"This quarter was a good start to 2024, with continued improvement in the funding mix, a stable margin and strong credit performance," said
For the quarter ended
Quarterly Highlights
-
This quarter embodied strong execution on key strategic priorities:
-
The funding mix continued to improve as non-interest bearing demand deposits grew by
$404 million for the quarter endedMarch 31, 2024 . Non-brokered deposits grew by$644 million and total deposits grew by$489 million . Non-interest bearing demand deposits represented 27% of total deposits atMarch 31, 2024 , up from 26% atDecember 31, 2023 . -
Wholesale funding, including FHLB advances and brokered deposits, declined by
$1.4 billion for the quarter. -
Compared to one year ago, we have grown total deposits by
$1.3 billion and paid down FHLB advances by$3.6 billion . -
Total loans declined by
$407 million for the quarter endedMarch 31, 2024 . Strategically, the residential loan portfolio declined by$152 million . The core C&I and commercial real estate portfolios declined by$226 million . This decline was related to expected seasonality as well as some notable unexpected paydowns and the decision to exit some non-relationship shared national credits. - The net interest margin, calculated on a tax-equivalent basis, was relatively stable at 2.57% compared to 2.60% for the immediately preceding quarter.
-
Credit is favorable. The annualized net charge-off ratio for the quarter ended
March 31, 2024 was 0.02%. The NPA ratio atMarch 31, 2024 declined to 0.34%, including 0.11% related to the guaranteed portion of non-accrual SBA loans, from 0.37%, including 0.12% related to the guaranteed portion of non-accrual SBA loans atDecember 31, 2023 . -
Liquidity remains ample. Total same day available liquidity was
$14.8 billion , the available liquidity to uninsured, uncollateralized deposits ratio was 156% and an estimated 65% of our deposits were insured or collateralized atMarch 31, 2024 . -
Our capital position is robust. At
March 31, 2024 , CET1 was 11.6% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.3% atMarch 31, 2024 . The ratio of tangible common equity to tangible assets increased to 7.3% atMarch 31, 2024 .
-
The funding mix continued to improve as non-interest bearing demand deposits grew by
-
The average cost of total deposits increased by 0.22% to 3.18% for the quarter ended
March 31, 2024 from 2.96% for the immediately preceding quarter. The cost of deposits is showing signs of stabilizing; on a spot basis, the cost of total deposits was 3.17% atMarch 31, 2024 compared to 3.18% atDecember 31, 2023 . -
Our commercial real estate exposure is modest. Commercial real estate loans totaled 24% of loans at
March 31, 2024 , representing 166% of the Bank's total risk based capital. By comparison, based on call report data as ofDecember 31, 2023 (the most recent date available) for banks with between$10 billion and$100 billion in assets, the median level of CRE to total loans was 35% and the median level of CRE to total risk based capital was 225%. -
At
March 31, 2024 , the weighted average LTV of the CRE portfolio was 56.5%, the weighted average DSCR was 1.83, 57% of the portfolio was collateralized by properties located inFlorida and 26% was collateralized by properties located in theNew York tri-state area. For the office sub-segment, the weighted average LTV was 65.3%, the weighted average DSCR was 1.66, 59% was collateralized by properties inFlorida , substantially all of which was suburban, and 24% was collateralized by properties located in theNew York tri-state area. -
At
March 31, 2024 , the ratio of the ACL to loans was 0.90% compared to 0.82% atDecember 31, 2023 . The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.42% atMarch 31, 2024 and the ACL to loans ratio for CRE office loans was 2.26%. -
Non-interest expense for the quarter ended
March 31, 2024 included an additional$5.2 million related to theFDIC special assessment announced in the fourth quarter of 2023. -
The net unrealized pre-tax loss on the available for sale ("AFS") securities portfolio continued to improve, declining by
$36 million for the quarter endedMarch 31, 2024 , now representing 5% of amortized cost. The duration of our AFS securities portfolio remained short, at 1.85 as ofMarch 31, 2024 . Held to maturity securities were not significant. -
Book value and tangible book value per common share continued to grow, to
$35.31 and$34.27 , respectively, atMarch 31, 2024 , compared to$34.66 and$33.62 , respectively, atDecember 31, 2023 , and$33.34 and$32.30 , respectively, one year ago. -
The Company announced an increase of
$0.02 per share in its common stock dividend for the quarter endedMarch 31, 2024 , to$0.29 per common share, a 7% increase from the previous level of$0.27 per share.
Loans
A comparison of loan portfolio composition at the dates indicated follows (dollars in thousands):
|
|
|
|
|
||||||||
|
Core C&I and CRE sub-segments: |
|
|
|
|
|
|
|
||||
|
Non-owner occupied commercial real estate |
$ |
5,309,126 |
|
21.9 |
% |
|
$ |
5,323,241 |
|
21.6 |
% |
|
Construction and land |
|
529,645 |
|
2.2 |
% |
|
|
495,992 |
|
2.0 |
% |
|
Owner occupied commercial real estate |
|
1,916,651 |
|
7.9 |
% |
|
|
1,935,743 |
|
7.9 |
% |
|
Commercial and industrial |
|
6,745,622 |
|
27.9 |
% |
|
|
6,971,981 |
|
28.3 |
% |
|
|
|
14,501,044 |
|
59.9 |
% |
|
|
14,726,957 |
|
59.8 |
% |
|
Franchise and equipment finance |
|
347,103 |
|
1.4 |
% |
|
|
380,347 |
|
1.5 |
% |
|
Pinnacle - municipal finance |
|
864,796 |
|
3.6 |
% |
|
|
884,690 |
|
3.6 |
% |
|
Mortgage warehouse lending ("MWL") |
|
456,385 |
|
1.9 |
% |
|
|
432,663 |
|
1.8 |
% |
|
Residential |
|
8,056,972 |
|
33.2 |
% |
|
|
8,209,027 |
|
33.3 |
% |
|
|
$ |
24,226,300 |
|
100.0 |
% |
|
$ |
24,633,684 |
|
100.0 |
% |
For the quarter ended
Asset Quality and the ACL
The following table presents the ACL and related ACL coverage ratios at the dates indicated as well as net charge-off rates for the periods ended
|
|
ACL |
|
ACL to Total Loans |
|
Commercial ACL to
|
|
ACL to Non-
|
|
Net Charge-offs to
|
|
|
|
$ |
202,689 |
|
0.82 % |
|
1.29 % |
|
159.54 % |
|
0.09 % |
|
|
$ |
217,556 |
|
0.90 % |
|
1.42 % |
|
187.92 % |
|
0.02 % |
| ___________ | |
|
(1) |
Annualized for the three months ended |
|
(2) |
For purposes of this ratio, commercial loans includes the core C&I and CRE sub-segments as presented in the table above as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio. |
The ACL at
The following table summarizes the activity in the ACL for the periods indicated (in thousands):
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
Beginning balance |
$ |
202,689 |
|
|
$ |
196,063 |
|
|
$ |
147,946 |
|
|
Impact of adoption of new accounting pronouncement (ASU 2022-02) |
|
N/A |
|
|
|
N/A |
|
|
|
(1,794 |
) |
|
Balance after impact of adoption of ASU 2022-02 |
|
202,689 |
|
|
|
196,063 |
|
|
|
146,152 |
|
|
Provision |
|
15,805 |
|
|
|
16,257 |
|
|
|
17,595 |
|
|
Net charge-offs |
|
(938 |
) |
|
|
(9,631 |
) |
|
|
(4,955 |
) |
|
Ending balance |
$ |
217,556 |
|
|
$ |
202,689 |
|
|
$ |
158,792 |
|
NPAs remained low, totaling
The following table presents criticized and classified commercial loans at the dates indicated (in thousands):
|
|
|
|
|
||||||||
|
|
CRE |
|
Total
|
|
CRE |
|
Total
|
||||
|
Special mention |
$ |
139,980 |
|
$ |
357,800 |
|
$ |
97,552 |
|
$ |
319,905 |
|
Substandard - accruing |
|
577,418 |
|
|
966,129 |
|
|
390,724 |
|
|
711,266 |
|
Substandard - non-accruing |
|
12,258 |
|
|
83,511 |
|
|
13,727 |
|
|
86,903 |
|
Doubtful |
|
— |
|
|
13,822 |
|
|
— |
|
|
19,035 |
|
Total |
$ |
729,656 |
|
$ |
1,421,262 |
|
$ |
502,003 |
|
$ |
1,137,109 |
The
Net Interest Income
Net interest income for the quarter ended
The Company’s net interest margin, calculated on a tax-equivalent basis, decreased by 0.03% to 2.57% for the quarter ended
-
The tax-equivalent yield on loans increased to 5.78% for the quarter ended
March 31, 2024 , from 5.69% for the quarter endedDecember 31, 2023 . This increase reflects the origination of new loans at higher rates, paydowns of lower rate loans and balance sheet repositioning. -
The tax-equivalent yield on investment securities decreased to 5.59% for the quarter ended
March 31, 2024 , from 5.73% for the quarter endedDecember 31, 2023 . The primary driver of this decrease was routine accounting adjustments recorded in the quarter endedDecember 31, 2023 related to prepayment speeds on certain securities; these adjustments positively impacted the yield for the quarter endedDecember 31, 2023 . -
The average cost of interest bearing deposits increased to 4.21% for the quarter ended
March 31, 2024 from 4.04% for the quarter endedDecember 31, 2023 . An increase in municipal money market deposits late in the fourth quarter of 2023 and CD repricing were contributing factors. -
The average rate paid on FHLB advances decreased to 4.18% for the quarter ended
March 31, 2024 from 4.58% for the quarter endedDecember 31, 2023 , primarily due to repayment of higher rate advances.
Non-interest income and Non-interest expense
Non-interest income totaled
Non-interest expense totaled
Earnings Conference Call and Presentation
A conference call to discuss quarterly results will be held at
The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BId4ce6e266b5a4aacba55f3d701af063a. For those unable to join the live event, an archived webcast will be available on the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including (without limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as but not limited to adverse events or conditions impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended
|
CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) |
|||||||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
||||
|
Cash and due from banks: |
|
|
|
||||
|
Non-interest bearing |
$ |
13,773 |
|
|
$ |
14,945 |
|
|
Interest bearing |
|
407,443 |
|
|
|
573,338 |
|
|
Cash and cash equivalents |
|
421,216 |
|
|
|
588,283 |
|
|
Investment securities (including securities reported at fair value of |
|
8,924,959 |
|
|
|
8,877,354 |
|
|
Non-marketable equity securities |
|
252,609 |
|
|
|
310,084 |
|
|
Loans |
|
24,226,300 |
|
|
|
24,633,684 |
|
|
Allowance for credit losses |
|
(217,556 |
) |
|
|
(202,689 |
) |
|
Loans, net |
|
24,008,744 |
|
|
|
24,430,995 |
|
|
Bank owned life insurance |
|
295,970 |
|
|
|
318,459 |
|
|
Operating lease equipment, net |
|
329,025 |
|
|
|
371,909 |
|
|
|
|
77,637 |
|
|
|
77,637 |
|
|
Other assets |
|
795,494 |
|
|
|
786,886 |
|
|
Total assets |
$ |
35,105,654 |
|
|
$ |
35,761,607 |
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Liabilities: |
|
|
|
||||
|
Demand deposits: |
|
|
|
||||
|
Non-interest bearing |
$ |
7,239,604 |
|
|
$ |
6,835,236 |
|
|
Interest bearing |
|
3,549,141 |
|
|
|
3,403,539 |
|
|
Savings and money market |
|
11,122,916 |
|
|
|
11,135,708 |
|
|
Time |
|
5,115,703 |
|
|
|
5,163,995 |
|
|
Total deposits |
|
27,027,364 |
|
|
|
26,538,478 |
|
|
FHLB advances |
|
3,905,000 |
|
|
|
5,115,000 |
|
|
Notes and other borrowings |
|
708,978 |
|
|
|
708,973 |
|
|
Other liabilities |
|
823,920 |
|
|
|
821,235 |
|
|
Total liabilities |
|
32,465,262 |
|
|
|
33,183,686 |
|
|
|
|
|
|
||||
|
Commitments and contingencies |
|
|
|
||||
|
|
|
|
|
||||
|
Stockholders' equity: |
|
|
|
||||
|
Common stock, par value |
|
748 |
|
|
|
744 |
|
|
Paid-in capital |
|
286,169 |
|
|
|
283,642 |
|
|
Retained earnings |
|
2,677,403 |
|
|
|
2,650,956 |
|
|
Accumulated other comprehensive loss |
|
(323,928 |
) |
|
|
(357,421 |
) |
|
Total stockholders' equity |
|
2,640,392 |
|
|
|
2,577,921 |
|
|
Total liabilities and stockholders' equity |
$ |
35,105,654 |
|
|
$ |
35,761,607 |
|
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
Interest income: |
|
|
|
|
|
||||||
|
Loans |
$ |
347,257 |
|
$ |
346,255 |
|
$ |
308,795 |
|
||
|
Investment securities |
|
124,179 |
|
|
|
125,993 |
|
|
|
118,758 |
|
|
Other |
|
10,038 |
|
|
|
10,957 |
|
|
|
12,863 |
|
|
Total interest income |
|
481,474 |
|
|
|
483,205 |
|
|
|
440,416 |
|
|
Interest expense: |
|
|
|
|
|
||||||
|
Deposits |
|
209,998 |
|
|
|
192,833 |
|
|
|
133,630 |
|
|
Borrowings |
|
56,619 |
|
|
|
73,162 |
|
|
|
78,912 |
|
|
Total interest expense |
|
266,617 |
|
|
|
265,995 |
|
|
|
212,542 |
|
|
Net interest income before provision for credit losses |
|
214,857 |
|
|
|
217,210 |
|
|
|
227,874 |
|
|
Provision for credit losses |
|
15,285 |
|
|
|
19,253 |
|
|
|
19,788 |
|
|
Net interest income after provision for credit losses |
|
199,572 |
|
|
|
197,957 |
|
|
|
208,086 |
|
|
Non-interest income: |
|
|
|
|
|
||||||
|
Deposit service charges and fees |
|
5,499 |
|
|
|
5,386 |
|
|
|
5,545 |
|
|
Gain (loss) on investment securities, net |
|
775 |
|
|
|
617 |
|
|
|
(12,549 |
) |
|
Lease financing |
|
11,440 |
|
|
|
3,723 |
|
|
|
13,109 |
|
|
Other non-interest income |
|
9,163 |
|
|
|
7,366 |
|
|
|
10,430 |
|
|
Total non-interest income |
|
26,877 |
|
|
|
17,092 |
|
|
|
16,535 |
|
|
Non-interest expense: |
|
|
|
|
|
||||||
|
Employee compensation and benefits |
|
75,920 |
|
|
|
73,454 |
|
|
|
71,051 |
|
|
Occupancy and equipment |
|
10,569 |
|
|
|
10,610 |
|
|
|
10,802 |
|
|
Deposit insurance expense |
|
13,530 |
|
|
|
43,453 |
|
|
|
7,907 |
|
|
Professional fees |
|
2,510 |
|
|
|
5,052 |
|
|
|
2,918 |
|
|
Technology |
|
20,315 |
|
|
|
18,628 |
|
|
|
21,726 |
|
|
Depreciation of operating lease equipment |
|
9,213 |
|
|
|
10,476 |
|
|
|
11,521 |
|
|
Other non-interest expense |
|
27,183 |
|
|
|
29,190 |
|
|
|
26,855 |
|
|
Total non-interest expense |
|
159,240 |
|
|
|
190,863 |
|
|
|
152,780 |
|
|
Income before income taxes |
|
67,209 |
|
|
|
24,186 |
|
|
|
71,841 |
|
|
Provision for income taxes |
|
19,229 |
|
|
|
3,374 |
|
|
|
18,959 |
|
|
Net income |
$ |
47,980 |
|
|
$ |
20,812 |
|
|
$ |
52,882 |
|
|
Earnings per common share, basic |
$ |
0.64 |
|
|
$ |
0.27 |
|
|
$ |
0.71 |
|
|
Earnings per common share, diluted |
$ |
0.64 |
|
|
$ |
0.27 |
|
|
$ |
0.70 |
|
|
AVERAGE BALANCES AND YIELDS (Dollars in thousands) |
||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2023 |
|||||||||||||||||||||||||||
|
|
Average
|
|
Interest (1) |
|
Yield/
|
|
Average
|
|
Interest (1) |
|
Yield/
|
|
Average
|
|
Interest (1) |
|
Yield/
|
|||||||||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Loans |
$ |
24,337,440 |
$ |
350,441 |
5.78 |
% |
$ |
24,416,013 |
|
|
$ |
349,603 |
5.69 |
% |
|
$ |
24,724,296 |
$ |
312,125 |
5.10 |
% |
|||||||||||
|
Investment securities (3) |
|
8,952,453 |
|
|
|
125,025 |
|
|
5.59 |
% |
|
|
8,850,397 |
|
|
|
126,870 |
|
|
5.73 |
% |
|
|
9,672,514 |
|
|
|
119,666 |
|
|
4.95 |
% |
|
Other interest earning assets |
|
763,460 |
|
|
|
10,038 |
|
|
5.29 |
% |
|
|
801,833 |
|
|
|
10,957 |
|
|
5.42 |
% |
|
|
1,039,563 |
|
|
|
12,863 |
|
|
5.02 |
% |
|
Total interest earning assets |
|
34,053,353 |
|
|
|
485,504 |
|
|
5.72 |
% |
|
|
34,068,243 |
|
|
|
487,430 |
|
|
5.70 |
% |
|
|
35,436,373 |
|
|
|
444,654 |
|
|
5.05 |
% |
|
Allowance for credit losses |
|
(206,747 |
) |
|
|
|
|
|
|
(198,984 |
) |
|
|
|
|
|
|
(151,071 |
) |
|
|
|
|
|||||||||
|
Non-interest earning assets |
|
1,589,333 |
|
|
|
|
|
|
|
1,715,795 |
|
|
|
|
|
|
|
1,793,000 |
|
|
|
|
|
|||||||||
|
Total assets |
$ |
35,435,939 |
$ |
35,585,054 |
$ |
37,078,302 |
|
|
|
|
|
|||||||||||||||||||||
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest bearing demand deposits |
$ |
3,584,363 |
|
|
$ |
33,507 |
|
|
3.76 |
% |
|
$ |
3,433,216 |
|
|
$ |
31,978 |
|
|
3.70 |
% |
|
$ |
2,283,505 |
|
|
$ |
10,545 |
|
|
1.87 |
% |
|
Savings and money market deposits |
|
11,234,259 |
|
|
|
118,639 |
|
|
4.25 |
% |
|
|
10,287,945 |
|
|
|
104,188 |
|
|
4.02 |
% |
|
|
12,145,922 |
|
|
|
91,724 |
|
|
3.06 |
% |
|
Time deposits |
|
5,231,178 |
|
|
|
57,852 |
|
|
4.45 |
% |
|
|
5,225,756 |
|
|
|
56,667 |
|
|
4.30 |
% |
|
|
4,526,480 |
|
|
|
31,361 |
|
|
2.81 |
% |
|
Total interest bearing deposits |
|
20,049,800 |
|
|
|
209,998 |
|
|
4.21 |
% |
|
|
18,946,917 |
|
|
|
192,833 |
|
|
4.04 |
% |
|
|
18,955,907 |
|
|
|
133,630 |
|
|
2.86 |
% |
|
Federal funds purchased |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
|
|
143,580 |
|
|
|
1,611 |
|
|
4.49 |
% |
|
FHLB advances |
|
4,570,220 |
|
|
|
47,496 |
|
|
4.18 |
% |
|
|
5,545,978 |
|
|
|
64,034 |
|
|
4.58 |
% |
|
|
6,465,000 |
|
|
|
68,039 |
|
|
4.27 |
% |
|
Notes and other borrowings |
|
709,017 |
|
|
|
9,123 |
|
|
5.15 |
% |
|
|
711,073 |
|
|
|
9,128 |
|
|
5.13 |
% |
|
|
720,906 |
|
|
|
9,262 |
|
|
5.14 |
% |
|
Total interest bearing liabilities |
|
25,329,037 |
|
|
|
266,617 |
|
|
4.23 |
% |
|
|
25,203,968 |
|
|
|
265,995 |
|
|
4.19 |
% |
|
|
26,285,393 |
|
|
|
212,542 |
|
|
3.28 |
% |
|
Non-interest bearing demand deposits |
|
6,560,926 |
|
|
|
|
|
|
|
6,909,027 |
|
|
|
|
|
|
|
7,458,221 |
|
|
|
|
|
|||||||||
|
Other non-interest bearing liabilities |
|
906,266 |
|
|
|
|
|
|
|
903,099 |
|
|
|
|
|
|
|
821,419 |
|
|
|
|
|
|||||||||
|
Total liabilities |
|
32,796,229 |
|
|
|
|
|
|
|
33,016,094 |
|
|
|
|
|
|
|
34,565,033 |
|
|
|
|
|
|||||||||
|
Stockholders' equity |
|
2,639,710 |
|
|
|
|
|
|
|
2,568,960 |
|
|
|
|
|
|
|
2,513,269 |
|
|
|
|
|
|||||||||
|
Total liabilities and stockholders' equity |
$ |
35,435,939 |
|
|
|
|
|
|
$ |
35,585,054 |
|
|
|
|
|
|
$ |
37,078,302 |
|
|
|
|
|
|||||||||
|
Net interest income |
|
|
$ |
218,887 |
|
|
|
|
|
|
$ |
221,435 |
|
|
|
|
|
|
$ |
232,112 |
|
|
|
|||||||||
|
Interest rate spread |
|
|
|
|
1.49 |
% |
|
|
|
|
|
1.51 |
% |
|
|
|
|
|
1.77 |
% |
||||||||||||
|
Net interest margin |
|
|
|
|
2.57 |
% |
|
|
|
|
|
2.60 |
% |
|
|
|
|
|
2.62 |
% |
||||||||||||
| ___________ | |
|
(1) |
On a tax-equivalent basis where applicable |
|
(2) |
Annualized |
|
(3) |
At fair value except for securities held to maturity |
|
EARNINGS PER COMMON SHARE (In thousands except share and per share amounts) |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|||||||
|
Basic earnings per common share: |
|
|
|
|
|
||||||
|
Numerator: |
|
|
|
|
|
||||||
|
Net income |
$ |
47,980 |
|
|
$ |
20,812 |
|
|
$ |
52,882 |
|
|
Distributed and undistributed earnings allocated to participating securities |
|
(680 |
) |
|
|
(930 |
) |
|
|
(798 |
) |
|
Income allocated to common stockholders for basic earnings per common share |
$ |
47,300 |
|
|
$ |
19,882 |
|
|
$ |
52,084 |
|
|
Denominator: |
|
|
|
|
|
||||||
|
Weighted average common shares outstanding |
|
74,509,107 |
|
|
|
74,384,185 |
|
|
|
74,755,002 |
|
|
Less average unvested stock awards |
|
(1,127,838 |
) |
|
|
(1,130,715 |
) |
|
|
(1,193,881 |
) |
|
Weighted average shares for basic earnings per common share |
|
73,381,269 |
|
|
|
73,253,470 |
|
|
|
73,561,121 |
|
|
Basic earnings per common share |
$ |
0.64 |
|
|
$ |
0.27 |
|
|
$ |
0.71 |
|
|
Diluted earnings per common share: |
|
|
|
|
|
||||||
|
Numerator: |
|
|
|
|
|
||||||
|
Income allocated to common stockholders for basic earnings per common share |
$ |
47,300 |
|
|
$ |
19,882 |
|
|
$ |
52,084 |
|
|
Adjustment for earnings reallocated from participating securities |
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
Income used in calculating diluted earnings per common share |
$ |
47,301 |
|
|
$ |
19,882 |
|
|
$ |
52,087 |
|
|
Denominator: |
|
|
|
|
|
||||||
|
Weighted average shares for basic earnings per common share |
|
73,381,269 |
|
|
|
73,253,470 |
|
|
|
73,561,121 |
|
|
Dilutive effect of certain share-based awards |
|
255,824 |
|
|
|
203,123 |
|
|
|
447,581 |
|
|
Weighted average shares for diluted earnings per common share |
|
73,637,093 |
|
|
|
73,456,593 |
|
|
|
74,008,702 |
|
|
Diluted earnings per common share |
$ |
0.64 |
|
|
$ |
0.27 |
|
|
$ |
0.70 |
|
|
SELECTED RATIOS |
|||||||||||
|
|
At or for the Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
Financial ratios (4) |
|
|
|
|
|
||||||
|
Return on average assets |
|
0.54 |
% |
|
|
0.23 |
% |
|
|
0.58 |
% |
|
Return on average stockholders’ equity |
|
7.3 |
% |
|
|
3.2 |
% |
|
|
8.5 |
% |
|
Net interest margin (3) |
|
2.57 |
% |
|
|
2.60 |
% |
|
|
2.62 |
% |
|
Loans to deposits |
|
89.6 |
% |
|
|
92.8 |
% |
|
|
96.8 |
% |
|
Tangible book value per common share |
$ |
34.27 |
|
|
$ |
33.62 |
|
|
$ |
32.30 |
|
|
|
|
|
|
|
Asset quality ratios |
|
|
|
|
Non-performing loans to total loans (1)(5) |
0.48 % |
|
0.52 % |
|
Non-performing assets to total assets (2)(5) |
0.34 % |
|
0.37 % |
|
Allowance for credit losses to total loans |
0.90 % |
|
0.82 % |
|
Allowance for credit losses to non-performing loans (1)(5) |
187.92 % |
|
159.54 % |
|
Net charge-offs to average loans(4) |
0.02 % |
|
0.09 % |
| ___________ | |
|
(1) |
We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans. |
|
(2) |
Non-performing assets include non-performing loans, OREO and other repossessed assets. |
|
(3) |
On a tax-equivalent basis. |
|
(4) |
Annualized for the three month periods. |
|
(5) |
Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling |
|
|
|
|
|
|
Required to be
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
8.1 % |
|
9.3 % |
|
7.9 % |
|
9.1 % |
|
5.0 % |
|
Common Equity Tier 1 ("CET1") risk-based capital |
11.6 % |
|
13.4 % |
|
11.4 % |
|
13.1 % |
|
6.5 % |
|
Total risk-based capital |
13.7 % |
|
14.3 % |
|
13.4 % |
|
13.9 % |
|
10.0 % |
|
Tangible Common Equity/Tangible Assets |
7.3 % |
|
N/A |
|
7.0 % |
|
N/A |
|
N/A |
Non-GAAP Financial Measures
Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data):
|
|
|
|
|
|
|
|||
|
Total stockholders’ equity |
$ |
2,640,392 |
|
$ |
2,577,921 |
|
$ |
2,481,394 |
|
Less: goodwill and other intangible assets |
|
77,637 |
|
|
77,637 |
|
|
77,637 |
|
Tangible stockholders’ equity |
$ |
2,562,755 |
|
$ |
2,500,284 |
|
$ |
2,403,757 |
|
|
|
|
|
|
|
|||
|
Common shares issued and outstanding |
|
74,772,706 |
|
|
74,372,505 |
|
|
74,423,365 |
|
|
|
|
|
|
|
|||
|
Book value per common share |
$ |
35.31 |
|
$ |
34.66 |
|
$ |
33.34 |
|
|
|
|
|
|
|
|||
|
Tangible book value per common share |
$ |
34.27 |
|
$ |
33.62 |
|
$ |
32.30 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240417998013/en/
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