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 March 31, 2013

 

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 x

 

Accelerated filer o

 

 

 

Non-accelerated filer o

 

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

 

May 6, 2013

Common Stock, $0.01 Par Value

 

100,470,335 Shares

 

 

 



Table of Contents

 

BankUnited, Inc.

 

Form 10-Q

 

For the Quarter Ended March 31, 2013

 

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

40

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

73

 

 

 

ITEM 4.

Controls and Procedures

73

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

ITEM 1.

Legal Proceedings

74

 

 

 

ITEM 1A.

Risk Factors

74

 

 

 

ITEM 6.

Exhibits

74

 

 

 

SIGNATURES

 

75

 

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)

 

 

 

March 31,

 

December 31,

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

Non-interest bearing

 

$

51,948

 

$

61,088

 

Interest bearing

 

21,206

 

21,507

 

Interest bearing deposits at Federal Reserve Bank

 

384,462

 

408,827

 

Federal funds sold

 

3,563

 

3,931

 

Cash and cash equivalents

 

461,179

 

495,353

 

Investment securities available for sale, at fair value (including covered securities of $224,765 and $226,505)

 

4,279,477

 

4,172,412

 

Non-marketable equity securities

 

134,821

 

133,060

 

Loans held for sale

 

2,407

 

2,129

 

Loans (including covered loans of $1,757,162 and $1,864,375)

 

5,843,841

 

5,571,739

 

Allowance for loan and lease losses

 

(61,023

)

(59,121

)

Loans, net

 

5,782,818

 

5,512,618

 

FDIC indemnification asset

 

1,400,915

 

1,457,570

 

Bank owned life insurance

 

205,308

 

207,069

 

Other real estate owned (including covered OREO of $68,423 and $76,022)

 

68,893

 

76,022

 

Deferred tax asset, net

 

54,377

 

62,274

 

Goodwill and other intangible assets

 

69,586

 

69,768

 

Other assets

 

286,149

 

187,678

 

Total assets

 

$

12,745,930

 

$

12,375,953

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Demand deposits:

 

 

 

 

 

Non-interest bearing

 

$

1,364,804

 

$

1,312,779

 

Interest bearing

 

563,525

 

542,561

 

Savings and money market

 

4,196,944

 

4,042,022

 

Time

 

2,620,150

 

2,640,711

 

Total deposits

 

8,745,423

 

8,538,073

 

Short-term borrowings

 

1,245

 

8,175

 

Federal Home Loan Bank advances

 

2,016,456

 

1,916,919

 

Other liabilities

 

139,011

 

106,106

 

Total liabilities

 

10,902,135

 

10,569,273

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 100,453,851 and 95,006,729 shares issued and outstanding

 

1,005

 

950

 

Preferred stock, par value $0.01 per share, 100,000,000 shares authorized; 5,415,794 shares of Series A issued and outstanding at December 31, 2012

 

 

54

 

Paid-in capital

 

1,312,518

 

1,308,315

 

Retained earnings

 

439,908

 

413,385

 

Accumulated other comprehensive income

 

90,364

 

83,976

 

Total stockholders’ equity

 

1,843,795

 

1,806,680

 

Total liabilities and stockholders’ equity

 

$

12,745,930

 

$

12,375,953

 

 

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 March 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

Loans

 

$

145,091

 

$

136,297

 

Investment securities available for sale

 

30,005

 

33,039

 

Other

 

1,279

 

954

 

Total interest income

 

176,375

 

170,290

 

Interest expense:

 

 

 

 

 

Deposits

 

14,881

 

16,960

 

Borrowings

 

7,707

 

15,521

 

Total interest expense

 

22,588

 

32,481

 

Net interest income before provision for loan losses

 

153,787

 

137,809

 

Provision for loan losses (including $4,800 and $1,600 for covered loans)

 

11,967

 

8,767

 

Net interest income after provision for loan losses

 

141,820

 

129,042

 

Non-interest income:

 

 

 

 

 

(Amortization) accretion of FDIC indemnification asset

 

(2,280

)

6,787

 

Income from resolution of covered assets, net

 

19,190

 

7,282

 

Net gain (loss) on indemnification asset

 

(11,687

)

134

 

FDIC reimbursement of costs of resolution of covered assets

 

2,864

 

6,516

 

Service charges and fees

 

3,342

 

3,055

 

Gain (loss) on sale of loans, net (including loss related to covered loans of $(772) for the three months ended March 31, 2013)

 

(586

)

256

 

Gain on sale of investment securities available for sale, net

 

1,686

 

16

 

Mortgage insurance income

 

271

 

3,690

 

Other non-interest income

 

5,043

 

8,662

 

Total non-interest income

 

17,843

 

36,398

 

Non-interest expense:

 

 

 

 

 

Employee compensation and benefits

 

43,075

 

46,625

 

Occupancy and equipment

 

15,042

 

11,822

 

Impairment of other real estate owned

 

1,280

 

3,547

 

(Gain) loss on sale of other real estate owned

 

(1,031

)

1,401

 

Other real estate owned expense

 

868

 

2,276

 

Foreclosure expense

 

505

 

2,719

 

Deposit insurance expense

 

1,937

 

1,150

 

Professional fees

 

5,422

 

3,649

 

Telecommunications and data processing

 

3,368

 

3,230

 

Other non-interest expense

 

10,043

 

7,699

 

Total non-interest expense

 

80,509

 

84,118

 

Income before income taxes

 

79,154

 

81,322

 

Provision for income taxes

 

30,928

 

31,050

 

Net income

 

48,226

 

50,272

 

Preferred stock dividends

 

 

921

 

Net income available to common stockholders

 

$

48,226

 

$

49,351

 

Earnings per common share, basic (see Note 2)

 

$

0.48

 

$

0.49

 

Earnings per common share, diluted (see Note 2)

 

$

0.47

 

$

0.49

 

Cash dividends declared per common share

 

$

0.21

 

$

0.17

 

 

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 March 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Net income

 

$

48,226

 

$

50,272

 

Other comprehensive income, net of tax:

 

 

 

 

 

Unrealized gains on investment securities available for sale:

 

 

 

 

 

Net unrealized holding gains arising during the period

 

6,465

 

24,615

 

Reclassification adjustment for net securities gains realized in income

 

(1,036

)

(10

)

Net change in unrealized gains on securities available for sale

 

5,429

 

24,605

 

Unrealized losses on derivative instruments:

 

 

 

 

 

Net unrealized holding loss arising during the period

 

(1,618

)

(631

)

Reclassification adjustment for net losses realized in income

 

2,577

 

2,721

 

Net change in unrealized losses on derivative instruments

 

959

 

2,090

 

Other comprehensive income

 

6,388

 

26,695

 

Comprehensive income

 

$

54,614

 

$

76,967

 

 

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)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

48,226

 

$

50,272

 

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

 

 

 

 

 

Amortization and accretion, net

 

(101,797

)

(121,512

)

Provision for loan losses

 

11,967

 

8,767

 

Income from resolution of covered assets, net

 

(19,190

)

(7,282

)

Net (gain) loss on indemnification asset

 

11,687

 

(134

)

(Gain) loss on sale of loans, net

 

586

 

(256

)

Increase in cash surrender value of bank owned life insurance

 

(612

)

(935

)

Income from life insurance proceeds

 

(409

)

 

Gain on sale of investment securities available for sale, net

 

(1,686

)

(16

)

(Gain) loss on sale of other real estate owned

 

(1,031

)

1,401

 

Equity based compensation

 

3,380

 

10,127

 

Depreciation and amortization

 

4,825

 

3,382

 

Impairment of other real estate owned

 

1,280

 

3,547

 

Deferred income taxes

 

3,849

 

(69,364

)

Proceeds from sale of loans held for sale

 

8,672

 

11,933

 

Loans originated for sale, net of repayments

 

(8,764

)

(9,919

)

Realized tax (benefits) deficiency from dividend equivalents and equity based compensation

 

66

 

(118

)

Gain on acquisition

 

 

(5,288

)

Other:

 

 

 

 

 

Increase in other assets

 

(13,572

)

(2,478

)

Increase in other liabilities

 

5,166

 

30,252

 

Net cash used in operating activities

 

(47,357

)

(97,621

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Net cash paid in business combination

 

 

(1,626

)

Purchase of investment securities available for sale

 

(389,836

)

(427,178

)

Proceeds from repayments of investment securities available for sale

 

172,694

 

135,802

 

Proceeds from sale of investment securities available for sale

 

68,019

 

5,847

 

Maturities and calls of investment securities available for sale

 

 

4,250

 

Purchase of non-marketable equity securities

 

(7,511

)

(26,700

)

Proceeds from redemption of non-marketable equity securities

 

5,750

 

 

Purchases of loans

 

(227,366

)

(165,908

)

Loan originations, repayments and resolutions, net

 

26,983

 

(25,670

)

Proceeds from sale of loans, net

 

16,731

 

 

Decrease in FDIC indemnification asset for claims filed

 

42,688

 

269,560

 

Bank owned life insurance proceeds

 

2,782

 

 

Purchase of premises and equipment, net

 

(6,595

)

(8,462

)

Acquisition of equipment under operating lease

 

(32,950

)

 

Proceeds from sale of premises and equipment

 

1,300

 

 

Proceeds from sale of other real estate owned

 

31,673

 

56,021

 

Net cash used in investing activities

 

(295,638

)

(184,064

)

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

Cash flows from financing activities:

 

 

 

 

 

Net increase in deposits

 

207,373

 

285,490

 

Additions to Federal Home Loan Bank advances

 

1,295,000

 

230,000

 

Repayments of Federal Home Loan Bank advances

 

(1,195,000

)

(230,000

)

Increase (decrease) in short-term borrowings

 

(6,930

)

10,993

 

Increase in advances from borrowers for taxes and insurance

 

7,554

 

8,169

 

Dividends paid

 

 

(14,888

)

Realized tax benefits (deficiency) from dividend equivalents and equity based compensation

 

(66

)

118

 

Exercise of stock options

 

890

 

122

 

Net cash provided by financing activities

 

308,821

 

290,004

 

Net increase (decrease) in cash and cash equivalents

 

(34,174

)

8,319

 

Cash and cash equivalents, beginning of period

 

495,353

 

303,742

 

Cash and cash equivalents, end of period

 

$

461,179

 

$

312,061

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Interest paid

 

$

23,958

 

$

37,895

 

Income taxes paid

 

$

39,030

 

$

73,095

 

 

 

 

 

 

 

Supplemental schedule of non-cash investing and financing activities:

 

 

 

 

 

Transfers from loans to other real estate owned

 

$

24,793

 

$

44,182

 

Dividends declared, not paid

 

$

21,703

 

$

17,542

 

Unsettled securities trades

 

$

51,297

 

$

 

Conversion of Series A preferred stock to common stock

 

$

54

 

$

 

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, 2012

 

95,006,729

 

$

950

 

5,415,794

 

$

54

 

$

1,308,315

 

$

413,385

 

$

83,976

 

$

1,806,680

 

Comprehensive income

 

 

 

 

 

 

48,226

 

6,388

 

54,614

 

Conversion of preferred shares to common shares

 

5,415,794

 

54

 

(5,415,794

)

(54

)

 

 

 

 

Dividends

 

 

 

 

 

 

(21,703

)

 

(21,703

)

Equity based compensation

 

 

 

 

 

3,380

 

 

 

3,380

 

Forfeiture of unvested shares

 

(13,380

)

 

 

 

 

 

 

 

Exercise of stock options

 

44,708

 

1

 

 

 

889

 

 

 

890

 

Tax deficiency from dividend equivalents and equity based compensation

 

 

 

 

 

(66

)

 

 

(66

)

Balance at March 31, 2013

 

100,453,851

 

$

1,005

 

 

$

 

$

1,312,518

 

$

439,908

 

$

90,364

 

$

1,843,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

97,700,829

 

$

977

 

 

$

 

$

1,240,068

 

$

276,216

 

$

18,019

 

$

1,535,280

 

Comprehensive income

 

 

 

 

 

 

50,272

 

26,695

 

76,967

 

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

 

 

 

 

 

 

(17,542

)

 

(17,542

)

Equity based compensation

 

27,250

 

 

 

 

10,127

 

 

 

10,127

 

Forfeiture of unvested shares

 

(16,433

)

 

 

 

 

 

 

 

Exercise of stock options

 

10,416

 

 

 

 

122

 

 

 

122

 

Tax benefits from dividend equivalents and equity based compensation

 

 

 

 

 

118

 

 

 

118

 

Balance at March 31, 2012

 

93,982,328

 

$

940

 

5,415,794

 

$

54

 

$

1,290,279

 

$

308,946

 

$

44,714

 

$

1,644,933

 

 

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

March 31, 2013

 

Note 1   Basis of Presentation and Summary of Significant Accounting Policies

 

BankUnited, Inc. (“BankUnited, Inc.” or “BKU”) is a national bank holding company with two wholly-owned subsidiaries: BankUnited, National Association (“BankUnited” or the “Bank”)  and BankUnited Investment Services, Inc. (“BUIS”), 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 97 branches located in 15 Florida counties and 2 branches located in the New York metropolitan area as of March 31, 2013. BUIS is a Florida insurance agency providing wealth management and financial planning services. The operations of BUIS have not historically been significant to the consolidated results of operations or financial position of the Company. We intend to discontinue the operations of BUIS in May 2013.

 

On February 29, 2012, BKU completed the acquisition of Herald National Bank (“Herald”), a national banking association located in the New York metropolitan area.  In March 2013, Herald was merged into BankUnited.

 

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.” Neither the Company nor the Bank had any substantive operations prior to May 21, 2009. 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 related to the covered assets 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, 2012 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 three months ended March 31, 2013 are not necessarily indicative of the results that may be expected in future periods.

 

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

 

Accounting Estimates

 

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. Actual results could differ significantly from these estimates.

 

Significant estimates include the allowance for loan and lease losses, the amount and timing of expected cash flows from covered assets and the FDIC indemnification asset, the fair values of investment securities and other financial instruments and the valuation of OREO. Management has used information provided by third party valuation specialists to assist in the determination of the fair values of investment securities and OREO.

 

Recent Accounting Pronouncements

 

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities. This update requires entities to disclose both gross information and net information about instruments and transactions eligible for offset in the statement of

 

9



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The scope of this update includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements and securities borrowing and lending arrangements. Accounting Standards Update 2013-01 clarifies certain of the provisions of Accounting Standards Update 2011-11. The Company adopted this update in the quarter ended March 31, 2013. The adopted update resulted in revised disclosures in the Company’s financial statements, but did not have an impact on the Company’s consolidated financial position, results of operations or cash flows.

 

In October 2012, the 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 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 recognized over the shorter of the expected lives of the related assets or the contractual term of the indemnification agreement. The requirements of the update are consistent with the Company’s existing accounting policy; therefore, adoption of this update in the quarter ended March 31, 2013 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows.

 

In February 2013, the FASB issued Accounting Standards Update 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income.  The Company adopted this update in the quarter ended March 31, 2013. The adopted update resulted in revised disclosures in the Company’s financial statements, but did not have an impact on the Company’s consolidated financial position, results of operations or cash flows.

 

Note 2   Earnings Per Common Share

 

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

March 31, 2013

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

Basic earnings per common share:

 

 

 

 

 

Numerator:

 

 

 

 

 

Net income

 

$

48,226

 

$

50,272

 

Preferred stock dividends

 

 

(921

)

Net income available to common stockholders

 

48,226

 

49,351

 

Distributed and undistributed earnings allocated to participating securities

 

(3,019

)

(3,261

)

Income allocated to common stockholders for basic earnings per common share

 

$

45,207

 

$

46,090

 

Denominator:

 

 

 

 

 

Weighted average common shares outstanding

 

96,121,473

 

96,386,890

 

Less average unvested stock awards

 

(1,166,706

)

(1,641,200

)

Weighted average shares for basic earnings per common share

 

94,954,767

 

94,745,690

 

Basic earnings per common share

 

$

0.48

 

$

0.49

 

Diluted earnings per common share:

 

 

 

 

 

Numerator:

 

 

 

 

 

Income allocated to common stockholders for basic earnings per common share

 

$

45,207

 

$

46,090

 

Adjustment for earnings reallocated from participating securities

 

1,109

 

4

 

Income used in calculating diluted earnings per common share

 

$

46,316

 

$

46,094

 

Denominator:

 

 

 

 

 

Average shares for basic earnings per common share

 

94,954,767

 

94,745,690

 

Dilutive effect of stock options and preferred shares

 

4,526,162

 

166,030

 

Weighted average shares for diluted earnings per common share

 

99,480,929

 

94,911,720

 

Diluted earnings per common share

 

$

0.47

 

$

0.49

 

 

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:

 

 

 

March 31,

 

 

 

2013

 

2012

 

Unvested shares

 

1,175,011

 

1,588,576

 

Stock options and warrants

 

6,569,128

 

6,986,454

 

Convertible preferred shares

 

 

5,415,794

 

 

Note 3   Investment Securities Available for Sale

 

Investment securities available for sale consisted of the following at the dates indicated (in thousands):

 

11



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

 

 

March 31, 2013

 

 

 

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

 

$

 

$

 

$

 

$

 

$

1,567,919

 

$

59,389

 

$

 

$

1,627,308

 

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

 

 

 

 

 

58,343

 

1,733

 

 

60,076

 

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

 

 

 

 

 

527,110

 

10,911

 

 

538,021

 

Private label residential mortgage-backed securities and CMOs

 

138,275

 

60,116

 

(52

)

198,339

 

202,806

 

3,335

 

(257

)

205,884

 

Private label commercial mortgage-backed securities

 

 

 

 

 

495,695

 

17,430

 

(739

)

512,386

 

Collateralized loan obligations

 

 

 

 

 

373,733

 

1,617

 

 

375,350

 

Non-mortgage asset-backed securities

 

 

 

 

 

224,782

 

8,010

 

(131

)

232,661

 

Mutual funds and preferred stocks

 

16,382

 

3,277

 

(528

)

19,131

 

125,118

 

7,770

 

(5

)

132,883

 

State and municipal obligations

 

 

 

 

 

25,379

 

295

 

(13

)

25,661

 

Small Business Administration securities

 

 

 

 

 

326,664

 

17,818

 

 

344,482

 

Other debt securities

 

3,509

 

3,786

 

 

7,295

 

 

 

 

 

 

 

$

158,166

 

$

67,179

 

$

(580

)

$

224,765

 

$

3,927,549

 

$

128,308

 

$

(1,145

)

$

4,054,712

 

 

 

 

December 31, 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

 

$

 

$

 

$

 

$

 

$

34,998

 

$

157

 

$

(1

)

$

35,154

 

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

 

 

 

 

 

1,520,047

 

64,476

 

 

1,584,523

 

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

 

 

 

 

 

58,518

 

1,898

 

 

60,416

 

Re-Remics

 

 

 

 

 

575,069

 

10,063

 

(90

)

585,042

 

Private label residential mortgage-backed securities and CMOs

 

143,739

 

58,266

 

(185

)

201,820

 

243,029

 

3,437

 

(201

)

246,265

 

Private label commercial mortgage-backed securities

 

 

 

 

 

413,110

 

19,982

 

 

433,092

 

Collateralized loan obligations

 

 

 

 

 

252,280

 

908

 

 

253,188

 

Non-mortgage asset-backed securities

 

 

 

 

 

233,791

 

7,672

 

(117

)

241,346

 

Mutual funds and preferred stocks

 

16,382

 

1,439

 

(361

)

17,460

 

125,127

 

7,066

 

 

132,193

 

State and municipal obligations

 

 

 

 

 

25,127

 

249

 

(23

)

25,353

 

Small Business Administration securities

 

 

 

 

 

333,423

 

6,187

 

 

339,610

 

Other debt securities

 

3,723

 

3,502

 

 

7,225

 

9,164

 

561

 

 

9,725

 

 

 

$

163,844

 

$

63,207

 

$

(546

)

$

226,505

 

$

3,823,683

 

$

122,656

 

$

(432

)

$

3,945,907

 

 

At March 31, 2013, contractual maturities of investment securities available for sale, adjusted for anticipated prepayments of mortgage-backed and other pass-through securities, were as follows (in thousands):

 

 

 

Amortized

 

Fair

 

 

 

Cost

 

Value

 

 

 

 

 

 

 

Due in one year or less

 

$

640,992

 

$

681,294

 

Due after one year through five years

 

1,911,409

 

1,995,849

 

Due after five years through ten years

 

1,148,112

 

1,191,082

 

Due after ten years

 

243,702

 

259,238

 

Mutual funds and preferred stocks with no stated maturity

 

141,500

 

152,014

 

 

 

$

4,085,715

 

$

4,279,477

 

 

12



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

Based on the Company’s proprietary assumptions, the estimated weighted average life of the investment portfolio as of March 31, 2013 was 4.2 years. The effective duration of the investment portfolio as of March 31, 2013 was 1.9 years. The model results are based on assumptions that may differ from actual results.

 

The carrying value of securities pledged as collateral for FHLB advances, public deposits, interest rate swaps, securities sold under agreements to repurchase and to secure borrowing capacity at the Federal Reserve Bank totaled $0.9 billion at March 31, 2013 and December 31, 2012.

 

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 March 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Proceeds from sale of investment securities available for sale

 

$

119,316

 

$

5,847

 

 

 

 

 

 

 

Gross realized gains

 

$

1,689

 

$

19

 

Gross realized losses

 

(3

)

(3

)

Net realized gain

 

$

1,686

 

$

16

 

 

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, aggregated by investment category and length of time that individual securities had been in continuous unrealized loss positions, at the dates indicated (in thousands):

 

 

 

March 31, 2013

 

 

 

Less than 12 Months

 

12 Months or Greater

 

Total

 

 

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

 

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private label residential mortgage-backed securities and CMOs

 

$

22,790

 

$

(258

)

$

1,366

 

$

(51

)

$

24,156

 

$

(309

)

Private label commercial mortgage-backed securities

 

93,800

 

(739

)

 

 

93,800

 

(739

)

Non-mortgage asset-backed securities

 

 

 

8,541

 

(131

)

8,541

 

(131

)

Mutual funds and preferred stocks

 

1,982

 

(5

)

14,915

 

(528

)

16,897

 

(533

)

State and municipal obligations

 

1,567

 

(13

)

 

 

1,567

 

(13

)

 

 

$

120,139

 

$

(1,015

)

$

24,822

 

$

(710

)

$

144,961

 

$

(1,725

)

 

 

 

December 31, 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

)

Re-Remics

 

42,018

 

(16

)

8,833

 

(74

)

50,851

 

(90

)

Private label residential mortgage-backed securities and CMOs

 

53,537

 

(185

)

6,080

 

(201

)

59,617

 

(386

)

Non-mortgage asset-backed securities

 

 

 

10,566

 

(117

)

10,566

 

(117

)

Mutual funds and preferred stocks

 

 

 

15,082

 

(361

)

15,082

 

(361

)

State and municipal obligations

 

2,902

 

(23

)

 

 

2,902

 

(23

)

 

 

$

103,457

 

$

(225

)

$

40,561

 

$

(753

)

$

144,018

 

$

(978

)

 

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 months ended March 31, 2013 and 2012. 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

 

13



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

securities before recovery of the amortized cost basis, which may be at maturity. At March 31, 2013, 15 securities were in unrealized loss positions. The amount of impairment related to five of these securities was considered insignificant, totaling approximately $9.8 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:

 

Private label residential mortgage-backed securities and CMOs:

 

At March 31, 2013, four private label residential mortgage-backed securities 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 these assessments were not indicative of credit losses related to any of these securities as of March 31, 2013.  Three of the securities had been in unrealized loss positions for five months or less and evidenced unrealized losses less than 2% of amortized cost; the remaining security had been in an unrealized loss position for 21 months and evidenced an unrealized loss of approximately 5% of amortized cost.  The market for this security is very thin and the market price is adversely affected by lack of liquidity.  This bond is considered an odd lot which can be detrimental to potential bids for the security. Given the generally limited duration and severity of impairment and the expectation of timely recovery of outstanding principal, the impairments were considered to be temporary.

 

Private label commercial mortgage backed securities:

 

At March 31, 2013, two private label commercial mortgage backed securities were in unrealized loss positions.  These securities had been in unrealized loss positions for three months or less and the amount of impairment was less than 2% of amortized cost.  These securities were assessed for OTTI using third-party developed models, incorporating assumptions consistent with the collateral characteristics of each security.  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 recovery of outstanding principal, the impairment is considered to be temporary.

 

Non-mortgage asset-backed securities:

 

At March 31, 2013, two non-mortgage asset-backed securities were in unrealized loss positions.  These securities had been in unrealized loss positions for 24 months and the amount of impairment of each of the individual securities was less than 2% 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 March 31, 2013.  Given the limited severity of impairment and the expectation of timely recovery of outstanding principal, the impairments were considered to be temporary.

 

Mutual funds:

 

At March 31, 2013, one mutual fund investment was in an unrealized loss position and had been in a continuous unrealized loss position for 31 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 was approximately 3% of its cost basis. Given the limited severity, the impairment was considered to be temporary.

 

State and municipal obligations:

 

At March 31, 2013, one municipal security was in an unrealized loss position and had been in a continuous unrealized loss position for eight months.  The unrealized loss related to this security was approximately 2% of its cost basis. Given the limited duration and severity, the impairment was considered to be temporary.

 

14



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

Note 4   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).

 

Loans consisted of the following at the dates indicated (dollars in thousands):

 

 

 

March 31, 2013

 

 

 

Covered Loans

 

Non-Covered Loans

 

 

 

Percent of

 

 

 

ACI

 

Non-ACI

 

ACI

 

New Loans

 

Total

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

$

1,234,978

 

$

88,677

 

$

 

$

1,070,402

 

$

2,394,057

 

41.0

%

Home equity loans and lines of credit

 

50,229

 

151,331

 

 

1,643

 

203,203

 

3.5

%

 

 

1,285,207

 

240,008

 

 

1,072,045

 

2,597,260

 

44.5

%

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

46,478

 

690

 

 

307,198

 

354,366

 

6.0

%

Commercial real estate

 

162,791

 

1,188

 

4,042

 

941,734

 

1,109,755

 

19.0

%

Construction and land

 

15,802

 

820

 

 

77,728

 

94,350

 

1.6

%

Commercial and industrial

 

12,517

 

7,015

 

 

1,388,343

 

1,407,875

 

24.0

%

Lease financing

 

 

 

 

231,448

 

231,448

 

4.0

%

 

 

237,588

 

9,713

 

4,042

 

2,946,451

 

3,197,794

 

54.6

%

Consumer

 

1,953

 

 

 

48,669

 

50,622

 

0.9

%

Total loans

 

1,524,748

 

249,721

 

4,042

 

4,067,165

 

5,845,676

 

100.0

%

Premiums, discounts and deferred fees and costs, net

 

 

(17,307

)

 

15,472

 

(1,835

)

 

 

Loans net of premiums, discounts, deferred fees and costs

 

1,524,748

 

232,414

 

4,042

 

4,082,637

 

5,843,841

 

 

 

Allowance for loan and lease losses

 

(4,790

)

(15,919

)

 

(40,314

)

(61,023

)

 

 

Loans, net

 

$

1,519,958

 

$

216,495

 

$

4,042

 

$

4,042,323

 

$

5,782,818

 

 

 

 

15



Table of Contents

 

BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

 

 

December 31, 2012

 

 

 

Covered Loans

 

Non-Covered Loans

 

 

 

Percent of

 

 

 

ACI

 

Non-ACI

 

ACI

 

New Loans

 

Total

 

Total

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

$

1,300,109

 

$

93,438

 

$

 

$

920,713

 

$

2,314,260

 

41.5

%

Home equity loans and lines of credit

 

52,499

 

157,691

 

 

1,954

 

212,144

 

3.8

%

 

 

1,352,608

 

251,129

 

 

922,667

 

2,526,404

 

45.3

%

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

56,148

 

716

 

 

307,183

 

364,047

 

6.5

%

Commercial real estate

 

173,732

 

910

 

4,087

 

794,706

 

973,435

 

17.5

%

Construction and land

 

18,064

 

829

 

 

72,361

 

91,254

 

1.6

%

Commercial and industrial

 

14,608

 

11,627

 

 

1,334,991

 

1,361,226

 

24.4

%

Lease financing

 

 

 

 

225,980

 

225,980

 

4.1

%

 

 

262,552

 

14,082

 

4,087

 

2,735,221

 

3,015,942

 

54.1

%

Consumer

 

2,239

 

 

 

33,526

 

35,765

 

0.6

%

Total loans

 

1,617,399

 

265,211

 

4,087

 

3,691,414

 

5,578,111

 

100.0

%

Premiums, discounts and deferred fees and costs, net

 

 

(18,235

)

 

11,863

 

(6,372

)

 

 

Loans net of premiums, discounts, deferred fees and costs

 

1,617,399

 

246,976

 

4,087

 

3,703,277

 

5,571,739

 

 

 

Allowance for loan and lease losses

 

(8,019

)

(9,874

)

 

(41,228

)

(59,121

)

 

 

Loans, net

 

$

1,609,380

 

$

237,102

 

$

4,087

 

$

3,662,049

 

$

5,512,618

 

 

 

 

At March 31, 2013 and December 31, 2012, the unpaid principal balance (“UPB”) of ACI loans was $4.0 billion and $4.2 billion, respectively.

 

During the three months ended March 31, 2013 and 2012, the Company purchased 1-4 single family residential loans totaling $227.4 million and $165.9 million, respectively.

 

At March 31, 2013, the Company had pledged real estate loans with UPB of approximately $4.8 billion and carrying amounts of approximately $2.8 billion as security for FHLB advances.

 

During the three months ended March 31, 2013, the Company sold covered 1-4 single family residential loans to third parties on a non-recourse basis. The following table summarizes the impact of these transactions (in thousands):

 

Unpaid principal balance of loans sold

 

$

32,258

 

 

 

 

 

Cash proceeds, net of transaction costs

 

$

16,731

 

Carrying value of loans sold

 

7,265

 

Net pre-tax impact on earnings, excluding gain on indemnification asset

 

$

9,466

 

 

 

 

 

Loss on sale of covered loans

 

$

(772

)

Proceeds recorded in interest income

 

10,238

 

 

 

$

9,466

 

 

 

 

 

Gain on indemnification asset

 

$

1,216

 

 

The Company did not sell any covered loans during the three months ended March 31, 2012.

 

For the three months ended March 31, 2013, loans with UPB of $20.0 million were sold from a pool of ACI loans with a zero carrying value. Proceeds of the sale of loans from this pool were recorded in interest income. The loss on the sale of loans from the remaining pools was recorded in “Gain (loss) on sale of loans, net” in the

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

accompanying consolidated statements of income. These losses were mitigated by increases in the FDIC indemnification asset, reflected in the consolidated statement of income line item “Net gain (loss) on indemnification asset.” Reimbursements from the FDIC under the terms of the Loss Sharing Agreements are calculated based on UPB rather than on the carrying value of the loans; therefore the amount of gain on indemnification asset reflected in the table above also includes amounts reimbursable from the FDIC related to loans sold from the pool with a zero carrying value.

 

Allowance for loan and lease losses

 

Activity in the allowance for loan and lease losses (“ALLL”) is summarized as follows for the periods indicated (in thousands):

 

 

 

Three Months Ended

 

 

 

March 31, 2013

 

March 31, 2012

 

 

 

Residential

 

Commercial

 

Consumer

 

Total

 

Residential

 

Commercial

 

Consumer

 

Total

 

Beginning balance

 

$

19,164

 

$

39,543

 

$

414

 

$

59,121

 

$

10,175

 

$

38,176

 

$

51

 

$

48,402

 

Provision for (recovery of) loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACI loans

 

 

(1,403

)

 

(1,403

)

 

(1,011

)

 

(1,011

)

Non-ACI loans

 

7,164

 

(961

)

 

6,203

 

3,790

 

(1,179

)

 

2,611

 

New loans

 

(5,727

)

12,771

 

123

 

7,167

 

1,242

 

5,934

 

(9

)

7,167

 

Total provision

 

1,437

 

10,407

 

123

 

11,967

 

5,032

 

3,744

 

(9

)

8,767

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACI loans

 

 

(1,826

)

 

(1,826

)

 

(730

)

 

(730

)

Non-ACI loans

 

(1,000

)

(105

)

 

(1,105

)

(503

)

(103

)

 

(606

)

New loans

 

 

(8,194

)

(20

)

(8,214

)

 

(583

)

 

(583

)

Total charge-offs

 

(1,000

)

(10,125

)

(20

)

(11,145

)

(503

)

(1,416

)

 

(1,919

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-ACI loans

 

11

 

936

 

 

947

 

2

 

1,166

 

 

1,168

 

New loans

 

 

113

 

20

 

133

 

 

55

 

1

 

56

 

Total recoveries

 

11

 

1,049

 

20

 

1,080

 

2

 

1,221

 

1

 

1,224

 

Ending balance

 

$

19,612

 

$

40,874

 

$

537

 

$

61,023

 

$

14,706

 

$

41,725

 

$

43

 

$

56,474

 

 

The impact of provisions for (recoveries of) losses on covered loans is significantly mitigated by increases (decreases) in the FDIC indemnification asset, recorded in the consolidated statement of income line item “Net gain (loss) on indemnification asset.” Increases in the FDIC indemnification asset of $3.7 million and $1.6 million were reflected in non-interest income for the three months ended March 31, 2013 and 2012, respectively, related to the provision for loan losses on covered loans, including both ACI and non-ACI loans.

 

The following table presents information about the balance of the ALLL and related loans at the dates indicated (in thousands):

 

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BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

March 31, 2013

 

 

 

March 31, 2013

 

December 31, 2012

 

 

 

Residential

 

Commercial