"This quarter saw strong loan growth and margin expansion. We celebrated the opening of our
For the quarter ended
Quarterly Highlights
-
During the second quarter, we continued to build out our wholesale banking teams in
Atlanta and opened a banking center inDallas .
-
Total loans, excluding the runoff of PPP loans, grew by
$780 million , of which$553 million was in commercial segments, for the quarter endedJune 30, 2022 .
-
Average non-interest bearing demand deposits increased by
$371 million for the quarter. Total deposits remained relatively consistent with the prior quarter-end, declining by$80 million , while non-interest bearing demand deposits declined by$18 million atJune 30, 2022 compared toMarch 31, 2022 . AtJune 30, 2022 , non-interest bearing demand deposits represented 34% of total deposits, consistent with the prior quarter-end.
-
The net interest margin, calculated on a tax-equivalent basis, expanded to 2.63% for the quarter ended
June 30, 2022 from 2.50% for the immediately preceding quarter and 2.37% for the quarter endedJune 30, 2021 . Net interest income increased by$16.8 million compared to the immediately preceding quarter endedMarch 31, 2022 and by$27.1 million compared to the quarter endedJune 30, 2021 .
-
In response to the rising interest rate environment, the average cost of total deposits increased to 0.30% for the quarter ended
June 30, 2022 , from 0.17% for the immediately preceding quarter endedMarch 31, 2022 and 0.25% for the quarter endedJune 30, 2021 . On a spot basis, the average annual percentage yield on total deposits increased to 0.45% atJune 30, 2022 , from 0.16% atMarch 31, 2022 .
-
For the quarter ended
June 30, 2022 , the Company recorded a provision for credit losses of$24.0 million compared to a provision of$7.8 million for the immediately preceding quarter endedMarch 31, 2022 and a recovery of the provision for credit losses of$(27.5) million for the quarter endedJune 30, 2021 . The ratio of the ACL to total loans was consistent with the prior quarter-end at 0.54%.
-
The ratio of non-performing loans to total loans was 0.60% at
June 30, 2022 compared to 0.65% atMarch 31, 2022 . The guaranteed portion of SBA loans on non-accrual status represented 0.18% of total loans and 30% of non-performing loans atJune 30, 2022 . The positive trend in levels of criticized and classified loans continued during the quarter endedJune 30, 2022 with a decline of$181 million and the annualized net charge-off ratio declined to 0.23% from 0.29% for the year endedDecember 31, 2021 .
-
Results for the quarter continued to be impacted by declines in the fair value of investment securities. Accumulated other comprehensive loss increased by
$163 million for the quarter endedJune 30, 2022 , primarily due to an increase in unrealized losses on investment securities available for sale. Non-interest income was impacted by a$9.3 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 quantitative tightening and 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
June 30, 2022 , book value per common share and tangible book value per common share were$32.15 and$31.16 , respectively.
-
During the quarter ended
June 30, 2022 , the Company repurchased approximately 6.1 million shares of its common stock for an aggregate purchase price of$243.6 million , at a weighted average price of$39.94 per share.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
|
|
|
|
|
|
|
||||||||||||
|
Residential and other consumer loans |
$ |
8,840,387 |
|
36.7 |
% |
|
$ |
8,612,839 |
|
36.8 |
% |
|
$ |
8,368,380 |
|
35.2 |
% |
|
Multi-family |
|
1,017,500 |
|
4.2 |
% |
|
|
1,072,981 |
|
4.6 |
% |
|
|
1,154,738 |
|
4.9 |
% |
|
Non-owner occupied commercial real estate |
|
4,276,697 |
|
17.7 |
% |
|
|
4,284,675 |
|
18.3 |
% |
|
|
4,381,610 |
|
18.4 |
% |
|
Construction and land |
|
213,833 |
|
0.9 |
% |
|
|
176,825 |
|
0.8 |
% |
|
|
165,390 |
|
0.7 |
% |
|
Owner occupied commercial real estate |
|
1,907,349 |
|
7.9 |
% |
|
|
1,905,395 |
|
8.2 |
% |
|
|
1,944,658 |
|
8.2 |
% |
|
Commercial and industrial |
|
5,423,998 |
|
22.5 |
% |
|
|
4,951,999 |
|
21.2 |
% |
|
|
4,790,275 |
|
20.2 |
% |
|
PPP |
|
29,828 |
|
0.1 |
% |
|
|
80,296 |
|
0.3 |
% |
|
|
248,505 |
|
1.0 |
% |
|
Pinnacle |
|
977,930 |
|
4.1 |
% |
|
|
935,915 |
|
4.0 |
% |
|
|
919,641 |
|
3.9 |
% |
|
Bridge - franchise finance |
|
262,570 |
|
1.1 |
% |
|
|
306,563 |
|
1.3 |
% |
|
|
342,124 |
|
1.4 |
% |
|
Bridge - equipment finance |
|
333,125 |
|
1.4 |
% |
|
|
341,369 |
|
1.5 |
% |
|
|
357,599 |
|
1.5 |
% |
|
Mortgage warehouse lending ("MWL") |
|
816,797 |
|
3.4 |
% |
|
|
701,172 |
|
3.0 |
% |
|
|
1,092,133 |
|
4.6 |
% |
|
|
$ |
24,100,014 |
|
100.0 |
% |
|
$ |
23,370,029 |
|
100.0 |
% |
|
$ |
23,765,053 |
|
100.0 |
% |
In aggregate, commercial loans, excluding the runoff of PPP, grew by
Asset Quality and the Allowance for Credit Losses ("ACL")
Non-performing loans totaled
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
|
|
|
|
|
|
|
|||
|
Special mention |
$ |
89,153 |
|
$ |
95,250 |
|
$ |
148,593 |
|
Substandard - accruing |
|
787,399 |
|
|
956,318 |
|
|
1,136,378 |
|
Substandard - non-accruing |
|
117,518 |
|
|
104,329 |
|
|
129,579 |
|
Doubtful |
|
7,971 |
|
|
26,678 |
|
|
47,754 |
|
Total |
$ |
1,002,041 |
|
$ |
1,182,575 |
|
$ |
1,462,304 |
The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended
|
|
ACL |
|
ACL to Total
|
|
ACL to Non-
|
|
Net Charge-offs to
|
||||
|
|
$ |
126,457 |
|
0.53 |
% |
|
61.41 |
% |
|
0.29 |
% |
|
|
$ |
125,443 |
|
0.54 |
% |
|
83.17 |
% |
|
0.15 |
% |
|
|
$ |
130,239 |
|
0.54 |
% |
|
90.45 |
% |
|
0.23 |
% |
| ______________________________ | ||
|
(1) |
ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61%, at both |
|
|
(2) |
Annualized for the three months ended |
|
The ACL at
For the quarter ended
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Beginning balance |
$ |
125,443 |
|
|
$ |
220,934 |
|
|
$ |
126,457 |
|
|
$ |
257,323 |
|
|
Provision (recovery) |
|
23,207 |
|
|
|
(27,663 |
) |
|
|
30,653 |
|
|
|
(53,969 |
) |
|
Net charge-offs |
|
(18,411 |
) |
|
|
(17,629 |
) |
|
|
(26,871 |
) |
|
|
(27,712 |
) |
|
Ending balance |
$ |
130,239 |
|
|
$ |
175,642 |
|
|
$ |
130,239 |
|
|
$ |
175,642 |
|
Net Interest Income
Net interest income for the quarter ended
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.13% to 2.63% for the quarter ended
-
The tax-equivalent yield on investment securities increased to 2.12% for the quarter ended
June 30, 2022 , from 1.73% for the quarter endedMarch 31, 2022 . This increase resulted from the reset of coupon rates on variable rate securities and purchases of higher-yielding securities.
-
The tax-equivalent yield on loans increased to 3.59% for the quarter ended
June 30, 2022 , from 3.36% for the quarter endedMarch 31, 2022 . The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.
-
The average rate paid on interest bearing deposits increased to 0.45% for the quarter ended
June 30, 2022 , from 0.24% for the quarter endedMarch 31, 2022 , primarily in response to the rising interest rate environment.
Non-interest income and Non-interest expense
Non-interest income totaled
-
Gain (loss) on investment securities was a net loss of
$(8.4) million for the quarter endedJune 30, 2022 compared to a net loss of$(7.9) million for the quarter endedMarch 31, 2022 , and a net gain of$4.2 million for the quarter endedJune 30, 2021 . The net losses for the quarters endedJune 30, 2022 andMarch 31, 2022 were attributable to$9.3 million and$10.5 million declines, respectively, in the fair value of certain preferred stock investments resulting from rising market interest rates.
-
The decline in other non-interest income for the quarter ended
June 30, 2022 compared to the quarter endedJune 30, 2021 reflected declines in BOLI revenue and gain on sale of loans.
Employee compensation and benefits declined by
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BI46cdf2737b4a45dc8e0f6a39d5fdf9c1. For those unable to join the live event, an archived webcast will be available in the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance.
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without 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
|
|
|||||||
|
CONSOLIDATED BALANCE SHEETS - UNAUDITED |
|||||||
|
(In thousands, except share and per share data) |
|||||||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
||||
|
Cash and due from banks: |
|
|
|
||||
|
Non-interest bearing |
$ |
18,531 |
|
|
$ |
19,143 |
|
|
Interest bearing |
|
495,242 |
|
|
|
295,714 |
|
|
Cash and cash equivalents |
|
513,773 |
|
|
|
314,857 |
|
|
Investment securities (including securities recorded at fair value of |
|
10,103,504 |
|
|
|
10,064,198 |
|
|
Non-marketable equity securities |
|
213,409 |
|
|
|
135,859 |
|
|
Loans |
|
24,100,014 |
|
|
|
23,765,053 |
|
|
Allowance for credit losses |
|
(130,239 |
) |
|
|
(126,457 |
) |
|
Loans, net |
|
23,969,775 |
|
|
|
23,638,596 |
|
|
Bank owned life insurance |
|
310,970 |
|
|
|
309,477 |
|
|
Operating lease equipment, net |
|
605,769 |
|
|
|
640,726 |
|
|
|
|
77,637 |
|
|
|
77,637 |
|
|
Other assets |
|
756,567 |
|
|
|
634,046 |
|
|
Total assets |
$ |
36,551,404 |
|
|
$ |
35,815,396 |
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Liabilities: |
|
|
|
||||
|
Demand deposits: |
|
|
|
||||
|
Non-interest bearing |
$ |
9,645,056 |
|
|
$ |
8,975,621 |
|
|
Interest bearing |
|
2,868,417 |
|
|
|
3,709,493 |
|
|
Savings and money market |
|
13,222,845 |
|
|
|
13,368,745 |
|
|
Time |
|
2,724,581 |
|
|
|
3,384,243 |
|
|
Total deposits |
|
28,460,899 |
|
|
|
29,438,102 |
|
|
Federal funds purchased |
|
— |
|
|
|
199,000 |
|
|
FHLB advances |
|
4,005,000 |
|
|
|
1,905,000 |
|
|
Notes and other borrowings |
|
721,166 |
|
|
|
721,416 |
|
|
Other liabilities |
|
858,322 |
|
|
|
514,117 |
|
|
Total liabilities |
|
34,045,387 |
|
|
|
32,777,635 |
|
|
|
|
|
|
||||
|
Commitments and contingencies |
|
|
|
||||
|
|
|
|
|
||||
|
Stockholders' equity: |
|
|
|
||||
|
Common stock, par value |
|
779 |
|
|
|
856 |
|
|
Paid-in capital |
|
387,583 |
|
|
|
707,503 |
|
|
Retained earnings |
|
2,438,050 |
|
|
|
2,345,342 |
|
|
Accumulated other comprehensive loss |
|
(320,395 |
) |
|
|
(15,940 |
) |
|
Total stockholders' equity |
|
2,506,017 |
|
|
|
3,037,761 |
|
|
Total liabilities and stockholders' equity |
$ |
36,551,404 |
|
|
$ |
35,815,396 |
|
|
|
|||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|||||||||||||||||||
|
(In thousands, except per share data) |
|||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans |
$ |
209,223 |
|
|
$ |
191,562 |
|
|
$ |
202,520 |
|
|
$ |
400,785 |
|
|
$ |
407,855 |
|
|
Investment securities |
|
54,771 |
|
|
|
43,048 |
|
|
|
37,674 |
|
|
|
97,819 |
|
|
|
76,175 |
|
|
Other |
|
2,979 |
|
|
|
1,354 |
|
|
|
1,607 |
|
|
|
4,333 |
|
|
|
3,200 |
|
|
Total interest income |
|
266,973 |
|
|
|
235,964 |
|
|
|
241,801 |
|
|
|
502,937 |
|
|
|
487,230 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits |
|
20,501 |
|
|
|
11,862 |
|
|
|
17,316 |
|
|
|
32,363 |
|
|
|
39,692 |
|
|
Borrowings |
|
21,056 |
|
|
|
15,460 |
|
|
|
26,174 |
|
|
|
36,516 |
|
|
|
52,987 |
|
|
Total interest expense |
|
41,557 |
|
|
|
27,322 |
|
|
|
43,490 |
|
|
|
68,879 |
|
|
|
92,679 |
|
|
Net interest income before provision for credit losses |
|
225,416 |
|
|
|
208,642 |
|
|
|
198,311 |
|
|
|
434,058 |
|
|
|
394,551 |
|
|
Provision for (recovery of) credit losses |
|
23,996 |
|
|
|
7,830 |
|
|
|
(27,534 |
) |
|
|
31,826 |
|
|
|
(55,523 |
) |
|
Net interest income after provision for credit losses |
|
201,420 |
|
|
|
200,812 |
|
|
|
225,845 |
|
|
|
402,232 |
|
|
|
450,074 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposit service charges and fees |
|
5,896 |
|
|
|
5,960 |
|
|
|
5,417 |
|
|
|
11,856 |
|
|
|
10,317 |
|
|
Gain (loss) on investment securities, net |
|
(8,392 |
) |
|
|
(7,868 |
) |
|
|
4,155 |
|
|
|
(16,260 |
) |
|
|
6,520 |
|
|
Lease financing |
|
13,363 |
|
|
|
13,415 |
|
|
|
13,522 |
|
|
|
26,778 |
|
|
|
26,010 |
|
|
Other non-interest income |
|
2,583 |
|
|
|
2,794 |
|
|
|
9,663 |
|
|
|
5,377 |
|
|
|
20,206 |
|
|
Total non-interest income |
|
13,450 |
|
|
|
14,301 |
|
|
|
32,757 |
|
|
|
27,751 |
|
|
|
63,053 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Employee compensation and benefits |
|
62,461 |
|
|
|
67,088 |
|
|
|
56,459 |
|
|
|
129,549 |
|
|
|
115,747 |
|
|
Occupancy and equipment |
|
11,399 |
|
|
|
11,512 |
|
|
|
11,492 |
|
|
|
22,911 |
|
|
|
23,367 |
|
|
Deposit insurance expense |
|
3,993 |
|
|
|
3,403 |
|
|
|
4,222 |
|
|
|
7,396 |
|
|
|
11,672 |
|
|
Professional fees |
|
3,256 |
|
|
|
2,262 |
|
|
|
2,139 |
|
|
|
5,518 |
|
|
|
4,051 |
|
|
Technology and telecommunications |
|
17,898 |
|
|
|
17,004 |
|
|
|
16,851 |
|
|
|
34,902 |
|
|
|
32,592 |
|
|
Depreciation and impairment of operating lease equipment |
|
12,585 |
|
|
|
12,610 |
|
|
|
12,834 |
|
|
|
25,195 |
|
|
|
25,051 |
|
|
Other non-interest expense |
|
15,810 |
|
|
|
12,445 |
|
|
|
14,455 |
|
|
|
28,255 |
|
|
|
29,193 |
|
|
Total non-interest expense |
|
127,402 |
|
|
|
126,324 |
|
|
|
118,452 |
|
|
|
253,726 |
|
|
|
241,673 |
|
|
Income before income taxes |
|
87,468 |
|
|
|
88,789 |
|
|
|
140,150 |
|
|
|
176,257 |
|
|
|
271,454 |
|
|
Provision for income taxes |
|
21,704 |
|
|
|
21,639 |
|
|
|
36,176 |
|
|
|
43,343 |
|
|
|
68,666 |
|
|
Net income |
$ |
65,764 |
|
|
$ |
67,150 |
|
|
$ |
103,974 |
|
|
$ |
132,914 |
|
|
$ |
202,788 |
|
|
Earnings per common share, basic |
$ |
0.82 |
|
|
$ |
0.79 |
|
|
$ |
1.12 |
|
|
$ |
1.61 |
|
|
$ |
2.18 |
|
|
Earnings per common share, diluted |
$ |
0.82 |
|
|
$ |
0.79 |
|
|
$ |
1.11 |
|
|
$ |
1.60 |
|
|
$ |
2.17 |
|
|
|
|||||||||||||||||||||||||||||
|
AVERAGE BALANCES AND YIELDS |
|||||||||||||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||||||
|
|
Average
|
|
Interest (1) |
|
Yield/
|
|
Average
|
|
Interest (1) |
|
Yield/
|
|
Average
|
|
Interest (1) |
|
Yield/
|
||||||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Loans |
$ |
23,709,190 |
|
|
$ |
212,395 |
|
3.59 |
% |
|
$ |
23,349,143 |
|
|
$ |
194,551 |
|
3.36 |
% |
|
$ |
22,996,564 |
|
|
$ |
205,940 |
|
3.59 |
% |
|
Investment securities (3) |
|
10,477,600 |
|
|
|
55,488 |
|
2.12 |
% |
|
|
10,083,083 |
|
|
|
43,719 |
|
1.73 |
% |
|
|
9,839,422 |
|
|
|
38,338 |
|
1.56 |
% |
|
Other interest earning assets |
|
718,904 |
|
|
|
2,979 |
|
1.66 |
% |
|
|
674,640 |
|
|
|
1,354 |
|
0.81 |
% |
|
|
1,380,317 |
|
|
|
1,607 |
|
0.47 |
% |
|
Total interest earning assets |
|
34,905,694 |
|
|
|
270,862 |
|
3.11 |
% |
|
|
34,106,866 |
|
|
|
239,624 |
|
2.83 |
% |
|
|
34,216,303 |
|
|
|
245,885 |
|
2.88 |
% |
|
Allowance for credit losses |
|
(127,864 |
) |
|
|
|
|
|
|
(129,028 |
) |
|
|
|
|
|
|
(215,151 |
) |
|
|
|
|
||||||
|
Non-interest earning assets |
|
1,669,689 |
|
|
|
|
|
|
|
1,674,476 |
|
|
|
|
|
|
|
1,732,676 |
|
|
|
|
|
||||||
|
Total assets |
$ |
36,447,519 |
|
|
|
|
|
|
$ |
35,652,314 |
|
|
|
|
|
|
$ |
35,733,828 |
|
|
|
|
|
||||||
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest bearing demand deposits |
$ |
2,576,257 |
|
|
$ |
1,742 |
|
0.27 |
% |
|
$ |
3,078,176 |
|
|
$ |
1,369 |
|
0.18 |
% |
|
$ |
3,069,945 |
|
|
$ |
2,594 |
|
0.34 |
% |
|
Savings and money market deposits |
|
13,052,566 |
|
|
|
15,213 |
|
0.47 |
% |
|
|
13,401,332 |
|
|
|
6,931 |
|
0.21 |
% |
|
|
13,541,237 |
|
|
|
11,307 |
|
0.33 |
% |
|
Time deposits |
|
2,812,988 |
|
|
|
3,546 |
|
0.51 |
% |
|
|
3,319,585 |
|
|
|
3,562 |
|
0.44 |
% |
|
|
3,380,582 |
|
|
|
3,415 |
|
0.41 |
% |
|
Total interest bearing deposits |
|
18,441,811 |
|
|
|
20,501 |
|
0.45 |
% |
|
|
19,799,093 |
|
|
|
11,862 |
|
0.24 |
% |
|
|
19,991,764 |
|
|
|
17,316 |
|
0.35 |
% |
|
Federal funds purchased |
|
115,146 |
|
|
|
155 |
|
0.53 |
% |
|
|
187,400 |
|
|
|
58 |
|
0.12 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
FHLB advances |
|
4,373,736 |
|
|
|
11,644 |
|
1.07 |
% |
|
|
2,248,889 |
|
|
|
6,146 |
|
1.11 |
% |
|
|
2,873,922 |
|
|
|
16,922 |
|
2.36 |
% |
|
Notes and other borrowings |
|
721,284 |
|
|
|
9,257 |
|
5.13 |
% |
|
|
721,405 |
|
|
|
9,256 |
|
5.13 |
% |
|
|
721,753 |
|
|
|
9,252 |
|
5.13 |
% |
|
Total interest bearing liabilities |
|
23,651,977 |
|
|
|
41,557 |
|
0.70 |
% |
|
|
22,956,787 |
|
|
|
27,322 |
|
0.48 |
% |
|
|
23,587,439 |
|
|
|
43,490 |
|
0.74 |
% |
|
Non-interest bearing demand deposits |
|
9,419,025 |
|
|
|
|
|
|
|
9,047,864 |
|
|
|
|
|
|
|
8,163,879 |
|
|
|
|
|
||||||
|
Other non-interest bearing liabilities |
|
654,162 |
|
|
|
|
|
|
|
623,200 |
|
|
|
|
|
|
|
851,044 |
|
|
|
|
|
||||||
|
Total liabilities |
|
33,725,164 |
|
|
|
|
|
|
|
32,627,851 |
|
|
|
|
|
|
|
32,602,362 |
|
|
|
|
|
||||||
|
Stockholders' equity |
|
2,722,355 |
|
|
|
|
|
|
|
3,024,463 |
|
|
|
|
|
|
|
3,131,466 |
|
|
|
|
|
||||||
|
Total liabilities and stockholders' equity |
$ |
36,447,519 |
|
|
|
|
|
|
$ |
35,652,314 |
|
|
|
|
|
|
$ |
35,733,828 |
|
|
|
|
|
||||||
|
Net interest income |
|
|
$ |
229,305 |
|
|
|
|
|
$ |
212,302 |
|
|
|
|
|
$ |
202,395 |
|
|
|||||||||
|
Interest rate spread |
|
|
|
|
2.41 |
% |
|
|
|
|
|
2.35 |
% |
|
|
|
|
|
2.14 |
% |
|||||||||
|
Net interest margin |
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.50 |
% |
|
|
|
|
|
2.37 |
% |
|||||||||
| ______________________________ | ||
|
(1) |
|
On a tax-equivalent basis where applicable |
|
(2) |
|
Annualized |
|
(3) |
|
At fair value except for securities held to maturity |
|
|
|||||||||||||||||||
|
AVERAGE BALANCES AND YIELDS |
|||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
2022 |
|
2021 |
||||||||||||||||
|
|
Average
|
|
Interest (1) |
|
Yield/
|
|
Average
|
|
Interest (1) |
|
Yield/
|
||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Loans |
$ |
23,530,162 |
|
|
$ |
406,946 |
|
3.47 |
% |
|
$ |
23,271,410 |
|
|
$ |
414,761 |
|
3.58 |
% |
|
Investment securities (3) |
|
10,281,431 |
|
|
|
99,207 |
|
1.93 |
% |
|
|
9,456,929 |
|
|
|
77,525 |
|
1.64 |
% |
|
Other interest earning assets |
|
696,894 |
|
|
|
4,333 |
|
1.25 |
% |
|
|
1,222,456 |
|
|
|
3,200 |
|
0.53 |
% |
|
Total interest earning assets |
|
34,508,487 |
|
|
|
510,486 |
|
2.97 |
% |
|
|
33,950,795 |
|
|
|
495,486 |
|
2.93 |
% |
|
Allowance for credit losses |
|
(128,443 |
) |
|
|
|
|
|
|
(234,686 |
) |
|
|
|
|
||||
|
Non-interest earning assets |
|
1,672,070 |
|
|
|
|
|
|
|
1,728,449 |
|
|
|
|
|
||||
|
Total assets |
$ |
36,052,114 |
|
|
|
|
|
|
$ |
35,444,558 |
|
|
|
|
|
||||
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest bearing demand deposits |
$ |
2,825,830 |
|
|
|
3,111 |
|
0.22 |
% |
|
$ |
3,006,760 |
|
|
|
5,368 |
|
0.36 |
% |
|
Savings and money market deposits |
|
13,225,986 |
|
|
|
22,866 |
|
0.35 |
% |
|
|
13,169,195 |
|
|
|
23,434 |
|
0.36 |
% |
|
Time deposits |
|
3,064,887 |
|
|
|
6,386 |
|
0.42 |
% |
|
|
3,853,057 |
|
|
|
10,890 |
|
0.57 |
% |
|
Total interest bearing deposits |
|
19,116,703 |
|
|
|
32,363 |
|
0.34 |
% |
|
|
20,029,012 |
|
|
|
39,692 |
|
0.40 |
% |
|
Federal funds purchased |
|
151,074 |
|
|
|
213 |
|
0.28 |
% |
|
|
3,978 |
|
|
|
2 |
|
0.10 |
% |
|
FHLB and PPPLF borrowings |
|
3,317,182 |
|
|
|
17,790 |
|
1.08 |
% |
|
|
2,972,770 |
|
|
|
34,480 |
|
2.34 |
% |
|
Notes and other borrowings |
|
721,344 |
|
|
|
18,513 |
|
5.13 |
% |
|
|
722,028 |
|
|
|
18,505 |
|
5.13 |
% |
|
Total interest bearing liabilities |
|
23,306,303 |
|
|
|
68,879 |
|
0.59 |
% |
|
|
23,727,788 |
|
|
|
92,679 |
|
0.79 |
% |
|
Non-interest bearing demand deposits |
|
9,234,469 |
|
|
|
|
|
|
|
7,829,422 |
|
|
|
|
|
||||
|
Other non-interest bearing liabilities |
|
638,767 |
|
|
|
|
|
|
|
799,297 |
|
|
|
|
|
||||
|
Total liabilities |
|
33,179,539 |
|
|
|
|
|
|
|
32,356,507 |
|
|
|
|
|
||||
|
Stockholders' equity |
|
2,872,575 |
|
|
|
|
|
|
|
3,088,051 |
|
|
|
|
|
||||
|
Total liabilities and stockholders' equity |
$ |
36,052,114 |
|
|
|
|
|
|
$ |
35,444,558 |
|
|
|
|
|
||||
|
Net interest income |
|
|
$ |
441,607 |
|
|
|
|
|
$ |
402,807 |
|
|
||||||
|
Interest rate spread |
|
|
|
|
2.38 |
% |
|
|
|
|
|
2.14 |
% |
||||||
|
Net interest margin |
|
|
|
|
2.57 |
% |
|
|
|
|
|
2.38 |
% |
||||||
| ______________________________ | ||
|
(1) |
|
On a tax-equivalent basis where applicable |
|
(2) |
|
Annualized |
|
(3) |
|
At fair value except for securities held to maturity |
|
|
|||||||||||||||
|
EARNINGS PER COMMON SHARE |
|||||||||||||||
|
(In thousands except share and per share amounts) |
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
|
Numerator: |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
65,764 |
|
|
$ |
103,974 |
|
|
$ |
132,914 |
|
|
$ |
202,788 |
|
|
Distributed and undistributed earnings allocated to participating securities |
|
(999 |
) |
|
|
(1,338 |
) |
|
|
(1,927 |
) |
|
|
(2,589 |
) |
|
Income allocated to common stockholders for basic earnings per common share |
$ |
64,765 |
|
|
$ |
102,636 |
|
|
$ |
130,987 |
|
|
$ |
200,199 |
|
|
Denominator: |
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding |
|
80,300,069 |
|
|
|
93,245,282 |
|
|
|
82,629,098 |
|
|
|
93,160,962 |
|
|
Less average unvested stock awards |
|
(1,257,258 |
) |
|
|
(1,241,381 |
) |
|
|
(1,234,678 |
) |
|
|
(1,223,555 |
) |
|
Weighted average shares for basic earnings per common share |
|
79,042,811 |
|
|
|
92,003,901 |
|
|
|
81,394,420 |
|
|
|
91,937,407 |
|
|
Basic earnings per common share |
$ |
0.82 |
|
|
$ |
1.12 |
|
|
$ |
1.61 |
|
|
$ |
2.18 |
|
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
|
Numerator: |
|
|
|
|
|
|
|
||||||||
|
Income allocated to common stockholders for basic earnings per common share |
$ |
64,765 |
|
|
$ |
102,636 |
|
|
$ |
130,987 |
|
|
$ |
200,199 |
|
|
Adjustment for earnings reallocated from participating securities |
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
3 |
|
|
Income used in calculating diluted earnings per common share |
$ |
64,768 |
|
|
$ |
102,638 |
|
|
$ |
130,991 |
|
|
$ |
200,202 |
|
|
Denominator: |
|
|
|
|
|
|
|
||||||||
|
Weighted average shares for basic earnings per common share |
|
79,042,811 |
|
|
|
92,003,901 |
|
|
|
81,394,420 |
|
|
|
91,937,407 |
|
|
Dilutive effect of certain share-based awards |
|
350,734 |
|
|
|
181,061 |
|
|
|
244,808 |
|
|
|
137,542 |
|
|
Weighted average shares for diluted earnings per common share |
|
79,393,545 |
|
|
|
92,184,962 |
|
|
|
81,639,228 |
|
|
|
92,074,949 |
|
|
Diluted earnings per common share |
$ |
0.82 |
|
|
$ |
1.11 |
|
|
$ |
1.60 |
|
|
$ |
2.17 |
|
|
|
|||||
|
SELECTED RATIOS |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
Financial ratios (4) |
|
|
|
|
|
|
|
||||
|
Return on average assets |
0.72 |
% |
|
1.17 |
% |
|
0.74 |
% |
|
1.15 |
% |
|
Return on average stockholders’ equity |
9.7 |
% |
|
13.3 |
% |
|
9.3 |
% |
|
13.2 |
% |
|
Net interest margin (3) |
2.63 |
% |
|
2.37 |
% |
|
2.57 |
% |
|
2.38 |
% |
|
|
|
|
|
||
|
Asset quality ratios |
|
|
|
||
|
Non-performing loans to total loans (1)(5) |
0.60 |
% |
|
0.87 |
% |
|
Non-performing assets to total assets (2)(5) |
0.41 |
% |
|
0.58 |
% |
|
Allowance for credit losses to total loans |
0.54 |
% |
|
0.53 |
% |
|
Allowance for credit losses to non-performing loans (1)(5) |
90.45 |
% |
|
61.41 |
% |
|
Net charge-offs to average loans (4) |
0.23 |
% |
|
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 and six month periods. |
|
(5) |
|
Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling |
|
|
|
|
|
|
Required to be
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|||||
|
Tier 1 leverage |
7.5 |
% |
|
8.8 |
% |
|
8.4 |
% |
|
9.6 |
% |
|
5.0 |
% |
|
Common Equity Tier 1 ("CET1") risk-based capital |
11.3 |
% |
|
13.3 |
% |
|
12.6 |
% |
|
14.5 |
% |
|
6.5 |
% |
|
Total risk-based capital |
13.0 |
% |
|
13.8 |
% |
|
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):
|
|
|
|
|
|
|
||||||
|
Total loans (GAAP) |
$ |
24,100,014 |
|
|
$ |
23,370,029 |
|
|
$ |
23,765,053 |
|
|
Less: Government insured residential loans |
|
1,928,779 |
|
|
|
1,938,479 |
|
|
|
2,023,221 |
|
|
Less: PPP loans |
|
29,828 |
|
|
|
80,296 |
|
|
|
248,505 |
|
|
Less: MWL |
|
816,797 |
|
|
|
701,172 |
|
|
|
1,092,133 |
|
|
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) |
$ |
21,324,610 |
|
|
$ |
20,650,082 |
|
|
$ |
20,401,194 |
|
|
|
|
|
|
|
|
||||||
|
ACL |
$ |
130,239 |
|
|
$ |
125,443 |
|
|
$ |
126,457 |
|
|
|
|
|
|
|
|
||||||
|
ACL to total loans (GAAP) |
|
0.54 |
% |
|
|
0.54 |
% |
|
|
0.53 |
% |
|
|
|
|
|
|
|
||||||
|
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) |
|
0.61 |
% |
|
|
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):
|
|
|
|
|
||
|
Total stockholders’ equity (GAAP) |
$ |
2,506,017 |
|
$ |
3,037,761 |
|
Less: goodwill |
|
77,637 |
|
|
77,637 |
|
Tangible stockholders’ equity (non-GAAP) |
$ |
2,428,380 |
|
$ |
2,960,124 |
|
|
|
|
|
||
|
Common shares issued and outstanding |
|
77,944,216 |
|
|
85,647,986 |
|
|
|
|
|
||
|
Book value per common share (GAAP) |
$ |
32.15 |
|
$ |
35.47 |
|
|
|
|
|
||
|
Tangible book value per common share (non-GAAP) |
$ |
31.16 |
|
$ |
34.56 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220721005144/en/
Investor Relations:
llunak@bankunited.com
Source: