Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries BankUnited, Inc. Reports First Quarter 2022 Results By: BankUnited, Inc. via Business Wire April 21, 2022 at 06:45 AM EDT BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2022. "Despite the recent volatility in capital markets, we continue to see strength in our local economies. Consequently we remain optimistic about the rest of 2022 and continue to invest in and grow our core franchise -- one client at a time," said Rajinder Singh, Chairman, President and Chief Executive Officer. For the quarter ended March 31, 2022, the Company reported net income of $67.2 million, or $0.79 per diluted share, compared to $125.3 million or $1.41 per diluted share for the immediately preceding quarter ended December 31, 2021 and $98.8 million, or $1.06 per diluted share, for the quarter ended March 31, 2021. As previously reported, earnings for the quarter ended December 31, 2021 were impacted by discrete income tax benefits of $69.1 million and a $44.8 million pre-tax loss on discontinuance of hedges. Earnings for the quarter ended March 31, 2021 were favorably impacted by a $28.0 million recovery of the provision for credit losses. Quarterly Highlights Our new corporate banking office in Atlanta marks a renewed effort to expand outside of our core geographic markets of Florida and New York. We also expect to open a full service banking branch in the Dallas area in late April, 2022. In March, 2022 Newsweek named BankUnited one of America's most trusted companies. BankUnited was ranked #4 among banks on this list. The Company announced an increase of $0.02 in its cash dividend for the quarter ended March 31, 2022, to $0.25 per common share, reflecting a 9% increase from the previous quarterly dividend of $0.23 per common share. The net interest margin, calculated on a tax-equivalent basis, expanded to 2.50% for the quarter ended March 31, 2022 from 2.44% for the immediately preceding quarter and 2.39% for the quarter ended March 31, 2021. Net interest income increased by $2.6 million compared to the immediately preceding quarter ended December 31, 2021 and by $12.4 million compared to the quarter ended March 31, 2021. The average cost of total deposits was 0.17% for the quarter ended March 31, 2022 compared to 0.19% for the immediately preceding quarter ended December 31, 2021 and 0.33% for the quarter ended March 31, 2021. On a spot basis, the average annual percentage yield ("APY") on total deposits was 0.16% at both March 31, 2022 and December 31, 2021. Non-interest bearing demand deposits grew by $688 million during the quarter ended March 31, 2022. At March 31, 2022, non-interest bearing demand deposits represented 34% of total deposits, compared to 30% of total deposits at December 31, 2021. Total deposits declined by $897 million during the quarter ended March 31, 2022, with declines in interest bearing demand, savings and money market and time deposits. Total loans, excluding the runoff of PPP loans, declined by $227 million for the quarter ended March 31, 2022, while average loans, excluding PPP loans, increased by $586 million. The ratio of non-performing loans to total loans declined to 0.65% at March 31, 2022 from 0.87% at December 31, 2021. The guaranteed portion of SBA loans on non-accrual status represented 0.18% of total loans at March 31, 2022. Criticized and classified loans continued to decline. During the quarter ended March 31, 2022, total criticized and classified loans declined by $280 million. For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million compared to a provision of $0.2 million for the immediately preceding quarter ended December 31, 2021 and a recovery of the provision for credit losses of $(28.0) million for the quarter ended March 31, 2021. Results for the quarter were impacted by declines in the fair value of investment securities. Accumulated other comprehensive income declined by $142 million for the quarter ended March 31, 2022, primarily due to an increase in unrealized losses on investment securities available for sale. Non-interest income was impacted by a $10.5 million decline in the fair value of certain preferred stock investments. These declines in the fair value of securities resulted primarily from widening spreads and rising interest rates related to the Fed's plans for quantitative tightening and benchmark interest rate increases, as well as inflationary concerns. None of the unrealized losses were attributable to credit loss impairments; the Company expects to recover the amortized cost basis of its available for sale securities. At March 31, 2022, book value per common share and tangible book value per common share were $34.04 and $33.12, respectively. As previously reported, on February 2, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended March 31, 2022, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $82.1 million, at a weighted average price of $42.50 per share. Loans A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands): March 31, 2022 December 31, 2021 Residential and other consumer loans $ 8,612,839 36.8 % $ 8,368,380 35.2 % Multi-family 1,072,981 4.6 % 1,154,738 4.9 % Non-owner occupied commercial real estate 4,284,675 18.3 % 4,381,610 18.4 % Construction and land 176,825 0.8 % 165,390 0.7 % Owner occupied commercial real estate 1,905,395 8.2 % 1,944,658 8.2 % Commercial and industrial 4,951,999 21.2 % 4,790,275 20.2 % PPP 80,296 0.3 % 248,505 1.0 % Pinnacle 935,915 4.0 % 919,641 3.9 % Bridge - franchise finance 306,563 1.3 % 342,124 1.4 % Bridge - equipment finance 341,369 1.5 % 357,599 1.5 % Mortgage warehouse lending ("MWL") 701,172 3.0 % 1,092,133 4.6 % $ 23,370,029 100.0 % $ 23,765,053 100.0 % Residential and other consumer loans grew by $244 million during the quarter ended March 31, 2022. Commercial and industrial loans, including owner-occupied commercial real estate, grew by $122 million for the quarter. Most of the remaining commercial portfolio segments showed declines for the quarter. MWL utilization declined to 39% at March 31, 2022 compared to 56% at December 31, 2021 as rising rates have led to lower refinancing activity and this segment is evidencing a return to historically normal seasonal utilization patterns. PPP loans declined by $168 million during the quarter ended March 31, 2022, resulting from full or partial forgiveness from the Small Business Administration. Asset Quality and the Allowance for Credit Losses ("ACL") Non-performing loans totaled $150.8 million or 0.65% of total loans at March 31, 2022, compared to $205.9 million or 0.87% of total loans at December 31, 2021. Non-performing loans included $41.9 million and $46.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.18% of total loans at March 31, 2022 and 0.19% of total loans at December 31, 2021. The following table presents criticized and classified commercial loans at the dates indicated (in thousands): March 31, 2022 December 31, 2021 Special mention $ 95,250 $ 148,593 Substandard - accruing 956,318 1,136,378 Substandard - non-accruing 104,329 129,579 Doubtful 26,678 47,754 Total $ 1,182,575 $ 1,462,304 Loans currently under short-term deferral or modified under the CARES Act totaled $149 million at March 31, 2022, down from a total of $205 million at December 31, 2021. The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the three months ended March 31, 2022 and year ended December 31, 2021 (dollars in thousands): ACL ACL to Total Loans (1) ACL to Non- Performing Loans Net Charge-offs to Average Loans(2) December 31, 2021 $ 126,457 0.53 % 61.41 % 0.29 % March 31, 2022 $ 125,443 0.54 % 83.17 % 0.15 % ______________________________ (1) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61% and 0.62% at March 31, 2022 and December 31, 2021, respectively. (2) Annualized for the three months ended March 31, 2022. The ACL at March 31, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in March 2022, economic information provided by additional sources including developments subsequent to publishing of the scenarios, information about borrower financial condition and collateral values and other relevant information. For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million, which included a provision of $7.4 million related to funded loans and a $0.4 million provision related to unfunded loan commitments. The most significant factor impacting the provision for credit losses for the quarter ended March 31, 2022 was an increase in qualitative loss factors related to economic uncertainty. The following table summarizes the activity in the ACL for the periods indicated (in thousands): Three Months Ended March 31, 2022 2021 Beginning balance $ 126,457 $ 257,323 Provision (recovery) 7,446 (26,306 ) Net charge-offs (8,460 ) (10,083 ) Ending balance $ 125,443 $ 220,934 Funding Total deposits declined by $897 million for the quarter ended March 31, 2022. The majority of deposit outflows were accounts that, based on prior experience, we would expect to be price sensitive in a rising rate environment. While we initially did not anticipate growth in the securities portfolio, total investment securities increased by $508 million for the quarter as we took advantage of opportunities to purchase securities at attractive spreads. Correspondingly, FHLB advances increased by $1.5 billion during the quarter ended March 31, 2022. Net Interest Income Net interest income for the quarter ended March 31, 2022 was $208.6 million compared to $206.0 million for the immediately preceding quarter ended December 31, 2021 and $196.2 million for the quarter ended March 31, 2021. The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.50% for the quarter ended March 31, 2022, from 2.44% for the immediately preceding quarter ended December 31, 2021. Factors impacting the net interest margin for the quarter ended March 31, 2022 included: The tax-equivalent yield on investment securities increased to 1.73% for the quarter ended March 31, 2022 from 1.54% for the quarter ended December 31, 2021. This increase resulted from the impact of purchases of higher-yielding securities and the impact of slower prepayment speeds on securities purchased at a premium. The tax-equivalent yield on loans decreased to 3.36% for the quarter ended March 31, 2022, from 3.50% for the quarter ended December 31, 2021. Factors that contributed to the decline included slower prepayment speeds on PCD residential loans, the effect of the sale of a pool of higher yielding residential loans during the fourth quarter of 2021, and runoff of loans originated in a comparatively higher rate environment. The average rate paid on FHLB advances decreased to 1.11% for the quarter ended March 31, 2022, from 1.86% for the quarter ended December 31, 2021. This decrease resulted from the maturity of higher rate advances, including the termination of certain cash flow hedges during the quarter ended December 31, 2021, and the addition of new advances at comparatively lower prevailing rates. The average rate paid on interest bearing deposits decreased to 0.24% for the quarter ended March 31, 2022, from 0.27% for the quarter ended December 31, 2021. Callable and other brokered CDs and cash flow hedges entered into in anticipation of rising rates impacted the cost of deposits for the quarter; the average rate paid on interest bearing deposits excluding these instruments was 0.21% for the quarter ended March 31, 2022. The increase in the average cost of time deposits for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021 was attributable to these products. The average cost of time deposits other than these products was 0.22% for the quarter ended March 31, 2022. Non-interest income and Non-interest expense Non-interest income totaled $14.3 million for the quarter ended March 31, 2022 compared to $45.6 million for the quarter ended December 31, 2021 and $30.3 million for the quarter ended March 31, 2021. Gain (loss) on investment securities was a net loss of $(7.9) million for the quarter ended March 31, 2022 compared to net gains of $0.6 million and $2.4 million for the quarters ended December 31, 2021 and March 31, 2021, respectively. The net loss for the quarter ended March 31, 2022 was attributable to a $10.5 million decline in the fair value of certain preferred stock investments resulting from rising market interest rates. As previously disclosed, gain on sale of loans for the quarter ended December 31, 2021 included a gain of $18.2 million on the sale of a pool of residential mortgages. Other non-interest income for the quarter ended March 31, 2022 compared to the quarters ended December 31, 2021 and March 31, 2021 reflected declines in income related to investments in bank-owned life insurance, and as compared to the quarter ended March 31, 2021, a decline in revenue related to our commercial derivative program. Non-interest expense totaled $126.3 million for the quarter ended March 31, 2022 compared to $123.2 million for the quarter ended March 31, 2021 and $187.9 million for the quarter ended December 31, 2021. The most significant offsetting factors contributing to the increase in non-interest expense compared to the quarter ended March 31, 2021 were (i) a $7.8 million increase in employee compensation and benefits and (ii) a $4.0 million decline in deposit insurance expense reflecting a decrease in the FDIC assessment rate. Non-interest expense for the quarter ended December 31, 2021 included a $44.8 million loss on discontinuance of cash flow hedges. Employee compensation and benefits declined by $3.5 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021. The quarter ended December 31, 2021 included $6.8 million related to a special employee bonus. Earnings Conference Call and Presentation A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, April 21, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish. The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 6761489. A replay of the call will be available from 12:00 p.m. ET on April 21st through 11:59 p.m. ET on April 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 6761489. An archived webcast will also be available on the Investor Relations page of www.bankunited.com. About BankUnited, Inc. BankUnited, Inc., with total assets of $36.3 billion at March 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 62 banking centers in 12 Florida counties and 4 banking centers in the New York metropolitan area. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) March 31, 2022 December 31, 2021 ASSETS Cash and due from banks: Non-interest bearing $ 17,780 $ 19,143 Interest bearing 679,712 295,714 Cash and cash equivalents 697,492 314,857 Investment securities (including securities recorded at fair value of $10,562,098 and $10,054,198) 10,572,098 10,064,198 Non-marketable equity securities 190,534 135,859 Loans 23,370,029 23,765,053 Allowance for credit losses (125,443 ) (126,457 ) Loans, net 23,244,586 23,638,596 Bank owned life insurance 314,697 309,477 Operating lease equipment, net 627,146 640,726 Goodwill 77,637 77,637 Other assets 607,434 634,046 Total assets $ 36,331,624 $ 35,815,396 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Demand deposits: Non-interest bearing $ 9,663,307 $ 8,975,621 Interest bearing 2,872,430 3,709,493 Savings and money market 13,029,823 13,368,745 Time 2,975,715 3,384,243 Total deposits 28,541,275 29,438,102 Federal funds purchased 199,000 199,000 FHLB advances 3,395,000 1,905,000 Notes and other borrowings 721,291 721,416 Other liabilities 613,826 514,117 Total liabilities 33,470,392 32,777,635 Commitments and contingencies Stockholders' equity: Common stock, par value $0.01 per share, 400,000,000 shares authorized; 84,052,021 and 85,647,986 shares issued and outstanding 841 856 Paid-in capital 626,564 707,503 Retained earnings 2,391,526 2,345,342 Accumulated other comprehensive loss (157,699 ) (15,940 ) Total stockholders' equity 2,861,232 3,037,761 Total liabilities and stockholders' equity $ 36,331,624 $ 35,815,396 BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) Three Months Ended March 31, December 31, March 31, 2022 2021 2021 Interest income: Loans $ 191,562 $ 198,275 $ 205,335 Investment securities 43,048 38,201 38,501 Other 1,354 1,397 1,593 Total interest income 235,964 237,873 245,429 Interest expense: Deposits 11,857 13,631 22,376 Borrowings 15,465 18,227 26,813 Total interest expense 27,322 31,858 49,189 Net interest income before provision for credit losses 208,642 206,015 196,240 Provision for (recovery of) credit losses 7,830 246 (27,989 ) Net interest income after provision for credit losses 200,812 205,769 224,229 Non-interest income: Deposit service charges and fees 5,960 5,815 4,900 Gain (loss) on sale of loans, net (824 ) 19,003 1,754 Gain (loss) on investment securities, net (7,868 ) 590 2,365 Lease financing 13,415 14,041 12,488 Other non-interest income 3,618 6,173 8,789 Total non-interest income 14,301 45,622 30,296 Non-interest expense: Employee compensation and benefits 67,088 70,561 59,288 Occupancy and equipment 11,512 12,817 11,875 Deposit insurance expense 3,403 3,471 7,450 Professional fees 2,262 8,023 1,912 Technology and telecommunications 17,004 18,221 15,741 Discontinuance of cash flow hedges — 44,833 — Depreciation and impairment of operating lease equipment 12,610 15,769 12,217 Other non-interest expense 12,445 14,165 14,738 Total non-interest expense 126,324 187,860 123,221 Income before income taxes 88,789 63,531 131,304 Provision (benefit) for income taxes 21,639 (61,724 ) 32,490 Net income $ 67,150 $ 125,255 $ 98,814 Earnings per common share, basic $ 0.79 $ 1.42 $ 1.06 Earnings per common share, diluted $ 0.79 $ 1.41 $ 1.06 BANKUNITED, INC. AND SUBSIDIARIES AVERAGE BALANCES AND YIELDS (Dollars in thousands) Three Months Ended March 31, 2022 Three Months Ended December 31, 2021 Three Months Ended March 31, 2021 Average Balance Interest (1) Yield/ Rate (1)(2) Average Balance Interest (1) Yield/ Rate (1)(2) Average Balance Interest (1) Yield/ Rate (1)(2) Assets: Interest earning assets: Loans $ 23,349,143 $ 194,551 3.36 % $ 22,919,535 $ 201,345 3.50 % $ 23,549,309 $ 208,821 3.58 % Investment securities (3) 10,083,083 43,719 1.73 % 10,113,026 38,889 1.54 % 9,070,185 39,188 1.73 % Other interest earning assets 674,640 1,354 0.81 % 1,184,056 1,397 0.47 % 1,062,840 1,593 0.61 % Total interest earning assets 34,106,866 239,624 2.83 % 34,216,617 241,631 2.81 % 33,682,334 249,602 2.98 % Allowance for credit losses (129,028 ) (149,319 ) (254,438 ) Non-interest earning assets 1,674,476 1,767,850 1,724,176 Total assets $ 35,652,314 $ 35,835,148 $ 35,152,072 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 3,078,037 $ 1,364 0.18 % $ 3,058,355 $ 1,481 0.19 % $ 2,942,874 $ 2,774 0.38 % Savings and money market deposits 13,401,332 6,931 0.21 % 13,460,084 9,619 0.28 % 12,793,019 12,127 0.38 % Time deposits 3,319,585 3,562 0.44 % 3,399,302 2,531 0.30 % 4,330,781 7,475 0.70 % Total interest bearing deposits 19,798,954 11,857 0.24 % 19,917,741 13,631 0.27 % 20,066,674 22,376 0.45 % Federal funds purchased 187,539 58 0.13 % 56,793 13 0.09 % 8,000 3 0.15 % FHLB advances 2,248,889 6,146 1.11 % 1,909,450 8,957 1.86 % 3,072,717 17,558 2.32 % Notes and other borrowings 721,405 9,261 5.13 % 721,525 9,257 5.13 % 722,305 9,252 5.12 % Total interest bearing liabilities 22,956,787 27,322 0.48 % 22,605,509 31,858 0.56 % 23,869,696 49,189 0.83 % Non-interest bearing demand deposits 9,047,864 9,330,805 7,491,249 Other non-interest bearing liabilities 623,199 785,254 746,973 Total liabilities 32,627,850 32,721,568 32,107,918 Stockholders' equity 3,024,464 3,113,580 3,044,154 Total liabilities and stockholders' equity $ 35,652,314 $ 35,835,148 $ 35,152,072 Net interest income $ 212,302 $ 209,773 $ 200,413 Interest rate spread 2.35 % 2.25 % 2.15 % Net interest margin 2.50 % 2.44 % 2.39 % ______________________________ (1) On a tax-equivalent basis where applicable (2) Annualized (3) At fair value except for securities held to maturity BANKUNITED, INC. AND SUBSIDIARIES EARNINGS PER COMMON SHARE (In thousands except share and per share amounts) Three Months Ended March 31, 2022 2021 Basic earnings per common share: Numerator: Net income $ 67,150 $ 98,814 Distributed and undistributed earnings allocated to participating securities (929 ) (1,252 ) Income allocated to common stockholders for basic earnings per common share $ 66,221 $ 97,562 Denominator: Weighted average common shares outstanding 84,983,873 93,075,702 Less average unvested stock awards (1,211,807 ) (1,205,529 ) Weighted average shares for basic earnings per common share 83,772,066 91,870,173 Basic earnings per common share $ 0.79 $ 1.06 Diluted earnings per common share: Numerator: Income allocated to common stockholders for basic earnings per common share $ 66,221 $ 97,562 Adjustment for earnings reallocated from participating securities 1 1 Income used in calculating diluted earnings per common share $ 66,222 $ 97,563 Denominator: Weighted average shares for basic earnings per common share 83,772,066 91,870,173 Dilutive effect of certain share-based awards 137,704 93,540 Weighted average shares for diluted earnings per common share 83,909,770 91,963,713 Diluted earnings per common share $ 0.79 $ 1.06 BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS Three Months Ended March 31, 2022 2021 Financial ratios (4) Return on average assets 0.76 % 1.14 % Return on average stockholders’ equity 9.0 % 13.2 % Net interest margin (3) 2.50 % 2.39 % March 31, 2022 December 31, 2021 Asset quality ratios Non-performing loans to total loans (1)(5) 0.65 % 0.87 % Non-performing assets to total assets (2)(5) 0.42 % 0.58 % Allowance for credit losses to total loans 0.54 % 0.53 % Allowance for credit losses to non-performing loans (1)(5) 83.17 % 61.41 % Net charge-offs to average loans (4) 0.15 % 0.29 % ______________________________ (1) We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. (2) Non-performing assets include non-performing loans, OREO and other repossessed assets. (3) On a tax-equivalent basis. (4) Annualized for the three month periods. (5) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.9 million or 0.18% of total loans and 0.12% of total assets at March 31, 2022; and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021. March 31, 2022 December 31, 2021 Required to be Considered Well Capitalized BankUnited, Inc. BankUnited, N.A. BankUnited, Inc. BankUnited, N.A. Capital ratios Tier 1 leverage 8.3 % 9.6 % 8.4 % 9.6 % 5.0 % Common Equity Tier 1 ("CET1") risk-based capital 12.5 % 14.5 % 12.6 % 14.5 % 6.5 % Total risk-based capital 14.3 % 15.0 % 14.3 % 14.9 % 10.0 % Non-GAAP Financial Measures ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands): March 31, 2022 December 31, 2021 Total loans (GAAP) $ 23,370,029 $ 23,765,053 Less: Government insured residential loans 1,938,479 2,023,221 Less: PPP loans 80,296 248,505 Less: MWL 701,172 1,092,133 Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) $ 20,650,082 $ 20,401,194 ACL $ 125,443 $ 126,457 ACL to total loans (GAAP) 0.54 % 0.53 % ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 0.61 % 0.62 % Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data): March 31, 2022 December 31, 2021 Total stockholders’ equity (GAAP) $ 2,861,232 $ 3,037,761 Less: goodwill 77,637 77,637 Tangible stockholders’ equity (non-GAAP) $ 2,783,595 $ 2,960,124 Common shares issued and outstanding 84,052,021 85,647,986 Book value per common share (GAAP) $ 34.04 $ 35.47 Tangible book value per common share (non-GAAP) $ 33.12 $ 34.56 View source version on businesswire.com: https://www.businesswire.com/news/home/20220421005135/en/Contacts BankUnited, Inc. Investor Relations: Leslie N. Lunak, 786-313-1698 llunak@bankunited.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
BankUnited, Inc. Reports First Quarter 2022 Results By: BankUnited, Inc. via Business Wire April 21, 2022 at 06:45 AM EDT BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2022. "Despite the recent volatility in capital markets, we continue to see strength in our local economies. Consequently we remain optimistic about the rest of 2022 and continue to invest in and grow our core franchise -- one client at a time," said Rajinder Singh, Chairman, President and Chief Executive Officer. For the quarter ended March 31, 2022, the Company reported net income of $67.2 million, or $0.79 per diluted share, compared to $125.3 million or $1.41 per diluted share for the immediately preceding quarter ended December 31, 2021 and $98.8 million, or $1.06 per diluted share, for the quarter ended March 31, 2021. As previously reported, earnings for the quarter ended December 31, 2021 were impacted by discrete income tax benefits of $69.1 million and a $44.8 million pre-tax loss on discontinuance of hedges. Earnings for the quarter ended March 31, 2021 were favorably impacted by a $28.0 million recovery of the provision for credit losses. Quarterly Highlights Our new corporate banking office in Atlanta marks a renewed effort to expand outside of our core geographic markets of Florida and New York. We also expect to open a full service banking branch in the Dallas area in late April, 2022. In March, 2022 Newsweek named BankUnited one of America's most trusted companies. BankUnited was ranked #4 among banks on this list. The Company announced an increase of $0.02 in its cash dividend for the quarter ended March 31, 2022, to $0.25 per common share, reflecting a 9% increase from the previous quarterly dividend of $0.23 per common share. The net interest margin, calculated on a tax-equivalent basis, expanded to 2.50% for the quarter ended March 31, 2022 from 2.44% for the immediately preceding quarter and 2.39% for the quarter ended March 31, 2021. Net interest income increased by $2.6 million compared to the immediately preceding quarter ended December 31, 2021 and by $12.4 million compared to the quarter ended March 31, 2021. The average cost of total deposits was 0.17% for the quarter ended March 31, 2022 compared to 0.19% for the immediately preceding quarter ended December 31, 2021 and 0.33% for the quarter ended March 31, 2021. On a spot basis, the average annual percentage yield ("APY") on total deposits was 0.16% at both March 31, 2022 and December 31, 2021. Non-interest bearing demand deposits grew by $688 million during the quarter ended March 31, 2022. At March 31, 2022, non-interest bearing demand deposits represented 34% of total deposits, compared to 30% of total deposits at December 31, 2021. Total deposits declined by $897 million during the quarter ended March 31, 2022, with declines in interest bearing demand, savings and money market and time deposits. Total loans, excluding the runoff of PPP loans, declined by $227 million for the quarter ended March 31, 2022, while average loans, excluding PPP loans, increased by $586 million. The ratio of non-performing loans to total loans declined to 0.65% at March 31, 2022 from 0.87% at December 31, 2021. The guaranteed portion of SBA loans on non-accrual status represented 0.18% of total loans at March 31, 2022. Criticized and classified loans continued to decline. During the quarter ended March 31, 2022, total criticized and classified loans declined by $280 million. For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million compared to a provision of $0.2 million for the immediately preceding quarter ended December 31, 2021 and a recovery of the provision for credit losses of $(28.0) million for the quarter ended March 31, 2021. Results for the quarter were impacted by declines in the fair value of investment securities. Accumulated other comprehensive income declined by $142 million for the quarter ended March 31, 2022, primarily due to an increase in unrealized losses on investment securities available for sale. Non-interest income was impacted by a $10.5 million decline in the fair value of certain preferred stock investments. These declines in the fair value of securities resulted primarily from widening spreads and rising interest rates related to the Fed's plans for quantitative tightening and benchmark interest rate increases, as well as inflationary concerns. None of the unrealized losses were attributable to credit loss impairments; the Company expects to recover the amortized cost basis of its available for sale securities. At March 31, 2022, book value per common share and tangible book value per common share were $34.04 and $33.12, respectively. As previously reported, on February 2, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended March 31, 2022, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $82.1 million, at a weighted average price of $42.50 per share. Loans A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands): March 31, 2022 December 31, 2021 Residential and other consumer loans $ 8,612,839 36.8 % $ 8,368,380 35.2 % Multi-family 1,072,981 4.6 % 1,154,738 4.9 % Non-owner occupied commercial real estate 4,284,675 18.3 % 4,381,610 18.4 % Construction and land 176,825 0.8 % 165,390 0.7 % Owner occupied commercial real estate 1,905,395 8.2 % 1,944,658 8.2 % Commercial and industrial 4,951,999 21.2 % 4,790,275 20.2 % PPP 80,296 0.3 % 248,505 1.0 % Pinnacle 935,915 4.0 % 919,641 3.9 % Bridge - franchise finance 306,563 1.3 % 342,124 1.4 % Bridge - equipment finance 341,369 1.5 % 357,599 1.5 % Mortgage warehouse lending ("MWL") 701,172 3.0 % 1,092,133 4.6 % $ 23,370,029 100.0 % $ 23,765,053 100.0 % Residential and other consumer loans grew by $244 million during the quarter ended March 31, 2022. Commercial and industrial loans, including owner-occupied commercial real estate, grew by $122 million for the quarter. Most of the remaining commercial portfolio segments showed declines for the quarter. MWL utilization declined to 39% at March 31, 2022 compared to 56% at December 31, 2021 as rising rates have led to lower refinancing activity and this segment is evidencing a return to historically normal seasonal utilization patterns. PPP loans declined by $168 million during the quarter ended March 31, 2022, resulting from full or partial forgiveness from the Small Business Administration. Asset Quality and the Allowance for Credit Losses ("ACL") Non-performing loans totaled $150.8 million or 0.65% of total loans at March 31, 2022, compared to $205.9 million or 0.87% of total loans at December 31, 2021. Non-performing loans included $41.9 million and $46.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.18% of total loans at March 31, 2022 and 0.19% of total loans at December 31, 2021. The following table presents criticized and classified commercial loans at the dates indicated (in thousands): March 31, 2022 December 31, 2021 Special mention $ 95,250 $ 148,593 Substandard - accruing 956,318 1,136,378 Substandard - non-accruing 104,329 129,579 Doubtful 26,678 47,754 Total $ 1,182,575 $ 1,462,304 Loans currently under short-term deferral or modified under the CARES Act totaled $149 million at March 31, 2022, down from a total of $205 million at December 31, 2021. The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the three months ended March 31, 2022 and year ended December 31, 2021 (dollars in thousands): ACL ACL to Total Loans (1) ACL to Non- Performing Loans Net Charge-offs to Average Loans(2) December 31, 2021 $ 126,457 0.53 % 61.41 % 0.29 % March 31, 2022 $ 125,443 0.54 % 83.17 % 0.15 % ______________________________ (1) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61% and 0.62% at March 31, 2022 and December 31, 2021, respectively. (2) Annualized for the three months ended March 31, 2022. The ACL at March 31, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in March 2022, economic information provided by additional sources including developments subsequent to publishing of the scenarios, information about borrower financial condition and collateral values and other relevant information. For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million, which included a provision of $7.4 million related to funded loans and a $0.4 million provision related to unfunded loan commitments. The most significant factor impacting the provision for credit losses for the quarter ended March 31, 2022 was an increase in qualitative loss factors related to economic uncertainty. The following table summarizes the activity in the ACL for the periods indicated (in thousands): Three Months Ended March 31, 2022 2021 Beginning balance $ 126,457 $ 257,323 Provision (recovery) 7,446 (26,306 ) Net charge-offs (8,460 ) (10,083 ) Ending balance $ 125,443 $ 220,934 Funding Total deposits declined by $897 million for the quarter ended March 31, 2022. The majority of deposit outflows were accounts that, based on prior experience, we would expect to be price sensitive in a rising rate environment. While we initially did not anticipate growth in the securities portfolio, total investment securities increased by $508 million for the quarter as we took advantage of opportunities to purchase securities at attractive spreads. Correspondingly, FHLB advances increased by $1.5 billion during the quarter ended March 31, 2022. Net Interest Income Net interest income for the quarter ended March 31, 2022 was $208.6 million compared to $206.0 million for the immediately preceding quarter ended December 31, 2021 and $196.2 million for the quarter ended March 31, 2021. The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.50% for the quarter ended March 31, 2022, from 2.44% for the immediately preceding quarter ended December 31, 2021. Factors impacting the net interest margin for the quarter ended March 31, 2022 included: The tax-equivalent yield on investment securities increased to 1.73% for the quarter ended March 31, 2022 from 1.54% for the quarter ended December 31, 2021. This increase resulted from the impact of purchases of higher-yielding securities and the impact of slower prepayment speeds on securities purchased at a premium. The tax-equivalent yield on loans decreased to 3.36% for the quarter ended March 31, 2022, from 3.50% for the quarter ended December 31, 2021. Factors that contributed to the decline included slower prepayment speeds on PCD residential loans, the effect of the sale of a pool of higher yielding residential loans during the fourth quarter of 2021, and runoff of loans originated in a comparatively higher rate environment. The average rate paid on FHLB advances decreased to 1.11% for the quarter ended March 31, 2022, from 1.86% for the quarter ended December 31, 2021. This decrease resulted from the maturity of higher rate advances, including the termination of certain cash flow hedges during the quarter ended December 31, 2021, and the addition of new advances at comparatively lower prevailing rates. The average rate paid on interest bearing deposits decreased to 0.24% for the quarter ended March 31, 2022, from 0.27% for the quarter ended December 31, 2021. Callable and other brokered CDs and cash flow hedges entered into in anticipation of rising rates impacted the cost of deposits for the quarter; the average rate paid on interest bearing deposits excluding these instruments was 0.21% for the quarter ended March 31, 2022. The increase in the average cost of time deposits for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021 was attributable to these products. The average cost of time deposits other than these products was 0.22% for the quarter ended March 31, 2022. Non-interest income and Non-interest expense Non-interest income totaled $14.3 million for the quarter ended March 31, 2022 compared to $45.6 million for the quarter ended December 31, 2021 and $30.3 million for the quarter ended March 31, 2021. Gain (loss) on investment securities was a net loss of $(7.9) million for the quarter ended March 31, 2022 compared to net gains of $0.6 million and $2.4 million for the quarters ended December 31, 2021 and March 31, 2021, respectively. The net loss for the quarter ended March 31, 2022 was attributable to a $10.5 million decline in the fair value of certain preferred stock investments resulting from rising market interest rates. As previously disclosed, gain on sale of loans for the quarter ended December 31, 2021 included a gain of $18.2 million on the sale of a pool of residential mortgages. Other non-interest income for the quarter ended March 31, 2022 compared to the quarters ended December 31, 2021 and March 31, 2021 reflected declines in income related to investments in bank-owned life insurance, and as compared to the quarter ended March 31, 2021, a decline in revenue related to our commercial derivative program. Non-interest expense totaled $126.3 million for the quarter ended March 31, 2022 compared to $123.2 million for the quarter ended March 31, 2021 and $187.9 million for the quarter ended December 31, 2021. The most significant offsetting factors contributing to the increase in non-interest expense compared to the quarter ended March 31, 2021 were (i) a $7.8 million increase in employee compensation and benefits and (ii) a $4.0 million decline in deposit insurance expense reflecting a decrease in the FDIC assessment rate. Non-interest expense for the quarter ended December 31, 2021 included a $44.8 million loss on discontinuance of cash flow hedges. Employee compensation and benefits declined by $3.5 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021. The quarter ended December 31, 2021 included $6.8 million related to a special employee bonus. Earnings Conference Call and Presentation A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, April 21, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish. The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 6761489. A replay of the call will be available from 12:00 p.m. ET on April 21st through 11:59 p.m. ET on April 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 6761489. An archived webcast will also be available on the Investor Relations page of www.bankunited.com. About BankUnited, Inc. BankUnited, Inc., with total assets of $36.3 billion at March 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 62 banking centers in 12 Florida counties and 4 banking centers in the New York metropolitan area. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) March 31, 2022 December 31, 2021 ASSETS Cash and due from banks: Non-interest bearing $ 17,780 $ 19,143 Interest bearing 679,712 295,714 Cash and cash equivalents 697,492 314,857 Investment securities (including securities recorded at fair value of $10,562,098 and $10,054,198) 10,572,098 10,064,198 Non-marketable equity securities 190,534 135,859 Loans 23,370,029 23,765,053 Allowance for credit losses (125,443 ) (126,457 ) Loans, net 23,244,586 23,638,596 Bank owned life insurance 314,697 309,477 Operating lease equipment, net 627,146 640,726 Goodwill 77,637 77,637 Other assets 607,434 634,046 Total assets $ 36,331,624 $ 35,815,396 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Demand deposits: Non-interest bearing $ 9,663,307 $ 8,975,621 Interest bearing 2,872,430 3,709,493 Savings and money market 13,029,823 13,368,745 Time 2,975,715 3,384,243 Total deposits 28,541,275 29,438,102 Federal funds purchased 199,000 199,000 FHLB advances 3,395,000 1,905,000 Notes and other borrowings 721,291 721,416 Other liabilities 613,826 514,117 Total liabilities 33,470,392 32,777,635 Commitments and contingencies Stockholders' equity: Common stock, par value $0.01 per share, 400,000,000 shares authorized; 84,052,021 and 85,647,986 shares issued and outstanding 841 856 Paid-in capital 626,564 707,503 Retained earnings 2,391,526 2,345,342 Accumulated other comprehensive loss (157,699 ) (15,940 ) Total stockholders' equity 2,861,232 3,037,761 Total liabilities and stockholders' equity $ 36,331,624 $ 35,815,396 BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) Three Months Ended March 31, December 31, March 31, 2022 2021 2021 Interest income: Loans $ 191,562 $ 198,275 $ 205,335 Investment securities 43,048 38,201 38,501 Other 1,354 1,397 1,593 Total interest income 235,964 237,873 245,429 Interest expense: Deposits 11,857 13,631 22,376 Borrowings 15,465 18,227 26,813 Total interest expense 27,322 31,858 49,189 Net interest income before provision for credit losses 208,642 206,015 196,240 Provision for (recovery of) credit losses 7,830 246 (27,989 ) Net interest income after provision for credit losses 200,812 205,769 224,229 Non-interest income: Deposit service charges and fees 5,960 5,815 4,900 Gain (loss) on sale of loans, net (824 ) 19,003 1,754 Gain (loss) on investment securities, net (7,868 ) 590 2,365 Lease financing 13,415 14,041 12,488 Other non-interest income 3,618 6,173 8,789 Total non-interest income 14,301 45,622 30,296 Non-interest expense: Employee compensation and benefits 67,088 70,561 59,288 Occupancy and equipment 11,512 12,817 11,875 Deposit insurance expense 3,403 3,471 7,450 Professional fees 2,262 8,023 1,912 Technology and telecommunications 17,004 18,221 15,741 Discontinuance of cash flow hedges — 44,833 — Depreciation and impairment of operating lease equipment 12,610 15,769 12,217 Other non-interest expense 12,445 14,165 14,738 Total non-interest expense 126,324 187,860 123,221 Income before income taxes 88,789 63,531 131,304 Provision (benefit) for income taxes 21,639 (61,724 ) 32,490 Net income $ 67,150 $ 125,255 $ 98,814 Earnings per common share, basic $ 0.79 $ 1.42 $ 1.06 Earnings per common share, diluted $ 0.79 $ 1.41 $ 1.06 BANKUNITED, INC. AND SUBSIDIARIES AVERAGE BALANCES AND YIELDS (Dollars in thousands) Three Months Ended March 31, 2022 Three Months Ended December 31, 2021 Three Months Ended March 31, 2021 Average Balance Interest (1) Yield/ Rate (1)(2) Average Balance Interest (1) Yield/ Rate (1)(2) Average Balance Interest (1) Yield/ Rate (1)(2) Assets: Interest earning assets: Loans $ 23,349,143 $ 194,551 3.36 % $ 22,919,535 $ 201,345 3.50 % $ 23,549,309 $ 208,821 3.58 % Investment securities (3) 10,083,083 43,719 1.73 % 10,113,026 38,889 1.54 % 9,070,185 39,188 1.73 % Other interest earning assets 674,640 1,354 0.81 % 1,184,056 1,397 0.47 % 1,062,840 1,593 0.61 % Total interest earning assets 34,106,866 239,624 2.83 % 34,216,617 241,631 2.81 % 33,682,334 249,602 2.98 % Allowance for credit losses (129,028 ) (149,319 ) (254,438 ) Non-interest earning assets 1,674,476 1,767,850 1,724,176 Total assets $ 35,652,314 $ 35,835,148 $ 35,152,072 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 3,078,037 $ 1,364 0.18 % $ 3,058,355 $ 1,481 0.19 % $ 2,942,874 $ 2,774 0.38 % Savings and money market deposits 13,401,332 6,931 0.21 % 13,460,084 9,619 0.28 % 12,793,019 12,127 0.38 % Time deposits 3,319,585 3,562 0.44 % 3,399,302 2,531 0.30 % 4,330,781 7,475 0.70 % Total interest bearing deposits 19,798,954 11,857 0.24 % 19,917,741 13,631 0.27 % 20,066,674 22,376 0.45 % Federal funds purchased 187,539 58 0.13 % 56,793 13 0.09 % 8,000 3 0.15 % FHLB advances 2,248,889 6,146 1.11 % 1,909,450 8,957 1.86 % 3,072,717 17,558 2.32 % Notes and other borrowings 721,405 9,261 5.13 % 721,525 9,257 5.13 % 722,305 9,252 5.12 % Total interest bearing liabilities 22,956,787 27,322 0.48 % 22,605,509 31,858 0.56 % 23,869,696 49,189 0.83 % Non-interest bearing demand deposits 9,047,864 9,330,805 7,491,249 Other non-interest bearing liabilities 623,199 785,254 746,973 Total liabilities 32,627,850 32,721,568 32,107,918 Stockholders' equity 3,024,464 3,113,580 3,044,154 Total liabilities and stockholders' equity $ 35,652,314 $ 35,835,148 $ 35,152,072 Net interest income $ 212,302 $ 209,773 $ 200,413 Interest rate spread 2.35 % 2.25 % 2.15 % Net interest margin 2.50 % 2.44 % 2.39 % ______________________________ (1) On a tax-equivalent basis where applicable (2) Annualized (3) At fair value except for securities held to maturity BANKUNITED, INC. AND SUBSIDIARIES EARNINGS PER COMMON SHARE (In thousands except share and per share amounts) Three Months Ended March 31, 2022 2021 Basic earnings per common share: Numerator: Net income $ 67,150 $ 98,814 Distributed and undistributed earnings allocated to participating securities (929 ) (1,252 ) Income allocated to common stockholders for basic earnings per common share $ 66,221 $ 97,562 Denominator: Weighted average common shares outstanding 84,983,873 93,075,702 Less average unvested stock awards (1,211,807 ) (1,205,529 ) Weighted average shares for basic earnings per common share 83,772,066 91,870,173 Basic earnings per common share $ 0.79 $ 1.06 Diluted earnings per common share: Numerator: Income allocated to common stockholders for basic earnings per common share $ 66,221 $ 97,562 Adjustment for earnings reallocated from participating securities 1 1 Income used in calculating diluted earnings per common share $ 66,222 $ 97,563 Denominator: Weighted average shares for basic earnings per common share 83,772,066 91,870,173 Dilutive effect of certain share-based awards 137,704 93,540 Weighted average shares for diluted earnings per common share 83,909,770 91,963,713 Diluted earnings per common share $ 0.79 $ 1.06 BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS Three Months Ended March 31, 2022 2021 Financial ratios (4) Return on average assets 0.76 % 1.14 % Return on average stockholders’ equity 9.0 % 13.2 % Net interest margin (3) 2.50 % 2.39 % March 31, 2022 December 31, 2021 Asset quality ratios Non-performing loans to total loans (1)(5) 0.65 % 0.87 % Non-performing assets to total assets (2)(5) 0.42 % 0.58 % Allowance for credit losses to total loans 0.54 % 0.53 % Allowance for credit losses to non-performing loans (1)(5) 83.17 % 61.41 % Net charge-offs to average loans (4) 0.15 % 0.29 % ______________________________ (1) We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. (2) Non-performing assets include non-performing loans, OREO and other repossessed assets. (3) On a tax-equivalent basis. (4) Annualized for the three month periods. (5) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.9 million or 0.18% of total loans and 0.12% of total assets at March 31, 2022; and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021. March 31, 2022 December 31, 2021 Required to be Considered Well Capitalized BankUnited, Inc. BankUnited, N.A. BankUnited, Inc. BankUnited, N.A. Capital ratios Tier 1 leverage 8.3 % 9.6 % 8.4 % 9.6 % 5.0 % Common Equity Tier 1 ("CET1") risk-based capital 12.5 % 14.5 % 12.6 % 14.5 % 6.5 % Total risk-based capital 14.3 % 15.0 % 14.3 % 14.9 % 10.0 % Non-GAAP Financial Measures ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands): March 31, 2022 December 31, 2021 Total loans (GAAP) $ 23,370,029 $ 23,765,053 Less: Government insured residential loans 1,938,479 2,023,221 Less: PPP loans 80,296 248,505 Less: MWL 701,172 1,092,133 Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) $ 20,650,082 $ 20,401,194 ACL $ 125,443 $ 126,457 ACL to total loans (GAAP) 0.54 % 0.53 % ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 0.61 % 0.62 % Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data): March 31, 2022 December 31, 2021 Total stockholders’ equity (GAAP) $ 2,861,232 $ 3,037,761 Less: goodwill 77,637 77,637 Tangible stockholders’ equity (non-GAAP) $ 2,783,595 $ 2,960,124 Common shares issued and outstanding 84,052,021 85,647,986 Book value per common share (GAAP) $ 34.04 $ 35.47 Tangible book value per common share (non-GAAP) $ 33.12 $ 34.56 View source version on businesswire.com: https://www.businesswire.com/news/home/20220421005135/en/Contacts BankUnited, Inc. Investor Relations: Leslie N. Lunak, 786-313-1698 llunak@bankunited.com
BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended March 31, 2022. "Despite the recent volatility in capital markets, we continue to see strength in our local economies. Consequently we remain optimistic about the rest of 2022 and continue to invest in and grow our core franchise -- one client at a time," said Rajinder Singh, Chairman, President and Chief Executive Officer. For the quarter ended March 31, 2022, the Company reported net income of $67.2 million, or $0.79 per diluted share, compared to $125.3 million or $1.41 per diluted share for the immediately preceding quarter ended December 31, 2021 and $98.8 million, or $1.06 per diluted share, for the quarter ended March 31, 2021. As previously reported, earnings for the quarter ended December 31, 2021 were impacted by discrete income tax benefits of $69.1 million and a $44.8 million pre-tax loss on discontinuance of hedges. Earnings for the quarter ended March 31, 2021 were favorably impacted by a $28.0 million recovery of the provision for credit losses. Quarterly Highlights Our new corporate banking office in Atlanta marks a renewed effort to expand outside of our core geographic markets of Florida and New York. We also expect to open a full service banking branch in the Dallas area in late April, 2022. In March, 2022 Newsweek named BankUnited one of America's most trusted companies. BankUnited was ranked #4 among banks on this list. The Company announced an increase of $0.02 in its cash dividend for the quarter ended March 31, 2022, to $0.25 per common share, reflecting a 9% increase from the previous quarterly dividend of $0.23 per common share. The net interest margin, calculated on a tax-equivalent basis, expanded to 2.50% for the quarter ended March 31, 2022 from 2.44% for the immediately preceding quarter and 2.39% for the quarter ended March 31, 2021. Net interest income increased by $2.6 million compared to the immediately preceding quarter ended December 31, 2021 and by $12.4 million compared to the quarter ended March 31, 2021. The average cost of total deposits was 0.17% for the quarter ended March 31, 2022 compared to 0.19% for the immediately preceding quarter ended December 31, 2021 and 0.33% for the quarter ended March 31, 2021. On a spot basis, the average annual percentage yield ("APY") on total deposits was 0.16% at both March 31, 2022 and December 31, 2021. Non-interest bearing demand deposits grew by $688 million during the quarter ended March 31, 2022. At March 31, 2022, non-interest bearing demand deposits represented 34% of total deposits, compared to 30% of total deposits at December 31, 2021. Total deposits declined by $897 million during the quarter ended March 31, 2022, with declines in interest bearing demand, savings and money market and time deposits. Total loans, excluding the runoff of PPP loans, declined by $227 million for the quarter ended March 31, 2022, while average loans, excluding PPP loans, increased by $586 million. The ratio of non-performing loans to total loans declined to 0.65% at March 31, 2022 from 0.87% at December 31, 2021. The guaranteed portion of SBA loans on non-accrual status represented 0.18% of total loans at March 31, 2022. Criticized and classified loans continued to decline. During the quarter ended March 31, 2022, total criticized and classified loans declined by $280 million. For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million compared to a provision of $0.2 million for the immediately preceding quarter ended December 31, 2021 and a recovery of the provision for credit losses of $(28.0) million for the quarter ended March 31, 2021. Results for the quarter were impacted by declines in the fair value of investment securities. Accumulated other comprehensive income declined by $142 million for the quarter ended March 31, 2022, primarily due to an increase in unrealized losses on investment securities available for sale. Non-interest income was impacted by a $10.5 million decline in the fair value of certain preferred stock investments. These declines in the fair value of securities resulted primarily from widening spreads and rising interest rates related to the Fed's plans for quantitative tightening and benchmark interest rate increases, as well as inflationary concerns. None of the unrealized losses were attributable to credit loss impairments; the Company expects to recover the amortized cost basis of its available for sale securities. At March 31, 2022, book value per common share and tangible book value per common share were $34.04 and $33.12, respectively. As previously reported, on February 2, 2022, the Company's Board of Directors authorized the repurchase of up to an additional $150 million in shares of its outstanding common stock. During the quarter ended March 31, 2022, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $82.1 million, at a weighted average price of $42.50 per share. Loans A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands): March 31, 2022 December 31, 2021 Residential and other consumer loans $ 8,612,839 36.8 % $ 8,368,380 35.2 % Multi-family 1,072,981 4.6 % 1,154,738 4.9 % Non-owner occupied commercial real estate 4,284,675 18.3 % 4,381,610 18.4 % Construction and land 176,825 0.8 % 165,390 0.7 % Owner occupied commercial real estate 1,905,395 8.2 % 1,944,658 8.2 % Commercial and industrial 4,951,999 21.2 % 4,790,275 20.2 % PPP 80,296 0.3 % 248,505 1.0 % Pinnacle 935,915 4.0 % 919,641 3.9 % Bridge - franchise finance 306,563 1.3 % 342,124 1.4 % Bridge - equipment finance 341,369 1.5 % 357,599 1.5 % Mortgage warehouse lending ("MWL") 701,172 3.0 % 1,092,133 4.6 % $ 23,370,029 100.0 % $ 23,765,053 100.0 % Residential and other consumer loans grew by $244 million during the quarter ended March 31, 2022. Commercial and industrial loans, including owner-occupied commercial real estate, grew by $122 million for the quarter. Most of the remaining commercial portfolio segments showed declines for the quarter. MWL utilization declined to 39% at March 31, 2022 compared to 56% at December 31, 2021 as rising rates have led to lower refinancing activity and this segment is evidencing a return to historically normal seasonal utilization patterns. PPP loans declined by $168 million during the quarter ended March 31, 2022, resulting from full or partial forgiveness from the Small Business Administration. Asset Quality and the Allowance for Credit Losses ("ACL") Non-performing loans totaled $150.8 million or 0.65% of total loans at March 31, 2022, compared to $205.9 million or 0.87% of total loans at December 31, 2021. Non-performing loans included $41.9 million and $46.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.18% of total loans at March 31, 2022 and 0.19% of total loans at December 31, 2021. The following table presents criticized and classified commercial loans at the dates indicated (in thousands): March 31, 2022 December 31, 2021 Special mention $ 95,250 $ 148,593 Substandard - accruing 956,318 1,136,378 Substandard - non-accruing 104,329 129,579 Doubtful 26,678 47,754 Total $ 1,182,575 $ 1,462,304 Loans currently under short-term deferral or modified under the CARES Act totaled $149 million at March 31, 2022, down from a total of $205 million at December 31, 2021. The following table presents the ACL and related ACL coverage ratios at the dates indicated and net charge-off rates for the three months ended March 31, 2022 and year ended December 31, 2021 (dollars in thousands): ACL ACL to Total Loans (1) ACL to Non- Performing Loans Net Charge-offs to Average Loans(2) December 31, 2021 $ 126,457 0.53 % 61.41 % 0.29 % March 31, 2022 $ 125,443 0.54 % 83.17 % 0.15 % ______________________________ (1) ACL to total loans, excluding government insured residential loans, PPP loans and MWL, which carry nominal or no reserves, was 0.61% and 0.62% at March 31, 2022 and December 31, 2021, respectively. (2) Annualized for the three months ended March 31, 2022. The ACL at March 31, 2022 represents management's estimate of lifetime expected credit losses given our assessment of historical data, current conditions and a reasonable and supportable economic forecast as of the balance sheet date. The estimate was informed by Moody's economic scenarios published in March 2022, economic information provided by additional sources including developments subsequent to publishing of the scenarios, information about borrower financial condition and collateral values and other relevant information. For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $7.8 million, which included a provision of $7.4 million related to funded loans and a $0.4 million provision related to unfunded loan commitments. The most significant factor impacting the provision for credit losses for the quarter ended March 31, 2022 was an increase in qualitative loss factors related to economic uncertainty. The following table summarizes the activity in the ACL for the periods indicated (in thousands): Three Months Ended March 31, 2022 2021 Beginning balance $ 126,457 $ 257,323 Provision (recovery) 7,446 (26,306 ) Net charge-offs (8,460 ) (10,083 ) Ending balance $ 125,443 $ 220,934 Funding Total deposits declined by $897 million for the quarter ended March 31, 2022. The majority of deposit outflows were accounts that, based on prior experience, we would expect to be price sensitive in a rising rate environment. While we initially did not anticipate growth in the securities portfolio, total investment securities increased by $508 million for the quarter as we took advantage of opportunities to purchase securities at attractive spreads. Correspondingly, FHLB advances increased by $1.5 billion during the quarter ended March 31, 2022. Net Interest Income Net interest income for the quarter ended March 31, 2022 was $208.6 million compared to $206.0 million for the immediately preceding quarter ended December 31, 2021 and $196.2 million for the quarter ended March 31, 2021. The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.50% for the quarter ended March 31, 2022, from 2.44% for the immediately preceding quarter ended December 31, 2021. Factors impacting the net interest margin for the quarter ended March 31, 2022 included: The tax-equivalent yield on investment securities increased to 1.73% for the quarter ended March 31, 2022 from 1.54% for the quarter ended December 31, 2021. This increase resulted from the impact of purchases of higher-yielding securities and the impact of slower prepayment speeds on securities purchased at a premium. The tax-equivalent yield on loans decreased to 3.36% for the quarter ended March 31, 2022, from 3.50% for the quarter ended December 31, 2021. Factors that contributed to the decline included slower prepayment speeds on PCD residential loans, the effect of the sale of a pool of higher yielding residential loans during the fourth quarter of 2021, and runoff of loans originated in a comparatively higher rate environment. The average rate paid on FHLB advances decreased to 1.11% for the quarter ended March 31, 2022, from 1.86% for the quarter ended December 31, 2021. This decrease resulted from the maturity of higher rate advances, including the termination of certain cash flow hedges during the quarter ended December 31, 2021, and the addition of new advances at comparatively lower prevailing rates. The average rate paid on interest bearing deposits decreased to 0.24% for the quarter ended March 31, 2022, from 0.27% for the quarter ended December 31, 2021. Callable and other brokered CDs and cash flow hedges entered into in anticipation of rising rates impacted the cost of deposits for the quarter; the average rate paid on interest bearing deposits excluding these instruments was 0.21% for the quarter ended March 31, 2022. The increase in the average cost of time deposits for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021 was attributable to these products. The average cost of time deposits other than these products was 0.22% for the quarter ended March 31, 2022. Non-interest income and Non-interest expense Non-interest income totaled $14.3 million for the quarter ended March 31, 2022 compared to $45.6 million for the quarter ended December 31, 2021 and $30.3 million for the quarter ended March 31, 2021. Gain (loss) on investment securities was a net loss of $(7.9) million for the quarter ended March 31, 2022 compared to net gains of $0.6 million and $2.4 million for the quarters ended December 31, 2021 and March 31, 2021, respectively. The net loss for the quarter ended March 31, 2022 was attributable to a $10.5 million decline in the fair value of certain preferred stock investments resulting from rising market interest rates. As previously disclosed, gain on sale of loans for the quarter ended December 31, 2021 included a gain of $18.2 million on the sale of a pool of residential mortgages. Other non-interest income for the quarter ended March 31, 2022 compared to the quarters ended December 31, 2021 and March 31, 2021 reflected declines in income related to investments in bank-owned life insurance, and as compared to the quarter ended March 31, 2021, a decline in revenue related to our commercial derivative program. Non-interest expense totaled $126.3 million for the quarter ended March 31, 2022 compared to $123.2 million for the quarter ended March 31, 2021 and $187.9 million for the quarter ended December 31, 2021. The most significant offsetting factors contributing to the increase in non-interest expense compared to the quarter ended March 31, 2021 were (i) a $7.8 million increase in employee compensation and benefits and (ii) a $4.0 million decline in deposit insurance expense reflecting a decrease in the FDIC assessment rate. Non-interest expense for the quarter ended December 31, 2021 included a $44.8 million loss on discontinuance of cash flow hedges. Employee compensation and benefits declined by $3.5 million for the quarter ended March 31, 2022 compared to the quarter ended December 31, 2021. The quarter ended December 31, 2021 included $6.8 million related to a special employee bonus. Earnings Conference Call and Presentation A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, April 21, 2022 with Chairman, President and Chief Executive Officer, Rajinder P. Singh, Chief Financial Officer, Leslie N. Lunak and Chief Operating Officer, Thomas M. Cornish. The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. The dial in telephone number for the call is (855) 798-3052 (domestic) or (234) 386-2812 (international). The name of the call is BankUnited, Inc. and the conference ID for the call is 6761489. A replay of the call will be available from 12:00 p.m. ET on April 21st through 11:59 p.m. ET on April 28th by calling (855) 859-2056 (domestic) or (404) 537-3406 (international). The conference ID for the replay is 6761489. An archived webcast will also be available on the Investor Relations page of www.bankunited.com. About BankUnited, Inc. BankUnited, Inc., with total assets of $36.3 billion at March 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida with 62 banking centers in 12 Florida counties and 4 banking centers in the New York metropolitan area. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitations) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov). BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) March 31, 2022 December 31, 2021 ASSETS Cash and due from banks: Non-interest bearing $ 17,780 $ 19,143 Interest bearing 679,712 295,714 Cash and cash equivalents 697,492 314,857 Investment securities (including securities recorded at fair value of $10,562,098 and $10,054,198) 10,572,098 10,064,198 Non-marketable equity securities 190,534 135,859 Loans 23,370,029 23,765,053 Allowance for credit losses (125,443 ) (126,457 ) Loans, net 23,244,586 23,638,596 Bank owned life insurance 314,697 309,477 Operating lease equipment, net 627,146 640,726 Goodwill 77,637 77,637 Other assets 607,434 634,046 Total assets $ 36,331,624 $ 35,815,396 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Demand deposits: Non-interest bearing $ 9,663,307 $ 8,975,621 Interest bearing 2,872,430 3,709,493 Savings and money market 13,029,823 13,368,745 Time 2,975,715 3,384,243 Total deposits 28,541,275 29,438,102 Federal funds purchased 199,000 199,000 FHLB advances 3,395,000 1,905,000 Notes and other borrowings 721,291 721,416 Other liabilities 613,826 514,117 Total liabilities 33,470,392 32,777,635 Commitments and contingencies Stockholders' equity: Common stock, par value $0.01 per share, 400,000,000 shares authorized; 84,052,021 and 85,647,986 shares issued and outstanding 841 856 Paid-in capital 626,564 707,503 Retained earnings 2,391,526 2,345,342 Accumulated other comprehensive loss (157,699 ) (15,940 ) Total stockholders' equity 2,861,232 3,037,761 Total liabilities and stockholders' equity $ 36,331,624 $ 35,815,396 BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) Three Months Ended March 31, December 31, March 31, 2022 2021 2021 Interest income: Loans $ 191,562 $ 198,275 $ 205,335 Investment securities 43,048 38,201 38,501 Other 1,354 1,397 1,593 Total interest income 235,964 237,873 245,429 Interest expense: Deposits 11,857 13,631 22,376 Borrowings 15,465 18,227 26,813 Total interest expense 27,322 31,858 49,189 Net interest income before provision for credit losses 208,642 206,015 196,240 Provision for (recovery of) credit losses 7,830 246 (27,989 ) Net interest income after provision for credit losses 200,812 205,769 224,229 Non-interest income: Deposit service charges and fees 5,960 5,815 4,900 Gain (loss) on sale of loans, net (824 ) 19,003 1,754 Gain (loss) on investment securities, net (7,868 ) 590 2,365 Lease financing 13,415 14,041 12,488 Other non-interest income 3,618 6,173 8,789 Total non-interest income 14,301 45,622 30,296 Non-interest expense: Employee compensation and benefits 67,088 70,561 59,288 Occupancy and equipment 11,512 12,817 11,875 Deposit insurance expense 3,403 3,471 7,450 Professional fees 2,262 8,023 1,912 Technology and telecommunications 17,004 18,221 15,741 Discontinuance of cash flow hedges — 44,833 — Depreciation and impairment of operating lease equipment 12,610 15,769 12,217 Other non-interest expense 12,445 14,165 14,738 Total non-interest expense 126,324 187,860 123,221 Income before income taxes 88,789 63,531 131,304 Provision (benefit) for income taxes 21,639 (61,724 ) 32,490 Net income $ 67,150 $ 125,255 $ 98,814 Earnings per common share, basic $ 0.79 $ 1.42 $ 1.06 Earnings per common share, diluted $ 0.79 $ 1.41 $ 1.06 BANKUNITED, INC. AND SUBSIDIARIES AVERAGE BALANCES AND YIELDS (Dollars in thousands) Three Months Ended March 31, 2022 Three Months Ended December 31, 2021 Three Months Ended March 31, 2021 Average Balance Interest (1) Yield/ Rate (1)(2) Average Balance Interest (1) Yield/ Rate (1)(2) Average Balance Interest (1) Yield/ Rate (1)(2) Assets: Interest earning assets: Loans $ 23,349,143 $ 194,551 3.36 % $ 22,919,535 $ 201,345 3.50 % $ 23,549,309 $ 208,821 3.58 % Investment securities (3) 10,083,083 43,719 1.73 % 10,113,026 38,889 1.54 % 9,070,185 39,188 1.73 % Other interest earning assets 674,640 1,354 0.81 % 1,184,056 1,397 0.47 % 1,062,840 1,593 0.61 % Total interest earning assets 34,106,866 239,624 2.83 % 34,216,617 241,631 2.81 % 33,682,334 249,602 2.98 % Allowance for credit losses (129,028 ) (149,319 ) (254,438 ) Non-interest earning assets 1,674,476 1,767,850 1,724,176 Total assets $ 35,652,314 $ 35,835,148 $ 35,152,072 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 3,078,037 $ 1,364 0.18 % $ 3,058,355 $ 1,481 0.19 % $ 2,942,874 $ 2,774 0.38 % Savings and money market deposits 13,401,332 6,931 0.21 % 13,460,084 9,619 0.28 % 12,793,019 12,127 0.38 % Time deposits 3,319,585 3,562 0.44 % 3,399,302 2,531 0.30 % 4,330,781 7,475 0.70 % Total interest bearing deposits 19,798,954 11,857 0.24 % 19,917,741 13,631 0.27 % 20,066,674 22,376 0.45 % Federal funds purchased 187,539 58 0.13 % 56,793 13 0.09 % 8,000 3 0.15 % FHLB advances 2,248,889 6,146 1.11 % 1,909,450 8,957 1.86 % 3,072,717 17,558 2.32 % Notes and other borrowings 721,405 9,261 5.13 % 721,525 9,257 5.13 % 722,305 9,252 5.12 % Total interest bearing liabilities 22,956,787 27,322 0.48 % 22,605,509 31,858 0.56 % 23,869,696 49,189 0.83 % Non-interest bearing demand deposits 9,047,864 9,330,805 7,491,249 Other non-interest bearing liabilities 623,199 785,254 746,973 Total liabilities 32,627,850 32,721,568 32,107,918 Stockholders' equity 3,024,464 3,113,580 3,044,154 Total liabilities and stockholders' equity $ 35,652,314 $ 35,835,148 $ 35,152,072 Net interest income $ 212,302 $ 209,773 $ 200,413 Interest rate spread 2.35 % 2.25 % 2.15 % Net interest margin 2.50 % 2.44 % 2.39 % ______________________________ (1) On a tax-equivalent basis where applicable (2) Annualized (3) At fair value except for securities held to maturity BANKUNITED, INC. AND SUBSIDIARIES EARNINGS PER COMMON SHARE (In thousands except share and per share amounts) Three Months Ended March 31, 2022 2021 Basic earnings per common share: Numerator: Net income $ 67,150 $ 98,814 Distributed and undistributed earnings allocated to participating securities (929 ) (1,252 ) Income allocated to common stockholders for basic earnings per common share $ 66,221 $ 97,562 Denominator: Weighted average common shares outstanding 84,983,873 93,075,702 Less average unvested stock awards (1,211,807 ) (1,205,529 ) Weighted average shares for basic earnings per common share 83,772,066 91,870,173 Basic earnings per common share $ 0.79 $ 1.06 Diluted earnings per common share: Numerator: Income allocated to common stockholders for basic earnings per common share $ 66,221 $ 97,562 Adjustment for earnings reallocated from participating securities 1 1 Income used in calculating diluted earnings per common share $ 66,222 $ 97,563 Denominator: Weighted average shares for basic earnings per common share 83,772,066 91,870,173 Dilutive effect of certain share-based awards 137,704 93,540 Weighted average shares for diluted earnings per common share 83,909,770 91,963,713 Diluted earnings per common share $ 0.79 $ 1.06 BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS Three Months Ended March 31, 2022 2021 Financial ratios (4) Return on average assets 0.76 % 1.14 % Return on average stockholders’ equity 9.0 % 13.2 % Net interest margin (3) 2.50 % 2.39 % March 31, 2022 December 31, 2021 Asset quality ratios Non-performing loans to total loans (1)(5) 0.65 % 0.87 % Non-performing assets to total assets (2)(5) 0.42 % 0.58 % Allowance for credit losses to total loans 0.54 % 0.53 % Allowance for credit losses to non-performing loans (1)(5) 83.17 % 61.41 % Net charge-offs to average loans (4) 0.15 % 0.29 % ______________________________ (1) We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. (2) Non-performing assets include non-performing loans, OREO and other repossessed assets. (3) On a tax-equivalent basis. (4) Annualized for the three month periods. (5) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $41.9 million or 0.18% of total loans and 0.12% of total assets at March 31, 2022; and $46.1 million or 0.19% of total loans and 0.13% of total assets at December 31, 2021. March 31, 2022 December 31, 2021 Required to be Considered Well Capitalized BankUnited, Inc. BankUnited, N.A. BankUnited, Inc. BankUnited, N.A. Capital ratios Tier 1 leverage 8.3 % 9.6 % 8.4 % 9.6 % 5.0 % Common Equity Tier 1 ("CET1") risk-based capital 12.5 % 14.5 % 12.6 % 14.5 % 6.5 % Total risk-based capital 14.3 % 15.0 % 14.3 % 14.9 % 10.0 % Non-GAAP Financial Measures ACL to total loans, excluding government insured residential loans, PPP loans and MWL is a non-GAAP financial measure. Management believes this measure is relevant to understanding the adequacy of the ACL coverage, excluding the impact of loans which carry nominal or no reserves. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions. The following table reconciles the non-GAAP financial measurement of ACL to total loans, excluding government insured residential loans, PPP loans and MWL to the comparable GAAP financial measurement of ACL to total loans at the dates indicated (dollars in thousands): March 31, 2022 December 31, 2021 Total loans (GAAP) $ 23,370,029 $ 23,765,053 Less: Government insured residential loans 1,938,479 2,023,221 Less: PPP loans 80,296 248,505 Less: MWL 701,172 1,092,133 Total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) $ 20,650,082 $ 20,401,194 ACL $ 125,443 $ 126,457 ACL to total loans (GAAP) 0.54 % 0.53 % ACL to total loans, excluding government insured residential loans, PPP loans and MWL (non-GAAP) 0.61 % 0.62 % Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data): March 31, 2022 December 31, 2021 Total stockholders’ equity (GAAP) $ 2,861,232 $ 3,037,761 Less: goodwill 77,637 77,637 Tangible stockholders’ equity (non-GAAP) $ 2,783,595 $ 2,960,124 Common shares issued and outstanding 84,052,021 85,647,986 Book value per common share (GAAP) $ 34.04 $ 35.47 Tangible book value per common share (non-GAAP) $ 33.12 $ 34.56 View source version on businesswire.com: https://www.businesswire.com/news/home/20220421005135/en/