"As volatility in the capital markets recedes and the economy remains resilient, we have returned our focus to executing on our long term strategy of building a relationship oriented bank," said
For the quarter ended
Quarterly Highlights
-
Total deposits grew by
$116 million during the quarter endedJune 30, 2023 . Non-interest bearing deposits remained largely consistent as a percentage of deposits, representing 28.3% of total deposits atJune 30, 2023 compared to 28.6% atMarch 31, 2023 , declining by$62 million for the quarter.
-
Our liquidity position remains strong, and improved over the course of the second quarter. At
June 30, 2023 , total same day available liquidity had increased to$14.7 billion from$9.4 billion atMarch 31, 2023 . The available liquidity to uninsured, uncollateralized deposits ratio improved to 167% atJune 30, 2023 from 95% atMarch 31, 2023 while the portion of our deposits that were insured or collateralized grew to 66% atJune 30, 2023 from 62% atMarch 31, 2023 .
-
We made progress in reducing wholesale funding as outstanding FHLB advances were down
$1.6 billion quarter-over-quarter.
-
Net interest income and the net interest margin for the quarter ended
June 30, 2023 were impacted by an increase in the cost of funds which more than offset the increased yield on interest-earning assets. A challenging deposit growth environment and a higher level of on-balance sheet liquidity for much of the quarter led to increased reliance on higher cost deposits and wholesale funding. The net interest margin, calculated on a tax-equivalent basis, was 2.47% for the quarter endedJune 30, 2023 , compared to 2.62% for the immediately preceding quarter endedMarch 31, 2023 and 2.63% for the quarter endedJune 30, 2022 . Net interest income decreased by$14.0 million , compared to the immediately preceding quarter endedMarch 31, 2023 and by$11.5 million compared to the quarter endedJune 30, 2022 .
-
Consistent with industry trends, rising interest rates and tighter liquidity conditions contributed to an increase in the average cost of total deposits to 2.46% for the quarter ended
June 30, 2023 from 2.05% for the immediately preceding quarter. This increase of 0.41% was smaller than the 0.63% increase in the cost of deposits for the quarter endedMarch 31, 2023 . The yield on average interest earning assets increased to 5.30% for the quarter endedJune 30, 2023 from 5.05% for the immediately preceding quarter.
-
Total loans declined by
$263 million quarter-over-quarter. Most of the decline was attributable to residential which was down by$184 million . Consistent with our strategy to re-position the composition of the balance sheet, cash flows from the residential portfolio were used to pay down wholesale funding.
-
Credit remains favorable. The NPA ratio at
June 30, 2023 was 0.34%, including 0.10% related to the guaranteed portion of non-performing SBA loans compared to 0.32%, including 0.10% related to the guaranteed portion of non-performing SBA loans atMarch 31, 2023 . The annualized net charge-off ratio for the six months endedJune 30, 2023 was 0.09%.
-
Reflecting management's concentration risk management strategy, commercial real estate exposure is modest. Commercial real estate loans totaled 23% of loans at
June 30, 2023 , representing 169% of the Bank's total risk based capital. AtJune 30, 2023 , the weighted average LTV of the CRE portfolio was 57.1% and the weighted average DSCR was 1.88. 60% of the portfolio was secured by collateral properties located inFlorida and 25% was secured by properties in theNew York tri-state area.
-
For the quarter ended
June 30, 2023 , the provision for credit losses was$15.5 million compared to provisions of$19.8 million and$24.0 million for the quarters endedMarch 31, 2023 andJune 30, 2022 , respectively. The ratio of the ACL to total loans increased to 0.68%, atJune 30, 2023 from 0.64% atMarch 31, 2023 , reflecting the impact on modeling expected credit losses of a less favorable Moody's baseline economic forecast and heavier weighting of a downside scenario in calculating the ACL.
-
We remain committed to keeping the duration of our securities portfolio short; the duration of the available for sale securities portfolio was 1.94 at
June 30, 2023 . Held to maturity securities were not significant.
-
Our capital position is robust. CET1 was 11.2% at the holding company and 13.0% at the Bank at
June 30, 2023 . Pro-forma CET1 at the holding company and the Bank, including accumulated other comprehensive income, were 9.7% and 11.5%, respectively.
-
Book value and tangible book value per common share improved to
$33.94 and$32.90 , respectively, atJune 30, 2023 , from$33.34 and$32.30 , respectively atMarch 31, 2023 .
Deposits and Funding
Total deposits grew by
Consistent with the current interest rate environment and monetary policy stance, the cost of total deposits increased to 2.46% from 2.05% for the immediately preceding quarter, while the cost of interest bearing deposits increased to 3.39% for the quarter ended
FHLB advances declined by
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
|
|
|
|
|
|
|||||||||||||
Residential |
$ |
8,605,838 |
|
34.9 |
% |
|
$ |
8,789,744 |
|
35.3 |
% |
|
$ |
8,900,714 |
|
35.7 |
% |
|
Non-owner occupied commercial real estate |
|
5,302,523 |
|
21.5 |
% |
|
|
5,346,895 |
|
21.5 |
% |
|
|
5,405,597 |
|
21.7 |
% |
|
Construction and land |
|
393,464 |
|
1.6 |
% |
|
|
324,805 |
|
1.3 |
% |
|
|
294,360 |
|
1.2 |
% |
|
Owner occupied commercial real estate |
|
1,832,586 |
|
7.4 |
% |
|
|
1,863,333 |
|
7.5 |
% |
|
|
1,890,813 |
|
7.6 |
% |
|
Commercial and industrial |
|
6,575,368 |
|
26.8 |
% |
|
|
6,617,716 |
|
26.5 |
% |
|
|
6,417,721 |
|
25.9 |
% |
|
Pinnacle - municipal finance |
|
951,529 |
|
3.9 |
% |
|
|
919,584 |
|
3.7 |
% |
|
|
912,122 |
|
3.7 |
% |
|
Franchise finance |
|
207,783 |
|
0.8 |
% |
|
|
239,205 |
|
1.0 |
% |
|
|
253,774 |
|
1.0 |
% |
|
Equipment finance |
|
237,816 |
|
1.0 |
% |
|
|
266,715 |
|
1.1 |
% |
|
|
286,147 |
|
1.1 |
% |
|
Mortgage warehouse lending ("MWL") |
|
523,083 |
|
2.1 |
% |
|
|
524,897 |
|
2.1 |
% |
|
|
524,740 |
|
2.1 |
% |
|
|
$ |
24,629,990 |
|
100.0 |
% |
|
$ |
24,892,894 |
|
100.0 |
% |
|
$ |
24,885,988 |
|
100.0 |
% |
For the quarter ended
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 |
$ |
233,004 |
|
$ |
101,781 |
|
$ |
51,433 |
|
Substandard - accruing |
|
525,643 |
|
|
596,054 |
|
|
605,965 |
|
Substandard - non-accruing |
|
80,642 |
|
|
82,840 |
|
|
75,125 |
|
Doubtful |
|
14,954 |
|
|
7,699 |
|
|
7,990 |
|
Total |
$ |
854,243 |
|
$ |
788,374 |
|
$ |
740,513 |
One
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 to Total |
|
ACL to Non- |
|
Net Charge-offs to |
|||||
ACL |
Loans |
Performing Loans |
Average Loans (1) |
|||||||||
|
$ |
147,946 |
|
0.59 |
% |
|
140.88 |
% |
|
0.22 |
% |
|
|
$ |
158,792 |
|
0.64 |
% |
|
139.01 |
% |
|
0.08 |
% |
|
|
$ |
166,833 |
|
0.68 |
% |
|
140.52 |
% |
|
0.09 |
% |
|
(1) Annualized for the three months ended |
The ACL at
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Beginning balance |
$ |
158,792 |
|
|
$ |
147,946 |
|
|
$ |
125,443 |
|
|
$ |
147,946 |
|
|
$ |
126,457 |
|
|
Impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
N/A |
|
|
|
(1,794 |
) |
|
|
N/A |
|
|
|
(1,794 |
) |
|
|
N/A |
|
|
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
158,792 |
|
|
|
146,152 |
|
|
|
125,443 |
|
|
|
146,152 |
|
|
|
126,457 |
|
|
Provision |
|
14,195 |
|
|
|
17,595 |
|
|
|
23,207 |
|
|
|
31,790 |
|
|
|
30,653 |
|
|
Net charge-offs |
|
(6,154 |
) |
|
|
(4,955 |
) |
|
|
(18,411 |
) |
|
|
(11,109 |
) |
|
|
(26,871 |
) |
|
Ending balance |
$ |
166,833 |
|
|
$ |
158,792 |
|
|
$ |
130,239 |
|
|
$ |
166,833 |
|
|
$ |
130,239 |
|
Net Interest Income
Net interest income for the quarter ended
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.15% to 2.47% for the quarter ended
More detail about certain factors impacting the net interest margin for the quarter ended
-
The tax-equivalent yield on investment securities increased to 5.19% for the quarter ended
June 30, 2023 , from 4.95% for the quarter endedMarch 31, 2023 . This increase resulted primarily from the reset of coupon rates on variable rate securities.
-
The tax-equivalent yield on loans increased to 5.35% for the quarter ended
June 30, 2023 , from 5.10% for the quarter endedMarch 31, 2023 . The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.
-
The average cost on interest bearing deposits increased to 3.39% for the quarter ended
June 30, 2023 from 2.86% for the quarter endedMarch 31, 2023 , as a result of the rising interest rate environment, tightening liquidity conditions and the shift from non-interest bearing deposits to deposits priced at current, higher market rates.
-
The average rate paid on FHLB advances increased to 4.59% for the quarter ended
June 30, 2023 , from 4.27% for the quarter endedMarch 31, 2023 , primarily due to higher prevailing rates, partially offset by the impact of cash flow hedges.
Non-interest income and Non-interest expense
Non-interest income totaled
Non-interest expense totaled
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BIe6f3323769d343d48b39c8774b18f417. 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, such as adverse events impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended
|
||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED |
||||||||
(In thousands, except share and per share data) |
||||||||
|
|
|
|
|||||
2023 |
2022 |
|||||||
ASSETS |
|
|
|
|||||
Cash and due from banks: |
|
|
|
|||||
Non-interest bearing |
$ |
18,355 |
|
|
$ |
16,068 |
|
|
Interest bearing |
|
282,814 |
|
|
|
556,579 |
|
|
Cash and cash equivalents |
|
301,169 |
|
|
|
572,647 |
|
|
Investment securities (including securities reported at fair value of |
|
9,143,937 |
|
|
|
9,755,327 |
|
|
Non-marketable equity securities |
|
317,759 |
|
|
|
294,172 |
|
|
Loans |
|
24,629,990 |
|
|
|
24,885,988 |
|
|
Allowance for credit losses |
|
(166,833 |
) |
|
|
(147,946 |
) |
|
Loans, net |
|
24,463,157 |
|
|
|
24,738,042 |
|
|
Bank owned life insurance |
|
318,935 |
|
|
|
308,212 |
|
|
Operating lease equipment, net |
|
514,734 |
|
|
|
539,799 |
|
|
|
|
77,637 |
|
|
|
77,637 |
|
|
Other assets |
|
734,151 |
|
|
|
740,876 |
|
|
Total assets |
$ |
35,871,479 |
|
|
$ |
37,026,712 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Liabilities: |
|
|
|
|||||
Demand deposits: |
|
|
|
|||||
Non-interest bearing |
$ |
7,304,735 |
|
|
$ |
8,037,848 |
|
|
Interest bearing |
|
2,929,870 |
|
|
|
2,142,067 |
|
|
Savings and money market |
|
10,084,276 |
|
|
|
13,061,341 |
|
|
Time |
|
5,519,771 |
|
|
|
4,268,078 |
|
|
Total deposits |
|
25,838,652 |
|
|
|
27,509,334 |
|
|
Federal funds purchased |
|
— |
|
|
|
190,000 |
|
|
FHLB advances |
|
5,975,000 |
|
|
|
5,420,000 |
|
|
Notes and other borrowings |
|
715,302 |
|
|
|
720,923 |
|
|
Other liabilities |
|
816,215 |
|
|
|
750,474 |
|
|
Total liabilities |
|
33,345,169 |
|
|
|
34,590,731 |
|
|
|
|
|
|
|||||
Commitments and contingencies |
|
|
|
|||||
|
|
|
|
|||||
Stockholders' equity: |
|
|
|
|||||
Common stock, par value |
|
744 |
|
|
|
757 |
|
|
Paid-in capital |
|
274,202 |
|
|
|
321,729 |
|
|
Retained earnings |
|
2,623,926 |
|
|
|
2,551,400 |
|
|
Accumulated other comprehensive loss |
|
(372,562 |
) |
|
|
(437,905 |
) |
|
Total stockholders' equity |
|
2,526,310 |
|
|
|
2,435,981 |
|
|
Total liabilities and stockholders' equity |
$ |
35,871,479 |
|
|
$ |
37,026,712 |
|
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|||||||||||||||||||
(In thousands, except per share data) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
$ |
326,153 |
|
$ |
308,795 |
|
|
$ |
209,223 |
|
|
$ |
634,948 |
|
|
$ |
400,785 |
|
|
Investment securities |
|
120,604 |
|
|
118,758 |
|
|
|
54,771 |
|
|
|
239,362 |
|
|
|
97,819 |
|
|
Other |
|
16,664 |
|
|
12,863 |
|
|
|
2,979 |
|
|
|
29,527 |
|
|
|
4,333 |
|
|
Total interest income |
|
463,421 |
|
|
440,416 |
|
|
|
266,973 |
|
|
|
903,837 |
|
|
|
502,937 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
156,868 |
|
|
133,630 |
|
|
|
20,501 |
|
|
|
290,498 |
|
|
|
32,363 |
|
|
Borrowings |
|
92,675 |
|
|
78,912 |
|
|
|
21,056 |
|
|
|
171,587 |
|
|
|
36,516 |
|
|
Total interest expense |
|
249,543 |
|
|
212,542 |
|
|
|
41,557 |
|
|
|
462,085 |
|
|
|
68,879 |
|
|
Net interest income before provision for credit losses |
|
213,878 |
|
|
227,874 |
|
|
|
225,416 |
|
|
|
441,752 |
|
|
|
434,058 |
|
|
Provision for credit losses |
|
15,517 |
|
|
19,788 |
|
|
|
23,996 |
|
|
|
35,305 |
|
|
|
31,826 |
|
|
Net interest income after provision for credit losses |
|
198,361 |
|
|
208,086 |
|
|
|
201,420 |
|
|
|
406,447 |
|
|
|
402,232 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit service charges and fees |
|
5,349 |
|
|
5,545 |
|
|
|
5,896 |
|
|
|
10,894 |
|
|
|
11,856 |
|
|
Gain (loss) on investment securities, net |
|
993 |
|
|
(12,549 |
) |
|
|
(8,392 |
) |
|
|
(11,556 |
) |
|
|
(16,260 |
) |
|
Lease financing |
|
12,519 |
|
|
13,109 |
|
|
|
13,363 |
|
|
|
25,628 |
|
|
|
26,778 |
|
|
Other non-interest income |
|
6,626 |
|
|
10,430 |
|
|
|
2,583 |
|
|
|
17,056 |
|
|
|
5,377 |
|
|
Total non-interest income |
|
25,487 |
|
|
16,535 |
|
|
|
13,450 |
|
|
|
42,022 |
|
|
|
27,751 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
Employee compensation and benefits |
|
67,414 |
|
|
71,051 |
|
|
|
62,461 |
|
|
|
138,465 |
|
|
|
129,549 |
|
|
Occupancy and equipment |
|
11,043 |
|
|
10,802 |
|
|
|
11,399 |
|
|
|
21,845 |
|
|
|
22,911 |
|
|
Deposit insurance expense |
|
7,597 |
|
|
7,907 |
|
|
|
3,993 |
|
|
|
15,504 |
|
|
|
7,396 |
|
|
Professional fees |
|
3,518 |
|
|
2,918 |
|
|
|
3,256 |
|
|
|
6,436 |
|
|
|
5,518 |
|
|
Technology |
|
20,437 |
|
|
21,726 |
|
|
|
17,898 |
|
|
|
42,163 |
|
|
|
34,902 |
|
|
Depreciation of operating lease equipment |
|
11,232 |
|
|
11,521 |
|
|
|
12,585 |
|
|
|
22,753 |
|
|
|
25,195 |
|
|
Other non-interest expense |
|
23,977 |
|
|
26,855 |
|
|
|
15,810 |
|
|
|
50,832 |
|
|
|
28,255 |
|
|
Total non-interest expense |
|
145,218 |
|
|
152,780 |
|
|
|
127,402 |
|
|
|
297,998 |
|
|
|
253,726 |
|
|
Income before income taxes |
|
78,630 |
|
|
71,841 |
|
|
|
87,468 |
|
|
|
150,471 |
|
|
|
176,257 |
|
|
Provision for income taxes |
|
20,634 |
|
|
18,959 |
|
|
|
21,704 |
|
|
|
39,593 |
|
|
|
43,343 |
|
|
Net income |
$ |
57,996 |
|
$ |
52,882 |
|
|
$ |
65,764 |
|
|
$ |
110,878 |
|
|
$ |
132,914 |
|
|
Earnings per common share, basic |
$ |
0.78 |
|
$ |
0.71 |
|
|
$ |
0.82 |
|
|
$ |
1.49 |
|
|
$ |
1.61 |
|
|
Earnings per common share, diluted |
$ |
0.78 |
|
$ |
0.70 |
|
|
$ |
0.82 |
|
|
$ |
1.48 |
|
|
$ |
1.60 |
|
|
||||||||||||||||||||||||||||||
AVERAGE BALANCES AND YIELDS |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||
|
2023 |
|
2023 |
|
2022 |
|||||||||||||||||||||||||
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
Yield/ |
|
Average |
|
|
Yield/ |
|||||||||||||||
Balance |
Interest (1) |
Rate (1)(2) |
Balance |
Interest (1) |
Rate (1)(2) |
Balance |
Interest (1) |
Rate (1)(2) |
||||||||||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans |
$ |
24,680,919 |
|
|
$ |
329,494 |
|
5.35 |
% |
|
$ |
24,724,296 |
|
|
$ |
312,125 |
|
5.10 |
% |
|
$ |
23,709,190 |
|
|
$ |
212,395 |
|
3.59 |
% |
|
Investment securities (3) |
|
9,369,019 |
|
|
|
121,520 |
|
5.19 |
% |
|
|
9,672,514 |
|
|
|
119,666 |
|
4.95 |
% |
|
|
10,477,600 |
|
|
|
55,488 |
|
2.12 |
% |
|
Other interest earning assets |
|
1,323,025 |
|
|
|
16,664 |
|
5.05 |
% |
|
|
1,039,563 |
|
|
|
12,863 |
|
5.02 |
% |
|
|
718,904 |
|
|
|
2,979 |
|
1.66 |
% |
|
Total interest earning assets |
|
35,372,963 |
|
|
|
467,678 |
|
5.30 |
% |
|
|
35,436,373 |
|
|
|
444,654 |
|
5.05 |
% |
|
|
34,905,694 |
|
|
|
270,862 |
|
3.11 |
% |
|
Allowance for credit losses |
|
(162,463 |
) |
|
|
|
|
|
|
(151,071 |
) |
|
|
|
|
|
|
(127,864 |
) |
|
|
|
|
|||||||
Non-interest earning assets |
|
1,744,693 |
|
|
|
|
|
|
|
1,793,000 |
|
|
|
|
|
|
|
1,669,689 |
|
|
|
|
|
|||||||
Total assets |
$ |
36,955,193 |
|
|
|
|
|
|
$ |
37,078,302 |
|
|
|
|
|
|
$ |
36,447,519 |
|
|
|
|
|
|||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest bearing demand deposits |
$ |
2,772,839 |
|
|
$ |
18,417 |
|
2.66 |
% |
|
$ |
2,283,505 |
|
|
$ |
10,545 |
|
1.87 |
% |
|
$ |
2,576,257 |
|
|
$ |
1,742 |
|
0.27 |
% |
|
Savings and money market deposits |
|
10,285,494 |
|
|
|
88,892 |
|
3.47 |
% |
|
|
12,145,922 |
|
|
|
91,724 |
|
3.06 |
% |
|
|
13,052,566 |
|
|
|
15,213 |
|
0.47 |
% |
|
Time deposits |
|
5,494,631 |
|
|
|
49,559 |
|
3.62 |
% |
|
|
4,526,480 |
|
|
|
31,361 |
|
2.81 |
% |
|
|
2,812,988 |
|
|
|
3,546 |
|
0.51 |
% |
|
Total interest bearing deposits |
|
18,552,964 |
|
|
|
156,868 |
|
3.39 |
% |
|
|
18,955,907 |
|
|
|
133,630 |
|
2.86 |
% |
|
|
18,441,811 |
|
|
|
20,501 |
|
0.45 |
% |
|
Federal funds purchased |
|
— |
|
|
|
— |
|
— |
% |
|
|
143,580 |
|
|
|
1,611 |
|
4.49 |
% |
|
|
115,146 |
|
|
|
155 |
|
0.53 |
% |
|
FHLB advances |
|
7,288,187 |
|
|
|
83,429 |
|
4.59 |
% |
|
|
6,465,000 |
|
|
|
68,039 |
|
4.27 |
% |
|
|
4,373,736 |
|
|
|
11,644 |
|
1.07 |
% |
|
Notes and other borrowings |
|
719,368 |
|
|
|
9,246 |
|
5.14 |
% |
|
|
720,906 |
|
|
|
9,262 |
|
5.14 |
% |
|
|
721,284 |
|
|
|
9,257 |
|
5.13 |
% |
|
Total interest bearing liabilities |
|
26,560,519 |
|
|
|
249,543 |
|
3.77 |
% |
|
|
26,285,393 |
|
|
|
212,542 |
|
3.28 |
% |
|
|
23,651,977 |
|
|
|
41,557 |
|
0.70 |
% |
|
Non-interest bearing demand deposits |
|
7,067,053 |
|
|
|
|
|
|
|
7,458,221 |
|
|
|
|
|
|
|
9,419,025 |
|
|
|
|
|
|||||||
Other non-interest bearing liabilities |
|
798,279 |
|
|
|
|
|
|
|
821,419 |
|
|
|
|
|
|
|
654,162 |
|
|
|
|
|
|||||||
Total liabilities |
|
34,425,851 |
|
|
|
|
|
|
|
34,565,033 |
|
|
|
|
|
|
|
33,725,164 |
|
|
|
|
|
|||||||
Stockholders' equity |
|
2,529,342 |
|
|
|
|
|
|
|
2,513,269 |
|
|
|
|
|
|
|
2,722,355 |
|
|
|
|
|
|||||||
Total liabilities and stockholders' equity |
$ |
36,955,193 |
|
|
|
|
|
|
$ |
37,078,302 |
|
|
|
|
|
|
$ |
36,447,519 |
|
|
|
|
|
|||||||
Net interest income |
|
|
$ |
218,135 |
|
|
|
|
|
$ |
232,112 |
|
|
|
|
|
$ |
229,305 |
|
|
||||||||||
Interest rate spread |
|
|
|
|
1.53 |
% |
|
|
|
|
|
1.77 |
% |
|
|
|
|
|
2.41 |
% |
||||||||||
Net interest margin |
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.62 |
% |
|
|
|
|
|
2.63 |
% |
||||||||||
(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 |
|||||||||||||||||||
|
2023 |
|
2022 |
|||||||||||||||||
|
Average |
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
||||||||||
Balance |
Interest (1) |
Rate (1)(2) |
Balance |
Interest (1) |
Rate (1)(2) |
|||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans |
$ |
24,702,487 |
|
|
$ |
641,617 |
|
5.22 |
% |
|
$ |
23,530,162 |
|
|
$ |
406,946 |
|
3.47 |
% |
|
Investment securities (3) |
|
9,519,928 |
|
|
|
241,187 |
|
5.07 |
% |
|
|
10,281,431 |
|
|
|
99,207 |
|
1.93 |
% |
|
Other interest earning assets |
|
1,182,077 |
|
|
|
29,527 |
|
5.04 |
% |
|
|
696,894 |
|
|
|
4,333 |
|
1.25 |
% |
|
Total interest earning assets |
|
35,404,492 |
|
|
|
912,331 |
|
5.18 |
% |
|
|
34,508,487 |
|
|
|
510,486 |
|
2.97 |
% |
|
Allowance for credit losses |
|
(156,798 |
) |
|
|
|
|
|
|
(128,443 |
) |
|
|
|
|
|||||
Non-interest earning assets |
|
1,768,714 |
|
|
|
|
|
|
|
1,672,070 |
|
|
|
|
|
|||||
Total assets |
$ |
37,016,408 |
|
|
|
|
|
|
$ |
36,052,114 |
|
|
|
|
|
|||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest bearing demand deposits |
$ |
2,570,422 |
|
|
$ |
29,291 |
|
2.30 |
% |
|
$ |
2,825,830 |
|
|
$ |
3,111 |
|
0.22 |
% |
|
Savings and money market deposits |
|
11,169,671 |
|
|
|
180,287 |
|
3.25 |
% |
|
|
13,225,986 |
|
|
|
22,866 |
|
0.35 |
% |
|
Time deposits |
|
5,013,230 |
|
|
|
80,920 |
|
3.26 |
% |
|
|
3,064,887 |
|
|
|
6,386 |
|
0.42 |
% |
|
Total interest bearing deposits |
|
18,753,323 |
|
|
|
290,498 |
|
3.12 |
% |
|
|
19,116,703 |
|
|
|
32,363 |
|
0.34 |
% |
|
Federal funds purchased |
|
71,393 |
|
|
|
1,611 |
|
4.51 |
% |
|
|
151,074 |
|
|
|
213 |
|
0.28 |
% |
|
FHLB advances |
|
6,878,867 |
|
|
|
151,467 |
|
4.44 |
% |
|
|
3,317,182 |
|
|
|
17,790 |
|
1.08 |
% |
|
Notes and other borrowings |
|
720,133 |
|
|
|
18,509 |
|
5.14 |
% |
|
|
721,344 |
|
|
|
18,513 |
|
5.13 |
% |
|
Total interest bearing liabilities |
|
26,423,716 |
|
|
|
462,085 |
|
3.53 |
% |
|
|
23,306,303 |
|
|
|
68,879 |
|
0.59 |
% |
|
Non-interest bearing demand deposits |
|
7,261,557 |
|
|
|
|
|
|
|
9,234,469 |
|
|
|
|
|
|||||
Other non-interest bearing liabilities |
|
809,785 |
|
|
|
|
|
|
|
638,767 |
|
|
|
|
|
|||||
Total liabilities |
|
34,495,058 |
|
|
|
|
|
|
|
33,179,539 |
|
|
|
|
|
|||||
Stockholders' equity |
|
2,521,350 |
|
|
|
|
|
|
|
2,872,575 |
|
|
|
|
|
|||||
Total liabilities and stockholders' equity |
$ |
37,016,408 |
|
|
|
|
|
|
$ |
36,052,114 |
|
|
|
|
|
|||||
Net interest income |
|
|
$ |
450,246 |
|
|
|
|
|
$ |
441,607 |
|
|
|||||||
Interest rate spread |
|
|
|
|
1.65 |
% |
|
|
|
|
|
2.38 |
% |
|||||||
Net interest margin |
|
|
|
|
2.55 |
% |
|
|
|
|
|
2.57 |
% |
|||||||
(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 |
|||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
|||||||||
Numerator: |
|
|
|
|
|
|
|
|||||||||
Net income |
$ |
57,996 |
|
|
$ |
65,764 |
|
|
$ |
110,878 |
|
|
$ |
132,914 |
|
|
Distributed and undistributed earnings allocated to participating securities |
|
(881 |
) |
|
|
(999 |
) |
|
|
(1,679 |
) |
|
|
(1,927 |
) |
|
Income allocated to common stockholders for basic earnings per common share |
$ |
57,115 |
|
|
$ |
64,765 |
|
|
$ |
109,199 |
|
|
$ |
130,987 |
|
|
Denominator: |
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding |
|
74,424,631 |
|
|
|
80,300,069 |
|
|
|
74,588,904 |
|
|
|
82,629,098 |
|
|
Less average unvested stock awards |
|
(1,183,039 |
) |
|
|
(1,257,258 |
) |
|
|
(1,188,430 |
) |
|
|
(1,234,678 |
) |
|
Weighted average shares for basic earnings per common share |
|
73,241,592 |
|
|
|
79,042,811 |
|
|
|
73,400,474 |
|
|
|
81,394,420 |
|
|
Basic earnings per common share |
$ |
0.78 |
|
|
$ |
0.82 |
|
|
$ |
1.49 |
|
|
$ |
1.61 |
|
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
|||||||||
Numerator: |
|
|
|
|
|
|
|
|||||||||
Income allocated to common stockholders for basic earnings per common share |
$ |
57,115 |
|
|
$ |
64,765 |
|
|
$ |
109,199 |
|
|
$ |
130,987 |
|
|
Adjustment for earnings reallocated from participating securities |
|
1 |
|
|
|
3 |
|
|
|
5 |
|
|
|
4 |
|
|
Income used in calculating diluted earnings per common share |
$ |
57,116 |
|
|
$ |
64,768 |
|
|
$ |
109,204 |
|
|
$ |
130,991 |
|
|
Denominator: |
|
|
|
|
|
|
|
|||||||||
Weighted average shares for basic earnings per common share |
|
73,241,592 |
|
|
|
79,042,811 |
|
|
|
73,400,474 |
|
|
|
81,394,420 |
|
|
Dilutive effect of certain share-based awards |
|
179,318 |
|
|
|
350,734 |
|
|
|
312,708 |
|
|
|
244,808 |
|
|
Weighted average shares for diluted earnings per common share |
|
73,420,910 |
|
|
|
79,393,545 |
|
|
|
73,713,182 |
|
|
|
81,639,228 |
|
|
Diluted earnings per common share |
$ |
0.78 |
|
|
$ |
0.82 |
|
|
$ |
1.48 |
|
|
$ |
1.60 |
|
|
||||||||||||||||||
SELECTED RATIOS |
||||||||||||||||||
|
At or for the Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
|
|
|
|
2023 |
|
2022 |
|||||||||
Financial ratios (4) |
|
|
|
|
|
|
|
|
|
|||||||||
Return on average assets |
|
0.63 |
% |
|
|
0.58 |
% |
|
|
0.72 |
% |
|
0.60 |
% |
|
0.74 |
% |
|
Return on average stockholders’ equity |
|
9.2 |
% |
|
|
8.5 |
% |
|
|
9.7 |
% |
|
8.9 |
% |
|
9.3 |
% |
|
Net interest margin (3) |
|
2.47 |
% |
|
|
2.62 |
% |
|
|
2.63 |
% |
|
2.55 |
% |
|
2.57 |
% |
|
Loans to deposits |
|
95.3 |
% |
|
|
96.8 |
% |
|
|
84.7 |
% |
|
|
|
|
|||
Tangible book value per common share |
$ |
32.90 |
|
|
$ |
32.30 |
|
|
$ |
31.16 |
|
|
|
|
|
|
|
|
|
|||
Asset quality ratios |
|
|
|
|||
Non-performing loans to total loans (1)(5) |
0.48 |
% |
|
0.42 |
% |
|
Non-performing assets to total assets (2)(5) |
0.34 |
% |
|
0.29 |
% |
|
Allowance for credit losses to total loans |
0.68 |
% |
|
0.59 |
% |
|
Allowance for credit losses to non-performing loans (1)(5) |
140.52 |
% |
|
140.88 |
% |
|
Net charge-offs to average loans (4) |
0.09 |
% |
|
0.22 |
% |
|
(1) |
We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. |
|
(2) |
Non-performing assets include non-performing loans, OREO and other repossessed assets. |
|
(3) |
On a tax-equivalent basis. |
|
(4) |
Annualized for the three and six month periods as applicable. |
|
(5) |
Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling |
|
|
|
|
|
|
|
Required to be
|
||||||||||||||
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BankUnited,
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BankUnited,
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BankUnited,
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BankUnited,
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BankUnited,
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BankUnited,
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Capital ratios |
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Tier 1 leverage |
7.6 |
% |
|
8.8 |
% |
|
7.4 |
% |
|
8.6 |
% |
|
7.5 |
% |
|
8.4 |
% |
|
5.0 |
% |
|
Common Equity Tier 1 ("CET1") risk-based capital |
11.2 |
% |
|
13.0 |
% |
|
10.8 |
% |
|
12.5 |
% |
|
11.0 |
% |
|
12.4 |
% |
|
6.5 |
% |
|
Total risk-based capital |
13.0 |
% |
|
13.6 |
% |
|
12.6 |
% |
|
13.1 |
% |
|
12.7 |
% |
|
12.9 |
% |
|
10.0 |
% |
|
Tangible Common Equity/Tangible Assets |
6.8 |
% |
|
N/A |
|
|
6.5 |
% |
|
N/A |
|
|
6.4 |
% |
|
N/A |
|
|
N/A |
|
Non-GAAP Financial Measures
Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data):
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|
|
|
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Total stockholders’ equity |
$ |
2,526,310 |
|
$ |
2,481,394 |
|
$ |
2,506,017 |
|
Less: goodwill and other intangible assets |
|
77,637 |
|
|
77,637 |
|
|
77,637 |
|
Tangible stockholders’ equity |
$ |
2,448,673 |
|
$ |
2,403,757 |
|
$ |
2,428,380 |
|
|
|
|
|
|
|
||||
Common shares issued and outstanding |
|
74,429,948 |
|
|
74,423,365 |
|
|
77,944,216 |
|
|
|
|
|
|
|
||||
Book value per common share |
$ |
33.94 |
|
$ |
33.34 |
|
$ |
32.15 |
|
|
|
|
|
|
|
||||
Tangible book value per common share |
$ |
32.90 |
|
$ |
32.30 |
|
$ |
31.16 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230725471731/en/
Investor Relations:
llunak@bankunited.com
Source: