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| Bank United Corp. Reports Record Earnings for Third Fiscal Quarter 1998 |
HOUSTON, July 28 /PRNewswire/ -- Bank United Corp. (Nasdaq: BNKU) (the "Company"), parent of Bank United (NYSE: BKU PrA and BKU PrB) (the "Bank"), today reported net income of $23.9 million or $0.74 per diluted share for the quarter ended June 30, 1998 compared to $17.3 million or $0.54 per diluted share for the quarter ended June 30, 1997, an increase of 37 percent. This quarter's results represent the Company's highest earnings since the Company's initial public offering in 1996, excluding certain non- recurring tax benefits recorded in the previous quarter. Bank United Corp. President and CEO Barry C. Burkholder said, "Our record earnings are attributable to growth in net interest income which reflects the continuing transition into a commercial and consumer oriented community bank. We have experienced record commercial and consumer loan originations this year with all of Bank United's business segments exceeding their year to date funding targets as follows: -- Commercial loans originated totaled $723 million and $1.9 billion for the quarter and nine months, bringing outstanding balances to $3.1 billion, up 89% over last year. -- Consumer loan originations, including strong home equity production, amounted to $129 million and $309 million for the quarter and nine months. Our consumer loan portfolio now stands at $471 million, up 65% over last year. -- Single family loan originations for the nine months were $2.8 billion, an increase of $1.2 billion over the year ago period." The Bank's fee producing businesses increased non-interest income by $5.3 million in the third quarter or 31 percent over the last year. Increases in loan servicing fees relate to a 20% growth in our servicing portfolio to $29.3 billion and approximately 306 thousand loans. The community bank branches experienced strong fee growth from their higher base of checking account households and sales of investment products. The Company's efficiency ratio for the quarter was 50 percent as non- interest expenses increased year to year to support growth in the servicing portfolio, expenses related to the addition of 12 new branches, and investment in a new branch automation system. Burkholder added, "Significantly, the Company's return on common equity for the quarter was 14.49% approaching our internal target of 15%." The Company's assets were $13.1 billion at June 30, 1998 compared to $11.4 billion at June 30, 1997. Stockholders' equity increased to $669.4 million at June 30, 1998, up from $582.7 million at June 30, 1997. The Company also reported net income of $31.7 million for the quarter ended June 30, 1998 for its subsidiary Bank United compared to $26.9 million for the same quarter of the previous year. Bank United Corp. is the largest publicly-traded depository institution headquartered in Texas and, through Bank United, operates an 81-branch community banking network in Texas, including 41 in the greater Houston area, 36 in the Dallas/Fort Worth area and two each in Austin and San Antonio; a commercial banking group with 21 regional offices in 18 states; 6 wholesale mortgage origination offices; a mortgage servicing business; and a financial markets business. BANK UNITED CORP. SUPPLEMENTAL BALANCE SHEET (in thousands) June 30, September 30, June 30, 1998 1997 1997 (unaudited) (unaudited) Assets Cash and cash equivalents $172,369 $121,000 $102,811 Securities purchased under agreements to resell and federal funds sold 840,505 349,209 577,059 Securities 137,414 77,809 57,353 Mortgage-backed securities, net 1,050,101 1,569,705 1,601,857 Loans, net: Single family 4,069,641 5,795,179 6,086,495 Single family-held for sale 2,048,921 697,410 243,808 Commercial 3,122,336 2,201,880 1,655,536 Consumer 470,891 300,760 286,065 Federal Home Loan Bank stock 210,017 205,011 186,907 Premises and equipment 54,220 46,921 38,495 Mortgage servicing rights 410,650 272,214 274,980 Intangible assets 61,341 13,605 14,356 Real estate owned 18,401 19,833 21,369 Deferred tax asset 121,645 120,936 130,026 Other assets 307,495 175,600 161,933 Total assets $13,095,947 $11,967,072 $11,439,050 Liabilities, Minority Interest, and Stockholders' Equity Liabilities: Deposits $6,419,242 $5,247,668 $5,248,888 Federal Home Loan Bank advances 4,078,294 3,992,344 3,630,060 Securities sold under agreements to repurchase and federal funds purchased 891,724 1,308,600 1,181,382 Notes payable 219,715 220,199 220,194 Advances from borrowers for taxes and insurance 192,724 173,294 164,042 Other liabilities 439,182 240,988 225,308 Total liabilities 12,241,036 11,183,093 10,670,874 Minority interest: Preferred stock issued by consolidated subsidiary 185,500 185,500 185,500 Stockholders' equity: Common stock 316 316 316 Paid-in capital 129,879 129,286 129,286 Retained earnings 538,030 462,551 447,050 Unrealized gains (losses) on securities available for sale, net of tax 1,779 6,326 6,024 Total stockholders' equity 669,411 598,479 582,676 Total liabilities, minority interest and stockholders' equity $13,095,947 $11,967,072 $11,439,050 BANK UNITED CORP. INCOME STATEMENT TREND (dollars in thousands, except per share data) (unaudited) For the Nine Months Ended 06/30/98 06/30/97 Interest Income Short-term interest-earning assets $22,013 $26,732 Securities 5,972 3,752 Mortgage-backed securities 66,942 78,946 Loans 556,574 482,077 Federal Home Loan Bank stock 9,440 8,427 Total interest income 670,941 599,934 Interest Expense Deposits 221,453 195,107 Federal Home Loan Bank advances 176,999 157,701 Securities sold under agreements to repurchase and federal funds purchased 43,216 39,703 Notes payable 14,684 8,514 Total interest expense 456,352 401,025 Net interest income 214,589 198,909 Provision for credit losses 16,777 14,644 Net interest income after provision for credit losses 197,812 184,265 Non-Interest Income Net gains (losses) Sales of single family servicing rights and single family warehouse loans 5,464 20,475 Securities and mortgage-backed securities 2,025 2,277 Other loans 673 992 Sale of mortgage offices --- 3,998 Loan servicing,net of related amortization 24,089 23,635 Other 21,859 14,925 Total non-interest income 54,110 66,302 Non-Interest Expense Compensation and benefits 62,308 57,201 Occupancy 12,125 11,372 Data processing 11,952 10,217 Advertising and marketing 6,230 5,979 Amortization of intangibles 4,114 3,350 SAIF deposit insurance premiums 3,100 3,985 Furniture and equipment 2,778 3,201 Other 36,176 37,105 Total non-interest expense 138,783 132,410 Income before income taxes, minority interest, and extraordinary loss 113,139 118,157 Income tax expense 8,805 45,499 Income before minority interest and extraordinary loss 104,334 72,658 Minority interest Subsidiary preferred stock dividends 13,689 13,689 Income before extraordinary loss 90,645 58,969 Extraordinary loss (debt extinguishment) --- 2,323 NET INCOME $90,645 $56,646 Basic earnings per common share (A) Income before extraordinary loss $2.87 $1.87 Net income 2.87 1.79 Diluted earnings per common share (A) Income before extraordinary loss $2.80 $1.85 Net income 2.80 1.77 Note (A) Prior periods restated for Statement of Financial Accounting Standard ("SFAS") No. 128, Earnings Per Share. The sum of EPS amounts for four quarters may not equal annual EPS amounts due to changes in weighted average shares outstanding during the periods and to rounding. BANK UNITED CORP. INCOME STATEMENT TREND (dollars in thousands, except per share data) (unaudited) For the Quarter Ended 06/30/98 03/31/98 12/31/97 09/30/97 06/30/97 Interest Income Short-term interest -earning assets $10,164 $6,293 $5,556 $9,508 $9,195 Securities 1,693 2,140 2,139 1,619 1,521 Mortgage-backed securities 19,962 22,595 24,385 25,945 25,610 Loans 193,439 189,007 184,128 170,809 163,677 Federal Home Loan Bank stock 3,102 3,181 3,157 2,893 2,900 Total interest income 228,360 223,216 219,365 210,774 202,903 Interest Expense Deposits 79,448 74,367 67,638 67,654 65,733 Federal Home Loan Bank advances 58,242 58,553 60,204 54,857 52,399 Securities sold under agreements to repurchase and federal funds purchased 10,591 14,019 18,606 17,632 14,263 Notes payable 4,892 4,896 4,896 4,896 3,888 Total interest expense 153,173 151,835 151,344 145,039 136,283 Net interest income 75,187 71,381 68,021 65,735 66,620 Provision for credit losses 1,814 11,524 3,439 3,463 3,425 Net interest income after provision for credit losses 73,373 59,857 64,582 62,272 63,195 Non-Interest Income Net gains (losses) Sales of single family servicing rights and single family warehouse loans 2,923 2,715 (174) 707 3,544 Securities and mortgage -backed securities 224 886 915 564 684 Other loans 297 376 --- 136 56 Sale of mortgage offices --- --- --- 750 --- Loan servicing, net of related amortization 10,630 4,121 9,338 8,746 7,809 Other 8,579 6,760 6,520 6,227 5,221 Total non- interest income 22,653 14,858 16,599 17,130 17,314 Non-Interest Expense Compensation and benefits 22,683 20,915 18,710 17,815 17,901 Occupancy 4,376 4,071 3,678 3,571 3,501 Data processing 4,202 3,927 3,823 3,495 2,998 Advertising and marketing 1,685 1,671 2,874 1,168 1,829 Amortization of intangibles 1,761 1,468 885 768 838 SAIF deposit insurance premiums 1,173 1,076 851 812 823 Furniture and equipment 1,038 848 892 873 953 Other 13,618 13,081 9,477 11,224 12,414 Total non- interest expense 50,536 47,057 41,190 39,726 41,257 Income before income taxes, minority interest, and extraordinary loss 45,490 27,658 39,991 39,676 39,252 Income tax expense 17,014 (23,207) 14,998 15,187 15,086 Income before minority interest and extraordinary loss 28,476 50,865 24,993 24,489 24,166 Minority interest Subsidiary preferred stock dividends 4,563 4,563 4,563 4,564 4,563 Income before extraordinary loss 23,913 46,302 20,430 19,925 19,603 Extraordinary loss (debt extinguishment) --- --- --- --- 2,323 NET INCOME $23,913 $46,302 $20,430 $19,925 $17,280 Basic earnings per common share (A) Income before extraordinary loss $0.76 $1.47 $0.65 $0.63 $0.62 Net income 0.76 1.47 0.65 0.63 0.55 Diluted earnings per common share (A) Income before extraordinary loss $0.74 $1.43 $0.63 $0.62 $0.61 Net income 0.74 1.43 0.63 0.62 0.54 Note (A) Prior periods restated for Statement of Financial Accounting Standard ("SFAS") No. 128, Earnings Per Share. The sum of EPS amounts for four quarters may not equal annual EPS amounts due to changes in weighted average shares outstanding during the periods and to rounding. BANK UNITED CORP. SUPPLEMENTAL FINANCIAL INFORMATION (dollars in thousands, except per share data) (unaudited) For the Nine Months Ended For the Quarter Ended June 30, June 30, 1998 1997 1998 1997 Summary Income Statement Interest income $670,941 $599,934 $228,360 $202,903 Interest expense 456,352 401,025 153,173 136,283 Net interest income 214,589 198,909 75,187 66,620 Provision for credit losses 16,777 14,644 1,814 3,425 Loan servicing, net of related amortization 24,089 23,635 10,630 7,809 Gains (losses) from sales of single family servicing rights and single family warehouse loans 5,464 20,475 2,923 3,544 Other 24,557 22,192 9,100 5,961 Non-interest income 54,110 66,302 22,653 17,314 Non-interest expenses 138,783 132,410 50,536 41,257 Income before income taxes and minority interest, and extraordinary loss 113,139 118,157 45,490 39,252 Income tax expense 8,805 45,499 17,014 15,086 Income before minority interest and extraordinary loss 104,334 72,658 28,476 24,166 Minority interest Subsidiary preferred stock dividends 13,689 13,689 4,563 4,563 Income before extraordinary loss 90,645 58,969 23,913 19,603 Extraordinary loss (debt extinguishment) 0 2323 0 2,323 Net income $90,645 $56,646 $23,913 $17,280 Net income applicable to common shares $90,645 $56,646 $23,913 $17,280 Average common shares outstanding Basic 31,595,596 31,595,596 31,595,596 31,595,596 Diluted 32,360,747 31,957,508 32,442,309 32,081,229 Earnings per common share (A) Basic $2.87 $1.79 $0.76 $0.55 Diluted 2.80 1.77 0.74 0.54 Other Selected Data Total assets -- Period end $13,095,947 $11,439,050 $13,095,947 $11,439,050 -- Average $12,597,615 $10,946,786 $13,038,008 $11,123,510 Average interest-earning assets $11,742,705 $10,346,561 $12,082,896 $10,458,119 Total deposits $6,419,242 $5,249,888 $6,419,242 $5,249,888 Stockholders' equity -- Period end $669,411 $582,676 $669,411 $582,676 -- Average $632,027 $558,907 $662,469 $576,803 ROA (return, before minority interest, on average assets) 1.11 % 0.86 % 0.88 % 0.79 % ROCE (return on average common equity) 19.18 % 13.56 % 14.49 % 12.02 % Average equity to average assets 5.02 % 5.11 % 5.08 % 5.19 % Dividends paid per common share $0.48 $0.42 $0.16 $0.14 Note (A) Prior periods restated for SFAS 128 EPS Pronouncement. BANK UNITED CORP. FINANCIAL HIGHLIGHTS TREND (dollars in thousands, except per share data) (unaudited) For the Nine Months Ended 06/30/98 06/30/97 For the period ended Net interest income $ 214,589 $ 198,909 Provision for credit losses 16,777 14,644 Non-interest income 54,110 66,302 Non-interest expense 138,783 132,410 Net income 90,645 56,646 Net income applicable to common shares 90,645 56,646 Loan fundings Single family 2,791,581 1,603,305 Commercial 1,942,142 1,045,748 Consumer 308,592 109,056 Total fundings 5,042,315 2,758,109 Common share data Earnings per share (A) Basic 2.87 1.79 Diluted 2.80 1.77 Dividends paid per common share 0.48 0.42 Book value (period end) 21.19 18.44 Tangible book value (period end) 19.25 17.99 At period end Assets 13,095,947 11,439,050 Securities 137,414 57,353 Mortgage-backed securities 1,050,101 1,601,857 Loans, net 9,711,789 8,271,904 Allowance for credit losses 44,935 38,558 Deposits 6,419,242 5,249,888 Borrowed funds 5,189,733 5,031,636 Minority interest 185,500 185,500 Stockholders' equity 669,411 582,676 Servicing portfolio(B) 29,349,450 24,370,954 Average balances Assets 12,597,615 10,946,786 Stockholders' equity 632,027 558,907 Interest-earning assets 11,742,705 10,346,561 Interest-bearing liabilities 11,236,143 9,853,388 Average common shares outstanding Basic 31,595,596 31,595,596 Diluted 32,360,747 31,957,508 Ratios ROA (return, before minority interest, on average assets) 1.11% 0.86% ROCE (return on average common equity) 19.18 13.56 Net interest spread 2.21 2.32 Net yield on interest-earning assets 2.44 2.58 Efficiency ratio 50.74 50.35 Equity to assets (period end) 5.11 5.09 Tangible capital ratio (Bank only) 7.03 7.59 Core capital ratio (Bank only) 7.06 7.65 Risk-based capital ratio (Bank only) 10.93 14.05 Asset quality (period end) Nonperforming loans ("NPLs") $ 66,520 $ 53,861 Nonperforming assets ("NPAs") 85,548 76,158 NPLs as a % of total loans 0.68% 0.65% NPAs as a % of total assets 0.65 0.67 (A) Prior periods restated for SFAS 128 EPS pronouncement. The sum of EPS amounts for four quarters may not equal annual EPS amounts due to changes in weighted average shares outstanding during the periods and to rounding. (B) Includes purchased servicing rights of $6,586,977 at June 30, 1998, $151,418 at March 31, 1998, $921,944 at December 31, 1997, $7,456,167 at September 30, 1997, and $7,135,649 at June 30, 1997 which had not been transferred as of period end. BANK UNITED CORP. FINANCIAL HIGHLIGHTS TREND (dollars in thousands, except per share data) (unaudited) For the Quarter Ended For the period ended 06/30/98 03/31/98 12/31/97 09/30/97 06/30/97 Net interest income $75,187 $71,381 $68,021 $65,735 $66,620 Provision for credit losses 1,814 11,524 3,439 3,463 3,425 Non-interest income 22,653 14,858 16,599 17,130 17,314 Non-interest expense 50,536 47,057 41,190 39,726 41,257 Net income 23,913 46,302 20,430 19,925 17,280 Net income applicable to common shares 23,913 46,302 20,430 19,925 17,280 Loan fundings Single family 832,562 1,112,078 846,941 584,968 449,816 Commercial 723,001 690,521 528,620 447,183 400,255 Consumer 128,562 143,465 36,565 43,609 45,694 Total fundings 1,684,125 1,946,064 1,412,126 1,075,760 895,765 Common share data Earnings per share(A) Basic 0.76 1.47 0.65 0.63 0.55 Diluted 0.74 1.43 0.63 0.62 0.54 Dividends paid per common share 0.16 0.16 0.16 0.14 0.14 Book value (period end) 21.19 20.67 19.39 18.94 18.44 Tangible book value (period end) 19.25 18.68 18.89 18.51 17.99 At period end Assets 13,095,947 13,109,497 12,523,459 11,967,072 11,439,050 Securities 137,414 61,753 138,076 77,809 57,353 Mortgage -backed securities 1,050,101 1,319,704 1,410,261 1,569,705 1,601,857 Loans, net 9,711,789 9,967,065 9,670,575 8,995,229 8,271,904 Allowance for credit losses 44,935 44,415 35,209 39,174 38,558 Deposits 6,419,242 6,506,367 5,289,625 5,247,668 5,249,888 Borrowed funds 5,189,733 5,116,933 5,934,595 5,521,143 5,031,636 Minority interest 185,500 185,500 185,500 185,500 185,500 Stockholders' equity 669,411 653,021 612,516 598,479 582,676 Servicing portfolio (B) 29,349,450 23,887,887 24,436,014 24,518,396 24,370,954 Average balances Assets 13,038,008 12,708,333 12,053,698 11,569,265 11,123,510 Stockholders' equity 662,469 627,384 606,599 591,497 576,803 Interest- earning assets 12,082,896 11,804,306 11,345,957 10,884,206 10,458,119 Interest- bearing liabilities 11,503,379 11,388,405 10,822,858 10,404,809 9,972,721 Average common shares outstanding Basic 31,595,596 31,595,596 31,595,596 31,595,596 31,595,596 Diluted 32,442,309 32,316,688 32,325,170 32,167,657 32,081,229 Ratios ROA (return, before minority interest, on average assets) 0.88% 1.62% 0.82% 0.84% 0.79% ROCE (return on average common equity) 14.49 29.97 13.34 13.34 12.02 Net interest spread 2.24 2.20 2.22 2.25 2.31 Net yield on interest-earning assets. 2.49 2.39 2.47 2.49 2.56 Efficiency ratio 50.22 53.77 48.27 47.97 48.79 Equity to assets (period end) 5.11 4.98 4.89 5.00 5.09 Tangible capital ratio (Bank only) 7.03 7.02 7.37 7.72 7.59 Core capital ratio (Bank only) 7.06 7.06 7.41 7.77 7.65 Risk-based capital ratio (Bank only) 10.93 11.59 11.98 13.18 14.05 Asset quality (period end) Nonperforming loans ("NPLs") $66,520 $62,167 $66,075 $53,952 $53,861 Nonperforming assets ("NPAs") 85,548 82,671 83,131 74,990 76,158 NPLs as a % of total loans 0.68% 0.62% 0.68% 0.60% 0.65% NPAs as a % of total assets 0.65 0.63 0.66 0.63 0.67 (A) Prior periods restated for SFAS 128 EPS pronouncement. The sum of EPS amounts for four quarters may not equal annual EPS amounts due to changes in weighted average shares outstanding during the periods and to rounding. (B) Includes purchased servicing rights of $6,586,977 at June 30, 1998, $151,418 at March 31, 1998, $921,944 at December 31, 1997, $7,456,167 at September 30, 1997, and $7,135,649 at June 30, 1997 which had not been transferred as of period end.SOURCE Bank United Corp.
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Vern Stockton, Media Relations, 713-543-6920,
or Anthony J. Nocella, Investor Relations, 713-543-6575, both of
Bank United Corp.
