BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended September 30, 2022.
"We are happy to announce a very strong earnings quarter with double digit growth in EPS. We're optimistic about the opportunities we see in front of us," said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended September 30, 2022, the Company reported net income of $87.9 million, or $1.12 per diluted share, compared to $65.8 million, or $0.82 per diluted share for the immediately preceding quarter ended June 30, 2022 and $86.9 million, or $0.94 per diluted share, for the quarter ended September 30, 2021. Earnings for the quarter ended September 30, 2022 generated an annualized return on equity of 13.5%. For the nine months ended September 30, 2022, the Company reported net income of $220.8 million, or $2.71 per diluted share, compared to $289.7 million, or $3.12 per diluted share, for the nine months ended September 30, 2021. Earnings for the nine months ended September 30, 2021 were favorably impacted by a $67.4 million recovery of the provision for credit losses.
Quarterly Highlights
- The net interest margin, calculated on a tax-equivalent basis, expanded to 2.76% for the quarter ended September 30, 2022 from 2.63% for the immediately preceding quarter and 2.33% for the quarter ended September 30, 2021. Net interest income increased by $10.4 million compared to the immediately preceding quarter ended June 30, 2022 and by $40.7 million compared to the quarter ended September 30, 2021.
- In response to the rising interest rate environment, the average cost of total deposits increased to 0.78% for the quarter ended September 30, 2022, from 0.30% for the immediately preceding quarter ended June 30, 2022 and 0.20% for the quarter ended September 30, 2021. The yield on average interest earning assets increased to 3.80% for the quarter ended September 30, 2022 from 3.11% for the immediately preceding quarter and 2.79% for the quarter ended September 30, 2021.
- For the quarter ended September 30, 2022, the Company recorded a provision for credit losses of $3.7 million compared to a provision of $24.0 million for the immediately preceding quarter ended June 30, 2022 and a recovery of the provision for credit losses of $(11.8) million for the quarter ended September 30, 2021. The ratio of the ACL to total loans was consistent with the prior quarter-end at 0.54%.
- Loans, excluding the runoff of PPP loans, grew by $186 million for the quarter ended September 30, 2022. The core C&I and commercial real estate portfolio segments grew by a total of $444 million. As expected given the market-wide decline in mortgage origination activity, mortgage warehouse loans declined by $194 million.
- Total deposits declined by $1.1 billion during the quarter ended September 30, 2022. Non-interest bearing demand deposits declined by $851 million to 32% of total deposits, from 34% of total deposits at June 30, 2022. Year to date, non-interest bearing demand deposits declined by $182 million. Time deposits grew by $976 million during the quarter ended September 30, 2022, reflecting a strategy to extend the term of deposits.
- The positive trend in levels of criticized and classified loans continued during the quarter ended September 30, 2022, declining by $175 million; the annualized net charge-off ratio declined to 0.16% compared to 0.29% for the year ended December 31, 2021. The ratio of non-performing loans to total loans was 0.64% at September 30, 2022. The guaranteed portion of SBA loans on non-accrual status represented 0.17% of total loans and 27% of non-performing loans at September 30, 2022.
- On October 5, 2022, BankUnited was named #3 on the list of the healthiest 100 workplaces in America published by Healthiest Employers, highlighting our commitment to employee wellness initiatives and programs.
- Hurricane Ian made landfall on the southwest Florida coast on September 28, 2022. BankUnited did not sustain significant damage or disruption to facilities or operations. Based on information collected to date, we do not expect the impact of the storm to be material to our financial condition or results of operations.
- As previously reported, on September 13, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended September 30, 2022, the Company repurchased approximately 0.3 million shares of its common stock for an aggregate purchase price of $10.8 million, at a weighted average price of $34.36 per share.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
|
September 30, 2022 |
|
June 30, 2022 |
|
December 31, 2021 |
||||||||||||
Residential and other consumer loans |
$ |
8,853,884 |
|
36.4 |
% |
|
$ |
8,840,387 |
|
36.7 |
% |
|
$ |
8,368,380 |
|
35.2 |
% |
Multi-family |
|
962,546 |
|
4.0 |
% |
|
|
1,017,500 |
|
4.2 |
% |
|
|
1,154,738 |
|
4.9 |
% |
Non-owner occupied commercial real estate |
|
4,368,686 |
|
18.1 |
% |
|
|
4,276,697 |
|
17.7 |
% |
|
|
4,381,610 |
|
18.4 |
% |
Construction and land |
|
246,202 |
|
1.0 |
% |
|
|
213,833 |
|
0.9 |
% |
|
|
165,390 |
|
0.7 |
% |
Owner occupied commercial real estate |
|
1,919,074 |
|
7.9 |
% |
|
|
1,907,349 |
|
7.9 |
% |
|
|
1,944,658 |
|
8.2 |
% |
Commercial and industrial |
|
5,786,907 |
|
23.9 |
% |
|
|
5,423,998 |
|
22.5 |
% |
|
|
4,790,275 |
|
20.2 |
% |
PPP |
|
10,191 |
|
— |
% |
|
|
29,828 |
|
0.1 |
% |
|
|
248,505 |
|
1.0 |
% |
Pinnacle |
|
932,187 |
|
3.8 |
% |
|
|
977,930 |
|
4.1 |
% |
|
|
919,641 |
|
3.9 |
% |
Bridge - franchise finance |
|
254,137 |
|
1.0 |
% |
|
|
262,570 |
|
1.1 |
% |
|
|
342,124 |
|
1.4 |
% |
Bridge - equipment finance |
|
310,035 |
|
1.3 |
% |
|
|
333,125 |
|
1.4 |
% |
|
|
357,599 |
|
1.5 |
% |
Mortgage warehouse lending ("MWL") |
|
622,883 |
|
2.6 |
% |
|
|
816,797 |
|
3.4 |
% |
|
|
1,092,133 |
|
4.6 |
% |
|
$ |
24,266,732 |
|
100.0 |
% |
|
$ |
24,100,014 |
|
100.0 |
% |
|
$ |
23,765,053 |
|
100.0 |
% |
In the aggregate, commercial loans, excluding the runoff of PPP, grew by $173 million during the quarter ended September 30, 2022. The largest increase was in the commercial and industrial segment, including owner-occupied commercial real estate, which grew by $375 million, followed by the commercial real estate segment with $69 million in growth. The remaining commercial segments declined during the quarter; the largest decline was in MWL, with $194 million. MWL utilization declined to 32% at September 30, 2022, compared to 46% at June 30, 2022 and 56% at December 31, 2021.
Asset Quality and the Allowance for Credit Losses ("ACL")
Non-performing loans totaled $156.4 million or 0.64% of total loans at September 30, 2022, compared to $144.0 million or 0.60% of total loans at June 30, 2022. Non-performing loans included $41.8 million and $43.4 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.17% and 0.18% of total loans at September 30, 2022 and June 30, 2022, respectively.
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
|
September 30, 2022 |
|
June 30, 2022 |
|
December 31, 2021 |
|||
Special mention |
$ |
26,939 |
|
$ |
89,153 |
|
$ |
148,593 |
Substandard - accruing |
|
662,716 |
|
|
787,399 |
|
|
1,136,378 |
Substandard - non-accruing |
|
104,994 |
|
|
117,518 |
|
|
129,579 |
Doubtful |
|
32,093 |
|
|
7,971 |
|
|
47,754 |
Total |
$ |
826,742 |
|
$ |
1,002,041 |
|
$ |
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 September 30, 2022 and June 30, 2022, and the year ended December 31, 2021 (dollars in thousands):
|
ACL |
|
ACL to Total
|
|
ACL to Non-
|
|
Net Charge-offs to
|
||||
December 31, 2021 |
$ |
126,457 |
|
0.53 |
% |
|
61.41 |
% |
|
0.29 |
% |
June 30, 2022 |
$ |
130,239 |
|
0.54 |
% |
|
90.45 |
% |
|
0.23 |
% |
September 30, 2022 |
$ |
130,671 |
|
0.54 |
% |
|
83.54 |
% |
|
0.16 |
% |
___________________________
| (1) | ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.60%, 0.61%, and 0.62% at September 30, 2022, June 30, 2022 and December 31, 2021, respectively. |
|
(2) |
Annualized for the six months ended June 30, 2022 and the nine months ended September 30, 2022. |
The ACL at September 30, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended September 30, 2022, the Company recorded a provision for credit losses of $3.7 million, including $2.8 million related to funded loans. Offsetting factors impacting the provision for credit losses for the quarter ended September 30, 2022 included an increase related to the updated economic forecast, increases in specific reserves, loan growth and a $5 million provision related to the potential impact of Hurricane Ian, partially offset by decreases in certain qualitative factors and the impact of improving borrower financial results.
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Beginning balance |
$ |
130,239 |
|
|
$ |
175,642 |
|
|
$ |
126,457 |
|
|
$ |
257,323 |
|
Provision (recovery) |
|
2,753 |
|
|
|
(11,554 |
) |
|
|
33,406 |
|
|
|
(65,523 |
) |
Net charge-offs |
|
(2,321 |
) |
|
|
(4,473 |
) |
|
|
(29,192 |
) |
|
|
(32,185 |
) |
Ending balance |
$ |
130,671 |
|
|
$ |
159,615 |
|
|
$ |
130,671 |
|
|
$ |
159,615 |
|
Net Interest Income
Net interest income for the quarter ended September 30, 2022 was $235.8 million compared to $225.4 million for the immediately preceding quarter ended June 30, 2022 and $195.1 million for the quarter ended September 30, 2021. Interest income increased by $59.1 million for the quarter ended September 30, 2022 compared to the immediately preceding quarter while interest expense increased by $48.6 million.
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.13% to 2.76% for the quarter ended September 30, 2022, from 2.63% for the immediately preceding quarter ended June 30, 2022. Factors impacting the net interest margin for the quarter ended September 30, 2022 included:
- The tax-equivalent yield on investment securities increased to 3.12% for the quarter ended September 30, 2022, from 2.12% for the quarter ended June 30, 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 4.11% for the quarter ended September 30, 2022, from 3.59% for the quarter ended June 30, 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 1.14% for the quarter ended September 30, 2022, from 0.45% for the quarter ended June 30, 2022, primarily in response to the rising interest rate environment. Growth in time deposits as a percentage of interest bearing deposits also contributed to this increase, as we implemented a strategy to extend the term of interest bearing deposits.
- The average rate paid on FHLB advances increased to 2.25% for the quarter ended September 30, 2022, from 1.07% for the quarter ended June 30, 2022, primarily in response to the rising interest rate environment.
Non-interest income and Non-interest expense
Non-interest income totaled $23.1 million for the quarter ended September 30, 2022 compared to $13.5 million for the quarter ended June 30, 2022 and $25.5 million for the quarter ended September 30, 2021.
- Gain (loss) on investment securities was a net gain of $0.1 million for the quarter ended September 30, 2022, compared to a net loss of $(8.4) million for the quarter ended June 30, 2022, and a net loss of $(0.7) million for the quarter ended September 30, 2021. The net loss for the quarter ended June 30, 2022 was primarily attributable to a $9.3 million decrease in the fair value of certain preferred stock investments.
Non-interest expense increased by $10.7 million for the quarter ended September 30, 2022 compared to the quarter ended June 30, 2022. As expected, an increasing trend was reflected in the compensation and technology categories as we continue to invest in people and technology to support future growth.
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, October 20, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish.
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. 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/BI4d0f0999272845dd996e3017ab4ea49a. 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 BankUnited, Inc.
BankUnited, Inc., with total assets of $36.6 billion at September 30, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 58 banking centers in 12 Florida counties, 4 banking centers in the New York metropolitan area, and 1 banking center located in Dallas, Texas.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance.
The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).
BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) |
|||||||
|
September 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Cash and due from banks: |
|
|
|
||||
Non-interest bearing |
$ |
18,380 |
|
|
$ |
19,143 |
|
Interest bearing |
|
707,758 |
|
|
|
295,714 |
|
Cash and cash equivalents |
|
726,138 |
|
|
|
314,857 |
|
Investment securities (including securities recorded at fair value of $9,787,427 and $10,054,198) |
|
9,797,427 |
|
|
|
10,064,198 |
|
Non-marketable equity securities |
|
261,784 |
|
|
|
135,859 |
|
Loans |
|
24,266,732 |
|
|
|
23,765,053 |
|
Allowance for credit losses |
|
(130,671 |
) |
|
|
(126,457 |
) |
Loans, net |
|
24,136,061 |
|
|
|
23,638,596 |
|
Bank owned life insurance |
|
308,176 |
|
|
|
309,477 |
|
Operating lease equipment, net |
|
579,693 |
|
|
|
640,726 |
|
Goodwill |
|
77,637 |
|
|
|
77,637 |
|
Other assets |
|
707,978 |
|
|
|
634,046 |
|
Total assets |
$ |
36,594,894 |
|
|
$ |
35,815,396 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Liabilities: |
|
|
|
||||
Demand deposits: |
|
|
|
||||
Non-interest bearing |
$ |
8,794,109 |
|
|
$ |
8,975,621 |
|
Interest bearing |
|
2,341,342 |
|
|
|
3,709,493 |
|
Savings and money market |
|
12,513,398 |
|
|
|
13,368,745 |
|
Time |
|
3,700,226 |
|
|
|
3,384,243 |
|
Total deposits |
|
27,349,075 |
|
|
|
29,438,102 |
|
Federal funds purchased |
|
— |
|
|
|
199,000 |
|
FHLB advances |
|
5,295,000 |
|
|
|
1,905,000 |
|
Notes and other borrowings |
|
721,045 |
|
|
|
721,416 |
|
Other liabilities |
|
748,789 |
|
|
|
514,117 |
|
Total liabilities |
|
34,113,909 |
|
|
|
32,777,635 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock, par value $0.01 per share, 400,000,000 shares authorized; 77,599,408 and 85,647,986 shares issued and outstanding |
|
776 |
|
|
|
856 |
|
Paid-in capital |
|
381,411 |
|
|
|
707,503 |
|
Retained earnings |
|
2,506,539 |
|
|
|
2,345,342 |
|
Accumulated other comprehensive loss |
|
(407,741 |
) |
|
|
(15,940 |
) |
Total stockholders' equity |
|
2,480,985 |
|
|
|
3,037,761 |
|
Total liabilities and stockholders' equity |
$ |
36,594,894 |
|
|
$ |
35,815,396 |
|
BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) |
||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|||||||||
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|||||||||
Loans |
$ |
244,884 |
|
$ |
209,223 |
|
|
$ |
194,689 |
|
|
$ |
645,669 |
|
|
$ |
602,544 |
|
Investment securities |
|
77,109 |
|
|
54,771 |
|
|
|
38,243 |
|
|
|
174,928 |
|
|
|
114,418 |
|
Other |
|
4,031 |
|
|
2,979 |
|
|
|
1,413 |
|
|
|
8,364 |
|
|
|
4,613 |
|
Total interest income |
|
326,024 |
|
|
266,973 |
|
|
|
234,345 |
|
|
|
828,961 |
|
|
|
721,575 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
53,206 |
|
|
20,501 |
|
|
|
14,273 |
|
|
|
85,569 |
|
|
|
53,965 |
|
Borrowings |
|
36,982 |
|
|
21,056 |
|
|
|
24,950 |
|
|
|
73,498 |
|
|
|
77,937 |
|
Total interest expense |
|
90,188 |
|
|
41,557 |
|
|
|
39,223 |
|
|
|
159,067 |
|
|
|
131,902 |
|
Net interest income before provision for credit losses |
|
235,836 |
|
|
225,416 |
|
|
|
195,122 |
|
|
|
669,894 |
|
|
|
589,673 |
|
Provision for (recovery of) credit losses |
|
3,720 |
|
|
23,996 |
|
|
|
(11,842 |
) |
|
|
35,546 |
|
|
|
(67,365 |
) |
Net interest income after provision for credit losses |
|
232,116 |
|
|
201,420 |
|
|
|
206,964 |
|
|
|
634,348 |
|
|
|
657,038 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|||||||||
Deposit service charges and fees |
|
6,064 |
|
|
5,896 |
|
|
|
5,553 |
|
|
|
17,920 |
|
|
|
15,870 |
|
Gain (loss) on investment securities, net |
|
135 |
|
|
(8,392 |
) |
|
|
(664 |
) |
|
|
(16,125 |
) |
|
|
5,856 |
|
Lease financing |
|
13,180 |
|
|
13,363 |
|
|
|
13,212 |
|
|
|
39,958 |
|
|
|
39,222 |
|
Other non-interest income |
|
3,693 |
|
|
2,583 |
|
|
|
7,377 |
|
|
|
9,070 |
|
|
|
27,583 |
|
Total non-interest income |
|
23,072 |
|
|
13,450 |
|
|
|
25,478 |
|
|
|
50,823 |
|
|
|
88,531 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||
Employee compensation and benefits |
|
66,097 |
|
|
62,461 |
|
|
|
57,224 |
|
|
|
195,646 |
|
|
|
172,971 |
|
Occupancy and equipment |
|
11,719 |
|
|
11,399 |
|
|
|
11,760 |
|
|
|
34,630 |
|
|
|
35,127 |
|
Deposit insurance expense |
|
4,398 |
|
|
3,993 |
|
|
|
3,552 |
|
|
|
11,794 |
|
|
|
15,224 |
|
Professional fees |
|
3,184 |
|
|
3,256 |
|
|
|
2,312 |
|
|
|
8,702 |
|
|
|
6,363 |
|
Technology |
|
19,813 |
|
|
17,898 |
|
|
|
16,687 |
|
|
|
54,715 |
|
|
|
49,279 |
|
Depreciation of operating lease equipment |
|
12,646 |
|
|
12,585 |
|
|
|
12,944 |
|
|
|
37,841 |
|
|
|
37,995 |
|
Other non-interest expense |
|
20,248 |
|
|
15,810 |
|
|
|
13,563 |
|
|
|
48,503 |
|
|
|
42,756 |
|
Total non-interest expense |
|
138,105 |
|
|
127,402 |
|
|
|
118,042 |
|
|
|
391,831 |
|
|
|
359,715 |
|
Income before income taxes |
|
117,083 |
|
|
87,468 |
|
|
|
114,400 |
|
|
|
293,340 |
|
|
|
385,854 |
|
Provision for income taxes |
|
29,233 |
|
|
21,704 |
|
|
|
27,459 |
|
|
|
72,576 |
|
|
|
96,125 |
|
Net income |
$ |
87,850 |
|
$ |
65,764 |
|
|
$ |
86,941 |
|
|
$ |
220,764 |
|
|
$ |
289,729 |
|
Earnings per common share, basic |
$ |
1.13 |
|
$ |
0.82 |
|
|
$ |
0.94 |
|
|
$ |
2.73 |
|
|
$ |
3.12 |
|
Earnings per common share, diluted |
$ |
1.12 |
|
$ |
0.82 |
|
|
$ |
0.94 |
|
|
$ |
2.71 |
|
|
$ |
3.12 |
|
BANKUNITED, INC. AND SUBSIDIARIES 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 |
$ |
24,053,742 |
|
|
$ |
248,168 |
|
4.11 |
% |
|
$ |
23,709,190 |
|
|
$ |
212,395 |
|
3.59 |
% |
|
$ |
22,879,654 |
|
|
$ |
197,995 |
|
3.45 |
% |
Investment securities (3) |
|
9,981,486 |
|
|
|
77,840 |
|
3.12 |
% |
|
|
10,477,600 |
|
|
|
55,488 |
|
2.12 |
% |
|
|
10,452,255 |
|
|
|
38,939 |
|
1.49 |
% |
Other interest earning assets |
|
596,879 |
|
|
|
4,031 |
|
2.68 |
% |
|
|
718,904 |
|
|
|
2,979 |
|
1.66 |
% |
|
|
750,700 |
|
|
|
1,413 |
|
0.75 |
% |
Total interest earning assets |
|
34,632,107 |
|
|
|
330,039 |
|
3.80 |
% |
|
|
34,905,694 |
|
|
|
270,862 |
|
3.11 |
% |
|
|
34,082,609 |
|
|
|
238,347 |
|
2.79 |
% |
Allowance for credit losses |
|
(133,828 |
) |
|
|
|
|
|
|
(127,864 |
) |
|
|
|
|
|
|
(171,381 |
) |
|
|
|
|
||||||
Non-interest earning assets |
|
1,703,371 |
|
|
|
|
|
|
|
1,669,689 |
|
|
|
|
|
|
|
1,856,608 |
|
|
|
|
|
||||||
Total assets |
$ |
36,201,650 |
|
|
|
|
|
|
$ |
36,447,519 |
|
|
|
|
|
|
$ |
35,767,836 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing demand deposits |
$ |
2,306,906 |
|
|
$ |
4,104 |
|
0.71 |
% |
|
$ |
2,576,257 |
|
|
$ |
1,742 |
|
0.27 |
% |
|
$ |
3,038,038 |
|
|
$ |
1,701 |
|
0.22 |
% |
Savings and money market deposits |
|
13,001,566 |
|
|
|
39,838 |
|
1.22 |
% |
|
|
13,052,566 |
|
|
|
15,213 |
|
0.47 |
% |
|
|
13,554,572 |
|
|
|
10,029 |
|
0.29 |
% |
Time deposits |
|
3,255,869 |
|
|
|
9,264 |
|
1.13 |
% |
|
|
2,812,988 |
|
|
|
3,546 |
|
0.51 |
% |
|
|
2,866,746 |
|
|
|
2,543 |
|
0.35 |
% |
Total interest bearing deposits |
|
18,564,341 |
|
|
|
53,206 |
|
1.14 |
% |
|
|
18,441,811 |
|
|
|
20,501 |
|
0.45 |
% |
|
|
19,459,356 |
|
|
|
14,273 |
|
0.29 |
% |
Federal funds purchased |
|
153,905 |
|
|
|
833 |
|
2.12 |
% |
|
|
115,146 |
|
|
|
155 |
|
0.53 |
% |
|
|
70,054 |
|
|
|
15 |
|
0.08 |
% |
FHLB advances |
|
4,739,457 |
|
|
|
26,890 |
|
2.25 |
% |
|
|
4,373,736 |
|
|
|
11,644 |
|
1.07 |
% |
|
|
2,647,314 |
|
|
|
15,678 |
|
2.35 |
% |
Notes and other borrowings |
|
721,164 |
|
|
|
9,259 |
|
5.14 |
% |
|
|
721,284 |
|
|
|
9,257 |
|
5.13 |
% |
|
|
721,638 |
|
|
|
9,257 |
|
5.13 |
% |
Total interest bearing liabilities |
|
24,178,867 |
|
|
|
90,188 |
|
1.48 |
% |
|
|
23,651,977 |
|
|
|
41,557 |
|
0.70 |
% |
|
|
22,898,362 |
|
|
|
39,223 |
|
0.68 |
% |
Non-interest bearing demand deposits |
|
8,749,794 |
|
|
|
|
|
|
|
9,419,025 |
|
|
|
|
|
|
|
8,912,960 |
|
|
|
|
|
||||||
Other non-interest bearing liabilities |
|
697,440 |
|
|
|
|
|
|
|
654,162 |
|
|
|
|
|
|
|
752,774 |
|
|
|
|
|
||||||
Total liabilities |
|
33,626,101 |
|
|
|
|
|
|
|
33,725,164 |
|
|
|
|
|
|
|
32,564,096 |
|
|
|
|
|
||||||
Stockholders' equity |
|
2,575,549 |
|
|
|
|
|
|
|
2,722,355 |
|
|
|
|
|
|
|
3,203,740 |
|
|
|
|
|
||||||
Total liabilities and stockholders' equity |
$ |
36,201,650 |
|
|
|
|
|
|
$ |
36,447,519 |
|
|
|
|
|
|
$ |
35,767,836 |
|
|
|
|
|
||||||
Net interest income |
|
|
$ |
239,851 |
|
|
|
|
|
$ |
229,305 |
|
|
|
|
|
$ |
199,124 |
|
|
|||||||||
Interest rate spread |
|
|
|
|
2.32 |
% |
|
|
|
|
|
2.41 |
% |
|
|
|
|
|
2.11 |
% |
|||||||||
Net interest margin |
|
|
|
|
2.76 |
% |
|
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.33 |
% |
|||||||||
___________________________
| (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) |
|||||||||||||||||||
|
Nine Months Ended September 30, |
||||||||||||||||||
|
2022 |
|
2021 |
||||||||||||||||
|
Average
|
|
Interest(1) |
|
Yield/
|
|
Average
|
|
Interest(1) |
|
Yield/
|
||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans |
$ |
23,706,606 |
|
|
$ |
655,114 |
|
3.69 |
% |
|
$ |
23,139,389 |
|
|
$ |
612,756 |
|
3.54 |
% |
Investment securities (3) |
|
10,180,351 |
|
|
|
177,047 |
|
2.32 |
% |
|
|
9,792,350 |
|
|
|
116,464 |
|
1.59 |
% |
Other interest earning assets |
|
663,189 |
|
|
|
8,364 |
|
1.69 |
% |
|
|
1,063,476 |
|
|
|
4,613 |
|
0.58 |
% |
Total interest earning assets |
|
34,550,146 |
|
|
|
840,525 |
|
3.25 |
% |
|
|
33,995,215 |
|
|
|
733,833 |
|
2.88 |
% |
Allowance for credit losses |
|
(130,258 |
) |
|
|
|
|
|
|
(213,352 |
) |
|
|
|
|
||||
Non-interest earning assets |
|
1,682,618 |
|
|
|
|
|
|
|
1,771,639 |
|
|
|
|
|
||||
Total assets |
$ |
36,102,506 |
|
|
|
|
|
|
$ |
35,553,502 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest bearing demand deposits |
$ |
2,658,558 |
|
|
|
7,215 |
|
0.36 |
% |
|
$ |
3,017,301 |
|
|
|
7,069 |
|
0.31 |
% |
Savings and money market deposits |
|
13,150,357 |
|
|
|
62,704 |
|
0.64 |
% |
|
|
13,299,066 |
|
|
|
33,463 |
|
0.34 |
% |
Time deposits |
|
3,129,247 |
|
|
|
15,650 |
|
0.67 |
% |
|
|
3,520,674 |
|
|
|
13,433 |
|
0.51 |
% |
Total interest bearing deposits |
|
18,938,162 |
|
|
|
85,569 |
|
0.60 |
% |
|
|
19,837,041 |
|
|
|
53,965 |
|
0.36 |
% |
Federal funds purchased |
|
152,028 |
|
|
|
1,046 |
|
0.92 |
% |
|
|
26,245 |
|
|
|
17 |
|
0.09 |
% |
FHLB advances |
|
3,796,484 |
|
|
|
44,680 |
|
1.57 |
% |
|
|
2,863,093 |
|
|
|
50,158 |
|
2.34 |
% |
Notes and other borrowings |
|
721,283 |
|
|
|
27,772 |
|
5.13 |
% |
|
|
721,897 |
|
|
|
27,762 |
|
5.13 |
% |
Total interest bearing liabilities |
|
23,607,957 |
|
|
|
159,067 |
|
0.90 |
% |
|
|
23,448,276 |
|
|
|
131,902 |
|
0.75 |
% |
Non-interest bearing demand deposits |
|
9,071,135 |
|
|
|
|
|
|
|
8,194,570 |
|
|
|
|
|
||||
Other non-interest bearing liabilities |
|
650,936 |
|
|
|
|
|
|
|
783,618 |
|
|
|
|
|
||||
Total liabilities |
|
33,330,028 |
|
|
|
|
|
|
|
32,426,464 |
|
|
|
|
|
||||
Stockholders' equity |
|
2,772,478 |
|
|
|
|
|
|
|
3,127,038 |
|
|
|
|
|
||||
Total liabilities and stockholders' equity |
$ |
36,102,506 |
|
|
|
|
|
|
$ |
35,553,502 |
|
|
|
|
|
||||
Net interest income |
|
|
$ |
681,458 |
|
|
|
|
|
$ |
601,931 |
|
|
||||||
Interest rate spread |
|
|
|
|
2.35 |
% |
|
|
|
|
|
2.13 |
% |
||||||
Net interest margin |
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.36 |
% |
||||||
___________________________
| (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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
87,850 |
|
|
$ |
86,941 |
|
|
$ |
220,764 |
|
|
$ |
289,729 |
|
Distributed and undistributed earnings allocated to participating securities |
|
(1,343 |
) |
|
|
(1,112 |
) |
|
|
(3,258 |
) |
|
|
(3,701 |
) |
Income allocated to common stockholders for basic earnings per common share |
$ |
86,507 |
|
|
$ |
85,829 |
|
|
$ |
217,506 |
|
|
$ |
286,028 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
77,912,320 |
|
|
|
92,053,714 |
|
|
|
81,039,561 |
|
|
|
92,787,824 |
|
Less average unvested stock awards |
|
(1,221,971 |
) |
|
|
(1,208,304 |
) |
|
|
(1,230,396 |
) |
|
|
(1,218,416 |
) |
Weighted average shares for basic earnings per common share |
|
76,690,349 |
|
|
|
90,845,410 |
|
|
|
79,809,165 |
|
|
|
91,569,408 |
|
Basic earnings per common share |
$ |
1.13 |
|
|
$ |
0.94 |
|
|
$ |
2.73 |
|
|
$ |
3.12 |
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Income allocated to common stockholders for basic earnings per common share |
$ |
86,507 |
|
|
$ |
85,829 |
|
|
$ |
217,506 |
|
|
$ |
286,028 |
|
Adjustment for earnings reallocated from participating securities |
|
6 |
|
|
|
2 |
|
|
|
9 |
|
|
|
5 |
|
Income used in calculating diluted earnings per common share |
$ |
86,513 |
|
|
$ |
85,831 |
|
|
$ |
217,515 |
|
|
$ |
286,033 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic earnings per common share |
|
76,690,349 |
|
|
|
90,845,410 |
|
|
|
79,809,165 |
|
|
|
91,569,408 |
|
Dilutive effect of certain share-based awards |
|
433,472 |
|
|
|
182,448 |
|
|
|
308,608 |
|
|
|
152,675 |
|
Weighted average shares for diluted earnings per common share |
|
77,123,821 |
|
|
|
91,027,858 |
|
|
|
80,117,773 |
|
|
|
91,722,083 |
|
Diluted earnings per common share |
$ |
1.12 |
|
|
$ |
0.94 |
|
|
$ |
2.71 |
|
|
$ |
3.12 |
|
BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Financial ratios (4) |
|
|
|
|
|
|
|
||||
Return on average assets |
0.96 |
% |
|
0.96 |
% |
|
0.82 |
% |
|
1.09 |
% |
Return on average stockholders’ equity |
13.5 |
% |
|
10.8 |
% |
|
10.6 |
% |
|
12.4 |
% |
Net interest margin (3) |
2.76 |
% |
|
2.33 |
% |
|
2.63 |
% |
|
2.36 |
% |
|
September 30, 2022 |
|
December 31, 2021 |
||
Asset quality ratios |
|
|
|
||
Non-performing loans to total loans (1)(5) |
0.64 |
% |
|
0.87 |
% |
Non-performing assets to total assets (2)(5) |
0.43 |
% |
|
0.58 |
% |
Allowance for credit losses to total loans |
0.54 |
% |
|
0.53 |
% |
Allowance for credit losses to non-performing loans (1)(5) |
83.54 |
% |
|
61.41 |
% |
Net charge-offs to average loans (4) |
0.16 |
% |
|
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 nine month periods. |
|
(5) |
Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.8 million or 0.17% of total loans and 0.11% of total assets at September 30, 2022 and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021. |
|
September 30, 2022 |
|
December 31, 2021 |
|
Required to be
|
|||||||||
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
||||||
Capital ratios |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage |
7.7 |
% |
|
8.8 |
% |
|
8.4 |
% |
|
9.6 |
% |
|
5.0 |
% |
Common Equity Tier 1 ("CET1") risk-based capital |
11.3 |
% |
|
12.9 |
% |
|
12.6 |
% |
|
14.5 |
% |
|
6.5 |
% |
Total risk-based capital |
13.0 |
% |
|
13.4 |
% |
|
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):
|
September 30, 2022 |
|
June 30, 2022 |
|
December 31, 2021 |
||||||
Total loans (GAAP) |
$ |
24,266,732 |
|
|
$ |
24,100,014 |
|
|
$ |
23,765,053 |
|
Less: Government insured residential loans |
|
1,849,343 |
|
|
|
1,928,779 |
|
|
|
2,023,221 |
|
Less: PPP loans |
|
10,191 |
|
|
|
29,828 |
|
|
|
248,505 |
|
Less: MWL |
|
622,883 |
|
|
|
816,797 |
|
|
|
1,092,133 |
|
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) |
$ |
21,784,315 |
|
|
$ |
21,324,610 |
|
|
$ |
20,401,194 |
|
|
|
|
|
|
|
||||||
ACL |
$ |
130,671 |
|
|
$ |
130,239 |
|
|
$ |
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) |
|
0.60 |
% |
|
|
0.61 |
% |
|
|
0.62 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221020005143/en/
Contacts
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698, llunak@bankunited.com
