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| Bank United Corp. Reports Earnings for Fiscal Year 1997 |
HOUSTON, Oct. 28 /PRNewswire/ -- Bank United Corp. (the "Company")
(Nasdaq: BNKU), parent of Bank United (NYSE: BKU PrA and BKU PrB), today
announced that its net income increased 35 percent to $76 million ($2.40 per
share) for the year ended September 30, 1997, compared to $56.4 million
($1.82 per share) for the prior year, excluding non-recurring items for
both years. Net income for the fourth quarter of fiscal year 1997 was
$19.5 million ($0.62 per share) compared to $13.8 million ($0.44 per share) in
the year ago quarter, excluding non-recurring items for both quarters.
The Company's 35 percent net income increase, excluding non-recurring
items in each year, resulted primarily from higher net interest income from
increased higher yielding commercial and consumer loans, and lower funding
costs.
"In addition to improving net income from operations during fiscal year
1997, the Company's first full post-IPO year, the bank more than doubled
its commercial and consumer loan portfolio from $1.2 billion last year to
$2.5 billion, while improving asset quality overall," said Bank United Corp.
President and CEO Barry C. Burkholder. "The bank also moved forward on its
strategy to increase deposits by agreeing to purchase 21 branches and
$1.4 billion in deposits from other institutions in the Houston area and the
Dallas/Ft. Worth Metroplex, and lowered its dependence on single family
mortgages by the sale of its retail mortgage origination offices outside of
the state of Texas. The bank also increased its mortgage loan servicing
portfolio from $13.2 billion to $24.5 billion."
Including non-recurring items in both years, the Company reported net
income of $76.6 million for the year ended September 30, 1997 compared to
$118.9 million for the prior year, and net income of $20 million for the
quarter ended September 30, 1997 compared to a loss of $6.9 million in the
year ago quarter. The major non-recurring items for both years are detailed
in the following supplemental financial information.
The Company's assets were $12.0 billion at September 30, 1997, compared to
$10.7 billion at September 30, 1996.
The Company announced that its subsidiary Bank United produced net income
of $104.3 million compared to $82.3 million for the prior year, excluding
non-recurring items, an increase of 27 percent. The bank's reported net
income, which includes non-recurring items, is $107.2 million compared to
$134.2 million for the prior year.
Bank United Corp., headquartered in Houston, is the largest publicly-
traded depository institution headquartered in Texas and, through Bank United,
operates a 70-branch community banking network in Texas, including 37 in the
greater Houston area, 29 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)
September 30, September 30,
1997 1996
Assets
Cash and cash equivalents $ 121,000 $ 119,523
Securities purchased under agreements to
resell and federal funds sold 349,209 674,249
Securities 77,809 65,693
Mortgage-backed securities, net 1,569,705 1,657,908
Loans, net:
Single family 6,492,589 6,369,974
Commercial 2,201,880 981,001
Consumer 300,760 168,513
Federal Home Loan Bank stock 205,011 179,643
Premises and equipment 46,921 40,209
Mortgage servicing rights 272,214 123,392
Intangible assets 13,605 16,922
Real estate owned 19,833 29,744
Deferred tax asset 120,936 168,323
Other assets 175,600 117,283
Total assets $ 11,967,072 $ 10,712,377
Liabilities, Minority Interest and Stockholders' Equity
Liabilities:
Deposits $ 5,247,668 $ 5,147,945
Federal Home Loan Bank advances 3,992,344 3,490,386
Securities sold under agreements to
repurchase and federal funds purchased 1,308,600 832,286
Notes payable 220,199 115,000
Advances from borrowers for taxes
and insurance 173,294 146,634
Other liabilities 240,988 263,583
Total liabilities 11,183,093 9,995,834
Minority interest:
Preferred stock issued by
consolidated subsidiary 185,500 185,500
Stockholders' equity:
Common stock 316 316
Paid-in capital 129,286 129,286
Retained earnings 462,551 403,674
Unrealized gains (losses) on securities
available for sale, net of tax 6,326 (2,233)
Total stockholders'
equity 598,479 531,043
Total liabilities, minority interest
and stockholders' equity $ 11,967,072 $ 10,712,377
BANK UNITED CORP.
INCOME STATEMENT TREND
(dollars in thousands, except per share data)
For the Twelve Months Ended
09/30/97 09/30/96
Interest Income
Short-term interest-earning assets $ 36,240 $ 39,302
Securities 5,371 3,984
Mortgage-backed securities 104,891 128,143
Loans 652,886 627,940
Federal Home Loan Bank stock 11,320 12,943
Total interest income 810,708 812,312
Interest Expense
Deposits 262,761 272,220
Federal Home Loan Bank advances 212,558 247,093
Securities sold under agreements to
repurchase and federal funds purchased 57,335 55,112
Notes payable 13,410 10,353
Total interest expense 546,064 584,778
Net interest income 264,644 227,534
Provision for credit losses 18,107 16,469
Net interest income after
provision for credit losses 246,537 211,065
Non-Interest Income
Net gains (losses)
Sales of single family servicing
rights and single family warehouse
loans 21,182 43,074
Securities and mortgage-backed
securities 2,841 4,002
Other loans 1,128 3,189
Sale of mortgage offices 4,748 ---
Loan servicing, net (A) 32,381 30,383
Other fees and charges 21,152 15,541
Total non-interest income 83,432 96,189
Non-Interest Expense
Compensation and benefits 75,016 87,640
Occupancy 14,943 18,415
Data processing 13,712 16,196
Advertising and marketing 7,147 8,025
Amortization of intangibles(A) 4,118 6,585
SAIF deposit insurance premiums 4,797 45,690
Restructuring charges --- 10,681
Furniture and equipment 4,074 6,121
Other 48,329 40,065
Total non-interest expense 172,136 239,418
Income before income taxes,
minority interest, and
extraordinary loss 157,833 67,836
Income tax expense (benefit) 60,686 (75,765)
Income before minority interest
and extraordinary loss 97,147 143,601
Minority interest
Subsidiary preferred stock dividends 18,253 18,253
Payments in lieu of dividends --- 6,413
Income before extraordinary loss 78,894 118,935
Extraordinary loss 2,323 ---
NET INCOME $ 76,571 $118,935
Earnings per common share
Income before extraordinary loss $ 2.49 $ 3.87
Extraordinary loss 0.07 ---
Net income $ 2.42 $ 3.87
For the Quarter Ended (unaudited)
09/30/97 06/30/97 03/31/97 12/31/96 09/30/96
Interest Income
Short-term
interest-earning
assets $ 9,508 $ 9,195 $ 8,194 $ 9,343 $ 11,726
Securities 1,619 1,521 1,251 980 990
Mortgage-backed
securities 25,945 25,610 26,520 26,816 27,230
Loans 170,809 163,677 159,136 159,264 149,094
Federal Home Loan
Bank stock 2,893 2,900 2,827 2,700 2,853
Total interest
income 210,774 202,903 197,928 199,103 191,893
Interest Expense
Deposits 67,654 65,733 62,650 66,724 68,082
Federal Home Loan
Bank advances 54,857 52,399 53,378 51,924 53,367
Securities sold under
agreements to
repurchase and
federal funds
purchased 17,632 14,263 13,081 12,359 12,755
Notes payable 4,896 3,888 2,315 2,311 2,548
Total interest
expense 145,039 136,283 131,424 133,318 136,752
Net interest
income 65,735 66,620 66,504 65,785 55,141
Provision for
credit losses 3,463 3,425 4,305 6,914 6,314
Net interest
income after
provision for
credit losses 62,272 63,195 62,199 58,871 48,827
Non-Interest
Income
Net gains (losses)
Sales of single
family servicing
rights and single
family warehouse
loans 707 3,544 6,442 10,489 13,493
Securities and
mortgage-backed
securities 564 684 952 641 181
Other loans 136 56 (4) 940 1,162
Sale of mortgage
offices 750 --- 3,998 --- ---
Loan servicing,
net (A) 8,746 7,809 7,651 8,175 8,523
Other fees and
charges 6,227 5,221 4,792 4,912 4,627
Total non-interest
income 17,130 17,314 23,831 25,157 27,986
Non-Interest
Expense
Compensation and
benefits 17,815 17,901 19,325 19,975 20,733
Occupancy 3,571 3,501 3,616 4,255 4,511
Data processing 3,495 2,998 3,418 3,801 3,877
Advertising and
marketing 1,168 1,829 1,895 2,255 2,069
Amortization of
intangibles (A) 768 838 1,197 1,315 1,462
SAIF deposit
insurance
premiums 812 823 205 2,957 36,588
Restructuring
charges --- --- --- --- ---
Furniture and
equipment 873 953 1,029 1,219 1,465
Other 11,224 12,414 11,899 12,792 10,599
Total non-interest
expense 39,726 41,257 42,584 48,569 81,304
Income before
income taxes,
minority interest,
and extraordinary
loss 39,676 39,252 43,446 35,459 (4,491)
Income tax expense
(benefit) 15,187 15,086 16,780 13,633 (2,121)
Income before
minority interest
and extraordinary
loss 24,489 24,166 26,666 21,826 (2,370)
Minority interest
Subsidiary preferred
stock dividends 4,564 4,563 4,563 4,563 4,564
Payments in lieu of
dividends --- --- --- --- ---
Income before
extraordinary
loss 19,925 19,603 22,103 17,263 (6,934)
Extraordinary loss --- 2,323 --- --- ---
NET INCOME $ 19,925 $ 17,280 $ 22,103 $ 17,263 $ (6,934)
Earnings per common
share
Income before
extraordinary
loss $ 0.63 $ 0.61 $ 0.70 $ 0.55 $ (0.23)
Extraordinary
loss --- 0.07 --- --- ---
Net income $ 0.63 $ 0.54 $ 0.70 $ 0.55 $ (0.23)
(A) Reflects reclassification of amortization expense on servicing rights
from non-interest expense to non-interest income.
BANK UNITED CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
(dollars in thousands, except per share data)
For the For the
12 Months Ended Three Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
(unaudited)
Summary Income Statement
Interest income $ 810,708 $ 812,312 $ 210,774 $ 191,893
Interest expense 546,064 584,778 145,039 136,752
Net interest income 264,644 227,534 65,735 55,141
Provision for
credit losses 18,107 16,469 3,463 6,314
Loan servicing, net (A) 32,381 30,383 8,746 8,523
Gains from sales of
single family servicing
rights and single
family warehouse loans 21,182 43,074 707 13,493
Other 29,869 22,732 7,677 5,970
Non-interest income 83,432 96,189 17,130 27,986
Non-interest expenses (A) 172,136 239,418 39,726 81,304
Income before income taxes,
minority interest, and
extraordinary loss 157,833 67,836 39,676 (4,491)
Income tax expense
(benefit) 60,686 (75,765) 15,187 (2,121)
Income before minority
interest and
extraordinary loss 97,147 143,601 24,489 (2,370)
Minority interest
Subsidiary preferred
stock dividends 18,253 18,253 4,564 4,564
Payments in lieu
of dividends --- 6,413 --- ---
Income before
extraordinary loss 78,894 118,935 19,925 (6,934)
Extraordinary loss -
early extinguishment
of debt 2,323 --- --- ---
Net income $ 76,571 $ 118,935 $ 19,925 $ (6,934)
Net income applicable
to common shares $ 76,571 $ 113,327 $ 19,925 $ (6,934)
Average common shares
outstanding 31,595,596 29,259,644 31,595,596 30,440,953
Earnings per
common share $ 2.42 $ 3.87 $ 0.63 $ (0.23)
Operating earnings (B) $ 149,116 $ 114,659 $ 38,226 $ 27,823
Other Selected Data
Total assets
Period end $11,967,072 $10,712,377 $11,967,072 $10,712,377
Average $11,103,145 $11,229,431 $11,569,265 $10,830,663
Average interest-
earning assets $10,481,549 $10,817,748 $10,884,206 $10,336,458
Total deposits $ 5,247,668 $ 5,147,945 $ 5,247,668 $ 5,147,945
Stockholders' equity
Period end $ 598,479 $ 531,043 $ 598,479 $ 531,043
Average $ 567,107 $ 515,731 $ 591,497 $ 536,692
ROA (return, before
minority interest,
on average assets) 0.85% 1.28% 0.84% (0.09)%
ROCE (return on
average common equity) 13.50% 23.06% 13.34% (5.16)%
Average equity to
average assets 5.11% 4.59% 5.11% 4.96%
Dividends paid per
common share $ 0.56 $ 3.46 $ 0.14 $ ---
Selected Financial and
Other Data Excluding
Non-recurring Items (C)
Net income $ 75,970 $ 56,392 $ 19,463 $ 13,795
Net income applicable
to common shares $ 75,970 $ 53,295 $ 19,463 $ 13,392
Earnings per
common share $ 2.40 $ 1.82 $ 0.62 $ 0.44
ROA (return, before
minority interest,
on average assets) 0.85% 0.67% 0.82% 0.67%
ROCE (return on
average common equity) 13.41% 11.47% 13.04% 11.95%
(A) Reflects reclassification of amortization expense on servicing rights
from non-interest expense to non-interest income.
(B) Operating earnings represents net 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 the
non-recurring items detailed in Note (C) below.
(C) 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. In fiscal 1996,
non-recurring items were comprised of a one-time SAIF assessment
charge of $33,657 ($20,729 net of tax) recorded in Septmeber 1996, a
compensation expense of $7,820 ($4,816 net of tax), a mortgage
origination business charge of $12,537 ($7,729 net of tax), a
contractual payment to previous minority interest of $5,883, and a
tax benefit of $101,700, which were recorded in June 1996.
BANK UNITED CORP.
FINANCIAL HIGHLIGHTS TREND
(dollars in thousands, except per share data)
For the Twelve Months Ended
09/30/97 09/30/96
For the period ended
Net interest income $ 264,644 $ 227,534
Provision for credit
losses 18,107 16,469
Non-interest income (A) 83,432 96,189
Non-interest expense (A) 172,136 239,418
Net income 76,571 118,935
Net income applicable
to common shares 76,571 113,327
Operating earnings (B) 149,116 114,659
Loan fundings:
Single family 2,188,273 3,602,009
Commercial 1,492,931 891,306
Consumer 152,665 125,596
Total fundings 3,833,869 4,618,911
Common share data
Earnings per share 2.42 3.87
Dividends paid per
common share 0.56 3.46
Book value
(period end) 18.94 16.81
Tangible book value
(period end) 18.51 16.27
At period end
Assets 11,967,072 10,712,377
Securities 77,809 65,693
Mortgage-backed
securities 1,569,705 1,657,908
Loans 8,995,229 7,519,488
Allowance for
credit losses 39,174 39,660
Deposits 5,247,668 5,147,945
Borrowed funds 5,521,143 4,437,672
Minority interest 185,500 185,500
Stockholders' equity 598,479 531,043
Servicing portfolio (C) 24,518,426 13,246,848
Average balances
Assets 11,103,145 11,229,431
Stockholders' equity 567,107 515,731
Interest-earning
assets 10,481,549 10,817,748
Interest-bearing
liabilities 9,991,994 10,209,739
Average common
shares outstanding 31,595,596 29,259,644
Ratios
ROA (return, before
minority interest,
on average assets) 0.85% 1.28%
ROCE (return on
average common equity) 13.50 23.06
Net interest spread 2.26 1.78
Net yield on interest-
earning assets 2.52 2.10
Efficiency ratio (A) 49.78 73.87
Equity to assets
(period end) 5.00 4.96
Tangible capital
ratio (Bank only) 7.72 6.57
Core capital
ratio (Bank only) 7.77 6.64
Risk-based capital
ratio (Bank only) 13.18 13.09
Asset quality (period end)
Nonperforming
loans ("NPLs") $ 53,952 $ 89,643
Nonperforming
assets ("NPAs") 74,990 120,373
NPLs as a % of
total loans 0.60% 1.19%
NPAs as a % of
total assets 0.63 1.12
For the Quarter Ended (unaudited)
9/30/97 6/30/97 3/31/97 12/31/96 9/30/96
For the period ended
Net interest
income $ 65,735 $ 66,620 $ 66,504 $ 65,785 $ 55,141
Provision for
credit losses 3,463 3,425 4,305 6,914 6,314
Non-interest
income (A) 17,130 17,314 23,831 25,157 27,986
Non-interest
expense (A) 39,726 41,257 42,584 48,569 81,304
Net income 19,925 17,280 22,103 17,263 (6,934)
Net income
applicable to
common shares 19,925 17,280 22,103 17,263 (6,934)
Operating
earnings (B) 38,226 38,512 38,500 33,878 27,823
Loan fundings:
Single family 584,968 449,816 503,737 649,752 755,495
Commercial 447,183 400,255 315,852 329,641 263,209
Consumer 43,609 45,694 39,594 23,768 31,244
Total fundings 1,075,760 895,765 859,183 1,003,161 1,049,948
Common share data
Earnings per share 0.63 0.54 0.70 0.55 (0.23)
Dividends paid per
common share 0.14 0.14 0.14 0.14 ---
Book value
(period end) 18.94 18.44 18.01 17.25 16.81
Tangible book value
(period end) 18.51 17.99 17.61 16.76 16.27
At period end
Assets 11,967,072 11,439,050 11,002,625 11,059,646 10,712,377
Securities 77,809 57,353 29,200 65,451 65,693
Mortgage-backed
securities 1,569,705 1,601,857 1,525,086 1,592,184 1,657,908
Loans 8,995,229 8,271,904 8,032,142 7,957,010 7,519,488
Allowance for
credit losses 39,174 38,558 43,748 43,532 39,660
Deposits 5,247,668 5,249,888 5,065,804 4,999,286 5,147,945
Borrowed funds 5,521,143 5,031,636 4,829,455 5,013,547 4,437,672
Minority interest 185,500 185,500 185,500 185,500 185,500
Stockholders'
equity 598,479 582,676 568,897 545,148 531,043
Servicing
portfolio (C) 24,518,426 24,370,954 17,782,822 13,237,225 13,246,848
Average balances
Assets 11,569,265 11,123,510 10,944,802 10,773,922 10,830,663
Stockholders'
equity 591,497 576,803 559,571 539,406 536,692
Interest-earning
assets 10,884,206 10,458,119 10,352,385 10,230,518 10,336,458
Interest-bearing
liabilities 10,404,809 9,972,721 9,893,039 9,696,561 9,776,913
Average common shares
outstanding 31,595,596 31,595,596 31,595,596 31,595,596 30,440,953
Ratios
ROA (return, before
minority interest,
on average assets) 0.84% 0.79% 0.99% 0.80% (0.09)%
ROCE (return on average
common equity) 13.34 12.02 16.06 12.67 (5.16)
Net interest spread 2.25 2.31 2.31 2.35 1.90
Net yield on interest-
earning assets 2.49 2.56 2.55 2.63 2.20
Efficiency
ratio (A) 47.97 48.79 48.84 53.23 97.95
Equity to assets
(period end) 5.00 5.09 5.17 4.93 4.96
Tangible capital
ratio (Bank only) 7.72 7.59 6.87 6.63 6.57
Core capital
ratio (Bank only) 7.77 7.65 6.93 6.69 6.64
Risk-based capital
ratio (Bank only) 13.18 14.05 12.68 12.74 13.09
Asset quality (period end)
Nonperforming
loans ("NPLs") $ 53,952 $ 53,861 $ 88,496 $ 89,974 $ 89,643
Nonperforming
assets ("NPAs") 74,990 76,158 118,993 123,883 120,373
NPLs as a % of
total loans 0.60% 0.65% 1.10% 1.12% 1.19%
NPAs as a % of
total assets 0.63 0.67 1.08 1.12 1.12
(A) Reflects reclassification of amortization expense on servicing rights
from non-interest expense to non-interest income.
(B) Operating earnings represents net 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, as applicable. 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. In fiscal 1996, non-recurring items
were comprised of a one-time SAIF assessment charge of $33,657
($20,729 net of tax) recorded in September 1996, a compensation
expense of $7,820 ($4,816 net of tax), a mortgage origination
business charge of $12,537 ($7,729 net of tax), a contractual payment
to previous minority interests of $5,883, and a tax benefit of
$101,700, which were recorded in June 1996.
(C) Includes purchased servicing rights of $7,456,167 at September 30,
1997, $7,135,649 at June 30, 1997 and $3,497,699 at March 31, 1997,
which had not been transferred as of period end.
BANK UNITED CORP.
FINANCIAL HIGHLIGHTS TREND
(dollars in thousands, except per share data)
For the
12 Months Ended
9/30/97 9/30/96
Selected financial information,
excluding non-recurring items (A)
Net income $ 75,970 $ 56,392
Net income applicable to common shares 75,970 53,295
Earnings per share 2.40 1.82
ROA 0.85% 0.67%
ROCE 13.41 11.47
Efficiency ratio (B) 49.78 57.06
For the Quarter Ended (unaudited)
9/30/97 6/30/97 3/31/97 12/31/96 9/30/96
Net income $19,463 $19,603 $19,641 $17,263 $13,795
Net income applicable
to common shares 19,463 19,603 19,641 17,263 13,392
Earnings per share 0.62 0.61 0.62 0.55 0.44
ROA 0.82% 0.87% 0.90% 0.80% 0.67%
ROCE 13.04 13.67 14.30 12.67 11.95
Efficiency ratio (B) 47.97 48.79 48.84 53.23 56.80
(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. In fiscal
1996, non-recurring items were comprised of a one-time SAIF
assessment charge of $33,657 ($20,729 net of tax) recorded in
September 1996, a compensation expense of $7,820 ($4,816 net of tax),
a mortgage origination business charge of $12,537 ($7,729 net of
tax), a contractual payment to previous minority interests of $5,883,
and a tax benefit of $101,700, which were recorded in June 1996.
(B) Reflects reclassification of amortization expense on servicing rights
from non-interest expense to non-interest income.
SOURCE Bank United Corp.
back to topCONTACT:
Vern Stockton, Media Relations, 713-543-6920,
or Anthony J. Nocella, Investor Relations, 713-543-6575, both of
Bank United Corp.
