BankUnited, Inc. Reports Third Quarter 2023 Results
- Margin, funding mix, asset mix, capital, and liquidity all improved
- Non-brokered deposits grew by $484 million
- Total deposits grew by $274 million
- Residential loans declined by $225 million
- Core C&I and commercial real estate portfolios grew by a net $147 million
- FHLB advances declined by $810 million
- 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 were 9.8% and 11.5%, respectively
- The provision for credit losses was $33.0 million
- NPAs remained low at $140.5 million
- Total loans declined by $274 million
- The cost of total deposits increased to 2.74%
- The yield on average interest earning assets increased to 5.52%
- Commercial real estate loans totaled 23.5% of loans
- Book value and tangible book value per common share were $33.92 and $32.88, respectively
- Net income decreased from $58.0 million in the previous quarter
- The provision for credit losses increased
- NPAs increased to $140.5 million
- Residential loans declined by $225 million
- The cost of total deposits increased
"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
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% from2.47% for the immediately preceding quarter.
-
Non-brokered deposits grew by
$484 million $274 million
-
Non-interest bearing deposits grew by
$52 million 28% of total deposits at both September 30, 2023 and June 30, 2023.
-
Residential loans declined by
$225 million $257 million $147 million
-
FHLB advances declined by
$810 million
-
The loans to deposits ratio declined to
93.3% at September 30, 2023, from95.3% at June 30, 2023.
-
We have maintained ample liquidity. Total same day available liquidity was
$14.4 billion 161% and an estimated66% 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 and13.2% at the Bank. Pro-forma CET1 at the holding company and the Bank, including accumulated other comprehensive income, were9.8% and11.5% , respectively at September 30, 2023.
-
The net interest margin, calculated on a tax-equivalent basis, expanded this quarter to
-
For the quarter ended September 30, 2023, the provision for credit losses was
$33.0 million 0.80% , at September 30, 2023 from0.68% 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 $120.8 million 0.40% , including0.11% related to the guaranteed portion of non-performing SBA loans. At June 30, 2023 the NPA ratio was0.34% , including0.10% related to the guaranteed portion of non-performing SBA loans.
-
Total loans declined by
$274 million $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 from2.46% for the immediately preceding quarter. This increase of0.28% was smaller than the0.41% 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 to5.52% for the quarter ended September 30, 2023 from5.30% for the immediately preceding quarter.
-
Commercial real estate exposure is modest. Commercial real estate loans totaled
23.5% of loans at September 30, 2023, representing168% of the Bank's total risk based capital. At September 30, 2023, the weighted average LTV of the CRE portfolio was55.8% 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 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 $32.88 $33.94 $32.90
- 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
Consistent with the current interest rate environment and restrictive monetary policy, the cost of total deposits increased to
FHLB advances declined by
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
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
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
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
The Company’s net interest margin, calculated on a tax-equivalent basis, increased by
-
The tax-equivalent yield on loans increased to
5.54% for the quarter ended September 30, 2023, from5.35% 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, from5.19% 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 from3.39% 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, from4.59% 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
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,
|
|
June 30,
|
|
December 31,
|
||||||
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 |
|
8,886,484 |
|
|
|
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 |
|
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 |
|
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
Required to be Considered Well Capitalized |
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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
Source: BankUnited, Inc.
FAQ
What were the financial results for BankUnited in Q3 2023?
What were the highlights of BankUnited's performance in Q3 2023?
How did deposits and funding change in Q3 2023?
What happened to residential loans in Q3 2023?
What was the impact of the provision for credit losses in Q3 2023?
What was the cost of total deposits in Q3 2023?
