BankUnited, Inc. (BKU)

BKU 
$31.39
*  
0.28
0.88%
Get BKU Alerts
*Delayed - data as of Aug. 27, 2014  -  Find a broker to begin trading BKU now
Exchange: NYSE
Industry: Finance
Community Rating:
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

BankUnited Inc. (BKU)

Q4 2012 Earnings Call

January 29, 2013 9:00 am ET

Executives

John Kanas – Chairman, President, Chief Executive Officer

Douglas Pauls – Chief Financial Officer

Mary Harris – Senior Vice President, Marketing and Public Relations

Analysts

Ken Zerbe – Morgan Stanley

Robert Placet – Deutsche Bank

Brady Gailey – KBW

Gerard Cassidy – RBC Capital Markets

Russell Gunther – Bank of America Merrill Lynch

Joe Fenech – Deutsche Bank

Michael Rosato (sp) – (unknown)

Presentation

Operator

Good day ladies and gentlemen. Welcome to the BankUnited Fourth Quarter Earnings call. My name is Steve and I will be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question and answer session towards the end of the conference. If at any time during the call you require assistance, please press star, zero and an operator will happy to assist you. As a reminder, this call is being recorded for replay purposes.

I would now like to turn the call over to Ms. Mary Harris, Senior Vice President of Marketing and Public Relations. Please proceed, ma’am.

Mary Harris

Good morning and welcome. It’s my pleasure to introduce John Kanas, BankUnited’s Chairman, President and CEO.

But first I’d like to remind everyone that this call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the company’s current views with respect to, among other things, future events and financial performance. The company generally identifies forward-looking statements by terminology such as outlook, believes, expects, potential, continues, may, will, could, should, seeks, approximately, predicts, intends, plans, estimates, anticipates, or the negative version of those words or other comparable words. Any forward-looking statements contained in this call are based on the historical performance of the company and its subsidiaries or in the company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the company that the future plans, estimates or expectations contemplated by the company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the company’s operations, financial results, financial condition, business prospects, growth strategy, and liquidity. If one or more of these or other risks or uncertainties materializes, or if the company’s underlying assumptions prove to be incorrect, the company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive.

The company does not undertake any obligation to publicly update or review any forward-looking statement whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the company’s annual report on Form 10-K for the year ended December 31, 2012, available at the SEC’s website, www.sec.gov.

Now I’ll turn it over to John. John?

John Kanas

Do you have that memorized?

Mary Harris

I do!

John Kanas

Good morning everybody. Clearly we’re pleased and we’re anxious to talk with you all this morning. The quarter was extraordinary and it topped off an extraordinary year for us. I’m going to speak to you only briefly about the high points as I see them looking back over 2012, a couple comments about the future. With me is Doug and Leslie and Raj and John Bohlsen, and between us we will answer any questions that you have.

The quarter was driven by principally three things: obviously the better results in the sale of loans than we had been accustomed to in the past had an impact on the quarter, a pretty big impact on the quarter, and on the net interest margin. Doug will be happy to fill you in on the details of that. I remind you that in past years, we’d always sustained a significant loss on the sale of these assets in the fourth quarter, and we could see that as the economy is improving we’re getting a lot more action in these auctions. You can see that we got almost 40% of the UPB on these loans this time compared to less than 30% in the three years before—an average of less than 30% in the three years before, so we expect that those kind of numbers will continue as the underlying economy continues to harden.

New loan growth is obviously a big driver and a marker for the success of our strategy down here in Florida, including loans we purchased. The annualized growth rate of loans in the quarter was 55%. We continued to see improvement in that area, and we continue to gain market share on our competitors down here in Florida. A year ago, if you would have asked me where the loan growth was coming from, I would have said essentially 100% of it was coming from pirating away market share from competitor banks. We are now beginning to see – and it’s really two quarters old – we’re beginning to see a noticeable improvement in the south Florida economy, which is contributing to that loan growth as well. If I had to guess, I’d say it’s still 75% market share gain but 25% of it is coming from a growing economy, particularly in south Florida.

We opened nine new branches this year and are almost done with our expansion in physical branches in Florida. We’ve got seven to go this year ahead of us, but only one of those will be a new location. Six of them are clean-ups of old branches.

Read the rest of this transcript for free on seekingalpha.com