Bank United reports earnings for 1995 fiscal year.HOUSTON--(BUSINESS WIRE)--Nov. 15, 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 investment securities and loans) of $102.7 million for the year ended Sept. 30, 1995 for a 17 percent increase over last year's total. This operating earnings growth was the result of increased income from interest-earning assets, increased fee income from the mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. portfolio and increases in commercial bank lending. Fiscal 1995 after tax net income was $62.7 million compared with $124.8 million for fiscal year 1994, down for the year primarily as a result of non-recurring tax benefits derived from an accounting rule applied in 1994 in the amount of $58.2 million. The bank's deposits increased 9 percent to $5.2 billion from $4.8 billion a year ago and total assets increased to $12 billion vs. $8.9 billion at Sept. 30, 1994. Bank United's 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 $795 million at Sept. 30, 1995 from $646 million at Sept. 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 $12.5 billion vs. $8.9 billion at the end of last fiscal year. Other activities during the fiscal year 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, the sale of 4 million shares of a newly issued preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. at a par value of $25 each, 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. 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 33 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, 29 in the Dallas/Ft. Worth Metroplex and two each in Austin 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 122 mortgage offices in 30 states; a commercial lending division with nine regional offices; and a financial markets business. Bank United is FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insured 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
Years Ended
September 30,
------------------- Percent
1995 1994 Change
---- ---- -------
Summary Income Statement
------------------------
Interest income $ 746.7 $ 494.7 51%
Interest expense 542.4 310.7 75%
------- ------- -----
Net interest income 204.3 184.0 11%
Provision for loan losses 24.3 7.0 247%
Loan servicing fees and charges 43.5 31.7 37%
Gains from sales of servicing rights
and warehouse loans 60.5 63.3 -4%
Net gains (losses) on investment
securities and loans (1.2) 10.6 -111%
Other 12.2 13.3 -8%
------- ------- -----
Non-interest income 115.0 118.9 -3%
Non-interest expenses 193.5 197.7 -2%
------- ------- -----
Income before taxes 101.5 98.2 3%
Income tax expense/(benefit)-(net of
FAS 109 tax benefit in 1994) 38.8 (26.6) -246%
------- ------- -----
Net income 62.7 124.8 -50%
Preferred dividends (10.6) (8.6) 23%
------- ------- -----
Net income applicable to common stock $ 52.1 $ 116.2 -55%
======= ======= =====
Operating earnings (net income before
taxes and net gains/losses on investment
securities and loans) $ 102.7 $ 87.6 17%
======= ======= =====
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Note
----
Income from loan servicing activities $ 17.9 $ 12.7 41%
--------------------------------------------------------------------- Other Selected Data -------------------
Total assets -- Period end $11,978 $ 8,901 35%
-- Average 10,429 8,279 26%
Average interest-earning assets $10,090 $ 7,897 28%
Deposits
Retail $ 3,946 $ 3,897 1%
Commercial 912 579 58%
Wholesale 324 288 13%
------- ------- -----
Total deposits $ 5,182 $ 4,764 9%
Stockholders' equity $ 795 $ 646 23%
Mortgage loan applications for the period $ 6,410 $ 7,992 -20% Mortgage loan originations for the period 3,447 5,484 -37% Servicing portfolio 12,532 8,921 40% Return on average assets 0.60% 1.51% Return on average total equity 9.06% 20.37% Return on average common equity 8.93% 22.03% Average equity to average assets 6.64% 7.40% Earnings per share $ 18.23 $ 40.62 Dividends paid per share Common stock $ 2.37 $ 4.24 Preferred stock 1.43 2.53
Current
Capital ratios - period end Requirement
-----------
Tangible capital ratio 1.50% 6.20% 6.01%
Core capital ratio 3.00% 6.29% 6.17%
Total risk-based capital ratio 8.00% 13.45% 14.02%
Tier 1 capital ratio N/A 12.82% 13.44%
-0-
N/A - Not Applicable
CONTACT: Bank United of Texas FSB Vern Stockton, media relations, 713/543-6920 or Lynne King, investor relations Investor relations The process by which the corporation communicates with its investors. , 713/543-6965 |
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