Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2011

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             

 

Commission File Number: 001-35039

 

BankUnited, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

27-0162450

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

14817 Oak Lane, Miami Lakes, FL

 

33016

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (305) 569-2000

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x   No   o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x   No   o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer  o

 

Accelerated filer  o

 

 

 

Non-accelerated filer  x

 

Smaller reporting company  o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o   No  x

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class

 

August 11, 2011

Common Stock, $0.01 Par Value

 

97,254,735 Shares

 

 

 



Table of Contents

 

BankUnited Inc.

 

Form 10-Q

 

For the Quarter Ended June 30, 2011

 

TABLE OF CONTENTS

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

 

 

 

ITEM 1.

Financial Statements (Unaudited)

 

 

 

 

 

Consolidated Balance Sheets

3

 

Consolidated Statements of Operations

4

 

Consolidated Statements of Cash Flows

5

 

Consolidated Statements of Stockholders’ Equity and Comprehensive Income

7

 

Notes to Consolidated Financial Statements

8

 

 

 

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

40

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

69

 

 

 

ITEM 4.

Controls and Procedures

69

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

ITEM 1.

Legal Proceedings

69

 

 

 

ITEM 1A.

Risk Factors

69

 

 

 

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

69

 

 

 

ITEM 3.

Defaults Upon Senior Securities

69

 

 

 

ITEM 4.

(Removed and Reserved)

69

 

 

 

ITEM 5.

Other Information

70

 

 

 

ITEM 6.

Exhibits

70

 

 

 

SIGNATURES

71

 

2



Table of Contents

 

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(Dollars in thousands, except per share data)

 

 

 

June 30,

 

December 31,

 

 

 

2011

 

2010

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

Non-interest bearing

 

$

34,899

 

$

44,860

 

Interest bearing

 

12,159

 

12,523

 

Due from Federal Reserve Bank

 

291,582

 

502,828

 

Federal funds sold

 

5,119

 

4,563

 

Cash and cash equivalents

 

343,759

 

564,774

 

Investment securities available for sale, at fair value (including covered securities of $255,709 and $263,568)

 

3,769,368

 

2,926,602

 

Federal Home Loan Bank stock

 

182,639

 

217,408

 

Loans held for sale

 

1,152

 

2,659

 

Loans (including covered loans of $2,923,637 and $3,396,047)

 

3,818,265

 

3,934,217

 

Allowance for loan losses

 

(56,639

)

(58,360

)

Loans, net

 

3,761,626

 

3,875,857

 

FDIC indemnification asset

 

2,252,920

 

2,667,401

 

Bank owned life insurance

 

164,794

 

207,061

 

Other real estate owned, covered by loss sharing agreements

 

141,723

 

206,680

 

Income tax receivable

 

12,584

 

10,862

 

Goodwill and other intangible assets

 

68,835

 

69,011

 

Other assets

 

147,259

 

121,245

 

Total assets

 

$

10,846,659

 

$

10,869,560

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Demand deposits:

 

 

 

 

 

Non-interest bearing

 

$

606,676

 

$

494,499

 

Interest bearing

 

410,794

 

349,985

 

Savings and money market

 

3,340,919

 

3,134,884

 

Time

 

2,466,260

 

3,184,360

 

Total deposits

 

6,824,649

 

7,163,728

 

Securities sold under agreements to repurchase

 

2,165

 

492

 

Federal Home Loan Bank advances

 

2,245,744

 

2,255,200

 

Deferred tax liability, net

 

44,235

 

4,618

 

Advance payments by borrowers for taxes and insurance

 

38,636

 

22,563

 

Other liabilities

 

214,557

 

169,451

 

Total liabilities

 

9,369,986

 

9,616,052

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common Stock, par value $0.01 per share
400,000,000 and 110,000,000 shares authorized; 97,249,874 and 92,971,850 shares issued and outstanding

 

972

 

930

 

Paid-in capital

 

1,220,782

 

950,831

 

Retained earnings

 

217,720

 

269,781

 

Accumulated other comprehensive income

 

37,199

 

31,966

 

Total stockholders’ equity

 

1,476,673

 

1,253,508

 

Total liabilities and stockholders’ equity

 

$

10,846,659

 

$

10,869,560

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

122,243

 

$

107,584

 

$

236,894

 

$

211,670

 

Interest and dividends on investment securities available for sale

 

29,237

 

31,757

 

61,786

 

61,127

 

Other

 

617

 

307

 

1,623

 

788

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

152,097

 

139,648

 

300,303

 

273,585

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on deposits

 

19,024

 

28,635

 

39,330

 

56,914

 

Interest on borrowings

 

15,751

 

14,830

 

31,324

 

27,995

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

 

34,775

 

43,465

 

70,654

 

84,909

 

 

 

 

 

 

 

 

 

 

 

Net interest income before provision for loan losses

 

117,322

 

96,183

 

229,649

 

188,676

 

(Recovery of) provision for loan losses

 

(2,892

)

17,908

 

8,564

 

26,091

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

120,214

 

78,275

 

221,085

 

162,585

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Accretion of discount on FDIC indemnification asset

 

14,873

 

36,776

 

34,443

 

91,160

 

Income from resolution of covered assets, net

 

3,076

 

58,593

 

2,366

 

94,990

 

Net gain (loss) on indemnification asset

 

11,312

 

(26,950

)

37,634

 

(49,985

)

FDIC reimbursement of costs of resolution of covered assets

 

8,241

 

7,880

 

18,741

 

14,315

 

Service charges

 

2,648

 

2,589

 

5,332

 

5,220

 

Gain (loss) on sale or exchange of investment securities available for sale

 

100

 

(2,836

)

103

 

(2,810

)

Mortgage insurance income

 

6,784

 

2,255

 

8,085

 

5,057

 

Other non-interest income

 

5,824

 

5,442

 

10,416

 

8,258

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

52,858

 

83,749

 

117,120

 

166,205

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

41,364

 

34,081

 

190,670

 

63,504

 

Occupancy and equipment

 

8,791

 

7,418

 

16,396

 

13,642

 

Impairment of other real estate owned

 

8,187

 

5,063

 

17,786

 

5,901

 

Foreclosure expense

 

6,057

 

7,932

 

10,527

 

19,375

 

(Gain) loss on sale of OREO

 

12,264

 

(1,693

)

24,474

 

(3,167

)

OREO related expense

 

2,589

 

5,086

 

6,932

 

8,886

 

Change in value of FDIC warrant

 

 

2,353

 

 

3,205

 

Deposit insurance expense

 

2,329

 

3,706

 

6,518

 

6,951

 

Professional fees

 

3,507

 

2,469

 

6,736

 

4,662

 

Telecommunications and data processing

 

3,418

 

2,746

 

6,866

 

5,736

 

Other non-interest expense

 

7,383

 

5,272

 

13,323

 

11,440

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

95,889

 

74,433

 

300,228

 

140,135

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

77,183

 

87,591

 

37,977

 

188,655

 

Provision for income taxes

 

33,188

 

36,427

 

61,642

 

76,772

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

43,995

 

$

51,164

 

$

(23,665

)

$

111,883

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share, basic and diluted (See Note 13)

 

$

0.44

 

$

0.55

 

$

(0.25

)

$

1.20

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.14

 

$

 

$

0.28

 

$

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(Dollars in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2011

 

2010

 

Cash flows from operating activities:

 

 

 

 

 

Net income (loss)

 

$

(23,665

)

$

111,883

 

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

Accretion of fair values of assets acquired and liabilities assumed

 

(226,294

)

(221,821

)

Amortization of fees, discounts and premiums, net

 

(4,203

)

(18,423

)

Provision for loan losses

 

8,564

 

26,091

 

Accretion of discount on FDIC indemnification asset

 

(34,443

)

(91,160

)

Income from resolution of covered assets

 

(2,366

)

(94,990

)

Net (gain) loss on indemnification asset

 

(37,634

)

49,985

 

Net gain on sale of loans

 

(252

)

 

Increase in cash surrender value of bank owned life insurance

 

(2,036

)

(2,366

)

Gain (loss) on sale or exchange of investment securities available for sale

 

(103

)

2,810

 

(Gain) loss on sale of other real estate owned

 

24,474

 

(3,167

)

Loss on disposal of premises and equipment

 

11

 

316

 

Stock-based compensation

 

126,195

 

532

 

Change in fair value of equity instruments classified as liabilities

 

 

13,843

 

Depreciation and amortization

 

3,108

 

1,131

 

Impairment of other real estate owned

 

17,786

 

5,901

 

Deferred income taxes

 

35,801

 

20,729

 

Proceeds from sale of loans held for sale

 

14,536

 

 

Loans originated for sale, net of repayments

 

(12,777

)

 

Realized tax benefits from equity based compensation

 

(200

)

 

Other:

 

 

 

 

 

Increase in other assets

 

(7,112

)

(24,858

)

Decrease in other liabilities

 

(2,385

)

(84,349

)

Net cash used in operating activities

 

(122,995

)

(307,913

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Increase in due to FDIC

 

 

196

 

Purchase of investment securities available for sale

 

(1,057,582

)

(1,328,419

)

Proceeds from repayments of investment securities available for sale

 

274,668

 

352,754

 

Proceeds from sale of investment securities available for sale

 

69,347

 

13,797

 

Maturities and calls of investment securities available for sale

 

 

10,000

 

Purchases of loans

 

(157,550

)

(23,718

)

Loan repayments and resolutions, net of originations

 

292,729

 

477,062

 

Proceeds from redemption of FHLB stock

 

34,769

 

 

Decrease in FDIC indemnification asset for claims filed

 

486,558

 

466,165

 

Purchase of bank owned life insurance

 

(12,500

)

 

Bank owned life insurance proceeds

 

51,406

 

 

Purchase of office properties and equipment, net

 

(17,803

)

(9,297

)

Proceeds from sale of other real estate owned

 

210,624

 

127,887

 

Net cash provided by investing activities

 

174,666

 

86,427

 

 

 

 

 

 

 

 

 

 

 

(Continued)

 

5



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(Dollars in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2011

 

2010

 

Net decrease in deposits

 

(334,405

)

(183,658

)

Additions to Federal Home Loan Bank advances

 

 

605,000

 

Repayments of Federal Home Loan Bank advances

 

 

(405,000

)

Increase (decrease) in securities sold under agreements to repurchase

 

1,673

 

(1,366

)

Settlement of FDIC warrant liability

 

(25,000

)

 

Increase in advances from borrowers for taxes and insurance

 

14,210

 

15,203

 

Issuance of common stock

 

98,620

 

2,000

 

Dividends paid

 

(27,998

)

 

Realized tax benefits from equity based compensation

 

200

 

 

Exercise of stock options

 

14

 

 

Net cash (used in) provided by financing activities

 

(272,686

)

32,179

 

Net decrease in cash and cash equivalents

 

(221,015

)

(189,307

)

Cash and cash equivalents, beginning of period

 

564,774

 

356,215

 

Cash and cash equivalents, end of period

 

$

343,759

 

$

166,908

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Interest paid on deposits and borrowings

 

$

84,754

 

$

116,832

 

Income taxes paid

 

$

26,831

 

$

161,638

 

 

 

 

 

 

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

 

 

Transfers from loans to other real estate owned

 

$

205,544

 

$

164,463

 

Dividends declared and payable

 

$

14,399

 

$

 

Unsettled securities trades

 

$

112,560

 

$

 

Receivable for proceeds of surrender of bank owned life insurance

 

$

26,243

 

$

 

Rescission of surrender of bank owned life insurance

 

$

20,846

 

$

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

6



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME - UNAUDITED

(Dollars in thousands)

 

 

 

Common stock 

 

Paid-in
capital

 

Retained
earnings

 

Accumulated
other 
comprehensive
income

 

Total stockholder’s
equity

 

Balance at December 31, 2010

 

$

930

 

$

950,831

 

$

269,781

 

$

31,966

 

$

1,253,508

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

(23,665

)

 

(23,665

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on investment securities available for sale arising during the period, net of taxes of $5,059

 

 

 

 

8,057

 

8,057

 

Reclassification adjustment for realized gains on investment securities available for sale, net of taxes of $40

 

 

 

 

(63

)

(63

)

Unrealized losses on cash flow hedges, net of taxes of $1,735

 

 

 

 

 

 

 

(2,761

)

(2,761

)

Total comprehensive income (loss)

 

 

 

 

 

(23,665

)

5,233

 

(18,432

)

Proceeds from issuance of common stock net of direct costs of $3,979

 

42

 

98,578

 

 

 

98,620

 

Dividends

 

 

 

(28,396

)

 

(28,396

)

Reclassification of PIU liability to equity

 

 

44,964

 

 

 

44,964

 

Stock based compensation

 

 

126,195

 

 

 

126,195

 

Proceeds from exercise of stock options

 

 

14

 

 

 

14

 

Tax benefits from dividend equivalents and stock options

 

 

200

 

 

 

200

 

Balance at June 30, 2011

 

$

972

 

$

1,220,782

 

$

217,720

 

$

37,199

 

$

1,476,673

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2009

 

$

928

 

$

947,032

 

$

119,046

 

$

27,254

 

$

1,094,260

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

111,883

 

 

111,883

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on investment securities available for sale arising during the period, net of taxes of $12,298

 

 

 

 

19,582

 

19,582

 

Reclassification adjustment for realized losses on investment securities available for sale, net of taxes of $1,084

 

 

 

 

1,726

 

1,726

 

Unrealized losses on cash flow hedges, net of taxes of $15,782

 

 

 

 

(25,127

)

(25,127

)

Total comprehensive income

 

 

 

 

 

111,883

 

(3,819

)

108,064

 

Capital contribution

 

2

 

1,998

 

 

 

2,000

 

Stock based compensation

 

 

532

 

 

 

532

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2010

 

$

930

 

$

949,562

 

$

230,929

 

$

23,435

 

$

1,204,856

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

7



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

Note 1   Basis of Presentation

 

BankUnited, Inc. (“BKU”) is the holding company for BankUnited (“BankUnited” or the “Bank”), a federally chartered, federally insured savings association headquartered in Miami Lakes, Florida. On May 21, 2009, BankUnited was granted a savings association charter and the newly formed bank acquired substantially all of the assets and assumed all of the non-brokered deposits and substantially all of the other liabilities of BankUnited, FSB from the Federal Deposit Insurance Corporation (“FDIC”) in a transaction referred to as the “Acquisition”.  In connection with the Acquisition, the Bank entered into loss sharing agreements with the FDIC (“Loss Sharing Agreements”) that cover single family residential mortgage loans, commercial real estate, commercial and industrial and consumer loans, certain investment securities and other real estate owned (“OREO”), collectively referred to as the “covered assets”.  Pursuant to the terms of the Loss Sharing Agreements, the covered assets are subject to a stated loss threshold whereby the FDIC will reimburse the Bank for 80% of losses of up to $4.0 billion, and 95% of losses in excess of this amount, beginning with the first dollar of loss incurred.

 

BankUnited, Inc.’s wholly owned subsidiaries include BankUnited and BankUnited Investment Services, Inc. (collectively the “Company”). BankUnited provides a full range of banking and related services to individual and corporate customers through 81 branch offices located in 13 Florida counties.

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”).  Accordingly, they do not include all of the information and footnotes required for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”) and should be read in conjunction with the Company’s consolidated financial statements and the notes thereto appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included.  Operating results for the six months ended June 30, 2011 are not necessarily indicative of the results that may be expected in future periods.

 

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and disclosures of contingent assets and liabilities. Management has made significant estimates in certain areas, such as the allowance for loan losses, the amount and timing of expected cash flows from covered assets and the FDIC indemnification asset, the valuation of OREO, the valuation of deferred tax assets, the evaluation of investment securities for other than-temporary impairment and the fair values of financial instruments.  Actual results could differ from these estimates.

 

Certain amounts for the prior period have been reclassified to conform to the current period presentation.

 

Note 2    Recent Accounting Pronouncements

 

In April 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2011-02, “A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring.”  This update clarifies existing guidance on a creditor’s evaluation of whether a restructuring constitutes a troubled debt restructuring, including clarification of a creditor’s evaluation of whether it has granted a concession and of whether a debtor is experiencing financial difficulties.  The Company is required to adopt this update for the quarter ending September 30, 2011, retrospectively to the beginning of the annual period of adoption, or January 1, 2011.  Management does not anticipate that adoption will have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

 

In April 2011, the FASB issued Accounting Standards Update 2011-03, “Reconsideration of Effective Control for Repurchase Agreements.”  This update removes from the assessment of effective control: (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

guidance related to that criterion. The update is required to be adopted prospectively by the Company for the quarter ending March 31, 2012. Management does not anticipate that adoption will have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

 

In May 2011, the FASB issued Accounting Standards Update 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”). The amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements.  Some of the amendments clarify the FASB’s intent about the application of fair value measurement requirements and others change principles or requirements for measuring fair value or disclosing information about fair value measurements. The Company is required to adopt this update prospectively for the quarter ending March 31, 2012.  This update will result in expanded disclosures in the Company’s financial statements; however, management does not anticipate that adoption will have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

 

In June 2011, the FASB issued Accounting Standards Update 2011-05, “Presentation of Comprehensive Income.”  This update provides entities with an option of presenting the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  This update eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The Company is required to adopt this update retrospectively for the quarter ending March 31, 2012.  Adoption of this update will affect the manner of presentation of the components of comprehensive income in the Company’s financial statements, but will not have an impact on the Company’s consolidated financial position, results of operations or cash flows.

 

Note 3   Acquisition Activity

 

On June 2, 2011, BKU entered into a Merger Agreement with Herald National Bank (“Herald”), a national banking association based in the New York metropolitan area (“Merger Agreement”).  The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, a to-be-formed direct, wholly-owned national bank subsidiary of BKU will merge with and into Herald, with Herald continuing as the surviving entity and a wholly-owned subsidiary of BKU. Upon completion of the merger, holders of Herald common and preferred stock will receive cash or shares of BKU common stock having a value equal to $1.35 plus the value of 0.099 shares of BKU common stock as of the effective time of the Merger. The Merger Agreement provides that the surviving bank will be merged with and into BankUnited, with BankUnited surviving, in August 2012.  Completion of the Merger is subject to various customary conditions, including, among others, (a) ratification and confirmation of the Merger Agreement by Herald shareholders, (b) effectiveness of the registration statement for the BKU common stock to be issued in the Merger and approval of the listing on the New York Stock Exchange of the BKU common stock to be issued in the Merger, (c) the absence of any law or order prohibiting the closing of the Merger and (d) receipt of required regulatory approvals.

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

Note 4   Investment Securities Available for Sale

 

Investment securities available for sale at June 30, 2011 and December 31, 2010 consisted of the following (in thousands):

 

 

 

June 30, 2011

 

 

 

Covered Securities

 

Non-Covered Securities

 

 

 

Amortized

 

Gross Unrealized

 

Fair

 

Amortized

 

Gross Unrealized

 

Fair

 

 

 

Cost

 

Gains

 

Losses

 

Value

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency and sponsored enterprise residential mortgage-backed securities

 

$

 

$

 

$

 

$

 

$

1,706,861

 

$

23,783

 

$

(295

)

$

1,730,349

 

Resecuritized real estate mortgage investment conduits (“Re-Remics”)

 

 

 

 

 

519,406

 

8,658

 

(470

)

527,594

 

Private label residential mortgage backed securities and CMO’s

 

177,242

 

52,971

 

(85

)

230,128

 

120,941

 

2,266

 

(100

)

123,107

 

Private label commercial mortgage backed securities

 

 

 

 

 

64,580

 

295

 

(97

)

64,778

 

Non mortgage asset-backed securities

 

 

 

 

 

522,243

 

7,063

 

(808

)

528,498

 

Mutual funds and preferred stocks

 

16,382

 

2,058

 

(629

)

17,811

 

227,913

 

5,544

 

(700

)

232,757

 

State and municipal obligations

 

 

 

 

 

24,036

 

202

 

(11

)

24,227

 

Small Business Administration securities

 

 

 

 

 

281,912

 

730

 

(293

)

282,349

 

Other debt securities

 

3,844

 

3,926

 

 

7,770

 

 

 

 

 

Total

 

$

197,468

 

$

58,955

 

$

(714

)

$

255,709

 

$

3,467,892

 

$

48,541

 

$

(2,774

)

$

3,513,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2010

 

 

 

Covered Securities

 

Non-Covered Securities

 

 

 

Amortized

 

Gross Unrealized

 

Fair

 

Amortized

 

Gross Unrealized

 

Fair

 

 

 

Cost

 

Gains

 

Losses

 

Value

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency and sponsored enterprise residential mortgage-backed securities

 

$

 

$

 

$

 

$

 

$

1,282,757

 

$

11,411

 

$

(3,258

)

$

1,290,910

 

Resecuritized real estate mortgage investment conduits (“Re-Remics”)

 

 

 

 

 

599,682

 

14,054

 

(1,105

)

612,631

 

Private label residential mortgage backed securities and CMO’s

 

181,337

 

61,679

 

(1,726

)

241,290

 

138,759

 

2,906

 

(35

)

141,630

 

Non mortgage asset-backed securities

 

 

 

 

 

407,158

 

1,908

 

(72

)

408,994

 

Mutual funds and preferred stocks

 

16,382

 

57

 

(922

)

15,517

 

120,107

 

3,402

 

(491

)

123,018

 

State and municipal obligations

 

 

 

 

 

22,898

 

101

 

(39

)

22,960

 

Small Business Administration securities

 

 

 

 

 

62,831

 

191

 

(131

)

62,891

 

Other debt securities

 

3,695

 

3,066

 

 

6,761

 

 

 

 

 

Total

 

$

201,414

 

$

64,802

 

$

(2,648

)

$

263,568

 

$

2,634,192

 

$

33,973

 

$

(5,131

)

$

2,663,034

 

 

At June 30, 2011, maturities of investment securities available for sale, adjusted for anticipated prepayments of mortgage-backed and other pass-through securities, are shown below (in thousands):

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

 

 

Amortized
Cost

 

Fair Value

 

 

 

 

 

 

 

Due in one year or less

 

$

724,038

 

$

745,109

 

Due after one year through five years

 

1,334,347

 

1,371,705

 

Due after five years through ten years

 

857,704

 

876,844

 

Due after ten years

 

504,976

 

525,142

 

Mutual funds and preferred stocks with no stated maturity

 

244,295

 

250,568

 

 

 

 

 

 

 

Total

 

$

3,665,360

 

$

3,769,368

 

 

The following table provides information about gains and losses on the sale and exchange of investment securities available for sale for the periods indicated (in thousands):

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Proceeds from sale of investment securities available for sale

 

$

66,401

 

$

7,717

 

$

69,347

 

$

13,797

 

 

 

 

 

 

 

 

 

 

 

Gross realized gains

 

$

102

 

$

16

 

$

106

 

$

46

 

Gross realized losses

 

(2

)

(41

)

(3

)

(45

)

Loss on exchange of securities

 

 

(2,811

)

 

(2,811

)

Net realized gain (loss)

 

$

100

 

$

(2,836

)

$

103

 

$

(2,810

)

 

During the quarter ended June 30, 2010, the Company exchanged certain non-covered trust preferred securities for preferred stock of the same issuer to achieve higher returns and more favorable tax treatment. Based on the market value of the trust preferred securities at the time of the exchange, the Company recognized a gross realized loss of $2.8 million.

 

The carrying value of securities pledged as collateral for Federal Home Loan Bank (“FHLB”) advances, public deposits, interest rate swaps, securities sold under agreements to repurchase and to secure borrowing capacity at the Federal Reserve Bank, totaled $869.8 million and $496.5 million at June 30, 2011 and December 31, 2010, respectively.

 

The following table presents the aggregate fair value and the aggregate amount by which amortized cost exceeds fair value for investment securities that are in unrealized loss positions at June 30, 2011 and December 31, 2010, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position.  At December 31, 2010, all of the securities in unrealized loss positions had been in continuous unrealized loss positions for less than twelve months (in thousands):

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

 

 

June 30, 2011

 

 

 

Less than 12 Months

 

Greater than 12 Months

 

Total

 

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

 

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency and sponsored enterprise residential mortgage backed securities

 

$

123,379

 

$

(295

)

$

 

$

 

$

123,379

 

$

(295

)

Resecuritized real estate mortgage investment conduits (“Re-Remics”)

 

43,176

 

(99

)

42,988

 

(371

)

86,164

 

(470

)

Private label residential mortgage backed securities and CMO’s

 

17,125

 

(185

)

1

 

 

17,126

 

(185

)

Private label commercial mortgage backed securities

 

13,460

 

(97

)

 

 

13,460

 

(97

)

Non mortgage asset-backed securities

 

99,611

 

(808

)

 

 

99,611

 

(808

)

Mutual funds and preferred stocks

 

84,314

 

(1,329

)

 

 

84,314

 

(1,329

)

State and municipal obligations

 

3,824

 

(11

)

 

 

3,824

 

(11

)

Small Business Administration securities

 

140,893

 

(293

)

 

 

140,893

 

(293

)

Total

 

$

525,782

 

$

(3,117

)

$

42,989

 

$

(371

)

$

568,771

 

$

(3,488

)

 

 

 

December 31, 2010

 

 

 

Less Than 12 Months

 

 

 

Fair

 

Unrealized

 

 

 

Value

 

Losses

 

 

 

 

 

 

 

U.S. Government agency and sponsored enterprise residential mortgage backed securities

 

$

486,216

 

$

(3,258

)

Resecuritized real estate mortgage investment conduits (“Re-Remics”)

 

59,408

 

(1,105

)

Private label residential mortgage backed securities and CMO’s

 

16,626

 

(1,761

)

Non mortgage asset-backed securities

 

63,802

 

(72

)

Mutual funds and preferred stocks

 

61,336

 

(1,413

)

State and municipal obligations

 

6,144

 

(39

)

Small Business Administration securities

 

24,108

 

(131

)

Total

 

$

717,640

 

$

(7,779

)

 

The Company monitors its investment securities available for sale for other than temporary impairment, or OTTI, on an individual security basis considering numerous factors including the Company’s intent to sell securities in an unrealized loss position; the likelihood that the Company will be required to sell these securities before an anticipated recovery in value; the duration and severity of impairment; the earnings performance, credit rating, asset quality, and business prospects of the issuer; changes in the rating of the security; adverse changes in the regulatory, economic or technological environment; adverse changes in general market conditions in the geographic area or industry in which the issuer operates; and factors that raise concerns about the issuer’s ability to continue as a going concern such as negative cash flows from operations, working capital deficiencies or non-compliance with statutory capital requirements or debt covenants. The relative significance of each of these factors varies depending on the circumstances related to each security.

 

None of the securities in unrealized loss positions at June 30, 2011 and December 31, 2010 were determined to be other-than-temporarily impaired. The Company does not intend to sell securities that are in unrealized loss positions and it is not more likely than not that the Company will be required to sell these securities before recovery of the amortized cost basis, which may be maturity. At June 30, 2011, forty-seven securities were in unrealized loss positions. The amount of impairment related to twelve of these securities was considered

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

insignificant, totaling approximately $24,000 and no further analysis with respect to these securities was considered necessary. The basis for concluding that impairment of the remaining securities is not other-than-temporary is further described below:

 

U.S. Government agency and sponsored enterprise mortgage backed securities and Small Business Administration securities:

 

At June 30, 2011, six U.S. Government agency and sponsored enterprise mortgage backed securities and five U.S. Small Business Administration securities were in unrealized loss positions. All of these securities had been in unrealized loss positions for less than twelve months.  The amount of impairment of each of the individual securities is less than 1% of amortized cost. The timely payment of principal and interest on these securities is explicitly or implicitly guaranteed by the U.S. Government. Given the limited severity and duration of impairment and the expectation of timely payment of principal and interest, the impairments are considered to be temporary.

 

Private label mortgage backed securities and CMO’s and Re-Remics:

 

At June 30, 2011, nine private label mortgage-backed securities and Resecuritized real estate mortgage investment conduits (“Re-Remics”) were in unrealized loss positions. These securities were assessed for OTTI using third-party developed credit and prepayment behavioral models and CUSIP level constant default rates, voluntary prepayment rates and loss severity and delinquency assumptions. The results of this evaluation were not indicative of credit losses related to any of these securities as of June 30, 2011. Two of these securities have been in unrealized loss positions for thirteen months; the amount of impairment of each of these securities is less than 2% of amortized cost.  The remaining securities have been in unrealized loss positions for less than twelve months; the amount of impairment of each of these securities is less than 5% of amortized cost.  Given the limited severity and duration of impairment and the expectation of timely recovery of outstanding principal, the impairments are considered to be temporary.

 

Private label commercial mortgage backed securities

 

At June 30, 2011, one private label commercial mortgage backed security was in an unrealized loss position.  This security had been in an unrealized loss position for one month and the amount of impairment was less than 1% of amortized cost.  The security was further assessed for OTTI using a discounted cash flow model.  The results of this analysis were not indicative of expected credit losses.  Given the limited severity and duration of impairment and the expectation of timely repayment of outstanding principal and interest, the impairment is considered to be temporary.

 

Non-mortgage asset backed securities:

 

At June 30, 2011, six non-mortgage asset backed securities were in unrealized loss positions. These securities had been in continuous unrealized loss positions for less than twelve months at June 30, 2011 and the amount of impairment was 3% or less of amortized cost basis for each of the securities. These securities were assessed for OTTI using a third-party developed credit and prepayment behavioral model and CUSIP level constant default rates, voluntary prepayment rates and loss severity and delinquency assumptions. The results of this evaluation were not indicative of credit losses related to these securities as of June 30, 2011. Given the limited severity and duration of impairment and the expectation of timely recovery of outstanding principal, the impairments are considered to be temporary.

 

Mutual funds and preferred stock:

 

At June 30, 2011, eight mutual fund and preferred stock investments were in unrealized loss positions, including two positions in mutual funds and six positions in financial institution preferred stocks. Impairment of the mutual fund positions has been driven primarily by increases in intermediate term interest rates.  These investments have been in continuous unrealized loss positions for less than twelve months at June 30, 2011 and the severity of impairment is 4% or less of cost basis. The severity of impairment of both of these positions declined during the

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

three months ended June 30, 2011.  The majority of the underlying holdings of the mutual funds are either explicitly or implicitly guaranteed by the U.S. Government.

 

The financial institution preferred stocks have been in continuous unrealized loss positions for less than three months and the severity of impairment of individual securities is less than 3% of amortized cost basis. All of the preferred stock holdings are investment grade; the issuing institutions are well capitalized and reporting positive earnings. Given the limited duration and severity of impairment, management’s evaluation of the financial condition of the preferred stock issuers, the rating of these investments and the nature of the assets underlying the mutual fund investments, these impairments are considered to be temporary.

 

Note 5   Loans and Allowance for Loan Losses

 

A significant portion of the Company’s loan portfolio consists of loans acquired in the Acquisition. These loans are covered under BankUnited’s Loss Sharing Agreements (the “covered loans”).  Non-covered loans are those originated or purchased since the Acquisition. Covered loans are further segregated between those acquired with evidence of deterioration in credit quality since origination (“Acquired Credit Impaired” or “ACI” loans) and those acquired without evidence of deterioration in credit quality since origination (“non-ACI” loans).

 

At June 30, 2011 and December 31, 2010, loans consisted of the following (dollars in thousands):

 

 

 

June 30, 2011

 

 

 

Covered Loans

 

 

 

 

 

Percent of

 

 

 

ACI

 

Non-ACI

 

Non-Covered

 

Total

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

$

2,050,099

 

$

135,970

 

$

264,365

 

$

2,450,434

 

63.4

%

Home equity loans and lines of credit

 

86,885

 

194,683

 

2,318

 

283,886

 

7.3

%

Total

 

2,136,984

 

330,653

 

266,683

 

2,734,320

 

70.7

%

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

64,964

 

4,627

 

51,949

 

121,540

 

3.1

%

Commercial real estate

 

277,295

 

33,622

 

159,736

 

470,653

 

12.2

%

Construction

 

5,159

 

 

12,076

 

17,235

 

0.4

%

Land

 

37,435

 

167

 

4,174

 

41,776

 

1.1

%

Commercial and industrial

 

32,331

 

29,286

 

354,728

 

416,345

 

10.8

%

Lease financing

 

 

 

56,136

 

56,136

 

1.5

%

Total

 

417,184

 

67,702

 

638,799

 

1,123,685

 

29.1

%

Consumer:

 

3,663

 

 

3,863

 

7,526

 

0.2

%

Total loans

 

2,557,831

 

398,355

 

909,345

 

3,865,531

 

100.0

%

Unearned discount and deferred fees and costs, net

 

 

(32,549

)

(14,717

)

(47,266

)

 

 

Loans net of discount and deferred fees and costs

 

2,557,831

 

365,806

 

894,628

 

3,818,265

 

 

 

Allowance for loan losses

 

(29,976

)

(16,123

)

(10,540

)

(56,639

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

2,527,855

 

$

349,683

 

$

884,088

 

$

3,761,626

 

 

 

 

14



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

 

 

December 31, 2010

 

 

 

Covered Loans

 

 

 

 

 

Percent of

 

 

 

ACI

 

Non-ACI

 

Non-Covered

 

Total

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

$

2,421,016

 

$

151,945

 

$

113,439

 

$

2,686,400

 

67.5

%

Home equity loans and lines of credit

 

98,599

 

206,797

 

2,255

 

307,651

 

7.7

%

Total

 

2,519,615

 

358,742

 

115,694

 

2,994,051

 

75.2

%

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

73,015

 

5,548

 

34,271

 

112,834

 

2.8

%

Commercial real estate

 

299,068

 

33,938

 

118,857

 

451,863

 

11.4

%

Construction

 

8,267

 

 

8,582

 

16,849

 

0.4

%

Land

 

48,251

 

170

 

1,873

 

50,294

 

1.3

%

Commercial and industrial

 

49,731

 

30,139

 

256,420

 

336,290

 

8.4

%

Lease financing

 

 

 

10,166

 

10,166

 

0.3

%

Total

 

478,332

 

69,795

 

430,169

 

978,296

 

24.6

%

Consumer:

 

4,403

 

 

3,056

 

7,459

 

0.2

%

Total loans

 

3,002,350

 

428,537

 

548,919

 

3,979,806

 

100.0

%

Unearned discount and deferred fees and costs, net

 

 

(34,840

)

(10,749

)

(45,589

)

 

 

Loans net of discount and deferred fees and costs

 

3,002,350

 

393,697

 

538,170

 

3,934,217

 

 

 

Allowance for loan losses

 

(39,925

)

(12,284

)

(6,151

)

(58,360

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

2,962,425

 

$

381,413

 

$

532,019

 

$

3,875,857

 

 

 

 

At June 30, 2011 and December 31, 2010, the unpaid principal balance (“UPB”) of ACI loans was $6.3 billion and $7.2 billion, respectively.

 

During the six months ended June 30, 2011 and 2010, the Company purchased one-to-four single family residential loans with UPB totaling $157.6 million and $23.7 million, respectively.

 

At June 30, 2011, the Company had pledged real estate loans with UPB of approximately $4.9 billion and carrying amounts of approximately $2.3 billion as security for Federal Home Loan Bank advances.

 

The following tables present information about the ending balance of the allowance for loan losses and related loans as of June 30, 2011 and summarize the activity in the allowance for loan losses for the three and six months ended June 30, 2011 (in thousands):

 

 

 

As of and For the Three Months Ended June 30, 2011

 

 

 

1-4 single
family
residential

 

Home equity
loans and lines
of credit

 

Multi-family

 

Commercial
real estate

 

Construction

 

Land

 

Commercial
loans and
leases

 

Consumer

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

734

 

$

19,769

 

$

5,813

 

$

11,305

 

$

2,676

 

$

4,593

 

$

16,538

 

$

129

 

$

61,557

 

Provision for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACI loans

 

 

(6,961

)

(1,366

)

5,650

 

(1,359

)

(1,525

)

(1,002

)

 

(6,563

)

Non-ACI loans

 

85

 

(113

)

(74

)

495

 

 

 

(273

)

 

120

 

Non-covered loans

 

128

 

 

54

 

790

 

92

 

155

 

2,421

 

(89

)

3,551

 

Total provision

 

213

 

(7,074

)

(1,386

)

6,935

 

(1,267

)

(1,370

)

1,146

 

(89

)

(2,892

)

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACI loans

 

 

 

(111

)

(1,101

)

 

(123

)

(47

)

 

(1,382

)

Non-ACI loans

 

 

(479

)

 

(475

)

 

 

(359

)

 

(1,313

)

Non-covered loans

 

 

 

 

 

 

 

(565

)

 

(565

)

Total charge-offs

 

 

(479

)

(111

)

(1,576

)

 

(123

)

(971

)

 

(3,260

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACI loans

 

 

 

565

 

16

 

319

 

306

 

6

 

 

1,212

 

Non-ACI loans

 

 

14

 

 

 

 

 

 

 

14

 

Non-covered loans

 

 

 

 

 

 

 

8

 

 

8

 

Total recoveries

 

 

14

 

565

 

16

 

319

 

306

 

14

 

 

1,234

 

Ending balance

 

$

947

 

$

12,230

 

$

4,881

 

$

16,680

 

$

1,728

 

$

3,406

 

$

16,727

 

$

40

 

$

56,639

 

 

15



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

June 30, 2011

 

 

 

As of and For the Six Months Ended June 30, 2011

 

 

 

1-4 single
family
residential

 

Home equity
loans and lines
of credit

 

Multi-family

 

Commercial
real estate

 

Construction

 

Land

 

Commercial
loans and
leases

 

Consumer

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

929

 

$

27,720

 

$

7,106

 

$

7,402

 

$

1,136

 

$

4,002

 

$

10,010

 

$

55

 

$

58,360

 

Provision for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACI loans

 

 

(14,799

)

(2,898

)

10,142

 

503

 

4,653

 

(320

)

 

(2,719

)

Non-ACI loans

 

314

 

470

 

(49

)

512

 

(1

)