BankUnited, Inc. Reports Second Quarter 2021 Results
BankUnited, Inc. (NYSE: BKU) reported strong financial results for Q2 2021, with net income of $104 million or $1.11 per diluted share, an increase from the previous quarter's $98.8 million ($1.06/share) and $76.5 million ($0.80/share) year-over-year. For H1 2021, net income was $202.8 million ($2.17/share), up from $45.6 million ($0.47/share) in H1 2020. Total deposits grew by $877 million and the company announced a $150 million share repurchase program on July 21, 2021. Criticized loans decreased by 21%, signaling improving asset quality.
- Net income increased to $104 million in Q2 2021 from $98.8 million in Q1 2021.
- Net income for H1 2021 rose to $202.8 million from $45.6 million in H1 2020.
- Total deposits grew by $877 million in Q2 2021.
- Criticized loans decreased by 21% to $2.1 billion in Q2 2021.
- The company authorized a $150 million share repurchase program.
- Net interest margin decreased to 2.37% in Q2 2021 from 2.39% in Q1 2021.
- Non-performing loans increased to $292.7 million, or 1.28% of total loans, up from $233.6 million in Q1 2021.
BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended June 30, 2021.
“We're very happy with results for the quarter and optimistic about a strong economic recovery" said Rajinder Singh, Chairman, President and Chief Executive Officer.
For the quarter ended June 30, 2021, the Company reported net income of
For the six months ended June 30, 2021, the Company reported net income of
Financial Highlights
-
Pre-tax, pre-provision net revenue ("PPNR") was
$112.6 million for the quarter ended June 30, 2021 compared to$103.3 million for the immediately preceding quarter ended March 31, 2021 and$122.3 million for the quarter ended June 30, 2020. For the six months ended June 30, 2021 and 2020, PPNR was$215.9 million and$207.3 million , respectively. -
Net interest income increased by
$2.1 million compared to the immediately preceding quarter ended March 31, 2021 and by$8.0 million compared to the quarter ended June 30, 2020. The net interest margin calculated on a tax-equivalent basis, impacted by elevated levels of liquidity, decreased to2.37% for the quarter ended June 30, 2021 from2.39% for both the immediately preceding quarter ended March 31, 2021 and the quarter ended June 30, 2020. -
The average cost of total deposits continued to decline, dropping by
0.08% to0.25% for the quarter ended June 30, 2021 from0.33% for the immediately preceding quarter ended March 31, 2021, and0.80% for the quarter ended June 30, 2020. On a spot basis, the average annual percentage yield ("APY") on total deposits declined to0.22% at June 30, 2021 from0.27% at March 31, 2021 and0.36% at December 31, 2020. -
For the quarter ended June 30, 2021, the Company recorded a recovery of credit losses of
$(27.5) million compared to a recovery of$(28.0) million for the immediately preceding quarter ended March 31, 2021 and a provision for credit losses of$25.4 million for the quarter ended June 30, 2020. For the six months ended June 30, 2021 and 2020, the provision for (recovery of) credit losses was$(55.5) million and$150.8 million , respectively. -
As expected, the Company's levels of criticized and classified loans, which had increased as a result of the COVID-19 pandemic, have started to decline. During the quarter ended June 30, 2021, total criticized and classified loans declined by
$541 million or21% , to$2.1 billion at June 30, 2021 from$2.6 billion at March 31, 2021. -
Loans currently under short-term deferral totaled
$41 million and loans modified under the CARES Act totaled$456 million for a total of$497 million at June 30, 2021, down from a total of$762 million at March 31, 2021. -
Non-interest bearing demand deposits grew by
$869 million during the quarter ended June 30, 2021 while total deposits grew by$877 million . Average non-interest bearing demand deposits grew by$673 million for the quarter ended June 30, 2021 compared to the immediately preceding quarter and by$2.9 billion compared to the second quarter of the prior year. At June 30, 2021, non-interest bearing demand deposits represented31% of total deposits, compared to25% of total deposits at December 31, 2020. -
Investment securities grew by
$987 million for the quarter ended June 30, 2021, while loans and operating leases, excluding PPP loans, declined by$69 million . Excess liquidity was deployed into the investment portfolio during the quarter as loan growth continued to lag growth in deposits. -
Book value per common share and tangible book value per common share at June 30, 2021 increased to
$33.91 and$33.08 , respectively, from$32.05 and$31.22 , respectively at December 31, 2020. -
On July 21, 2021, the Company's Board of Directors authorized the repurchase of up to an additional
$150 million in shares of its outstanding common stock.
Loans and Leases
A comparison of loan and lease portfolio composition at the dates indicated follows (dollars in thousands):
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|||||||||||||||
Residential and other consumer loans |
$ |
7,076,274 |
|
|
30.9 |
% |
|
$ |
6,582,447 |
|
|
28.1 |
% |
|
$ |
6,348,222 |
|
|
26.6 |
% |
Multi-family |
1,256,711 |
|
|
5.5 |
% |
|
1,507,462 |
|
|
6.5 |
% |
|
1,639,201 |
|
|
6.9 |
% |
|||
Non-owner occupied commercial real estate |
4,724,183 |
|
|
20.7 |
% |
|
4,871,110 |
|
|
20.9 |
% |
|
4,963,273 |
|
|
20.8 |
% |
|||
Construction and land |
218,634 |
|
|
1.0 |
% |
|
287,821 |
|
|
1.2 |
% |
|
293,307 |
|
|
1.2 |
% |
|||
Owner occupied commercial real estate |
1,960,900 |
|
|
8.6 |
% |
|
1,932,153 |
|
|
8.3 |
% |
|
2,000,770 |
|
|
8.4 |
% |
|||
Commercial and industrial |
4,205,795 |
|
|
18.4 |
% |
|
4,048,473 |
|
|
17.3 |
% |
|
4,447,383 |
|
|
18.6 |
% |
|||
PPP |
491,960 |
|
|
2.1 |
% |
|
911,951 |
|
|
3.9 |
% |
|
781,811 |
|
|
3.3 |
% |
|||
Pinnacle |
1,046,537 |
|
|
4.6 |
% |
|
1,088,685 |
|
|
4.7 |
% |
|
1,107,386 |
|
|
4.6 |
% |
|||
Bridge - franchise finance |
463,874 |
|
|
2.0 |
% |
|
524,617 |
|
|
2.2 |
% |
|
549,733 |
|
|
2.3 |
% |
|||
Bridge - equipment finance |
421,939 |
|
|
1.8 |
% |
|
460,391 |
|
|
2.0 |
% |
|
475,548 |
|
|
2.0 |
% |
|||
Mortgage warehouse lending ("MWL") |
1,018,267 |
|
|
4.4 |
% |
|
1,145,957 |
|
|
4.9 |
% |
|
1,259,408 |
|
|
5.3 |
% |
|||
|
$ |
22,885,074 |
|
|
100.0 |
% |
|
$ |
23,361,067 |
|
|
100.0 |
% |
|
$ |
23,866,042 |
|
|
100.0 |
% |
Operating lease equipment, net |
$ |
667,935 |
|
|
|
|
$ |
681,003 |
|
|
|
|
$ |
663,517 |
|
|
|
|||
Residential and other consumer loans grew by
Commercial and industrial loans, including owner-occupied commercial real estate, grew by
PPP loans declined by
Asset Quality and the Allowance for Credit Losses
The following table presents information about non-performing loans, loans on deferral and CARES Act modifications at June 30, 2021 (dollars in thousands):
|
Non-Performing Loans |
|
Currently Under Short-Term Deferral |
|
CARES Act Modification |
||||||
Residential and other consumer (1) |
$ |
45,553 |
|
|
$ |
38,584 |
|
|
$ |
20,135 |
|
Commercial: |
|
|
|
|
|
||||||
CRE by Property Type: |
|
|
|
|
|
||||||
Retail |
21,382 |
|
|
— |
|
|
15,871 |
|
|||
Hotel |
22,143 |
|
|
— |
|
|
225,436 |
|
|||
Office |
5,263 |
|
|
1,681 |
|
|
43,179 |
|
|||
Multi-family |
9,602 |
|
|
— |
|
|
13,872 |
|
|||
Other |
4,783 |
|
|
— |
|
|
— |
|
|||
Owner occupied commercial real estate |
26,582 |
|
|
— |
|
|
15,223 |
|
|||
Commercial and industrial |
123,950 |
|
|
524 |
|
|
96,545 |
|
|||
Bridge - franchise finance |
33,405 |
|
— |
|
25,647 |
||||||
Total commercial |
247,110 |
|
2,205 |
|
435,773 |
||||||
Total |
$ |
292,663 |
|
|
$ |
40,789 |
|
|
$ |
455,908 |
|
| ______________ | ||
(1) |
Excludes government insured residential loans. |
|
In the table above, "currently under short-term deferral" refers to loans subject to a 90-day payment deferral at June 30, 2021 and "CARES Act modification" refers to loans subject to longer-term modifications that, were it not for the provisions of the CARES Act, would likely have been reported as TDRs. Non-performing loans may include some loans that have been modified under the CARES Act.
Non-performing loans increased to
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
||||||
Special mention |
$ |
138,064 |
|
|
$ |
420,331 |
|
|
$ |
711,516 |
|
Substandard - accruing |
1,684,666 |
|
|
1,983,191 |
|
|
1,758,654 |
||||
Substandard - non-accruing |
229,646 |
|
|
189,589 |
|
|
203,758 |
||||
Doubtful |
17,332 |
|
|
17,903 |
|
|
11,867 |
|
|||
Total |
$ |
2,069,708 |
|
|
$ |
2,611,014 |
|
|
$ |
2,685,795 |
|
As expected, total criticized and classified loans declined during the quarter ended June 30, 2021. The increase in substandard non-accruing loans was related primarily to the commercial and industrial relationship discussed above.
The following table presents the ACL at the dates indicated, related ACL coverage ratios and net charge-off rates for the quarters ended June 30, 2021 and March 31, 2021 and the year ended December 31, 2020 (dollars in thousands):
|
ACL |
|
ACL to Total Loans (1) |
|
ACL to Non-Performing Loans |
|
Net Charge-offs to Average Loans (2) |
|||||
December 31, 2020 |
$ |
257,323 |
|
|
1.08 |
% |
|
105.26 |
% |
|
0.26 |
% |
March 31, 2021 |
$ |
220,934 |
|
|
0.95 |
% |
|
94.56 |
% |
|
0.17 |
% |
June 30, 2021 |
$ |
175,642 |
|
|
0.77 |
% |
|
60.02 |
% |
|
0.24 |
% |
| ______________ | ||
(1) |
ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was |
|
(2) |
Annualized for the periods ended March 31 and June 30, 2021. |
|
The ACL at June 30, 2021 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. The estimate was informed by Moody's economic scenarios published in June 2021, economic information provided by additional sources, data reflecting the impact of recent events on individual borrowers and other relevant information. The decline in the ACL and in ACL coverage ratios from December 31, 2020 to June 30, 2021 related primarily to the recovery of credit losses recorded during the six months ended June 30, 2021 and to a lesser extent, charge-offs.
For the quarter ended June 30, 2021, the Company recorded a recovery of credit losses of
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Beginning balance |
$ |
220,934 |
|
|
$ |
250,579 |
|
|
$ |
257,323 |
|
|
$ |
108,671 |
|
Cumulative effect of adoption of CECL |
— |
|
|
— |
|
|
— |
|
|
27,305 |
|
||||
Balance after adoption of CECL |
220,934 |
|
|
250,579 |
|
|
257,323 |
|
|
135,976 |
|
||||
Provision (recovery) |
(27,663) |
|
|
31,584 |
|
|
(53,969) |
|
|
153,449 |
|
||||
Net charge-offs |
(17,629) |
|
|
(16,040) |
|
|
(27,712) |
|
|
(23,302) |
|
||||
Ending balance |
$ |
175,642 |
|
|
$ |
266,123 |
|
|
$ |
175,642 |
|
|
$ |
266,123 |
|
Net interest income
Net interest income for the quarter ended June 30, 2021 increased to
Interest income decreased by
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by
-
The average rate paid on interest bearing deposits decreased to
0.35% for the quarter ended June 30, 2021, from0.45% for the quarter ended March 31, 2021. This decline reflected continued initiatives taken to lower rates paid on deposits including the re-pricing of term deposits. -
The tax-equivalent yield on investment securities decreased to
1.56% for the quarter ended June 30, 2021 from1.73% for the quarter ended March 31, 2021. This decrease resulted from the impact of purchases of lower-yielding securities coupled with amortization, maturities and prepayment of securities purchased in a higher rate environment. Accounting adjustments related to faster prepayment speeds of securities purchased at a premium negatively impacted the yield on investment securities for the quarter ended June 30, 2021 by approximately0.10% . -
The tax-equivalent yield on loans increased to
3.59% for the quarter ended June 30, 2021, from3.58% for the quarter ended March 31, 2021. Accelerated amortization of origination fees on PPP loans that were partially or fully forgiven during the quarter impacted the yield on loans by approximately0.11% for the quarter ended June 30, 2021, compared to0.06% for the quarter ended March 31, 2021. Factoring out the impact of accelerated amortization of PPP origination fees, the yield on loans for the quarter ended June 30, 2021 decreased by0.04% compared to the immediately preceding quarter. - The increase in average non-interest bearing demand deposits as a percentage of average total deposits also positively impacted the cost of total deposits and the net interest margin.
Capital Actions
On July 21, 2021, the Company's Board of Directors authorized the repurchase of up to
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, July 22, 2021 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 http://www.ir.bankunited.com/. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 7297918. A replay of the call will be available from 12:00 p.m. ET on July 22nd through 11:59 p.m. ET on July 29th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 7297918. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.
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 limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by the COVID-19 pandemic. 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, 2020 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) |
|||||||
|
|||||||
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Cash and due from banks: |
|
|
|
||||
Non-interest bearing |
$ |
17,902 |
|
|
$ |
20,233 |
|
Interest bearing |
877,446 |
|
|
377,483 |
|
||
Cash and cash equivalents |
895,348 |
|
|
397,716 |
|
||
Investment securities (including securities recorded at fair value of |
10,232,035 |
|
|
9,176,683 |
|
||
Non-marketable equity securities |
164,959 |
|
|
195,865 |
|
||
Loans held for sale |
— |
|
|
24,676 |
|
||
Loans |
22,885,074 |
|
|
23,866,042 |
|
||
Allowance for credit losses |
(175,642) |
|
|
(257,323) |
|
||
Loans, net |
22,709,432 |
|
|
23,608,719 |
|
||
Bank owned life insurance |
303,519 |
|
|
294,629 |
|
||
Operating lease equipment, net |
667,935 |
|
|
663,517 |
|
||
Goodwill |
77,637 |
|
|
77,637 |
|
||
Other assets |
649,422 |
|
|
571,051 |
|
||
Total assets |
$ |
35,700,287 |
|
|
$ |
35,010,493 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Liabilities: |
|
|
|
||||
Demand deposits: |
|
|
|
||||
Non-interest bearing |
$ |
8,834,228 |
|
|
$ |
7,008,838 |
|
Interest bearing |
3,218,441 |
|
|
3,020,039 |
|
||
Savings and money market |
13,578,526 |
|
|
12,659,740 |
|
||
Time |
2,978,074 |
|
|
4,807,199 |
|
||
Total deposits |
28,609,269 |
|
|
27,495,816 |
|
||
Federal funds purchased |
— |
|
|
180,000 |
|
||
FHLB advances |
2,681,505 |
|
|
3,122,999 |
|
||
Notes and other borrowings |
721,639 |
|
|
722,495 |
|
||
Other liabilities |
526,331 |
|
|
506,171 |
|
||
Total liabilities |
32,538,744 |
|
|
32,027,481 |
|
||
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock, par value |
932 |
|
|
931 |
|
||
Paid-in capital |
1,011,786 |
|
|
1,017,518 |
|
||
Retained earnings |
2,173,698 |
|
|
2,013,715 |
|
||
Accumulated other comprehensive loss |
(24,873) |
|
|
(49,152) |
|
||
Total stockholders' equity |
3,161,543 |
|
|
2,983,012 |
|
||
Total liabilities and stockholders' equity |
$ |
35,700,287 |
|
|
$ |
35,010,493 |
|
BANKUNITED, INC. AND SUBSIDIARIES |
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|||||||||||||||||||
(In thousands, except per share data) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||||
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
$ |
202,520 |
|
|
$ |
205,335 |
|
|
$ |
213,938 |
|
|
$ |
407,855 |
|
|
$ |
448,297 |
|
Investment securities |
37,674 |
|
|
38,501 |
|
|
50,932 |
|
|
76,175 |
|
|
106,992 |
|
|||||
Other |
1,607 |
|
|
1,593 |
|
|
2,908 |
|
|
3,200 |
|
|
6,628 |
|
|||||
Total interest income |
241,801 |
|
|
245,429 |
|
|
267,778 |
|
|
487,230 |
|
|
561,917 |
|
|||||
Interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
17,316 |
|
|
22,376 |
|
|
50,187 |
|
|
39,692 |
|
|
133,009 |
|
|||||
Borrowings |
26,174 |
|
|
26,813 |
|
|
27,254 |
|
|
52,987 |
|
|
57,995 |
|
|||||
Total interest expense |
43,490 |
|
|
49,189 |
|
|
77,441 |
|
|
92,679 |
|
|
191,004 |
|
|||||
Net interest income before provision for credit losses |
198,311 |
|
|
196,240 |
|
|
190,337 |
|
|
394,551 |
|
|
370,913 |
|
|||||
Provision for (recovery of) credit losses |
(27,534) |
|
|
(27,989) |
|
|
25,414 |
|
|
(55,523) |
|
|
150,842 |
|
|||||
Net interest income after provision for credit losses |
225,845 |
|
|
224,229 |
|
|
164,923 |
|
|
450,074 |
|
|
220,071 |
|
|||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit service charges and fees |
5,417 |
|
|
4,900 |
|
|
3,701 |
|
|
10,317 |
|
|
7,887 |
|
|||||
Gain on sale of loans, net |
2,234 |
|
|
1,754 |
|
|
4,326 |
|
|
3,988 |
|
|
7,792 |
|
|||||
Gain on investment securities, net |
4,155 |
|
|
2,365 |
|
|
6,836 |
|
|
6,520 |
|
|
3,383 |
|
|||||
Lease financing |
13,522 |
|
|
12,488 |
|
|
16,150 |
|
|
26,010 |
|
|
31,631 |
|
|||||
Other non-interest income |
7,429 |
|
|
8,789 |
|
|
7,338 |
|
|
16,218 |
|
|
10,956 |
|
|||||
Total non-interest income |
32,757 |
|
|
30,296 |
|
|
38,351 |
|
|
63,053 |
|
|
61,649 |
|
|||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||
Employee compensation and benefits |
56,459 |
|
|
59,288 |
|
|
48,877 |
|
|
115,747 |
|
|
107,764 |
|
|||||
Occupancy and equipment |
11,492 |
|
|
11,875 |
|
|
11,901 |
|
|
23,367 |
|
|
24,270 |
|
|||||
Deposit insurance expense |
4,222 |
|
|
7,450 |
|
|
4,806 |
|
|
11,672 |
|
|
9,209 |
|
|||||
Professional fees |
2,139 |
|
|
1,912 |
|
|
3,131 |
|
|
4,051 |
|
|
6,335 |
|
|||||
Technology and telecommunications |
16,851 |
|
|
15,741 |
|
|
14,025 |
|
|
32,592 |
|
|
26,621 |
|
|||||
Depreciation of operating lease equipment |
12,834 |
|
|
12,217 |
|
|
12,219 |
|
|
25,051 |
|
|
24,822 |
|
|||||
Other non-interest expense |
14,455 |
|
|
14,738 |
|
|
11,411 |
|
|
29,193 |
|
|
26,217 |
|
|||||
Total non-interest expense |
118,452 |
|
|
123,221 |
|
|
106,370 |
|
|
241,673 |
|
|
225,238 |
|
|||||
Income before income taxes |
140,150 |
|
|
131,304 |
|
|
96,904 |
|
|
271,454 |
|
|
56,482 |
|
|||||
Provision for income taxes |
36,176 |
|
|
32,490 |
|
|
20,396 |
|
|
68,666 |
|
|
10,925 |
|
|||||
Net income |
$ |
103,974 |
|
|
$ |
98,814 |
|
|
$ |
76,508 |
|
|
$ |
202,788 |
|
|
$ |
45,557 |
|
Earnings per common share, basic |
$ |
1.12 |
|
|
$ |
1.06 |
|
|
$ |
0.80 |
|
|
$ |
2.18 |
|
|
$ |
0.47 |
|
Earnings per common share, diluted |
$ |
1.11 |
|
|
$ |
1.06 |
|
|
$ |
0.80 |
|
|
$ |
2.17 |
|
|
$ |
0.47 |
|
BANKUNITED, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||
AVERAGE BALANCES AND YIELDS |
||||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2021 |
|
Three Months Ended March 31, 2021 |
|
Three Months Ended June 30, 2020 |
|||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
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 |
$ |
22,996,564 |
|
|
$ |
205,940 |
|
|
3.59 |
% |
|
$ |
23,549,309 |
|
|
$ |
208,821 |
|
|
3.58 |
% |
|
$ |
23,534,684 |
|
|
$ |
217,691 |
|
|
3.71 |
% |
Investment securities (3) |
9,839,422 |
|
|
38,338 |
|
|
1.56 |
% |
|
9,070,185 |
|
|
39,188 |
|
|
1.73 |
% |
|
8,325,217 |
|
|
51,684 |
|
|
2.48 |
% |
||||||
Other interest earning assets |
1,380,317 |
|
|
1,607 |
|
|
0.47 |
% |
|
1,062,840 |
|
|
1,593 |
|
|
0.61 |
% |
|
765,848 |
|
|
2,908 |
|
|
1.53 |
% |
||||||
Total interest earning assets |
34,216,303 |
|
|
245,885 |
|
|
2.88 |
% |
|
33,682,334 |
|
|
249,602 |
|
|
2.98 |
% |
|
32,625,749 |
|
|
272,283 |
|
|
3.35 |
% |
||||||
Allowance for credit losses |
(215,151) |
|
|
|
|
|
|
(254,438) |
|
|
|
|
|
|
(254,396) |
|
|
|
|
|
||||||||||||
Non-interest earning assets |
1,732,676 |
|
|
|
|
|
|
1,724,176 |
|
|
|
|
|
|
1,976,398 |
|
|
|
|
|
||||||||||||
Total assets |
$ |
35,733,828 |
|
|
|
|
|
|
$ |
35,152,072 |
|
|
|
|
|
|
$ |
34,347,751 |
|
|
|
|
|
|||||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing demand deposits |
$ |
3,069,945 |
|
|
$ |
2,594 |
|
|
0.34 |
% |
|
$ |
2,942,874 |
|
|
$ |
2,774 |
|
|
0.38 |
% |
|
$ |
2,448,545 |
|
|
$ |
4,722 |
|
|
0.78 |
% |
Savings and money market deposits |
13,541,237 |
|
|
11,307 |
|
|
0.33 |
% |
|
12,793,019 |
|
|
12,127 |
|
|
0.38 |
% |
|
10,450,310 |
|
|
17,447 |
|
|
0.67 |
% |
||||||
Time deposits |
3,380,582 |
|
|
3,415 |
|
|
0.41 |
% |
|
4,330,781 |
|
|
7,475 |
|
|
0.70 |
% |
|
7,096,097 |
|
|
28,018 |
|
|
1.59 |
% |
||||||
Total interest bearing deposits |
19,991,764 |
|
|
17,316 |
|
|
0.35 |
% |
|
20,066,674 |
|
|
22,376 |
|
|
0.45 |
% |
|
19,994,952 |
|
|
50,187 |
|
|
1.01 |
% |
||||||
Federal funds purchased |
— |
|
|
— |
|
|
— |
% |
|
8,000 |
|
|
3 |
|
|
0.15 |
% |
|
119,835 |
|
|
32 |
|
|
0.11 |
% |
||||||
FHLB and PPPLF borrowings |
2,873,922 |
|
|
16,922 |
|
|
2.36 |
% |
|
3,072,717 |
|
|
17,558 |
|
|
2.32 |
% |
|
4,961,376 |
|
|
21,054 |
|
|
1.71 |
% |
||||||
Notes and other borrowings |
721,753 |
|
|
9,252 |
|
|
5.13 |
% |
|
722,305 |
|
|
9,252 |
|
|
5.12 |
% |
|
493,278 |
|
|
6,168 |
|
|
5.00 |
% |
||||||
Total interest bearing liabilities |
23,587,439 |
|
|
43,490 |
|
|
0.74 |
% |
|
23,869,696 |
|
|
49,189 |
|
|
0.83 |
% |
|
25,569,441 |
|
|
77,441 |
|
|
1.22 |
% |
||||||
Non-interest bearing demand deposits |
8,163,879 |
|
|
|
|
|
|
7,491,249 |
|
|
|
|
|
|
5,313,009 |
|
|
|
|
|
||||||||||||
Other non-interest bearing liabilities |
851,044 |
|
|
|
|
|
|
746,973 |
|
|
|
|
|
|
820,439 |
|
|
|
|
|
||||||||||||
Total liabilities |
32,602,362 |
|
|
|
|
|
|
32,107,918 |
|
|
|
|
|
|
31,702,889 |
|
|
|
|
|
||||||||||||
Stockholders' equity |
3,131,466 |
|
|
|
|
|
|
3,044,154 |
|
|
|
|
|
|
2,644,862 |
|
|
|
|
|
||||||||||||
Total liabilities and stockholders' equity |
$ |
35,733,828 |
|
|
|
|
|
|
$ |
35,152,072 |
|
|
|
|
|
|
$ |
34,347,751 |
|
|
|
|
|
|||||||||
Net interest income |
|
|
$ |
202,395 |
|
|
|
|
|
|
$ |
200,413 |
|
|
|
|
|
|
$ |
194,842 |
|
|
|
|||||||||
Interest rate spread |
|
|
|
|
2.14 |
% |
|
|
|
|
|
2.15 |
% |
|
|
|
|
|
2.13 |
% |
||||||||||||
Net interest margin |
|
|
|
|
2.37 |
% |
|
|
|
|
|
2.39 |
% |
|
|
|
|
|
2.39 |
% |
||||||||||||
| ______________ | ||
(1) |
On a tax-equivalent basis where applicable |
|
(2) |
Annualized |
|
(3) |
At fair value except for securities held to maturity |
|
BANKUNITED, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
AVERAGE BALANCES AND YIELDS |
|||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
Six Months Ended June 30, |
||||||||||||||||||||
|
2021 |
|
2020 |
||||||||||||||||||
|
Average Balance |
|
Interest (1) |
|
Yield/ Rate (1)(2) |
|
Average Balance |
|
Interest (1) |
|
Yield/ Rate (1)(2) |
||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
$ |
23,271,410 |
|
|
$ |
414,761 |
|
|
3.58 |
% |
|
$ |
23,192,374 |
|
|
$ |
455,799 |
|
|
3.94 |
% |
Investment securities (3) |
9,456,929 |
|
|
77,525 |
|
|
1.64 |
% |
|
8,216,433 |
|
|
108,635 |
|
|
2.64 |
% |
||||
Other interest earning assets |
1,222,456 |
|
|
3,200 |
|
|
0.53 |
% |
|
706,238 |
|
|
6,628 |
|
|
1.89 |
% |
||||
Total interest earning assets |
33,950,795 |
|
|
495,486 |
|
|
2.93 |
% |
|
32,115,045 |
|
|
571,062 |
|
|
3.57 |
% |
||||
Allowance for credit losses |
(234,686) |
|
|
|
|
|
|
(196,619) |
|
|
|
|
|
||||||||
Non-interest earning assets |
1,728,449 |
|
|
|
|
|
|
1,863,074 |
|
|
|
|
|
||||||||
Total assets |
$ |
35,444,558 |
|
|
|
|
|
|
$ |
33,781,500 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing demand deposits |
$ |
3,006,760 |
|
|
5,368 |
|
|
0.36 |
% |
|
$ |
2,311,086 |
|
|
11,681 |
|
|
1.02 |
% |
||
Savings and money market deposits |
13,169,195 |
|
|
23,434 |
|
|
0.36 |
% |
|
10,431,256 |
|
|
55,203 |
|
|
1.06 |
% |
||||
Time deposits |
3,853,057 |
|
|
10,890 |
|
|
0.57 |
% |
|
7,303,083 |
|
|
66,125 |
|
|
1.82 |
% |
||||
Total interest bearing deposits |
20,029,012 |
|
|
39,692 |
|
|
0.40 |
% |
|
20,045,425 |
|
|
133,009 |
|
|
1.33 |
% |
||||
Federal funds purchased |
3,978 |
|
|
2 |
|
|
0.10 |
% |
|
106,951 |
|
|
399 |
|
|
0.75 |
% |
||||
FHLB and PPPLF borrowings |
2,972,770 |
|
|
34,480 |
|
|
2.34 |
% |
|
4,688,102 |
|
|
46,138 |
|
|
1.98 |
% |
||||
Notes and other borrowings |
722,028 |
|
|
18,505 |
|
|
5.13 |
% |
|
461,188 |
|
|
11,458 |
|
|
4.97 |
% |
||||
Total interest bearing liabilities |
23,727,788 |
|
|
92,679 |
|
|
0.79 |
% |
|
25,301,666 |
|
|
191,004 |
|
|
1.52 |
% |
||||
Non-interest bearing demand deposits |
7,829,422 |
|
|
|
|
|
|
4,840,781 |
|
|
|
|
|
||||||||
Other non-interest bearing liabilities |
799,297 |
|
|
|
|
|
|
784,770 |
|
|
|
|
|
||||||||
Total liabilities |
32,356,507 |
|
|
|
|
|
|
30,927,217 |
|
|
|
|
|
||||||||
Stockholders' equity |
3,088,051 |
|
|
|
|
|
|
2,854,283 |
|
|
|
|
|
||||||||
Total liabilities and stockholders' equity |
$ |
35,444,558 |
|
|
|
|
|
|
$ |
33,781,500 |
|
|
|
|
|
||||||
Net interest income |
|
|
$ |
402,807 |
|
|
|
|
|
|
$ |
380,058 |
|
|
|
||||||
Interest rate spread |
|
|
|
|
2.14 |
% |
|
|
|
|
|
2.05 |
% |
||||||||
Net interest margin |
|
|
|
|
2.38 |
% |
|
|
|
|
|
2.37 |
% |
||||||||
| ______________ | ||
(1) |
On a tax-equivalent basis where applicable |
|
(2) |
Annualized |
|
(3) |
At fair value except for securities held to maturity |
|
BANKUNITED, INC. AND SUBSIDIARIES |
|||||||||||||||
EARNINGS PER COMMON SHARE |
|||||||||||||||
(In thousands except share and per share amounts) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
103,974 |
|
|
$ |
76,508 |
|
|
$ |
202,788 |
|
|
$ |
45,557 |
|
Distributed and undistributed earnings allocated to participating securities |
(1,338) |
|
|
(3,353) |
|
|
(2,589) |
|
|
(1,939) |
|
||||
Income allocated to common stockholders for basic earnings per common share |
$ |
102,636 |
|
|
$ |
73,155 |
|
|
$ |
200,199 |
|
|
$ |
43,618 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
93,245,282 |
|
|
92,409,949 |
|
|
93,160,962 |
|
|
93,177,243 |
|
||||
Less average unvested stock awards |
(1,241,381) |
|
|
(1,207,798) |
|
|
(1,223,555) |
|
|
(1,154,589) |
|
||||
Weighted average shares for basic earnings per common share |
92,003,901 |
|
|
91,202,151 |
|
|
91,937,407 |
|
|
92,022,654 |
|
||||
Basic earnings per common share |
$ |
1.12 |
|
|
$ |
0.80 |
|
|
$ |
2.18 |
|
|
$ |
0.47 |
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Income allocated to common stockholders for basic earnings per common share |
$ |
102,636 |
|
|
$ |
73,155 |
|
|
$ |
200,199 |
|
|
$ |
43,618 |
|
Adjustment for earnings reallocated from participating securities |
2 |
|
|
— |
|
|
3 |
|
|
— |
|
||||
Income used in calculating diluted earnings per common share |
$ |
102,638 |
|
|
$ |
73,155 |
|
|
$ |
200,202 |
|
|
$ |
43,618 |
|
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic earnings per common share |
92,003,901 |
|
|
91,202,151 |
|
|
91,937,407 |
|
|
92,022,654 |
|
||||
Dilutive effect of stock options and certain shared-based awards |
181,061 |
|
|
705 |
|
|
137,542 |
|
|
126,858 |
|
||||
Weighted average shares for diluted earnings per common share |
92,184,962 |
|
|
91,202,856 |
|
|
92,074,949 |
|
|
92,149,512 |
|
||||
Diluted earnings per common share |
$ |
1.11 |
|
|
$ |
0.80 |
|
|
$ |
2.17 |
|
|
$ |
0.47 |
|
BANKUNITED, INC. AND SUBSIDIARIES |
|||||||||||
SELECTED RATIOS |
|||||||||||
|
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Financial ratios (4) |
|
|
|
|
|
|
|
||||
Return on average assets |
1.17 |
% |
|
0.90 |
% |
|
1.15 |
% |
|
0.27 |
% |
Return on average stockholders’ equity |
13.3 |
% |
|
11.6 |
% |
|
13.2 |
% |
|
3.2 |
% |
Net interest margin (3) |
2.37 |
% |
|
2.39 |
% |
|
2.38 |
% |
|
2.37 |
% |
|
June 30, 2021 |
|
December 31, 2020 |
||
Asset quality ratios |
|
|
|
||
Non-performing loans to total loans (1)(5) |
1.28 |
% |
|
1.02 |
% |
Non-performing assets to total assets (2)(5) |
0.83 |
% |
|
0.71 |
% |
Allowance for credit losses to total loans |
0.77 |
% |
|
1.08 |
% |
Allowance for credit losses to non-performing loans (1)(5) |
60.02 |
% |
|
105.26 |
% |
Net charge-offs to average loans (4) |
0.24 |
% |
|
0.26 |
% |
| ______________ | ||
(1)
|
|
We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. |
(2) |
Non-performing assets include non-performing loans, OREO and other repossessed assets. |
|
(3) |
|
On a tax-equivalent basis. |
(4) |
|
Annualized for the three and six month periods. |
(5) |
|
Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling |
|
June 30, 2021 |
|
December 31, 2020 |
|
Required to be Considered Well Capitalized |
|||||||||
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
BankUnited, Inc. |
|
BankUnited, N.A. |
|
||||||
Capital ratios |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage |
8.8 |
% |
|
9.8 |
% |
|
8.6 |
% |
|
9.5 |
% |
|
5.0 |
% |
Common Equity Tier 1 ("CET1") risk-based capital |
13.5 |
% |
|
15.1 |
% |
|
12.6 |
% |
|
13.9 |
% |
|
6.5 |
% |
Total risk-based capital |
15.4 |
% |
|
15.7 |
% |
|
14.7 |
% |
|
14.8 |
% |
|
10.0 |
% |
On a fully-phased in basis with respect to the adoption of CECL, the Company's and the Bank's CET1 risk-based capital ratios would have been
Non-GAAP Financial Measures
PPNR is a non-GAAP financial measure. Management believes this measure is relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of the volatility of the provision for credit losses resulting from the COVID-19 pandemic. This measure also provides a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measurement of PPNR to the comparable GAAP financial measurement of income before income taxes for the periods indicated (in thousands):
|
Three Months Ended |
|
Six Months Ended June 30, |
||||||||||||||||
|
June 30, 2021 |
|
March 31, 2021 |
|
June 30, 2020 |
|
2021 |
|
2020 |
||||||||||
Income before income taxes (GAAP) |
$ |
140,150 |
|
|
$ |
131,304 |
|
|
$ |
96,904 |
|
|
$ |
271,454 |
|
|
$ |
56,482 |
|
Plus: Provision for (recovery of) credit losses |
(27,534) |
|
|
(27,989) |
|
|
25,414 |
|
|
(55,523) |
|
|
150,842 |
|
|||||
PPNR (non-GAAP) |
$ |
112,616 |
|
|
$ |
103,315 |
|
|
$ |
122,318 |
|
|
$ |
215,931 |
|
|
$ |
207,324 |
|
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 June 30, 2021, March 31, 2021 and December 31, 2020 (dollars in thousands):
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
||||||
Total loans (GAAP) |
$ |
22,885,074 |
|
$ |
23,361,067 |
|
$ |
23,866,042 |
|||
Less: Government insured residential loans |
1,863,723 |
|
1,759,289 |
|
1,419,074 |
||||||
Less: PPP loans |
491,960 |
|
911,951 |
|
781,811 |
||||||
Less: MWL |
1,018,267 |
|
1,145,957 |
|
1,259,408 |
||||||
Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) |
$ |
19,511,124 |
|
$ |
19,543,870 |
|
$ |
20,405,749 |
|||
|
|
|
|
|
|
||||||
ACL |
$ |
175,642 |
|
$ |
220,934 |
|
$ |
257,323 |
|||
|
|
|
|
|
|
||||||
ACL to total loans (GAAP) |
0.77 |
% |
|
0.95 |
% |
|
1.08 |
% |
|||
|
|
|
|
|
|
||||||
ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) |
0.90 |
% |
|
1.13 |
% |
|
1.26 |
% |
|||
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):
|
June 30, 2021 |
|
December 31, 2020 |
||||
Total stockholders’ equity (GAAP) |
$ |
3,161,543 |
|
|
$ |
2,983,012 |
|
Less: goodwill |
77,637 |
|
|
77,637 |
|
||
Tangible stockholders’ equity (non-GAAP) |
$ |
3,083,906 |
|
|
$ |
2,905,375 |
|
|
|
|
|
||||
Common shares issued and outstanding |
93,238,553 |
|
|
93,067,500 |
|
||
|
|
|
|
||||
Book value per common share (GAAP) |
$ |
33.91 |
|
|
$ |
32.05 |
|
|
|
|
|
||||
Tangible book value per common share (non-GAAP) |
$ |
33.08 |
|
|
$ |
31.22 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005136/en/
FAQ
What were BankUnited's financial results for Q2 2021?
How did BankUnited's net income change compared to previous quarters?
What is the total deposit growth for BankUnited in Q2 2021?
What was the status of criticized loans for BankUnited in Q2 2021?
What share repurchase program did BankUnited announce?
