BankUnited Announces Fourth Quarter and Fiscal Year 2007 Results.Fourth Quarter Loan Loss Provision Increased to $19.1 Million CORAL GABLES Coral Gables, city (1990 pop. 40,091), Miami-Dade co., SE Fla., SW of Miami; inc. 1925. Founded at the height of the Florida land boom, Coral Gables is a noted planned city, with tree-lined boulevards and Mediterranean-style buildings. , Fla. -- BankUnited Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BKUNA): * Fiscal year 2007 net income of $81.4 million * Total assets of $15.0 billion, up 11% from Sept. 30th last year * Total deposits of $7.1 billion, up 17% from Sept. 30th last year * Core deposits of $5.1 billion, up 16% from Sept. 30th last year BankUnited Financial Corporation (NASDAQ: BKUNA), parent of BankUnited FSB (FrontSide Bus) See system bus. FSB - front side bus , today reported net income of $81.4 million for the fiscal year ended Sept. 30, 2007, compared to $83.9 million for the fiscal year ended Sept. 30, 2006. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the 2007 fiscal year were $2.14, compared to $2.30 for the 2006 fiscal year. Excluding a $5.0 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge ($3.3 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ), or $0.09 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for other-than-temporary impairments on various investment securities, earnings were $84.7 million, or $2.23 per diluted share, for the fiscal year ended Sept. 30, 2007. Net income for the quarter ended Sept. 30, 2007, was $6.4 million, or $0.17, per diluted share, compared to $0.63 per share for the same quarter last year. Excluding the $5.0 million pre-tax charge ($3.3 million after-tax), or $0.09 per diluted share, for other-than-temporary impairments on various investment securities, earnings were $9.7 million, or $0.26 per diluted share, for the fourth quarter of fiscal 2007. "While we are pleased with our earnings for the fiscal year, we are disappointed with our fourth-quarter results," said Alfred R. Camner, BankUnited's chairman and chief executive officer. "It is clear that this difficult economic climate will continue. There is significant volatility in the markets, the housing sector is still in a downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , and non-performing assets have not yet leveled off. However, we do have several things in our favor: our capital position is strong, we are a Florida-based banking franchise, and our net charge-offs remain manageable. "In our pre-release we reported a loan loss provision of $8 to $10 million. We have increased the provision to $19.1 million. This change is based on industry trends, including further difficulties in the housing markets, particularly in certain geographic areas that have been impacted by price decreases. "The environment will continue to be challenging. Succeeding in this type of downturn requires focus and experience - two of BankUnited's management team's strengths. Looking ahead, we will concentrate on achieving efficiencies in all of our business lines and absorbing the growth of the last two years. In addition, we will focus on managing delinquencies in our mortgage portfolio and implementing expense-control measures. We have built a strong Florida franchise complemented by a national mortgage lending operation, and we will continue to build upon this base." Ramiro Ortiz, BankUnited's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added, "In fiscal year 2007, our commercial and neighborhood-banking businesses continued to perform strongly. We showed double-digit-percentage increases in total and core deposits, and our small business and commercial banking areas continued to add lending and depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. relationships. We look for all of our business lines to continue on a pace of moderate growth in the upcoming year. "We opened three branches in the fourth quarter and ten for the year, including entry into new markets in Indian River Indian River, lagoon, c.100 mi (160 km) long, E Fla., parallel to the east coast from N of Titusville to Stuart. Along the lagoon a variety of citrus and vegetable products are grown and transported by small boats to towns on its waterway and those further inland. and Pinellas counties. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. June 30, 2007, FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). information, BankUnited's deposit market share in Florida grew 17%, and, for the second-consecutive year, our market share grew in Miami-Dade, Broward and Palm Beach counties. Our neighborhood-banking strategy continues to work, and our fees on loans and deposits increased more than 28%. We intend to add fewer branches in 2008 and focus on deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound relationships with customers in the markets we serve. "Wholesale lending has been an important part of BankUnited's history, and we remain committed to this line of business. Wholesale, like every other area of our company, is focused on streamlining and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar processes in an effort to become more efficient. By focusing on the strategies that helped us grow the bank in the past, we will work our way through this difficult cycle." Asset Quality Non-performing assets as a percentage of total assets increased to 1.39% at Sept. 30, 2007, from 0.86% at June 30, 2007, and from 0.16% at Sept. 30, 2006. Almost all of the increase in non-performing assets during the quarter was related to residential loans. Residential net charge-offs in the fourth quarter were $2.9 million, net of $1.2 million in estimated recoveries from mortgage insurance. Consumer loan net charge-offs in the fourth quarter were $619,000, and commercial portfolio net charge-offs were $2.1 million. Total net charge-offs for the quarter ended Sept. 30, 2007, were $5.6 million, net of estimated insurance recoveries, compared to net recoveries of $571,000 for the quarter ended Sept. 30, 2006. Net charge-offs for the commercial portfolio include the last remaining portion of a previously disclosed $3.0 million commercial real estate senior mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). . During the fourth quarter, the company converted the senior mezzanine loan to subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". of the parent company, which resulted in a net charge of $1.8 million, which is included in the $2.1 million in net charge-offs related to the commercial loan portfolio. For fiscal 2007, net charge-offs related to the residential portfolio were $4.0 million, net of $1.2 million in estimated recoveries from mortgage insurance. Total net charge-offs for fiscal 2007 were $9.3 million, net of estimated insurance recoveries. This represents 0.03% and 0.08% of average annual loans, respectively. At Sept. 30, 2007, BankUnited had 541 loans in foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. , which represents 1.5% of the company's 35,188 residential loans. Based on recent appraisals, the current weighted average loan-to-value of the loans in foreclosure as of Sept. 30, 2007, was approximately 86%, including the effects of mortgage insurance. For the quarter ended Sept. 30, 2007, the provision for loan loss totaled $19.1 million, compared to $4.6 million for the quarter ended Sept. 30, 2006. The allowance for loan loss was $58.6 million at Sept. 30, 2007, compared to $36.4 million at Sept. 30, 2006. The allowance for loan losses as a percentage of total loans was 0.46% as of Sept. 30, 2007, compared to 0.32% as of Sept. 30, 2006, and 0.37% as of June 30, 2007. Capital Ratios and Book Value BankUnited FSB continues to maintain its strong capital position in excess of regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . Core and risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. were 7.8% and 15.4%, respectively, at Sept. 30, 2007. During fiscal 2007, the company raised $184 million through the sale of 3,680,000, 6.75% HiMEDS equity units, which mandatorily convert to common equity in May 2010 at a maximum price of $32.76. During the quarter, BankUnited repurchased 315,413 shares of its Class A Common Stock. For fiscal year 2007, BankUnited repurchased 1,738,295 shares of its Class A Common Stock. Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: was $22.71 as of Sept. 30, 2007, up from $20.34 at Sept. 30, 2006. Net-Interest Margin Net-interest margin for the quarter ended Sept. 30, 2007, was 2.30%, compared to 2.40% for the preceding quarter, and 2.26% for the same quarter last year. While the core business margin did increase slightly, it was offset by the carrying cost Noun 1. carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership carrying charge opportunity cost - cost in terms of foregoing alternatives of the non-performing assets. Net-interest margin for the fiscal year was 2.36%, up from 2.13% for the 2006 fiscal year. Deposit Growth Total deposits increased 17% to $7.1 billion at Sept. 30, 2007, up from $6.1 billion at Sept. 30, 2006. Core deposits increased to $5.1 billion at Sept. 30, 2007, up 16% from Sept. 30, 2006. Non-interest-bearing deposits decreased to $342 million at Sept. 30, 2007, down 13% from Sept. 30, 2006. According to a report issued by the FDIC, BankUnited had deposit market share in Florida of 1.94% as of June 30, 2007, up from 1.66% at June 30, 2006. Loan Production and Balances Total loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. for the quarter were $1.0 billion, down 39.7% from the same quarter last year. Total loan originations for the 2007 fiscal year were $4.6 billion, down 32.2% from the 2006 fiscal year. After loan sales and repayments, the total net loan portfolio was $12.6 billion at Sept. 30, 2007, compared to $12.3 billion at June 30, 2007, and $11.4 billion at Sept. 30, 2006. Commercial and commercial real estate loan balances increased to $1.2 billion at Sept. 30, 2007, up 4% from Sept. 30, 2006. Consumer loan balances, which include specialty consumer mortgage loans originated through branch offices, increased at Sept. 30, 2007, by 6% from $1.1 billion at Sept. 30, 2006. Reflecting current market conditions, residential mortgage loan originations, which exclude specialty consumer mortgage loans originated through branch offices, were $818 million for the quarter, down 45% from the quarter ended Sept. 30, 2006. For the quarter, the monthly option-ARM represented only 24% of the company's portfolio production, and newer mortgage loan products represented 76% of the company's portfolio production. For the 2007 fiscal year, residential mortgage loan originations were $3.8 billion, down 32.8% from the 2006 fiscal year. Residential mortgage loan balances increased 11% to $10.0 billion at Sept. 30, 2007, from $9.0 billion at Sept. 30, 2006. As of Sept. 30, 2007, BankUnited's option-ARM balances totaled $7.6 billion, which represented 70% of the residential loan portfolio and 60% of the total loan portfolio. For the quarter ended Sept. 30, 2007, the growth in negative amortization was $48 million, compared to $46.4 million for the quarter ended June 30, 2007. Of the $7.6 billion in option-ARM balances, $6.5 billion had negative amortization of $270 million, or 3.55%, of the option-ARM portfolio. In almost all circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , loans originated with loan-to-value (LTV LTV See: Loan-to-value ratio ) ratios greater than 80% require the purchase of mortgage insurance. With the adjustment for coverage of mortgage insurance, the average LTV of the residential portfolio at inception was 74.3%. The average outstanding balance of a residential loan in the portfolio as of Sept. 30, 2007, was $287,000. Non-Interest Income Total non-interest income, which includes the $5.0 million pre-tax charge ($3.3 million after-tax), for other-than-temporary impairments on the various investment securities previously mentioned, was $2.6 million for the fourth quarter of 2007, down $7.6 million, or 75%, from the same quarter last year. For the 2007 fiscal year, total non-interest income was $32.6 million, down $3.0 million, or 9%, from the 2006 fiscal year. Fee income, which includes loan fees, deposit fees and other fees (excluding loan-servicing fees), was $3.8 million for the fourth quarter of fiscal 2007, up 28% from the fourth quarter of fiscal 2006. Fee income for the 2007 fiscal year was $14.1 million, up 21% over the 2006 fiscal year. Gain on sale of assets, including loans and securities, totaled $178,000 for the fourth quarter of 2007, compared to $4.5 million for the same quarter of fiscal 2006. Gain on sale of assets, including loans and securities, totaled $9.2 million for the 2007 fiscal year, compared to $13.3 million for the 2006 fiscal year. BankUnited sold $221 million of residential mortgage loans during the quarter ended Sept. 30, 2007, for a gain of $225,000, net of hedging activity, compared to sales of $470 million of residential mortgage loans, for a gain of $4.6 million, for the quarter ended Sept. 30, 2006. The fourth-quarter gain resulted from the sale of conforming loans Conforming loans Mortgage loans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities. and traditional-ARM loans. BankUnited sold $1.2 billion of residential mortgage loans during the 2007 fiscal year for a gain of $9.8 million, net of hedging activity, compared to a gain of $13.4 million on loan sales for the 2006 fiscal year. BankUnited's portfolio of residential loans serviced for others was $1.6 billion at Sept. 30, 2007, compared to $1.6 billion at Sept. 30, 2006. Servicing fees, net of amortization, were $785,000 for the fourth quarter of fiscal 2007, compared to $1.1 million for the fourth quarter of fiscal 2006. For fiscal 2007, servicing fees net of amortization were $3.7 million, compared to $3.5 million for fiscal 2006. BankUnited booked an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $329,000 for the fourth quarter of fiscal 2007 and $1.3 million for fiscal year 2007, based on valuations of the servicing portfolio by independent third parties. Expenses and Efficiency Ratio Non-interest expense increased $3.7 million for the fourth quarter of 2007 to $54.2 million, up 7% from $50.5 million in the third quarter of fiscal 2007 and 28% from $42.2 million for the same quarter of fiscal 2006. Non-interest expense increased $50.9 million for the 2007 fiscal year, up 34% from $150.2 million in the 2006 fiscal year. While BankUnited opened 10 new branches in fiscal year 2007, the company anticipates opening only two branches in fiscal year 2008. Contributing to the higher expenses incurred in the fourth quarter were higher occupancy and equipment related to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. expansion of the branch network and related infrastructure. Additional expenses incurred during the fourth quarter included those associated with decreased mortgage-loan production and pipeline management as well as costs related to default administration. The efficiency ratio for the quarter was 65.25%, compared to 51.02% for the same quarter last year. The efficiency ratio for the 2007 fiscal year was 56.44%, compared to 52.49% for the 2006 fiscal year. Excluding the $5.0 million pre-tax charge ($3.3 million after-tax) for other-than-temporary impairments on the various investment securities previously mentioned, the efficiency ratio was 61.52% for the fourth quarter of fiscal 2007 and 55.65% for fiscal year 2007. Dividends on Class A Common Stock During the fourth quarter, BankUnited's board of directors declared and paid its eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval consecutive quarterly cash dividend of one-half cent ($0.005) per share of its Class A Common Stock. BankUnited anticipates that it will continue to declare and pay such dividends on a quarterly basis, subject to termination at any time at the sole discretion of the board. About BankUnited BankUnited Financial Corp. is the holding company for BankUnited FSB, the largest banking institution headquartered in Florida. At Sept. 30, 2007, BankUnited had assets of $15.0 billion. Serving customers through 86 branches in 13 coastal counties, including Miami-Dade, Broward, Palm Beach, Martin, St. Lucie St. Lucie may refer to:
manatee Any of three species (family Trichechidae) of slow-moving, shallow-water herbivorous mammals. Manatees have a tapered body ending in a rounded flipper, no hind flippers, and foreflippers near the head. , Hillsborough, Sarasota, Lee, Indian River and Pinellas, BankUnited offers a full spectrum of consumer and commercial banking products and services, including online products that can be accessed through http://www.bankunited.com. For additional information, call (877) 779-2265. A conference call to discuss the earnings for the quarter will be held at 2 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today with Chairman and Chief Executive Officer Alfred R. Camner, President and Chief Operating Officer Ramiro Ortiz, Chief Financial Officer Bert Lopez and Senior Executive Vice President of Corporate Finance James Foster James Foster may refer to:
The call may be accessed via a live Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the webcast at www.bankunited.com or through a dial-in telephone number at (888) 300-2666 (domestic) or (706) 902-0105 (international). The call leader is Alfred R. Camner. The name of the call is BankUnited, and the access code for the call is 19336920. A replay of the call will be available from 5:30 p.m. EDT on Oct. 23 through 11:59 p.m. EDT on Oct. 30 by calling toll-free (800) 642-1687 (domestic) or (706) 645-9291 (international). The pass code for the replay is 19336920. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release may contain certain forward-looking statements, which are based on management's expectations regarding factors that may impact the company's earnings and performance in future periods. Words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. such as: "will likely result," "expect," "will continue," "anticipate," "estimate," "project," "believe," "intend," "should," "would," "may," "can," "could," "plan," "target" and similar expressions are intended to identify "forward-looking statements." Actual results or performance could differ from those implied or contemplated by such statements. Factors that could cause future results and performance to materially from current management expectations included, but are not limited to, general business and economic conditions, either nationally or regionally; fiscal or monetary policies; significant weather events such as hurricanes; changes or fluctuations in the interest rate environment; a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in credit quality and/or a reduced demand for credit; reduced deposit flows and loan demand; real estate values; competition from other financial service companies in our markets; legislative or regulatory changes, including, among others, changes in accounting standards, guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. and policies; the issuance or redemption of additional company debt or equity; the concentration of operations in Florida, if Florida business or economic conditions decline; reliance on other companies for products and services; the impact of war and the threat and impact of terrorism; volatility in the market price of the company's common stock; and other economic, competitive, servicing capacity, governmental, regulatory and technological factors affecting the company's operations, price, products and delivery of services. Please refer to the documents that BankUnited Financial Corporation files periodically with the SEC, such as the Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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