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 September 30, 2012

 

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

 

November 2, 2012

Common Stock, $0.01 Par Value

 

94,460,463 Shares

 

 

 



Table of Contents

 

BankUnited, Inc.

 

Form 10-Q

 

For the Quarter Ended September 30, 2012

 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

 

 

ITEM 1.

Financial Statements (Unaudited)

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

3

 

Consolidated Statements of Income

 

4

 

Consolidated Statements of Comprehensive Income

 

5

 

Consolidated Statements of Cash Flows

 

6

 

Consolidated Statements of Stockholders’ Equity

 

8

 

Notes to Consolidated Financial Statements

 

9

 

 

 

 

ITEM 2.

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

 

44

 

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

 

74

 

 

 

 

ITEM 4.

Controls and Procedures

 

74

 

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

 

 

ITEM 1.

Legal Proceedings

 

76

 

 

 

 

ITEM 1A.

Risk Factors

 

76

 

 

 

 

ITEM 6.

Exhibits

 

76

 

 

 

 

SIGNATURES

 

77

 

2



Table of Contents

 

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – UNAUDITED

(In thousands, except share and per share data)

 

 

 

September 30,

 

December 31,

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

Non-interest bearing

 

$

50,642

 

$

39,894

 

Interest bearing

 

22,983

 

13,160

 

Interest bearing deposits at Federal Reserve Bank

 

270,068

 

247,488

 

Federal funds sold

 

2,950

 

3,200

 

Cash and cash equivalents

 

346,643

 

303,742

 

Investment securities available for sale, at fair value (including covered securities of $229,179 and $232,194)

 

4,783,646

 

4,181,977

 

Non-marketable equity securities

 

145,723

 

147,055

 

Loans held for sale

 

6,412

 

3,952

 

Loans (including covered loans of $2,043,635 and $2,422,811)

 

5,301,481

 

4,137,058

 

Allowance for loan and lease losses

 

(60,416

)

(48,402

)

Loans, net

 

5,241,065

 

4,088,656

 

FDIC indemnification asset

 

1,628,511

 

2,049,151

 

Bank owned life insurance

 

206,638

 

204,077

 

Other real estate owned, covered by loss sharing agreements

 

89,221

 

123,737

 

Deferred tax asset, net

 

80,957

 

19,485

 

Goodwill and other intangible assets

 

69,955

 

68,667

 

Other assets

 

149,655

 

131,539

 

Total assets

 

$

12,748,426

 

$

11,322,038

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Demand deposits:

 

 

 

 

 

Non-interest bearing

 

$

1,232,365

 

$

770,846

 

Interest bearing

 

499,917

 

453,666

 

Savings and money market

 

4,000,199

 

3,553,018

 

Time

 

2,725,382

 

2,587,184

 

Total deposits

 

8,457,863

 

7,364,714

 

Short-term borrowings

 

621

 

206

 

Federal Home Loan Bank advances and other borrowings

 

2,218,695

 

2,236,131

 

Income taxes payable

 

5,116

 

53,171

 

Advance payments by borrowers for taxes and insurance

 

44,645

 

21,838

 

Other liabilities

 

268,759

 

110,698

 

Total liabilities

 

10,995,699

 

9,786,758

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 94,472,538 and 97,700,829 shares issued and outstanding

 

945

 

977

 

Preferred stock, par value $0.01 per share, 100,000,000 shares authorized; 5,415,794 shares of Series A issued and outstanding at September 30, 2012

 

54

 

 

Paid-in capital

 

1,304,263

 

1,240,068

 

Retained earnings

 

372,542

 

276,216

 

Accumulated other comprehensive income

 

74,923

 

18,019

 

Total stockholders’ equity

 

1,752,727

 

1,535,280

 

Total liabilities and stockholders’ equity

 

$

12,748,426

 

$

11,322,038

 

 

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

 

3



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

(In thousands, except per share data)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans

 

$

137,039

 

$

133,649

 

$

415,957

 

$

370,543

 

Investment securities available for sale

 

32,149

 

28,984

 

99,247

 

90,770

 

Other

 

1,117

 

522

 

3,306

 

2,145

 

Total interest income

 

170,305

 

163,155

 

518,510

 

463,458

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

16,459

 

18,437

 

50,466

 

57,767

 

Borrowings

 

14,429

 

15,920

 

45,021

 

47,244

 

Total interest expense

 

30,888

 

34,357

 

95,487

 

105,011

 

Net interest income before provision for (recovery of) loan losses

 

139,417

 

128,798

 

423,023

 

358,447

 

Provision for (recovery of) loan losses (including $1,021, $(6,379), $1,137 and $(2,805) for covered loans)

 

6,374

 

1,252

 

17,866

 

9,816

 

Net interest income after provision for (recovery of) loan losses

 

133,043

 

127,546

 

405,157

 

348,631

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Accretion of discount on FDIC indemnification asset

 

3,432

 

10,804

 

14,513

 

45,247

 

Income from resolution of covered assets, net

 

17,517

 

4,702

 

39,602

 

7,068

 

Net gain (loss) on indemnification asset

 

(14,199

)

(777

)

(26,602

)

36,857

 

FDIC reimbursement of costs of resolution of covered assets

 

3,566

 

5,859

 

13,415

 

24,600

 

Service charges and fees

 

3,095

 

2,730

 

9,440

 

8,062

 

Gain on sale of investment securities available for sale, net

 

6,035

 

1,112

 

6,931

 

1,215

 

Mortgage insurance income

 

2,571

 

4,143

 

8,910

 

12,228

 

Investment services income

 

1,044

 

1,645

 

3,267

 

6,160

 

Other non-interest income

 

2,623

 

2,537

 

14,272

 

8,438

 

Total non-interest income

 

25,684

 

32,755

 

83,748

 

149,875

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

41,968

 

41,350

 

132,544

 

232,020

 

Occupancy and equipment

 

13,725

 

9,879

 

38,776

 

26,275

 

Impairment of other real estate owned

 

1,385

 

4,037

 

7,980

 

21,823

 

Foreclosure expense

 

3,060

 

3,859

 

9,671

 

14,386

 

(Gain) loss on sale of other real estate owned

 

(1,410

)

2,865

 

(1,499

)

27,339

 

Other real estate owned expense

 

1,756

 

2,188

 

5,193

 

9,120

 

Deposit insurance expense

 

2,040

 

134

 

5,136

 

6,652

 

Professional fees

 

3,850

 

5,468

 

11,452

 

12,204

 

Telecommunications and data processing

 

3,379

 

2,951

 

9,730

 

9,817

 

Other non-interest expense

 

7,469

 

7,021

 

25,388

 

20,344

 

Total non-interest expense

 

77,222

 

79,752

 

244,371

 

379,980

 

Income before income taxes

 

81,505

 

80,549

 

244,534

 

118,526

 

Provision for income taxes

 

31,948

 

34,996

 

95,776

 

96,638

 

Net income

 

49,557

 

45,553

 

148,758

 

21,888

 

Preferred stock dividends

 

921

 

 

2,762

 

 

Net income available to common stockholders

 

$

48,636

 

$

45,553

 

$

145,996

 

$

21,888

 

Earnings per common share, basic (see Note 2)

 

$

0.48

 

$

0.45

 

$

1.45

 

$

0.21

 

Earnings per common share, diluted (see Note 2)

 

$

0.48

 

$

0.45

 

$

1.44

 

$

0.20

 

Cash dividends declared per common share

 

$

0.17

 

$

0.14

 

$

0.51

 

$

0.42

 

 

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

 

4



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – UNAUDITED

(In thousands)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

49,557

 

$

45,553

 

$

148,758

 

$

21,888

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on investment securities available for sale:

 

 

 

 

 

 

 

 

 

Net unrealized holding gains (losses) arising during the period

 

26,888

 

(4,369

)

61,746

 

3,688

 

Reclassification adjustment for net securities gains realized in income

 

(3,707

)

(684

)

(4,257

)

(747

)

Net change in unrealized gains on securities available for sale

 

23,181

 

(5,053

)

57,489

 

2,941

 

Unrealized losses on derivative instruments:

 

 

 

 

 

 

 

 

 

Net unrealized holding loss arising during the period

 

(3,630

)

(15,131

)

(8,828

)

(23,708

)

Reclassification adjustment for net losses realized in income

 

2,786

 

2,975

 

8,243

 

8,791

 

Net change in unrealized losses on derivative instruments

 

(844

)

(12,156

)

(585

)

(14,917

)

Other comprehensive income (loss)

 

22,337

 

(17,209

)

56,904

 

(11,976

)

Comprehensive income

 

$

71,894

 

$

28,344

 

$

205,662

 

$

9,912

 

 

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

 

5



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED

(In thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

148,758

 

$

21,888

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

Accretion of fair values of assets acquired and liabilities assumed

 

(340,305

)

(351,509

)

Amortization of fees, discounts and premiums, net

 

9,966

 

(3,116

)

Provision for loan losses

 

17,866

 

9,816

 

Accretion of discount on FDIC indemnification asset

 

(14,513

)

(45,247

)

Income from resolution of covered assets, net

 

(39,602

)

(7,068

)

Net (gain) loss on indemnification asset

 

26,602

 

(36,857

)

Net gain on sale of loans

 

(698

)

(403

)

Increase in cash surrender value of bank owned life insurance

 

(2,561

)

(2,887

)

Gain on sale of investment securities available for sale

 

(6,931

)

(1,215

)

(Gain) loss on sale of other real estate owned

 

(1,499

)

27,339

 

Equity based compensation

 

20,503

 

135,744

 

Depreciation and amortization

 

10,636

 

5,333

 

Impairment of other real estate owned

 

7,980

 

21,823

 

Deferred income taxes

 

(85,191

)

34,368

 

Proceeds from sale of loans held for sale

 

32,922

 

22,095

 

Loans originated for sale, net of repayments

 

(29,975

)

(21,175

)

Realized tax benefits from dividend equivalents and equity based compensation

 

(954

)

(433

)

Gain on acquisition

 

(5,288

)

 

Other:

 

 

 

 

 

(Increase) decrease in other assets

 

(1,538

)

991

 

Increase (decrease) in other liabilities

 

(32,562

)

7,369

 

Net cash used in operating activities

 

(286,384

)

(183,144

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Net cash paid in business combination

 

(1,626

)

 

Purchase of investment securities available for sale

 

(1,017,933

)

(1,452,980

)

Proceeds from repayments of investment securities available for sale

 

478,117

 

407,595

 

Proceeds from sale of investment securities available for sale

 

256,609

 

199,843

 

Maturities and calls of investment securities available for sale

 

71,123

 

162

 

Purchase of non-marketable equity securities

 

(34,652

)

 

Proceeds from redemption of non-marketable equity securities

 

38,270

 

51,861

 

Purchases of loans

 

(501,608

)

(254,732

)

Loan originations, repayments and resolutions, net

 

(124,236

)

251,691

 

Decrease in FDIC indemnification asset for claims filed

 

408,551

 

641,900

 

Purchase of bank owned life insurance

 

 

(22,016

)

Bank owned life insurance proceeds

 

 

77,721

 

Purchase of office properties and equipment, net

 

(23,695

)

(26,640

)

Proceeds from sale of other real estate owned

 

151,089

 

282,836

 

Net cash provided by (used in) investing activities

 

(299,991

)

157,241

 

 

 

 

 

 

 

 

 

 

 

(Continued)

 

 

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

 

6



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED

(In thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

Cash flows from financing activities:

 

 

 

 

 

Net increase (decrease) in deposits

 

658,060

 

(208,941

)

Additions to Federal Home Loan Bank advances and other borrowings

 

1,470,000

 

 

Repayments of Federal Home Loan Bank advances and other borrowings

 

(1,475,388

)

 

Increase (decrease) in short-term borrowings

 

415

 

(208

)

Settlement of FDIC warrant liability

 

 

(25,000

)

Increase in advances from borrowers for taxes and insurance

 

22,203

 

22,955

 

Issuance of common stock

 

 

98,620

 

Dividends paid

 

(49,867

)

(41,914

)

Realized tax benefits from dividend equivalents and equity based compensation

 

954

 

433

 

Exercise of stock options

 

2,899

 

270

 

Net cash provided by (used in) financing activities

 

629,276

 

(153,785

)

Net increase (decrease) in cash and cash equivalents

 

42,901

 

(179,688

)

Cash and cash equivalents, beginning of period

 

303,742

 

564,774

 

Cash and cash equivalents, end of period

 

$

346,643

 

$

385,086

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Interest paid on deposits and borrowings

 

$

110,459

 

$

125,461

 

Income taxes paid

 

$

228,064

 

$

30,626

 

 

 

 

 

 

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

 

 

Transfers from loans to other real estate owned

 

$

123,054

 

$

250,308

 

Assets received in satisfaction of loans

 

$

4,772

 

$

 

Dividends declared, not paid

 

$

17,486

 

$

14,631

 

Reclassification of PIU liability to equity

 

$

 

$

44,964

 

Rescission of surrender of bank owned life insurance

 

$

 

$

20,846

 

Acquisition of assets under capital lease

 

$

555

 

$

 

Unsettled securities trades

 

$

135,713

 

$

112,731

 

Exchange of common stock for Series A preferred stock

 

$

54

 

$

 

Equity consideration issued in business combination

 

$

39,861

 

$

 

 

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

 

7



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY – UNAUDITED

(In thousands, except share data)

 

 

 

Common
Shares
Outstanding

 

Common
Stock

 

Preferred
Shares
Outstanding

 

Preferred
Stock

 

Paid-in
Capital

 

Retained
Earnings

 

Accumulated
Other
Comprehensive
Income

 

Total
Stockholders’
Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

97,700,829

 

$

977

 

 

$

 

$

1,240,068

 

$

276,216

 

$

18,019

 

$

1,535,280

 

Comprehensive income

 

 

 

 

 

 

148,758

 

56,904

 

205,662

 

Exchange of common shares for preferred shares

 

(5,415,794

)

(54

)

5,415,794

 

54

 

 

 

 

 

Equity consideration issued in acquisition

 

1,676,060

 

17

 

 

 

39,844

 

 

 

39,861

 

Dividends

 

 

 

 

 

 

(52,432

)

 

(52,432

)

Equity based compensation

 

309,548

 

3

 

 

 

20,500

 

 

 

20,503

 

Exercise of stock options

 

201,895

 

2

 

 

 

2,897

 

 

 

2,899

 

Tax benefits from dividend equivalents and equity based compensation

 

 

 

 

 

954

 

 

 

954

 

Balance at September 30, 2012

 

94,472,538

 

$

945

 

5,415,794

 

$

54

 

$

1,304,263

 

$

372,542

 

$

74,923

 

$

1,752,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2010

 

92,971,850

 

$

930

 

 

$

 

$

950,831

 

$

269,781

 

$

31,966

 

$

1,253,508

 

Comprehensive loss

 

 

 

 

 

 

21,888

 

(11,976

)

9,912

 

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

 

4,000,000

 

42

 

 

 

98,578

 

 

 

98,620

 

Dividends

 

 

 

 

 

 

(42,545

)

 

(42,545

)

Reclassification of PIU liability to equity

 

 

 

 

 

44,964

 

 

 

44,964

 

Equity based compensation

 

284,960

 

1

 

 

 

135,743

 

 

 

135,744

 

Exercise of stock options

 

26,095

 

 

 

 

270

 

 

 

270

 

Tax benefits from dividend equivalents and equity based compensation

 

 

 

 

 

433

 

 

 

433

 

Balance at September 30, 2011

 

97,282,905

 

$

973

 

 

$

 

$

1,230,819

 

$

249,124

 

$

19,990

 

$

1,500,906

 

 

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

 

8



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

Note 1   Basis of Presentation and Recent Accounting Pronouncements

 

Basis of Presentation

 

BankUnited, Inc. (“BankUnited, Inc.” or “BKU”) is a bank holding company with three wholly-owned subsidiaries: BankUnited, National Association (“BankUnited”), Herald National Bank (“Herald”), and BankUnited Investment Services, Inc. (collectively, the “Company”). BankUnited, a national banking association headquartered in Miami Lakes, Florida, provides a full range of banking and related services to individual and corporate customers through 96 branches located in 15 Florida counties. Herald is a national banking association with 2 branch locations in the New York metropolitan area.

 

On May 21, 2009, BankUnited 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 “FSB Acquisition.” In connection with the FSB Acquisition, BankUnited 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 BankUnited for 80% of losses up to $4.0 billion and 95% of losses in excess of this amount, beginning with the first dollar of loss incurred.

 

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 BKU’s Annual Report on Form 10-K for the year ended December 31, 2011 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 nine months ended September 30, 2012 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 as well as disclosures of contingent assets and liabilities. Management has made significant estimates in certain areas, such as the allowance for loan and lease 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 value of equity based compensation, the evaluation of investment securities for other than-temporary impairment and the fair values of financial instruments. Actual results could differ from these estimates.

 

The Company’s presentation of other comprehensive income has been revised retrospectively to comply with newly applicable guidance requiring that the components of net income and other comprehensive income be presented either in a single statement of comprehensive income or in two separate but consecutive statements. Previously, the components of other comprehensive income were presented in the consolidated statements of stockholders’ equity.

 

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

 

Recent Accounting Pronouncements

 

In October 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2012-06, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution. The amendments in this update clarify the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. The update provides that changes in cash flows

 

9



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

expected to be collected on the indemnification asset arising subsequent to initial recognition as a result of changes in cash flows expected to be collected on the related indemnified assets should be accounted for on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement. The Company is required to adopt this update prospectively for the quarter ending March 31, 2013. Management is currently evaluating the impact of the update on the Company’s consolidated financial position, results of operations and cash flows but does not anticipate that the impact of adoption will be material.

 

Note 2   Earnings Per Share

 

Basic earnings per common share is calculated by dividing income allocated to common stockholders for basic earnings per common share by the weighted average number of common shares outstanding for the period, reduced by average unvested stock awards. Unvested stock awards and stock option awards with non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, and participating preferred stock are considered participating securities and are included in the computation of basic earnings per common share using the two class method. Diluted earnings per common share is computed by dividing income allocated to common stockholders for basic earnings per common share, adjusted for earnings reallocated from participating securities, by the weighted average number of common shares outstanding for the period increased for the dilutive effect of unexercised stock options, warrants and unvested stock awards using the treasury stock method and by the dilutive effect of convertible preferred stock using the if-converted method.

 

The computation of basic and diluted earnings per common share is presented below (in thousands except share and per share data):

 

10



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

49,557

 

$

45,553

 

$

148,758

 

$

21,888

 

Preferred stock dividends

 

(921

)

 

(2,762

)

 

Net income available to common stockholders

 

48,636

 

45,553

 

145,996

 

21,888

 

Distributed and undistributed earnings allocated to participating securities

 

(3,536

)

(2,267

)

(10,505

)

(2,359

)

Income allocated to common stockholders for basic earnings per common share

 

$

45,100

 

$

43,286

 

$

135,491

 

$

19,529

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

94,196,429

 

97,265,095

 

94,856,763

 

96,712,972

 

Less average unvested stock awards

 

(746,934

)

(1,272,726

)

(1,184,068

)

(1,454,811

)

Weighted average shares for basic earnings per common share

 

93,449,495

 

95,992,369

 

93,672,695

 

95,258,161

 

Basic earnings per common share

 

$

0.48

 

$

0.45

 

$

1.45

 

$

0.21

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Income allocated to common stockholders for basic earnings per common share

 

$

45,100

 

$

43,286

 

$

135,491

 

$

19,529

 

Adjustment for earnings reallocated from participating securities

 

2,615

 

1

 

15

 

 

Income used in calculating diluted earnings per common share

 

$

47,715

 

$

43,287

 

$

135,506

 

$

19,529

 

Denominator:

 

 

 

 

 

 

 

 

 

Average shares for basic earnings per common share

 

93,449,495

 

95,992,369

 

93,672,695

 

95,258,161

 

Dilutive effect of stock options and preferred shares

 

5,613,427

 

93,938

 

187,582

 

137,744

 

Weighted average shares for diluted earnings per common share

 

99,062,922

 

96,086,307

 

93,860,277

 

95,395,905

 

Diluted earnings per common share

 

$

0.48

 

$

0.45

 

$

1.44

 

$

0.20

 

 

For the three and nine months ended September 30, 2012 and 2011, the following potentially dilutive securities were outstanding but excluded from the calculation of diluted earnings per common share because their inclusion would have been anti-dilutive:

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Unvested shares

 

973,322

 

1,250,832

 

973,322

 

1,250,832

 

Stock options and warrants

 

6,963,394

 

4,534,970

 

6,963,394

 

4,534,970

 

Convertible preferred shares

 

 

 

5,415,794

 

 

 

Note 3   Acquisition Activity

 

On February 29, 2012, BKU completed the acquisition of Herald for a purchase price of $65.0 million consisting of cash of $25.2 million, 1,676,060 shares of common stock valued at $38.6 million and stock options and warrants valued at $1.2 million. Common stock issued was valued at the closing price of BKU common stock at the acquisition date.  The options and warrants were valued using a Black-Scholes option pricing model. The acquisition of Herald was determined to be a business combination and was accounted for using the acquisition method of accounting; accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values at the acquisition date. The acquisition of Herald allowed the Company to expand its banking operations to the New York metropolitan area.

 

11



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

The following table summarizes the estimated fair values of assets acquired and liabilities assumed (in thousands):

 

Assets:

 

 

 

Cash and cash equivalents

 

$

23,538

 

Investment securities available for sale

 

160,971

 

Loans

 

305,954

 

Deferred tax asset, net

 

12,023

 

Intangible assets

 

1,780

 

Other assets

 

4,141

 

Total assets

 

508,407

 

Liabilities:

 

 

 

Deposits

 

435,500

 

Other liabilities

 

2,594

 

Total liabilities

 

438,094

 

Estimated fair value of net assets acquired

 

70,313

 

Consideration issued

 

65,025

 

Excess of fair value of net assets acquired over consideration issued

 

$

5,288

 

 

The Company recognized a gain of $5.3 million on the acquisition of Herald, representing the excess of the fair value of net assets acquired over the value of consideration issued. Pursuant to the terms of the merger agreement between BKU and Herald, the determination of the final purchase price was dependent on the price of BKU’s common stock for the ten trading days preceding the merger. A decline in the stock price between the execution of the agreement and consummation of the acquisition led to this gain, which is included in the consolidated statement of income line item “other non-interest income” for the nine months ended September 30, 2012. Transaction costs related to the acquisition of Herald totaled $3.2 million, of which $0.9 million and $1.3 million are included in the consolidated statement of income line item “professional fees” for the nine months ended September 30, 2012 and 2011, respectively. The results of operations of Herald have been included in the Company’s consolidated financial statements from the date of acquisition and are not material. Financial statements of Herald and pro forma financial information are not required to be presented due to the immateriality of this acquisition to the Company’s consolidated financial position and results of operations.

 

Valuation methodologies used to estimate the fair values of significant assets acquired and liabilities assumed are summarized as follows:

 

·                  Loans were valued using a discounted cash flow technique incorporating market based probability of default, loss severity given default, recovery lag and appropriately risk weighted discount rate assumptions.

·                  Investment securities were valued using the same methodologies employed to estimate the fair value of the Company’s investment securities available for sale summarized in Note 11.

·                  Demand, savings and money market deposits were valued at the amount due on demand at the valuation date.  Time deposits were valued using a discounted cash flow technique incorporating discount rates based on current market rates for deposits with similar maturities.

·                  Intangible assets consist of a core deposit intangible asset, valued using an after tax cost savings methodology.

 

The gross contractual amount receivable related to acquired loans was approximately $395.2 million at the acquisition date. The estimated amount not expected to be collected based on probability of default and loss severity given default assumptions applied in estimating fair value was $12.1 million. No loans were specifically identified as impaired at the acquisition date.

 

12



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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

Deferred tax assets and liabilities were recorded for the tax effects of differences between the tax bases of assets acquired and liabilities assumed and the fair values assigned to those assets and liabilities. The most significant component of the net deferred tax asset was an acquired net operating loss carryforward.

 

Note 4    Investment Securities Available for Sale

 

Investment securities available for sale at September 30, 2012 and December 31, 2011 consisted of the following (in thousands): 

 

 

 

September 30, 2012

 

 

 

Covered Securities

 

Non-Covered Securities

 

 

 

Amortized

 

Gross Unrealized

 

Fair

 

Amortized

 

Gross Unrealized

 

Fair

 

 

 

Cost

 

Gains

 

Losses

 

Value

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency securities

 

$

 

$

 

$

 

$

 

$

42,506

 

$

181

 

$

(1

)

$

42,686

 

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

 

 

 

 

 

1,991,320

 

67,616

 

(35

)

2,058,901

 

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

 

 

 

 

 

134,467

 

2,787

 

 

137,254

 

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

 

 

 

 

 

622,967

 

8,180

 

(1,067

)

630,080

 

Private label residential mortgage-backed securities and CMOs

 

148,857

 

57,927

 

(170

)

206,614

 

276,670

 

4,880

 

(98

)

281,452

 

Private label commercial mortgage-backed securities

 

 

 

 

 

463,914

 

20,944

 

 

484,858

 

Collateralized loan obligations

 

 

 

 

 

109,757

 

489

 

 

110,246

 

Non-mortgage asset-backed securities

 

 

 

 

 

292,189

 

5,777

 

(360

)

297,606

 

Mutual funds and preferred stocks

 

16,382

 

102

 

(510

)

15,974

 

124,961

 

8,122

 

 

133,083

 

State and municipal obligations

 

 

 

 

 

23,576

 

314

 

(4

)

23,886

 

Small Business Administration securities

 

 

 

 

 

339,698

 

5,217

 

 

344,915

 

Other debt securities

 

3,894

 

2,697

 

 

6,591

 

9,130

 

370

 

 

9,500

 

 

 

$

169,133

 

$

60,726

 

$

(680

)

$

229,179

 

$

4,431,155

 

$

124,877

 

$

(1,565

)

$

4,554,467

 

 

 

 

December 31, 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

 

$

 

$

 

$

 

$

 

$

1,952,095

 

$

34,823

 

$

(1,205

)

$

1,985,713

 

Re-Remics

 

 

 

 

 

544,924

 

4,972

 

(3,586

)

546,310

 

Private label residential mortgage-backed securities and CMO’s

 

165,385

 

44,746

 

(310

)

209,821

 

177,614

 

1,235

 

(983

)

177,866

 

Private label commercial mortgage-backed securities

 

 

 

 

 

255,868

 

6,694

 

 

262,562

 

Non-mortgage asset-backed securities

 

 

 

 

 

414,274

 

2,246

 

(5,635

)

410,885

 

Mutual funds and preferred stocks

 

16,382

 

491

 

(556

)

16,317

 

235,705

 

3,071

 

(1,276

)

237,500

 

State and municipal obligations

 

 

 

 

 

24,994

 

278

 

(2

)

25,270

 

Small Business Administration securities

 

 

 

 

 

301,109

 

2,664

 

(96

)

303,677

 

Other debt securities

 

3,868

 

2,188

 

 

6,056

 

 

 

 

 

 

 

$

185,635

 

$

47,425

 

$

(866

)

$

232,194

 

$

3,906,583

 

$

55,983

 

$

(12,783

)

$

3,949,783

 

 

At September 30, 2012, investment securities available for sale by contractual maturity, adjusted for anticipated prepayments of mortgage-backed and other pass-through securities are shown below (in thousands):

 

13



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

 

 

Amortized

 

Fair

 

 

 

Cost

 

Value

 

 

 

 

 

 

 

Due in one year or less

 

$

822,224

 

$

857,108

 

Due after one year through five years

 

1,932,985

 

2,012,376

 

Due after five years through ten years

 

1,307,818

 

1,354,308

 

Due after ten years

 

395,918

 

410,797

 

Mutual funds and preferred stocks with no stated maturity

 

141,343

 

149,057

 

 

 

$

4,600,288

 

$

4,783,646

 

 

Based on the Company’s proprietary model and prepayment assumptions, the estimated weighted average life of the investment portfolio as of September 30, 2012 was 4.2 years. The effective duration of the investment portfolio as of September 30, 2012 was 1.7 years. The model results are based on assumptions that may differ from actual results.

 

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 $1.0 billion and $1.2 billion at September 30, 2012 and December 31, 2011, respectively.

 

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

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of investment securities available for sale

 

$

117,355

 

$

130,496

 

$

256,609

 

$

199,843

 

 

 

 

 

 

 

 

 

 

 

Gross realized gains

 

$

6,035

 

$

1,114

 

$

7,229

 

$

1,220

 

Gross realized losses

 

 

(2

)

(298

)

(5

)

Net realized gain

 

$

6,035

 

$

1,112

 

$

6,931

 

$

1,215

 

 

The following tables present the aggregate fair value and the aggregate amount by which amortized cost exceeded fair value for investment securities in unrealized loss positions at September 30, 2012 and December 31, 2011, aggregated by investment category and length of time that individual securities had been in continuous unrealized loss positions (in thousands):

 

 

 

September 30, 2012

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

 

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agency securities

 

$

5,000

 

$

(1

)

$

 

$

 

$

5,000

 

$

(1

)

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

 

15,217

 

(35

)

 

 

15,217

 

(35

)

Re-Remics

 

135,659

 

(600

)

57,813

 

(467

)

193,472

 

(1,067

)

Private label residential mortgage-backed securities and CMOs

 

23,302

 

(86

)

5,594

 

(182

)

28,896

 

(268

)

Non-mortgage asset-backed securities

 

 

 

41,923

 

(360

)

41,923

 

(360

)

Mutual funds and preferred stocks

 

266

 

(316

)

15,250

 

(194

)

15,516

 

(510

)

State and municipal obligations

 

1,436

 

(4

)

 

 

1,436

 

(4

)

 

 

$

180,880

 

$

(1,042

)

$

120,580

 

$

(1,203

)

$

301,460

 

$

(2,245

)

 

14



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

 

 

December 31, 2011

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

 

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

211,168

 

$

(830

)

$

70,049

 

$

(375

)

$

281,217

 

$

(1,205

)

Re-Remics

 

254,826

 

(3,344

)

19,491

 

(242

)

274,317

 

(3,586

)

Private label residential mortgage-backed securities and CMO’s

 

114,915

 

(1,120

)

6,469

 

(173

)

121,384

 

(1,293

)

Non-mortgage asset-backed securities

 

221,904

 

(5,590

)

8,772

 

(45

)

230,676

 

(5,635

)

Mutual funds and preferred stocks

 

77,811

 

(1,371

)

14,982

 

(461

)

92,793

 

(1,832

)

State and municipal obligations

 

1,002

 

(2

)

 

 

1,002

 

(2

)

Small Business Administration securities

 

29,774

 

(96

)

 

 

29,774

 

(96

)

 

 

$

911,400

 

$

(12,353

)

$

119,763

 

$

(1,296

)

$

1,031,163

 

$

(13,649

)

 

The Company monitors its investment securities available for sale for other than temporary impairment (“OTTI”) on an individual security basis. No securities were determined to be other than temporarily impaired during the three and nine months ended September 30, 2012 and 2011. The Company does not intend to sell securities that are in significant 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 at maturity. At September 30, 2012, 42 securities were in unrealized loss positions. The amount of impairment related to 12 of these securities was considered insignificant, totaling approximately $30.2 thousand, 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 residential mortgage-backed securities:

 

At September 30, 2012, two U.S. Government agency and sponsored enterprise residential mortgage-backed securities were in unrealized loss positions. Both of these securities had been in unrealized loss positions for less than twelve months.  The amount of impairment of each of the individual securities was less than 4% 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 residential mortgage-backed securities and CMOs and Re-Remics:

 

At September 30, 2012, 19 private label residential mortgage-backed securities and 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 September 30, 2012.  The majority of these securities evidenced unrealized losses less than 2% of amortized cost and had been in unrealized loss positions for less than twelve months.  Given the generally limited duration and severity of impairment and the expectation of timely recovery of outstanding principal, the impairments are considered to be temporary.

 

Non-mortgage asset-backed securities:

 

At September 30, 2012, five non-mortgage asset-backed securities were in unrealized loss positions.  The amount of impairment of each of the individual securities was 2% or less of amortized cost. 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 September 30, 2012.  Given the limited severity of impairment and the expectation of timely recovery of outstanding principal, the impairments are considered to be temporary.

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

Mutual funds:

 

At September 30, 2012, one mutual fund investment was in an unrealized loss position and had been in a continuous unrealized loss position for 25 months. The majority of the underlying holdings of the mutual fund are either explicitly or implicitly guaranteed by the U.S. Government.  The unrealized loss related to this security is approximately 1% of its cost basis and the security has experienced a partial recovery in value over the past 2 quarters. Given the limited severity, the impairment is considered to be temporary.

 

Preferred stocks:

 

At September 30, 2012, three positions in agency preferred stock were in unrealized loss positions.  These securities traded above the Company’s cost basis during the past 3 months. Given the limited duration, this impairment is considered to be temporary.

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

Note 5    Loans and Allowance for Loan and Lease Losses

 

A significant portion of the Company’s loan portfolio consists of loans acquired in the FSB Acquisition. Substantially all of these loans are covered under BankUnited’s Loss Sharing Agreements (the “covered loans”).  Loans originated or purchased since the FSB Acquisition (“new loans”) are not covered by the Loss Sharing Agreements. Covered loans may be 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 September 30, 2012 and December 31, 2011, loans consisted of the following (dollars in thousands):

 

 

 

September 30, 2012

 

 

 

Covered Loans

 

Non-Covered Loans

 

 

 

Percent of

 

 

 

ACI

 

Non-ACI

 

ACI

 

New Loans

 

Total

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

$

1,458,170

 

$

99,795

 

$

 

$

806,440

 

$

2,364,405

 

44.4

%

Home equity loans and lines of credit

 

58,478

 

161,365

 

 

2,108

 

221,951

 

4.2

%

 

 

1,516,648

 

261,160

 

 

808,548

 

2,586,356

 

48.6

%

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

57,787

 

735

 

 

303,476

 

361,998

 

6.8

%

Commercial real estate

 

179,432

 

2,478

 

4,123

 

646,941

 

832,974

 

15.7

%

Construction

 

2,690

 

 

 

43,840

 

46,530

 

0.9

%

Land

 

16,193

 

157

 

 

27,240

 

43,590

 

0.8

%

Commercial loans and leases

 

16,031

 

14,799

 

 

1,393,979

 

1,424,809

 

26.8

%

 

 

272,133

 

18,169

 

4,123

 

2,415,476

 

2,709,901

 

51.0

%

Consumer

 

2,395

 

 

 

17,398

 

19,793

 

0.4

%

Total loans

 

1,791,176

 

279,329

 

4,123

 

3,241,422

 

5,316,050

 

100.0

%

Premiums, discounts and deferred fees and costs, net

 

 

(26,870

)

 

12,301

 

(14,569

)

 

 

Loans net of premiums, discounts, deferred fees and costs

 

1,791,176

 

252,459

 

4,123

 

3,253,723

 

5,301,481

 

 

 

Allowance for loan and lease losses

 

(9,922

)

(10,865

)

 

(39,629

)

(60,416

)

 

 

Loans, net

 

$

1,781,254

 

$

  241,594

 

$

  4,123

 

$

  3,214,094

 

$

  5,241,065

 

 

 

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

September 30, 2012

 

 

 

December 31, 2011

 

 

 

Covered Loans

 

Non-Covered Loans

 

 

 

Percent of

 

 

 

ACI

 

Non-ACI

 

ACI

 

New Loans

 

Total

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

$

1,681,866

 

$

117,992

 

$

 

$

461,431

 

$

2,261,289

 

54.1

%

Home equity loans and lines of credit

 

71,565

 

182,745

 

 

2,037

 

256,347

 

6.1

%

 

 

1,753,431

 

300,737

 

 

463,468

 

2,517,636

 

60.2

%

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

61,710

 

791

 

 

108,178

 

170,679

 

4.1

%

Commercial real estate