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BankUnited, Inc. Reports First Quarter 2023 Results

BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2023.

"While March was a challenging month for the banking industry, BankUnited continued to support its customers and serve their banking needs. Our business is stable, we have strong liquidity and robust capital," said Rajinder Singh, Chairman, President and Chief Executive Officer.

For the quarter ended March 31, 2023, the Company reported net income of $52.9 million, or $0.70 per diluted share, compared to $64.2 million, or $0.82 per diluted share for the immediately preceding quarter ended December 31, 2022 and $67.2 million, or $0.79 per diluted share, for the quarter ended March 31, 2022.

Quarterly Highlights

  • Our liquidity position is strong. At March 31, 2023, the Bank had total same day available liquidity of approximately $9.4 billion. As of April 21, 2023, available liquidity had increased to approximately $12.3 billion. At March 31, 2023, the Bank's ratio of estimated insured and collateralized deposits to total deposits was 62% and its available liquidity to estimated uninsured, uncollateralized deposits ratio was 95%. As of April 21, 2023, the ratio of available liquidity to estimated uninsured, uncollateralized deposits was approximately 128%.
  • The Bank initially experienced deposit outflows at the onset of recent events impacting the banking sector, however, deposit flows quickly stabilized. Total deposits declined by $1.79 billion during the quarter ended March 31, 2023, including non-interest bearing demand deposits declining by $671 million. Deposit outflows over the latter part of March, 2023 were concentrated in a small number of larger institutional depositors. Non-interest bearing demand deposits were 29% of total deposits at both March 31, 2023 and December 31, 2022.
  • Net interest income and the net interest margin for the quarter ended March 31, 2023 were negatively impacted by an increase in the cost of funds which more than offset the increased yield on interest-earning assets. A greater than anticipated decline in average non-interest bearing deposits and an increase in on-balance sheet liquidity led to an increase in higher cost deposits and FHLB advances. The net interest margin, calculated on a tax-equivalent basis, was 2.62% for the quarter ended March 31, 2023, compared to 2.81% for the immediately preceding quarter ended December 31, 2022 and 2.50% for the quarter ended March 31, 2022. Net interest income decreased by $15.2 million, compared to the immediately preceding quarter ended December 31, 2022 and increased by $19.2 million compared to the quarter ended March 31, 2022.
  • In response to the rising interest rate environment, tightening liquidity conditions and recent events impacting the banking sector, the average cost of total deposits rose to 2.05% for the quarter ended March 31, 2023, from 1.42% for the immediately preceding quarter ended December 31, 2022. The yield on average interest earning assets increased to 5.05% for the quarter ended March 31, 2023, from 4.60% for the immediately preceding quarter.
  • For the quarter ended March 31, 2023, the provision for credit losses was $19.8 million compared to provisions of $39.6 million and $7.8 million for the quarters ended December 31, 2022 and March 31, 2022, respectively. The ratio of the ACL to total loans increased to 0.64%, at March 31, 2023 from 0.59% at December 31, 2022.
  • Non-interest income for the quarter ended March 31, 2023 included a $13.3 million net loss on certain preferred equity investments.
  • Total loans was flat quarter-over-quarter, with a $111 million decline in residential offsetting net growth in the commercial segments of $118 million. The core C&I and CRE portfolio segments grew by $144 million.
  • The pre-tax net unrealized loss on investment securities available for sale ("AFS") improved by $100 million during the quarter ended March 31, 2023 to $574 million from $674 million at December 31, 2022. The duration of the AFS portfolio was 1.95 at March 31, 2023. Securities held to maturity totaled only $10 million at March 31, 2023.
  • The Company announced an increase of $0.02 per share in its common stock dividend for the quarter ended March 31, 2023, to $0.27 per common share, reflecting an 8% increase from the previous level of $0.25 per share.
  • During the quarter ended March 31, 2023, the Company repurchased approximately 1.6 million shares of its common stock for an aggregate purchase price of $55.0 million, at a weighted average price of $33.41 per share.
  • CET1 was 10.8% at the holding company and 12.5% at the Bank at March 31, 2023. Pro-forma CET1 at the holding company, including accumulated other comprehensive income, was 9.4%.
  • Book value and tangible book value per common share improved to $33.34 and $32.30, respectively, at March 31, 2023, from $32.19 and $31.16, respectively at December 31, 2022. 

Deposits and Liquidity

Total deposits declined by $1.79 billion during the quarter ended March 31, 2023. Deposits declined by $1.75 billion during the week of March 13, 2023 and then stabilized, increasing by $245 million through the remainder of the quarter. Outflows from a small number of larger institutional clients the week of March 13 drove $1.9 billion of outflows. Deposit flows across the remainder of the core deposit book appeared to be within the range of what we consider to be normal operating activity during this period. The cost of total deposits increased to 2.05% from 1.42% for the immediately preceding quarter, while the cost of interest bearing deposits increased to 2.86% for the quarter ended March 31, 2023, from 2.06% for the preceding quarter.

At April 21, 2023 and March 31, 2023 same day available liquidity totaled approximately $12.3 billion and $9.4 billion, respectively, including cash, borrowing capacity at the Federal Home Loan Bank of Atlanta and the Federal Reserve and unencumbered securities. Additional sources of liquidity include cash flows from operations, wholesale deposits and cash flow from the Bank's amortizing securities and loan portfolios.

Loans

A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):

 

March 31, 2023

 

December 31, 2022

Residential (1)

$

8,789,744

 

35.3

%

 

$

8,900,714

 

35.7

%

Non-owner occupied commercial real estate

 

5,346,895

 

21.5

%

 

 

5,405,597

 

21.7

%

Construction and land

 

324,805

 

1.3

%

 

 

294,360

 

1.2

%

Owner occupied commercial real estate

 

1,863,333

 

7.5

%

 

 

1,890,813

 

7.6

%

Commercial and industrial

 

6,617,716

 

26.5

%

 

 

6,417,721

 

25.9

%

Pinnacle

 

919,584

 

3.7

%

 

 

912,122

 

3.7

%

Bridge - franchise finance

 

239,205

 

1.0

%

 

 

253,774

 

1.0

%

Bridge - equipment finance

 

266,715

 

1.1

%

 

 

286,147

 

1.1

%

Mortgage warehouse lending ("MWL")

 

524,897

 

2.1

%

 

 

524,740

 

2.1

%

 

$

24,892,894

 

100.0

%

 

$

24,885,988

 

100.0

%

_______________________

(1)

Includes other consumer loans totaling $4 million and $6 million at March 31, 2023 and December 31, 2022, respectively.

For the quarter ended March 31, 2023, $173 million of growth in the commercial and industrial segment, including owner-occupied commercial real estate, was offset by declines of $111 million in residential, $28 million in commercial real estate and $27 million for Bridge and Pinnacle, while MWL balances remained flat.

Asset Quality and the Allowance for Credit Losses ("ACL")

Non-performing loans totaled $114.2 million or 0.46% of total loans at March 31, 2023, compared to $105.0 million or 0.42% of total loans at December 31, 2022. Non-performing loans included $36.9 million and $40.3 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.15% and 0.16% of total loans at March 31, 2023 and December 31, 2022, respectively.

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):

 

March 31, 2023

 

December 31, 2022

Special mention

$

101,781

 

$

51,433

Substandard - accruing

 

596,054

 

 

605,965

Substandard - non-accruing

 

82,840

 

 

75,125

Doubtful

 

7,699

 

 

7,990

Total

$

788,374

 

$

740,513

The increase in criticized and classified assets relates primarily to one multi-family loan that migrated to special mention during the quarter and subsequently paid off.

The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the periods ended March 31, 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

%

March 31, 2023

$

158,792

 

0.64

%

 

139.01

%

 

0.08

%

_______________________

(1)

Annualized for the three months ended March 31, 2023

The ACL at March 31, 2023 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. For the quarter ended March 31, 2023, the provision for credit losses was $19.8 million, including $17.6 million related to funded loans. The more significant factors impacting the provision for credit losses and increase in the ACL for the quarter ended March 31, 2023 were a deteriorating economic forecast 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

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Beginning balance

$

147,946

 

 

$

130,671

 

 

$

126,457

 

Impact of adoption of new accounting pronouncement (ASU 2022-02)

 

(1,794

)

 

 

N/A

 

 

 

N/A

 

Balance after impact of adoption of new accounting pronouncement (ASU 2022-02)

 

146,152

 

 

 

130,671

 

 

 

126,457

 

Provision

 

17,595

 

 

 

40,408

 

 

 

7,446

 

Net charge-offs

 

(4,955

)

 

 

(23,133

)

 

 

(8,460

)

Ending balance

$

158,792

 

 

$

147,946

 

 

$

125,443

 

Net Interest Income

Net interest income for the quarter ended March 31, 2023 was $227.9 million, compared to $243.1 million for the immediately preceding quarter ended December 31, 2022 and $208.6 million for the quarter ended March 31, 2022. Interest income increased by $38.9 million for the quarter ended March 31, 2023, compared to the immediately preceding quarter while interest expense increased by $54.1 million.

The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.19% to 2.62% for the quarter ended March 31, 2023, from 2.81% for the immediately preceding quarter ended December 31, 2022. Overall, the net interest margin was negatively impacted by an increase in the cost of interest-bearing deposits and FHLB advances, more than offsetting the increased yield on interest earning assets. A decline in average non-interest bearing deposits and an increase in on-balance sheet liquidity contributed to an increase in higher-cost funding.

More detail about factors impacting the net interest margin for the quarter ended March 31, 2023 follows:

  • The tax-equivalent yield on investment securities increased to 4.95% for the quarter ended March 31, 2023, from 4.33% for the quarter ended December 31, 2022. This increase resulted primarily from the reset of coupon rates on variable rate securities.
  • The tax-equivalent yield on loans increased to 5.10% for the quarter ended March 31, 2023, from 4.72% for the quarter ended December 31, 2022. The resetting of variable rate loans to higher coupon rates and origination of new loans at higher rates contributed to the increase.
  • The average rate paid on interest bearing deposits increased to 2.86% for the quarter ended March 31, 2023 from 2.06% for the quarter ended December 31, 2022, in response to the rising interest rate environment, tightening liquidity conditions and the shift from non-interest bearing deposits to deposits priced at current, higher market rates.
  • The average rate paid on FHLB advances increased to 4.27% for the quarter ended March 31, 2023, from 3.44% for the quarter ended December 31, 2022, primarily due to higher prevailing rates
  • Average non-interest bearing demand deposits declined by $0.8 billion while average cash balances increased by $0.3 billion for the quarter. Correspondingly, the increase in average interest-bearing sources of funds added to the balance sheet at higher current rates totaled $1.1 billion for the quarter. The estimated impact of this shift on the net interest margin for the quarter was 0.14%. 

Non-interest income and Non-interest expense

Non-interest income totaled $16.5 million for the quarter ended March 31, 2023, compared to $26.8 million for the quarter ended December 31, 2022 and $14.3 million for the quarter ended March 31, 2022. The quarter over quarter decline is primarily attributable to a $13.3 million loss on certain preferred equity investments during the quarter ended March 31, 2023.

Non-interest expense totaled $152.8 million for the quarter ended March 31, 2023, compared to $148.5 million for the immediately preceding quarter ended December 31, 2022 and $126.3 million for the quarter ended March 31, 2022.

  • The year-over-year increases in employee compensation and benefits and in technology expense reflected labor market dynamics and continued investment in people and technology to support future growth.
  • Deposit insurance expense increased by $4.5 million compared to the quarter ended March 31, 2022, reflecting an increase in the assessment rate.
  • Other non-interest expense for the quarter ended March 31, 2023 included $4.4 million related to certain operational losses. Costs related to deposit rebate and commission programs increased by $6.9 million for the quarter ended March 31, 2023 compared to the first quarter of the prior year.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Tuesday, April 25, 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/BId759d8eca4204944ae8b5c726fc19e7c. 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 $37.2 billion at March 31, 2023, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused in 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 limitations) 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 adverse events 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)

 

 

March 31,

2023

 

December 31,

2022

ASSETS

 

 

 

Cash and due from banks:

 

 

 

Non-interest bearing

$

15,740

 

 

$

16,068

 

Interest bearing

 

888,258

 

 

 

556,579

 

Cash and cash equivalents

 

903,998

 

 

 

572,647

 

Investment securities (including securities reported at fair value of $9,523,599 and $9,745,327)

 

9,533,599

 

 

 

9,755,327

 

Non-marketable equity securities

 

384,697

 

 

 

294,172

 

Loans

 

24,892,894

 

 

 

24,885,988

 

Allowance for credit losses

 

(158,792

)

 

 

(147,946

)

Loans, net

 

24,734,102

 

 

 

24,738,042

 

Bank owned life insurance

 

318,305

 

 

 

308,212

 

Operating lease equipment, net

 

526,311

 

 

 

539,799

 

Goodwill

 

77,637

 

 

 

77,637

 

Other assets

 

710,554

 

 

 

740,876

 

Total assets

$

37,189,203

 

 

$

37,026,712

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Liabilities:

 

 

 

Demand deposits:

 

 

 

Non-interest bearing

$

7,366,642

 

 

$

8,037,848

 

Interest bearing

 

2,505,150

 

 

 

2,142,067

 

Savings and money market

 

10,601,129

 

 

 

13,061,341

 

Time

 

5,249,977

 

 

 

4,268,078

 

Total deposits

 

25,722,898

 

 

 

27,509,334

 

Federal funds purchased

 

 

 

 

190,000

 

FHLB advances

 

7,550,000

 

 

 

5,420,000

 

Notes and other borrowings

 

720,787

 

 

 

720,923

 

Other liabilities

 

714,124

 

 

 

750,474

 

Total liabilities

 

34,707,809

 

 

 

34,590,731

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,423,365 and 75,674,587 shares issued and outstanding

 

744

 

 

 

757

 

Paid-in capital

 

269,353

 

 

 

321,729

 

Retained earnings

 

2,585,981

 

 

 

2,551,400

 

Accumulated other comprehensive loss

 

(374,684

)

 

 

(437,905

)

Total stockholders' equity

 

2,481,394

 

 

 

2,435,981

 

Total liabilities and stockholders' equity

$

37,189,203

 

 

$

37,026,712

 

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

 

2023

 

2022

 

2022

Interest income:

 

 

 

 

 

 

Loans

$

308,795

 

 

$

288,973

 

 

$

191,562

 

Investment securities

 

118,758

 

 

 

105,172

 

 

 

43,048

 

Other

 

12,863

 

 

 

7,345

 

 

 

1,354

 

Total interest income

 

440,416

 

 

 

401,490

 

 

 

235,964

 

Interest expense:

 

 

 

 

 

 

Deposits

 

133,630

 

 

 

94,403

 

 

 

11,857

 

Borrowings

 

78,912

 

 

 

64,021

 

 

 

15,465

 

Total interest expense

 

212,542

 

 

 

158,424

 

 

 

27,322

 

Net interest income before provision for credit losses

 

227,874

 

 

 

243,066

 

 

 

208,642

 

Provision for credit losses

 

19,788

 

 

 

39,608

 

 

 

7,830

 

Net interest income after provision for credit losses

 

208,086

 

 

 

203,458

 

 

 

200,812

 

Non-interest income:

 

 

 

 

 

 

Deposit service charges and fees

 

5,545

 

 

 

5,482

 

 

 

5,960

 

Gain (loss) on investment securities, net

 

(12,549

)

 

 

320

 

 

 

(7,868

)

Lease financing

 

13,109

 

 

 

14,153

 

 

 

13,415

 

Other non-interest income

 

10,430

 

 

 

6,858

 

 

 

2,794

 

Total non-interest income

 

16,535

 

 

 

26,813

 

 

 

14,301

 

Non-interest expense:

 

 

 

 

 

 

Employee compensation and benefits

 

71,051

 

 

 

69,902

 

 

 

67,088

 

Occupancy and equipment

 

10,802

 

 

 

10,770

 

 

 

11,512

 

Deposit insurance expense

 

7,907

 

 

 

6,205

 

 

 

3,403

 

Professional fees

 

2,918

 

 

 

3,028

 

 

 

2,262

 

Technology

 

21,726

 

 

 

22,388

 

 

 

17,004

 

Depreciation and impairment of operating lease equipment

 

11,521

 

 

 

12,547

 

 

 

12,610

 

Other non-interest expense

 

26,855

 

 

 

23,639

 

 

 

12,445

 

Total non-interest expense

 

152,780

 

 

 

148,479

 

 

 

126,324

 

Income before income taxes

 

71,841

 

 

 

81,792

 

 

 

88,789

 

Provision for income taxes

 

18,959

 

 

 

17,585

 

 

 

21,639

 

Net income

$

52,882

 

 

$

64,207

 

 

$

67,150

 

Earnings per common share, basic

$

0.71

 

 

$

0.83

 

 

$

0.79

 

Earnings per common share, diluted

$

0.70

 

 

$

0.82

 

 

$

0.79

 

 

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

 

 

Three Months Ended March 31,

2023

 

Three Months Ended December 31,

2022

 

Three Months Ended March 31,

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

$

24,724,296

 

 

$

312,125

 

5.10

%

 

$

24,624,062

 

 

$

292,272

 

4.72

%

 

$

23,349,143

 

 

$

194,551

 

3.36

%

Investment securities (3)

 

9,672,514

 

 

 

119,666

 

4.95

%

 

 

9,788,969

 

 

 

106,034

 

4.33

%

 

 

10,083,083

 

 

 

43,719

 

1.73

%

Other interest earning assets

 

1,039,563

 

 

 

12,863

 

5.02

%

 

 

710,315

 

 

 

7,345

 

4.10

%

 

 

674,640

 

 

 

1,354

 

0.81

%

Total interest earning assets

 

35,436,373

 

 

 

444,654

 

5.05

%

 

 

35,123,346

 

 

 

405,651

 

4.60

%

 

 

34,106,866

 

 

 

239,624

 

2.83

%

Allowance for credit losses

 

(151,071

)

 

 

 

 

 

 

(137,300

)

 

 

 

 

 

 

(129,028

)

 

 

 

 

Non-interest earning assets

 

1,793,000

 

 

 

 

 

 

 

1,837,156

 

 

 

 

 

 

 

1,674,476

 

 

 

 

 

Total assets

$

37,078,302

 

 

 

 

 

 

$

36,823,202

 

 

 

 

 

 

$

35,652,314

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

2,283,505

 

 

$

10,545

 

1.87

%

 

$

2,183,854

 

 

$

6,704

 

1.22

%

 

$

3,078,037

 

 

$

1,364

 

0.18

%

Savings and money market deposits

 

12,145,922

 

 

 

91,724

 

3.06

%

 

 

12,054,892

 

 

 

68,001

 

2.24

%

 

 

13,401,332

 

 

 

6,931

 

0.21

%

Time deposits

 

4,526,480

 

 

 

31,361

 

2.81

%

 

 

3,960,111

 

 

 

19,698

 

1.97

%

 

 

3,319,585

 

 

 

3,562

 

0.44

%

Total interest bearing deposits

 

18,955,907

 

 

 

133,630

 

2.86

%

 

 

18,198,857

 

 

 

94,403

 

2.06

%

 

 

19,798,954

 

 

 

11,857

 

0.24

%

Federal funds purchased

 

143,580

 

 

 

1,611

 

4.49

%

 

 

175,637

 

 

 

1,677

 

3.74

%

 

 

187,539

 

 

 

58

 

0.12

%

FHLB advances

 

6,465,000

 

 

 

68,039

 

4.27

%

 

 

6,125,435

 

 

 

53,084

 

3.44

%

 

 

2,248,889

 

 

 

6,146

 

1.11

%

Notes and other borrowings

 

720,906

 

 

 

9,262

 

5.14

%

 

 

721,044

 

 

 

9,260

 

5.14

%

 

 

721,405

 

 

 

9,261

 

5.13

%

Total interest bearing liabilities

 

26,285,393

 

 

 

212,542

 

3.28

%

 

 

25,220,973

 

 

 

158,424

 

2.49

%

 

 

22,956,787

 

 

 

27,322

 

0.48

%

Non-interest bearing demand deposits

 

7,458,221

 

 

 

 

 

 

 

8,237,885

 

 

 

 

 

 

 

9,047,864

 

 

 

 

 

Other non-interest bearing liabilities

 

821,419

 

 

 

 

 

 

 

879,207

 

 

 

 

 

 

 

623,200

 

 

 

 

 

Total liabilities

 

34,565,033

 

 

 

 

 

 

 

34,338,065

 

 

 

 

 

 

 

32,627,851

 

 

 

 

 

Stockholders' equity

 

2,513,269

 

 

 

 

 

 

 

2,485,137

 

 

 

 

 

 

 

3,024,463

 

 

 

 

 

Total liabilities and stockholders' equity

$

37,078,302

 

 

 

 

 

 

$

36,823,202

 

 

 

 

 

 

$

35,652,314

 

 

 

 

 

Net interest income

 

 

$

232,112

 

 

 

 

 

$

247,227

 

 

 

 

 

$

212,302

 

 

Interest rate spread

 

 

 

 

1.77

%

 

 

 

 

 

2.11

%

 

 

 

 

 

2.35

%

Net interest margin

 

 

 

 

2.62

%

 

 

 

 

 

2.81

%

 

 

 

 

 

2.50

%

_______________________

(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 March 31,

 

2023

 

 

 

2022

 

Basic earnings per common share:

 

 

 

Numerator:

 

 

 

Net income

$

52,882

 

 

$

67,150

 

Distributed and undistributed earnings allocated to participating securities

 

(798

)

 

 

(929

)

Income allocated to common stockholders for basic earnings per common share

$

52,084

 

 

$

66,221

 

Denominator:

 

 

 

Weighted average common shares outstanding

 

74,755,002

 

 

 

84,983,873

 

Less average unvested stock awards

 

(1,193,881

)

 

 

(1,211,807

)

Weighted average shares for basic earnings per common share

 

73,561,121

 

 

 

83,772,066

 

Basic earnings per common share

$

0.71

 

 

$

0.79

 

Diluted earnings per common share:

 

 

 

Numerator:

 

 

 

Income allocated to common stockholders for basic earnings per common share

$

52,084

 

 

$

66,221

 

Adjustment for earnings reallocated from participating securities

 

3

 

 

 

1

 

Income used in calculating diluted earnings per common share

$

52,087

 

 

$

66,222

 

Denominator:

 

 

 

Weighted average shares for basic earnings per common share

 

73,561,121

 

 

 

83,772,066

 

Dilutive effect of certain share-based awards

 

447,581

 

 

 

137,704

 

Weighted average shares for diluted earnings per common share

 

74,008,702

 

 

 

83,909,770

 

Diluted earnings per common share

$

0.70

 

 

$

0.79

 

 

BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS

 

 

At or for the Three Months Ended

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Financial ratios (4)

 

 

 

 

 

Return on average assets

 

0.58

%

 

 

0.69

%

 

 

0.76

%

Return on average stockholders’ equity

 

8.5

%

 

 

10.3

%

 

 

9.0

%

Net interest margin (3)

 

2.62

%

 

 

2.81

%

 

 

2.50

%

Tangible book value per common share

$

32.30

 

 

$

31.16

 

 

$

33.12

 

 

March 31, 2023

 

December 31, 2022

Asset quality ratios

 

 

 

Non-performing loans to total loans (1)(5)

0.46

%

 

0.42

%

Non-performing assets to total assets (2)(5)

0.32

%

 

0.29

%

Allowance for credit losses to total loans

0.64

%

 

0.59

%

Allowance for credit losses to non-performing loans (1)(5)

139.01

%

 

140.88

%

Net charge-offs to average loans (4)

0.08

%

 

0.22

%

_______________________

(1)

We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.

(2)

Non-performing assets include non-performing loans, OREO and other repossessed assets.

(3)

On a tax-equivalent basis.

(4)

Annualized for the three month periods as applicable.

(5)

Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $36.9 million or 0.15% of total loans and 0.10% of total assets at March 31, 2023 and $40.3 million or 0.16% of total loans and 0.11% of total assets at December 31, 2022.

 

March 31, 2023

 

December 31, 2022

 

Required to be Considered Well Capitalized

 

BankUnited, Inc.

 

BankUnited, N.A.

 

BankUnited, Inc.

 

BankUnited, N.A.

 

Capital ratios

 

 

 

 

 

 

 

 

 

Tier 1 leverage

7.4

%

 

8.6

%

 

7.5

%

 

8.4

%

 

5.0

%

Common Equity Tier 1 ("CET1") risk-based capital

10.8

%

 

12.5

%

 

11.0

%

 

12.4

%

 

6.5

%

Total risk-based capital

12.6

%

 

13.1

%

 

12.7

%

 

12.9

%

 

10.0

%

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):

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Total stockholders’ equity

$

2,481,394

 

$

2,435,981

 

$

2,861,232

Less: goodwill and other intangible assets

 

77,637

 

 

77,637

 

 

77,637

Tangible stockholders’ equity

$

2,403,757

 

$

2,358,344

 

$

2,783,595

 

 

 

 

 

 

Common shares issued and outstanding

 

74,423,365

 

 

75,674,587

 

 

84,052,021

 

 

 

 

 

 

Book value per common share

$

33.34

 

$

32.19

 

$

34.04

 

 

 

 

 

 

Tangible book value per common share

$

32.30

 

$

31.16

 

$

33.12

 

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