BankUnited Announces Record Earnings in Second Quarter

Apr 23, 2001, 01:00 ET from BankUnited Financial Corporation

    CORAL GABLES, Fla., April 23 /PRNewswire Interactive News Release/ --
 BankUnited Financial Corporation (Nasdaq:   BKUNA), the largest financial
 institution headquartered in Florida and parent company of BankUnited, FSB,
 today announced record net income of $4.2 million for the second quarter of
 fiscal 2001, which ended on March 31, 2001.  Basic and diluted earnings were
 $0.23 and $0.22 per share, respectively, for the second quarter versus $0.21
 per share for both basic and diluted earnings, in the corresponding period in
 the prior year.  Results from the quarters ended March 31, 2001 and 2000,
 included extraordinary after-tax gains from the purchase of the Company's
 trust preferred securities of $211,000 and $261,000, respectively.
     Net income for the first six months of fiscal 2001, after preferred stock
 dividends, was $8.0 million, compared to $7.8 million for the same period last
 year.  Basic and diluted earnings per share for the six months ended March 31,
 2001, were $0.44 and $0.42, respectively, after preferred stock dividends,
 versus $0.43 and $0.42 for both basic and diluted earnings per share for same
 period in the prior year.  Results for the six months ended March 31, 2001 and
 2000, included extraordinary after-tax gains from the purchase of the
 Company's trust preferred securities of $761,000 and $692,000, respectively.
 
     Highlights for the Quarter Ended March 31, 2001:
     * Non-interest income increased $1.4 million to $2.9 million, up 88% from
       the same prior-year period.
     * Non-interest bearing deposits grew to $76 million, up 15% from the same
       period in the prior year.
     * Money Market account balances are up 36% from the same period in the
       prior year.
     * Efficiency ratio improved to 58% from 62% in the same period in the
       prior year.
     * Book value per common share is up 8% from the same prior year period to
       $11.07.
     * Total assets reached $4.8 billion; total deposits are at $2.6 billion.
     * Yield on earning assets grew to 7.57% from 7.32% in the same period in
       the prior year.
     * Non-performing assets are low at 0.59% of total assets.
 
     Second Quarter Results Discussion
     Alfred R. Camner, Chairman and Chief Executive Officer, said, "This has
 been a very strong quarter for BankUnited, yielding our seventh record quarter
 in two years.  These record quarterly financial results significantly exceeded
 analysts' expectations.  The fact that we are achieving impressive financial
 results with such consistency following our strategic change in business focus
 makes this announcement all the more gratifying."
     Camner noted, "While we have made remarkable strides in our franchise
 expansion program and are delivering strong financial results, margin pressure
 from higher interest rate levels has restricted our earnings potential over
 this quarter and the past year.  We anticipate a much-improved position
 through the remainder of the year as we realize the benefits of recent
 interest rate reductions."
     Camner continued, "Our excellent results this quarter, as well as those
 for all quarters following BankUnited's transformation into a full-service,
 asset generating institution, continue to prove that our management
 fundamentals are sound, our associates are dedicated to sales and service, and
 our products and locations are ideally suited for the marketplace.  As
 evidence of this, in the last six months our residential and consumer
 originations reached $435 million.  Because of our success in loan generation,
 we are now selling these assets, which are in excess of our portfolio needs.
 Such sales resulted in a pretax gain of $692,000 this quarter."
 
     Non-Interest Income
     Non-interest income, excluding gains from loan sales, increased sharply by
 $0.7 million, reaching $2.2 million this quarter, up 44% from the same quarter
 in the prior year.
     Mehdi Ghomeshi, Executive Vice Chairman, stated, "We are gaining
 substantial income from the active selling of our specialized financial
 products to businesses and consumers as well as investment products sold
 through our affiliate organization BUFC Financial Services Inc.  We will carry
 on this emphasis on non-interest income generation, which we expect will
 further strengthen the organization and add to future profitability."
 
     Deposits
     Total deposits were $2.6 billion this quarter, up 8% from $2.4 billion in
 the same prior year period.  Ghomeshi noted, "We are pleased to report
 significant increases in non-interest bearing deposits, which grew to
 $75.7 million this quarter, up 15% from the same period in the prior year.
 The growth in non-interest bearing deposits directly supports BankUnited's
 strategy of developing relationship accounts that provide substantial cross-
 sell opportunities."   Ghomeshi further stated, "We have also seen growth in
 Money Market accounts which are up 36% from the same period in the prior
 year."
 
     Expense Management and Efficiency Ratio
     Non-interest expense declined this quarter to $12.8 million, down 7.2%
 from the same period in the prior year.  Ghomeshi commented, "Carefully
 managing our non-interest expense has helped us to improve our efficiency
 ratio to 58.1% as compared to 62.0%, in the same period last year.
 This improvement is particularly noteworthy given expenses related to growing
 our sales force and investing in key support technologies as well as our
 addition of 5 new banking offices since this time last year, a 17% increase in
 our office locations.  This quarter we opened our 35th banking office in
 downtown Miami's Brickell financial district "
 
     Asset Production and Portfolio Balance
     Ghomeshi commented, "Our strategy of prudent asset origination has been
 extremely successful.  Total originations of loans reached $260 million for
 this quarter and $497 million for the six-month period, which ended March 31,
 2001.  We are also pleased to report a strong increase in our consumer loan
 balance, which is up 58% from this time last year.  This growth indicates our
 ability to leverage our growing retail banking presence in our markets.  Our
 consumer loan products offer significant opportunities to deepen and retain
 profitable customer relationships.  In addition to loan balance growth in the
 consumer sector, we have grown our balances of commercial real estate loans
 and corporate loans, which are up 29% and 75%, respectively."
 
     Corporate Strategy
     Ghomeshi commented, "We are continuing to execute our strategy to return
 increasing value to our shareholders, and have grown tangible book value per
 common share to $9.49 this quarter from $8.55 for the same period last year.
 BankUnited is maintaining its strong capital position well in excess of
 regulatory requirements, with core and risk-based capital ratios of 7.4% and
 15.1%, respectively.  Assets continue to grow and reached $4.8 billion this
 quarter, from $4.3 billion in the quarter ended March 31, 2000."
     Ghomeshi concluded, "Our success at developing and delivering customer-
 focused products and services are at the core of our strong financial results
 and will continue to be our primary operational focus.  By selling products
 aimed at fulfilling our customers' full financial needs, we will build deep
 and lasting relationships and deliver increasing value to our stockholders."
 
     BankUnited, FSB is the principal subsidiary of BankUnited Financial
 Corporation and is the largest financial institution headquartered in Florida.
 It operates 35 banking offices throughout Miami-Dade, Broward, Palm Beach and
 Collier Counties.  BankUnited can additionally be accessed on the Internet at:
 www.buexpress.com.
     BankUnited Financial Corporation is traded on the NASDAQ National Market.
 Its common stock trades under the symbol BKUNA.  BankUnited Capital II Trust
 Preferred securities trade on NASDAQ under the symbol BKUNZ.  BankUnited
 Capital III Trust Preferred securities trade on the New York Stock Exchange
 under the symbol BUFPrC.
 
     Forward-Looking Statements
     This press release may contain certain forward-looking statements, which
 are based on management's expectations regarding factors that may impact the
 Company's earnings in future periods.  Factors that could cause future results
 to vary materially from current management expectations include, but are not
 limited to, general economic conditions, changes in interest rates, deposit
 flows, loan demand, real estate values and competition; changes in accounting
 principles, policies or guidelines, changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory and technological facts
 affecting the Company's operations, pricing, products and services.
 
 
     BankUnited Financial Corporation
     Three and Six Months Ended March 31, 2001, Earnings Release
 
                                          For the Three       For the Six
                                           Months Ended      Months Ended
                                            March 31,          March 31,
                                          2001     2000      2001      2000
                                                    (unaudited)
                                      (in thousands, except earnings per share)
 
     Total interest income               $80,837  $71,637  $161,373  $140,589
     Total interest expense               62,692   51,999   125,290   101,762
       Net interest income                18,145   19,638    36,083    38,827
 
     Provision for loan losses             1,600    1,000     2,800     2,200
       Net interest income after
        provision for loan losses         16,545   18,638    33,283    36,627
 
     Other income                          2,243    1,570     4,261     2,877
     Gain on sales of loans and
      mortgage-backed securities             692      ---       738       ---
       Total other income                  2,935    1,570     4,999     2,877
 
     Other expense                        12,779   13,753    25,711    26,741
       Income before income taxes,
        extraordinary item, and
        preferred stock dividends          6,701    6,455    12,571    12,763
 
     Provision for income taxes            2,529    2,635     4,937     5,214
       Income before extraordinary
        items and preferred stock
        dividends                          4,172    3,820     7,634     7,549
 
     Extraordinary items (net of tax)        211      261       761       692
       Net income before preferred
        stock dividends                    4,383    4,081     8,395     8,241
 
     Preferred stock dividends               198      198       395       395
       Net income after preferred
        stock dividends                   $4,185   $3,883    $8,000    $7,846
 
     Basic earnings per common share:
       Income before extraordinary
        items                              $0.22    $0.20     $0.39     $0.39
       Net income after preferred
        stock dividends                    $0.23    $0.21     $0.44     $0.43
 
       Weighted average common shares     18,421   18,189    18,345    18,247
 
     Diluted earnings per common share:
       Income before extraordinary
        items                              $0.21    $0.20     $0.38     $0.38
       Net income after preferred
        stock dividends                    $0.22    $0.21     $0.42     $0.42
 
       Weighted average diluted common
        shares                            19,475   18,726    19,139    18,851
 
     Return on average tangible common
      equity(1)                           9.80 %  10.19 %     9.52%    10.37%
     Return on average assets(1)          0.40 %   0.40 %     0.38%     0.41%
     Net interest yield on earning
      assets                              1.66 %   2.01 %     1.71%     2.04%
     Net interest spread                  1.49 %   1.86 %     1.53%     1.88%
     Efficiency Ratio                    58.07 %  62.04 %    59.44%    61.46%
 
     (1) Return on average assets and return on average tangible common equity
         include an extraordinary item, net of tax of $211,000 and $261,000 for
         the three months ended March 31, 2001 and 2000, and $761,000 and
         $692,000 for the six months ended March 31, 2001 and 2000,
         respectively.
 
 
     BankUnited Financial Corporation
     Three and Six Months Ended March 31, 2001, Earnings Release (continued)
                                                     As of March 31,
                                                 2001               2000
                                                       (unaudited)
                                      (in thousands, except earnings per share)
 
     Total assets                                $4,791,348         $4,267,455
     Cash and cash equivalents                     $366,758           $138,437
     Residential loans (2)                       $3,216,784         $3,254,259
     Commercial and commercial real estate
      loans                                        $313,407           $267,497
     Consumer loans                                 $78,882            $50,498
     Mortgage-backed securities (2)                $561,921           $370,500
     Total investments and mortgage-backed
      securities                                   $651,199           $402,256
     Deposits                                    $2,634,086         $2,438,580
     Borrowings                                  $1,684,627         $1,358,106
     Trust preferred securities                    $205,592           $214,593
     Stockholders' equity                          $213,649           $195,629
     Book value per common share                     $11.07             $10.24
     Tangible book value per common share             $9.49              $8.55
 
     Non-accrual loans                              $23,607            $18,025
     Restructured loans                               1,192                884
     Loans past due 90 days and still accruing          255                429
       Total non-performing loans                    25,054             19,338
     Non-accrual tax certificates                     1,673              1,731
     Real estate owned                                1,690              2,516
       Total non-performing assets                  $28,417            $23,585
 
     Allowance for loan losses                      $13,981            $13,229
     Allowance for loan losses as a
      percentage of total loans                       0.39%              0.37%
     Net Charge-offs for the three months
      ended March 31,                                  $910               $256
 
     Tangible capital ratio                            7.4%               7.9%
     Core capital ratio                                7.4%               7.9%
     Risk-based capital ratio                         15.1%              15.5%
 
     (2) For the quarter ended March 31, 2001, $136.8 million of residential
         loans were securitized.
 
 
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SOURCE BankUnited Financial Corporation
    CORAL GABLES, Fla., April 23 /PRNewswire Interactive News Release/ --
 BankUnited Financial Corporation (Nasdaq:   BKUNA), the largest financial
 institution headquartered in Florida and parent company of BankUnited, FSB,
 today announced record net income of $4.2 million for the second quarter of
 fiscal 2001, which ended on March 31, 2001.  Basic and diluted earnings were
 $0.23 and $0.22 per share, respectively, for the second quarter versus $0.21
 per share for both basic and diluted earnings, in the corresponding period in
 the prior year.  Results from the quarters ended March 31, 2001 and 2000,
 included extraordinary after-tax gains from the purchase of the Company's
 trust preferred securities of $211,000 and $261,000, respectively.
     Net income for the first six months of fiscal 2001, after preferred stock
 dividends, was $8.0 million, compared to $7.8 million for the same period last
 year.  Basic and diluted earnings per share for the six months ended March 31,
 2001, were $0.44 and $0.42, respectively, after preferred stock dividends,
 versus $0.43 and $0.42 for both basic and diluted earnings per share for same
 period in the prior year.  Results for the six months ended March 31, 2001 and
 2000, included extraordinary after-tax gains from the purchase of the
 Company's trust preferred securities of $761,000 and $692,000, respectively.
 
     Highlights for the Quarter Ended March 31, 2001:
     * Non-interest income increased $1.4 million to $2.9 million, up 88% from
       the same prior-year period.
     * Non-interest bearing deposits grew to $76 million, up 15% from the same
       period in the prior year.
     * Money Market account balances are up 36% from the same period in the
       prior year.
     * Efficiency ratio improved to 58% from 62% in the same period in the
       prior year.
     * Book value per common share is up 8% from the same prior year period to
       $11.07.
     * Total assets reached $4.8 billion; total deposits are at $2.6 billion.
     * Yield on earning assets grew to 7.57% from 7.32% in the same period in
       the prior year.
     * Non-performing assets are low at 0.59% of total assets.
 
     Second Quarter Results Discussion
     Alfred R. Camner, Chairman and Chief Executive Officer, said, "This has
 been a very strong quarter for BankUnited, yielding our seventh record quarter
 in two years.  These record quarterly financial results significantly exceeded
 analysts' expectations.  The fact that we are achieving impressive financial
 results with such consistency following our strategic change in business focus
 makes this announcement all the more gratifying."
     Camner noted, "While we have made remarkable strides in our franchise
 expansion program and are delivering strong financial results, margin pressure
 from higher interest rate levels has restricted our earnings potential over
 this quarter and the past year.  We anticipate a much-improved position
 through the remainder of the year as we realize the benefits of recent
 interest rate reductions."
     Camner continued, "Our excellent results this quarter, as well as those
 for all quarters following BankUnited's transformation into a full-service,
 asset generating institution, continue to prove that our management
 fundamentals are sound, our associates are dedicated to sales and service, and
 our products and locations are ideally suited for the marketplace.  As
 evidence of this, in the last six months our residential and consumer
 originations reached $435 million.  Because of our success in loan generation,
 we are now selling these assets, which are in excess of our portfolio needs.
 Such sales resulted in a pretax gain of $692,000 this quarter."
 
     Non-Interest Income
     Non-interest income, excluding gains from loan sales, increased sharply by
 $0.7 million, reaching $2.2 million this quarter, up 44% from the same quarter
 in the prior year.
     Mehdi Ghomeshi, Executive Vice Chairman, stated, "We are gaining
 substantial income from the active selling of our specialized financial
 products to businesses and consumers as well as investment products sold
 through our affiliate organization BUFC Financial Services Inc.  We will carry
 on this emphasis on non-interest income generation, which we expect will
 further strengthen the organization and add to future profitability."
 
     Deposits
     Total deposits were $2.6 billion this quarter, up 8% from $2.4 billion in
 the same prior year period.  Ghomeshi noted, "We are pleased to report
 significant increases in non-interest bearing deposits, which grew to
 $75.7 million this quarter, up 15% from the same period in the prior year.
 The growth in non-interest bearing deposits directly supports BankUnited's
 strategy of developing relationship accounts that provide substantial cross-
 sell opportunities."   Ghomeshi further stated, "We have also seen growth in
 Money Market accounts which are up 36% from the same period in the prior
 year."
 
     Expense Management and Efficiency Ratio
     Non-interest expense declined this quarter to $12.8 million, down 7.2%
 from the same period in the prior year.  Ghomeshi commented, "Carefully
 managing our non-interest expense has helped us to improve our efficiency
 ratio to 58.1% as compared to 62.0%, in the same period last year.
 This improvement is particularly noteworthy given expenses related to growing
 our sales force and investing in key support technologies as well as our
 addition of 5 new banking offices since this time last year, a 17% increase in
 our office locations.  This quarter we opened our 35th banking office in
 downtown Miami's Brickell financial district "
 
     Asset Production and Portfolio Balance
     Ghomeshi commented, "Our strategy of prudent asset origination has been
 extremely successful.  Total originations of loans reached $260 million for
 this quarter and $497 million for the six-month period, which ended March 31,
 2001.  We are also pleased to report a strong increase in our consumer loan
 balance, which is up 58% from this time last year.  This growth indicates our
 ability to leverage our growing retail banking presence in our markets.  Our
 consumer loan products offer significant opportunities to deepen and retain
 profitable customer relationships.  In addition to loan balance growth in the
 consumer sector, we have grown our balances of commercial real estate loans
 and corporate loans, which are up 29% and 75%, respectively."
 
     Corporate Strategy
     Ghomeshi commented, "We are continuing to execute our strategy to return
 increasing value to our shareholders, and have grown tangible book value per
 common share to $9.49 this quarter from $8.55 for the same period last year.
 BankUnited is maintaining its strong capital position well in excess of
 regulatory requirements, with core and risk-based capital ratios of 7.4% and
 15.1%, respectively.  Assets continue to grow and reached $4.8 billion this
 quarter, from $4.3 billion in the quarter ended March 31, 2000."
     Ghomeshi concluded, "Our success at developing and delivering customer-
 focused products and services are at the core of our strong financial results
 and will continue to be our primary operational focus.  By selling products
 aimed at fulfilling our customers' full financial needs, we will build deep
 and lasting relationships and deliver increasing value to our stockholders."
 
     BankUnited, FSB is the principal subsidiary of BankUnited Financial
 Corporation and is the largest financial institution headquartered in Florida.
 It operates 35 banking offices throughout Miami-Dade, Broward, Palm Beach and
 Collier Counties.  BankUnited can additionally be accessed on the Internet at:
 www.buexpress.com.
     BankUnited Financial Corporation is traded on the NASDAQ National Market.
 Its common stock trades under the symbol BKUNA.  BankUnited Capital II Trust
 Preferred securities trade on NASDAQ under the symbol BKUNZ.  BankUnited
 Capital III Trust Preferred securities trade on the New York Stock Exchange
 under the symbol BUFPrC.
 
     Forward-Looking Statements
     This press release may contain certain forward-looking statements, which
 are based on management's expectations regarding factors that may impact the
 Company's earnings in future periods.  Factors that could cause future results
 to vary materially from current management expectations include, but are not
 limited to, general economic conditions, changes in interest rates, deposit
 flows, loan demand, real estate values and competition; changes in accounting
 principles, policies or guidelines, changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory and technological facts
 affecting the Company's operations, pricing, products and services.
 
 
     BankUnited Financial Corporation
     Three and Six Months Ended March 31, 2001, Earnings Release
 
                                          For the Three       For the Six
                                           Months Ended      Months Ended
                                            March 31,          March 31,
                                          2001     2000      2001      2000
                                                    (unaudited)
                                      (in thousands, except earnings per share)
 
     Total interest income               $80,837  $71,637  $161,373  $140,589
     Total interest expense               62,692   51,999   125,290   101,762
       Net interest income                18,145   19,638    36,083    38,827
 
     Provision for loan losses             1,600    1,000     2,800     2,200
       Net interest income after
        provision for loan losses         16,545   18,638    33,283    36,627
 
     Other income                          2,243    1,570     4,261     2,877
     Gain on sales of loans and
      mortgage-backed securities             692      ---       738       ---
       Total other income                  2,935    1,570     4,999     2,877
 
     Other expense                        12,779   13,753    25,711    26,741
       Income before income taxes,
        extraordinary item, and
        preferred stock dividends          6,701    6,455    12,571    12,763
 
     Provision for income taxes            2,529    2,635     4,937     5,214
       Income before extraordinary
        items and preferred stock
        dividends                          4,172    3,820     7,634     7,549
 
     Extraordinary items (net of tax)        211      261       761       692
       Net income before preferred
        stock dividends                    4,383    4,081     8,395     8,241
 
     Preferred stock dividends               198      198       395       395
       Net income after preferred
        stock dividends                   $4,185   $3,883    $8,000    $7,846
 
     Basic earnings per common share:
       Income before extraordinary
        items                              $0.22    $0.20     $0.39     $0.39
       Net income after preferred
        stock dividends                    $0.23    $0.21     $0.44     $0.43
 
       Weighted average common shares     18,421   18,189    18,345    18,247
 
     Diluted earnings per common share:
       Income before extraordinary
        items                              $0.21    $0.20     $0.38     $0.38
       Net income after preferred
        stock dividends                    $0.22    $0.21     $0.42     $0.42
 
       Weighted average diluted common
        shares                            19,475   18,726    19,139    18,851
 
     Return on average tangible common
      equity(1)                           9.80 %  10.19 %     9.52%    10.37%
     Return on average assets(1)          0.40 %   0.40 %     0.38%     0.41%
     Net interest yield on earning
      assets                              1.66 %   2.01 %     1.71%     2.04%
     Net interest spread                  1.49 %   1.86 %     1.53%     1.88%
     Efficiency Ratio                    58.07 %  62.04 %    59.44%    61.46%
 
     (1) Return on average assets and return on average tangible common equity
         include an extraordinary item, net of tax of $211,000 and $261,000 for
         the three months ended March 31, 2001 and 2000, and $761,000 and
         $692,000 for the six months ended March 31, 2001 and 2000,
         respectively.
 
 
     BankUnited Financial Corporation
     Three and Six Months Ended March 31, 2001, Earnings Release (continued)
                                                     As of March 31,
                                                 2001               2000
                                                       (unaudited)
                                      (in thousands, except earnings per share)
 
     Total assets                                $4,791,348         $4,267,455
     Cash and cash equivalents                     $366,758           $138,437
     Residential loans (2)                       $3,216,784         $3,254,259
     Commercial and commercial real estate
      loans                                        $313,407           $267,497
     Consumer loans                                 $78,882            $50,498
     Mortgage-backed securities (2)                $561,921           $370,500
     Total investments and mortgage-backed
      securities                                   $651,199           $402,256
     Deposits                                    $2,634,086         $2,438,580
     Borrowings                                  $1,684,627         $1,358,106
     Trust preferred securities                    $205,592           $214,593
     Stockholders' equity                          $213,649           $195,629
     Book value per common share                     $11.07             $10.24
     Tangible book value per common share             $9.49              $8.55
 
     Non-accrual loans                              $23,607            $18,025
     Restructured loans                               1,192                884
     Loans past due 90 days and still accruing          255                429
       Total non-performing loans                    25,054             19,338
     Non-accrual tax certificates                     1,673              1,731
     Real estate owned                                1,690              2,516
       Total non-performing assets                  $28,417            $23,585
 
     Allowance for loan losses                      $13,981            $13,229
     Allowance for loan losses as a
      percentage of total loans                       0.39%              0.37%
     Net Charge-offs for the three months
      ended March 31,                                  $910               $256
 
     Tangible capital ratio                            7.4%               7.9%
     Core capital ratio                                7.4%               7.9%
     Risk-based capital ratio                         15.1%              15.5%
 
     (2) For the quarter ended March 31, 2001, $136.8 million of residential
         loans were securitized.
 
 
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 SOURCE  BankUnited Financial Corporation