|
|
| Bank United Corp. Announces Third Quarter Fiscal 1999 Earnings |
Highlights/accomplishments for the quarter include:
- Earnings exceeded 'street consensus'.
- Net interest income up due to higher asset levels and increased net
yield.
- Commercial loan originations of $1.1 billion with outstandings
exceeding $5.1 billion.
- New 7-Day Banking Centers(SM) in 48 Kroger Stores off to fast start.
- Asset quality remains strong.
HOUSTON, July 27 /PRNewswire/ -- Bank United Corp. (Nasdaq: BNKU)
(the "Company"), parent of Bank United (the "Bank")
(NYSE: BKU PrA and BKU PrB), today announced net income of $25.9 million or
$.80 per diluted share for the third quarter of 1999, before deducting
$1.7 million of expenses related to litigation against the federal government,
compared to $23.9 million or $.74 per diluted share for the year ago quarter.
Net income on the same basis for the nine months ending June 30, 1999 was
$81 million or $2.51 per diluted share, compared to $66.2 million or $2.05 per
diluted share for the same period a year ago, excluding certain adjusting
items. See the attached schedules for details of adjustments related to the
prior year periods and for supplemental financial data.
Net income of $25.9 million for the third quarter of 1999 was $2.0 million
or 8% higher than the year ago quarter. Higher asset levels and an increase
in the net yield to 2.57% produced a 13% or $9.2 million increase in net
interest income after the provision for credit losses over last year. Non-
interest income also increased $4.6 million or 20% over the comparable period.
Partially offsetting these increases was the launch of 48 new 7-Day Banking
Centers in Kroger stores in the third quarter which cost $3.2 million.
Net income for each of the second and third quarters of 1999 was
$25.9 million, while diluted earnings per share was $.80 for the third quarter
compared to $.81 for the second quarter. The one cent change was the result
of a slight increase in the number of diluted shares outstanding during the
third quarter of 1999. Net interest income after the provision for credit
losses increased $7.1 million or 9% during the third quarter of 1999, which
was offset by costs associated with the 7-Day Banking Center initiative.
Reported net income for the current quarter was $24.8 million or $.77 per
diluted share, after deducting the litigation expenses, compared to
$23.9 million or $.74 per diluted share for the year ago quarter. On a year-
to-date basis, reported net income was $77.3 million or $2.40 per diluted
share for the nine months ending June 30, 1999, compared to $90.6 million or
$2.80 per diluted share for the same period a year ago. Reported results for
the nine months ending June 30, 1998, include certain adjusting items,
principally two positive income tax adjustments, totalling $24.4 million,
after tax, or $.75 per diluted share.
OUTLOOK
"Our business is strong and should remain robust into the fourth quarter,"
commented Bank United Corp. President and CEO Barry C. Burkholder. "Loan
production levels, both in the commercial and consumer businesses, should
continue their strong momentum, benefiting from sustained economic growth.
Earnings are anticipated to increase because of increased net servicing fees
and other revenues, partially offset by the industry-wide slowdown in single
family loan production."
The Company opened 48 new 7-Day Banking Centers in Kroger stores in the
Dallas/Ft. Worth and Houston markets in mid-April, with plans to open
7 additional branches by September 30. "Customer traffic has been excellent,
with first quarter deposit and loan volumes ahead of our initial projections,"
commented Burkholder. Over 23,700 deposit accounts totalling $68 million have
been opened through the first 14 weeks ending July 16, 1999. Net after tax
operating costs approximating $2.0 million or $.06 per diluted share for the
quarter were in line with initial forecasts. The Company expects to incur
similar operating results in the fourth quarter. "Our partnership with Kroger
and the early success of the 7-Day Banking Centers demonstrates our commitment
to provide customers with superior service and convenience," said Burkholder.
NET INTEREST INCOME
Net interest income for the third quarter of 1999 increased to
$88.1 million compared to $75.2 million for the year ago quarter and
$81.4 million for the second quarter of 1999. Record levels of interest-
earning assets, most particularly in the commercial loan portfolios, and a
lower cost of funds resulting from higher transaction accounts, contributed to
the increase.
Interest-Earning Assets Average interest-earning assets rose 15% to
$13.8 billion during the third quarter of 1999, compared to the year ago
quarter. The commercial loan portfolios increased to $4.8 billion on average
during the current quarter, for an increase of $1.8 billion or 61%.
Net Yield The net yield on interest-earning assets for the third quarter
of 1999 increased to 2.57%, compared to 2.49% for the year ago quarter and
2.38% for the second quarter of 1999. The deposit mix shift to more
transaction accounts continues to lower the Company's cost of funds. The
lower cost of funds and the addition of higher yielding commercial loans to
the asset base increased the net yield during the current quarter.
NON-INTEREST INCOME
Non-interest income totalled $27.3 million for the third quarter of 1999,
compared to the year ago quarter's results of $22.7 million, for an increase
of $4.6 million or 20%. Non-interest income is comprised of loan servicing
fees, community banking and commercial banking related fees, and gains from
mortgage banking and Small Business Administration ("SBA") banking.
Loan Servicing Fees Net loan servicing fees increased $1.7 million or
16% during the third quarter of 1999, compared to the same quarter a year ago.
This increase was due to higher servicing fees received per loan and, to a
lesser extent, a slightly larger servicing portfolio. Servicing fees per loan
for the third quarter of 1999 averaged 43.2 basis points, up from 41.2 basis
points for the year ago quarter. On average, the portfolio of single family
loans serviced for others was $22.5 billion for the third quarter of 1999,
compared to $22.2 billion for the same quarter a year ago. Current quarter
acquisitions of servicing rights were predominately government-loan related
and included $3.4 billion of GNMA loan servicing rights purchased on
June 30, 1999. The Company services loans for its own portfolio
($4.7 billion at June 30, 1999), as well as others
($25.9 billion at June 30, 1999), bringing the total servicing portfolio to
$30.6 billion at June 30, 1999.
Other Fees Community banking and commercial banking fees reached
$10.1 million during the third quarter of 1999, up $1.6 million or 18% from
the year ago quarter. Growth in the number of checking accounts, along with
strong securities sales in the community bank branches, contributed to this
increase.
Net Gains Net gains from traditional mortgage banking and SBA banking
sales comprised the majority of the $4.8 million in gains for the current
quarter, up $1.4 million or 41% over the year ago quarter. Mortgage banking
and SBA banking gains are made in the ordinary course of business.
NON-INTEREST EXPENSES
Excluding litigation expenses relating to the Court of Claims case in the
current quarter, non-interest expense for the third quarter of 1999 totalled
$61.1 million compared to $50.1 million for the year ago quarter, an increase
of 22%. This increase reflects investments in the 7-Day Banking Centers, the
Midland acquisition, technology initiatives, including Year 2000 Readiness, as
well as REO expenses. The Company's efficiency ratio was 51.42% for the
current quarter.
LOAN ACTIVITY
The Company's loan portfolios totalled $12.4 billion at June 30, 1999, up
$2.7 billion or 28% from June 30, 1998. The most significant change, period
over period, was in the commercial loan portfolio.
Commercial Loans The commercial loan portfolio is principally
comprised of single family construction, multifamily and commercial real
estate, and mortgage banker finance line of credit loans and totalled
$5.1 billion at June 30, 1999, up $2 billion or 64% from the year ago period.
Commercial loan originations for the third quarter of 1999 reached record
levels of $1.1 billion, up 58% from the third quarter of 1998. With its
recent acquisition of Midland American Bank, the Company expanded its
traditional middle market lending capabilities.
Small Business and SBA Small business and SBA loans, which are included
in the commercial loan portfolio, totalled $261 million at June 30, 1999, up
$88 million or 51% from June 30, 1998. Small business and SBA originations
for the third quarter of 1999, achieved a record high of $63 million, up
177% from the year ago quarter.
Single Family The single family portfolio totalled $6.6 billion at
June 30, 1999, up $518 million or 8% from June 30, 1998. Single family
originations for the third quarter of 1999 totalled $707 million, down
slightly compared to $773 million for the second quarter of 1999 and
$833 million for the year ago quarter. Mortgage banking sales volume totalled
$492 million for the current quarter, compared to $804 million for the second
quarter of 1999, and $598 million for the year ago quarter.
Consumer Loans Consumer loans totalled $618 million at June 30, 1999, up
$147 million or 31% from June 30, 1998. Consumer loan originations for the
third quarter of 1999 were $93 million compared to $129 million for the third
quarter of 1998. The year ago quarter benefited from the initial pent up
demand in Texas for home equity loans.
Loan Composition At June 30, 1999, the composition of the loan
portfolio, excluding the single family held for sale portfolio, was single
family 51%, commercial 44%, and consumer 5%. The composition at June 30, 1998
was single family 53%, commercial 41%, and consumer 6%.
ASSET QUALITY
The Company continues to maintain high asset quality. The non-performing
asset (non-accrual loans plus real estate owned) ratio was .65% at both
June 30, 1999 and June 30, 1998. Non-performing assets were $100 million at
June 30, 1999, compared to $85.5 million at June 30, 1998, with single family
residential loans and REO representing $85.9 million and $79.2 million of
non-performing assets at these dates. Single family non-performing assets
increased principally due to delinquencies in portfolios that were purchased
during fiscal 1999. The increase in the commercial REO portfolio of
$6.2 million was due to the foreclosure of a purchased multi-family loan and a
loan to a single family builder. The Company believes it will recover its
current investment in these properties at the time of sale.
Net charge-offs for the nine months ending June 30, 1999, were
$4.1 million or .05% of average loans, down from $6.1 million or .08% for the
nine months ending June 30, 1998, excluding charge-offs related to the sale of
the consumer line of credit portfolio in January 1998.
The allowance for credit losses totalled $63.5 million at June 30, 1999,
or .53% of average loans, compared to $44.9 million or .45% for the year ago
period. At June 30, 1999, the allowance for credit losses to average loans,
by type, was: .30% for the single family portfolio, 1.00% for the commercial
portfolio and .33% for the consumer portfolio. The ratio of the allowance for
credit losses to non-performing loans at June 30, 1999, was 21% for the single
family portfolio, 674% for the commercial portfolio, 221% for the consumer
portfolio, and 85% for the total loan portfolio.
ASSETS, LIABILITIES AND EQUITY
The Company achieved another record high, closing the quarter with assets
totalling $15.4 billion, up $2.3 billion or 18% from June 30, 1998. This
increase was primarily the result of commercial loan additions, particularly
in the single family construction, commercial real estate, healthcare, and
mortgage banker finance line of credit loan portfolios. These additions were
funded primarily with deposits and Federal Home Loan Bank advances.
Total deposits were $7.2 billion at June 30, 1999, up $441 million from
June 30, 1998. Transaction accounts, which include checking, savings, money
market, and escrow accounts, rose to $3.7 billion, up $472 million or 15% from
June 30, 1998, while certificates of deposit remained relatively flat period
over the period. The ratio of transaction accounts to total deposits was
51% at quarter end, up from 47% a year ago.
At June 30, 1999, stockholders' equity totalled $733 million, compared to
$669 million at June 30, 1998. Additionally, capital levels at June 30, 1999
qualify the Company's subsidiary, Bank United, as "well-capitalized", the
highest of five tiers under applicable regulatory definitions.
BANK UNITED
The Company also announced net income, before deduction of certain
litigation expenses, of $33.8 million for the quarter ended June 30, 1999 for
its subsidiary Bank United compared to $31.7 million for the same quarter a
year ago. Net income on the same basis for Bank United for the nine months
ending June 30, 1999 was $104.5 million compared to $89.8 million for the same
period a year ago, excluding certain adjusting items.
OTHER CORPORATE MATTERS
Dividend Increase During the third quarter of 1999, the Company
announced its second dividend payout increase since going public three years
ago. The 15.625% increase brings the quarterly dividend to $0.185 per common
share.
Year 2000 Readiness Bank United Corp. is ready for Year 2000. The
Company has successfully tested 100% of its computer systems and programs for
Year 2000 Readiness.
Technology Initiatives The Company continued to implement its
technology strategy, with the purpose of creating a distribution system to
improve customer convenience and employee productivity, while decreasing back-
office processing costs. Significant accomplishments during the quarter
included:
-- A new corporate web site, with improved graphics and navigation;
-- An insurance web page, allowing customers to obtain insurance quotes
and initiate account maintenance on-line;
-- "Kids Talking Machines" (KTMs) in 7-Day Banking Centers to educate
children in money management; and
-- A pilot iris-recognition program in three of the Company's automated
teller machine sites.
E-commerce projects scheduled for delivery in the fourth quarter include
Internet retail banking, a pilot of Electronic Bill Payment and Presentment
(EBPP), addition of Bank United Securities products to the web site, and
wholesale mortgage application and status checking via the Internet.
Texas Central Bancshares On March 23, 1999, the Company announced a
definitive merger agreement with Texas Central Bancshares, parent of Texas
Central Bank, a commercial bank in Dallas, Texas. At March 31, 1999, Texas
Central had assets of $121 million, deposits of $100 million, and operated
three community bank branches located in Dallas, Park Cities, and Plano. The
acquisition has received all regulatory approvals and is expected to close in
late August and will be accounted for under the pooling of interests method of
accounting.
Court of Claims Litigation Update 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 will now
proceed to trial on the amount of damages. The trial is scheduled to begin on
September 13, 1999. The suit seeks damages of approximately $560 million.
Bank United Corp. is the largest publicly-traded depository institution
headquartered in Texas and, through Bank United, operates a 144-branch
community banking network in Texas, including 60 branches in the greater
Houston area, 75 in Dallas/Fort Worth, 5 in Midland and two each in Austin and
San Antonio; a commercial banking group with 18 regional offices in 15 states;
9 wholesale mortgage origination offices; a mortgage servicing business; and a
financial markets business. The Bank's website can be found at
http://www.bankunited.com. Bank United is FDIC insured and an equal housing lender.
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, and 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, 1998 on file with the SEC.
Exhibit 1 of 15
BANK UNITED CORP.
SUPPLEMENTAL BALANCE SHEET, AS REPORTED
(dollars in thousands)
(unaudited)
June 30, March 31, June 30,
1999 1999 1998
Assets
Cash and cash equivalents 246,677 237,251 172,369
Securities purchased under agreements
to resell and federal funds sold 228,795 411,529 840,505
Securities and other investments 123,918 124,373 137,414
Mortgage-backed securities, net 1,069,315 1,168,958 1,050,101
Loans, net
Single family held for investment 5,924,372 4,978,688 4,069,641
Single family held for sale 712,233 1,571,433 2,048,921
Commercial 5,132,122 4,480,710 3,122,336
Consumer 618,119 576,777 470,891
Federal Home Loan Bank stock 305,444 291,948 210,017
Mortgage servicing rights 527,464 431,746 410,650
Servicing receivables 133,101 160,786 81,675
Deferred tax asset 94,501 96,948 121,645
Premises and equipment 86,347 76,180 54,220
Intangible assets 85,610 87,035 61,341
Real estate owned 24,090 29,069 18,401
Other assets 114,648 151,335 225,820
Total assets 15,426,756 14,874,766 13,095,947
Liabilities, Minority Interest,
and Stockholders' Equity
Liabilities
Deposits 7,213,264 7,070,091 6,772,527
Federal Home Loan Bank advances 6,018,701 5,744,594 4,078,294
Securities sold under agreements
to repurchase and federal
funds purchased 635,289 576,007 891,724
Notes payable 368,738 368,715 219,715
Other liabilities 272,442 206,883 278,776
Total liabilities 14,508,434 13,966,290 12,241,036
Minority interest
Preferred stock issued
by consolidated subsidiary 185,500 185,500 185,500
Stockholders' equity
Common stock 317 316 316
Paid-in capital 134,893 129,343 129,286
Retained earnings 618,046 599,088 538,030
Unearned stock compensation (5,205) 0 0
Accumulated other comprehensive income
-unrealized gains (losses) on securities
available for sale, net of tax (14,166) (4,708) 1,779
Treasury stock, at cost (1,063) (1,063) 0
Total stockholders' equity 732,822 722,976 669,411
Total liabilities, minority
interest and stockholders'
equity 15,426,756 14,874,766 13,095,947
Exhibit 2 of 15
BANK UNITED CORP.
INCOME STATEMENT TREND, AS REPORTED
(dollars in thousands, except per share data)
(unaudited)
For the Nine Months For the Quarter
Ended Ended
06/30/99 06/30/98 06/30/99 03/31/99
Interest income
Short-term interest-earning assets 14,861 22,013 4,669 5,242
Securities and other investments 4,897 5,972 1,479 1,791
Mortgage-backed securities 53,310 66,942 17,649 17,694
Loans 643,028 566,574 221,403 211,860
Federal Home Loan Bank stock 11,731 9,440 3,852 4,056
Total interest income 727,827 670,941 249,052 240,643
Interest expense
Deposits 217,233 221,453 72,163 70,694
Federal Home Loan Bank advances 219,204 176,999 73,729 74,945
Securities sold under agreements
to repurchase and federal funds
purchased 25,766 43,216 7,114 8,530
Notes payable 17,879 14,684 7,904 5,088
Total interest expense 480,082 456,352 160,910 159,257
Net interest income 247,745 214,589 88,142 81,386
Provision for credit losses 17,977 16,777 5,593 5,898
Net interest income after
provision for credit losses 229,768 197,812 82,549 75,488
Non-interest income
Loan servicing fees, gross 88,286 67,321 29,193 28,940
Less amortization expense 48,403 43,232 16,908 16,065
Net servicing fees 39,883 24,089 12,285 12,875
Net gains (losses)
Sales of single family loans 16,803 5,464 3,628 4,662
Securities and mortgage-backed
securities 1,117 2,025 332 605
Other loans 1,906 673 879 (38)
Net gains (losses) 19,826 8,162 4,839 5,229
Other 28,854 21,859 10,143 10,029
Total non-interest income 88,563 54,110 27,267 28,133
Non-interest expense
Compensation and benefits 75,236 62,308 28,111 24,892
Occupancy 15,710 12,125 5,763 5,219
Data processing 14,202 11,952 5,225 4,626
Advertising and marketing 5,620 6,230 2,067 1,363
Court of claims litigation 5,826 1,350 1,749 1,316
Intangible amortization 4,783 4,114 1,863 1,582
SAIF deposit insurance premiums 2,996 3,100 986 1,043
Furniture and equipment 2,579 2,778 813 877
Other 45,386 34,826 16,223 14,749
Total non-interest expense 172,338 138,783 62,800 55,667
Income before income taxes and
minority interest 145,993 113,139 47,016 47,954
Income tax expense 54,995 8,805 17,630 18,281
Income before minority interest 90,998 104,334 29,386 29,673
Minority interest - subsidiary
preferred stock dividends 13,689 13,689 4,563 4,563
NET INCOME 77,309 90,645 24,823 25,110
Basic earnings per common share 2.45 2.87 0.78 0.80
Diluted earnings per common share 2.40 2.80 0.77 0.78
Exhibit 3 of 15
BANK UNITED CORP.
INCOME STATEMENT TREND, AS REPORTED
(dollars in thousands, except per share data)
(unaudited)
12/31/98 09/30/98 06/30/98
Interest income
Short-term interest-earning
assets 4,950 15,949 10,164
Securities and other
investments 1,627 3,121 1,693
Mortgage-backed securities 17,967 15,228 19,962
Loans 209,765 190,316 193,439
Federal Home Loan Bank stock 3,823 3,191 3,102
Total interest income 238,132 227,805 228,360
Interest expense
Deposits 74,376 79,307 79,448
Federal Home Loan Bank advances 70,530 59,253 58,242
Securities sold under agreements
to repurchase and federal funds
purchased 10,122 12,866 10,591
Notes payable 4,887 4,887 4,892
Total interest expense 159,915 156,313 153,173
Net interest income 78,217 71,492 75,187
Provision for credit losses 6,486 3,346 1,814
Net interest income after
provision for credit losses 71,731 68,146 73,373
Non-interest income
Loan servicing fees, gross 30,153 28,100 26,760
Less amortization expense 15,430 16,214 16,130
Net servicing fees 14,723 11,886 10,630
Net gains (losses)
Sales of single family loans 8,513 5,660 2,923
Securities and mortgage-backed
securities 180 736 224
Other loans 1,065 (22) 297
Net gains (losses) 9,758 6,374 3,444
Other 8,682 8,567 8,579
Total non-interest income 33,163 26,827 22,653
Non-interest expense
Compensation and benefits 22,233 24,417 22,683
Occupancy 4,728 3,372 4,376
Data processing 4,351 4,639 4,202
Advertising and marketing 2,190 2,069 1,685
Court of claims litigation 2,761 450 450
Intangible amortization 1,338 1,750 1,761
SAIF deposit insurance premiums 967 1,060 1,173
Furniture and equipment 889 908 1,038
Other 14,414 11,094 13,168
Total non-interest expense 53,871 49,759 50,536
Income before income taxes and
minority interest 51,023 45,214 45,490
Income tax expense 19,084 16,917 17,014
Income before minority
interest 31,939 28,297 28,476
Minority interest - subsidiary
preferred stock dividends 4,563 4,564 4,563
NET INCOME 27,376 23,733 23,913
Basic earnings per common share 0.87 0.75 0.76
Diluted earnings per common share 0.85 0.74 0.74
Exhibit 4 of 15
BANK UNITED CORP.
FINANCIAL HIGHLIGHTS TREND, AS REPORTED
(dollars in thousands, except per share data)
(unaudited)
For the Nine Months For the Quarter
Ended Ended
06/30/99 06/30/98 06/30/99 03/31/99
For the period ended
Loan fundings
Single family 3,106,066 2,791,581 707,009 773,108
Commercial 3,182,038 1,942,142 1,141,468 998,638
Consumer 235,247 308,592 92,627 78,093
Total 6,523,351 5,042,315 1,941,104 1,849,839
NOLs utilized during period 177,000 136,100 56,800 57,800
NOL balance at period end 346,500 565,500 346,500 403,300
Common share data
Average shares
outstanding-basic 31,606,979 31,595,596 31,691,272 31,562,896
Average shares
outstanding-diluted 32,239,062 32,360,747 32,371,761 32,204,416
Ending shares
outstanding 31,703,646 31,595,596 31,703,646 31,562,896
Basic earnings per share 2.45 2.87 0.78 0.80
Diluted earnings per share 2.40 2.80 0.77 0.78
Dividends paid
per common share 0.505 0.480 0.185 0.160
Book value (period end) 23.11 21.19 23.11 22.91
Tangible book value
(period end) 20.41 19.25 20.41 20.15
At period end
Assets 15,426,756 13,095,947 15,426,756 14,874,766
Securities and other
investments 123,918 137,414 123,918 124,373
Mortgage-backed
securities 1,069,315 1,050,101 1,069,315 1,168,958
Loans, net 12,386,846 9,711,789 12,386,846 11,607,608
Allowance for credit
losses 63,480 44,935 63,480 58,767
Mortgage servicing rights 527,464 410,650 527,464 431,746
Deposits 7,213,264 6,772,527 7,213,264 7,070,091
Borrowed funds 7,022,728 5,189,733 7,022,728 6,689,316
Minority interest 185,500 185,500 185,500 185,500
Stockholders' equity 732,822 669,411 732,822 722,976
Servicing portfolio
Others 25,950,135 24,833,455 25,950,135 22,812,908
Bank 4,659,020 4,515,995 4,659,020 4,491,073
Total 30,609,155 29,349,450 30,609,155 27,303,981
Average balances
Assets 14,601,598 12,597,615 14,995,360 14,751,122
Stockholders' equity 714,070 632,027 730,213 715,210
Interest-earning
assets 13,482,026 11,742,705 13,836,274 13,607,325
Interest-bearing
liabilities 13,031,789 11,236,143 13,427,721 13,228,737
Exhibit 5 of 15
BANK UNITED CORP.
FINANCIAL HIGHLIGHTS TREND, AS REPORTED
(dollars in thousands, except per share data)
(unaudited)
12/31/98 09/30/98 06/30/98
For the period ended
Loan fundings
Single family 1,625,949 997,808 832,562
Commercial 1,041,932 934,186 723,001
Consumer 64,527 58,505 128,562
Total 2,732,408 1,990,499 1,684,125
NOLs utilized during period 62,400 42,000 58,000
NOL balance at period end 461,100 523,500 565,500
Common share data
Average shares outstanding
- basic 31,566,728 31,595,179 31,595,596
Average shares outstanding
- diluted 32,140,966 32,252,057 32,442,309
Ending shares outstanding 31,562,896 31,582,896 31,595,596
Basic earnings per share 0.87 0.75 0.76
Diluted earnings per share 0.85 0.74 0.74
Dividends paid
per common share 0.160 0.160 0.160
Book value (period end) 22.37 21.67 21.19
Tangible book value
(period end) 20.53 19.78 19.25
At period end
Assets 14,823,561 13,664,992 13,095,947
Securities and other
investments 89,163 91,350 137,414
Mortgage-backed securities 1,172,070 932,058 1,050,101
Loans, net 11,800,469 10,803,744 9,711,789
Allowance for credit losses 52,217 47,027 44,935
Mortgage servicing rights 417,235 410,868 410,650
Deposits 6,871,260 6,798,237 6,772,527
Borrowed funds 6,860,376 5,814,756 5,189,733
Minority interest 185,500 185,500 185,500
Stockholders' equity 706,113 684,412 669,411
Servicing portfolio
Others 23,120,142 23,491,960 24,833,455
Bank 4,468,075 4,443,340 4,515,995
Total 27,588,217 27,935,300 29,349,450
Average balances
Assets 14,065,842 13,243,434 13,038,008
Stockholders' equity 697,024 677,602 662,469
Interest-earning assets 13,009,055 12,080,553 12,082,896
Interest-bearing
liabilities 12,447,496 11,639,485 11,503,379
Exhibit 6 of 15
BANK UNITED CORP.
KEY RATIOS, AS REPORTED
(dollars in thousands, except per share data)
(unaudited)
For the Nine Months For the Quarter
Ended Ended
06/30/99 06/30/98 06/30/99 03/31/99
Ratios
ROA (return, before minority
interest, on average assets) 0.83 1.11 0.79 0.82
ROCE (return on average
common equity) 14.48 19.18 13.64 14.27
Net interest spread 2.29 2.21 2.43 2.25
Net yield on interest-
earning assets 2.45 2.44 2.57 2.38
Efficiency ratio 49.93 50.23 52.94 49.49
Equity to assets (period end) 4.75 5.11 4.75 4.86
Equity to assets (average) 4.89 5.02 4.87 4.85
Tangible capital ratio
(Bank only) 6.60 7.03 6.60 6.73
Core capital ratio (Bank only) 6.62 7.06 6.62 6.75
Risk-based capital ratio
(Bank only) 11.24 10.93 11.24 11.92
Cash tax ratios(A)
Net income 113,385 83,614 36,601 36,554
Basic earnings per share 3.59 2.65 1.15 1.16
Diluted earnings per share 3.52 2.58 1.13 1.14
ROA 1.16 1.03 1.10 1.13
ROCE 21.24 17.70 20.11 20.73
Asset quality (period end)
Nonperforming assets ("NPAs") 100,048 85,548 100,048 92,554
Nonperforming loans ("NPLs") 74,971 66,520 74,971 62,960
NPAs as a % of total assets 0.65 0.65 0.65 0.62
Allowance to period end loan
balance 0.51 0.46 0.51 0.50
Allowance to average loan
balance 0.55 0.61 0.53 0.51
Allowance to NPLs
- single family 21.44 20.87 21.44 22.96
- commercial 674.26 533.12 674.26 769.28
- consumer 221.48 380.70 221.48 148.65
- total 84.67 67.55 84.67 93.34
Branch and employee statistics
Full-time equivalent employees 2,424 1,814 2,424 2,234
Commercial banking offices 18 19 18 19
Wholesale mtg. origination offices 9 6 9 9
Community bank branches
Traditional 82 74 82 81
Supermarket 62 6 62 13
Total 144 80 144 94
ATMs 146 76 146 90
Checking accounts excluding
escrows 208,000 173,000 208,000 188,000
(A) Cash tax figures exclude goodwill amortization expense and are
computed using a cash equivalent income tax rate of 15.51% for 1999
and 16.80% for 1998.
Exhibit 7 of 15
BANK UNITED CORP.
KEY RATIOS, AS REPORTED
(dollars in thousands, except per share data)
(unaudited)
12/31/98 09/30/98 6/30/98
Ratios
ROA (return, before minority
interest, on average assets) 0.90 0.85 0.88
ROCE (return on average
common equity) 15.56 13.87 14.49
Net interest spread 2.22 2.21 2.24
Net yield on interest-
earning assets 2.44 2.40 2.49
Efficiency ratio 47.26 48.93 49.95
Equity to assets (period end) 4.76 5.01 5.11
Equity to assets (average) 4.96 5.12 5.08
Tangible capital ratio
(Bank only) 6.52 6.75 7.03
Core capital ratio (Bank only) 6.54 6.77 7.06
Risk-based capital ratio
(Bank only) 10.39 10.48 10.93
Cash tax ratios(A)
Net income 38,918 34,428 34,666
Basic earnings per share 1.23 1.09 1.10
Diluted earnings per share 1.21 1.07 1.07
ROA 1.23 1.17 1.21
ROCE 22.15 20.16 21.00
Asset quality (period end)
Nonperforming assets ("NPAs") 90,594 81,305 85,548
Nonperforming loans ("NPLs") 63,373 61,948 66,520
NPAs as a % of total assets 0.61 0.59 0.65
Allowance to period end
loan balance 0.44 0.44 0.46
Allowance to average
loan balance 0.47 0.48 0.45
Allowance to NPLs
- single family 24.98 22.36 20.87
- commercial 374.26 604.51 533.12
- consumer 284.64 329.20 380.70
- total 82.40 75.91 67.55
Branch and employee statistics
Full-time equivalent employees 1,950 1,927 1,814
Commercial banking offices 19 19 19
Wholesale mtg. origination offices 9 8 6
Community bank branches
Traditional 77 74 74
Supermarket 11 9 6
Total 88 83 80
ATMs 87 81 76
Checking accounts excluding
escrows 182,300 176,000 173,000
(A) Cash tax figures exclude goodwill amortization expense and are
computed using a cash equivalent income tax rate of 15.51% for 1999
and 16.80% for 1998.
Exhibit 8 of 15
BANK UNITED CORP.
ADJUSTING ITEMS
(dollars in thousands, except per share data)
(unaudited)
For the Nine Months For the Quarter
Ended Ended
06/30/99 06/30/98 06/30/99 03/31/99
Net income as reported 77,309 90,645 24,823 25,110
Court of claims litigation
expenses 5,826 0 1,749 1,316
Additional allowance
for credit losses 0 7,776 0 0
Higher prepayments
on single family portfolio 0 1,973 0 0
Higher prepayments
on servicing portfolio 0 4,767 0 0
Tax effect on adjusting items (2,182) (5,430) (655) (494)
Federal Deposit Insurance
Corp. tax settlement 0 (6,020) 0 0
Deferred tax asset reduction
in allowance 0 (27,500) 0 0
Net income as adjusted 80,953 66,211 25,917 25,932
Diluted earnings per share
as reported 2.40 2.80 0.77 0.78
Court of claims litigation
expenses 0.11 0.00 0.03 0.03
Additional allowance
for credit losses 0.00 0.15 0.00 0.00
Higher prepayments
on single family portfolio 0.00 0.04 0.00 0.00
Higher prepayments
on servicing portfolio 0.00 0.09 0.00 0.00
Federal Deposit Insurance
Corp. tax settlement 0.00 (0.18) 0.00 0.00
Deferred tax asset reduction
in allowance 0.00 (0.85) 0.00 0.00
Diluted earnings per share
as adjusted 2.51 2.05 0.80 0.81
Selected data, excluding
adjusting items
Net income 80,953 66,211 25,917 25,932
Basic earnings per share 2.56 2.10 0.82 0.82
Diluted earnings per share 2.51 2.05 0.80 0.81
ROA 0.87 0.85 0.82 0.84
ROCE 15.13 14.23 14.18 14.72
Efficiency ratio 48.20 49.00 51.42 48.29
Net interest spread 2.29 2.23 2.43 2.25
Net yield on
interest-earning assets 2.45 2.46 2.57 2.38
Net income, cash tax basis (A) 118,307 95,692 38,079 37,649
Basic earnings per share,
cash tax basis (A) 3.74 3.03 1.20 1.19
Diluted earnings per share,
cash tax basis (A) 3.67 2.95 1.18 1.17
ROA, cash tax basis (A) 1.21 1.16 1.14 1.16
ROCE, cash tax basis (A) 22.10 20.56 20.84 21.32
(A) Cash tax figures exclude goodwill amortization expense and are
computed using a cash equivalent income tax rate of 15.51% for 1999
and 16.80% for 1998.
Exhibit 9 of 15
BANK UNITED CORP.
ADJUSTING ITEMS
(dollars in thousands, except per share data)
(unaudited)
12/31/98 09/30/98 06/30/98
Net income as reported 27,376 23,733 23,913
Court of claims litigation
expenses 2,761 0 0
Additional allowance
for credit losses 0 0 0
Higher prepayments
on single family portfolio 0 0 0
Higher prepayments
on servicing portfolio 0 0 0
Tax effect on adjusting items (1,033) 0 0
Federal Deposit Insurance
Corp. tax settlement 0 0 0
Deferred tax asset reduction
in allowance 0 0 0
Net income as adjusted 29,104 23,733 23,913
Diluted earnings per share
as reported 0.85 0.74 0.74
Court of claims litigation
expenses 0.05 0.00 0.00
Additional allowance
for credit losses 0.00 0.00 0.00
Higher prepayments
on single family portfolio 0.00 0.00 0.00
Higher prepayments
on servicing portfolio 0.00 0.00 0.00
Federal Deposit Insurance
Corp. tax settlement 0.00 0.00 0.00
Deferred tax asset reduction
in allowance 0.00 0.00 0.00
Diluted earnings per share
as adjusted 0.90 0.74 0.74
Selected data, excluding
adjusting items
Net income 29,104 23,733 23,913
Basic earnings per share 0.92 0.75 0.76
Diluted earnings per share 0.90 0.74 0.74
ROA 0.95 0.85 0.88
ROCE 16.53 14.39 15.04
Efficiency ratio 44.78 48.93 49.95
Net interest spread 2.22 2.21 2.24
Net yield on
interest-earning assets 2.44 2.40 2.49
Net income, cash tax basis (A) 41,215 34,428 34,666
Basic earnings per share,
cash tax basis (A) 1.31 1.09 1.10
Diluted earnings per share,
cash tax basis (A) 1.28 1.07 1.07
ROA, cash tax basis (A) 1.29 1.17 1.21
ROCE, cash tax basis (A) 23.44 20.91 21.80
(A) Cash tax figures exclude goodwill amortization expense and are
computed using a cash equivalent income tax rate of 15.51% for 1999
and 16.80% for 1998.
Exhibit 10 of 15
BANK UNITED CORP.
SUPPLEMENTAL LOAN AND DEPOSIT DATA, AS REPORTED
(dollars in thousands)
(unaudited)
June 30, March 31, June 30,
1999 1999 1998
Single family
Held for investment 5,938,759 4,991,529 4,082,226
Allowance for credit losses (14,387) (12,841) (12,585)
Total single family
held for investment 5,924,372 4,978,688 4,069,641
Held for sale 712,233 1,571,433 2,048,921
Net single family 6,636,605 6,550,121 6,118,562
Commercial
Mortgage banker finance
line of credit 1,072,449 867,434 643,639
Single family construction 1,191,097 1,061,916 640,359
Multi-family 736,906 741,071 727,733
Commercial real estate 783,974 584,330 360,018
Commercial syndication 254,259 271,288 158,678
Multi-family construction 207,453 178,482 169,944
Healthcare construction 228,282 193,462 108,960
Healthcare 318,740 252,647 105,498
Commercial real estate
construction 90,998 76,480 64,973
SBA 165,452 172,818 129,328
Small business 95,182 91,915 43,386
Energy 25,664 25,296 ---
Agricultural 8,790 7,520 ---
Total commercial 5,179,246 4,524,659 3,152,516
Allowance for credit
losses (47,124) (43,949) (30,180)
Net commercial 5,132,122 4,480,710 3,122,336
Consumer
Home equity 277,051 274,025 227,895
Installment 330,517 291,914 225,096
Line of credit 12,520 12,815 20,070
Total consumer 620,088 578,754 473,061
Allowance for credit
losses (1,969) (1,977) (2,170)
Net consumer 618,119 576,777 470,891
Total loans receivable 12,386,846 11,607,608 9,711,789
Deposits
Transaction accounts
Non-interest checking 712,214 686,334 450,615
Checking with interest 243,751 246,596 206,365
Savings 137,089 137,714 129,322
Money market 2,165,702 2,088,922 2,054,828
Mortgage loan principal and
interest 185,627 248,636 160,406
Escrow 221,890 215,907 192,879
3,666,273 3,624,109 3,194,415
Certificates of deposit 3,546,991 3,445,982 3,578,112
Total deposits 7,213,264 7,070,091 6,772,527
Exhibit 11 of 15
BANK UNITED CORP.
LOAN ACTIVITY, AS REPORTED
(dollars in thousands)
(unaudited)
For the Quarter Ended
June 30, March 31, June 30,
1999 1999 1998
Beginning balance
Single family held for
investment 4,978,688 5,354,154 4,556,130
Single family held for sale 1,571,433 1,783,143 2,146,018
Commercial 4,480,710 4,144,105 2,880,053
Consumer 576,777 519,067 384,864
Fundings
Single family held for
investment 112,458 93,438 126,739
Single family held for sale 594,551 679,670 705,823
Commercial 1,141,468 998,638 723,001
Consumer 92,627 78,093 128,562
Purchases
Single family held for
investment 349,099 148,252 6,420
Single family held for sale 47,292 27,732 27,157
Commercial 319,455 274,218 187,977
Consumer 0 25,472 0
Net change in mortgage banker
finance line of credit 205,015 (54,438) (25,148)
Repayments
Single family held for
investment (435,913) (601,611) (605,348)
Single family held for sale (67,937) (100,636) (238,037)
Commercial (806,082) (691,084) (505,719)
Consumer (50,482) (45,109) (41,649)
Securitized loans sold or transferred
Single family (260,927) (322,073) (378,461)
Commercial (153,619) (94,604) (132,697)
Sales
Single family held for investment (4,499) (2,273) (992)
Single family held for sale (226,863) (479,862) (218,517)
Commercial (49,879) (91,101) (4,735)
Foreclosures (13,704) (7,691) (8,775)
Net change in allowance for
credit losses (4,713) (6,550) (520)
Other (8,109) (21,342) (357)
Ending balance
Single family held for
investment 5,924,372 4,978,688 4,069,641
Single family held for sale 712,233 1,571,433 2,048,921
Commercial 5,132,122 4,480,710 3,122,336
Consumer 618,119 576,777 470,891
Exhibit 12 of 15
BANK UNITED CORP.
MORTGAGE-BACKED SECURITY ACTIVITY, AS REPORTED
(dollars in thousands)
(unaudited)
June 30, March 31, June 30,
1999 1999 1998
Beginning balance 1,168,958 1,172,070 1,319,704
Purchases 0 101,790 0
Sales 0 0 (103,431)
Principal repayments (83,125) (99,421) (160,124)
Premium/discount amortization (1,670) (1,233) (1,648)
Mark-to-market (14,848) (4,248) (4,400)
Ending balance 1,069,315 1,168,958 1,050,101
Exhibit 13 of 15
BANK UNITED CORP.
SINGLE FAMILY SERVICING PORTFOLIO SERVICED FOR OTHERS, AS REPORTED
(dollars in thousands)
(unaudited)
June 30, March 31, June 30,
1999 1999 1998
Servicing portfolio activity
Beginning balance 22,043,758 22,268,666 19,148,273
Production 488,958 992,188 554,734
Purchases 238,691 696,844 150,187
Repayments (1,334,100) (1,691,171) (1,424,445)
Other (241,702) (222,769) (182,268)
Total serviced 21,195,605 22,043,758 18,246,481
Acquired, not transferred 4,754,530 769,150 6,586,974
Ending balance 25,950,135 22,812,908 24,833,455
Number of loans serviced 284,893 244,242 266,837
Mortgage servicing rights
("MSRs") at period end 527,464 431,746 410,650
MSRs as a % of principal
balance 2.03 1.89 1.65
Loan type mix
Adjustable rate 8,563,545 7,479,008 10,230,328
Fixed rate 17,386,590 15,333,900 14,603,127
Total 25,950,135 22,812,908 24,833,455
Investor mix
GNMA 11,606,420 9,129,660 10,437,019
FNMA 3,523,941 3,052,705 3,642,579
FHLMC 2,523,595 2,191,919 2,613,555
Other 8,296,179 8,438,624 8,140,302
Total 25,950,135 22,812,908 24,833,455
Average service fee rate 0.432 0.415 0.412
Exhibit 14 of 15
BANK UNITED CORP.
ALLOWANCE FOR CREDIT LOSSES, AS REPORTED
(dollars in thousands)
(unaudited)
Single
ALLOWANCE ACTIVITY family Commercial Consumer Total
Balance at March 31, 1999 12,841 43,949 1,977 58,767
Provision 2,149 3,086 358 5,593
Acquisition 0 0 0 0
Net charge-offs (603) 89 (366) (880)
Balance at June 30, 1999 14,387 47,124 1,969 63,480
Net charge-offs
to average loans 0.05 (0.01) 0.24 0.03
Balance at September 30, 1998 12,503 32,269 2,255 47,027
Provision 4,138 13,146 693 17,977
Acquisition 0 2,594 0 2,594
Net charge-offs (2,254) (885) (979) (4,118)
Balance at June 30, 1999 14,387 47,124 1,969 63,480
Net charge-offs
to average loans 0.06 0.03 0.24 0.05
PERIOD END RESERVES June 30, March 31, June 30,
1999 1999 1998
Loans held for investment
Single family
Allowance 14,387 12,841 12,585
Period end loan balance 5,938,759 4,991,529 4,082,226
Average loan balance 4,864,105 5,066,794 4,241,940
Reserve ratio-period end 0.24 0.26 0.31
Reserve ratio-average 0.30 0.25 0.30
Reserve ratio-12 month average 0.30 0.28 0.24
Commercial
Allowance 47,124 43,949 30,180
Period end loan balance 5,054,164 4,381,270 3,017,538
Average loan balance 4,692,115 4,120,533 2,931,030
Reserve ratio-period end 0.93 1.00 1.00
Reserve ratio-average 1.00 1.07 1.03
Reserve ratio-12 month average 1.14 1.19 1.21
Consumer
Allowance 1,969 1,977 2,170
Period end loan balance 620,088 578,754 473,061
Average loan balance 600,138 543,188 442,072
Reserve ratio-period end 0.32 0.34 0.46
Reserve ratio-average 0.33 0.36 0.49
Reserve ratio-12 month average 0.37 0.40 0.63
Loans held for sale
Period end loan balance 837,315 1,714,822 2,183,899
Average loan balance 1,749,907 1,885,441 2,330,774
Total loans
Allowance 63,480 58,767 44,935
Period end loan balance 12,450,326 11,666,375 9,756,724
Average loan balance 11,906,265 11,615,956 9,945,816
Reserve ratio-period end 0.51 0.50 0.46
Reserve ratio-average 0.53 0.51 0.45
Reserve ratio-12 month average 0.56 0.54 0.47
Exhibit 15 of 15
BANK UNITED CORP.
AVERAGE BALANCE SHEET AND RATE INFORMATION, AS REPORTED
(dollars in thousands)
(unaudited)
For the Quarter Ended For the Quarter Ended
June 30, 1999 March 31, 1999
Average Average Average Average
Balance Rate Balance Rate
Interest-earning assets
Short-term interest-earning
assets 371,153 4.98 431,607 4.86
Securities and other
investments 170,913 3.47 144,507 5.03
Mortgage-backed
securities 1,111,184 6.35 1,122,278 6.31
Loans
Single family 6,519,251 7.10 6,838,812 6.95
Commercial 4,771,837 7.87 4,229,580 7.83
Consumer 596,960 7.87 541,273 7.93
Total 11,888,048 7.45 11,609,665 7.32
Federal Home Loan Bank
stock 294,976 5.24 299,268 5.50
Total interest-earning
assets 13,836,274 7.20 13,607,325 7.10
Non-interest earning
assets 1,159,086 1,143,797
Total assets 14,995,360 14,751,122
Interest-bearing liabilities
Deposits 6,656,593 4.35 6,443,932 4.45
Federal Home Loan Bank
advances 5,825,687 5.01 5,872,116 5.11
Securities sold under
agreements to repurchase
and federal funds
purchased 575,407 4.89 681,371 5.01
Notes payable 370,034 8.54 231,318 8.80
Total interest-bearing
liabilities 13,427,721 4.77 13,228,737 4.85
Non-interest bearing
liabilities, minority
interest and stockholders'
equity 1,567,639 1,522,385
Total liabilities,
minority interest ,
and stockholders'
equity 14,995,360 14,751,122
Net interest spread 2.43 2.25
Net yield on interest-earning
assets 2.57 2.38
Average interest-earning
assets to average
interest-bearing liabilities 1.03 1.03
BANK UNITED CORP.
AVERAGE BALANCE SHEET AND RATE INFORMATION, AS REPORTED
(dollars in thousands)
(unaudited)
For the Quarter Ended
June 30, 1998
Average Average
Balance Rate
Interest-earning assets
Short-term interest-earning
assets 552,931 7.27
Securities and other
investments 112,553 6.03
Mortgage-backed securities 1,202,004 6.64
Loans
Single family 6,606,211 7.32
Commercial 2,966,660 8.58
Consumer 435,148 8.08
Total 10,008,019 7.73
Federal Home Loan Bank stock 207,389 6.00
Total interest-earning
assets 12,082,896 7.55
Non-interest earning assets 955,112
Total assets 13,038,008
Interest-bearing liabilities
Deposits 6,462,527 4.93
Federal Home Loan Bank
advances 4,079,943 5.65
Securities sold under
agreements to repurchase
and federal funds purchased 740,955 5.65
Notes payable 219,954 8.90
Total interest-bearing
liabilities 11,503,379 5.31
Non-interest bearing
liabilities, minority
interest and stockholders'
equity 1,534,629
Total liabilities, minority
interest, and stockholders'
equity 13,038,008
Net interest spread 2.24
Net yield on interest-earning
assets 2.49
Average interest-earning
assets to average
interest-bearing liabilities 1.05
SOURCE Bank United Corp.
back to topRelated links:
CONTACT:
Vern Stockton, Media Relations, 713-543-6920,
or Debbie Kemple, Investor Relations, 713-543-6926, both of Bank
United Corp.
