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TheStreet Open House

BankUnited, Inc. Reports Second Quarter 2014 Results

BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended June 30, 2014.

For the quarter ended June 30, 2014, the Company reported net income of $48.5 million, or $0.46 per diluted share, as compared to $54.0 million, or $0.52 per diluted share, for the quarter ended June 30, 2013.

For the six months ended June 30, 2014, the Company reported net income of $103.8 million, or $0.99 per diluted share, generating a return on average stockholders’ equity of 10.54% and a return on average assets of 1.32%. The Company reported net income of $102.2 million, or $0.99 per diluted share, for the six months ended June 30, 2013.

John Kanas, Chairman, President and Chief Executive Officer, said, "We continue to enjoy the benefit of the robust economic rebound of both our Florida and our New York markets.”

Performance Highlights

  • New loans grew by $971 million during the second quarter of 2014, excluding the impact of the sale of $303 million of indirect auto loans. For the six months ended June 30, 2014, new loans increased by $2.1 billion excluding the impact of the sale of indirect auto loans.
  • Total deposits increased by $913 million for the quarter ended June 30, 2014 to $12.0 billion, reflecting growth across all deposit categories. For the six months ended June 30, 2014, total deposits grew by $1.5 billion.
  • The net interest margin, calculated on a tax-equivalent basis, was 4.67% for the quarter ended June 30, 2014 compared to 6.14% for the quarter ended June 30, 2013 and 5.05% for the immediately preceding quarter ended March 31, 2014. 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.
  • Loss sharing under the terms of BankUnited, N.A.’s Commercial Shared-Loss Agreement with the FDIC terminated on May 22, 2014. At June 30, 2014, the Company’s loan portfolio included commercial and consumer ACI loans with a carrying value of $102 million and the investment portfolio included securities with a carrying value of $204 million formerly covered under the terms of the Commercial Shared-Loss Agreement.
  • The Company terminated its indirect auto lending activities and sold substantially all of its indirect auto loan portfolio in the second quarter of 2014.
  • Book value and tangible book value per common share grew to $19.82 and $19.14, respectively, at June 30, 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 June 30, 2014 were as follows:

Tier 1 leverage   11.6 %
 
Tier 1 risk-based capital 17.7 %
 
Total risk-based capital 18.5 %

Loans and Leases

Loans, net of premiums, discounts and deferred fees and costs, increased to $10.6 billion at June 30, 2014 from $9.1 billion at December 31, 2013. New loans totaled $9.3 billion at June 30, 2014 while covered loans declined to $1.2 billion at June 30, 2014 from $1.5 billion at December 31, 2013.

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