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BankUnited, Inc. Reports First Quarter 2022 Results

MIAMI LAKES, Fla.--(BUSINESS WIRE)--Apr. 21, 2022-- BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2022.

"Despite the recent volatility in capital markets, we continue to see strength in our local economies. Consequently we remain optimistic about the rest of 2022 and continue to invest in and grow our core franchise -- one client at a time," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended March 31, 2022, the Company reported net income of $67.2 million, or $0.79 per diluted share, compared to $125.3 million or $1.41 per diluted share for the immediately preceding quarter ended December 31, 2021 and $98.8 million, or $1.06 per diluted share, for the quarter ended March 31, 2021. As previously reported, earnings for the quarter ended December 31, 2021 were impacted by discrete income tax benefits of $69.1 million and a $44.8 million pre-tax loss on discontinuance of hedges. Earnings for the quarter ended March 31, 2021 were favorably impacted by a $28.0 million recovery of the provision for credit losses.

Quarterly Highlights

  • Our new corporate banking office in Atlanta marks a renewed effort to expand outside of our core geographic markets of Florida and New York. We also expect to open a full service banking branch in the Dallas area in late April, 2022.
  • In March, 2022 Newsweek named BankUnited one of America's most trusted companies. BankUnited was ranked #4 among banks on this list.
  • The Company announced an increase of $0.02 in its cash dividend for the quarter ended March 31, 2022, to $0.25 per common share, reflecting a 9% increase from the previous quarterly dividend of $0.23 per common share.
  • The net interest margin, calculated on a tax-equivalent basis, expanded to 2.50% for the quarter ended March 31, 2022 from 2.44% for the immediately preceding quarter and 2.39% for the quarter ended March 31, 2021. Net interest income increased by $2.6 million compared to the immediately preceding quarter ended December 31, 2021 and by $12.4 million compared to the quarter ended March 31, 2021.
  • The average cost of total deposits was 0.17% for the quarter ended March 31, 2022 compared to 0.19% for the immediately preceding quarter ended December 31, 2021 and 0.33% for the quarter ended March 31, 2021. On a spot basis, the average annual percentage yield ("APY") on total deposits was 0.16% at both March 31, 2022 and December 31, 2021.
  • Non-interest bearing demand deposits grew by $688 million during the quarter ended March 31, 2022. At March 31, 2022, non-interest bearing demand deposits represented 34% of total deposits, compared to 30% of total deposits at December 31, 2021. Total deposits declined by $897 million during the quarter ended March 31, 2022, with declines in interest bearing demand, savings and money market and time deposits.
  • Total loans, excluding the runoff of PPP loans, declined by $227 million for the quarter ended March 31, 2022, while average loans, excluding PPP loans, increased by $586 million.
  • The ratio of non-performing loans to total loans declined to 0.65% at March 31, 2022 from 0.87% at December 31, 2021. The guaranteed portion of SBA loans on non-accrual status represented 0.18% of total loans at March 31, 2022. Criticized and classified loans continued to decline. During the quarter ended March 31, 2022, total criticized and classified loans declined by $280 million.
  • For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million compared to a provision of $0.2 million for the immediately preceding quarter ended December 31, 2021 and a recovery of the provision for credit losses of $(28.0) million for the quarter ended March 31, 2021.
  • Results for the quarter were impacted by declines in the fair value of investment securities. Accumulated other comprehensive income declined by $142 million for the quarter ended March 31, 2022, primarily due to an increase in unrealized losses on investment securities available for sale. Non-interest income was impacted by a $10.5 million decline in the fair value of certain preferred stock investments. These declines in the fair value of securities resulted primarily from widening spreads and rising interest rates related to the Fed's plans for quantitative tightening and benchmark interest rate increases, as well as inflationary concerns. None of the unrealized losses were attributable to credit loss impairments; the Company expects to recover the amortized cost basis of its available for sale securities.
  • At March 31, 2022, book value per common share and tangible book value per common share were $34.04 and $33.12, respectively.
  • As previously reported, on February 2, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended March 31, 2022, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $82.1 million, at a weighted average price of $42.50 per share.

Loans

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

 

March 31, 2022

 

December 31, 2021

Residential and other consumer loans

$

8,612,839

 

36.8

%

 

$

8,368,380

 

35.2

%

Multi-family

 

1,072,981

 

4.6

%

 

 

1,154,738

 

4.9

%

Non-owner occupied commercial real estate

 

4,284,675

 

18.3

%

 

 

4,381,610

 

18.4

%

Construction and land

 

176,825

 

0.8

%

 

 

165,390

 

0.7

%

Owner occupied commercial real estate

 

1,905,395

 

8.2

%

 

 

1,944,658

 

8.2

%

Commercial and industrial

 

4,951,999

 

21.2

%

 

 

4,790,275

 

20.2

%

PPP

 

80,296

 

0.3

%

 

 

248,505

 

1.0

%

Pinnacle

 

935,915

 

4.0

%

 

 

919,641

 

3.9

%

Bridge - franchise finance

 

306,563

 

1.3

%

 

 

342,124

 

1.4

%

Bridge - equipment finance

 

341,369

 

1.5

%

 

 

357,599

 

1.5

%

Mortgage warehouse lending ("MWL")

 

701,172

 

3.0

%

 

 

1,092,133

 

4.6

%

 

$

23,370,029

 

100.0

%

 

$

23,765,053

 

100.0

%

Residential and other consumer loans grew by $244 million during the quarter ended March 31, 2022. Commercial and industrial loans, including owner-occupied commercial real estate, grew by $122 million for the quarter. Most of the remaining commercial portfolio segments showed declines for the quarter. MWL utilization declined to 39% at March 31, 2022 compared to 56% at December 31, 2021 as rising rates have led to lower refinancing activity and this segment is evidencing a return to historically normal seasonal utilization patterns. PPP loans declined by $168 million during the quarter ended March 31, 2022, resulting from full or partial forgiveness from the Small Business Administration.

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

Non-performing loans totaled $150.8 million or 0.65% of total loans at March 31, 2022, compared to $205.9 million or 0.87% of total loans at December 31, 2021. Non-performing loans included $41.9 million and $46.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.18% of total loans at March 31, 2022 and 0.19% of total loans at December 31, 2021.

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

 

March 31,
2022

 

December 31,
2021

Special mention

$

95,250

 

$

148,593

Substandard - accruing

 

956,318

 

 

1,136,378

Substandard - non-accruing

 

104,329

 

 

129,579

Doubtful

 

26,678

 

 

47,754

Total

$

1,182,575

 

$

1,462,304

Loans currently under short-term deferral or modified under the CARES Act totaled $149 million at March 31, 2022, down from a total of $205 million at December 31, 2021.

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the three months ended March 31, 2022 and year ended December 31, 2021 (dollars in thousands):

 

ACL

 

ACL to Total
Loans (1)

 

ACL to Non-
Performing Loans

 

Net Charge-offs to
Average Loans(2)

December 31, 2021

$

126,457

 

0.53

%

 

61.41

%

 

0.29

%

March 31, 2022

$

125,443

 

0.54

%

 

83.17

%

 

0.15

%

______________________________

(1)

ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61% and 0.62% at March 31, 2022 and December 31, 2021, respectively.

(2)

Annualized for the three months ended March 31, 2022.

The ACL at March 31, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in March 2022, economic information provided by additional sources including developments subsequent to publishing of the scenarios, information about borrower financial condition and collateral values and other relevant information.

For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million, which included a provision of $7.4 million related to funded loans and a $0.4 million provision related to unfunded loan commitments. The most significant factor impacting the provision for credit losses for the quarter ended March 31, 2022 was an increase in qualitative loss factors related to economic uncertainty.

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

 

Three Months Ended March 31,

 

2022

 

2021

Beginning balance

$

126,457

 

 

$

257,323

 

Provision (recovery)

 

7,446

 

 

 

(26,306

)

Net charge-offs

 

(8,460

)

 

 

(10,083

)

Ending balance

$

125,443

 

 

$

220,934

 

Funding

Total deposits declined by $897 million for the quarter ended March 31, 2022. The majority of deposit outflows were accounts that, based on prior experience, we would expect to be price sensitive in a rising rate environment. While we initially did not anticipate growth in the securities portfolio, total investment securities increased by $508 million for the quarter as we took advantage of opportunities to purchase securities at attractive spreads. Correspondingly, FHLB advances increased by $1.5 billion during the quarter ended March 31, 2022.

Net Interest Income

Net interest income for the quarter ended March 31, 2022 was $208.6 million compared to $206.0 million for the immediately preceding quarter ended December 31, 2021 and $196.2 million for the quarter ended March 31, 2021. The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.50% for the quarter ended March 31, 2022, from 2.44% for the immediately preceding quarter ended December 31, 2021. Factors impacting the net interest margin for the quarter ended March 31, 2022 included:

  • The tax-equivalent yield on investment securities increased to 1.73% for the quarter ended March 31, 2022 from 1.54% for the quarter ended December 31, 2021. This increase resulted from the impact of purchases of higher-yielding securities and the impact of slower prepayment speeds on securities purchased at a premium.
  • The tax-equivalent yield on loans decreased to 3.36% for the quarter ended March 31, 2022, from 3.50% for the quarter ended December 31, 2021. Factors that contributed to the decline included slower prepayment speeds on PCD residential loans, the effect of the sale of a pool of higher yielding residential loans during the fourth quarter of 2021, and runoff of loans originated in a comparatively higher rate environment.
  • The average rate paid on FHLB advances decreased to 1.11% for the quarter ended March 31, 2022, from 1.86% for the quarter ended December 31, 2021. This decrease resulted from the maturity of higher rate advances, including the termination of certain cash flow hedges during the quarter ended December 31, 2021, and the addition of new advances at comparatively lower prevailing rates.
  • The average rate paid on interest bearing deposits decreased to 0.24% for the quarter ended March 31, 2022, from 0.27% for the quarter ended December 31, 2021. Callable and other brokered CDs and cash flow hedges entered into in anticipation of rising rates impacted the cost of deposits for the quarter; the average rate paid on interest bearing deposits excluding these instruments was 0.21% for the quarter ended March 31, 2022. The increase in the average cost of time deposits for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021 was attributable to these products. The average cost of time deposits other than these products was 0.22% for the quarter ended March 31, 2022.

Non-interest income and Non-interest expense

Non-interest income totaled $14.3 million for the quarter ended March 31, 2022 compared to $45.6 million for the quarter ended December 31, 2021 and $30.3 million for the quarter ended March 31, 2021.

  • Gain (loss) on investment securities was a net loss of $(7.9) million for the quarter ended March 31, 2022 compared to net gains of $0.6 million and $2.4 million for the quarters ended December 31, 2021 and March 31, 2021, respectively. The net loss for the quarter ended March 31, 2022 was attributable to a $10.5 million decline in the fair value of certain preferred stock investments resulting from rising market interest rates.
  • As previously disclosed, gain on sale of loans for the quarter ended December 31, 2021 included a gain of $18.2 million on the sale of a pool of residential mortgages.
  • Other non-interest income for the quarter ended March 31, 2022 compared to the quarters ended December 31, 2021 and March 31, 2021 reflected declines in income related to investments in bank-owned life insurance, and as compared to the quarter ended March 31, 2021, a decline in revenue related to our commercial derivative program.

Non-interest expense totaled $126.3 million for the quarter ended March 31, 2022 compared to $123.2 million for the quarter ended March 31, 2021 and $187.9 million for the quarter ended December 31, 2021.

  • The most significant offsetting factors contributing to the increase in non-interest expense compared to the quarter ended March 31, 2021 were (i) a $7.8 million increase in employee compensation and benefits and (ii) a $4.0 million decline in deposit insurance expense reflecting a decrease in the FDIC assessment rate.
  • Non-interest expense for the quarter ended December 31, 2021 included a $44.8 million loss on discontinuance of cash flow hedges. Employee compensation and benefits declined by $3.5 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021. The quarter ended December 31, 2021 included $6.8 million related to a special employee bonus.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, April 21, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.

The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 6761489. A replay of the call will be available from 12:00 p.m. ET on April 21st through 11:59 p.m. ET on April 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 6761489. 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 $36.3 billion at March 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 62 banking centers in 12 Florida counties and 4 banking centers in the New York metropolitan area.

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 external circumstances outside the Company's direct control. 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, 2021 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,
2022

 

December 31,
2021

ASSETS

 

 

 

Cash and due from banks:

 

 

 

Non-interest bearing

$

17,780

 

 

$

19,143

 

Interest bearing

 

679,712

 

 

 

295,714

 

Cash and cash equivalents

 

697,492

 

 

 

314,857

 

Investment securities (including securities recorded at fair value of $10,562,098 and $10,054,198)

 

10,572,098

 

 

 

10,064,198

 

Non-marketable equity securities

 

190,534

 

 

 

135,859

 

Loans

 

23,370,029

 

 

 

23,765,053

 

Allowance for credit losses

 

(125,443

)

 

 

(126,457

)

Loans, net

 

23,244,586

 

 

 

23,638,596

 

Bank owned life insurance

 

314,697

 

 

 

309,477

 

Operating lease equipment, net

 

627,146

 

 

 

640,726

 

Goodwill

 

77,637

 

 

 

77,637

 

Other assets

 

607,434

 

 

 

634,046

 

Total assets

$

36,331,624

 

 

$

35,815,396

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Liabilities:

 

 

 

Demand deposits:

 

 

 

Non-interest bearing

$

9,663,307

 

 

$

8,975,621

 

Interest bearing

 

2,872,430

 

 

 

3,709,493

 

Savings and money market

 

13,029,823

 

 

 

13,368,745

 

Time

 

2,975,715

 

 

 

3,384,243

 

Total deposits

 

28,541,275

 

 

 

29,438,102

 

Federal funds purchased

 

199,000

 

 

 

199,000

 

FHLB advances

 

3,395,000

 

 

 

1,905,000

 

Notes and other borrowings

 

721,291

 

 

 

721,416

 

Other liabilities

 

613,826

 

 

 

514,117

 

Total liabilities

 

33,470,392

 

 

 

32,777,635

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 84,052,021 and 85,647,986 shares issued and outstanding

 

841

 

 

 

856

 

Paid-in capital

 

626,564

 

 

 

707,503

 

Retained earnings

 

2,391,526

 

 

 

2,345,342

 

Accumulated other comprehensive loss

 

(157,699

)

 

 

(15,940

)

Total stockholders' equity

 

2,861,232

 

 

 

3,037,761

 

Total liabilities and stockholders' equity

$

36,331,624

 

 

$

35,815,396

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

 

2022

 

2021

 

2021

Interest income:

 

 

 

 

 

Loans

$

191,562

 

 

$

198,275

 

 

$

205,335

 

Investment securities

 

43,048

 

 

 

38,201

 

 

 

38,501

 

Other

 

1,354

 

 

 

1,397

 

 

 

1,593

 

Total interest income

 

235,964

 

 

 

237,873

 

 

 

245,429

 

Interest expense:

 

 

 

 

 

Deposits

 

11,857

 

 

 

13,631

 

 

 

22,376

 

Borrowings

 

15,465

 

 

 

18,227

 

 

 

26,813

 

Total interest expense

 

27,322

 

 

 

31,858

 

 

 

49,189

 

Net interest income before provision for credit losses

 

208,642

 

 

 

206,015

 

 

 

196,240

 

Provision for (recovery of) credit losses

 

7,830

 

 

 

246

 

 

 

(27,989

)

Net interest income after provision for credit losses

 

200,812

 

 

 

205,769

 

 

 

224,229

 

Non-interest income:

 

 

 

 

 

Deposit service charges and fees

 

5,960

 

 

 

5,815

 

 

 

4,900

 

Gain (loss) on sale of loans, net

 

(824

)

 

 

19,003

 

 

 

1,754

 

Gain (loss) on investment securities, net

 

(7,868

)

 

 

590

 

 

 

2,365

 

Lease financing

 

13,415

 

 

 

14,041

 

 

 

12,488

 

Other non-interest income

 

3,618

 

 

 

6,173

 

 

 

8,789

 

Total non-interest income

 

14,301

 

 

 

45,622

 

 

 

30,296

 

Non-interest expense:

 

 

 

 

 

Employee compensation and benefits

 

67,088

 

 

 

70,561

 

 

 

59,288

 

Occupancy and equipment

 

11,512

 

 

 

12,817

 

 

 

11,875

 

Deposit insurance expense

 

3,403

 

 

 

3,471

 

 

 

7,450

 

Professional fees

 

2,262

 

 

 

8,023

 

 

 

1,912

 

Technology and telecommunications

 

17,004

 

 

 

18,221

 

 

 

15,741

 

Discontinuance of cash flow hedges

 

 

 

 

44,833

 

 

 

 

Depreciation and impairment of operating lease equipment

 

12,610

 

 

 

15,769

 

 

 

12,217

 

Other non-interest expense

 

12,445

 

 

 

14,165

 

 

 

14,738

 

Total non-interest expense

 

126,324

 

 

 

187,860

 

 

 

123,221

 

Income before income taxes

 

88,789

 

 

 

63,531

 

 

 

131,304

 

Provision (benefit) for income taxes

 

21,639

 

 

 

(61,724

)

 

 

32,490

 

Net income

$

67,150

 

 

$

125,255

 

 

$

98,814

 

Earnings per common share, basic

$

0.79

 

 

$

1.42

 

 

$

1.06

 

Earnings per common share, diluted

$

0.79

 

 

$

1.41

 

 

$

1.06

 

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

 

 

 

 

 

 

 

Three Months Ended
March 31, 2022

 

Three Months Ended
December 31, 2021

 

Three Months Ended
March 31, 2021

 

 

 

 

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

$

23,349,143

 

 

$

194,551

 

3.36

%

 

$

22,919,535

 

 

$

201,345

 

3.50

%

 

$

23,549,309

 

 

$

208,821

 

3.58

%

Investment securities (3)

 

10,083,083

 

 

 

43,719

 

1.73

%

 

 

10,113,026

 

 

 

38,889

 

1.54

%

 

 

9,070,185

 

 

 

39,188

 

1.73

%

Other interest earning assets

 

674,640

 

 

 

1,354

 

0.81

%

 

 

1,184,056

 

 

 

1,397

 

0.47

%

 

 

1,062,840

 

 

 

1,593

 

0.61

%

Total interest earning assets

 

34,106,866

 

 

 

239,624

 

2.83

%

 

 

34,216,617

 

 

 

241,631

 

2.81

%

 

 

33,682,334

 

 

 

249,602

 

2.98

%

Allowance for credit losses

 

(129,028

)

 

 

 

 

 

 

(149,319

)

 

 

 

 

 

 

(254,438

)

 

 

 

 

Non-interest earning assets

 

1,674,476

 

 

 

 

 

 

 

1,767,850

 

 

 

 

 

 

 

1,724,176

 

 

 

 

 

Total assets

$

35,652,314

 

 

 

 

 

 

$

35,835,148

 

 

 

 

 

 

$

35,152,072

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

3,078,037

 

 

$

1,364

 

0.18

%

 

$

3,058,355

 

 

$

1,481

 

0.19

%

 

$

2,942,874

 

 

$

2,774

 

0.38

%

Savings and money market deposits

 

13,401,332

 

 

 

6,931

 

0.21

%

 

 

13,460,084

 

 

 

9,619

 

0.28

%

 

 

12,793,019

 

 

 

12,127

 

0.38

%

Time deposits

 

3,319,585

 

 

 

3,562

 

0.44

%

 

 

3,399,302

 

 

 

2,531

 

0.30

%

 

 

4,330,781

 

 

 

7,475

 

0.70

%

Total interest bearing deposits

 

19,798,954

 

 

 

11,857

 

0.24

%

 

 

19,917,741

 

 

 

13,631

 

0.27

%

 

 

20,066,674

 

 

 

22,376

 

0.45

%

Federal funds purchased

 

187,539

 

 

 

58

 

0.13

%

 

 

56,793

 

 

 

13

 

0.09

%

 

 

8,000

 

 

 

3

 

0.15

%

FHLB advances

 

2,248,889

 

 

 

6,146

 

1.11

%

 

 

1,909,450

 

 

 

8,957

 

1.86

%

 

 

3,072,717

 

 

 

17,558

 

2.32

%

Notes and other borrowings

 

721,405

 

 

 

9,261

 

5.13

%

 

 

721,525

 

 

 

9,257

 

5.13

%

 

 

722,305

 

 

 

9,252

 

5.12

%

Total interest bearing liabilities

 

22,956,787

 

 

 

27,322

 

0.48

%

 

 

22,605,509

 

 

 

31,858

 

0.56

%

 

 

23,869,696

 

 

 

49,189

 

0.83

%

Non-interest bearing demand deposits

 

9,047,864

 

 

 

 

 

 

 

9,330,805

 

 

 

 

 

 

 

7,491,249

 

 

 

 

 

Other non-interest bearing liabilities

 

623,199

 

 

 

 

 

 

 

785,254

 

 

 

 

 

 

 

746,973

 

 

 

 

 

Total liabilities

 

32,627,850

 

 

 

 

 

 

 

32,721,568

 

 

 

 

 

 

 

32,107,918

 

 

 

 

 

Stockholders' equity

 

3,024,464

 

 

 

 

 

 

 

3,113,580

 

 

 

 

 

 

 

3,044,154

 

 

 

 

 

Total liabilities and stockholders' equity

$

35,652,314

 

 

 

 

 

 

$

35,835,148

 

 

 

 

 

 

$

35,152,072

 

 

 

 

 

Net interest income

 

 

$

212,302

 

 

 

 

 

$

209,773

 

 

 

 

 

$

200,413

 

 

Interest rate spread

 

 

 

 

2.35

%

 

 

 

 

 

2.25

%

 

 

 

 

 

2.15

%

Net interest margin

 

 

 

 

2.50

%

 

 

 

 

 

2.44

%

 

 

 

 

 

2.39

%

______________________________

(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,

 

2022

 

2021

Basic earnings per common share:

 

 

 

Numerator:

 

 

 

Net income

$

67,150

 

 

$

98,814

 

Distributed and undistributed earnings allocated to participating securities

 

(929

)

 

 

(1,252

)

Income allocated to common stockholders for basic earnings per common share

$

66,221

 

 

$

97,562

 

Denominator:

 

 

 

Weighted average common shares outstanding

 

84,983,873

 

 

 

93,075,702

 

Less average unvested stock awards

 

(1,211,807

)

 

 

(1,205,529

)

Weighted average shares for basic earnings per common share

 

83,772,066

 

 

 

91,870,173

 

Basic earnings per common share

$

0.79

 

 

$

1.06

 

Diluted earnings per common share:

 

 

 

Numerator:

 

 

 

Income allocated to common stockholders for basic earnings per common share

$

66,221

 

 

$

97,562

 

Adjustment for earnings reallocated from participating securities

 

1

 

 

 

1

 

Income used in calculating diluted earnings per common share

$

66,222

 

 

$

97,563

 

Denominator:

 

 

 

Weighted average shares for basic earnings per common share

 

83,772,066

 

 

 

91,870,173

 

Dilutive effect of certain share-based awards

 

137,704

 

 

 

93,540

 

Weighted average shares for diluted earnings per common share

 

83,909,770

 

 

 

91,963,713

 

Diluted earnings per common share

$

0.79

 

 

$

1.06

 

BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS

 

 

 

Three Months Ended March 31,

 

2022

 

2021

Financial ratios (4)

 

 

 

Return on average assets

0.76

%

 

1.14

%

Return on average stockholders’ equity

9.0

%

 

13.2

%

Net interest margin (3)

2.50

%

 

2.39

%

 

March 31,
2022

 

December 31,
2021

Asset quality ratios

 

 

 

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

0.65

%

 

0.87

%

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

0.42

%

 

0.58

%

Allowance for credit losses to total loans

0.54

%

 

0.53

%

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

83.17

%

 

61.41

%

Net charge-offs to average loans (4)

0.15

%

 

0.29

%

______________________________

(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 $41.9 million or 0.18% of total loans and 0.12% of total assets at March 31, 2022; and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021.

 

March 31, 2022

 

December 31, 2021

 

Required to be
Considered Well
Capitalized

 

BankUnited, Inc.

 

BankUnited, N.A.

 

BankUnited, Inc.

 

BankUnited, N.A.

 

Capital ratios

 

 

 

 

 

 

 

 

 

Tier 1 leverage

8.3

%

 

9.6

%

 

8.4

%

 

9.6

%

 

5.0

%

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

12.5

%

 

14.5

%

 

12.6

%

 

14.5

%

 

6.5

%

Total risk-based capital

14.3

%

 

15.0

%

 

14.3

%

 

14.9

%

 

10.0

%

Non-GAAP Financial Measures

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

 

March 31,
2022

 

December 31,
2021

Total loans (GAAP)

$

23,370,029

 

 

$

23,765,053

 

Less: Government insured residential loans

 

1,938,479

 

 

 

2,023,221

 

Less: PPP loans

 

80,296

 

 

 

248,505

 

Less: MWL

 

701,172

 

 

 

1,092,133

 

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

$

20,650,082

 

 

$

20,401,194

 

 

 

 

 

ACL

$

125,443

 

 

$

126,457

 

 

 

 

 

ACL to total loans (GAAP)

 

0.54

%

 

 

0.53

%

 

 

 

 

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

 

0.61

%

 

 

0.62

%

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,
2022

 

December 31,
2021

Total stockholders’ equity (GAAP)

$

2,861,232

 

$

3,037,761

Less: goodwill

 

77,637

 

 

77,637

Tangible stockholders’ equity (non-GAAP)

$

2,783,595

 

$

2,960,124

 

 

 

 

Common shares issued and outstanding

 

84,052,021

 

 

85,647,986

 

 

 

 

Book value per common share (GAAP)

$

34.04

 

$

35.47

 

 

 

 

Tangible book value per common share (non-GAAP)

$

33.12

 

$

34.56

 

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

Source: BankUnited, Inc.