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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of
the Securities Exchange Act of 1934
Date of Report: November 9, 1998
BANKUNITED FINANCIAL CORPORATION
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(Exact name of Registrant as specified in its charter)
FLORIDA 5-43936 65-0377773
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
255 ALHAMBRA CIRCLE, CORAL GABLES, FLORIDA 33134
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(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (305) 569-2000
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Item 5. OTHER EVENTS.
Attached hereto as Exhibit 20.1 is a press release announcing
fourth quarter and annual earnings for BankUnited Financial Corporation
for the quarter and fiscal year ended September 30, 1998.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
20.1 Press Release dated November 9, 1998 announcing fourth quarter
and annual earnings for BankUnited Financial Corporation for
the quarter and fiscal year ended September 30, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
BANKUNITED FINANCIAL CORPORATION
By: /s/ Clifford A. Hope
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Clifford A. Hope
Executive Vice President and
Chief Financial Officer
Dated: November 9, 1998
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BANKUNITED FINANCIAL CORPORATION
FORM 8-K
INDEX TO EXHIBITS
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SEQUENTIALLY
EXHIBIT NUMBERED
NO. PAGE
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20.1 Press Release dated November 9, 1998 announcing fourth quarter
and annual earnings for BankUnited Financial Corporation for the
quarter and fiscal year ended September 30, 1998.
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Exhibit 20.1
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<S> <C> <C> <C>
Alfred R. Camner Clifford A. Hope
Chief Executive Officer Chief Financial Officer
BANKUNITED Contacts:
F l o r i d a' s P r e m i e r B a n k James A. Dougherty Deborah L. Koch
Chief Operating Officer Press Contact
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N E W S R E L E A S E
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FOR IMMEDIATE RELEASE
November 9,1998
BANKUNITED ANNOUNCES HIGHER FOURTH QUARTER
AND ANNUAL EARNINGS
ASSETS AND DEPOSITS RISE SIGNIFICANTLY OVER PREVIOUS YEAR
Coral Gables, FL --- BankUnited Financial Corporation (Nasdaq: BKUNA), parent
company of BankUnited, FSB, today reported net income after preferred stock
dividends of $6.5 million ($0.41 basic and $0.39 diluted earnings per share) for
the year ended September 30, 1998, compared to $4.7 million ($0.57 basic and
$0.54 diluted earnings per share) for 1997. This reflects a 38% increase in net
income over the prior year.
Net income after preferred stock dividends for the three months ended September
30, 1998 was $1.5 million ($0.09 basic and $0.08 diluted earnings per share), a
7% increase in net income compared to $1.4 million ($0.16 basic and $0.15
diluted earnings per share) for the same quarter of fiscal 1997.
Earnings per share for the fiscal year and quarter reflect an increase in
average common shares for those periods of 91% and 101%, respectively.
In reporting the earnings, Chairman and Chief Executive Officer, Alfred R.
Camner stated, "I am pleased to report that our income for the year increased
38% to $6.5 million; total assets rose 74% to $3.7 billion this fiscal year;
and, fully converted tangible book value per share reached $8.49, a 23% growth
over last year."
"During fiscal 1998, we accomplished a number of goals in the face of the very
volatile financial markets. Our customer deposit base grew to the $2 billion
level, a more than 78% increase, through internal growth as well as the
acquisitions of Consumers Savings Bank and Central Bank. Additionally, we
achieved significant progress in building our residential mortgage originations
to nearly $313 million, a 163% increase over last year."
"We increased our total operating capital by $202 million or 94% over the prior
year, primarily through the completion of a $102 million trust preferred
offering, two common stock offerings of $59 million and through stock issued in
connection with our acquisitions. More recently, we announced our establishment
of the medium term note program, a first of its kind, in conjunction with the
Federal Home Loan Bank of Atlanta, which will permit BankUnited to issue up to
$500 million in Notes with "Aaa" ratings."
-more-
BankUnited Financial Corporation o BankUnited, FSB o 255 Alhambra Circle o Coral
Gables, Florida 33134 o (305) 569-2000
NASDAQ SYMBOL: BKUNA
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BankUnited - page 2
"The economic environment of fiscal 1998 was volatile and challenging. The
flattened and sometimes inverted field curve and sharply fluctuating bond market
made it very difficult to attain the desired margins and returns for the
Company's stockholders. We experienced, as did many others, historically high
levels of prepayments on residential mortgage loans. These higher prepayments
resulted in an acceleration in our amortization of loan premiums, particularly
for the September 30 and June 30 quarters, in amounts of approximately $3.7
million and $1.8 million, respectively over anticipated levels. In turn, this
caused a corresponding reduction in net interest income."
"We anticipate that the acceleration of premium amortization should be slowed by
recent upward moves in interest rates and by certain programs we have initiated
with the goal of reducing prepayments. However, there can be no assurance that
other changes in market conditions will not cause a pickup in prepayments once
again."
"With the uncertainty in the worldwide financial markets, we have continued to
emphasize investing in residential mortgages; this is reflected in our low
credit losses, one of our greatest strengths. For example, we have maintained a
low nonperforming ratio to total assets of 0.61% at September 30, 1998."
"We have made special efforts to reduce our costs while growing the Company's
franchise. Thus, we achieved a 1.03% ratio of operating expenses to average
total assets for the year versus 1.55% in the prior year. More recently, we made
significant progress at lowering our cost of funds. Thus, combined with our
efforts at lowering prepayments, should produce widened margins in the coming
year and permit us to achieve a more favorable return on assets. Of course, any
such predictions are always subject to many contingencies in today's world"
BankUnited, FSB currently operates 25 branch offices in Miami-Dade, Broward,
Palm Beach, and Collier Counties. Additional branch offices in Plantation and
Deerfield Beach are expected to open in the near future. BankUnited Financial
Corporation is traded on the Nasdaq National Market. Its common stock trades
under the symbol BKUNA. BankUnited Capital II trust preferred securities trade
on NASDAQ under the symbol BKUNZ. BankUnited Capital III trust preferred
securities trade on the New York Stock Exchange under the symbol BUFPrC.
This release may contain certain forward-looking statements, which are based on
management's expectations regarding factors that may impact the Company's
earnings in future periods. Factors that could cause future results to vary
materially from current management expectations include, but are not limited to,
general economic conditions, changes in interest rates, deposit flows, loan
demand, real estate values and competition; changes in accounting principles,
policies or guidelines; changes in legislation or regulation; and other
economic, competitive, governmental, regulatory and technological factors
affecting the Company's operations, pricing, products and services.
# # #
CONTACT: Clifford A. Hope, BankUnited, 305-569-2000
Distributed by: BankUnited, 305-569-2000
Deborah L. Koch
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BANKUNITED FINANCIAL CORPORATION
YEAR ENDED SEPTEMBER 30, 1998 EARNINGS RELEASE
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FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1998 1997 1998 1997
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(in thousands, except per share data)
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Total interest income $ 59,188 $ 34,842 $ 207,567 $ 108,774
Total interest expense 48,042 25,947 167,543 75,960
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Net interest income 11,146 8,895 40,024 32,814
Provision for loan losses 350 600 1,700 1,295
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Net interest income after provision
for loan losses 10,796 8,295 38,324 31,519
Net gain on sale of assets 1,144 819 4,435 820
Total other income (81) 724 1,790 3,240
Total other expense 8,934 6,233 32,183 22,947
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Income before income taxes and preferred
stock dividends 2,925 3,605 12,366 12,632
Provision for income taxes 1,186 1,439 5,009 5,033
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Net income before preferred stock dividend 1,739 2,166 7,357 7,599
Preferred stock dividends 198 723 897 2,890
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Net income after preferred stock dividends $ 1,541 $ 1,443 $ 6,460 $ 4,709
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Basic earnings per common share: $ 0.09 $ 0.16 $ 0.41 $ 0.57
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Weighted average common shares 18,128,854 9,039,690 15,692,566 8,210,890
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Diluted earnings per common share: $ 0.08 $ 0.15 $ 0.39 $ 0.54
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Weighted average diluted common shares 18,893,394 9,901,260 16,666,415 9,148,229
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Return on average equity 3.55% 8.66% 4.53% 8.06%
Return on average assets 0.19% 0.45% 0.24% 0.51%
Net interest yield on earning assets 1.34% 1.98% 1.65% 2.31%
Net interest spread 1.14% 1.76% 1.45% 2.07%
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AS OF SEPTEMBER 30,
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1998 1997
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Total assets $3,738,383 $2,145,406
Loans receivable, net 3,042,014 1,765,723
Mortgage-backed securities 345,756 120,271
Deposits 2,124,824 1,195,892
Borrowings 1,142,614 701,484
Trust preferred securities 218,500 116,000
Stockholders' equity 199,292 99,645
Book value per common share 10.50 7.94
Fully converted tangible book value per common share 8.49 6.88
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