This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BankUnited, Inc. Reports First Quarter 2014 Results, Sustained Organic Growth

BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2014.

For the quarter ended March 31, 2014, the Company reported net income of $55.3 million, or $0.53 per diluted share, generating a return on average stockholders’ equity of 11.41% and a return on average assets of 1.46%. The Company reported net income of $48.2 million, or $0.47 per diluted share, for the quarter ended March 31, 2013.

John Kanas, Chairman, President and Chief Executive Officer, said, “We are obviously pleased with this quarter’s results. We are particularly encouraged by the sustained, balanced growth across all of our lending platforms.”

Performance Highlights

  • New loans grew by $1.1 billion during the first quarter of 2014 to $8.6 billion.
  • Total deposits increased by $591 million for the quarter ended March 31, 2014 to $11.1 billion.
  • The net interest margin, calculated on a tax-equivalent basis, was 5.05% for the quarter ended March 31, 2014 compared to 5.93% for the quarter ended March 31, 2013 and 5.24% for the immediately preceding quarter ended December 31, 2013. The net interest margin continues to be impacted by the origination of new loans at current market yields lower than those on the covered loan portfolio.
  • The cost of deposits continues to trend downward. The cost of deposits was 0.60% for the first quarter of 2014 as compared to 0.70% for the first quarter of 2013. Excluding the impact of hedge accounting and accretion of fair value adjustments, the cost of deposits was 0.55% for the quarter ended March 31, 2014.
  • Earnings for the quarter ended March 31, 2014 benefited from a net gain on the sale of covered commercial and consumer loans and commercial other real estate owned (“OREO”) with an aggregate carrying value of $84 million. Better than previously projected pricing resulted in a net favorable pre-tax impact on quarterly earnings of $11.2 million, inclusive of the impact of FDIC loss sharing and direct expenses of the sale. Loss sharing under the terms of BankUnited, N.A.’s Commercial Shared-Loss Agreement with the FDIC will terminate on May 21, 2014.
  • Book value and tangible book value per common share grew to $19.47 and $18.80, respectively, at March 31, 2014.

Capital

The Company and its banking subsidiary continue to exceed all regulatory guidelines required to be considered well capitalized. The Company’s regulatory capital ratios at March 31, 2014 were as follows:

Tier 1 leverage

 

12.1%

Tier 1 risk-based capital

19.4%

Total risk-based capital

20.3%

Loans and Leases

Loans, net of premiums, discounts and deferred fees and costs, increased to $10.0 billion at March 31, 2014 from $9.1 billion at December 31, 2013. New loans grew by $1.1 billion to $8.6 billion at March 31, 2014. Covered loans declined to $1.3 billion at March 31, 2014 from $1.5 billion at December 31, 2013.

1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs