BANK UNITED REPORTS EARNINGS FOR THIRD FISCAL QUARTER 1995.HOUSTON--(BUSINESS WIRE)--Aug. 3, 1995--Bank United of Texas FSB (FrontSide Bus) See system bus. FSB - front side bus (NYSE NYSE See: New York Stock Exchange :BKU BKU Bharatiya Kisan Union BKU Burger King University BKU Bayerische Karate Union (German) BKU Backup Unit PrA and PrB) today reported operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (net income before taxes and net gains/losses on interest-earning assets) of $25.4 million for the quarter ended June June: see month. 30, 1995 for a 22 percent increase over the year-ago period. Year to date operating earnings were up to $78.8 million compared with $71.9 million for last year's comparable period. While improved, operating results were impacted by the effect of rapidly rising interest rates on the bank's adjustable rate mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. portfolio. This effect was mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by an increase in interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , including single family loan acquisitions and increases in construction lending. Additionally, the increased fee income effect of a larger servicing portfolio partially offset the reduction in the bank's mortgage loan production that resulted from the higher interest rate environment in 1994. Net income after taxes was $14.8 million for the quarter and $45.4 million for the first nine months vs. $55.4 million and $113.2 million for the comparable periods the previous year, primarily as the result of non-recurring tax benefits derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from an accounting rule applied in 1994. The bank's deposits increased 9 percent to $5.1 billion from $4.7 billion a year ago and total assets increased to $11.3 billion vs. $8.5 billion at June 30, 1994. Bank United's total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased to $683 million at June 30, 1995 from $637 million at June 30, 1994. The bank also increased its loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. portfolio to $12.4 billion vs. $8.7 billion at the end of the year ago quarter. Other activities during the fiscal year to date period included the introduction of small business banking, growth in the mortgage banker Mortgage Banker A company, individual or institution that originates, sells and services mortgage loans. Notes: Don't confuse a mortgage banker with a mortgage broker. finance deposit business, and the receipt of an "Outstanding" Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. rating from the bank's federal regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. . Bank United of Texas FSB, headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , operates a 66-branch retail banking network in Texas, including 34 in the greater Houston Houston–Sugar Land–Baytown is a 10-county metropolitan area defined by the Office of Management and Budget. It is located along the Gulf Coast region in the U.S. state of Texas. area, 28 in the Dallas/Ft. Worth Metroplex A metroplex is large metropolitan area containing several cities and their suburbs.[1] It is also sometimes used as an alternative to metropolis or megalopolis, which is a chain of continuous metropolitan areas. and two each in Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum and San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. ; a mortgage banking network of 127 mortgage offices in 31 states; and a wholesale banking division. Bank United is FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. and an equal housing lender The terms Equal Housing Lender and Equal Opportunity Lender are synonymous and refer to all FDIC insured banks in the United States. Such banks are prohibited from discriminating on the basis of race, color, religion, national origin, sex, handicap, or familial status. . -0-
BANK UNITED OF TEXAS FSB
SUPPLEMENTAL FINANCIAL INFORMATION
(dollars in millions, except per share data)
At or for the
Three Months Ended
June 30,
------------------- Percent
1995 1994 Change
---- ---- -------
Summary Income Statement
------------------------
Interest income $ 194.8 $ 119.1 64%
Interest expense 143.6 74.4 93%
------- ------- -----
Net interest income 51.2 44.7 15%
Provision for loan losses 10.4 0.8 1200%
Loan servicing fees and charges 10.3 8.0 29%
Net gains (losses) on interest-
earning assets (1.5) (4.1) 63%
Gains from sales of servicing rights 11.2 18.7 -40%
Other 3.2 3.8 -16%
------- ------- -----
Non-interest income 23.2 26.4 -12%
Non-interest expenses 40.1 53.5 -25%
------- ------- -----
Income before taxes 23.9 16.8 42%
Income tax expense (net of FAS 109
tax benefit in 1994) 9.1 (38.6) -124%
------- ------- -----
Net income 14.8 55.4 -73%
Preferred dividends (2.1) (2.1) --
------- ------- -----
Net income applicable to common stock $ 12.7 $ 53.3 -76%
======= ======= =====
Operating earnings (net income before
taxes and net gains/losses on interest-
earning assets) $ 25.4 $ 20.9 22%
======= ======= =====
---------------------------------------------------------------------
Note
----
Income from loan servicing activities $ 4.7 $ 3.6 31%
--------------------------------------------------------------------- Other Selected Data -------------------
Total assets -- Period end $11,331 $ 8,481 34%
-- Average 10,668 7,926 35%
Average interest-earning assets $10,308 $ 7,635 35%
Deposits
Retail $ 3,906 $ 3,926 -1%
Commercial 861 284 203%
Wholesale 354 501 -29%
------- ------- -----
Total deposits $ 5,121 $ 4,711 9%
Stockholders' equity $ 683 $ 637 7% Mortgage loan applications for the period $ 1,783 $ 1,768 1% Mortgage loan originations for the period 896 1,177 -24% Servicing portfolio 12,424 8,668 43% Return on average assets 0.55% 2.81% Return on average total equity 8.74% 36.54% Return on average common equity 8.54% 40.85% Average equity to average assets 6.34% 7.68% Earnings per share $ 4.39 $ 18.65 Dividends paid per share Common stock $ 0.44 $ 1.88 Preferred stock 0.64 0.64
Current
Capital ratios - period end Requirement
-----------
Tangible capital ratio 1.50% 5.20% 6.16%
Core capital ratio 3.00% 5.30% 6.36%
Total risk-based capital ratio 8.00% 11.49% 14.88%
Tier 1 capital ratio N/A 10.87% 14.32%
N/A - Not Applicable
BANK UNITED OF TEXAS FSB
SUPPLEMENTAL FINANCIAL INFORMATION
(dollars in millions, except per share data)
At or for the
Nine Months Ended
June 30,
------------------- Percent
1995 1994 Change
---- ---- -------
Summary Income Statement
------------------------
Interest income $ 522.4 $ 361.1 45%
Interest expense 378.4 220.2 72%
------- ------- -----
Net interest income 144.0 140.9 2%
Provision for loan losses 14.6 3.6 306%
Loan servicing fees and charges 33.1 21.9 51%
Net gains (losses) on interest-
earning assets (5.3) 8.7 -161%
Gains from sales of servicing rights 48.2 50.0 -4%
Other 9.0 9.8 -8%
------- ------- -----
Non-interest income 85.0 90.4 -6%
Non-interest expenses 140.9 147.1 -4%
------- ------- -----
Income before taxes 73.5 80.6 -9%
Income tax expense (net of FAS 109
tax benefit in 1994) 28.1 (32.6) -186%
------- ------- -----
Net income 45.4 113.2 -60%
Preferred dividends (6.4) (6.4) --
------- ------- -----
Net income applicable to common stock $ 39.0 $ 106.8 -63%
======= ======= =====
Operating earnings (net income before
taxes and net gains/losses on interest-
earning assets) $ 78.8 $ 71.9 10%
======= ======= =====
---------------------------------------------------------------------
Note
----
Income from loan servicing activities $ 12.6 $ 10.4 21%
--------------------------------------------------------------------- Other Selected Data -------------------
Total assets -- Period end $11,331 $ 8,481 34%
-- Average 9,905 8,182 21%
Average interest-earning assets $ 9,583 $ 7,778 23%
Deposits
Retail $ 3,906 $ 3,926 -1%
Commercial 861 284 203%
Wholesale 354 501 -29%
------- ------- -----
Total deposits $ 5,121 $ 4,711 9%
Stockholders' equity $ 683 $ 637 7% Mortgage loan applications for the period $ 4,678 $ 6,572 -29% Mortgage loan originations for the period 2,449 4,575 -46% Servicing portfolio 12,424 8,668 43% Return on average assets 0.61% 1.85% Return on average total equity 9.17% 25.13% Return on average common equity 9.03% 27.61% Average equity to average assets 6.68% 7.37% Earnings per share $ 13.60 $ 37.35 Dividends paid per share Common stock $ 2.37 $ 4.24 Preferred stock 1.90 1.90
Current
Capital ratios - period end Requirement
-----------
Tangible capital ratio 1.50% 5.20% 6.16%
Core capital ratio 3.00% 5.30% 6.36%
Total risk-based capital ratio 8.00% 11.49% 14.88%
Tier 1 capital ratio N/A 10.87% 14.32%
N/A - Not Applicable CONTACT: Bank United of Texas FSB, Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; Vern Stockton Stockton, city (1990 pop. 210,943), seat of San Joaquin co., central Calif., on the San Joaquin River; inc. 1850. One of the fastest-growing U.S. cities during the late 20th cent., Stockton is an inland seaport located at the head of the San Joaquin delta. , media relations, 713/965-6920 or Lynne Lynne may refer to: In places:
The process by which the corporation communicates with its investors. , 713/965-6965 |
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