BankUnited, Inc. (the “Company”) (NYSE:BKU) today announced
financial results for the quarter ended June 30, 2017.
For the quarter ended June 30, 2017, the Company reported
net income of $66.4 million, or $0.60 per diluted share, compared
to $56.7 million, or $0.52 per diluted share, for the quarter ended
June 30, 2016. For the six months ended June 30, 2017, the
Company reported net income of $128.7 million, or $1.17 per diluted
share, compared to $111.6 million, or $1.03 per diluted share, for
the six months ended June 30, 2016.
Rajinder Singh, President and Chief Executive Officer, said,
"The second quarter was an excellent one for BankUnited, marked by
margin expansion along with strong earnings and solid loan and
deposit growth."
Performance Highlights
- Net interest income increased by $25.3
million to $239.6 million for the quarter ended June 30, 2017
from $214.3 million for the quarter ended June 30, 2016.
Interest income increased by $38.4 million, due primarily to
increases in the average balances of loans and investment
securities outstanding and to a lesser extent an increase in the
yield on interest earning assets. Interest expense increased by
$13.1 million, driven by increases in average interest bearing
liabilities and the cost of those liabilities. For the six months
ended June 30, 2017, net interest income increased by $49.0 million
to $470.2 million from $421.2 million for the six months ended June
30, 2016.
- The net interest margin, calculated on
a tax-equivalent basis, increased to 3.76% for the quarter ended
June 30, 2017 compared to 3.75% for the quarter ended
June 30, 2016 and 3.70% for the immediately preceding quarter
ended March 31, 2017. The net interest margin, calculated on a
tax-equivalent basis, was 3.73% for the six months ended June 30,
2017 compared to 3.79% for the six months ended June 30, 2016.
- Total interest earning assets increased
by $1.1 billion during the second quarter of 2017. Non-covered
loans and leases, including equipment under operating lease, grew
by $836 million during the quarter. For the six months ended June
30, 2017, total interest earning assets increased by $1.2
billion.
- Total deposits increased by $853
million for the quarter ended June 30, 2017 to $20.8 billion.
For the six months ended June 30, 2017, total deposits increased by
$1.3 billion.
- Book value per common share grew to
$24.16 at June 30, 2017, an 8.0% increase from June 30,
2016. Tangible book value per common share increased by 8.4% over
the same period, to $23.44 at June 30, 2017.
Capital
The Company and its banking subsidiary continue to exceed all
regulatory guidelines required to be considered well capitalized.
The Company’s and BankUnited, N.A.'s regulatory capital ratios at
June 30, 2017 were as follows:
BankUnited, Inc. BankUnited, N.A. Tier
1 leverage 8.7 % 9.5 % Common Equity Tier 1 ("CET1")
risk-based capital 11.9 % 13.0 % Tier 1 risk-based capital
11.9 % 13.0 % Total risk-based capital 12.7 % 13.8 %
Loans and Leases
Loans, including premiums, discounts and deferred fees and
costs, increased to $20.2 billion at June 30, 2017 from $19.4
billion at December 31, 2016. Non-covered loans grew to $19.7
billion while covered loans declined to $527 million at
June 30, 2017.
For the quarter ended June 30, 2017, non-covered commercial
loans, including commercial real estate loans, commercial and
industrial loans, and loans and leases originated by our commercial
lending subsidiaries, grew by $664 million to $15.8 billion.
Equipment under operating lease, net, grew by $14 million during
the second quarter of 2017. Non-covered residential and other
consumer loans grew by $158 million to $3.9 billion during the
second quarter of 2017.
The New York franchise contributed $135 million to non-covered
loan growth for the quarter while the Florida franchise contributed
$286 million. The Company's national platforms contributed $401
million of non-covered loan growth. We refer to our commercial
lending subsidiaries, our mortgage warehouse lending operations,
the small business finance unit ("SBF") and our residential loan
purchase program as national platforms. Non-covered loan growth in
New York was concentrated in the commercial and industrial
("C&I") and owner-occupied real estate categories. In Florida,
non-covered C&I and owner-occupied real estate loans grew by
$130 million and $65 million, respectively, while other categories
of commercial real estate loans grew by $99 million. The most
significant contributors to growth across the national platforms
were residential at $173 million, Pinnacle Public Finance at $108
million and mortgage warehouse lending at $137 million. At
June 30, 2017, the non-covered loan portfolio included $6.9
billion, $6.4 billion and $6.4 billion attributable to the Florida
franchise, the New York franchise and the national platforms,
respectively.
A comparison of portfolio composition at the dates indicated
follows:
Non-Covered Loans Total Loans June
30, 2017
December 31,
2016
June 30, 2017
December 31,
2016
Residential and other consumer loans 19.5 % 18.4 % 21.6 % 21.0 %
Multi-family 18.8 % 20.4 % 18.4 % 19.8 % Non-owner occupied
commercial real estate 20.0 % 19.9 % 19.5 % 19.3 % Construction and
land 1.3 % 1.7 % 1.2 % 1.6 % Owner occupied commercial real estate
9.6 % 9.3 % 9.3 % 9.0 % Commercial and industrial 18.4 % 18.1 %
17.9 % 17.5 % Commercial lending subsidiaries 12.4 % 12.2 % 12.1 %
11.8 % 100.0 % 100.0 % 100.0 % 100.0 %
Asset Quality and Allowance for Loan
and Lease Losses
For the quarters ended June 30, 2017 and 2016, the Company
recorded provisions for loan losses of $13.6 million and $14.3
million, respectively, including provisions related to non-covered
loans of $12.0 million and $14.3 million. For the six months ended
June 30, 2017 and 2016, the Company recorded provisions for loan
losses of $25.7 million and $18.0 million, respectively, including
provisions related to non-covered loans of $23.3 million and $18.7
million. The provision related to taxi medallion loans totaled $7.4
million and $4.6 million for the quarters ended June 30, 2017
and 2016, respectively, and $16.9 million and $5.8 million for the
six months ended June 30, 2017 and 2016, respectively.
Significant factors contributing to the decrease in the
provision for loan losses related to non-covered loans for the
quarter ended June 30, 2017 as compared to the quarter ended
June 30, 2016 were (i) a net decrease in the relative impact
on the provision of changes in quantitative and qualitative loss
factors and (ii) lower loan growth, partially offset by (iii) an
increase in the provision related to taxi medallion loans.
Factors contributing to the increase in the provision for loan
losses related to non-covered loans for the six months ended June
30, 2017 as compared to the six months ended June 30, 2016 were (i)
the increase in the provision related to taxi medallion loans and
(ii) an increase in the provision related to impaired loans in
other portfolio segments, partially offset by (iii) a net decrease
in the relative impact on the provision of changes in quantitative
and qualitative loss factors and (iv) the impact of lower loan
growth in 2017.
Non-covered, non-performing loans totaled $135.8 million or
0.69% of total non-covered loans at June 30, 2017 compared to
$132.7 million or 0.71% of total non-covered loans at
December 31, 2016. Non-performing taxi medallion loans
comprised $66.2 million or 0.34% of total non-covered loans at
June 30, 2017 and $60.7 million or 0.32% of total non-covered
loans at December 31, 2016. Non-covered, non-performing assets
also included $6.0 million and $8.4 million of OREO and other
repossessed assets at June 30, 2017 and December 31,
2016, respectively.
The ratios of the allowance for non-covered loan and lease
losses to total non-covered loans and to non-performing,
non-covered loans were 0.77% and 111.30%, respectively, at
June 30, 2017, compared to 0.80% and 113.68% at
December 31, 2016. The annualized ratio of net charge-offs to
average non-covered loans was 0.25% for the six months ended June
30, 2017, compared to 0.09% for the six months ended June 30, 2016.
A majority of the increase in the net charge-off ratio is
attributable to charge-offs of taxi medallion loans.
The following tables summarize the activity in the allowance for
loan and lease losses for the periods indicated (in thousands):
Three Months Ended June 30, 2017 Three
Months Ended June 30, 2016 ACI
Loans
Non-ACI
Loans
Non-
Covered
Loans
Total ACI
Loans
Non-ACI
Loans
Non-
CoveredLoans
Total Balance at beginning of period $ 831 $ 2,058 $
148,392 $ 151,281 $ — $ 3,885 $ 121,759 $ 125,644 Provision 981 672
11,966 13,619 — 57 14,276 14,333 Charge-offs — — (10,237 ) (10,237
) — (501 ) (5,325 ) (5,826 ) Recoveries — 7 978
985 — 12 1,555 1,567
Balance at end of period $ 1,812 $ 2,737 $ 151,099
$ 155,648 $ — $ 3,453 $ 132,265
$ 135,718
Six Months Ended June 30,
2017 Six Months Ended June 30, 2016
ACILoans Non-ACILoans
Non-
CoveredLoans
Total ACILoans
Non-ACILoans
Non-
CoveredLoans
Total Balance at beginning of period $ — $ 2,100 $
150,853 $ 152,953 $ — $ 4,868 $ 120,960 $ 125,828 Provision
(recovery) 1,812 620 23,287 25,719 — (674 ) 18,715 18,041
Charge-offs — (55 ) (25,006 ) (25,061 ) — (839 ) (9,133 ) (9,972 )
Recoveries — 72 1,965 2,037 — 98
1,723 1,821 Balance at end of period $ 1,812
$ 2,737 $ 151,099 $ 155,648 $ —
$ 3,453 $ 132,265 $ 135,718
Charge-offs related to taxi medallion loans totaled $5.9 million
and $1.1 million for the quarters ended June 30, 2017 and
2016, respectively, and $11.8 million and $1.6 million for the six
months ended June 30, 2017 and 2016, respectively.
Deposits
At June 30, 2017, deposits totaled $20.8 billion compared
to $19.5 billion at December 31, 2016. The average cost of
total deposits was 0.79% for the quarter ended June 30, 2017,
compared to 0.72% for the immediately preceding quarter ended March
31, 2017 and 0.66 % for the quarter ended June 30, 2016. The
average cost of total deposits was 0.76% for the six months ended
June 30, 2017, compared to 0.64% for the six months ended June 30,
2016.
Net interest income
Net interest income for the quarter ended June 30, 2017
increased to $239.6 million from $214.3 million for the quarter
ended June 30, 2016. Net interest income was $470.2 million
for the six months ended June 30, 2017, compared to $421.2 million
for the six months ended June 30, 2016. Increases in interest
income were partially offset by increases in interest expense. The
increases in interest income were primarily attributable to an
increase in the average balance of loans and related average
yields. Increases in the average balance of investment securities
and related average yields also contributed to increased interest
income. Interest expense increased due to an increase in average
interest bearing liabilities and an increase in the cost of
funds.
The Company’s net interest margin, calculated on a
tax-equivalent basis, was 3.76% for the quarter ended June 30,
2017 compared to 3.70% for the immediately preceding quarter ended
March 31, 2017 and 3.75% for the quarter ended June 30, 2016.
Increases in the yields on loans and investment securities, as
discussed further below, more than offset increases in the cost of
interest bearing liabilities.
Net interest margin, calculated on a tax-equivalent basis, was
3.73% for the six months ended June 30, 2017 compared to 3.79% for
the six months ended June 30, 2016. The yield on interest earning
assets remained unchanged, as the decrease in the average yield on
loans as discussed below was offset by an increase in the yield on
investment securities, while the cost of interest bearing
liabilities increased.
Significant factors impacting the changes in net interest margin
for the quarter and six months ended June 30, 2017 compared to the
quarter and six months ended June 30, 2016 included:
- The tax-equivalent yield on loans
increased to 5.24% for the quarter ended June 30, 2017 from
5.14% for the quarter ended June 30, 2016. This increase
reflected increased yields on both non-covered and covered loans,
somewhat offset by the continued increase in new loans, originated
at yields lower than those on covered loans, as a percentage of
total loans.
- Although yields on both non-covered and
covered loans increased, the tax-equivalent yield on loans declined
to 5.15% for the six months ended June 30, 2017 from 5.20% for the
six months ended June 30, 2016, primarily because lower yielding
new loans comprised a greater percentage of total loans.
- The tax-equivalent yield on non-covered
loans was 3.78% and 3.70%, respectively, for the quarter and six
months ended June 30, 2017, compared to 3.56% and 3.59% for the
quarter and six months ended June 30, 2016. The most significant
factor contributing to increased yields on non-covered loans was
the impact of increases in market interest rates.
- The tax-equivalent yield on covered
loans increased to 54.51% and 52.10%, respectively, for the quarter
and six months ended June 30, 2017 from 40.97% and 39.54% for the
quarter and six months ended June 30, 2016.
- The tax-equivalent yield on investment
securities increased to 3.05% and 3.03%, respectively, for the
quarter and six months ended June 30, 2017 from 2.82% and 2.80% for
the quarter and six months ended June 30, 2016.
- The average rate on interest bearing
liabilities increased to 1.07% and 1.03%, respectively, for the
quarter and six months ended June 30, 2017 from 0.93% and 0.94% for
the quarter and six months ended June 30, 2016, reflecting higher
average rates on both interest bearing deposits and FHLB advances.
Increases in the cost of interest bearing liabilities primarily
reflect increases in market rates.
The Company’s net interest margin continues to be impacted by
reclassifications from non-accretable difference to accretable
yield on ACI loans. Non-accretable difference at acquisition
represented the difference between the total contractual payments
due and the cash flows expected to be received on these loans. The
accretable yield on ACI loans represented the amount by which
undiscounted expected future cash flows exceeded the recorded
investment in the loans. As the Company’s expected cash flows from
ACI loans have increased since the FSB Acquisition, the Company has
reclassified amounts from non-accretable difference to accretable
yield.
Changes in accretable yield on ACI loans for the six months
ended June 30, 2017 and the year ended December 31, 2016 were
as follows (in thousands):
Balance at December 31, 2015 $ 902,565 Reclassifications
from non-accretable difference 76,751 Accretion (303,931 ) Balance
at December 31, 2016 675,385 Reclassifications from non-accretable
difference 53,338 Accretion (153,199 ) Balance at June 30, 2017 $
575,524
Non-interest income
Non-interest income totaled $29.9 million and $58.0 million,
respectively, for the quarter and six months ended June 30, 2017
compared to $28.9 million and $52.1 million, respectively, for the
quarter and six months ended June 30, 2016.
Non-interest expense
Non-interest expense totaled $160.4 million and $317.0 million,
respectively, for the quarter and six months ended June 30, 2017
compared to $144.1 million and $286.2 million, respectively, for
the quarter and six months ended June 30, 2016. The most
significant components of the increases in non-interest expense for
the quarter and six months were increases in amortization of the
FDIC indemnification asset of $7.6 million and $12.4 million,
respectively, and increases in employee compensation and benefits
of $4.6 million and $8.8 million, respectively.
Amortization of the FDIC indemnification asset was $45.7 million
and $90.1 million, respectively, for the quarter and six months
ended June 30, 2017, compared to $38.1 million and $77.8 million,
respectively, for the quarter and six months ended June 30, 2016.
The amortization rate increased to 41.76% and 38.92%, respectively,
for the quarter and six months ended June 30, 2017 from 23.08% and
22.65%, respectively, for the quarter and six months ended June 30,
2016. As the expected cash flows from ACI loans have increased,
expected cash flows from the FDIC indemnification asset have
decreased, resulting in continued increases in the amortization
rate.
Provision for income
taxes
The effective income tax rate was 30.4% and 30.6%, respectively,
for the quarter and six months ended June 30, 2017, compared to
33.0% and 33.9%, respectively, for the quarter and six months ended
June 30, 2016. The effective income tax rate differed from the
statutory federal income tax rate of 35% in both periods due
primarily to the effect of income not subject to tax, partially
offset by state income taxes. In addition, the effective income tax
rate for the six months ended June 30, 2017 reflected the impact of
excess tax benefits resulting from activity related to vesting of
share-based awards and exercise of stock options in the amount of
$2.9 million. A change in accounting standards related to stock
based compensation required the Company to recognize these excess
tax benefits as a component of the provision for income taxes
beginning January 1, 2017; previously these excess tax benefits
were recognized in paid-in capital.
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 base for comparability to other financial institutions.
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
June 30, 2017 (in thousands except share and per share
data):
Total stockholders’ equity $ 2,580,820 Less: goodwill and
other intangible assets 77,919 Tangible stockholders’ equity $
2,502,901 Common shares issued and outstanding 106,800,972
Book value per common share $ 24.16 Tangible book
value per common share $ 23.44
Earnings Conference Call and
Presentation
A conference call to discuss quarterly results will be held at
9:00 a.m. ET on Wednesday, July 26, 2017 with President
and Chief Executive Officer, Rajinder P. Singh, and Chief Financial
Officer, Leslie N. Lunak.
The earnings release will be available on the Investor Relations
page under About Us on www.bankunited.com prior to the call. The call may
be accessed via a live Internet webcast at www.bankunited.com or through a dial in telephone
number at (855) 798-3052 (domestic) or (234) 386-2812
(international). The name of the call is BankUnited, Inc. and the
confirmation number for the call is 51572813. A replay of the call
will be available from 12:00 p.m. ET on July 26th through 11:59
p.m. ET on August 2nd by calling (855) 859-2056 (domestic) or (404)
537-3406 (international). The pass code for the replay is 51572813.
An archived webcast will also be available on the Investor
Relations page of www.bankunited.com.
About BankUnited, Inc. and the FSB
Acquisition
BankUnited, Inc., with total assets of $29.0 billion at
June 30, 2017, is the bank holding company of BankUnited,
N.A., a national bank headquartered in Miami Lakes, Florida with 90
banking centers in 15 Florida counties and 6 banking centers in the
New York metropolitan area at June 30, 2017.
On May 21, 2009, BankUnited acquired substantially all of
the assets and assumed all of the non-brokered deposits and
substantially all other liabilities of BankUnited, FSB from the
FDIC, in a transaction referred to as the FSB Acquisition.
Concurrently with the FSB Acquisition, BankUnited entered into two
loss sharing agreements, or the Loss Sharing Agreements, which
covered certain legacy assets, including the entire legacy loan
portfolio and OREO, and certain purchased investment
securities. Assets covered by the Loss Sharing Agreements are
referred to as “covered assets” (or, in certain cases, “covered
loans”). The Loss Sharing Agreements do not apply to subsequently
purchased or originated loans (“new loans”) or other assets.
Effective May 22, 2014 and consistent with the terms of the Loss
Sharing Agreements, loss share coverage was terminated for those
commercial loans and OREO and certain investment securities that
were previously covered under the Loss Sharing
Agreements. Pursuant to the terms of the Loss Sharing
Agreements, the covered assets are subject to a stated loss
threshold whereby the FDIC will reimburse BankUnited for 80% of
losses, including certain interest and expenses, up to the $4.0
billion stated threshold and 95% of losses in excess of the $4.0
billion stated threshold. The Company’s current estimate of
cumulative losses on the covered assets is approximately $3.6
billion. The Company has received $2.7 billion from the FDIC
in reimbursements under the Loss Sharing Agreements for claims
filed for incurred losses as of June 30, 2017.
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” 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 relating to the Company’s operations,
financial results, financial condition, business prospects, growth
strategy and liquidity. 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, 2016 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) June 30, 2017
December 31, 2016 ASSETS Cash and due from
banks: Non-interest bearing $ 37,639 $ 40,260 Interest bearing
105,081 35,413 Interest bearing deposits at Federal Reserve Bank
85,640 372,640 Cash and cash equivalents 228,360
448,313 Investment securities available for sale, at fair value
6,727,327 6,073,584 Investment securities held to maturity 10,000
10,000 Non-marketable equity securities 271,947 284,272 Loans held
for sale 29,016 41,198 Loans (including covered loans of $527,310
and $614,042) 20,231,336 19,395,394 Allowance for loan and lease
losses (155,648 ) (152,953 ) Loans, net 20,075,688 19,242,441 FDIC
indemnification asset 406,820 515,933 Bank owned life insurance
243,082 239,736 Equipment under operating lease, net 573,075
539,914 Deferred tax asset, net 26,181 62,940 Goodwill and other
intangible assets 77,919 78,047 Other assets 324,321 343,773
Total assets $ 28,993,736 $ 27,880,151
LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities:
Demand deposits: Non-interest bearing $ 3,021,959 $ 2,960,591
Interest bearing 1,558,174 1,523,064 Savings and money market
10,071,034 9,251,593 Time 6,126,673 5,755,642 Total
deposits 20,777,840 19,490,890 Federal Home Loan Bank advances
4,949,785 5,239,348 Notes and other borrowings 402,823 402,809
Other liabilities 282,468 328,675 Total liabilities
26,412,916 25,461,722
Commitments and contingencies
Stockholders' equity: Common stock, par value $0.01
per share, 400,000,000 shares authorized; 106,800,972 and
104,166,945 shares issued and outstanding 1,068 1,042 Paid-in
capital 1,488,159 1,426,459 Retained earnings 1,032,308 949,681
Accumulated other comprehensive income 59,285 41,247
Total stockholders' equity 2,580,820 2,418,429 Total
liabilities and stockholders' equity $ 28,993,736 $
27,880,151
BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In
thousands, except per share data) Three Months
Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
Interest income: Loans $ 249,409 $ 220,630 $ 485,771 $
435,206 Investment securities 46,054 36,710 89,773 70,251 Other
3,372 3,124 6,829 5,814 Total interest
income 298,835 260,464 582,373 511,271
Interest expense: Deposits 39,514 28,833 74,242 55,459
Borrowings 19,732 17,321 37,949 34,661
Total interest expense 59,246 46,154 112,191
90,120 Net interest income before provision for loan losses
239,589 214,310 470,182 421,151 Provision for (recovery of) loan
losses (including $1,653, $57, $2,432 and $(674) for covered loans)
13,619 14,333 25,719 18,041 Net
interest income after provision for loan losses 225,970
199,977 444,463 403,110
Non-interest
income: Income from resolution of covered assets, net 8,361
9,545 15,666 17,543 Net loss on FDIC indemnification (2,588 )
(4,114 ) (9,336 ) (10,403 ) Service charges and fees 5,539 4,796
10,616 9,358 Gain (loss) on sale of loans, net (including $(3,447),
$(4,151), $(1,565) and $(4,863) related to covered loans) (404 )
(903 ) 4,154 587 Gain on investment securities available for sale,
net 627 3,858 2,263 7,057 Lease financing 13,141 10,974 26,780
21,574 Other non-interest income 5,217 4,701 7,894
6,339 Total non-interest income 29,893 28,857
58,037 52,055
Non-interest expense:
Employee compensation and benefits 60,388 55,752 120,059 111,212
Occupancy and equipment 19,251 19,065 37,860 38,332 Amortization of
FDIC indemnification asset 45,663 38,060 90,126 77,754 Deposit
insurance expense 5,588 4,231 11,063 7,923 Professional fees 4,785
3,604 9,825 6,235 Telecommunications and data processing 3,745
3,721 7,029 7,054 Depreciation of equipment under operating lease
8,733 6,647 16,750 13,149 Other non-interest expense 12,282
13,032 24,280 24,561 Total non-interest
expense 160,435 144,112 316,992 286,220
Income before income taxes 95,428 84,722 185,508 168,945 Provision
for income taxes 29,021 27,997 56,808 57,346
Net income $ 66,407 $ 56,725 $ 128,700
$ 111,599 Earnings per common share, basic $ 0.60 $
0.53 $ 1.18 $ 1.04 Earnings per common share,
diluted $ 0.60 $ 0.52 $ 1.17 $ 1.03
Cash dividends declared per common share $ 0.21 $ 0.21
$ 0.42 $ 0.42
BANKUNITED, INC. AND
SUBSIDIARIES AVERAGE BALANCES AND YIELDS (Dollars in
thousands) Three Months Ended June 30,
2017 2016 AverageBalance
Interest (1)
Yield/ Rate
(1)(2)
AverageBalance Interest (1)
Yield/ Rate (1)(2) Assets:
Interest earning assets: Non-covered loans $ 19,063,873 $
180,015 3.78 % $ 16,881,425 $ 149,722 3.56 % Covered loans 562,049
76,588 54.51 % 745,960 76,384 40.97 %
Total loans 19,625,922 256,603 5.24 % 17,627,385 226,106 5.14 %
Investment securities (3) 6,445,336 49,205 3.05 % 5,594,891 39,442
2.82 % Other interest earning assets 555,755 3,372
2.43 % 534,119 3,124 2.35 % Total interest earning
assets 26,627,013 309,180 4.65 % 23,756,395 268,672 4.53 %
Allowance for loan and lease losses (154,745 ) (131,061 )
Non-interest earning assets 1,754,208 1,950,846 Total
assets $ 28,226,476 $ 25,576,180
Liabilities and
Stockholders' Equity: Interest bearing liabilities:
Interest bearing demand deposits $ 1,537,017 2,814 0.73 % $
1,435,252 2,115 0.59 % Savings and money market deposits 9,438,586
18,356 0.78 % 8,152,354 12,314 0.61 % Time deposits 5,996,229
18,344 1.23 % 5,189,699 14,404 1.12 %
Total interest bearing deposits 16,971,832 39,514 0.93 % 14,777,305
28,833 0.78 % FHLB advances 4,795,809 14,417 1.21 % 4,715,960
11,999 1.02 % Notes and other borrowings 402,818 5,315
5.28 % 402,751 5,322 5.29 % Total
interest bearing liabilities 22,170,459 59,246 1.07 %
19,896,016 46,154 0.93 % Non-interest bearing demand
deposits 3,025,018 2,943,378 Other non-interest bearing liabilities
451,967 415,071 Total liabilities 25,647,444
23,254,465 Stockholders' equity 2,579,032 2,321,715
Total liabilities and stockholders' equity $ 28,226,476 $
25,576,180 Net interest income $ 249,934 $ 222,518
Interest rate spread 3.58 % 3.60 % Net interest margin 3.76
% 3.75 %
(1) On a tax-equivalent basis where applicable
(2) Annualized
(3) At fair value except for securities held to maturity
BANKUNITED, INC. AND SUBSIDIARIES AVERAGE BALANCES AND
YIELDS (Dollars in thousands) Six
Months Ended June 30, 2017 2016
AverageBalance
Interest (1)
Yield/ Rate (1)(2)
AverageBalance
Interest (1)
Yield/ Rate (1)(2) Assets:
Interest earning assets: Non-covered loans $ 18,894,681 $
347,998 3.70 % $ 16,403,069 $ 293,560 3.59 % Covered loans 582,744
151,742 52.10 % 769,873 152,173 39.54 %
Total loans 19,477,425 499,740 5.15 % 17,172,942 445,733 5.20 %
Investment securities (3) 6,349,434
96,291
3.03 % 5,375,775 75,217 2.80 % Other interest earning assets
563,926 6,829 2.44 % 517,978 5,814 2.26
% Total interest earning assets 26,390,785
602,860
4.58 % 23,066,695 526,764 4.58 % Allowance for loan and lease
losses (155,380 ) (130,245 ) Non-interest earning assets 1,782,243
1,978,162 Total assets $ 28,017,648 $
24,914,612
Liabilities and Stockholders' Equity:
Interest bearing liabilities: Interest bearing demand
deposits $ 1,551,025 5,499 0.71 % $ 1,292,458 3,916 0.61 % Savings
and money market deposits 9,349,203 33,777 0.73 % 8,130,074 24,311
0.60 % Time deposits 5,835,121
34,966
1.21 % 4,979,686 27,232 1.10 % Total interest
bearing deposits 16,735,349
74,242
0.89 % 14,402,218 55,459 0.77 % FHLB advances 4,871,917 27,316 1.13
% 4,473,793 24,016 1.08 % Notes and other borrowings 402,818
10,633 5.28 % 403,023 10,645 5.28 %
Total interest bearing liabilities 22,010,084
112,191
1.03 % 19,279,034 90,120 0.94 % Non-interest bearing
demand deposits 3,033,989 2,926,585 Other non-interest bearing
liabilities 430,567 417,467 Total liabilities
25,474,640 22,623,086 Stockholders' equity 2,543,008
2,291,526 Total liabilities and stockholders' equity $
28,017,648 $ 24,914,612 Net interest income $ 490,669
$ 436,644 Interest rate spread 3.55 % 3.64 % Net
interest margin 3.73 % 3.79 %
(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 June 30, Six
Months Ended June 30,
2017 2016 2017 2016
Basic earnings per common share: Numerator: Net
income $ 66,407 $ 56,725 $ 128,700 $ 111,599 Distributed and
undistributed earnings allocated to participating securities (2,483
) (2,282 ) (4,805 ) (4,490 ) Income allocated to common
stockholders for basic earnings per common share $ 63,924 $ 54,443
$ 123,895 $ 107,109
Denominator: Weighted average common
shares outstanding 106,827,077 104,160,894 106,325,244 104,039,977
Less average unvested stock awards (1,144,135 ) (1,193,517 )
(1,102,836 ) (1,173,213 ) Weighted average shares for basic
earnings per common share 105,682,942 102,967,377
105,222,408 102,866,764
Basic earnings per common
share $ 0.60 $ 0.53 $ 1.18 $ 1.04
Diluted earnings per common share: Numerator: Income
allocated to common stockholders for basic earnings per common
share $ 63,924 $ 54,443 $ 123,895 $ 107,109 Adjustment for earnings
reallocated from participating securities 7 (81 ) 15
(182 ) Income used in calculating diluted earnings per common share
$ 63,931 $ 54,362 $ 123,910 $ 106,927
Denominator: Weighted
average shares for basic earnings per common share 105,682,942
102,967,377 105,222,408 102,866,764 Dilutive effect of stock
options and executive share-based awards 455,135 764,435
537,491 771,592 Weighted average shares for
diluted earnings per common share 106,138,077 103,731,812
105,759,899 103,638,356
Diluted earnings
per common share $ 0.60 $ 0.52 $ 1.17 $
1.03
BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS Three Months Ended June
30, Six Months Ended June 30, 2017
2016 2017 2016 Financial ratios
(5) Return on average assets 0.94 % 0.89 % 0.93 % 0.90 %
Return on average stockholders’ equity 10.33 % 9.83 % 10.21 % 9.79
% Net interest margin (4) 3.76 % 3.75 % 3.73 % 3.79 %
June 30, 2017 December 31, 2016
Non-
Covered
Total
Non-
Covered
Total Asset quality ratios Non-performing
loans to total loans (1) (3) 0.69 % 0.69 % 0.71 % 0.70 %
Non-performing assets to total assets (2) 0.49 % 0.51 % 0.51 % 0.53
% Allowance for loan and lease losses to total loans (3) 0.77 %
0.77 % 0.80 % 0.79 % Allowance for loan and lease losses to
non-performing loans (1) 111.30 % 111.65 % 113.68 % 112.55 % Net
charge-offs to average loans (5) 0.25 % 0.24 % 0.13 % 0.13 %
(1) We define non-performing loans to include non-accrual loans,
and loans, other than ACI loans, that are past due 90 days or more
and still accruing. Contractually delinquent ACI loans on
which interest continues to be accreted are excluded from
non-performing loans.
(2) Non-performing assets include non-performing loans, OREO and
other repossessed assets.
(3) Total loans include premiums, discounts, and deferred fees
and costs.
(4) On a tax-equivalent basis.
(5) Annualized for the three and six-month periods.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170726005170/en/
BankUnited, Inc.Investor Relations:Leslie N. Lunak,
786-313-1698llunak@bankunited.com
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