Bank United reports increased earnings for second fiscal quarter 1996.HOUSTON--(BUSINESS WIRE)--May 14, 1996--Bank United of Texas (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 $19.9 million for the quarter ended March 31, 1996 for a 47 percent increase over the comparable period a year ago. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net income increased 24 percent to $41.4 million vs. last year's first-half results. These increases were 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 $29.2 million compared to $22.1 million for the quarter ended March 31, 1995. The bank's total assets increased 11 percent to $11.3 billion vs. $10.1 billion at March 31, 1995 as a result of increased loan purchases. 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 $826 million at March 31, 1996 from $672 million at March 31, 1995, as a result of 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 July: see month. 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. . On May 6, 1996, the bank announced payment of a common stock dividend of $37.04 per share for a total amount of $100 million, plus a related contractual payment of $5.9 million. Second fiscal quarter pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma capital ratio calculations, after considering these payments, indicate that Bank United will remain well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. after this distribution. Bank United, headquartered in 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; , operates a 67-branch consumer and small business 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, 29 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 112 mortgage offices in 29 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
March 31,
------------------- Percent
1996 1995 Change
---- ---- -------
(unaudited)
Summary Income Statement (Note 1) ------------------------
Interest income $ 203.4 $ 173.0 18%
Interest expense 146.0 127.3 15%
------- ------- -----
Net interest income 57.4 45.7 26%
Provision for credit losses 3.2 3.3 -3%
Loan servicing fees and charges 11.6 12.0 -3%
Gains from sales of single family
servicing rights and single family
warehouse loans 9.1 16.1 -43%
Other 7.0 2.5 180%
------- ------- -----
Non-interest income 27.7 30.6 -9%
Non-interest expenses 49.7 51.2 -3%
------- ------- -----
Income before taxes 32.2 21.8 48%
Income tax expense 12.3 8.3 48%
------- ------- -----
Net income 19.9 13.5 47%
Less: Preferred dividends 4.5 2.1 114%
------- ------- -----
Net income applicable to common stock $ 15.4 $ 11.4 35%
======= ======= =====
Operating earnings (net income before
taxes and net gains/losses on sales of
securities, mortgage-backed
securities, and other loans) $ 29.2 $ 22.1 32%
======= ======= =====
---------------------------------------------------------------------
Other Selected Data
-------------------
Total assets -- Period end $11,262 $10,135 11%
-- Average $11,356 $ 9,878 15%
Average interest-earning assets $10,994 $ 9,573 15%
Deposits
Consumer $ 3,843 $ 3,887 -1%
Commercial 886 891 -1%
Wholesale 234 238 -2%
------- ------- -----
Total deposits $ 4,963 $ 5,016 -1%
Stockholders' equity $ 826 $ 672 23%
Mortgage loan applications for the period $ 2,213 $ 1,542 44% Mortgage loan originations for the period $ 1,049 $ 729 44% Servicing portfolio $11,594 $12,032 -4% Return on average assets 0.70% 0.55% Return on average total equity 9.75% 8.29% Return on average common equity 9.72% 8.01% Average equity to average assets 7.22% 6.69% Earnings per share $ 5.36 $ 3.97 Dividends paid per share Common stock $ -- $ -- Preferred stock $ 0.61 $ 0.63
Proforma
March 31,
1996
At March 31, after
Current ------------ Payments
Capital ratios - period end Requirement 1996 1995 (Note 2)
----------- ---- ---- ----------
Tangible capital ratio 1.50% 6.88% 5.65% 5.93%
Core capital ratio 3.00% 6.96% 5.77% 6.01%
Total risk-based capital ratio 8.00% 14.20% 12.43% 12.36%
Tier 1 capital ratio N/A 13.56% 11.92% 11.72%
N/A - Not Applicable
Note 1. March 1995 figures have been restated to reflect the
implementation of SFAS No. 122, "Accounting for Mortgage
Servicing Rights," effective Oct. 1, 1994.
Note 2. On May 6, 1996, the Bank paid a common stock dividend of
$100 million plus a related contractual payment of
$5.9 million.
CONTACT: Bank United of Texas, Houston Vern Stockton, 713/543-6920 (Media) or Lynne King, 713/543-6965 (Investors) |
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