BankUnited Announces Record 1st Quarter, Net Income Up 26% from 1st Quarter Last Year.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:BKUNA): 1st Quarter 2005 Highlights: --Record net income of $14.5 million, up 26% over the 1st quarter last year --Total loan production of $1.1 billion, up 52% over the 1st quarter last year --Total deposits of $3.7 billion, up 13% from December December: see month. 31st last year --Non-interest bearing deposits of $262 million, up 27% from December 31st last year --Non-performing assets as a percentage of total assets of 0.19%, down from 0.41% from December 31st last year --Total assets of $8.9 billion, up 23% from December 31st last year --Market capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of $966 million, up 25% from December 31st last year BankUnited Financial Corporation (Nasdaq:BKUNA), parent of BankUnited FSB (FrontSide Bus) See system bus. FSB - front side bus , today reported record net income for the first quarter ended December 31, 2004. Net income for the quarter was $14.5 million, up 26% from $11.6 million for the same quarter last year. Basic and 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. earnings were $0.48 and $0.45 per share, respectively, for the quarter, up from $0.39 and $0.36 per share, respectively, for the same quarter last year. BankUnited's Chairman and Chief Executive Officer Alfred Alfred, 849–99, king of Wessex (871–99), sometimes called Alfred the Great, b. Wantage, Berkshire. Early Life The youngest son of King Æthelwulf, he was sent in 853 to Rome, where the pope gave him the title of Roman consul. R. Camner stated, "We are proud to announce our 16th consecutive quarter of record net income. Through the diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d efforts of our team, we have seen an increase in several key indicators, including loan production, total deposits and non-interest-bearing deposits. "During our 20th year celebration, we have continued our relentless focus on the basics - outstanding customer service, a diverse array of products and an understanding of our client's needs. This strategy, coupled with our micro-market/neighborhood banking efforts, has resulted in increases in net income for the quarter. As we continue to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. relationships with our customers, we will continue to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our position as the financial institution of choice." 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. Ramiro Ortiz Ortiz is a surname of Hispanic origin. It may refer to: Persons
"We are the largest banking institution headquartered in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , based on assets, yet we are increasingly viewed as the neighborhood bank in the communities we serve. As we add branches and grow, we will continue to focus on service and our core values." Loan Production 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. increased 52% over the same quarter last year. Residential mortgage loan originations, which include specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. consumer mortgage loans originated through branch offices, were $869 million for the quarter, up 64% over the first quarter of last year. Consumer loan production was $56 million this quarter, up 36% over the same quarter last year. Commercial real estate production was $83 million for the quarter, up 9.6% over the same quarter last year. Commercial loan production was $61 million, up 5.4% over the same quarter last year. Strong loan production contributed to significant growth in the Company's loan portfolio balances during the quarter. BankUnited's total loans grew by $566 million, or 9.8%, during the quarter to $6.3 billion as of December 31, 2004. This growth included a $535 million increase in residential mortgage loan balances, including specialty consumer mortgage loans. Deposit Growth Total deposits increased to $3.7 billion at December 31, 2004, up from $3.3 billion at December 31, 2003. Core deposits, which include checking, savings and money market accounts, grew to $1.7 billion as of December 31, 2004, as compared to $1.5 billion as of December 31, 2003. Core deposits comprised approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 45% of total deposits as of December 31, 2004, and December 31, 2003. Non-interest bearing deposits were $262 million at December 31, 2004, up 27% from December 31, 2003. Net Interest Margin The net interest margin decreased this quarter to 1.81%, down from 1.90% for the preceding quarter and down from 1.91% for the same quarter last year. This decrease resulted primarily from the lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. effect on the re-pricing of the 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. loans as short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. increased during the quarter. Additionally the margin was adversely affected by the unanticipated level of prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. of mortgage loans. A significant portion of BankUnited's loan portfolio consists of adjustable rate mortgages, of which a substantial amount is indexed to the Monthly Treasury Average. Non-Interest Income Total non-interest income reached $6.9 million for the quarter, up 27% over the same quarter last year. Non-interest income included gains from the sale of loans, investments and mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. of $2.0 million for the quarter ended December 31, 2004, as compared to $1.2 million for the same quarter last year. Fee income, which includes loan fees, deposit fees and other fees (excluding 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. fees), was $2.8 million for the first quarter of fiscal 2005, up 9.5% compared to the same quarter last year. Insurance and investment income for the quarter was $1.0 million, up 2.2% over the same quarter last year and down 10% from the preceding quarter. During the quarter, BankUnited experienced a slow-down in annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. sales, reflecting the effects of a rising interest rate environment in which customers elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to place a greater percentage of their funds into deposit accounts. BankUnited's portfolio of residential loans serviced for others was $1.2 billion at December 31, 2004. BankUnited provided for the amortization of $0.8 million of servicing rights for the quarter, compared to $0.8 million for the previous quarter and $1.5 million for the same quarter last year. This amortization, offset by fees earned on these loans of $0.9 million, resulted in net revenue of $88,000 in the first quarter. Expenses and Efficiency Ratio Non-interest expense increased $3.6 million for the quarter, or 19%, from the same quarter in the prior fiscal year. This increase is due in part to a $1.3 million gain recorded during the quarter ended December 31, 2003 from fair value adjustments to derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. reflected as a credit in other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. . There were no significant gains or losses during the quarter ended December 31, 2004 from fair value adjustments to derivatives. The remaining increase of $2.3 million reflects the company's continuing strategic investment in infrastructure, new banking offices, and the hiring of new talent to perform vital roles. The efficiency ratio was 50.24% for the quarter, an improvement from 51.46% for the same quarter last year. Asset Quality Non-performing assets as a percentage of total assets improved to 0.19% from 0.20% for the previous quarter, and were down from 0.41% at December 31, 2003. The net annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. ratio for the quarter remained flat at 0.05% compared to the preceding quarter. There can be no assurance that additional provisions for loan losses will not be required in future periods. The allowance for loan losses as a percentage of total loans was 0.39% as of December 31, 2004, compared to 0.51% as of December 31, 2003, and 0.42% as of September September: see month. 30, 2004. While the current level is relatively low compared to the banking industry in general, management believes the current allowance to be prudent given the composition of its loan portfolio, which is more than 90% secured by real estate. 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 7.3% and 15.2%, respectively, at December 31, 2004. 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 $16.39 as of December 31, 2004, up from $15.03 at December 31, 2003. Convertible Notes BankUnited has elected and agreed to pay only cash in settlement of the principal amount of its outstanding 3.125% Convertible Senior Notes in respect of its conversion obligations. As a result, BankUnited will reflect the effects of the Convertible Senior Notes shares in 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 using the treasury stock method. Under current accounting rules, until the conversion price of the Notes is reached, no additional earnings dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. will take place. As the price of the Company's stock exceeds the conversion price, an increasing number of shares will be included in diluted earnings per share. About BankUnited BankUnited Financial Corporation is the parent company of BankUnited FSB, which, with $8.9 billion in assets, is the largest banking institution headquartered in Florida. Offering a full array of consumer and commercial banking products and services, BankUnited operates 50 banking offices throughout Miami-Dade, Broward Broward could refer to:
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 at http://www.bankunited.com. BankUnited's Class A Common Stock trades on the NASDAQ National Market under the trading symbol Trading symbol See: Ticker symbol BKUNA. A conference call will be held on Wednesday Wednesday: see week. , January January: see month. 19, 2005, at 2 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. , with Chairman and Chief Executive Officer Alfred R. Camner, President and Chief Operating Officer Ramiro Ortiz, and Chief Financial Officer Bert Lopez Lo·pez , Nancy Born 1957. American golfer who in 1987 achieved her 35th career victory and was inducted into the Ladies Professional Golf Association Hall of Fame. , to discuss the earnings for the quarter. The toll-free dial-in number for the conference call is 800-238-9007. The call leader is Alfred R. Camner. The name of the call is BankUnited, and the access code for the call is 8203943. A replay of the call will be available from 4 p.m. EST on January 19, 2005, through 11:59 p.m. EST on January 25, 2005, by calling toll-free (domestic) 888-203-1112, (international) 719-457-0820. The pass code for the replay is 8203943. 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," "may," "can," "could," "plan," "target" and similar expressions are intended to identify "forward-looking statements." Actual results or performance could differ from those implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. or contemplated by such statements. Factors that could cause future results and performance to vary materially from current management expectations include, but are not limited to, general business and economic conditions; fiscal and monetary policies; war and terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. ; changes in interest rates; deposit flows; loan demand and real estate values; competition with other providers of financial products and services; the issuance or redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of additional company equity or debt; volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in the market price of our common stock; changes in accounting principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; changes in laws or regulation; reliance on other companies for products and services; and other economic, competitive, servicing capacity, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and technological factors affecting the company's operations, pricing, products and delivery of services.
BankUnited Financial Corporation
Quarter Ended December 31, 2004 Earnings Release
----------------------------------------------------------------------
For the Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
---------------------------------- ----------- ----------- -----------
Operations Data: 2004 2004 2003
---------------------------------- ----------- ----------- -----------
(dollars and shares in thousands,
except per share amounts)
Interest income:
Interest and fees on loans $ 70,103 $ 63,099 $ 54,361
Interest on mortgage-backed
securities 18,236 20,630 19,797
Interest and dividends on
investments and other
interest-earning assets 5,343 5,174 4,615
----------- ----------- -----------
Total interest income 93,682 88,903 78,773
Interest expense:
Interest on deposits 19,096 17,900 18,270
Interest on borrowings 33,927 30,608 26,000
Interest on trust preferred
securities and subordinated
debentures 2,378 1,789 2,424
----------- ----------- -----------
Total interest expense 55,401 50,297 46,694
----------- ----------- -----------
Net interest income 38,281 38,606 32,079
Provision for loan losses 1,150 1,650 975
----------- ----------- -----------
Net interest income after
provision for loan losses 37,131 36,956 31,104
Other income:
Loan servicing fees, net of
amortization 88 42 (773)
Loan fees 1,154 1,144 939
Deposit fees 1,106 1,055 1,119
Other fees 518 478 480
Gain on sales of loans,
securities, and other
assets (1) 2,003 838 1,157
Insurance and investment income 963 1,073 942
Other income 1,115 813 1,198
----------- ----------- -----------
Total other income 6,947 5,443 5,062
Other expense:
Employee compensation 11,196 11,043 10,804
Occupancy and equipment 5,001 4,888 3,704
Professional fees 848 372 1,320
Telecommunications and data
processing 1,619 1,448 1,384
Advertising and promotion
expense 1,444 1,170 1,151
Insurance 382 439 357
Other operating expenses 2,232 2,437 393
----------- ----------- -----------
Total other expense 22,722 21,797 19,113
----------- ----------- -----------
Income before income taxes 21,356 20,602 17,053
Provision for income taxes 6,831 6,508 5,503
----------- ----------- -----------
Net income $ 14,525 $ 14,094 $ 11,550
=========== =========== ===========
Earning Per Share Data:
Net income $ 14,525 $ 14,094 $ 11,550
Preferred stock dividends 103 101 81
----------- ----------- -----------
Net income available to common
stockholders $ 14,422 $ 13,993 $ 11,469
=========== =========== ===========
----------- ----------- -----------
Basic earnings per common share: $ 0.48 $ 0.47 $ 0.39
=========== =========== ===========
----------- ----------- -----------
Weighted average common shares 30,023 29,958 29,686
=========== =========== ===========
----------- ----------- -----------
Diluted earnings per common share: $ 0.45 $ 0.44 $ 0.36
=========== =========== ===========
----------- ----------- -----------
Weighted average diluted common
shares 32,381 32,263 32,238
=========== =========== ===========
For the Three Months Ended
(1)Consists of the following: Dec. 31, Sept. 30, Dec. 31,
----------- ----------- -----------
2004 2004 2003
----------- ----------- -----------
Gain on sales of loans and
securitizations $ 395 $ 435 $ 1,181
Gain on sales of investments
and other assets $ 1,608 $ 403 $ (24)
BankUnited Financial Corporation
Quarter Ended December 31, 2004 Earnings Release (continued)
----------------------------------------------------------------------
As of As of As of
Dec. 31, Sept. 30, Dec. 31,
---------------------------------- ----------- ---------- ------------
Selected Balance Sheet Data: 2004 2004 2003
---------------------------------- ----------- ---------- ------------
(In thousands)
Asset Data:
Total assets $8,914,672 $8,710,445 $7,247,748
Cash and cash equivalents $ 44,766 $ 181,894 $ 183,991
Investment securities $ 346,489 $ 333,939 $ 306,583
Mortgage-backed securities $1,826,121 $2,068,180 $2,092,409
Loans:
Residential loans $5,282,999 $4,747,569 $3,512,458
Commercial and commercial real
estate loans 763,972 767,540 529,669
Consumer loans (1) 192,171 169,778 131,659
Unearned discounts, premiums and
loan fees 81,056 65,992 40,696
Allowance for loan losses (24,447) (24,079) (22,125)
----------- ----------- -----------
Loans receivable, net
(excluding loans held for
sale) $6,295,751 $5,726,800 $4,192,357
=========== =========== ===========
Loans held for sale $ 25,874 $ 28,786 $ 145,701
FHLB Stock $ 152,609 $ 155,716 $ 122,766
Liability Data:
Total liabilities $8,412,665 $8,217,788 $6,793,671
Deposits:
Non-interest bearing deposits $ 262,028 $ 247,154 $ 206,659
Interest bearing checking and
money market deposits 417,649 398,280 359,559
Savings 1,006,511 1,013,198 918,353
----------- ----------- -----------
Total core deposits 1,686,188 1,658,632 1,484,571
Certificates of deposit 2,040,595 1,869,630 1,799,365
----------- ----------- -----------
Total deposits $3,726,783 $3,528,262 $3,283,936
=========== =========== ===========
Borrowings (2) $4,301,404 $4,297,665 $3,275,749
Convertible debt $ 120,000 $ 120,000 $ -
Trust preferred securities and
subordinated debentures $ 195,841 $ 164,979 $ 167,726
Equity Data:
Total stockholders' equity $ 502,007 $ 492,657 $ 454,077
Preferred equity $ 6,299 $ 5,931 $ 5,857
AVERAGE BALANCE SHEET DATA (Three months ended)
Loans, net (3) $6,025,555 $5,453,342 $4,286,554
Investment securities $ 338,365 $ 331,915 $ 302,854
Mortgage-backed securities $1,955,160 $2,186,005 $2,101,452
Interest-earning assets (4) $8,473,779 $8,121,330 $6,792,495
Assets $8,718,877 $8,369,883 $7,038,622
Interest bearing deposits $3,326,726 $3,197,440 $3,051,162
Non-interest-bearing deposits $ 247,454 $ 239,883 $ 194,552
Borrowings (2) $4,263,078 $4,067,884 $3,102,561
Convertible debt $ 120,000 $ 120,000 $ -
Trust preferred securities and
subordinated debentures $ 175,702 $ 164,154 $ 168,231
Interest-bearing liabilities $7,885,507 $7,549,478 $6,321,954
Liabilities $8,223,505 $7,895,760 $6,593,328
Stockholders' equity $ 495,372 $ 474,123 $ 445,293
(1) Includes home equity loans and lines of credit, excludes
consumer mortgage products which are included in Residential
Loans.
(2) Includes FHLB advances, repurchase agreements, and senior
notes.
(3) Includes loans held for sale.
(4) Excludes non-accruing loans.
BankUnited Financial Corporation
Quarter Ended December 31, 2004 Earnings Release (continued)
----------------------------------------------------------------------
For the Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
---------------------------------- ----------- ----------- -----------
Selected Data: 2004 2004 2003
---------------------------------- ----------- ----------- -----------
Quarterly Performance Data:
Return on average tangible common
equity 12.52% 12.73% 11.16%
Return on average assets 0.67% 0.67% 0.66%
Yield on interest-earning assets 4.40% 4.37% 4.61%
Cost of interest-bearing
liabilities 2.79% 2.64% 2.93%
Net interest yield on earning
assets (margin) 1.81% 1.90% 1.91%
Net interest spread 1.61% 1.73% 1.68%
Efficiency Ratio 50.24% 49.48% 51.46%
As of
-----------------------------------
Dec. 31, Sept. 30, Dec. 31,
----------- ----------- -----------
2004 2004 2003
----------- ----------- -----------
Equity Data: (dollars and shares in thousands,
except per share amounts)
Book value per common share $ 16.39 $ 16.19 $ 15.03
Closing price of Class A Common
Stock $ 31.95 $ 29.15 $ 25.79
Common shares outstanding 30,239 30,059 29,890
Average equity to average assets
(3 mos.) 5.68% 5.66% 6.33%
Capital Ratios:
Tangible capital ratio (1) 7.3% 7.3% 7.3%
Tier 1 core capital ratio (1) 7.3% 7.3% 7.3%
Total risk-based capital ratio (1) 15.2% 15.6% 15.9%
Non-Performing Assets:
Non-accrual loans $ 14,998 $ 15,523 $ 25,841
Restructured loans 364 367 304
Loans 90 day past due and still
accruing 39 2 -
----------- ----------- -----------
Total non-performing loans 15,401 15,892 26,145
Non-accrual tax certificates - 69 262
Real estate owned 1,602 1,611 3,414
----------- ----------- -----------
Total non-performing assets $ 17,003 $ 17,572 $ 29,821
=========== =========== ===========
Allowance for losses on tax
certificates $ - $ 65 $ 251
Allowance for loan losses 24,447 24,079 22,125
----------- ----------- -----------
Total allowance $ 24,447 $ 24,144 $ 22,376
=========== =========== ===========
Non-performing assets to total
assets 0.19% 0.20% 0.41%
Non-performing loans to total
loans 0.24% 0.27% 0.60%
Allowance for loan losses as a
percentage of total loans 0.39% 0.42% 0.51%
Allowance for loan losses as a
percentage of non-performing
loans 158.74% 151.52% 84.62%
Net charge-offs for the three
months ended $ 782 $ 868 $ 546
Net annualized year-to-date
charge-offs as a percentage of
average total loans 0.05% 0.05% 0.05%
(1) Capital ratios are for BankUnited FSB only.
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