Bank United reports earnings for fiscal quarter 1996.HOUSTON--(BUSINESS WIRE)--Feb. 9, 1996--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 net income of $21.5 million for the quarter ended Dec. 31, 1995 for an 8 percent increase over the comparable period a year ago. This increase was primarily due to increased net interest income on a higher level of interest-earning assets. 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 sales of securities, mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. and other loans) were $31.6 compared to $32.5 million for the period ended Dec. 31, 1994. The bank's total assets increased 20 percent to $11.6 billion vs. $9.6 billion at Dec. 31, 1994 as a result of increased loan purchases. The bank 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 $12.1 billion vs. $10.8 billion at the end of the year-ago quarter. Deposits increased to $5 billion from $4.8 billion a year ago. 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 $811 million at Dec. 31, 1995 from $655 million at Dec. 31, 1994, reflecting the issuance of $100 million of 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. in July 1995, as well as increased retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . 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 67-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, 30 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 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 119 mortgage offices in 31 states; a commercial lending business with nine regional offices; and a financial markets business. The bank is proud of its "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. 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
Three Months Ended
December 31,
------------------- Percent
1995 1994 Change
---- ---- -------
(unaudited)
Summary Income Statement (Note 1) ------------------------
Interest income $ 217.8 $ 154.6 41%
Interest expense 158.1 107.5 47%
------- ------- -----
Net interest income 59.7 47.1 27%
Provision for loan losses 2.7 0.9 200%
Loan servicing fees and charges 10.5 10.8 -3%
Gains from sales of single family
servicing rights and single family
warehouse loans 10.1 22.3 -55%
Other 6.3 2.9 117%
------- ------- -----
Non-interest income 26.9 36.0 -25%
Non-interest expenses 49.0 49.8 -2%
------- ------- -----
Income before taxes 34.9 32.4 8%
Income tax expense 13.4 12.4 8%
------- ------- -----
Net income 21.5 20.0 8%
Preferred dividends (4.6) (2.2) -109%
------- ------- -----
Net income applicable to common stock $ 16.9 $ 17.8 -5%
======= ======= =====
Operating earnings (net income before
taxes and net gains/losses on sales of
securities, mortgage-backed
securities, and other loans) $ 31.6 $ 32.5 -3%
======= ======= =====
---------------------------------------------------------------------
Note
----
Income from loan servicing activities $ 5.4 $ 4.6 17%
--------------------------------------------------------------------- Other Selected Data -------------------
Total assets -- Period end $11,589 $ 9,618 20%
-- Average 11,711 9,178 28%
Average interest-earning assets $11,322 $ 8,876 28%
Deposits
Consumer $ 3,885 $ 3,835 1%
Commercial 862 670 29%
Wholesale 290 264 10%
------- ------- -----
Total deposits $ 5,037 $ 4,769 6%
Stockholders' equity $ 811 $ 655 24%
Mortgage loan applications for the
period $ 1,589 $ 1,353 17%
Mortgage loan originations for the
period 972 824 18%
Servicing portfolio 12,134 10,829 12% Return on average assets 0.74% 0.86% Return on average total equity 10.83% 12.22% Return on average common equity 11.13% 12.54% Average equity to average assets 6.86% 7.08% Earnings per share $ 5.92 $ 6.24
Dividends paid per share
Common stock $ 1.41 $ 1.93
Preferred stock 0.61 0.63
Current
Capital ratios - period end Requirement
-----------
Tangible capital ratio 1.50% 6.53% 5.83%
Core capital ratio 3.00% 6.61 5.97%
Total risk-based capital ratio 8.00% 13.97% 13.13%
Tier 1 capital ratio N/A 13.32% 12.60%
Note 1. December 1994 figures have been restated to reflect the
implementation of SFAS No. 122, "Accounting for Mortgage
Servicing Rights," effective Oct. 1, 1994.
N/A - Not Applicable CONTACT: Bank United Media Relations: Vern Stockton, 713/543-6920, or Investor Relations Investor relations The process by which the corporation communicates with its investors. , Lynne King, 713/543-6965 |
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