BankUnited takes a beating
In some late-breaking news this Friday afternoon, BankUnited Financial announced that it's taking a bath on bad mortgages. The Coral Gables, Fla.-based institution, with $14.2 billion in assets as of June 30, was a major option ARM lender. Its exposure to the weak Florida real estate market is coming back to bite it. Some details from the company's report ...
-- BankUnited Financial Corporation, parent company of BankUnited FSB, today reported a loss of $117.7 million, or a loss of $3.35 per diluted share for the quarter ended June 30, 2008, compared to earnings of $23.2 million, or $0.62 per diluted share, for the quarter ended June 30, 2007. The loss was primarily attributable to a $130 million provision for loan losses.
-- BankUnited Financial Corporation contributed $80 million in capital to BankUnited FSB. At June 30, 2008, BankUnited’s Tier 1 leverage capital ratio was 7.6% and total-risk based capital ratio was 13.8%. Furthermore, we have made considerable progress in our pursuit to raise additional capital.
-- The ratio of non-performing assets as a percentage of total assets increased to 7.73% at June 30, 2008, from 4.75% at March 31, 2008, and 0.86% at June 30, 2007.
-- For the quarter ended June 30, 2008, the provision for loan losses totaled $130 million, compared to $98 million for the quarter ended March 31, 2008, and $4.4 million for the quarter ended June 30, 2007.
-- Net charge-offs for the quarter ended June 30, 2008, were $22.7 million, or an annualized rate of 0.73% of average total loans. This compares to $13.3 million, or an annualized rate of 0.42% of average total loans, for the quarter ended March 31, 2008, and $1.1 million, or an annualized rate of 0.04% of average total loans, for the quarter ended June 30, 2007.
-- Of the $7.1 billion in option-ARM balances, $6.5 billion had negative amortization of $376 million, or 5.3% of the option-ARM portfolio.
-- Chairman and chief executive officer Alfred R. Camner, members of his family and other members of the board of directors have agreed to waive their receipt of preferred stock dividends. It is expected that these dividends will be waived until the bank returns to profitability.
-- BankUnited Financial Corporation, parent company of BankUnited FSB, today reported a loss of $117.7 million, or a loss of $3.35 per diluted share for the quarter ended June 30, 2008, compared to earnings of $23.2 million, or $0.62 per diluted share, for the quarter ended June 30, 2007. The loss was primarily attributable to a $130 million provision for loan losses.
-- BankUnited Financial Corporation contributed $80 million in capital to BankUnited FSB. At June 30, 2008, BankUnited’s Tier 1 leverage capital ratio was 7.6% and total-risk based capital ratio was 13.8%. Furthermore, we have made considerable progress in our pursuit to raise additional capital.
-- The ratio of non-performing assets as a percentage of total assets increased to 7.73% at June 30, 2008, from 4.75% at March 31, 2008, and 0.86% at June 30, 2007.
-- For the quarter ended June 30, 2008, the provision for loan losses totaled $130 million, compared to $98 million for the quarter ended March 31, 2008, and $4.4 million for the quarter ended June 30, 2007.
-- Net charge-offs for the quarter ended June 30, 2008, were $22.7 million, or an annualized rate of 0.73% of average total loans. This compares to $13.3 million, or an annualized rate of 0.42% of average total loans, for the quarter ended March 31, 2008, and $1.1 million, or an annualized rate of 0.04% of average total loans, for the quarter ended June 30, 2007.
-- Of the $7.1 billion in option-ARM balances, $6.5 billion had negative amortization of $376 million, or 5.3% of the option-ARM portfolio.
-- Chairman and chief executive officer Alfred R. Camner, members of his family and other members of the board of directors have agreed to waive their receipt of preferred stock dividends. It is expected that these dividends will be waived until the bank returns to profitability.
posted by Mike Larson at
4:16 PM
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