BankUnited, Inc. Reports 2023 Results
- None.
- None.
Insights
The reported financial results by BankUnited, Inc. indicate a mixed performance, with a decline in net income for both the quarter and year ended December 31, 2023. This decline is notable against the backdrop of a strong economy in their primary market. The reduction in net income can be attributed to specific notable items, including the FDIC special assessment and a loss on the sale of operating lease equipment, which cumulatively impacted income before taxes by $41.8 million.
The expansion of the net interest margin to 2.60% from 2.56% in the previous quarter suggests a potentially positive trajectory for net interest income, despite the increased costs of deposits in a rising interest rate environment. However, the decline in non-interest bearing deposits could be a concern, as it indicates a potential shift in deposit mix that may affect future interest expense.
The shift in BankUnited's balance sheet composition, with a decrease in residential loans and an increase in commercial and industrial (C&I) and commercial real estate (CRE) loans, reflects a strategic realignment. This realignment is likely a response to market conditions and the bank's assessment of growth opportunities. The growth in C&I and CRE portfolios, which typically carry higher reserves and risk, could indicate a calculated move to capture higher yields but may also suggest an increased risk profile that should be monitored.
The bank's capital position remains robust, with CET1 at 11.4%, which is a strong indicator of financial health and regulatory compliance. The improvement in the net unrealized pre-tax loss on the securities portfolio and AOCI (Accumulated Other Comprehensive Income) could signal a recovery in the value of the bank's investment assets, potentially contributing positively to future earnings.
The reported increase in the average cost of total deposits, which is smaller than the previous quarter's increase, suggests a decelerating trend in deposit cost inflation. In the context of the Federal Reserve's interest rate hikes, this could indicate that the bank is successfully managing its deposit mix and pricing strategies to mitigate the impact of a higher rate environment. The bank's ample liquidity, with a liquidity to uninsured, uncollateralized deposits ratio of 152%, positions it well to weather potential market volatility.
However, the decline in residential loans and the reduction of the investment securities portfolio could be reflective of broader economic trends, such as a cooling housing market or a strategic shift away from lower-yielding assets. Stakeholders should consider the implications of these trends on the bank's future revenue streams and risk exposure.
"We finished the year with continued improvement on both sides of our balance sheet, expanding margin and strong credit performance. We are benefiting from a strong economy in our primary market and are looking forward to 2024 with great optimism," said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended December 31, 2023, the Company reported net income of
Quarterly Highlights
-
Two notable items totaling
$41.8 million
FDIC special assessment |
$ |
35,356 |
|
Loss on sale of operating lease equipment |
|
6,479 |
|
|
$ |
41,835 |
The loss on sale of operating lease equipment of
-
We continued to execute on near-term strategic priorities this quarter:
-
The net interest margin, calculated on a tax-equivalent basis, expanded this quarter to
2.60% from2.56% for the immediately preceding quarter. -
Non-brokered deposits grew by
$604 million $426 million -
Non-interest bearing deposits declined by
$521 million 26% of total deposits at December 31, 2023, from28% at September 30, 2023. On an average basis, non-interest bearing deposits were relatively flat to the prior quarter, declining by only$28.5 million -
Residential loans declined by
$172 million $476 million $692 million -
The amortized cost of the investment securities portfolio declined by
$106 million $959 million -
Wholesale funding, including FHLB advances and brokered deposits, declined by
$228 million $2.4 billion -
Liquidity remains ample. Total same day available liquidity was
$13.6 billion 152% and an estimated66% of our deposits were insured or collateralized at December 31, 2023. -
Our capital position is robust. At December 31, 2023, CET1 was
11.4% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was10.0% at December 31, 2023. The ratio of tangible common equity/tangible assets increased to7.0% at December 31, 2023.
-
The net interest margin, calculated on a tax-equivalent basis, expanded this quarter to
-
For the quarter ended December 31, 2023, the provision for credit losses was
$19.3 million $33.0 million 0.82% at December 31, 2023, from0.80% at September 30, 2023. -
The net charge-off ratio for the year ended December 31, 2023 was
0.09% . NPAs remained low, totaling$130.6 million $140.5 million 0.37% , including0.12% related to the guaranteed portion of non-performing SBA loans, from0.40% , including0.11% related to the guaranteed portion of non-performing SBA loans at September 30, 2023. -
As expected in the current macro-environment, the average cost of total deposits increased to
2.96% for the quarter ended December 31, 2023 from2.74% for the immediately preceding quarter. This increase of0.22% was smaller than the0.28% increase in the cost of deposits for the quarter ended September 30, 2023, continuing the trend of a declining rate of increase in deposit costs. The yield on average interest earning assets increased to5.70% for the quarter ended December 31, 2023 from5.52% for the immediately preceding quarter. -
Our commercial real estate exposure is modest. Commercial real estate loans totaled
23.6% of loans at December 31, 2023, representing169% of the Bank's total risk based capital. At December 31, 2023, the weighted average LTV of the CRE portfolio was56.0% and the weighted average DSCR was 1.80.58% of the portfolio was secured by collateral properties located inFlorida and25% was secured by properties in theNew 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 1.96 at December 31, 2023. Held to maturity securities were not significant.
-
The net unrealized pre-tax loss on the securities portfolio improved by
$109 million 6% of amortized cost. AOCI improved by$50 million -
Book value and tangible book value per common share continued to grow, to
$34.66 $33.62 $33.92 $32.88 $32.19 $31.16
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
||||||||||||
Residential |
$ |
8,209,027 |
|
33.3 |
% |
|
$ |
8,380,568 |
|
34.4 |
% |
|
$ |
8,900,714 |
|
35.7 |
% |
Non-owner occupied commercial real estate |
|
5,323,241 |
|
21.6 |
% |
|
|
5,296,784 |
|
21.7 |
% |
|
|
5,405,597 |
|
21.7 |
% |
Construction and land |
|
495,992 |
|
2.0 |
% |
|
|
445,273 |
|
1.8 |
% |
|
|
294,360 |
|
1.2 |
% |
Owner occupied commercial real estate |
|
1,935,743 |
|
7.9 |
% |
|
|
1,851,246 |
|
7.6 |
% |
|
|
1,890,813 |
|
7.6 |
% |
Commercial and industrial |
|
6,971,981 |
|
28.3 |
% |
|
|
6,658,010 |
|
27.4 |
% |
|
|
6,417,721 |
|
25.9 |
% |
Pinnacle - municipal finance |
|
884,690 |
|
3.6 |
% |
|
|
900,199 |
|
3.7 |
% |
|
|
912,122 |
|
3.7 |
% |
Franchise finance |
|
182,408 |
|
0.7 |
% |
|
|
196,745 |
|
0.8 |
% |
|
|
253,774 |
|
1.0 |
% |
Equipment finance |
|
197,939 |
|
0.8 |
% |
|
|
219,874 |
|
0.9 |
% |
|
|
286,147 |
|
1.1 |
% |
Mortgage warehouse lending ("MWL") |
|
432,663 |
|
1.8 |
% |
|
|
407,577 |
|
1.7 |
% |
|
|
524,740 |
|
2.1 |
% |
|
$ |
24,633,684 |
|
100.0 |
% |
|
$ |
24,356,276 |
|
100.0 |
% |
|
$ |
24,885,988 |
|
100.0 |
% |
Consistent with our balance sheet strategy, for the quarter ended December 31, 2023, residential loans declined by
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 December 31, 2023, September 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 |
% |
September 30, 2023 |
$ |
196,063 |
|
0.80 |
% |
|
143.22 |
% |
|
0.07 |
% |
December 31, 2023 |
$ |
202,689 |
|
0.82 |
% |
|
159.54 |
% |
|
0.09 |
% |
____________
(1) Annualized for the nine months ended September 30, 2023.
The ACL at December 31, 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 December 31, 2023, the provision for credit losses was
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Beginning balance |
$ |
196,063 |
|
|
$ |
130,671 |
|
|
$ |
147,946 |
|
|
$ |
126,457 |
|
Impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
N/A |
|
|
|
N/A |
|
|
|
(1,794 |
) |
|
|
N/A |
|
Balance after impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
196,063 |
|
|
|
130,671 |
|
|
|
146,152 |
|
|
|
126,457 |
|
Provision |
|
16,257 |
|
|
|
40,408 |
|
|
|
78,924 |
|
|
|
73,814 |
|
Net charge-offs |
|
(9,631 |
) |
|
|
(23,133 |
) |
|
|
(22,387 |
) |
|
|
(52,325 |
) |
Ending balance |
$ |
202,689 |
|
|
$ |
147,946 |
|
|
$ |
202,689 |
|
|
$ |
147,946 |
|
Non-performing loans totaled
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||
Special mention |
$ |
319,905 |
|
$ |
341,999 |
|
$ |
51,433 |
Substandard - accruing |
|
711,266 |
|
|
534,336 |
|
|
605,965 |
Substandard - non-accruing |
|
86,903 |
|
|
96,248 |
|
|
75,125 |
Doubtful |
|
19,035 |
|
|
19,344 |
|
|
7,990 |
Total |
$ |
1,137,109 |
|
$ |
991,927 |
|
$ |
740,513 |
The increase in the substandard accruing category for the quarter ended December 31, 2023 included
Net Interest Income
Net interest income for the quarter ended December 31, 2023 was
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by
-
The tax-equivalent yield on loans increased to
5.69% for the quarter ended December 31, 2023, from5.54% for the quarter ended September 30, 2023. This increase reflects the origination of new loans at higher rates, re-positioning of the portfolio and to a lesser extent, the resetting of variable rate loans to higher coupon rates. -
The tax-equivalent yield on investment securities increased to
5.73% for the quarter ended December 31, 2023, from5.48% for the quarter ended September 30, 2023. Factors leading to this increase included the reset of coupon rates on variable rate securities and retrospective accounting adjustments related to prepayment speeds on certain securities. -
The average cost of interest bearing deposits increased to
4.04% for the quarter ended December 31, 2023 from3.76% for the quarter ended September 30, 2023, a continuing response to the higher interest rate environment. - The reduction in the proportion of total funding comprised of more expensive wholesale funding also contributed to the increase in the net interest margin.
Non-interest income and Non-interest expense
Non-interest income totaled
Non-interest expense totaled
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Friday, January 26, 2024 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/BI50a5352f746b4dc890465ca3d32e6db9. 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
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) |
|||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
||||||
ASSETS |
|
|
|
|
|
||||||
Cash and due from banks: |
|
|
|
|
|
||||||
Non-interest bearing |
$ |
14,945 |
|
|
$ |
12,391 |
|
|
$ |
16,068 |
|
Interest bearing |
|
573,338 |
|
|
|
379,494 |
|
|
|
556,579 |
|
Cash and cash equivalents |
|
588,283 |
|
|
|
391,885 |
|
|
|
572,647 |
|
Investment securities (including securities reported at fair value of |
|
8,877,354 |
|
|
|
8,886,484 |
|
|
|
9,755,327 |
|
Non-marketable equity securities |
|
310,084 |
|
|
|
312,159 |
|
|
|
294,172 |
|
Loans |
|
24,633,684 |
|
|
|
24,356,276 |
|
|
|
24,885,988 |
|
Allowance for credit losses |
|
(202,689 |
) |
|
|
(196,063 |
) |
|
|
(147,946 |
) |
Loans, net |
|
24,430,995 |
|
|
|
24,160,213 |
|
|
|
24,738,042 |
|
Bank owned life insurance |
|
318,459 |
|
|
|
319,808 |
|
|
|
308,212 |
|
Operating lease equipment, net |
|
371,909 |
|
|
|
460,146 |
|
|
|
539,799 |
|
Goodwill |
|
77,637 |
|
|
|
77,637 |
|
|
|
77,637 |
|
Other assets |
|
786,886 |
|
|
|
781,332 |
|
|
|
740,876 |
|
Total assets |
$ |
35,761,607 |
|
|
$ |
35,389,664 |
|
|
$ |
37,026,712 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
||||||
Demand deposits: |
|
|
|
|
|
||||||
Non-interest bearing |
$ |
6,835,236 |
|
|
$ |
7,356,523 |
|
|
$ |
8,037,848 |
|
Interest bearing |
|
3,403,539 |
|
|
|
3,290,391 |
|
|
|
2,142,067 |
|
Savings and money market |
|
11,135,708 |
|
|
|
10,276,071 |
|
|
|
13,061,341 |
|
Time |
|
5,163,995 |
|
|
|
5,189,681 |
|
|
|
4,268,078 |
|
Total deposits |
|
26,538,478 |
|
|
|
26,112,666 |
|
|
|
27,509,334 |
|
Federal funds purchased |
|
— |
|
|
|
— |
|
|
|
190,000 |
|
FHLB advances |
|
5,115,000 |
|
|
|
5,165,000 |
|
|
|
5,420,000 |
|
Notes and other borrowings |
|
708,973 |
|
|
|
715,197 |
|
|
|
720,923 |
|
Other liabilities |
|
821,235 |
|
|
|
872,731 |
|
|
|
750,474 |
|
Total liabilities |
|
33,183,686 |
|
|
|
32,865,594 |
|
|
|
34,590,731 |
|
|
|
|
|
|
|
||||||
Commitments and contingencies |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Stockholders' equity: |
|
|
|
|
|
||||||
Common stock, par value |
|
744 |
|
|
|
744 |
|
|
|
757 |
|
Paid-in capital |
|
283,642 |
|
|
|
279,672 |
|
|
|
321,729 |
|
Retained earnings |
|
2,650,956 |
|
|
|
2,650,850 |
|
|
|
2,551,400 |
|
Accumulated other comprehensive loss |
|
(357,421 |
) |
|
|
(407,196 |
) |
|
|
(437,905 |
) |
Total stockholders' equity |
|
2,577,921 |
|
|
|
2,524,070 |
|
|
|
2,435,981 |
|
Total liabilities and stockholders' equity |
$ |
35,761,607 |
|
|
$ |
35,389,664 |
|
|
$ |
37,026,712 |
|
BANKUNITED, INC. AND SUBSIDIARIES |
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
|
Three Months Ended |
|
Years Ended |
|||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|||||||
Loans |
$ |
346,255 |
|
$ |
337,014 |
|
$ |
288,973 |
|
$ |
1,318,217 |
|
|
$ |
934,642 |
|
Investment securities |
|
125,993 |
|
|
122,857 |
|
|
105,172 |
|
|
488,212 |
|
|
|
280,100 |
|
Other |
|
10,957 |
|
|
10,668 |
|
|
7,345 |
|
|
51,152 |
|
|
|
15,709 |
|
Total interest income |
|
483,205 |
|
|
470,539 |
|
|
401,490 |
|
|
1,857,581 |
|
|
|
1,230,451 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
192,833 |
|
|
176,974 |
|
|
94,403 |
|
|
660,305 |
|
|
|
179,972 |
|
Borrowings |
|
73,162 |
|
|
78,723 |
|
|
64,021 |
|
|
323,472 |
|
|
|
137,519 |
|
Total interest expense |
|
265,995 |
|
|
255,697 |
|
|
158,424 |
|
|
983,777 |
|
|
|
317,491 |
|
Net interest income before provision for credit losses |
|
217,210 |
|
|
214,842 |
|
|
243,066 |
|
|
873,804 |
|
|
|
912,960 |
|
Provision for credit losses |
|
19,253 |
|
|
33,049 |
|
|
39,608 |
|
|
87,607 |
|
|
|
75,154 |
|
Net interest income after provision for credit losses |
|
197,957 |
|
|
181,793 |
|
|
203,458 |
|
|
786,197 |
|
|
|
837,806 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|||||||
Deposit service charges and fees |
|
5,386 |
|
|
5,402 |
|
|
5,482 |
|
|
21,682 |
|
|
|
23,402 |
|
Gain (loss) on investment securities, net |
|
617 |
|
|
887 |
|
|
320 |
|
|
(10,052 |
) |
|
|
(15,805 |
) |
Lease financing |
|
3,723 |
|
|
16,531 |
|
|
14,153 |
|
|
45,882 |
|
|
|
54,111 |
|
Other non-interest income |
|
7,366 |
|
|
4,904 |
|
|
6,858 |
|
|
29,326 |
|
|
|
15,928 |
|
Total non-interest income |
|
17,092 |
|
|
27,724 |
|
|
26,813 |
|
|
86,838 |
|
|
|
77,636 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|||||||
Employee compensation and benefits |
|
73,454 |
|
|
68,825 |
|
|
69,902 |
|
|
280,744 |
|
|
|
265,548 |
|
Occupancy and equipment |
|
10,610 |
|
|
10,890 |
|
|
10,770 |
|
|
43,345 |
|
|
|
45,400 |
|
Deposit insurance expense |
|
43,453 |
|
|
7,790 |
|
|
6,205 |
|
|
66,747 |
|
|
|
17,999 |
|
Professional fees |
|
5,052 |
|
|
2,696 |
|
|
3,028 |
|
|
14,184 |
|
|
|
11,730 |
|
Technology |
|
18,628 |
|
|
19,193 |
|
|
22,388 |
|
|
79,984 |
|
|
|
77,103 |
|
Depreciation of operating lease equipment |
|
10,476 |
|
|
11,217 |
|
|
12,547 |
|
|
44,446 |
|
|
|
50,388 |
|
Other non-interest expense |
|
29,190 |
|
|
26,479 |
|
|
23,639 |
|
|
106,501 |
|
|
|
72,142 |
|
Total non-interest expense |
|
190,863 |
|
|
147,090 |
|
|
148,479 |
|
|
635,951 |
|
|
|
540,310 |
|
Income before income taxes |
|
24,186 |
|
|
62,427 |
|
|
81,792 |
|
|
237,084 |
|
|
|
375,132 |
|
Provision for income taxes |
|
3,374 |
|
|
15,446 |
|
|
17,585 |
|
|
58,413 |
|
|
|
90,161 |
|
Net income |
$ |
20,812 |
|
$ |
46,981 |
|
$ |
64,207 |
|
$ |
178,671 |
|
|
$ |
284,971 |
|
Earnings per common share, basic |
$ |
0.27 |
|
$ |
0.63 |
|
$ |
0.83 |
|
$ |
2.39 |
|
|
$ |
3.55 |
|
Earnings per common share, diluted |
$ |
0.27 |
|
$ |
0.63 |
|
$ |
0.82 |
|
$ |
2.38 |
|
|
$ |
3.54 |
|
BANKUNITED, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||||
AVERAGE BALANCES AND YIELDS |
|||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, |
|
Three Months Ended December 31, |
||||||||||||||||||||||||
|
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 |
$ |
24,416,013 |
|
|
$ |
349,603 |
|
5.69 |
% |
|
$ |
24,417,433 |
|
|
$ |
340,357 |
|
5.54 |
% |
|
$ |
24,624,062 |
|
|
$ |
292,272 |
|
4.72 |
% |
Investment securities (3) |
|
8,850,397 |
|
|
|
126,870 |
|
5.73 |
% |
|
|
9,034,116 |
|
|
|
123,794 |
|
5.48 |
% |
|
|
9,788,969 |
|
|
|
106,034 |
|
4.33 |
% |
Other interest earning assets |
|
801,833 |
|
|
|
10,957 |
|
5.42 |
% |
|
|
785,146 |
|
|
|
10,668 |
|
5.39 |
% |
|
|
710,315 |
|
|
|
7,345 |
|
4.10 |
% |
Total interest earning assets |
|
34,068,243 |
|
|
|
487,430 |
|
5.70 |
% |
|
|
34,236,695 |
|
|
|
474,819 |
|
5.52 |
% |
|
|
35,123,346 |
|
|
|
405,651 |
|
4.60 |
% |
Allowance for credit losses |
|
(198,984 |
) |
|
|
|
|
|
|
(173,407 |
) |
|
|
|
|
|
|
(137,300 |
) |
|
|
|
|
||||||
Non-interest earning assets |
|
1,715,795 |
|
|
|
|
|
|
|
1,747,310 |
|
|
|
|
|
|
|
1,837,156 |
|
|
|
|
|
||||||
Total assets |
$ |
35,585,054 |
|
|
|
|
|
|
$ |
35,810,598 |
|
|
|
|
|
|
$ |
36,823,202 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing demand deposits |
$ |
3,433,216 |
|
|
$ |
31,978 |
|
3.70 |
% |
|
$ |
3,038,870 |
|
|
$ |
25,491 |
|
3.33 |
% |
|
$ |
2,183,854 |
|
|
$ |
6,704 |
|
1.22 |
% |
Savings and money market deposits |
|
10,287,945 |
|
|
|
104,188 |
|
4.02 |
% |
|
|
10,205,765 |
|
|
|
97,956 |
|
3.81 |
% |
|
|
12,054,892 |
|
|
|
68,001 |
|
2.24 |
% |
Time deposits |
|
5,225,756 |
|
|
|
56,667 |
|
4.30 |
% |
|
|
5,420,522 |
|
|
|
53,527 |
|
3.92 |
% |
|
|
3,960,111 |
|
|
|
19,698 |
|
1.97 |
% |
Total interest bearing deposits |
|
18,946,917 |
|
|
|
192,833 |
|
4.04 |
% |
|
|
18,665,157 |
|
|
|
176,974 |
|
3.76 |
% |
|
|
18,198,857 |
|
|
|
94,403 |
|
2.06 |
% |
Federal funds purchased |
|
— |
|
|
|
— |
|
— |
% |
|
|
— |
|
|
|
— |
|
— |
% |
|
|
175,637 |
|
|
|
1,677 |
|
3.74 |
% |
FHLB advances |
|
5,545,978 |
|
|
|
64,034 |
|
4.58 |
% |
|
|
6,040,870 |
|
|
|
69,525 |
|
4.57 |
% |
|
|
6,125,435 |
|
|
|
53,084 |
|
3.44 |
% |
Notes and other borrowings |
|
711,073 |
|
|
|
9,128 |
|
5.13 |
% |
|
|
715,307 |
|
|
|
9,198 |
|
5.14 |
% |
|
|
721,044 |
|
|
|
9,260 |
|
5.14 |
% |
Total interest bearing liabilities |
|
25,203,968 |
|
|
|
265,995 |
|
4.19 |
% |
|
|
25,421,334 |
|
|
|
255,697 |
|
3.99 |
% |
|
|
25,220,973 |
|
|
|
158,424 |
|
2.49 |
% |
Non-interest bearing demand deposits |
|
6,909,027 |
|
|
|
|
|
|
|
6,937,537 |
|
|
|
|
|
|
|
8,237,885 |
|
|
|
|
|
||||||
Other non-interest bearing liabilities |
|
903,099 |
|
|
|
|
|
|
|
868,178 |
|
|
|
|
|
|
|
879,207 |
|
|
|
|
|
||||||
Total liabilities |
|
33,016,094 |
|
|
|
|
|
|
|
33,227,049 |
|
|
|
|
|
|
|
34,338,065 |
|
|
|
|
|
||||||
Stockholders' equity |
|
2,568,960 |
|
|
|
|
|
|
|
2,583,549 |
|
|
|
|
|
|
|
2,485,137 |
|
|
|
|
|
||||||
Total liabilities and stockholders' equity |
$ |
35,585,054 |
|
|
|
|
|
|
$ |
35,810,598 |
|
|
|
|
|
|
$ |
36,823,202 |
|
|
|
|
|
||||||
Net interest income |
|
|
$ |
221,435 |
|
|
|
|
|
$ |
219,122 |
|
|
|
|
|
$ |
247,227 |
|
|
|||||||||
Interest rate spread |
|
|
|
|
1.51 |
% |
|
|
|
|
|
1.53 |
% |
|
|
|
|
|
2.11 |
% |
|||||||||
Net interest margin |
|
|
|
|
2.60 |
% |
|
|
|
|
|
2.56 |
% |
|
|
|
|
|
2.81 |
% |
|||||||||
____________
(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) |
|||||||||||||||||||
|
Years Ended December 31, |
||||||||||||||||||
|
2023 |
|
2022 |
||||||||||||||||
|
Average Balance |
|
Interest (1) |
|
Yield/ Rate (1) |
|
Average Balance |
|
Interest (1) |
|
Yield/ Rate (1) |
||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans |
$ |
24,558,430 |
|
|
$ |
1,331,578 |
|
5.42 |
% |
|
$ |
23,937,857 |
|
|
$ |
947,386 |
|
3.96 |
% |
Investment securities (2) |
|
9,228,718 |
|
|
|
491,851 |
|
5.33 |
% |
|
|
10,081,701 |
|
|
|
283,081 |
|
2.81 |
% |
Other interest earning assets |
|
986,186 |
|
|
|
51,152 |
|
5.19 |
% |
|
|
675,068 |
|
|
|
15,709 |
|
2.33 |
% |
Total interest earning assets |
|
34,773,334 |
|
|
|
1,874,581 |
|
5.39 |
% |
|
|
34,694,626 |
|
|
|
1,246,176 |
|
3.59 |
% |
Allowance for credit losses |
|
(171,618 |
) |
|
|
|
|
|
|
(132,033 |
) |
|
|
|
|
||||
Non-interest earning assets |
|
1,749,981 |
|
|
|
|
|
|
|
1,721,570 |
|
|
|
|
|
||||
Total assets |
$ |
36,351,697 |
|
|
|
|
|
|
$ |
36,284,163 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest bearing demand deposits |
$ |
2,905,968 |
|
|
$ |
86,759 |
|
2.99 |
% |
|
$ |
2,538,906 |
|
|
$ |
13,919 |
|
0.55 |
% |
Savings and money market deposits |
|
10,704,470 |
|
|
|
382,432 |
|
3.57 |
% |
|
|
12,874,240 |
|
|
|
130,705 |
|
1.02 |
% |
Time deposits |
|
5,169,458 |
|
|
|
191,114 |
|
3.70 |
% |
|
|
3,338,671 |
|
|
|
35,348 |
|
1.06 |
% |
Total interest bearing deposits |
|
18,779,896 |
|
|
|
660,305 |
|
3.52 |
% |
|
|
18,751,817 |
|
|
|
179,972 |
|
0.96 |
% |
Federal funds purchased |
|
35,403 |
|
|
|
1,611 |
|
4.55 |
% |
|
|
157,979 |
|
|
|
2,723 |
|
1.72 |
% |
FHLB advances |
|
6,331,685 |
|
|
|
285,026 |
|
4.50 |
% |
|
|
4,383,507 |
|
|
|
97,763 |
|
2.23 |
% |
Notes and other borrowings |
|
716,633 |
|
|
|
36,835 |
|
5.14 |
% |
|
|
721,223 |
|
|
|
37,033 |
|
5.13 |
% |
Total interest bearing liabilities |
|
25,863,617 |
|
|
|
983,777 |
|
3.80 |
% |
|
|
24,014,526 |
|
|
|
317,491 |
|
1.32 |
% |
Non-interest bearing demand deposits |
|
7,091,029 |
|
|
|
|
|
|
|
8,861,111 |
|
|
|
|
|
||||
Other non-interest bearing liabilities |
|
848,023 |
|
|
|
|
|
|
|
708,473 |
|
|
|
|
|
||||
Total liabilities |
|
33,802,669 |
|
|
|
|
|
|
|
33,584,110 |
|
|
|
|
|
||||
Stockholders' equity |
|
2,549,028 |
|
|
|
|
|
|
|
2,700,053 |
|
|
|
|
|
||||
Total liabilities and stockholders' equity |
$ |
36,351,697 |
|
|
|
|
|
|
$ |
36,284,163 |
|
|
|
|
|
||||
Net interest income |
|
|
$ |
890,804 |
|
|
|
|
|
$ |
928,685 |
|
|
||||||
Interest rate spread |
|
|
|
|
1.59 |
% |
|
|
|
|
|
2.27 |
% |
||||||
Net interest margin |
|
|
|
|
2.56 |
% |
|
|
|
|
|
2.68 |
% |
||||||
____________
(1) |
On a tax-equivalent basis where applicable |
||
(2) |
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 December 31, |
|
Years Ended December 31, |
||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
20,812 |
|
|
$ |
64,207 |
|
|
$ |
178,671 |
|
|
$ |
284,971 |
|
Distributed and undistributed earnings allocated to participating securities |
|
(930 |
) |
|
|
(1,519 |
) |
|
|
(3,565 |
) |
|
|
(5,075 |
) |
Income allocated to common stockholders for basic earnings per common share |
$ |
19,882 |
|
|
$ |
62,688 |
|
|
$ |
175,106 |
|
|
$ |
279,896 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
74,384,185 |
|
|
|
77,043,587 |
|
|
|
74,493,898 |
|
|
|
80,032,356 |
|
Less average unvested stock awards |
|
(1,130,715 |
) |
|
|
(1,207,275 |
) |
|
|
(1,168,004 |
) |
|
|
(1,224,568 |
) |
Weighted average shares for basic earnings per common share |
|
73,253,470 |
|
|
|
75,836,312 |
|
|
|
73,325,894 |
|
|
|
78,807,788 |
|
Basic earnings per common share |
$ |
0.27 |
|
|
$ |
0.83 |
|
|
$ |
2.39 |
|
|
$ |
3.55 |
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Income allocated to common stockholders for basic earnings per common share |
$ |
19,882 |
|
|
$ |
62,688 |
|
|
$ |
175,106 |
|
|
$ |
279,896 |
|
Adjustment for earnings reallocated from participating securities |
|
— |
|
|
|
(184 |
) |
|
|
(275 |
) |
|
|
(626 |
) |
Income used in calculating diluted earnings per common share |
$ |
19,882 |
|
|
$ |
62,504 |
|
|
$ |
174,831 |
|
|
$ |
279,270 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic earnings per common share |
|
73,253,470 |
|
|
|
75,836,312 |
|
|
|
73,325,894 |
|
|
|
78,807,788 |
|
Dilutive effect of certain share-based awards |
|
203,123 |
|
|
|
127 |
|
|
|
197,441 |
|
|
|
94 |
|
Weighted average shares for diluted earnings per common share |
|
73,456,593 |
|
|
|
75,836,439 |
|
|
|
73,523,335 |
|
|
|
78,807,882 |
|
Diluted earnings per common share |
$ |
0.27 |
|
|
$ |
0.82 |
|
|
$ |
2.38 |
|
|
$ |
3.54 |
|
BANKUNITED, INC. AND SUBSIDIARIES |
|||||||||||||||||
SELECTED RATIOS |
|||||||||||||||||
|
At or for the Three Months Ended |
|
Years Ended December 31, |
||||||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
2023 |
|
2022 |
||||||||
Financial ratios (4) |
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets |
|
0.23 |
% |
|
|
0.52 |
% |
|
|
0.69 |
% |
|
0.49 |
% |
|
0.79 |
% |
Return on average stockholders’ equity |
|
3.2 |
% |
|
|
7.2 |
% |
|
|
10.3 |
% |
|
7.0 |
% |
|
10.6 |
% |
Net interest margin (3) |
|
2.60 |
% |
|
|
2.56 |
% |
|
|
2.81 |
% |
|
2.56 |
% |
|
2.68 |
% |
Loans to deposits |
|
92.8 |
% |
|
|
93.3 |
% |
|
|
90.5 |
% |
|
|
|
|
||
Tangible book value per common share |
$ |
33.62 |
|
|
$ |
32.88 |
|
|
$ |
31.16 |
|
|
|
|
|
||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||
Asset quality ratios |
|
|
|
|
|
|||
Non-performing loans to total loans (1)(5) |
0.52 |
% |
|
0.56 |
% |
|
0.42 |
% |
Non-performing assets to total assets (2)(5) |
0.37 |
% |
|
0.40 |
% |
|
0.29 |
% |
Allowance for credit losses to total loans |
0.82 |
% |
|
0.80 |
% |
|
0.59 |
% |
Allowance for credit losses to non-performing loans (1)(5) |
159.54 |
% |
|
143.22 |
% |
|
140.88 |
% |
Net charge-offs to average loans |
0.09 |
% |
|
0.07 |
% |
|
0.22 |
% |
____________
(1) |
We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. |
||
(2) |
Non-performing assets include non-performing loans, OREO and other repossessed assets. |
||
(3) |
On a tax-equivalent basis. |
||
(4) |
Annualized for the three month periods. |
||
(5) |
Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling |
||
|
December 31, 2023 |
|
December 31, 2022 |
|
Required to be Considered Well Capitalized |
|||||||||
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
||||||
Capital ratios |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage |
7.9 |
% |
|
9.1 |
% |
|
7.5 |
% |
|
8.4 |
% |
|
5.0 |
% |
Common Equity Tier 1 ("CET1") risk-based capital |
11.4 |
% |
|
13.1 |
% |
|
11.0 |
% |
|
12.4 |
% |
|
6.5 |
% |
Total risk-based capital |
13.4 |
% |
|
13.9 |
% |
|
12.7 |
% |
|
12.9 |
% |
|
10.0 |
% |
Tangible Common Equity/Tangible Assets |
7.0 |
% |
|
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):
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||
Total stockholders’ equity |
$ |
2,577,921 |
|
$ |
2,524,070 |
|
$ |
2,435,981 |
Less: goodwill and other intangible assets |
|
77,637 |
|
|
77,637 |
|
|
77,637 |
Tangible stockholders’ equity |
$ |
2,500,284 |
|
$ |
2,446,433 |
|
$ |
2,358,344 |
|
|
|
|
|
|
|||
Common shares issued and outstanding |
|
74,372,505 |
|
|
74,413,059 |
|
|
75,674,587 |
|
|
|
|
|
|
|||
Book value per common share |
$ |
34.66 |
|
$ |
33.92 |
|
$ |
32.19 |
|
|
|
|
|
|
|||
Tangible book value per common share |
$ |
33.62 |
|
$ |
32.88 |
|
$ |
31.16 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240126405177/en/
BankUnited, Inc.
Investor Relations:
Leslie N. Lunak, 786-313-1698
llunak@bankunited.com
Source: BankUnited, Inc.
FAQ
What was the net income reported by BankUnited, Inc. for the quarter ended December 31, 2023?
What were the notable items that impacted the financial results for the quarter ended December 31, 2023?
What was the net interest margin for BankUnited, Inc. for the quarter ended December 31, 2023?
What was the capital position of BankUnited, Inc. at December 31, 2023?
How did non-performing loans change for BankUnited, Inc. from September 30, 2023, to December 31, 2023?
