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| Bank United Corp. Announces 2000 First Fiscal Quarter Earnings |
HOUSTON, Jan. 24 /PRNewswire/ -- Bank United Corp. (Nasdaq: BNKU; NYSE: BKP) (the "Company"), parent of Bank United (NYSE: BKU PrA and BKU PrB) (the "Bank"), today announced earnings for its first fiscal quarter ended December 31, 1999. Net income for the quarter increased to $31.8 million or $.87 per diluted share compared to the year ago quarter's results of $27.4 million or $.83 per diluted share. Net income increased 16% and diluted earnings per share increased $.04 per share or 5% over the year ago quarter. The Company closed the quarter with total assets of $17.4 billion, up $2.4 billion or 16% from December 31, 1998 and $1.1 billion or 7% from September 30, 1999. Barry C. Burkholder, President and CEO, stated, "Our results reflect the successful diversification of the Company's business into commercial and consumer banking which produced substantial growth in net interest income and fee income from our core businesses. Total net revenue for the quarter increased 20% even though the prior year quarter included $.12 per diluted share of higher mortgage banking gains resulting from last year's refinance boom. "We anticipate increased servicing, commercial and community banking income going forward will offset the effects of lower single family originations and sales," Burkholder added. For the quarter ended December 31, 1998, reported earnings included $2.8 million of Court of Claims expense, which reduced net income by $.05 per diluted share. If this expense was excluded, adjusted earnings for the quarter would have been $29.1 million or $.88 per diluted share. For the quarter ended December 31, 1999, adjusted earnings equaled reported earnings of $.87 per diluted share. Bank United Corp. is the largest publicly traded depository institution headquartered in Texas. Through Bank United, the Company operates a 152- branch community banking network in Texas, including 64 branches in the greater Houston area, 79 in Dallas/Ft Worth, five in Midland, and two each in Austin and San Antonio; operates 25 SBA lending offices in 16 states; is a national middle market commercial bank with 21 regional offices in 16 states; originates mortgage loans through 11 wholesale offices in 10 states; operates a national mortgage servicing business serving approximately 339,000 customers, and manages an investment portfolio. The Company's website can be found at http://www.bankunited.com. Bank United is FDIC insured and an equal housing lender. Additional comments and supplemental financial data are attached. NET INTEREST INCOME Net interest income for the quarter increased 27% to $99.7 million compared to $78.2 million for the year ago quarter and was comparable to the September 1999 quarter. Interest-Earning Assets Average interest-earning assets again reached record levels increasing 20% to $15.6 billion during the current quarter as compared to the year ago quarter, primarily due to a 57% increase in average commercial loans. Net Yield The net yield on interest-earning assets was 2.60% for the quarter, compared to 2.44% for the year ago quarter, and 2.64% on a normalized basis for the September 1999 quarter (2.73% on a reported basis, which included a one time cash receipt on a purchased commercial loan). The Company's net interest income and gross yields benefited during the quarter from rate resets on its substantial portfolio of adjustable rate loans. The increase in gross yields more than offset the rise in the cost of funds, resulting in a 16 basis point increase in the net yield for the current quarter as compared to the year ago quarter. An increase in the number of lower costing transaction deposit accounts reduced the effect of rising market interest rates on the cost of funds. NON-INTEREST INCOME Non-interest income totalled $33.3 million for the quarter, which was consistent with the year ago quarter and up slightly from the September 1999 quarter. Non-interest income is comprised of loan servicing fees, community banking deposit related fees, gains from annuity and security sales to consumers, commercial banking fees, and gains from sales of mortgage and SBA loans. Loan Servicing Fees The largest component of non-interest income is loan servicing fees, which totalled $16.8 million for the quarter, an increase of $2.1 million or 14% compared to the prior year quarter. This increase was primarily due to a 19% increase in the servicing portfolio and a 12% increase in the average servicing fee rate. The increase in the servicing portfolio is due to purchases during the twelve months, large portions of which were GNMAs. The average servicing fee rate rose to 45.1 basis points for the current quarter, compared to 40.4 basis points for the prior year quarter. The Company's portfolio of loans serviced for others was $27.5 billion at December 31, 1999. Net Gains Net gains from mortgage banking and SBA banking sales comprised the majority of the $4.6 million in gains for the current quarter, which were down $5.2 million or 53% from the year ago quarter. Mortgage banking gains declined $6.3 million from the year ago quarter due to lower sales volumes in the current quarter ($352 million sold in the current quarter compared to $1.3 billion sold in the year ago quarter). A significant drop in refinancings from the year ago quarter caused a sizable reduction in originations, contributing to the lower sales volume in the current quarter. SBA banking gains were $1.9 million for the quarter, up 49% from the year ago quarter, demonstrating the continued success in this business year over year. Deposit Fees and Charges Deposit fees and charges reached $7.9 million during the quarter for a $3.0 million or 63% increase compared to the year ago quarter. A 29% increase in the number of checking accounts resulting from the 7-Day Banking Center expansion contributed to this considerable increase. NON-INTEREST EXPENSE Excluding litigation expenses related to the Court of Claims case in both periods, non-interest expense for the quarter totalled $68.7 million, compared to $51.1 million for the year ago quarter. This increase is primarily a result of growth in the community bank, most particularly the 7-Day Banking Centers and the expansion into Midland, Texas ($9.5 million pre-tax), as well as the SBA banking initiative ($1.9 million pre-tax). Costs associated with new offices for commercial and wholesale lending and technology initiatives also contributed to the increase. The Company's efficiency ratio, adjusted for the Court of Claims expense, was 50.65% for the current quarter. LOAN ACTIVITY The Company's loan portfolio totalled $14.0 billion at December 31, 1999, up $2.1 billion or 18% over the prior year, and $881 million or 7% over September 30, 1999. The most significant change in the current quarter was in the commercial loan portfolio. Commercial The commercial loan portfolio, which is principally comprised of single family construction, multi-family and commercial real estate, healthcare, and mortgage banker finance line of credit loans, totalled $6.2 billion at December 31, 1999, up $2.0 billion or 47% from the year ago period, and $743.1 million or 14% over September 30, 1999. The Company again achieved record levels of commercial loan fundings of $1.7 billion for the current quarter, compared to $1.0 billion for the year ago quarter, and $1.3 billion for the September 1999 quarter. In October, the Company purchased $658 million of mortgage banker finance and consumer finance lines of credit (with $398 million in outstandings) from First Union. Small Business and SBA Small business and SBA loans, which are included in the commercial loan portfolio, totalled $389 million ($185 million of small business and $204 million of SBA) at December 31, 1999, up $174 million or 81% from December 31, 1998. Small business and SBA fundings for the quarter achieved another record high of $94.3 million, up 117% over the year ago quarter and 28% over the September 1999 quarter. Single Family The single family loan portfolio remained flat at $7.2 billion at December 31, 1999 as compared to December 31, 1998. Single family fundings for the current quarter totalled $641.7 million, compared to $1.6 billion for the year ago quarter, and $574.1 million for the September 1999 quarter. Lower funding levels during the current quarter as compared to the year ago quarter reflect the continued rise in long-term market interest rates and lower levels of refinancings. Refinancings represented 52% of total originations for the quarter, compared to 81% for the year ago quarter. Consumer Consumer loans totalled $693.4 million at December 31, 1999, up $165.5 million or 31% from the prior year, and $30.1 million or 5% from September 30, 1999. Consumer loan fundings were $82.7 million for the quarter, compared to $64.5 million for the year ago quarter, and $83.2 million for the September 1999 quarter. Loan Composition At December 31, 1999, the composition of the loan portfolio was single family 51%, commercial 44%, and consumer 5%. The composition at December 31, 1998 was single family 60%, commercial 35%, and consumer 5%. ASSET QUALITY The Company continues to maintain high asset quality. The nonperforming assets ratio was .64% at December 31, 1999, compared to .61% at December 31, 1998, and .67% at September 30, 1999. Nonperforming assets, 80% of which are single family loans and single family real estate, were $111.9 million at December 31, 1999, compared to $90.6 million at December 31, 1998, and $108.3 million at September 30, 1999. Net charge-offs totalled $2.1 million or .06% (annualized) of average loans for the quarter, compared to $1.3 million or .05% for the December 1998 quarter, and $1.6 million or .05% for the September 1999 quarter . The allowance for credit losses totalled $87.8 million at December 31, 1999, or .69% of average loans, compared to $82.7 million or .68% at September 30, 1999. At December 31, 1999, the allowance for credit losses to average loans, by type, was: .34% for the single family portfolio, 1.29% for the commercial portfolio, and .36% for the consumer portfolio. DEPOSITS Total deposits were $8.4 billion at December 31, 1999, up $1.4 billion from the year ago period. Growth within the community bank accounted for $648 million of the increase. The 7-Day Banking Center initiative has sourced to date $376 million and 65,000 in checking accounts. The acquisition of Midland American Bank in the second quarter of fiscal 1999 contributed $237 million to the increase. BANK UNITED The Company also announced net income of $38.6 million for the quarter for its subsidiary Bank United, compared to $35.2 million for the year ago quarter. Capital levels of the Bank at December 31, 1999 qualify it as "well- capitalized", the highest of five tiers under applicable regulatory guidelines. OTHER CORPORATE MATTERS Year 2000 Readiness Disclosure All of the Company's systems worked without incident through the end of the year 1999 and into the year 2000. Court of Claims Litigation On March 19, 1999, United States Court of Federal Claims Chief Judge Loren A. Smith ruled that the United States was liable for claims in the case filed by Bank United Corp. relating to the government's breach of contracts made when the Company acquired a failed savings and loan association in late 1988. The Company's case proceeded to trial on the amount of damages on September 13, 1999, and the taking of evidence by the court concluded on October 21, 1999. The parties have now submitted post-trial briefs and final oral argument will be held on January 26, 2000. A decision by the court is expected in the first half of calendar year 2000. The suit seeks damages of approximately $560 million. FORWARD LOOKING INFORMATION Statements contained herein concerning Bank United Corp.'s projections, plans, or objectives, and, more particularly, statements concerning the strength of its business, anticipated earnings increases, success of its 7-Day Banking Centers in Kroger stores, high asset quality, growth in both commercial and consumer loan production levels, net servicing fee revenue, SBA loan gains, the mortgage banker finance line of credit or single family construction business or increases in revenues or shareholder value due to branch expansion or new technology are forward-looking statements under the Private Securities Reform Act of 1995. Actual results could differ materially from those projected due to changes in interest rates, competition in the industry, changes in economic conditions, and other factors. More information on risk factors affecting the Company is available under the heading Forward Looking Information in the Company's Annual Report on Form 10-K for the year ended September 30, 1999 on file with the SEC. Additional Supplemental Financial Information Attached BANK UNITED CORP. SUPPLEMENTAL BALANCE SHEET, AS REPORTED (dollars in thousands) (unaudited) December 31, September 30, December 31, 1999 1999 1998 Assets Cash and cash equivalents 326,593 183,260 329,903 Securities purchased under agreements to resell and federal funds sold 488,714 390,326 206,649 Securities and other investments 145,533 143,538 102,335 Mortgage-backed securities 901,805 1,004,002 1,178,540 Loans Single family held for investment 6,482,085 6,451,606 5,363,755 Single family held for sale 669,958 592,583 1,783,143 Commercial 6,151,726 5,408,675 4,189,806 Consumer 693,405 663,338 527,918 Federal Home Loan Bank stock 335,088 328,886 299,201 Mortgage servicing rights 567,376 534,694 417,235 Servicing receivables 139,841 116,397 155,825 Deferred tax asset 109,519 110,512 103,350 Premises and equipment 88,755 88,684 69,793 Intangible assets 82,948 83,778 58,253 Real estate owned 15,144 17,278 26,669 Other assets 153,711 127,122 127,249 Total assets 17,352,201 16,244,679 14,939,624 Liabilities Deposits 8,361,782 7,508,502 6,967,250 Federal Home Loan Bank advances 6,593,293 6,443,470 5,888,498 Securities sold under agreements to repurchase and federal funds purchased 634,722 516,900 764,657 Notes payable 368,786 368,762 219,726 Other liabilities 275,073 308,131 200,898 Total liabilities 16,233,656 15,145,765 14,041,029 Minority interest and redeemable preferred stock Preferred stock issued by consolidated subsidiary 185,500 185,500 185,500 Redeemable preferred stock 160,000 160,000 0 Total minority interest and redeemable preferred stock 345,500 345,500 185,500 Stockholders' equity Common stock 325 325 322 Paid-in capital 132,411 132,153 132,066 Retained earnings 669,222 646,549 583,281 Unearned stock compensation (4,235) (4,686) 0 Accumulated other comprehensive income - unrealized gains (losses) on securities available for sale, net of tax (23,736) (20,058) (1,511) Treasury stock, at cost (942) (869) (1,063) Total stockholders' equity 773,045 753,414 713,095 Total liabilities and stockholders' equity 17,352,201 16,244,679 14,939,624 BANK UNITED CORP. INCOME STATEMENT TREND, AS REPORTED (dollars in thousands, except per share data) (unaudited) For the Quarter Ended 12/31/99 09/30/99 Interest income Short-term interest-earning assets 4,394 5,405 Securities and other investments 3,460 2,035 Mortgage-backed securities 16,289 16,175 Loans 265,764 248,036 Federal Home Loan Bank stock 4,767 4,437 Total interest income 294,674 276,088 Interest expense Deposits 88,066 78,173 Federal Home Loan Bank advances 91,376 83,804 Securities sold under agreements to repurchase and federal funds purchased 7,645 6,899 Notes payable 7,921 7,913 Total interest expense 195,008 176,789 Net interest income 99,666 99,299 Provision for credit losses 7,142 20,283 Net interest income after provision for credit losses 92,524 79,016 Non-interest income Loan servicing fees 34,583 33,464 Less amortization expense 17,737 18,939 Net servicing fees 16,846 14,525 Net gains (losses) on sales Sales of single family loans 2,213 2,106 Securities and mortgage-backed securities 633 173 Other loans 1,704 1,393 Net gains (losses) on sales 4,550 3,672 Deposit fees and charges 7,887 7,478 Other 4,056 5,333 Total non-interest income 33,339 31,008 Non-interest expense Compensation and benefits 32,728 33,681 Occupancy 6,149 6,914 Data processing 6,587 6,230 Court of claims litigation 625 1,749 Amortization of intangibles 1,806 1,864 REO operations, net (319) 722 Merger related and restructuring costs 0 2,394 Other 21,699 21,845 Total non-interest expense 69,275 75,399 Income before income taxes and minority interest 56,588 34,625 Income tax expense 20,248 (1,356) Income before minority interest 36,340 35,981 Minority interest - subsidiary preferred stock dividends 4,563 4,564 Net income 31,777 31,417 Net income available to common stockholders 28,812 29,715 Basic earnings per common share 0.89 0.92 Diluted earnings per common share 0.87 0.90 BANK UNITED CORP. INCOME STATEMENT TREND, AS REPORTED (dollars in thousands, except per share data) (unaudited) 06/30/99 03/31/99 12/31/98 Interest income Short-term interest-earning assets 4,839 5,498 4,950 Securities and other investments 1,746 2,006 1,627 Mortgage-backed securities 17,744 17,779 17,967 Loans 222,975 213,263 209,765 Federal Home Loan Bank stock 3,857 4,059 3,823 Total interest income 251,161 242,605 238,132 Interest expense Deposits 72,789 71,292 74,376 Federal Home Loan Bank advances 73,732 74,948 70,530 Securities sold under agreements to repurchase and federal funds purchased 7,242 8,666 10,122 Notes payable 7,904 5,088 4,887 Total interest expense 161,667 159,994 159,915 Net interest income 89,494 82,611 78,217 Provision for credit losses 5,617 5,982 6,486 Net interest income after provision for credit losses 83,877 76,629 71,731 Non-interest income Loan servicing fees 29,193 28,940 30,153 Less amortization expense 16,908 16,065 15,430 Net servicing fees 12,285 12,875 14,723 Net gains (losses) on sales Sales of single family loans 3,628 4,662 8,513 Securities and mortgage-backed securities 332 605 180 Other loans 879 (38) 1,065 Net gains (losses) on sales 4,839 5,229 9,758 Deposit fees and charges 5,901 4,958 4,839 Other 4,439 5,264 3,843 Total non-interest income 27,464 28,326 33,163 Non-interest expense Compensation and benefits 28,611 25,419 22,233 Occupancy 5,859 5,340 4,728 Data processing 5,293 4,700 4,351 Court of claims litigation 1,749 1,316 2,761 Amortization of intangibles 1,863 1,582 1,338 REO operations, net 566 623 (31) Merger related and restructuring costs 0 0 0 Other 19,801 17,653 18,491 Total non-interest expense 63,742 56,633 53,871 Income before income taxes and minority interest 47,599 48,322 51,023 Income tax expense 17,639 18,292 19,084 Income before minority interest 29,960 30,030 31,939 Minority interest - subsidiary preferred stock dividends 4,563 4,563 4,563 Net income 25,397 25,467 27,376 Net income available to common stockholders 25,397 25,467 27,376 Basic earnings per common share 0.78 0.79 0.85 Diluted earnings per common share 0.77 0.77 0.83 BANK UNITED CORP. FINANCIAL HIGHLIGHTS TREND, AS REPORTED (dollars in thousands, except per share data) (unaudited) For the Quarter Ended 12/31/99 09/30/99 For the period ended Loan fundings Single family 641,697 574,101 Commercial 1,669,388 1,291,830 Consumer 82,701 83,162 Total 2,393,786 1,949,093 NOLs utilized during period 14,900 12,300 NOL balance at period end 319,300 334,200 Common share data Average shares outstanding-basic 32,455,687 32,424,459 Average shares outstanding-diluted 32,949,661 32,964,086 Ending shares outstanding 32,444,426 32,448,926 Basic earnings per share 0.89 0.92 Diluted earnings per share 0.87 0.90 Dividends paid per common share 0.185 0.185 Book value (period end) 23.83 23.22 Tangible book value (period end) 21.27 20.64 At period end Assets 17,352,201 16,244,679 Securities and other investments 145,533 143,538 Mortgage-backed securities 901,805 1,004,002 Loans 13,997,174 13,116,202 Allowance for credit losses 87,773 82,705 Mortgage servicing rights 567,376 534,694 Deposits 8,361,782 7,508,502 Borrowed funds 7,596,801 7,329,132 Minority interest and redeemable preferred stock 345,500 345,500 Stockholders' equity 773,045 753,414 Single family servicing portfolio Others 27,524,504 26,058,482 Bank 5,004,162 4,834,511 Total 32,528,666 30,892,993 Average balances Assets 16,797,894 16,031,175 Stockholders' equity 764,098 750,809 Interest-earning assets 15,559,674 14,814,946 Interest-bearing liabilities 15,510,422 14,755,228 BANK UNITED CORP. FINANCIAL HIGHLIGHTS TREND, AS REPORTED (dollars in thousands, except per share data) (unaudited) 06/30/99 03/31/99 12/31/98 For the period ended Loan fundings Single family 707,009 773,143 1,625,949 Commercial 1,144,047 1,001,576 1,041,932 Consumer 92,627 78,093 64,527 Total 1,943,683 1,852,812 2,732,408 NOLs utilized during period 56,800 57,800 62,400 NOL balance at period end 346,500 403,300 461,100 Common share data Average shares outstanding-basic 32,401,036 32,190,307 32,180,545 Average shares outstanding-diluted 33,081,914 32,913,479 32,803,455 Ending shares outstanding 32,413,483 32,271,517 32,176,712 Basic earnings per share 0.78 0.79 0.85 Diluted earnings per share 0.77 0.77 0.83 Dividends paid per common share 0.193 0.157 0.157 Book value (period end) 22.86 22.65 22.16 Tangible book value (period end) 20.22 19.95 20.35 At period end Assets 15,545,747 14,995,336 14,939,624 Securities and other investments 142,108 143,071 102,335 Mortgage-backed securities 1,076,277 1,175,160 1,178,540 Loans 12,454,619 11,672,989 11,864,622 Allowance for credit losses 64,018 59,320 52,693 Mortgage servicing rights 527,464 431,746 417,235 Deposits 7,311,673 7,170,316 6,967,250 Borrowed funds 7,034,819 6,701,587 6,872,881 Minority interest and redeemable preferred stock 185,500 185,500 185,500 Stockholders' equity 740,860 730,822 713,095 Single family servicing portfolio Others 25,950,135 22,812,908 23,120,142 Bank 4,659,020 4,491,073 4,468,075 Total 30,609,155 27,303,981 27,588,217 Average balances Assets 15,113,371 14,867,541 14,065,842 Stockholders' equity 738,028 722,312 697,024 Interest-earning assets 13,943,689 13,712,781 13,009,055 Interest-bearing liabilities 14,015,570 13,813,336 13,036,278 BANK UNITED CORP. KEY RATIOS, AS REPORTED (dollars in thousands, except per share data) (unaudited) For the Quarter Ended 12/31/99 09/30/99 Ratios ROA (return, before minority interest and redeemable preferred stock, on average assets) 0.86 0.89 ROCE (return on average common equity) 15.00 15.70 Net interest spread 2.58 2.71 Net yield on interest-earning assets 2.60 2.73 Efficiency ratio 50.84 56.55 Equity to assets (period end) 4.46 4.64 Equity to assets (average) 4.55 4.68 Tangible capital ratio (Bank only) 6.84 7.14 Core capital ratio (Bank only) 6.85 7.15 Risk-based capital ratio (Bank only) 11.14 11.71 Asset quality (period end) Nonperforming assets ("NPAs") 111,891 108,267 Nonperforming loans ("NPLs") 95,943 89,649 NPAs as a % of total assets 0.64 0.67 Allowance to period end loan balance 0.62 0.63 Allowance to average loan balance 0.64 0.64 Allowance to NPLs - single family 25.93 25.71 - commercial 361.12 436.59 - consumer 78.13 151.77 - total 91.48 92.25 Branch and employee statistics Full-time equivalent employees 2,599 2,578 Commercial banking offices 21 20 SBA lending offices 25 23 Wholesale mtg. origination offices 11 10 Community bank branches Traditional 82 82 Supermarket 70 68 Total 152 150 ATMs 156 152 Checking accounts excluding escrows 239,000 233,000 BANK UNITED CORP. KEY RATIOS, AS REPORTED (dollars in thousands, except per share data) (unaudited) 06/30/99 03/31/99 12/31/98 Ratios ROA (return, before minority interest and redeemable preferred stock, on average assets) 0.80 0.82 0.90 ROCE (return on average common equity) 13.80 14.30 15.58 Net interest spread 2.60 2.44 2.45 Net yield on interest-earning assets 2.58 2.41 2.44 Efficiency ratio 53.04 49.73 47.26 Equity to assets (period end) 4.77 4.87 4.77 Equity to assets (average) 4.88 4.86 4.96 Tangible capital ratio (Bank only) 6.60 6.72 6.51 Core capital ratio (Bank only) 6.62 6.74 6.53 Risk-based capital ratio (Bank only) 11.24 11.91 10.39 Asset quality (period end) Nonperforming assets ("NPAs") 100,078 92,752 90,648 Nonperforming loans ("NPLs") 75,001 63,158 63,427 NPAs as a % of total assets 0.64 0.62 0.61 Allowance to period end loan balance 0.51 0.51 0.44 Allowance to average loan balance 0.53 0.51 0.47 Allowance to NPLs - single family 21.44 22.96 24.98 - commercial 679.04 752.87 377.01 - consumer 221.48 148.65 284.64 - total 85.36 93.92 83.08 Branch and employee statistics Full-time equivalent employees 2,462 2,272 1,991 Commercial banking offices 18 19 19 SBA lending offices 2 2 2 Wholesale mtg. origination offices 9 9 9 Community bank branches Traditional 82 81 77 Supermarket 62 13 11 Total 144 94 88 ATMs 149 93 90 Checking accounts excluding escrows 211,000 191,000 185,000 BANK UNITED CORP. ADJUSTING ITEMS (dollars in thousands, except per share data) (unaudited) For the Quarter Ended 12/31/99 09/30/99 Net income as reported 31,777 31,417 Additional allowance for credit losses 0 13,009 Servicing valuation improvement (724) 0 Court of claims litigation expenses 625 1,749 Merger related and restructuring costs 0 2,893 Tax effect on adjusting items 35 (6,619) NOL tax benefit 0 (13,500) Net income as adjusted 31,713 28,949 Diluted earnings per share as reported 0.87 0.90 Additional allowance for credit losses 0.00 0.25 Servicing valuation improvement (0.01) 0.00 Court of claims litigation expenses 0.01 0.03 Merger related and restructuring costs 0.00 0.06 NOL tax benefit 0.00 (0.41) Diluted earnings per share as adjusted 0.87 0.83 Selected data, excluding adjusting items Net income available to common stockholders 28,748 27,247 Basic earnings per share 0.89 0.84 Diluted earnings per share 0.87 0.83 ROA 0.86 0.83 ROCE 14.96 14.45 Efficiency ratio 50.65 53.23 Net interest spread 2.58 2.71 Net yield on interest-earning assets 2.60 2.73 BANK UNITED CORP. ADJUSTING ITEMS (dollars in thousands, except per share data) (unaudited) 06/30/99 03/31/99 12/31/98 Net income as reported 25,397 25,467 27,376 Additional allowance for credit losses 0 0 0 Servicing valuation improvement 0 0 0 Court of claims litigation expenses 1,749 1,316 2,761 Merger related and restructuring costs 0 0 0 Tax effect on adjusting items (655) (494) (1,033) NOL tax benefit 0 0 0 Net income as adjusted 26,491 26,289 29,104 Diluted earnings per share as reported 0.77 0.77 0.83 Additional allowance for credit losses 0.00 0.00 0.00 Servicing valuation improvement 0.00 0.00 0.00 Court of claims litigation expenses 0.03 0.03 0.05 Merger related and restructuring costs 0.00 0.00 0.00 NOL tax benefit 0.00 0.00 0.00 Diluted earnings per share as adjusted 0.80 0.80 0.88 Selected data, excluding adjusting items Net income available to common stockholders 26,491 26,289 29,104 Basic earnings per share 0.82 0.82 0.90 Diluted earnings per share 0.80 0.80 0.88 ROA 0.82 0.84 0.95 ROCE 14.38 14.74 16.52 Efficiency ratio 51.55 48.54 44.78 Net interest spread 2.60 2.44 2.45 Net yield on interest-earning assets 2.58 2.41 2.44 BANK UNITED CORP. SUPPLEMENTAL LOAN AND DEPOSIT DATA, AS REPORTED (dollars in thousands) (unaudited) December 31, September 30, December 31, 1999 1999 1998 Loans Single family Held for investment 6,501,454 6,470,636 5,376,941 Allowance for credit losses (19,369) (19,030) (13,186) Net single family held for investment 6,482,085 6,451,606 5,363,755 Held for sale 669,958 592,583 1,783,143 Net single family 7,152,043 7,044,189 7,146,898 Commercial Single family construction 1,279,322 1,254,796 903,496 Mortgage banker finance line of credit 1,201,351 944,155 921,872 Commercial real estate construction 121,728 115,633 60,426 Commercial real estate 984,886 860,644 545,244 Multi-family construction 268,726 228,043 160,039 Multi-family 935,006 822,280 755,420 Healthcare construction 284,297 279,216 173,551 Healthcare 426,028 328,541 232,128 Commercial syndication 286,273 305,945 259,997 SBA 203,975 156,799 134,136 Small business 185,498 135,884 81,040 Energy 33,829 30,712 0 Agricultural 6,918 7,298 0 Total commercial 6,217,837 5,469,946 4,227,349 Allowance for credit losses (66,111) (61,271) (37,543) Net commercial 6,151,726 5,408,675 4,189,806 Consumer Real estate 620,377 579,295 456,790 Installment 69,828 80,253 62,762 Revolving 5,493 6,194 10,330 Total consumer 695,698 665,742 529,882 Allowance for credit losses (2,293) (2,404) (1,964) Net consumer 693,405 663,338 527,918 Total loans receivable, net 13,997,174 13,116,202 11,864,622 Deposits Transaction accounts Non-interest checking 898,382 681,464 582,137 Checking with interest 274,510 240,125 241,178 Savings 133,371 135,538 129,123 Money market 2,118,722 2,199,350 2,118,109 Mortgage loan principal and interest 146,952 115,225 359,618 Escrow 220,982 276,247 207,459 3,792,919 3,647,949 3,637,624 Certificates of deposit 3,640,587 3,438,831 3,234,149 Wholesale certificates of deposit 928,276 421,722 95,477 4,568,863 3,860,553 3,329,626 Total deposits 8,361,782 7,508,502 6,967,250 BANK UNITED CORP. LOAN ACTIVITY, AS REPORTED (dollars in thousands) (unaudited) For the Quarter Ended December 31, September 30, December 31, 1999 1999 1998 Beginning balance Single family held for investment 6,451,606 5,933,932 4,696,201 Single family held for sale 592,583 712,233 2,149,009 Commercial 5,408,675 5,183,278 3,518,280 Consumer 663,338 625,176 504,407 Fundings Single family held for investment 84,836 31,994 163,729 Single family held for sale 556,861 542,107 1,462,220 Commercial 1,669,388 1,291,830 1,041,932 Consumer 82,701 83,162 64,527 Purchases Single family held for investment 149,330 427,597 724,823 Single family held for sale 55,817 62,318 7,344 Commercial 127,832 157,282 306,273 Net change in mortgage banker finance line of credit 257,196 (128,294) 134,529 Repayments Single family held for investment (352,511) (298,158) (524,854) Single family held for sale (17,400) (111,146) (214,041) Commercial (1,162,086) (914,656) (681,821) Consumer (52,389) (40,756) (40,426) Loans sold or securitized Single family held for investment (18,579) (561) (36,495) Single family held for sale (333,634) (229,510) (1,255,493) Commercial (147,051) (179,311) (123,819) Consumer (1,267) 0 0 Foreclosures (5,914) (5,069) (14,659) Net change in allowance for credit losses (5,068) (18,687) (5,190) Other (7,090) (8,559) (11,854) Ending balance Single family held for investment 6,482,085 6,451,606 5,363,755 Single family held for sale 669,958 592,583 1,783,143 Commercial 6,151,726 5,408,675 4,189,806 Consumer 693,405 663,338 527,918 BANK UNITED CORP. MORTGAGE-BACKED SECURITY ACTIVITY, AS REPORTED (dollars in thousands) (unaudited) For the Quarter Ended December 31, September 30, December 31, 1999 1999 1998 Beginning balance 1,004,002 1,076,277 938,528 Purchases 151 33,767 333,460 Securitization 0 0 1,619 Sales (55,444) (6,762) 0 Principal repayments (39,646) (90,608) (94,726) Premium/discount amortization (1,182) (1,464) (1,264) Unrealized gains/losses (6,076) (7,208) 923 Ending balance 901,805 1,004,002 1,178,540 BANK UNITED CORP. SINGLE FAMILY SERVICING PORTFOLIO SERVICED FOR OTHERS, AS REPORTED (dollars in thousands) (unaudited) For the Quarter Ended December 31, September 30, December 31, 1999 1999 1998 Servicing portfolio activity Beginning balance 26,058,482 25,950,135 23,491,960 Production 317,142 227,038 1,181,551 Purchases 125,456 154,671 15,842 Repayments (749,751) (890,363) (2,191,906) Other (234,217) (245,495) (228,781) Total serviced 25,517,112 25,195,986 22,268,666 Purchased, not transferred 2,007,392 862,496 851,476 Ending balance 27,524,504 26,058,482 23,120,142 Number of loans serviced 301,299 287,251 260,480 Mortgage servicing rights ("MSRs") at period end 567,376 534,694 417,235 MSRs as a % of principal balance 2.06 2.05 1.80 Loan type mix Fixed rate 19,342,418 17,896,655 14,924,835 Adjustable rate 8,182,086 8,161,827 8,195,307 Total 27,524,504 26,058,482 23,120,142 Investor mix GNMA 13,111,729 9,444,684 9,175,711 FNMA 4,572,992 2,748,191 3,250,584 FHLMC 2,600,915 2,008,505 2,396,468 Other 7,238,868 11,857,102 8,297,379 Total 27,524,504 26,058,482 23,120,142 Average service fee rate 0.451 0.461 0.404 Note:At December 31, 1999, $2.2 billion of purchased servicing had not yet been transferred to the Company and is expected to be transferred by the third quarter of fiscal 2000. BANK UNITED CORP. ALLOWANCE FOR CREDIT LOSSES, AS REPORTED (dollars in thousands) (unaudited) Single ALLOWANCE ACTIVITY family Commercial Consumer Total Balance at September 30,1999 19,030 61,271 2,404 82,705 Provision 1,683 4,946 513 7,142 Net charge-offs (1,344) (106) (624) (2,074) Balance at December 31, 1999 19,369 66,111 2,293 87,773 Net charge-offs to average loans 0.08 0.01 0.36 0.06 PERIOD END RESERVES December 31, September 30, December 31, 1999 1999 1998 Loans held for investment Single family Allowance 19,369 19,030 13,186 Period end loan balance 6,501,454 6,470,636 5,376,941 Average loan balance 6,380,049 6,156,604 4,961,197 Reserve ratio-period end 0.30 0.29 0.25 Reserve ratio-average 0.30 0.31 0.27 Reserve ratio-12 month average 0.34 0.35 0.29 Commercial Allowance 66,111 61,271 37,543 Period end loan balance 6,085,978 5,368,565 4,085,726 Average loan balance 5,785,406 5,241,240 3,693,589 Reserve ratio-period end 1.09 1.14 0.92 Reserve ratio-average 1.14 1.17 1.02 Reserve ratio-12 month average 1.29 1.34 1.15 Consumer Allowance 2,293 2,404 1,964 Period end loan balance 695,698 665,742 529,882 Average loan balance 701,589 665,117 515,527 Reserve ratio-period end 0.33 0.36 0.37 Reserve ratio-average 0.33 0.36 0.38 Reserve ratio-12 month average 0.36 0.41 0.43 Loans held for sale Period end loan balance 801,817 693,964 1,924,766 Average loan balance 875,697 881,479 1,945,572 Total loans Allowance 87,773 82,705 52,693 Period end loan balance 14,084,947 13,198,907 11,917,315 Average loan balance 13,742,741 12,944,440 11,115,885 Reserve ratio-period end 0.62 0.63 0.44 Reserve ratio-average 0.64 0.64 0.47 Reserve ratio-12 month average 0.69 0.68 0.51 BANK UNITED CORP. AVERAGE BALANCE SHEET AND RATE INFORMATION, AS REPORTED (dollars in thousands) (unaudited) For the Quarter Ended For the Quarter Ended December 31, 1999 September 30, 1999 Average Average Average Average Balance Rate Balance Rate Interest-earning assets Short-term interest-earning assets 295,283 5.82 354,111 6.03 Securities and other investments 210,599 6.52 193,309 4.33 Mortgage-backed securities 997,139 6.53 1,026,024 6.33 Loans Single family 7,133,225 7.25 6,948,730 7.17 Commercial 5,896,251 8.27 5,312,303 8.27 Consumer 697,066 7.78 659,479 7.99 Total Loans 13,726,542 7.72 12,920,512 7.67 Federal Home Loan Bank stock 330,111 5.73 320,990 5.49 Total interest-earning assets 15,559,674 7.54 14,814,946 7.44 Non-interest-earning assets 1,238,220 1,216,229 Total assets 16,797,894 16,031,175 Interest-bearing liabilities Deposits Interest-bearing 6,826,402 5.12 6,313,435 4.93 Non-interest-bearing 1,261,570 0.00 1,154,562 0.00 Total deposits 8,087,972 4.32 7,467,997 4.17 Federal Home Loan Bank advances 6,493,950 5.52 6,372,865 5.15 Securities sold under agreements to repurchase and federal funds purchased 557,758 5.36 541,001 5.02 Notes payable 370,742 8.55 373,365 8.48 Total interest-bearing liabilities 15,510,422 4.96 14,755,228 4.73 Non-interest-bearing liabilities and stockholders' equity 1,287,472 1,275,947 Total liabilities and stockholders' equity 16,797,894 16,031,175 Net interest spread 2.58 2.71 Net yield on interest-earning assets 2.60 2.73 Ratio of average interest-earning assets to average interest- bearing liabilities 1.00 1.00 BANK UNITED CORP. AVERAGE BALANCE SHEET AND RATE INFORMATION, AS REPORTED (dollars in thousands) (unaudited) For the Quarter Ended December 31, 1998 Average Average Balance Rate Interest-earning assets Short-term interest-earning assets 353,664 5.48 Securities and other investments 117,684 5.48 Mortgage-backed securities 1,115,325 6.44 Loans Single family 6,889,440 7.18 Commercial 3,765,216 8.02 Consumer 503,035 7.88 Total Loans 11,157,691 7.49 Federal Home Loan Bank stock 264,691 5.73 Total interest-earning assets 13,009,055 7.29 Non-interest-earning assets 1,056,787 Total assets 14,065,842 Interest-bearing liabilities Deposits Interest-bearing 5,796,447 5.09 Non-interest-bearing 1,063,262 0.00 Total deposits 6,859,709 4.30 Federal Home Loan Bank advances 5,211,120 5.30 Securities sold under agreements to repurchase and federal funds purchased 745,726 5.31 Notes payable 219,723 8.90 Total interest-bearing liabilities 13,036,278 4.84 Non-interest-bearing liabilities and stockholders' equity 1,029,564 Total liabilities and stockholders' equity 14,065,842 Net interest spread 2.45 Net yield on interest-earning assets 2.44 Ratio of average interest-earning assets to average interest-bearing liabilities 1.00SOURCE Bank United Corp.
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CONTACT:
Vern Stockton, Media Relations, 713-543-6920,
or Debbie Kemple, Investor Relations, 713-543-6926, both of Bank
United Corp.
