BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced
financial results for the quarter ended September 30, 2023.
"This quarter we made significant progress on key strategic
priorities. Margin, the funding mix, asset mix, capital and
liquidity all improved, while continuing to prepare for a possible
economic slowdown," said Rajinder Singh, Chairman, President and
Chief Executive Officer.
For the quarter ended September 30, 2023, the Company reported
net income of $47.0 million, or $0.63 per diluted share, compared
to $58.0 million, or $0.78 per diluted share for the immediately
preceding quarter ended June 30, 2023 and $87.9 million, or $1.12
per diluted share, for the quarter ended September 30, 2022.
Earnings for the quarter ended September 30, 2023 were impacted by
an increase in the provision for credit losses, the most
significant driver of which was the impact of a less favorable
economic forecast, while annualized net charge-offs remained low at
0.07%. For the nine months ended September 30, 2023, the Company
reported net income of $157.9 million or $2.11 per diluted share
compared to $220.8 million or $2.71 per diluted share for the nine
months ended September 30, 2022.
Quarterly Highlights
- We gained momentum executing on near-term strategic priorities
this quarter:
- The net interest margin, calculated on a tax-equivalent basis,
expanded this quarter to 2.56% from 2.47% for the immediately
preceding quarter.
- Non-brokered deposits grew by $484 million for the quarter
ended September 30, 2023. Total deposits grew by $274 million.
- Non-interest bearing deposits grew by $52 million for the
quarter, remaining consistent at 28% of total deposits at both
September 30, 2023 and June 30, 2023.
- Residential loans declined by $225 million and securities
declined by $257 million for the quarter, while our core C&I
and commercial real estate portfolios grew by a net $147
million.
- FHLB advances declined by $810 million for the quarter, as
consistent with our strategy to re-position the balance sheet, cash
flows from the residential and securities portfolios were used to
pay down wholesale funding.
- The loans to deposits ratio declined to 93.3% at September 30,
2023, from 95.3% at June 30, 2023.
- We have maintained ample liquidity. Total same day available
liquidity was $14.4 billion, the available liquidity to uninsured,
uncollateralized deposits ratio was 161% and an estimated 66% of
our deposits were insured or collateralized at September 30,
2023.
- Our capital position remains robust. At September 30, 2023,
CET1 increased to 11.4% at the holding company and 13.2% at the
Bank. Pro-forma CET1 at the holding company and the Bank, including
accumulated other comprehensive income, were 9.8% and 11.5%,
respectively at September 30, 2023.
- For the quarter ended September 30, 2023, the provision for
credit losses was $33.0 million. The ratio of the ACL to total
loans increased to 0.80%, at September 30, 2023 from 0.68% at June
30, 2023. The largest driver of the provision for credit losses and
increase in the ACL for the quarter was a less favorable economic
forecast.
- The annualized net charge-off ratio for the nine months ended
September 30, 2023 was 0.07%. NPAs remained low, totaling $140.5
million at September 30, 2023 compared to $120.8 million at June
30, 2023. Most of the increase was in the franchise finance
portfolio. The NPA ratio at September 30, 2023 was 0.40%, including
0.11% related to the guaranteed portion of non-performing SBA
loans. At June 30, 2023 the NPA ratio was 0.34%, including 0.10%
related to the guaranteed portion of non-performing SBA loans.
- Total loans declined by $274 million quarter-over-quarter. As
expected, most of the decline was attributable to residential which
was down by $225 million.
- Consistent with industry trends, rising interest rates and
restrictive monetary policy contributed to an increase in the
average cost of total deposits to 2.74% for the quarter ended
September 30, 2023 from 2.46% for the immediately preceding
quarter. This increase of 0.28% was smaller than the 0.41% increase
in the cost of deposits for the quarter ended June 30, 2023,
continuing the trend of a declining rate of increase in deposit
costs. The yield on average interest earning assets increased to
5.52% for the quarter ended September 30, 2023 from 5.30% for the
immediately preceding quarter.
- Commercial real estate exposure is modest. Commercial real
estate loans totaled 23.5% of loans at September 30, 2023,
representing 168% of the Bank's total risk based capital. At
September 30, 2023, the weighted average LTV of the CRE portfolio
was 55.8% and the weighted average DSCR was 1.80. 58% of the
portfolio was secured by collateral properties located in Florida
and 25% was secured by properties in the New York tri-state
area.
- We remain committed to keeping the duration of our securities
portfolio short; the duration of the available for sale securities
portfolio was 2.02 at September 30, 2023. Held to maturity
securities were not significant.
- Book value and tangible book value per common share were $33.92
and $32.88, respectively, at September 30, 2023, compared to $33.94
and $32.90, respectively at June 30, 2023.
- In October 2023, BankUnited was named #1 on the list of the
healthiest 100 workplaces in America published by Healthiest
Employers/Springbuk, highlighting our commitment to employee
wellness initiatives and programs.
Deposits and Funding
Total deposits grew by $274 million during the quarter ended
September 30, 2023. Non-interest bearing demand deposits grew by
$52 million, interest-bearing non-maturity deposits grew by $552
million and time deposits declined by $330 million.
Consistent with the current interest rate environment and
restrictive monetary policy, the cost of total deposits increased
to 2.74% from 2.46% for the immediately preceding quarter, while
the cost of interest bearing deposits increased to 3.76% for the
quarter ended September 30, 2023 from 3.39% for the preceding
quarter.
FHLB advances declined by $810 million for the quarter, as we
used cash flows from the residential and securities portfolios to
reduce wholesale funding levels and allow for future re-deployment
of capital into higher yielding assets.
Loans
A comparison of loan portfolio composition at the dates
indicated follows (dollars in thousands):
September 30, 2023
June 30, 2023
December 31, 2022
Residential
$
8,380,568
34.4
%
$
8,605,838
34.9
%
$
8,900,714
35.7
%
Non-owner occupied commercial real
estate
5,296,784
21.7
%
5,302,523
21.5
%
5,405,597
21.7
%
Construction and land
445,273
1.8
%
393,464
1.6
%
294,360
1.2
%
Owner occupied commercial real estate
1,851,246
7.6
%
1,832,586
7.4
%
1,890,813
7.6
%
Commercial and industrial
6,658,010
27.4
%
6,575,368
26.8
%
6,417,721
25.9
%
Pinnacle - municipal finance
900,199
3.7
%
951,529
3.9
%
912,122
3.7
%
Franchise finance
196,745
0.8
%
207,783
0.8
%
253,774
1.0
%
Equipment finance
219,874
0.9
%
237,816
1.0
%
286,147
1.1
%
Mortgage warehouse lending ("MWL")
407,577
1.7
%
523,083
2.1
%
524,740
2.1
%
$
24,356,276
100.0
%
$
24,629,990
100.0
%
$
24,885,988
100.0
%
Consistent with our balance sheet strategy, for the quarter
ended September 30, 2023, residential loans declined by $225
million while C&I grew by $101 million and CRE grew by $46
million. Franchise and equipment finance declined by $29 million in
aggregate, MWL declined by $116 million, primarily due to low
levels of activity in the residential real estate sector, and
municipal finance declined by $51 million. As we continue to
emphasize high quality relationship based lending, we chose to exit
approximately $297 million of commercial loans during the quarter
due to lower profitability, the lack of deposit relationships or,
in some cases, to take advantage of opportunities to reduce
criticized and classified assets.
Asset Quality and the Allowance for
Credit Losses ("ACL")
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, 2023, June 30, 2023 and December 31,
2022 (dollars in thousands):
ACL
ACL to Total Loans
ACL to Non-Performing
Loans
Net Charge-offs to Average
Loans (1)
December 31, 2022
$
147,946
0.59
%
140.88
%
0.22
%
June 30, 2023
$
166,833
0.68
%
140.52
%
0.09
%
September 30, 2023
$
196,063
0.80
%
143.22
%
0.07
%
______________________
(1)
Annualized for the six months ended June 30, 2023 and the nine
months ended September 30, 2023.
The ACL at September 30, 2023 represents management's estimate
of lifetime expected credit losses given an 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, 2023, the provision for credit losses
was $33.0 million, including $30.9 million related to funded loans.
The most significant factor impacting the provision for credit
losses and increase in the ACL for the quarter ended September 30,
2023 was the impact on quantitative modeling of a less favorable
economic forecast. Changes in portfolio composition as well as risk
rating migration and increases in certain specific reserves also
had an impact.
The following table summarizes the activity in the ACL for the
periods indicated (in thousands):
Three Months Ended
Nine Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Beginning balance
$
166,833
$
158,792
$
130,239
$
147,946
$
126,457
Impact of adoption of new accounting
pronouncement (ASU 2022-02)
N/A
N/A
N/A
(1,794
)
N/A
Balance after impact of adoption of new
accounting pronouncement (ASU 2022-02)
166,833
158,792
130,239
146,152
126,457
Provision
30,877
14,195
2,753
62,667
33,406
Net charge-offs
(1,647
)
(6,154
)
(2,321
)
(12,756
)
(29,192
)
Ending balance
$
196,063
$
166,833
$
130,671
$
196,063
$
130,671
Non-performing loans totaled $136.9 million or 0.56% of total
loans at September 30, 2023, compared to $118.7 million or 0.48% of
total loans at June 30, 2023. Non-performing loans included $37.8
million and $35.9 million of the guaranteed portion of SBA loans on
non-accrual status, representing 0.16% and 0.15% of total loans at
September 30, 2023 and June 30, 2023, respectively.
The following table presents criticized and classified
commercial loans at the dates indicated (in thousands):
September 30, 2023
June 30, 2023
December 31, 2022
Special mention
$
341,999
$
233,004
$
51,433
Substandard - accruing
534,336
525,643
605,965
Substandard - non-accruing
96,248
80,642
75,125
Doubtful
19,344
14,954
7,990
Total
$
991,927
$
854,243
$
740,513
Net Interest Income
Net interest income for the quarter ended September 30, 2023 was
$214.8 million, compared to $213.9 million for the immediately
preceding quarter ended June 30, 2023 and $235.8 million for the
quarter ended September 30, 2022. Interest income increased by $7.1
million for the quarter ended September 30, 2023 compared to the
immediately preceding quarter while interest expense increased by
$6.2 million.
The Company’s net interest margin, calculated on a
tax-equivalent basis, increased by 0.09% to 2.56% for the quarter
ended September 30, 2023, from 2.47% for the immediately preceding
quarter ended June 30, 2023. Factors impacting the net interest
margin for the quarter ended September 30, 2023 were:
- The tax-equivalent yield on loans increased to 5.54% for the
quarter ended September 30, 2023, from 5.35% for the quarter ended
June 30, 2023. The resetting of variable rate loans to higher
coupon rates, paydown of lower rate residential loans and
origination of new loans at higher rates contributed to the
increase.
- The tax-equivalent yield on investment securities increased to
5.48% for the quarter ended September 30, 2023, from 5.19% for the
quarter ended June 30, 2023. This increase resulted primarily from
the reset of coupon rates on variable rate securities.
- The average cost of interest bearing deposits increased to
3.76% for the quarter ended September 30, 2023 from 3.39% for the
quarter ended June 30, 2023, in response to the interest rate
environment.
- The average rate paid on FHLB advances decreased to 4.57% for
the quarter ended September 30, 2023, from 4.59% for the quarter
ended June 30, 2023, primarily due to repayment of higher rate
advances.
- The reduction in the proportion of total funding comprised of
more expensive wholesale funding also contributed to the increase
in the net interest margin.
Earnings Conference Call and
Presentation
A conference call to discuss quarterly results will be held at
9:00 a.m. ET on Thursday, October 19, 2023 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/BI8dd0dafa7e284086a3d06fd4752fdebf.
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 $35.4 billion at
September 30, 2023, is the bank holding company of BankUnited,
N.A., a national bank headquartered in Miami Lakes, Florida that
provides a full range of banking and related services to individual
and corporate customers through banking centers located in the
state of Florida, the New York metropolitan area and Dallas, Texas,
and a comprehensive suite of wholesale products to customers
through an Atlanta office focused on the Southeast region.
BankUnited also offers certain commercial lending and deposit
products through national platforms. For additional information,
call (877) 779-2265 or visit www.BankUnited.com.
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 limitation) 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 but not limited to adverse events or conditions
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 December 31, 2022 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,
2023
June 30, 2023
December 31,
2022
ASSETS
Cash and due from banks:
Non-interest bearing
$
12,391
$
18,355
$
16,068
Interest bearing
379,494
282,814
556,579
Cash and cash equivalents
391,885
301,169
572,647
Investment securities (including
securities reported at fair value of $8,876,484, $9,133,937 and
$9,745,327)
8,886,484
9,143,937
9,755,327
Non-marketable equity securities
312,159
317,759
294,172
Loans
24,356,276
24,629,990
24,885,988
Allowance for credit losses
(196,063
)
(166,833
)
(147,946
)
Loans, net
24,160,213
24,463,157
24,738,042
Bank owned life insurance
319,808
318,935
308,212
Operating lease equipment, net
460,146
514,734
539,799
Goodwill
77,637
77,637
77,637
Other assets
781,332
734,151
740,876
Total assets
$
35,389,664
$
35,871,479
$
37,026,712
LIABILITIES AND STOCKHOLDERS’
EQUITY
Liabilities:
Demand deposits:
Non-interest bearing
$
7,356,523
$
7,304,735
$
8,037,848
Interest bearing
3,290,391
2,929,870
2,142,067
Savings and money market
10,276,071
10,084,276
13,061,341
Time
5,189,681
5,519,771
4,268,078
Total deposits
26,112,666
25,838,652
27,509,334
Federal funds purchased
—
—
190,000
FHLB advances
5,165,000
5,975,000
5,420,000
Notes and other borrowings
715,197
715,302
720,923
Other liabilities
872,731
816,215
750,474
Total liabilities
32,865,594
33,345,169
34,590,731
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share,
400,000,000 shares authorized; 74,413,059, 74,429,948 and
75,674,587 shares issued and outstanding
744
744
757
Paid-in capital
279,672
274,202
321,729
Retained earnings
2,650,850
2,623,926
2,551,400
Accumulated other comprehensive loss
(407,196
)
(372,562
)
(437,905
)
Total stockholders' equity
2,524,070
2,526,310
2,435,981
Total liabilities and stockholders'
equity
$
35,389,664
$
35,871,479
$
37,026,712
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,
2023
2023
2022
2023
2022
Interest income:
Loans
$
337,014
$
326,153
$
244,884
$
971,962
$
645,669
Investment securities
122,857
120,604
77,109
362,219
174,928
Other
10,668
16,664
4,031
40,195
8,364
Total interest income
470,539
463,421
326,024
1,374,376
828,961
Interest expense:
Deposits
176,974
156,868
53,206
467,472
85,569
Borrowings
78,723
92,675
36,982
250,310
73,498
Total interest expense
255,697
249,543
90,188
717,782
159,067
Net interest income before provision for
credit losses
214,842
213,878
235,836
656,594
669,894
Provision for credit losses
33,049
15,517
3,720
68,354
35,546
Net interest income after provision for
credit losses
181,793
198,361
232,116
588,240
634,348
Non-interest income:
Deposit service charges and fees
5,402
5,349
6,064
16,296
17,920
Gain (loss) on investment securities,
net
887
993
135
(10,669
)
(16,125
)
Lease financing
16,531
12,519
13,180
42,159
39,958
Other non-interest income
4,904
6,626
3,693
21,960
9,070
Total non-interest income
27,724
25,487
23,072
69,746
50,823
Non-interest expense:
Employee compensation and benefits
68,825
67,414
66,097
207,290
195,646
Occupancy and equipment
10,890
11,043
11,719
32,735
34,630
Deposit insurance expense
7,790
7,597
4,398
23,294
11,794
Professional fees
2,696
3,518
3,184
9,132
8,702
Technology
19,193
20,437
19,813
61,356
54,715
Depreciation of operating lease
equipment
11,217
11,232
12,646
33,970
37,841
Other non-interest expense
26,479
23,977
20,248
77,311
48,503
Total non-interest expense
147,090
145,218
138,105
445,088
391,831
Income before income taxes
62,427
78,630
117,083
212,898
293,340
Provision for income taxes
15,446
20,634
29,233
55,039
72,576
Net income
$
46,981
$
57,996
$
87,850
$
157,859
$
220,764
Earnings per common share, basic
$
0.63
$
0.78
$
1.13
$
2.12
$
2.73
Earnings per common share, diluted
$
0.63
$
0.78
$
1.12
$
2.11
$
2.71
BANKUNITED, INC. AND
SUBSIDIARIES
AVERAGE BALANCES AND
YIELDS
(Dollars in thousands)
Three Months Ended September
30,
Three Months Ended June
30,
Three Months Ended September
30,
2023
2023
2022
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans
$
24,417,433
$
340,357
5.54
%
$
24,680,919
$
329,494
5.35
%
$
24,053,742
$
248,168
4.11
%
Investment securities (3)
9,034,116
123,794
5.48
%
9,369,019
121,520
5.19
%
9,981,486
77,840
3.12
%
Other interest earning assets
785,146
10,668
5.39
%
1,323,025
16,664
5.05
%
596,879
4,031
2.68
%
Total interest earning assets
34,236,695
474,819
5.52
%
35,372,963
467,678
5.30
%
34,632,107
330,039
3.80
%
Allowance for credit losses
(173,407
)
(162,463
)
(133,828
)
Non-interest earning assets
1,747,310
1,744,693
1,703,371
Total assets
$
35,810,598
$
36,955,193
$
36,201,650
Liabilities and Stockholders'
Equity:
Interest bearing liabilities:
Interest bearing demand deposits
$
3,038,870
$
25,491
3.33
%
$
2,772,839
$
18,417
2.66
%
$
2,306,906
$
4,104
0.71
%
Savings and money market deposits
10,205,765
97,956
3.81
%
10,285,494
88,892
3.47
%
13,001,566
39,838
1.22
%
Time deposits
5,420,522
53,527
3.92
%
5,494,631
49,559
3.62
%
3,255,869
9,264
1.13
%
Total interest bearing deposits
18,665,157
176,974
3.76
%
18,552,964
156,868
3.39
%
18,564,341
53,206
1.14
%
Federal funds purchased
—
—
—
%
—
—
—
%
153,905
833
2.12
%
FHLB advances
6,040,870
69,525
4.57
%
7,288,187
83,429
4.59
%
4,739,457
26,890
2.25
%
Notes and other borrowings
715,307
9,198
5.14
%
719,368
9,246
5.14
%
721,164
9,259
5.14
%
Total interest bearing liabilities
25,421,334
255,697
3.99
%
26,560,519
249,543
3.77
%
24,178,867
90,188
1.48
%
Non-interest bearing demand deposits
6,937,537
7,067,053
8,749,794
Other non-interest bearing liabilities
868,178
798,279
697,440
Total liabilities
33,227,049
34,425,851
33,626,101
Stockholders' equity
2,583,549
2,529,342
2,575,549
Total liabilities and stockholders'
equity
$
35,810,598
$
36,955,193
$
36,201,650
Net interest income
$
219,122
$
218,135
$
239,851
Interest rate spread
1.53
%
1.53
%
2.32
%
Net interest margin
2.56
%
2.47
%
2.76
%
______________________
(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,
2023
2022
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans
$
24,606,425
$
981,976
5.33
%
$
23,706,606
$
655,114
3.69
%
Investment securities (3)
9,356,211
364,980
5.20
%
10,180,351
177,047
2.32
%
Other interest earning assets
1,048,313
40,195
5.13
%
663,189
8,364
1.69
%
Total interest earning assets
35,010,949
1,387,151
5.29
%
34,550,146
840,525
3.25
%
Allowance for credit losses
(162,395
)
(130,258
)
Non-interest earning assets
1,761,500
1,682,618
Total assets
$
36,610,054
$
36,102,506
Liabilities and Stockholders'
Equity:
Interest bearing liabilities:
Interest bearing demand deposits
$
2,728,287
$
54,781
2.68
%
$
2,658,558
$
7,215
0.36
%
Savings and money market deposits
10,844,838
278,243
3.43
%
13,150,357
62,704
0.64
%
Time deposits
5,150,486
134,448
3.49
%
3,129,247
15,650
0.67
%
Total interest bearing deposits
18,723,611
467,472
3.34
%
18,938,162
85,569
0.60
%
Federal funds purchased
47,334
1,611
4.54
%
152,028
1,046
0.92
%
FHLB advances
6,596,465
220,993
4.48
%
3,796,484
44,680
1.57
%
Notes and other borrowings
718,507
27,706
5.14
%
721,283
27,772
5.13
%
Total interest bearing liabilities
26,085,917
717,782
3.68
%
23,607,957
159,067
0.90
%
Non-interest bearing demand deposits
7,152,362
9,071,135
Other non-interest bearing liabilities
829,464
650,936
Total liabilities
34,067,743
33,330,028
Stockholders' equity
2,542,311
2,772,478
Total liabilities and stockholders'
equity
$
36,610,054
$
36,102,506
Net interest income
$
669,369
$
681,458
Interest rate spread
1.61
%
2.35
%
Net interest margin
2.55
%
2.63
%
______________________
(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,
2023
2022
2023
2022
Basic earnings per common
share:
Numerator:
Net income
$
46,981
$
87,850
$
157,859
$
220,764
Distributed and undistributed earnings
allocated to participating securities
(700
)
(1,343
)
(2,378
)
(3,258
)
Income allocated to common stockholders
for basic earnings per common share
$
46,281
$
86,507
$
155,481
$
217,506
Denominator:
Weighted average common shares
outstanding
74,416,698
77,912,320
74,530,871
81,039,561
Less average unvested stock awards
(1,165,105
)
(1,221,971
)
(1,180,570
)
(1,230,396
)
Weighted average shares for basic earnings
per common share
73,251,593
76,690,349
73,350,301
79,809,165
Basic earnings per common share
$
0.63
$
1.13
$
2.12
$
2.73
Diluted earnings per common
share:
Numerator:
Income allocated to common stockholders
for basic earnings per common share
$
46,281
$
86,507
$
155,481
$
217,506
Adjustment for earnings reallocated from
participating securities
3
6
8
9
Income used in calculating diluted
earnings per common share
$
46,284
$
86,513
$
155,489
$
217,515
Denominator:
Weighted average shares for basic earnings
per common share
73,251,593
76,690,349
73,350,301
79,809,165
Dilutive effect of certain share-based
awards
537,230
433,472
388,372
308,608
Weighted average shares for diluted
earnings per common share
73,788,823
77,123,821
73,738,673
80,117,773
Diluted earnings per common
share
$
0.63
$
1.12
$
2.11
$
2.71
BANKUNITED, INC. AND
SUBSIDIARIES
SELECTED RATIOS
At or for the Three Months
Ended
Nine Months Ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Financial ratios (4)
Return on average assets
0.52
%
0.63
%
0.96
%
0.58
%
0.82
%
Return on average stockholders’ equity
7.2
%
9.2
%
13.5
%
8.3
%
10.6
%
Net interest margin (3)
2.56
%
2.47
%
2.76
%
2.55
%
2.63
%
Loans to deposits
93.3
%
95.3
%
88.7
%
Tangible book value per common share
$
32.88
$
32.90
$
30.97
September 30, 2023
June 30, 2023
December 31, 2022
Asset quality ratios
Non-performing loans to total loans
(1)(5)
0.56
%
0.48
%
0.42
%
Non-performing assets to total assets
(2)(5)
0.40
%
0.34
%
0.29
%
Allowance for credit losses to total
loans
0.80
%
0.68
%
0.59
%
Allowance for credit losses to
non-performing loans (1)(5)
143.22
%
140.52
%
140.88
%
Net charge-offs to average loans (4)
0.07
%
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 as applicable
(5)
Non-performing loans and assets include
the guaranteed portion of non-accrual SBA loans totaling $37.8
million or 0.16% of total loans and 0.11% of total assets at
September 30, 2023, $35.9 million or 0.15% of total loans and 0.10%
of total assets at June 30, 2023 and $40.3 million or 0.16% of
total loans and 0.11% of total assets at December 31, 2022.
September 30, 2023
June 30, 2023
December 31, 2022
Required to be Considered Well
Capitalized
BankUnited, Inc.
BankUnited, N.A.
BankUnited, Inc.
BankUnited, N.A.
BankUnited, Inc.
BankUnited, N.A.
Capital ratios
Tier 1 leverage
7.9
%
9.1
%
7.6
%
8.8
%
7.5
%
8.4
%
5.0
%
Common Equity Tier 1 ("CET1") risk-based
capital
11.4
%
13.2
%
11.2
%
13.0
%
11.0
%
12.4
%
6.5
%
Total risk-based capital
13.4
%
13.9
%
13.0
%
13.6
%
12.7
%
12.9
%
10.0
%
Tangible Common Equity/Tangible Assets
6.9
%
N/A
6.8
%
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):
September 30, 2023
June 30, 2023
September 30, 2022
Total stockholders’ equity
$
2,524,070
$
2,526,310
$
2,480,985
Less: goodwill and other intangible
assets
77,637
77,637
77,637
Tangible stockholders’ equity
$
2,446,433
$
2,448,673
$
2,403,348
Common shares issued and outstanding
74,413,059
74,429,948
77,599,408
Book value per common share
$
33.92
$
33.94
$
31.97
Tangible book value per common share
$
32.88
$
32.90
$
30.97
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231019554350/en/
BankUnited, Inc. Investor Relations: Leslie N. Lunak,
786-313-1698 llunak@bankunited.com
BankUnited (NYSE:BKU)
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