BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced
financial results for the quarter ended June 30, 2024.
"This was an outstanding quarter. Margin expanded, the cost of
deposits declined, non-interest bearing deposits grew by over $800
million and we saw good growth in the core commercial loan
portfolio segments," said Rajinder Singh, Chairman, President and
Chief Executive Officer.
For the quarter ended June 30, 2024, the Company reported net
income of $53.7 million, or $0.72 per diluted share, compared to
$48.0 million, or $0.64 per diluted share, for the immediately
preceding quarter ended March 31, 2024 and $58.0 million, or $0.78
per diluted share, for the quarter ended June 30, 2023. For the six
months ended June 30, 2024, the Company reported net income of
$101.7 million, or $1.36 per diluted share compared to $110.9
million, or $1.48 per diluted share for the six months ended June
30, 2023.
Quarterly Highlights
We continued to execute on our strategic priorities this
quarter:
- The net interest margin, calculated on a tax-equivalent basis,
expanded by 0.15%, to 2.72% for the quarter ended June 30, 2024
from 2.57% for the immediately preceding quarter.
- The average cost of total deposits declined by 0.09% to 3.09%
for the quarter ended June 30, 2024 from 3.18% for the quarter
ended March 31, 2024. The spot APY of total deposits declined to
3.09% at June 30, 2024 from 3.17% at March 31, 2024. The spot APY
of interest bearing deposits was stable at 4.29% at both June 30,
2024 and March 31, 2024.
- Non-brokered deposits grew by $1.3 billion for the quarter
ended June 30, 2024 while total deposits grew by $736 million.
Non-interest bearing demand deposits grew by $826 million, to 29%
of total deposits at June 30, 2024, up from 27% at March 31, 2024.
Average non-interest bearing demand deposits grew by $888 million
for the quarter. For the first six months of 2024, non-interest
bearing demand deposits grew by $1.2 billion.
- Wholesale funding continued to decline; in total, FHLB advances
and brokered deposits were down by $1.2 billion for the quarter
ended June 30, 2024.
- Total loans grew by $402 million for the quarter ended June 30,
2024. The core C&I and commercial real estate portfolios grew
by $589 million and mortgage warehouse grew by $83 million.
Consistent with our strategic objectives, the residential loan
portfolio declined by $212 million; franchise, equipment and
municipal finance declined by a total of $57 million.
- The loan to deposit ratio declined to 88.7% at June 30, 2024,
from 89.6% at March 31, 2024.
- Credit trends remain largely favorable although we are seeing
some expected normalization. The annualized net charge-off ratio
for the six months ended June 30, 2024 was 0.12%. The NPA ratio at
June 30, 2024 was 0.50%, including 0.11% related to the guaranteed
portion of non-accrual SBA loans, compared to 0.34%, including
0.11% related to the guaranteed portion of non-accrual SBA loans at
March 31, 2024. The NPA ratio remains below pre-pandemic
levels.
- The ratio of the ACL to total loans increased to 0.92% at June
30, 2024; the ratio of the ACL to non-performing loans was 130.12%.
The ACL to loans ratio for commercial portfolio sub-segments
including C&I, CRE, franchise finance and equipment finance was
1.42% at June 30, 2024 and the ACL to loans ratio for CRE office
loans was 2.47%.
- Our commercial real estate exposure is modest, totaling 24% of
loans and 165% of the Bank's total risk based capital at June 30,
2024. By comparison, based on call report data as of March 31, 2024
(the most recent date available) for banks with between $10 billion
and $100 billion in assets, the median level of CRE to total loans
was 35% and the median level of CRE to total risk based capital was
222%.
- At June 30, 2024, the weighted average LTV of the CRE portfolio
was 56.0%, the weighted average DSCR was 1.77, 56% of the portfolio
was collateralized by properties located in Florida and 27% was
collateralized by properties located in the New York tri-state
area. For the office sub-segment, the weighted average LTV was
65.8%, the weighted average DSCR was 1.59, 58% was collateralized
by properties in Florida, substantially all of which was suburban,
and 24% was collateralized by properties located in the New York
tri-state area.
- Liquidity remains ample. Total same day available liquidity was
$14.9 billion, the available liquidity to uninsured,
uncollateralized deposits ratio was 139% and an estimated 61% of
our deposits were insured or collateralized at June 30, 2024.
- Our capital position is robust. At June 30, 2024, CET1 was
11.6% at a consolidated level. Pro-forma CET1, including
accumulated other comprehensive income, was 10.4% at June 30, 2024.
The ratio of tangible common equity to tangible assets increased to
7.4% at June 30, 2024.
- The net unrealized pre-tax loss on the available for sale
("AFS") securities portfolio continued to improve, declining by $36
million, to 5% of amortized cost, for the quarter ended June 30,
2024. The duration of our AFS securities portfolio remained short,
at 1.82 as of June 30, 2024. Held to maturity securities were not
significant.
- Book value and tangible book value per common share continued
to grow, to $36.11 and $35.07, respectively, at June 30, 2024,
compared to $35.31 and $34.27, respectively, at March 31, 2024, and
$33.94 and $32.90, respectively, one year ago.
Loans
Loan portfolio composition at the dates indicated follows
(dollars in thousands):
June 30, 2024
March 31, 2024
December 31, 2023
Core C&I and CRE sub-segments:
Non-owner occupied commercial real
estate
$
5,367,663
21.8
%
$
5,309,126
21.9
%
$
5,323,241
21.6
%
Construction and land
584,833
2.4
%
529,645
2.2
%
495,992
2.0
%
Owner occupied commercial real estate
1,966,809
8.0
%
1,916,651
7.9
%
1,935,743
7.9
%
Commercial and industrial
7,170,622
29.1
%
6,745,622
27.9
%
6,971,981
28.3
%
15,089,927
61.3
%
14,501,044
59.9
%
14,726,957
59.8
%
Franchise and equipment finance
307,442
1.2
%
347,103
1.4
%
380,347
1.5
%
Pinnacle - municipal finance
847,234
3.4
%
864,796
3.6
%
884,690
3.6
%
Mortgage warehouse lending ("MWL")
539,159
2.2
%
456,385
1.9
%
432,663
1.8
%
Residential
7,844,722
31.9
%
8,056,972
33.2
%
8,209,027
33.3
%
$
24,628,484
100.0
%
$
24,226,300
100.0
%
$
24,633,684
100.0
%
For the quarter ended June 30, 2024, total loans grew by $402
million. The core C&I and CRE portfolio sub-segments grew by
$589 million and MWL grew by $83 million. Consistent with our
balance sheet strategy, residential loans declined by $212 million;
franchise, equipment, and municipal finance declined by an
aggregate $57 million.
Asset Quality and the
ACL
The following table presents the ACL and related ACL coverage
ratios at the dates indicated as well as net charge-off rates for
the periods ended June 30, 2024, March 31, 2024 and December 31,
2023 (dollars in thousands):
ACL
ACL to Total Loans
Commercial ACL to Commercial
Loans(2)
ACL to Non-Performing
Loans
Net Charge-offs to Average
Loans (1)
December 31, 2023
$
202,689
0.82
%
1.29
%
159.54
%
0.09
%
March 31, 2024
$
217,556
0.90
%
1.42
%
187.92
%
0.02
%
June 30, 2024
$
225,698
0.92
%
1.42
%
130.12
%
0.12
___________
(1)
Annualized for the three months ended
March 31, 2024 and the six months ended June 30, 2024.
(2)
For purposes of this ratio, commercial
loans includes the core C&I and CRE sub-segments as presented
in the table above as well as franchise and equipment finance. Due
to their unique risk profiles, MWL and municipal finance are
excluded from this ratio.
The ACL at June 30, 2024 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 June
30, 2024, the provision for credit losses, including both funded
and unfunded loan commitments, was $19.5 million, compared to $15.3
million for the immediately preceding quarter ended March 31, 2024.
Significant factors impacting the provision for credit losses for
the quarter ended June 30, 2024 were new loan production, risk
rating migration and changes in portfolio characteristics and an
increase in certain specific reserves.
The following table summarizes the activity in the ACL for the
periods indicated (in thousands):
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Beginning balance
$
217,556
$
202,689
$
158,792
$
202,689
$
147,946
Impact of adoption of new accounting
pronouncement (ASU 2022-02)
N/A
N/A
N/A
N/A
(1,794
)
Balance after impact of adoption of ASU
2022-02
217,556
202,689
158,792
202,689
146,152
Provision
21,823
15,805
14,195
37,628
31,790
Net charge-offs
(13,681
)
(938
)
(6,154
)
(14,619
)
(11,109
)
Ending balance
$
225,698
$
217,556
$
166,833
$
225,698
$
166,833
The following table presents criticized and classified
commercial loans at the dates indicated (in thousands):
June 30, 2024
March 31, 2024
December 31, 2023
CRE
Total Commercial
CRE
Total Commercial
CRE
Total Commercial
Special mention
$
138,403
$
265,940
$
139,980
$
357,800
$
97,552
$
319,905
Substandard - accruing
597,888
946,832
577,418
966,129
390,724
711,266
Substandard - non-accruing
54,088
131,193
12,258
83,511
13,727
86,903
Doubtful
8,301
25,258
—
13,822
—
19,035
Total
$
798,680
$
1,369,223
$
729,656
$
1,421,262
$
502,003
$
1,137,109
Total criticized and classified commercial loans declined by $52
million for the quarter ended June 30, 2024. Criticized and
classified CRE loans increased by $69 million, the majority of this
in the office category, more than offset by declines of $121
million in other commercial categories. As expected in the current
environment, there has been some further risk rating migration
within the criticized and classified population, primarily within
the CRE office category. Rent abatement periods, delays in
completing build-out of leased space and in some cases lower
occupancy levels contributed to risk rating migration in the office
portfolio.
NPAs remain below pre-pandemic levels, although increasing to
$176.0 million at June 30, 2024 from $118.9 million at March 31,
2024. Non-performing loans totaled $173.5 million or 0.70% of total
loans at June 30, 2024, compared to $115.8 million or 0.48% of
total loans at March 31, 2024. Non-performing loans included $39.0
million and $40.0 million of the guaranteed portion of SBA loans on
non-accrual status, representing 0.16% of total loans at both June
30, 2024 and March 31, 2024. The $59 million increase in
non-performing loans for the quarter ended June 30, 2024 included
$50 million of office exposure.
Net Interest Income
Net interest income for the quarter ended June 30, 2024 was
$226.0 million, compared to $214.9 million for the immediately
preceding quarter ended March 31, 2024. Interest income increased
by $1.8 million for the quarter ended June 30, 2024 compared to the
immediately preceding quarter, while interest expense decreased by
$9.3 million.
The Company’s net interest margin, calculated on a
tax-equivalent basis, increased by 0.15% to 2.72% for the quarter
ended June 30, 2024, from 2.57% for the immediately preceding
quarter ended March 31, 2024. Factors impacting the net interest
margin for the quarter ended June 30, 2024 were:
- Average non-interest bearing demand deposits increased by $888
million, to 27.5% of average total deposits for the quarter ended
June 30, 2024 from 24.7% for the quarter ended March 31, 2024,
positively impacting the margin.
- The tax-equivalent yield on loans increased to 5.85% for the
quarter ended June 30, 2024, from 5.78% for the quarter ended March
31, 2024. This increase reflects the origination of new loans at
higher rates, paydowns of lower rate loans and balance sheet
repositioning.
- The average cost of interest bearing deposits increased this
quarter, but at a declining rate, to 4.26% for the quarter ended
June 30, 2024 from 4.21% for the quarter ended March 31, 2024.
- The average rate paid on FHLB advances increased to 4.28% for
the quarter ended June 30, 2024 from 4.18% for the quarter ended
March 31, 2024, reflecting maturities of cash flow hedges.
Non-interest income
Non-interest income totaled $24.2 million for the quarter ended
June 30, 2024, compared to $26.9 million for the quarter ended
March 31, 2024. The $5.8 million decline in lease financing income
quarter over quarter was attributable to both lower residual income
and the lower balance of operating lease equipment. There was a
corresponding decline in depreciation of operating lease equipment.
The $3.9 million increase in "other non-interest income" reflected
increases in revenue from our customer derivative business and
higher loan related and syndication fees.
Earnings Conference Call and
Presentation
A conference call to discuss quarterly results will be held at
9:00 a.m. ET on Thursday, July 18, 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/BI3a7df9cdebad462ba05970d7dc7dba95.
For those unable to join the live event, an archived webcast will
be available on the Investor Relations page at https://ir.bankunited.com approximately two hours
following the live webcast.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $35.4 billion at June 30,
2024, is the bank holding company of BankUnited, N.A., a national
bank headquartered in Miami Lakes, Florida that provides a full
range of banking and related services to individual and corporate
customers through banking centers located in the state of Florida,
the New York metropolitan area and Dallas, Texas, and a
comprehensive suite of wholesale products to customers through an
Atlanta office focused on the Southeast region. BankUnited also
offers certain commercial lending and deposit products through
national platforms. For additional information, call (877) 779-2265
or visit www.BankUnited.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that reflect the Company’s current views with respect to, among
other things, future events and financial performance. The Company
generally identifies forward-looking statements by terminology such
as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “could,” “should,” “seeks,” “approximately,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,”
"forecasts" or the negative version of those words or other
comparable words. Any forward-looking statements contained in this
press release are based on the historical performance of the
Company and its subsidiaries or on the Company’s current plans,
estimates and expectations. The inclusion of this forward-looking
information should not be regarded as a representation by the
Company that the future plans, estimates or expectations
contemplated by the Company will be achieved. Such forward-looking
statements are subject to various risks and uncertainties and
assumptions, including (without limitation) those relating to the
Company’s operations, financial results, financial condition,
business prospects, growth strategy and liquidity, including as
impacted by external circumstances outside the Company's direct
control, such as but not limited to adverse events or conditions
impacting the financial services industry. If one or more of these
or other risks or uncertainties materialize, or if the Company’s
underlying assumptions prove to be incorrect, the Company’s actual
results may vary materially from those indicated in these
statements. These factors should not be construed as exhaustive.
The Company does not undertake any obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise. A number of
important factors could cause actual results to differ materially
from those indicated by the forward-looking statements. Information
on these factors can be found in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023, 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, 2024
March 31, 2024
December 31,
2023
ASSETS
Cash and due from banks:
Non-interest bearing
$ 12,631
$ 13,773
$ 14,945
Interest bearing
420,821
407,443
573,338
Cash and cash equivalents
433,452
421,216
588,283
Investment securities (including
securities reported at fair value of $8,936,449, $8,914,959 and
$8,867,354)
8,946,449
8,924,959
8,877,354
Non-marketable equity securities
223,159
252,609
310,084
Loans
24,628,484
24,226,300
24,633,684
Allowance for credit losses
(225,698)
(217,556)
(202,689)
Loans, net
24,402,786
24,008,744
24,430,995
Bank owned life insurance
297,827
295,970
318,459
Operating lease equipment, net
266,815
329,025
371,909
Goodwill
77,637
77,637
77,637
Other assets
779,781
795,494
786,886
Total assets
$ 35,427,906
$ 35,105,654
$ 35,761,607
LIABILITIES AND STOCKHOLDERS’
EQUITY
Liabilities:
Demand deposits:
Non-interest bearing
$ 8,065,209
$ 7,239,604
$ 6,835,236
Interest bearing
3,771,793
3,549,141
3,403,539
Savings and money market
11,463,211
11,122,916
11,135,708
Time
4,463,394
5,115,703
5,163,995
Total deposits
27,763,607
27,027,364
26,538,478
FHLB advances
3,285,000
3,905,000
5,115,000
Notes and other borrowings
708,835
708,978
708,973
Other liabilities
971,116
823,920
821,235
Total liabilities
32,728,558
32,465,262
33,183,686
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share,
400,000,000 shares authorized; 74,758,609, 74,772,706 and
74,372,505 shares issued and outstanding
748
748
744
Paid-in capital
290,719
286,169
283,642
Retained earnings
2,709,503
2,677,403
2,650,956
Accumulated other comprehensive loss
(301,622)
(323,928)
(357,421)
Total stockholders' equity
2,699,348
2,640,392
2,577,921
Total liabilities and stockholders'
equity
$35,427,906
$ 35,105,654
$ 35,761,607
BANKUNITED, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME - UNAUDITED
(In thousands, except per
share data)
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Interest income:
Loans
$
350,604
$
347,257
$
326,153
$
697,861
$
634,948
Investment securities
123,708
124,179
120,604
247,887
239,362
Other
8,986
10,038
16,664
19,024
29,527
Total interest income
483,298
481,474
463,421
964,772
903,837
Interest expense:
Deposits
208,091
209,998
156,868
418,089
290,498
Borrowings
49,185
56,619
92,675
105,804
171,587
Total interest expense
257,276
266,617
249,543
523,893
462,085
Net interest income before provision for
credit losses
226,022
214,857
213,878
440,879
441,752
Provision for credit losses
19,538
15,285
15,517
34,823
35,305
Net interest income after provision for
credit losses
206,484
199,572
198,361
406,056
406,447
Non-interest income:
Deposit service charges and fees
4,909
5,313
5,182
10,222
10,515
Gain (loss) on investment securities,
net
421
775
993
1,196
(11,556
)
Lease financing
5,640
11,440
12,519
17,080
25,628
Other non-interest income
13,215
9,349
6,793
22,564
17,435
Total non-interest income
24,185
26,877
25,487
51,062
42,022
Non-interest expense:
Employee compensation and benefits
75,588
75,920
67,414
151,508
138,465
Occupancy and equipment
10,973
10,569
11,043
21,542
21,845
Deposit insurance expense
8,530
13,530
7,597
22,060
15,504
Professional fees
4,497
2,510
3,518
7,007
6,436
Technology
20,567
20,315
20,437
40,882
42,163
Depreciation of operating lease
equipment
7,896
9,213
11,232
17,109
22,753
Other non-interest expense
29,655
27,183
23,977
56,838
50,832
Total non-interest expense
157,706
159,240
145,218
316,946
297,998
Income before income taxes
72,963
67,209
78,630
140,172
150,471
Provision for income taxes
19,230
19,229
20,634
38,459
39,593
Net income
$
53,733
$
47,980
$
57,996
$
101,713
$
110,878
Earnings per common share, basic
$
0.72
$
0.64
$
0.78
$
1.36
$
1.49
Earnings per common share, diluted
$
0.72
$
0.64
$
0.78
$
1.36
$
1.48
BANKUNITED, INC. AND
SUBSIDIARIES
AVERAGE BALANCES AND
YIELDS
(Dollars in thousands)
Three Months Ended June
30,
Three Months Ended March
31,
Three Months Ended June
30,
2024
2024
2023
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
$
24,290,169
$
353,707
5.85
%
$
24,337,440
$
350,441
5.78
%
$
24,680,919
$
329,494
5.35
%
Investment securities (3)
8,894,517
124,572
5.60
%
8,952,453
125,025
5.59
%
9,369,019
121,520
5.19
%
Other interest earning assets
711,586
8,986
5.08
%
763,460
10,038
5.29
%
1,323,025
16,664
5.05
%
Total interest earning assets
33,896,272
487,265
5.77
%
34,053,353
485,504
5.72
%
35,372,963
467,678
5.30
%
Allowance for credit losses
(225,161
)
(206,747
)
(162,463
)
Non-interest earning assets
1,571,649
1,589,333
1,744,693
Total assets
$
35,242,760
$
35,435,939
$
36,955,193
Liabilities and Stockholders'
Equity:
Interest bearing liabilities:
Interest bearing demand deposits
$
3,742,071
$
35,249
3.79
%
$
3,584,363
$
33,507
3.76
%
$
2,772,839
$
18,417
2.66
%
Savings and money market deposits
11,176,000
118,945
4.28
%
11,234,259
118,639
4.25
%
10,285,494
88,892
3.47
%
Time deposits
4,750,640
53,897
4.56
%
5,231,178
57,852
4.45
%
5,494,631
49,559
3.62
%
Total interest bearing deposits
19,668,711
208,091
4.26
%
20,049,800
209,998
4.21
%
18,552,964
156,868
3.39
%
FHLB advances
3,764,286
40,032
4.28
%
4,570,220
47,496
4.18
%
7,288,187
83,429
4.59
%
Notes and other borrowings
711,167
9,153
5.15
%
709,017
9,123
5.15
%
719,368
9,246
5.14
%
Total interest bearing liabilities
24,144,164
257,276
4.28
%
25,329,037
266,617
4.23
%
26,560,519
249,543
3.77
%
Non-interest bearing demand deposits
7,448,633
6,560,926
7,067,053
Other non-interest bearing liabilities
960,691
906,266
798,279
Total liabilities
32,553,488
32,796,229
34,425,851
Stockholders' equity
2,689,272
2,639,710
2,529,342
Total liabilities and stockholders'
equity
$
35,242,760
$
35,435,939
$
36,955,193
Net interest income
$
229,989
$
218,887
$
218,135
Interest rate spread
1.49
%
1.49
%
1.53
%
Net interest margin
2.72
%
2.57
%
2.47
%
_____________
(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,
2024
2023
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Average
Balance
Interest (1)
Yield/
Rate (1)(2)
Assets:
Interest earning assets:
Loans
$
24,313,806
$
704,149
5.82
%
$
24,702,487
$
641,617
5.22
%
Investment securities (3)
8,923,485
249,596
5.59
%
9,519,928
241,187
5.07
%
Other interest earning assets
737,523
19,024
5.19
%
1,182,077
29,527
5.04
%
Total interest earning assets
33,974,814
972,769
5.74
%
35,404,492
912,331
5.18
%
Allowance for credit losses
(215,954
)
(156,798
)
Non-interest earning assets
1,580,491
1,768,714
Total assets
$
35,339,351
$
37,016,408
Liabilities and Stockholders'
Equity:
Interest bearing liabilities:
Interest bearing demand deposits
$
3,663,217
$
68,756
3.77
%
$
2,570,422
$
29,291
2.30
%
Savings and money market deposits
11,205,130
237,584
4.26
%
11,169,671
180,287
3.25
%
Time deposits
4,990,909
111,749
4.50
%
5,013,230
80,920
3.26
%
Total interest bearing deposits
19,859,256
418,089
4.23
%
18,753,323
290,498
3.12
%
Federal funds purchased
—
—
—
%
70,150
1,582
4.51
%
FHLB advances
4,167,253
87,528
4.22
%
6,878,867
151,467
4.44
%
Notes and other borrowings
710,092
18,276
5.15
%
721,376
18,538
5.14
%
Total interest bearing liabilities
24,736,601
523,893
4.26
%
26,423,716
462,085
3.53
%
Non-interest bearing demand deposits
7,004,780
7,261,557
Other non-interest bearing liabilities
933,479
809,785
Total liabilities
32,674,860
34,495,058
Stockholders' equity
2,664,491
2,521,350
Total liabilities and stockholders'
equity
$
35,339,351
$
37,016,408
Net interest income
$
448,876
$
450,246
Interest rate spread
1.48
%
1.65
%
Net interest margin
2.64
%
2.55
%
_____________
(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
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Basic earnings per common
share:
Numerator:
Net income
$
53,733
$
47,980
$
57,996
$
101,713
$
110,878
Distributed and undistributed earnings
allocated to participating securities
(748
)
(680
)
(881
)
(1,429
)
(1,679
)
Income allocated to common stockholders
for basic earnings per common share
$
52,985
$
47,300
$
57,115
$
100,284
$
109,199
Denominator:
Weighted average common shares
outstanding
74,762,498
74,509,107
74,424,631
74,635,803
74,588,904
Less average unvested stock awards
(1,110,233
)
(1,127,838
)
(1,183,039
)
(1,119,035
)
(1,188,430
)
Weighted average shares for basic earnings
per common share
73,652,265
73,381,269
73,241,592
73,516,768
73,400,474
Basic earnings per common share
$
0.72
$
0.64
$
0.78
$
1.36
$
1.49
Diluted earnings per common
share:
Numerator:
Income allocated to common stockholders
for basic earnings per common share
$
52,985
$
47,300
$
57,115
$
100,284
$
109,199
Adjustment for earnings reallocated from
participating securities
2
1
1
4
5
Income used in calculating diluted
earnings per common share
$
52,987
$
47,301
$
57,116
$
100,288
$
109,204
Denominator:
Weighted average shares for basic earnings
per common share
73,652,265
73,381,269
73,241,592
73,516,768
73,400,474
Dilutive effect of certain share-based
awards
365,988
255,824
179,318
310,906
312,708
Weighted average shares for diluted
earnings per common share
74,018,253
73,637,093
73,420,910
73,827,674
73,713,182
Diluted earnings per common
share
$
0.72
$
0.64
$
0.78
$
1.36
$
1.48
BANKUNITED, INC. AND
SUBSIDIARIES
SELECTED RATIOS
At or for the Three Months
Ended
At or for the Six Months
Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Financial ratios (4)
Return on average assets
0.61
%
0.54
%
0.63
%
0.58
%
0.60
%
Return on average stockholders’ equity
8.0
%
7.3
%
9.2
%
7.7
%
8.9
%
Net interest margin (3)
2.72
%
2.57
%
2.47
%
2.64
%
2.55
%
Loans to deposits
88.7
%
89.6
%
95.3
%
88.7
%
95.3
%
Tangible book value per common share
$
35.07
$
34.27
$
32.90
$
35.07
$
32.90
June 30, 2024
March 31, 2024
December 31, 2023
Asset quality ratios
Non-performing loans to total loans
(1)(5)
0.70
%
0.48
%
0.52
%
Non-performing assets to total assets
(2)(5)
0.50
%
0.34
%
0.37
%
Allowance for credit losses to total
loans
0.92
%
0.90
%
0.82
%
Allowance for credit losses to total
commercial(6)
1.42
%
1.42
%
1.29
%
Allowance for credit losses to
non-performing loans (1)(5)
130.12
%
187.92
%
159.54
%
Net charge-offs to average loans(4)
0.12
%
0.02
%
0.09
%
_____________
(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 as applicable.
(5)
Non-performing loans and assets include
the guaranteed portion of non-accrual SBA loans totaling $39.0
million or 0.16% of total loans and 0.11% of total assets at June
30, 2024, $40.0 million or 0.16% of total loans and 0.11% of total
assets at March 31, 2024, and $41.8 million or 0.17% of total loans
and 0.12% of total assets at December 31, 2023.
(6)
For purposes of this ratio, commercial
loans includes the C&I and CRE sub-segments, as well as
franchise and equipment finance. Due to their unique risk profiles,
MWL and municipal finance are excluded from this ratio.
June 30, 2024
March 31, 2024
December 31, 2023
Required to be Considered Well
Capitalized
BankUnited, Inc.
BankUnited, N.A.
BankUnited, Inc.
BankUnited, N.A.
BankUnited, Inc.
BankUnited, N.A.
Capital ratios
Tier 1 leverage
8.2 %
9.6 %
8.1 %
9.3 %
7.9 %
9.1 %
5.0 %
Common Equity Tier 1 ("CET1") risk-based
capital
11.6 %
13.5 %
11.6 %
13.4 %
11.4 %
13.1 %
6.5 %
Total risk-based capital
13.6 %
14.4 %
13.7 %
14.3 %
13.4 %
13.9 %
10.0 %
Tangible Common Equity/Tangible Assets
7.4 %
N/A
7.3 %
N/A
7.0 %
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):
June 30, 2024
March 31, 2024
June 30, 2023
Total stockholders’ equity
$
2,699,348
$
2,640,392
$
2,526,310
Less: goodwill and other intangible
assets
77,637
77,637
77,637
Tangible stockholders’ equity
$
2,621,711
$
2,562,755
$
2,448,673
Common shares issued and outstanding
74,758,609
74,772,706
74,429,948
Book value per common share
$
36.11
$
35.31
$
33.94
Tangible book value per common share
$
35.07
$
34.27
$
32.90
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718442866/en/
BankUnited, Inc. Investor Relations: Leslie N. Lunak,
786-313-1698; llunak@bankunited.com
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