BankUnited, Inc. Reports Second Quarter Results, Strong Loan Growth

BankUnited, Inc. (the “Company”) (NYSE:BKU) today announced financial results for the quarter ended June 30, 2012.

For the quarter ended June 30, 2012, the Company reported net income of $48.9 million, or $0.48 per share as compared to $44.0 million or $0.44 per share for the quarter ended June 30, 2011.

For the six months ended June 30, 2012, the Company reported net income of $99.2 million, or $0.96 per share. These earnings produced an annualized return on average stockholders’ equity of 12.25% and an annualized return on average assets of 1.66%. The Company reported a net loss of $(23.7) million, or $(0.25) per share for the six months ended June 30, 2011. The results for the first six months of 2011 included a one-time charge of $110.4 million, recorded in conjunction with the Company’s initial public offering (IPO) in February 2011, which was not deductible for income tax purposes.

John Kanas, Chairman, President and Chief Executive Officer, said: “We are obviously pleased with this quarter’s financial results. While our performance continues to reflect a significant increase in market share, we are also witnessing the positive impact on our business emanating from an overall improvement in the South Florida economy.”

Financial Highlights
  • For the quarter ended June 30, 2012, new loans grew $501.2 million to $2.9 billion. For the second quarter and first six months of 2012, growth in new loans outpaced the resolution of covered loans, resulting in net growth in the loan portfolio. Total loans, net of discount and deferred fees and costs, grew $369.4 million for the quarter to $5.1 billion.
  • At June 30, 2012, total demand deposits exceeded 20% of total deposits.
  • The cost of deposits continues to trend downward. The cost of deposits was 0.84% for the second quarter of 2012 as compared to 0.90% for the first quarter of 2012 and 1.12% for the second quarter of 2011.
  • Book value and tangible book value per common share grew to $17.42 and $16.68, respectively, at June 30, 2012.

Capital Ratios

BankUnited, Inc. continues to maintain a robust capital position. The Company’s capital ratios at June 30, 2012 were as follows:
Tier 1 leverage   12.8 %
Tier 1 risk-based capital 34.8 %
Total risk-based capital 36.2 %

The Company and its banking subsidiaries continue to exceed all regulatory guidelines required to be considered well capitalized.

Loans

Loans, net of discount and deferred fees and costs, increased to $5.1 billion at June 30, 2012 from $4.1 billion at December 31, 2011. Including $306.0 million in loans acquired from Herald National Bank, new loans increased by $1.2 billion to $2.9 billion at June 30, 2012 from $1.7 billion at December 31, 2011. Covered loans declined to $2.2 billion at June 30, 2012 from $2.4 billion at December 31, 2011.

In the second quarter of 2012, new commercial loans (including commercial loans, commercial real estate loans, and leases) grew $373.1 million to $2.2 billion, primarily reflecting the Company’s expansion of market share in Florida.

For the quarter ended June 30, 2012, the Company’s portfolio of new residential loans grew $123.9 million to $713.9 million, primarily reflecting the Company’s purchase of residential loans outside of Florida to help diversify credit risk within the residential portfolio.

A comparison of portfolio composition at June 30, 2012 and December 31, 2011 follows:
  New Loans   Total Loans
June 30,   December 31, June 30,   December 31,
2012 2011 2012 2011
Single family residential and home equity 24.8 % 27.0 % 50.5 % 60.2 %
Commercial real estate 30.7 % 26.2 % 23.5 % 19.4 %
Commercial 44.1 % 46.6 % 25.7 % 20.2 %
Consumer 0.4 % 0.2 % 0.3 % 0.2 %
100.0 % 100.0 % 100.0 % 100.0 %

Asset Quality

The Company’s asset quality remained strong, with credit risk limited by its Loss Sharing Agreements with the FDIC. At June 30, 2012, covered loans represented 43% of the total loan portfolio, as compared to 59% at December 31, 2011.

The ratio of non-performing loans to total loans was 0.57% at June 30, 2012 as compared to 0.70% at December 31, 2011 and 0.89% at June 30, 2011. At June 30, 2012, non-performing assets totaled $122.6 million, including $93.7 million of other real estate owned (“OREO”) as compared to $152.6 million, including $123.7 million of OREO, at December 31, 2011, and $175.6 million, including $141.7 million of OREO, at June 30, 2011. All OREO at June 30, 2012 is covered by the Company’s Loss Sharing Agreements.

For the quarters ended June 30, 2012 and 2011, the Company recorded a provision for (recovery of) loan losses of $2.7 million and $(2.9) million, respectively. Of these amounts $(1.5) million and $(6.4) million, respectively, related to covered loans and $4.2 million and $3.6 million, respectively, related to new loans. The increase in the provision for new loans reflected growth in the Company’s new loan originations.

For the six months ended June 30, 2012 and 2011, the Company recorded provisions for loan losses of $11.5 million and $8.6 million respectively. Of these amounts, $0.1 million and $3.6 million related to covered loans and $11.4 million and $5.0 million, respectively, related to new loans.

The provisions (recoveries) related to covered loans were significantly mitigated by increases (decreases) in non-interest income recorded in “Net gain (loss) on indemnification asset.”

The following table summarizes the activity in the allowance for loan losses for the three and six months ended June 30, 2012 and 2011 (in thousands):
  Three Months Ended June 30, 2012   Three Months Ended June 30, 2011
ACI Loans  

Non-ACI

Loans
  New Loans   Total ACI Loans  

Non-ACI

Loans
  New Loans   Total
Balance at beginning of period $ 14,591 $ 10,915 $ 30,968 $ 56,474 $ 36,709 $ 17,302 $ 7,546 $ 61,557
Provision (1,771 ) 287 4,209 2,725 (6,563 ) 120 3,551 (2,892 )
Charge-offs (1,735 ) (1,434 ) (533 ) (3,702 ) (1,382 ) (1,313 ) (565 ) (3,260 )
Recoveries   -     110     28     138     1,212     14     8     1,234  
Balance at end of period $ 11,085   $ 9,878   $ 34,672   $ 55,635   $ 29,976   $ 16,123   $ 10,540   $ 56,639  
 
    Six Months Ended June 30, 2012   Six Months Ended June 30, 2011
ACI Loans  

Non-ACI

Loans
  New Loans   Total ACI Loans  

Non-ACI

Loans
  New Loans   Total
Balance at beginning of period $ 16,332 $ 7,742 $ 24,328 $ 48,402 $ 39,925 $ 12,284 $ 6,151 $ 58,360
Provision (2,782 ) 2,898 11,376 11,492 (2,719 ) 6,293 4,990 8,564
Charge-offs (2,465 ) (2,040 ) (1,116 ) (5,621 ) (8,442 ) (2,468 ) (615 ) (11,525 )
Recoveries   -     1,278     84     1,362     1,212     14     14     1,240  
Balance at end of period $ 11,085   $ 9,878   $ 34,672   $ 55,635   $ 29,976   $ 16,123   $ 10,540   $ 56,639  

Investment Securities

Investment securities grew to $4.8 billion at June 30, 2012 from $4.2 billion at December 31, 2011. The average yield on investment securities was 2.95% for the six months ended June 30, 2012 as compared to 3.66% for the six months ended June 30, 2011. The decline in yield reflects the impact of purchases of securities at lower prevailing market rates of interest. The effective duration of the Company’s investment portfolio was approximately 1.8 years at June 30, 2012.

Deposits

At June 30, 2012, deposits totaled $8.2 billion as compared to $7.4 billion at December 31, 2011. Demand deposits (including non-interest bearing and interest bearing deposits) grew $429.1 million to $1.7 billion at June 30, 2012 from $1.2 billion at December 31, 2011. This was driven principally by growth in commercial and small business accounts. The average cost of deposits was 0.84% for the quarter ended June 30, 2012 as compared to 1.12% for the quarter ended June 30, 2011 and 0.87% for the six months ended June 30, 2012 as compared to 1.15% for the six months ended June 30, 2011. The decrease in the average cost of deposits was primarily attributable to the continued growth in lower cost deposit products and a decline in market rates of interest.

Net Interest Income

Net interest income for the quarter ended June 30, 2012 grew to $145.8 million, from $117.3 million for the quarter ended June 30, 2011. Net interest income for the six months ended June 30, 2012 grew to $283.6 million from $229.6 million for the six months ended June 30, 2011.

The Company’s net interest margin for the quarter ended June 30, 2012 was 5.82% as compared to 5.99% for the quarter ended June 30, 2011. Net interest margin for the six months ended June 30, 2012 was 5.90% as compared to 5.87% for the six months ended June 30, 2011.

The Company’s net interest margin for the quarters and six months ended June 30, 2012 and 2011 was impacted by reclassifications from non-accretable difference to accretable yield on ACI loans (defined as covered loans acquired with evidence of deterioration in credit quality). Non-accretable difference at acquisition represented the difference between the total contractual payments due and the cash flows expected to be received on these loans. The accretable yield on ACI loans represents the amount by which undiscounted expected future cash flows exceed the carrying value of the loans. As the Company’s expected cash flows from ACI loans increased since the FSB Acquisition, the Company reclassified amounts from non-accretable difference to accretable yield.

Changes in accretable yield on ACI loans for the six months ended June 30, 2012 and the year ended December 31, 2011 were as follows (in thousands):

  Balance, December 31, 2010   $ 1,833,974
  Reclassifications from non-accretable difference 135,933
Accretion   (446,292 )
Balance, December 31, 2011 1,523,615
Reclassifications from non-accretable difference 50,032
Accretion   (219,869 )
Balance, June 30, 2012 $ 1,353,778  

Non-Interest Income

Non-interest income for the quarter ended June 30, 2012 was $21.7 million, as compared to $52.9 million for the quarter ended June 30, 2011. For the six months ended June 30, 2012, non-interest income was $58.1 million as compared to $117.1 million for the six months ended June 30, 2011.

Non-interest income for the quarter and six months ended June 30, 2012 was impacted by lower accretion of discount on the FDIC indemnification asset of $4.3 million and $11.1 million, respectively, as compared to $14.9 million and $34.4 million respectively for the quarter and six months ended June 30, 2011. As the expected cash flows from ACI loans have increased as discussed above, the Company expects reduced cash flows from the FDIC indemnification asset, resulting in lowered accretion.

Net gain (loss) on indemnification asset was $(12.5) million and $(12.4) million, respectively, for the quarter and six months ended June 30, 2012, as compared to $11.3 million and $37.6 million, respectively, for the quarter and six months ended June 30, 2011. Factors impacting this change included increased income from resolution of covered assets, net, reduced OREO impairment and more favorable gains (losses) on the sale of OREO as discussed below, as well as the variance in the provision for losses on covered loans as discussed above.

Non-Interest Expense

Non-interest expense totaled $83.0 million for the quarter ended June 30, 2012 as compared to $95.9 million for the quarter ended June 30, 2011. For the six months ended June 30, 2012 non-interest expense totaled $167.1 million as compared to $300.2 million for the six months ended June 30, 2011. Non-interest expense for the six months ended June 30, 2011 included a one-time compensation expense of $110.4 million recorded in conjunction with the Company’s IPO.

Employee compensation and benefits (excluding the one-time charge of $110.4 million discussed above) and occupancy and equipment expense increased for the quarter and six months ended June 30, 2012 as compared to the quarter and six months ended June 30, 2011, reflecting the Company’s continued expansion and the opening and refurbishment of branches. For the quarter and six months ended June 30, 2012, the aggregate of OREO related expense, gain (loss) on sale of OREO, foreclosure expense, and impairment of OREO totaled $6.6 million and $16.6 million respectively, as compared to $29.1 million and $59.7 million, respectively, for the quarter and six months ended June 30, 2011. The sharply lower level of expense for the quarter and six months ended June 30, 2012 reflected lower levels of OREO and foreclosure activity as well as improving real estate market trends as compared to the prior year.

Earnings Conference Call and Presentation

A conference call to discuss the second quarter results will be held at 9:00 a.m. EDT on Wednesday July 25th with Chairman, President, and Chief Executive Officer, John A. Kanas and Chief Financial Officer, Douglas J. Pauls.

The earnings release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. The call may be accessed via a live Internet webcast at www.bankunited.com or through a dial in telephone number at (888) 679-8018 (domestic) or, (617) 213-4845 (international). The name of the call is BankUnited, and the pass code for the call is 64151841. A replay of the call will be available from 11:00 a.m. EDT on July 25th through 11:59 p.m. EDT on August 1 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international). The pass code for the replay is 73844128. An archived webcast will also be available on the Investor Relations page of www.bankunited.com.

About BankUnited and the Acquisition

BankUnited, Inc. is a bank holding company with three wholly-owned subsidiaries: BankUnited, N.A., which is one of the largest independent depository institutions headquartered in Florida by assets, BankUnited Investment Services, Inc., a Florida insurance agency which provides comprehensive wealth management products and financial planning services, and Herald National Bank, a commercial bank servicing the New York City market. BankUnited, N.A., is a national bank headquartered in Miami Lakes, Florida, with $11.8 billion of assets, more than 1,395 professionals and 95 branches in 15 counties at June 30, 2012.

The Company was organized by a management team led by its Chairman, President and Chief Executive Officer, John A. Kanas, on April 28, 2009. On May 21, 2009, BankUnited acquired substantially all of the assets and assumed all of the non-brokered deposits and substantially all other liabilities of BankUnited, FSB from the FDIC, in a transaction referred to as the “FSB Acquisition”. Concurrently with the FSB Acquisition, BankUnited entered into two loss sharing agreements, or the “Loss Sharing Agreements”, which cover certain legacy assets, including the entire legacy loan portfolio and OREO, and certain purchased investment securities. Assets covered by the Loss Sharing Agreements are referred to as “covered assets” (or, in certain cases, “covered loans”). The Loss Sharing Agreements do not apply to subsequently acquired, purchased or originated assets. Pursuant to the terms of the Loss Sharing Agreements, the covered assets are subject to a stated loss threshold whereby the FDIC will reimburse BankUnited for 80% of losses, including certain interest and expenses, up to the $4.0 billion stated threshold and 95% of losses in excess of the $4.0 billion stated threshold. The Company’s current estimate of cumulative losses on the covered assets is approximately $4.7 billion. The Company has received $2.1 billion from the FDIC in reimbursements under the Loss Sharing Agreements for claims filed for incurred losses as of June 30, 2012.

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” 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 relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. 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 Annual Report on Form 10-K for the year ended December 31, 2011 available at the SEC’s website ( www.sec.gov).
BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands, except share data)
 
 
 
  June 30,   December 31,
2012 2011
ASSETS
 
Cash and due from banks:
  Non-interest bearing $ 41,691 $ 39,894
Interest bearing 22,038 13,160
Interest bearing deposits at Federal Reserve Bank 97,830 247,488
Federal funds sold   2,585   3,200
Cash and cash equivalents 164,144 303,742
Investment securities available for sale, at fair value
(including covered securities of $227,028 and $232,194) 4,758,509 4,181,977
Non-marketable equity securities 154,376 147,055
Loans held for sale 2,970 3,952
Loans (including covered loans of $2,182,133 and $2,422,811) 5,078,698 4,137,058
Allowance for loan and lease losses   (55,635)   (48,402)
  Loans, net 5,023,063 4,088,656
FDIC indemnification asset 1,711,526 2,049,151
Bank owned life insurance 205,842 204,077
Other real estate owned, covered by loss sharing agreements 93,724 123,737
Deferred tax asset, net 88,187 19,485
Goodwill and other intangible assets 70,142 68,667
Other assets   157,478   131,539
Total assets $ 12,429,961 $ 11,322,038
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Liabilities:
Demand deposits:
Non-interest bearing $ 1,134,689 $ 770,846
Interest bearing 518,883 453,666
Savings and money market 3,948,350 3,553,018
Time   2,624,692   2,587,184
Total deposits 8,226,614 7,364,714
Securities sold under repurchase agreements and short-term borrowings 42,581 206
Federal Home Loan Bank advances 2,226,978 2,236,131
Income taxes payable 82,061 53,171
Advance payments by borrowers for taxes and insurance 36,151 21,838
Other liabilities   123,325   110,698
Total liabilities 10,737,710 9,786,758
 
Commitments and contingencies
 
Stockholders' equity:
Common Stock, par value $0.01 per share 400,000,000 authorized;
94,024,521 and 97,700,829 shares issued and outstanding 940 977
Preferred stock, 100,000,000 shares authorized
5,415,794 shares of Series A $0.01 par value issued and outstanding at June 30, 2012 54 -
Paid-in capital 1,298,201 1,240,068
Retained earnings 340,470 276,216
Accumulated other comprehensive income   52,586   18,019
Total stockholders' equity   1,692,251   1,535,280
Total liabilities and stockholders' equity $ 12,429,961 $ 11,322,038
 
BANKUNITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
 
 
 
    Three Months Ended June 30,   Six Months Ended June 30,
  2012     2011   2012     2011  
 
Interest income:
Loans $ 142,621 $ 122,243 $ 278,918 $ 236,894
Investment securities available for sale 34,059 29,237 67,098 61,786
Other   1,235     617     2,189     1,623  
Total interest income   177,915     152,097     348,205     300,303  
Interest expense:
Deposits 17,047 19,024 34,007 39,330
Borrowings   15,071     15,751     30,592     31,324  
Total interest expense   32,118     34,775     64,599     70,654  
Net interest income before provision for loan losses 145,797 117,322 283,606 229,649
Provision for (recovery of) loan losses (including $(1,484)
$(6,443), $116 and $3,574 for covered loans)   2,725     (2,892 )   11,492     8,564  
Net interest income after provision for loan losses   143,072     120,214     272,114     221,085  
Non-interest income:
Accretion of discount on FDIC indemnification asset 4,294 14,873 11,081 34,443
Income from resolution of covered assets, net 14,803 3,076 22,085 2,366
Net gain (loss) on indemnification asset (12,537 ) 11,312 (12,403 ) 37,634
FDIC reimbursement of costs of resolution of covered assets 3,333 8,241 9,849 18,741
Service charges and fees 3,229 2,648 6,345 5,332
Gain on sale of investment securities available for sale 880 100 896 103
Mortgage insurance income 2,649 6,784 6,339 8,085
Investment services income 1,091 2,110 2,223 4,515
Other non-interest income   3,924     3,714     11,649     5,901  
Total non-interest income   21,666     52,858     58,064     117,120  
Non-interest expense:
Employee compensation and benefits 43,951 41,364 90,576 190,670
Occupancy and equipment 13,229 8,791 25,051 16,396
Impairment of other real estate owned 3,048 8,187 6,595 17,786
Foreclosure expense 3,892 6,057 6,611 10,527
(Gain) loss on sale of other real estate owned (1,490 ) 12,264 (89 ) 24,474
Other real estate owned expense 1,161 2,589 3,437 6,932
Deposit insurance expense 1,946 2,329 3,096 6,518
Professional fees 3,953 3,507 7,602 6,736
Telecommunications and data processing 3,121 3,418 6,351 6,866
Other non-interest expense   10,220     7,383     17,919     13,323  
Total non-interest expense   83,031     95,889     167,149     300,228  
Income before income taxes 81,707 77,183 163,029 37,977
Provision for income taxes   32,778     33,188     63,828     61,642  
Net income (loss) 48,929 43,995 99,201 (23,665 )
Preferred stock dividends   921     -     1,841     -  
Net income (loss) available to common stockholders $ 48,008   $ 43,995   $ 97,360   $ (23,665 )
Earnings (loss) per common share, basic and diluted $ 0.48   $ 0.44   $ 0.96   $ (0.25 )
Cash dividends declared per common share $ 0.17   $ 0.14   $ 0.34   $ 0.28  
 
BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
 
 
  Three Months Ended June 30,
2012     2011  
  Average     Yield/ Average     Yield/
Balance Interest Rate (1) Balance Interest Rate (1)
Assets:  
Interest earning assets:
Investment securities available for sale $ 4,688,632 $ 34,059 2.91 % $ 3,541,723 $ 29,237 $ 3.30 %
Other interest earning assets 522,874 1,235 0.95 % 572,792 617 0.43 %
Loans   4,813,393     142,621   11.87 %   3,722,389     122,243   13.15 %
Total interest earning assets 10,024,899 177,915 7.11 % 7,836,904 152,097 7.77 %
Allowance for loan and lease losses (57,351 ) (61,168 )
Non-interest earning assets   2,414,312     2,983,739  
Total assets $ 12,381,860   $ 10,759,475  
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits $ 502,313 $ 814 0.65 % $ 372,060 $ 624 $ 0.67 %
Savings and money market deposits 3,958,633 6,491 0.66 % 3,248,353 7,023 0.87 %
Time deposits   2,624,250     9,742   1.49 %   2,546,673     11,377   1.79 %
Total interest bearing deposits 7,085,196 17,047 0.97 % 6,167,086 19,024 1.24 %
Borrowings:
FHLB advances 2,229,410 15,036 2.71 % 2,248,514 15,747 2.81 %
Short-term borrowings   35,244     35   0.40 %   3,785     4   0.42 %
Total interest bearing liabilities 9,349,850   32,118 1.38 % 8,419,385   34,775 1.66 %
Non-interest bearing demand deposits 1,055,998 619,052
Other non-interest bearing liabilities   302,923     270,951  
Total liabilities 10,708,771 9,309,388
Stockholders' equity   1,673,089     1,450,087  
Total liabilities and stockholders' equity $ 12,381,860   $ 10,759,475  
Net interest income $ 145,797 $ 117,322
Interest rate spread   5.73 %   6.11 %
Net interest margin   5.82 %   5.99 %
 
(1) Annualized
 
BANKUNITED, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
 
 
  Six Months Ended June 30,
2012   2011
  Average     Yield/ Average     Yield/
Balance Interest Rate (1) Balance Interest Rate (1)
Assets:    
Interest earning assets:
Investment securities available for sale $ 4,543,664 $ 67,098 2.95% $ 3,372,406 $ 61,786 3.66%
Other interest earning assets 523,792 2,189 0.84% 682,059 1,623 0.48%
Loans   4,544,554   278,918   12.30%   3,762,366   236,894   12.62%
Total interest earning assets 9,612,010 348,205 7.26% 7,816,831 300,303 7.70%
Allowance for loan and lease losses (53,604) (59,813)
Non-interest earning assets   2,427,300   3,078,889
Total assets $ 11,985,706 $ 10,835,907
Liabilities and Stockholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits $ 488,606 $ 1,581 0.65% $ 361,002 $ 1,177 0.66%
Savings and money market deposits 3,809,788 12,924 0.68% 3,250,407 14,249 0.88%
Time deposits   2,601,538   19,502   1.51%   2,719,296   23,904   1.77%
Total interest bearing deposits 6,899,932 34,007 0.99% 6,330,705 39,330 1.25%
Borrowings:
FHLB advances 2,231,918 30,555 2.75% 2,250,855 31,319 2.81%
Short-term borrowings   18,226   37   0.41%   2,045   5   0.49%
Total interest bearing liabilities 9,150,076 64,599 1.42% 8,583,605 70,654 1.66%
Non-interest bearing demand deposits 959,564 572,595
Other non-interest bearing liabilities   247,370   274,350
Total liabilities 10,357,010 9,430,550
Stockholders' equity   1,628,696   1,405,357
Total liabilities and stockholders' equity $ 11,985,706 $ 10,835,907
Net interest income $ 283,606 $ 229,649
Interest rate spread   5.84%   6.04%
Net interest margin   5.90%   5.87%
 
(1) Annualized
 
BANKUNITED, INC. AND SUBSIDIARIES
EARNINGS (LOSS) PER COMMON SHARE
(In thousands except share amounts)
 
 
  Three Months Ended   Six Months Ended
June 30, June 30,
2012   2011 2012   2011
Basic earnings (loss) per common share:
Numerator:
Net income (loss) $ 48,929 $ 43,995 $ 99,201 $ (23,665)
Preferred stock dividends   (921)   -   (1,841)   -
Net income (loss) available to common stockholders 48,008 43,995 97,360 (23,665)

Distributed and undistributed earnings allocated to participating securities
  (3,687)   (2,216)   (6,968)   -
Income (loss) allocated to common stockholders for basic earnings (loss) per common share $ 44,321 $ 41,779 $ 90,392 $ (23,665)
Denominator:
Weighted average common shares outstanding 93,994,226 97,243,931 95,190,558 96,432,334
Less average unvested stock awards   (1,168,872)   (1,785,151)   (1,405,036)   (1,547,363)
Weighted average shares for basic earnings (loss) per common share   92,825,354   95,458,780   93,785,522   94,884,971
Basic earnings (loss) per common share $ 0.48 $ 0.44 $ 0.96 $ (0.25)
Diluted earnings (loss) per common share:
Numerator:
Income (loss) allocated to common stockholders for basic earnings (loss) per common share $ 44,321 $ 41,779 $ 90,392 $ (23,665)
Adjustment for earnings reallocated from participating securities   2,583   2   10   -
Income (loss) used in calculating diluted earnings (loss) per common share $ 46,904 $ 41,781 $ 90,402 $ (23,665)
Denominator:
Average shares for basic earnings (loss) per common share 92,825,354 95,458,780 93,785,522 94,884,971
Dilutive effect of stock options and preferred shares   5,626,620   166,601   189,209   -
Weighted average shares for diluted earnings (loss) per common share   98,451,974   95,625,381   93,974,731   94,884,971
Diluted earnings (loss) per common share $ 0.48 $ 0.44 $ 0.96 $ (0.25)
 
BANKUNITED, INC. AND SUBSIDIARIES
SELECTED RATIOS
 
 
 

Three Months

Ended
 

Three Months

Ended
 

Six Months

Ended
 

Six Months

Ended
Financial ratios June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
Return on average assets (4) 1.59% 1.64% 1.66% (0.44)%
Return on average stockholders' equity (4) 11.76% 12.17% 12.25% (3.40)%
Net interest margin (4) 5.82% 5.99% 5.90% 5.87%
 
 
Capital ratios June 30, 2012

December

31, 2011
Tier 1 risk-based capital 34.82% 41.62%
Total risk-based capital 36.19% 42.89%
Tier 1 leverage 12.83% 13.06%
 
 
Asset quality ratios June 30, 2012

December

31, 2011
Non-performing loans to total loans (1) (3) 0.57% 0.70%
Non-performing assets to total assets (2) 0.99% 1.35%
Allowance for loan losses to total loans (3) 1.10% 1.17%
Allowance for loan losses to non-performing loans (1) 192.86% 167.59%
Net charge-offs to average loans (4) 0.19% 0.62%
 
(1) We define non-performing loans to include nonaccrual loans, loans, other than ACI loans, that are past due 90 days or more and still accruing and certain loans modified in troubled debt restructurings. Contractually delinquent ACI loans on which interest continues to be accreted are excluded from non-performing loans.
 
(2) Non-performing assets include non-performing loans and other real estate owned.
 
(3) Total loans is net of unearned discounts, premiums and deferred fees and costs.
 
(4) Annualized

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