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| Bank United Corp. Reports Increased Earnings for First Fiscal Quarter 1998 |
HOUSTON, Jan. 27 /PRNewswire/ -- Bank United Corp. (the "Company")
(Nasdaq: BNKU), parent of Bank United ("the Bank") (NYSE: BKU PrA and
BKU PrB), today reported net income of $20.4 million or basic earnings per
share of $0.65 for the quarter ended December 31, 1997 compared to
$17.3 million or basic earnings per share of $0.55 for the prior year's first
quarter; an increase of 17.9 percent. Bank United Corp. President and CEO
Barry C. Burkholder explained that the increase was directly attributable to
the ongoing successful implementation of the Company's strategic plan. "Since
last year's first fiscal quarter, we have continued to change the mix of
assets and deposits of the Bank, focusing on increased commercial loans and
more transaction deposits. Overall, assets are up more than $1.4 billion year
over year, and deposits are up more than $290 million."
The increase in net income resulted from higher net interest income earned
on a greater concentration of commercial loans and growth in that portfolio.
The Company also benefited from lower expenses caused by decreased deposit
insurance premiums, the sale of the Bank's retail mortgage origination offices
outside of Texas in February 1997, and lower provisions for credit losses
consistent with the improved level of credit quality of the last three
quarters. Diluted earnings per share for the quarter ended December 31, 1997
were $0.63 compared to $0.54 for the same period last year.
The Company reported a net yield on interest earning assets of
2.47 percent for the period ended December 31, 1997 compared to 2.48 percent,
excluding the non-recurring items of a year ago. "Strategically, the Company
continued to build its commercial loan portfolio, doubling it to $2.7 billion
at December 31, 1997 from $1.3 billion at December 31, 1996," said Burkholder.
"Financially, this change in asset composition allowed us to produce a stable
net yield on interest earning assets during the first fiscal quarter, despite
margin pressure in the marketplace."
Operating earnings for the quarter ended December 31, 1997 were
$39 million compared to $33.9 million for the same period last year. Operating
earnings reflect income before taxes and minority interest and exclude net
gains (losses) on securities, mortgage backed securities, and other loans. The
Company's assets were $12.5 billion at December 31, 1997 compared to
$11.1 billion at December 31, 1996. Stockholders' equity increased to
$612.5 million at December 31, 1997, up from $545.1 million at December 31,
1996.
In the quarter ended December 31, 1997, the Bank completed the transfer of
$6.5 billion in mortgage servicing rights into its portfolio from Prudential
and acquired three Texas community banking branches from California Federal
Bank. It also plans to complete the acquisition of 18 branches with
$1.4 billion in deposits from Guardian Savings by the end of January.
Burkholder added, "The Community Bank's growth through acquisitions reflects
the Company's strategy to increase its consumer banking market share in Texas.
And, the continuing purchases of mortgage servicing rights is part of the
Company's focus on increasing fee income."
The Company also reported net income of $28.4 million for the quarter
ended December 31, 1997 for its subsidiary Bank United compared to
$23.7 million for the same quarter of the previous year.
Bank United Corp., headquartered in Houston, is the largest publicly-
traded depository institution headquartered in Texas and, through Bank United,
operates a 73-branch community banking network in Texas, including 38 in the
greater Houston area, 31 in the Dallas/Fort Worth Metroplex and two each in
Austin and San Antonio; as well as a branch and credit card processing center
in Phoenix, Arizona; a commercial banking group with 11 regional offices;
6 wholesale mortgage originations offices; a mortgage servicing business; and
a financial markets business.
BANK UNITED CORP.
SUPPLEMENTAL BALANCE SHEET
(in thousands)
December 31, September 30, December 31,
1997 1997 1996
(unaudited) (unaudited)
Assets
Cash and cash equivalents $ 164,161 $ 121,000 $ 132,816
Securities purchased under
agreements to resell and
federal funds sold 219,639 349,209 582,236
Securities 138,076 77,809 65,451
Mortgage-backed securities, net 1,410,261 1,569,705 1,592,184
Loans, net:
Single family 6,711,311 6,492,589 6,450,418
Commercial 2,659,695 2,201,880 1,295,825
Consumer 299,569 300,760 210,767
Federal Home Loan Bank stock 230,913 205,011 198,241
Premises and equipment 46,735 46,921 38,934
Mortgage servicing rights 276,989 272,214 152,139
Intangible assets 15,545 13,605 15,607
Real estate owned 16,071 19,833 33,169
Deferred tax asset 113,142 120,936 153,211
Other assets 221,352 175,600 138,648
Total assets $12,523,459 $11,967,072 $11,059,646
Liabilities, Minority Interest,
and Stockholders' Equity
Liabilities:
Deposits $ 5,289,625 $ 5,247,668 $ 4,999,286
Federal Home Loan Bank advances 4,504,254 3,992,344 3,860,461
Securities sold under agreements
to repurchase and federal
funds purchased 1,210,137 1,308,600 1,038,086
Notes payable 220,204 220,199 115,000
Advances from borrowers for
taxes and insurance 151,734 173,294 99,048
Other liabilities 349,489 240,988 217,117
Total liabilities 11,725,443 11,183,093 10,328,998
Minority interest:
Preferred stock issued by
consolidated subsidiary 185,500 185,500 185,500
Stockholders' equity:
Common stock 316 316 316
Paid-in capital 129,286 129,286 129,286
Retained earnings 477,926 462,551 416,514
Unrealized gains (losses) on
securities available for sale,
net of tax 4,988 6,326 (968)
Total stockholders' equity 612,516 598,479 545,148
Total liabilities,
minority interest and
stockholders' equity $12,523,459 $11,967,072 $11,059,646
BANK UNITED CORP.
INCOME STATEMENT TREND
(dollars in thousands, except per share data)
(unaudited)
For the Quarter Ended
12/31/97 12/31/96
Interest Income
Short-term interest-earning assets $ 5,556 $ 9,343
Securities 2,139 980
Mortgage-backed securities 24,385 26,816
Loans 184,128 159,264
Federal Home Loan Bank stock 3,157 2,700
Total interest income 219,365 199,103
Interest Expense
Deposits 67,638 66,724
Federal Home Loan Bank advances 60,204 51,924
Securities sold under agreements to
repurchase and federal funds purchased 18,606 12,359
Notes payable 4,896 2,311
Total interest expense 151,344 133,318
Net interest income 68,021 65,785
Provision for credit losses 3,439 6,914
Net interest income after
provision for credit losses 64,582 58,871
Non-Interest Income
Net gains (losses)
Sales of single family servicing rights and
single family warehouse loans (174) 10,489
Securities and mortgage-backed securities 915 641
Other loans --- 940
Sale of mortgage offices --- ---
Loan servicing, net of related amortization 9,338 8,175
Other 6,520 4,912
Total non-interest income 16,599 25,157
Non-Interest Expense
Compensation and benefits 18,710 19,975
Occupancy 3,678 4,255
Data processing 3,823 3,801
Advertising and marketing 2,874 2,255
Amortization of intangibles 885 1,315
SAIF deposit insurance premiums 851 2,957
Furniture and equipment 892 1,219
Other 9,477 12,792
Total non-interest expense 41,190 48,569
Income before income taxes, minority
interest, and extraordinary loss 39,991 35,459
Income tax expense 14,998 13,633
Income before minority interest and
extraordinary loss 24,993 21,826
Minority interest
Subsidiary preferred stock dividends 4,563 4,563
Income before extraordinary loss 20,430 17,263
Extraordinary loss --- ---
NET INCOME $ 20,430 $ 17,263
Basic earnings per common share (A)
Income before extraordinary loss $ 0.65 $ 0.55
Net income 0.65 0.55
Diluted earnings per common share (A)
Income before extraordinary loss $ 0.63 $ 0.54
Net income 0.63 0.54
For the Quarter Ended
12/31/97 09/30/97 06/30/97 03/31/97 12/31/96
Interest Income
Short-term interest-
earning assets $ 5,556 $ 9,508 $ 9,195 $ 8,194 $ 9,343
Securities 2,139 1,619 1,521 1,251 980
Mortgage-backed
securities 24,385 25,945 25,610 26,520 26,816
Loans 184,128 170,809 163,677 159,136 159,264
Federal Home Loan
Bank stock 3,157 2,893 2,900 2,827 2,700
Total interest
income 219,365 210,774 202,903 197,928 199,103
Interest Expense
Deposits 67,638 67,654 65,733 62,650 66,724
Federal Home Loan
Bank advances 60,204 54,857 52,399 53,378 51,924
Securities sold under
agreements to repurchase
and federal funds
purchased 18,606 17,632 14,263 13,081 12,359
Notes payable 4,896 4,896 3,888 2,315 2,311
Total interest
expense 151,344 145,039 136,283 131,424 133,318
Net interest income 68,021 65,735 66,620 66,504 65,785
Provision for
credit losses 3,439 3,463 3,425 4,305 6,914
Net interest income
after provision for
credit losses 64,582 62,272 63,195 62,199 58,871
Non-Interest Income
Net gains (losses)
Sales of single
family servicing
rights and single
family warehouse
loans (174) 707 3,544 6,442 10,489
Securities and mortgage
-backed securities 915 564 684 952 641
Other loans --- 136 56 (4) 940
Sale of mortgage
offices --- 750 --- 3,998 ---
Loan servicing, net of
related amortization 9,338 8,746 7,809 7,651 8,175
Other 6,520 6,227 5,221 4,792 4,912
Total non-interest
income 16,599 17,130 17,314 23,831 25,157
Non-Interest Expense
Compensation and
benefits 18,710 17,815 17,901 19,325 19,975
Occupancy 3,678 3,571 3,501 3,616 4,255
Data processing 3,823 3,495 2,998 3,418 3,801
Advertising and
marketing 2,874 1,168 1,829 1,895 2,255
Amortization of
intangibles 885 768 838 1,197 1,315
SAIF deposit
insurance premiums 851 812 823 205 2,957
Furniture and equipment 892 873 953 1,029 1,219
Other 9,477 11,224 12,414 11,899 12,792
Total non-interest
expense 41,190 39,726 41,257 42,584 48,569
Income before income
taxes, minority
interest, and
extraordinary loss 39,991 39,676 39,252 43,446 35,459
Income tax expense 14,998 15,187 15,086 16,780 13,633
Income before minority
interest and
extraordinary loss 24,993 24,489 24,166 26,666 21,826
Minority interest
Subsidiary preferred
stock dividends 4,563 4,564 4,563 4,563 4,563
Income before
extraordinary loss 20,430 19,925 19,603 22,103 17,263
Extraordinary loss --- --- 2,323 --- ---
NET INCOME $ 20,430 $ 19,925 $ 17,280 $ 22,103 $ 17,263
Basic earnings per
common share (A)
Income before
extraordinary
loss $ 0.65 $ 0.63 $ 0.62 $ 0.70 $ 0.55
Net income 0.65 0.63 0.55 0.70 0.55
Diluted earnings per
common share (A)
Income before
extraordinary
loss $ 0.63 $ 0.62 $ 0.61 $ 0.69 $ 0.54
Net income 0.63 0.62 0.54 0.69 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 Quarter Ended
December 31,
1997 1996
Summary Income Statement
Interest income $ 219,365 $ 199,103
Interest expense 151,344 133,318
Net interest income 68,021 65,785
Provision for credit losses 3,439 6,914
Loan servicing, net of related amortization 9,338 8,175
Gains (losses) from sales of single
family servicing rights and single
family warehouse loans (174) 10,489
Other 7,435 6,493
Non-interest income 16,599 25,157
Non-interest expenses 41,190 48,569
Income before income taxes
and minority interest 39,991 35,459
Income tax expense 14,998 13,633
Income before minority interest 24,993 21,826
Minority interest
Subsidiary preferred stock dividends 4,563 4,563
Net income $ 20,430 $ 17,263
Net income applicable to common shares $ 20,430 $ 17,263
Average common shares outstanding
Basic 31,595,596 31,595,596
Diluted 32,325,170 31,820,244
Earnings per common share (A)
Basic $ 0.65 $ 0.55
Diluted 0.63 0.54
Operating earnings (B) $ 39,076 $ 33,878
Other Selected Data
Total assets -- Period end $12,523,459 $11,059,646
-- Average $12,053,698 $10,773,922
Average interest-earning assets $11,345,957 $10,230,518
Total deposits $ 5,289,625 $ 4,999,286
Stockholders' equity -- Period end $ 612,516 $ 545,148
-- Average $ 606,599 $ 539,406
ROA (return, before minority interest,
on average assets) 0.82% 0.80%
ROCE (return on average common equity) 13.34% 12.67%
Average equity to average assets 5.03% 5.01%
Dividends paid per common share $ 0.16 $ 0.14
Note (A) Prior periods restated for SFAS 128 EPS pronouncement.
Note (B) Operating earnings represents income before taxes and minority
interest and excludes net gains (losses) on securities,
mortgage-backed securities and other loans.
BANK UNITED CORP.
FINANCIAL HIGHLIGHTS TREND
(dollars in thousands, except per share data)
(unaudited)
For the Quarter Ended
12/31/97 12/31/96
For the period ended
Net interest income $ 68,021 $ 65,785
Provision for credit losses 3,439 6,914
Non-interest income 16,599 25,157
Non-interest expense 41,190 48,569
Net income 20,430 17,263
Net income applicable to common shares 20,430 17,263
Operating earnings (A) 39,076 33,878
Loan fundings
Single family 846,941 649,752
Commercial 528,620 329,641
Consumer 36,565 23,768
Total fundings 1,412,126 1,003,161
Common share data
Earnings per share (B)
Basic 0.65 0.55
Diluted 0.63 0.54
Dividends paid per common share 0.16 0.14
Book value (period end) 19.39 17.25
Tangible book value (period end) 18.89 16.76
At period end
Assets 12,523,459 11,059,646
Securities 138,076 65,451
Mortgage-backed securities 1,410,261 1,592,184
Loans, net 9,670,575 7,957,010
Allowance for credit losses 35,209 43,532
Deposits 5,289,625 4,999,286
Borrowed funds 5,934,595 5,013,547
Minority interest 185,500 185,500
Stockholders' equity 612,516 545,148
Servicing portfolio (C) 24,436,014 13,237,225
Average balances
Assets 12,053,698 10,773,922
Stockholders' equity 606,599 539,406
Interest-earning assets 11,345,957 10,230,518
Interest-bearing liabilities 10,822,858 9,696,561
Average common shares outstanding
Basic 31,595,596 31,595,596
Diluted 32,325,170 31,820,244
Ratios
ROA (return, before minority interest,
on average assets) 0.82% 0.80%
ROCE (return on average common equity) 13.34 12.67
Net interest spread 2.22 2.35
Net yield on interest-earning assets 2.47 2.63
Efficiency ratio 48.27 53.23
Equity to assets (period end) 4.89 4.93
Tangible capital ratio (Bank only) 7.37 6.63
Core capital ratio (Bank only) 7.41 6.69
Risk-based capital ratio (Bank only) 11.98 12.74
Asset quality (period end)
Nonperforming loans ("NPLs") $ 66,075 $ 89,974
Nonperforming assets ("NPAs") 83,131 123,883
NPLs as a % of total loans 0.68% 1.12%
NPAs as a % of total assets 0.66 1.12
For the Quarter Ended
12/31/97 09/30/97 06/30/97 03/31/97 12/31/96
For the period ended
Net interest
income $ 68,021 $ 65,735 $ 66,620 $ 66,504 $ 65,785
Provision for
credit losses 3,439 3,463 3,425 4,305 6,914
Non-interest
income 16,599 17,130 17,314 23,831 25,157
Non-interest
expense 41,190 39,726 41,257 42,584 48,569
Net income 20,430 19,925 17,280 22,103 17,263
Net income
applicable to
common shares 20,430 19,925 17,280 22,103 17,263
Operating
earnings (A) 39,076 38,226 38,512 38,500 33,878
Loan fundings
Single
family 846,941 584,968 449,816 503,737 649,752
Commercial 528,620 447,183 400,255 315,852 329,641
Consumer 36,565 43,609 45,694 39,594 23,768
Total
fundings 1,412,126 1,075,760 895,765 859,183 1,003,161
Common share data
Earnings per
share (B)
Basic 0.65 0.63 0.55 0.70 0.55
Diluted 0.63 0.62 0.54 0.69 0.54
Dividends paid per
common share 0.16 0.14 0.14 0.14 0.14
Book value
(period end) 19.39 18.94 18.44 18.01 17.25
Tangible book
value
(period end) 18.89 18.51 17.99 17.61 16.76
At period end
Assets 12,523,459 11,967,072 11,439,050 11,002,625 11,059,646
Securities 138,076 77,809 57,353 29,200 65,451
Mortgage-backed
securities 1,410,261 1,569,705 1,601,857 1,525,086 1,592,184
Loans, net 9,670,575 8,995,229 8,271,904 8,032,142 7,957,010
Allowance for
credit losses 35,209 39,174 38,558 43,748 43,532
Deposits 5,289,625 5,247,668 5,249,888 5,065,804 4,999,286
Borrowed
funds 5,934,595 5,521,143 5,031,636 4,829,455 5,013,547
Minority
interest 185,500 185,500 185,500 185,500 185,500
Stockholders'
equity 612,516 598,479 582,676 568,897 545,148
Servicing
portfolio
(C) 24,436,014 24,518,426 24,370,954 17,782,822 13,237,225
Average balances
Assets 12,053,698 11,569,265 11,123,510 10,944,802 10,773,922
Stockholders'
equity 606,599 591,497 576,803 559,571 539,406
Interest-
earning
assets 11,345,957 10,884,206 10,458,119 10,352,385 10,230,518
Interest-
bearing
liabilities 10,822,858 10,404,809 9,972,721 9,893,039 9,696,561
Average common
shares
outstanding
Basic 31,595,596 31,595,596 31,595,596 31,595,596 31,595,596
Diluted 32,325,170 32,167,657 32,081,229 31,960,009 31,820,244
Ratios
ROA (return,
before minority
interest,
on average
assets) 0.82% 0.84% 0.79% 0.99% 0.80%
ROCE (return on
average common
equity) 13.34 13.34 12.02 16.06 12.67
Net interest
spread 2.22 2.25 2.31 2.31 2.35
Net yield on
interest-earning
assets 2.47 2.49 2.56 2.55 2.63
Efficiency ratio 48.27 47.97 48.79 48.84 53.23
Equity to assets
(period end) 4.89 5.00 5.09 5.17 4.93
Tangible capital
ratio
(Bank only) 7.37 7.72 7.59 6.87 6.63
Core capital
ratio
(Bank only) 7.41 7.77 7.65 6.93 6.69
Risk-based
capital ratio
(Bank only) 11.98 13.18 14.05 12.68 12.74
Asset quality (period end)
Nonperforming
loans
("NPLs") $ 66,075 $ 53,952 $ 53,861 $ 88,496 $ 89,974
Nonperforming
assets
("NPAs") 83,131 74,990 76,158 118,993 123,883
NPLs as a %
of total
loans 0.68% 0.60% 0.65% 1.10% 1.12%
NPAs as a %
of total
assets 0.66 0.63 0.67 1.08 1.12
Note (A) Operating earnings represents income before taxes, minority
interest and extraordinary loss and excludes net gains (losses)
on securities, mortgage- backed securities and other loans, and
gain related to sale of mortgage offices. Operating earnings
excludes non-recurring items. In fiscal 1997, non-recurring
items related to the gain on sale of mortgage offices of $4,748
($2,924 net of tax) recorded in March and September 1997, and an
extraordinary loss on extinguishment of a debt of $3,574 ($2,323
net of tax) recorded in May 1997.
Note (B) 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.
Note (C) Includes purchased servicing rights of $921,944 at December 31,
1997, $7,456,167 at September 30, 1997, $7,135,649 at June 30,
1997, $3,497,699 at March 31, 1997 and $742,245 at December 31,
1996 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
12/31/97 12/31/96
Selected financial information,
excluding non-recurring items (A)
Net income $ 20,430 $ 17,263
Net income applicable to common shares 20,430 17,263
Earnings per share (B)
Basic 0.65 0.55
Diluted 0.63 0.54
ROA 0.82% 0.80%
ROCE 13.34 12.67
Efficiency ratio 48.27 53.23
For the Quarter Ended
12/31/97 09/30/97 06/30/97 03/31/97 12/31/96
Selected financial
information, excluding
non-recurring items (A)
Net income $ 20,430 $ 19,463 $ 19,603 $ 19,641 $ 17,263
Net income applicable
to common shares 20,430 19,463 19,603 19,641 17,263
Earnings per share (B)
Basic 0.65 0.62 0.62 0.62 0.55
Diluted 0.63 0.61 0.61 0.61 0.54
ROA 0.82% 0.82% 0.87% 0.90% 0.80%
ROCE 13.34 13.04 13.67 14.30 12.67
Efficiency ratio 48.27 47.97 48.79 48.84 53.23
Note (A) In fiscal 1997, non-recurring items related to the gain on sale
of mortgage offices of $4,748 ($2,924 net of tax) recorded in
March and September 1997, and an extraordinary loss on
extinguishment of a debt of $3,574 ($2,323 net of tax) recorded
in May 1997.
Note (B) 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.
SOURCE Bank United Corp.
back to topCONTACT:
Media Relations: Vern Stockton, Investor
Relations, 713-543-6920, or Anthony J. Nocella, 713-543-6575,
both of Bank United Corp.
