 

 

0.49

%

 

10,412,202

 

 

37,756

 

 

1.46

%

Time deposits

4,330,781

 

 

7,475

 

 

0.70

%

 

5,360,630

 

 

11,136

 

 

0.83

%

 

7,510,070

 

 

38,107

 

 

2.04

%

Total interest bearing deposits

20,066,674

 

 

22,376

 

 

0.45

%

 

20,103,561

 

 

29,290

 

 

0.58

%

 

20,095,900

 

 

82,822

 

 

1.66

%

Federal funds purchased

8,000

 

 

3

 

 

0.15

%

 

20,707

 

 

6

 

 

0.12

%

 

94,066

 

 

367

 

 

1.56

%

FHLB and PPPLF borrowings

3,072,717

 

 

17,558

 

 

2.32

%

 

3,698,666

 

 

19,207

 

 

2.07

%

 

4,414,830

 

 

25,084

 

 

2.29

%

Notes and other borrowings

722,305

 

 

9,252

 

 

5.12

%

 

722,581

 

 

9,251

 

 

5.12

%

 

429,098

 

 

5,290

 

 

4.93

%

Total interest bearing liabilities

23,869,696

 

 

49,189

 

 

0.83

%

 

24,545,515

 

 

57,754

 

 

0.94

%

 

25,033,894

 

 

113,563

 

 

1.82

%

Non-interest bearing demand deposits

7,491,249

 

 

 

 

 

 

7,152,967

 

 

 

 

 

 

4,368,553

 

 

 

 

 

Other non-interest bearing liabilities

746,973

 

 

 

 

 

 

772,277

 

 

 

 

 

 

749,101

 

 

 

 

 

Total liabilities

32,107,918

 

 

 

 

 

 

32,470,759

 

 

 

 

 

 

30,151,548

 

 

 

 

 

Stockholders' equity

3,044,154

 

 

 

 

 

 

2,945,995

 

 

 

 

 

 

3,063,704

 

 

 

 

 

Total liabilities and stockholders' equity

$

35,152,072

 

 

 

 

 

 

$

35,416,754

 

 

 

 

 

 

$

33,215,252

 

 

 

 

 

Net interest income

 

 

$

200,413

 

 

 

 

 

 

$

197,736

 

 

 

 

 

 

$

185,216

 

 

 

Interest rate spread

 

 

 

 

2.15

%

 

 

 

 

 

2.07

%

 

 

 

 

 

1.97

%

Net interest margin

 

 

 

 

2.39

%

 

 

 

 

 

2.33

%

 

 

 

 

 

2.35

%

______________

(1)

 

On a tax-equivalent basis where applicable

(2)

Annualized

(3)

At fair value except for securities held to maturity

 
 
 
 
 

BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS PER COMMON SHARE
(In thousands except share and per share amounts)

 

 

Three Months Ended March 31,

 

2021

 

2020

Basic earnings per common share:

 

 

 

Numerator:

 

 

 

Net income (loss)

$

98,814

 

 

$

(30,951

)

Distributed and undistributed earnings allocated to participating securities

(1,252

)

 

 

Income (loss) allocated to common stockholders for basic earnings per common share

$

97,562

 

 

$

(30,951

)

Denominator:

 

 

 

Weighted average common shares outstanding

93,075,702

 

 

93,944,529

 

Less average unvested stock awards

(1,205,529

)

 

(1,101,370

)

Weighted average shares for basic earnings (loss) per common share

91,870,173

 

 

92,843,159

 

Basic earnings (loss) per common share

$

1.06

 

 

$

(0.33

)

Diluted earnings (loss) per common share:

 

 

 

Numerator:

 

 

 

Income (loss) allocated to common stockholders for basic earnings per common share

$

97,562

 

 

$

(30,951

)

Adjustment for earnings reallocated from participating securities

1

 

 

 

Income (loss) used in calculating diluted earnings per common share

$

97,563

 

 

$

(30,951

)

Denominator:

 

 

 

Weighted average shares for basic earnings (loss) per common share

91,870,173

 

 

92,843,159

 

Dilutive effect of stock options and certain shared-based awards

93,540

 

 

 

Weighted average shares for diluted earnings per common share

91,963,713

 

 

92,843,159

 

Diluted earnings (loss) per common share

$

1.06

 

 

$

(0.33

)

 
 
 
 
 

BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS

 

 

Three Months Ended March 31,

 

2021

 

2020

Financial ratios (4)

 

 

 

Return on average assets

1.14

%

 

(0.37

)%

Return on average stockholders’ equity

13.2

%

 

(4.1

)%

Net interest margin (3)

2.39

%

 

2.35

%

 

 

March 31, 2021

 

December 31, 2020

Asset quality ratios

 

 

 

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

1.00

%

 

1.02

%

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

0.67

%

 

0.71

%

Allowance for credit losses to total loans

0.95

%

 

1.08

%

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

94.56

%

 

105.26

%

Net charge-offs to average loans (4)

0.17

%

 

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 $48.2 million or 0.21% of total loans and 0.14% of total assets, at March 31, 2021; and $51.3 million or 0.22% of total loans and 0.15% of total assets, at December 31, 2020.

 
 

 

March 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

8.7

%

 

9.8

%

 

8.6

%

 

9.5

%

 

5.0

%

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

13.2

%

 

14.8

%

 

12.6

%

 

13.9

%

 

6.5

%

Total risk-based capital

15.2

%

 

15.5

%

 

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 13.0% and 14.6%, respectively, at March 31, 2021.

Non-GAAP Financial Measures

PPNR 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 and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of the volatility of the provision for credit losses resulting from the COVID-19 pandemic. This measure also provides a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measurement of PPNR to the comparable GAAP financial measurement of income (loss) before income taxes for the three months ended March 31, 2021 and 2020 and the three months ended December 31, 2020 (in thousands):

 

Three Months Ended

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

Income (loss) before income taxes (GAAP)

$

131,304

 

 

$

106,965

 

 

$

(40,422

)

Plus: Provision for (recovery of) credit losses

(27,989

)

 

(1,643

)

 

125,428

 

PPNR (non-GAAP)

$

103,315

 

 

$

105,322

 

 

$

85,006

 

 

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 March 31, 2021 and December 31, 2020 (dollars in thousands):

 

March 31, 2021

 

December 31, 2020

Total loans (GAAP)

$

23,361,067

 

 

$

23,866,042

 

Less: Government insured residential loans

1,759,289

 

 

1,419,074

 

Less: PPP loans

911,951

 

 

781,811

 

Less: MWL

1,145,957

 

 

1,259,408

 

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

$

19,543,870

 

 

$

20,405,749

 

 

 

 

 

 

 

ACL

$

220,934

 

 

$

257,323

 

 

 

 

 

 

 

ACL to total loans (GAAP)

0.95

%

 

1.08

%

 

 

 

 

 

 

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

1.13

%

 

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):

 

March 31, 2021

 

December 31, 2020

 

December 31, 2019

Total stockholders’ equity (GAAP)

$

3,061,835

 

 

$

2,983,012

 

 

$

2,980,779

 

Less: goodwill and other intangible assets

77,637

 

 

77,637

 

 

77,674

 

Tangible stockholders’ equity (non-GAAP)

$

2,984,198

 

 

$

2,905,375

 

 

$

2,903,105

 

 

 

 

 

 

 

Common shares issued and outstanding

93,263,632

 

 

93,067,500

 

 

95,128,231

 

 

 

 

 

 

 

Book value per common share (GAAP)

$

32.83

 

 

$

32.05

 

 

$

31.33

 

 

 

 

 

 

 

Tangible book value per common share (non-GAAP)

$

32.00

 

 

$

31.22

 

 

$

30.52

 

 

 

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

Source: BankUnited, Inc.