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: January 28, 1999
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
first quarter earnings for BankUnited Financial Corporation (the
"Registrant") for the quarter ended December 31, 1998.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
20.1 Press Release dated January 28, 1999 announcing first quarter
earnings for the Registrant for the quarter ended December 31,
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/ DIANE DELELLA
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Diane DeLella
Vice President, Chief Financial Officer
and Controller
Dated: January 28, 1999
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BANKUNITED FINANCIAL CORPORATION
FORM 8-K
INDEX TO EXHIBITS
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SEQUENTIALLY
EXHIBIT NUMBERED
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20.1 Press Release dated January 28, 1999 announcing first quarter
earnings for the Registrant for the quarter ended December 31, 1998.
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EXHIBIT 20.1
[BANKUNITED LOGO]
FOR IMMEDIATE RELEASE CONTACT: Deborah L. Koch
January 28, 1999 305-569-2000
BANKUNITED ANNOUNCES FIRST QUARTER EARNINGS;
REVIEW INTO SIGNIFICANT RESTRUCTURING OF COMPANY
CORAL GABLES, FL --- BankUnited Financial Corporation, parent company of
BankUnited, FSB, today at its annual Stockholder's Meeting reported net income
after preferred stock dividends of $208,000 for the three months ended December
31, 1998 versus $1.6 million for the quarter ended December 31, 1997. Basic and
diluted earnings were $0.01 (1 cent) and $0.01 (1 cent) per share respectively
for the first quarter of fiscal 1999 versus $0.13 (13 cents) and $0.12 (12
cents) per share for the same period in the prior year.
BankUnited's assets reached $3.8 billion this quarter. Deposits increased to
$2.3 billion. Furthermore, the Company's book value per share was $10.45 and
tangible book value per share was $8.71.
Alfred R. Camner, Chairman and Chief Executive Officer, stated, "BankUnited is
disappointed to report that it continues to suffer from rapid prepayments in the
bank's adjustable rate 1-year CMT mortgage portfolio, including related
securitizations. It appears that the unanticipated prolonged flatness of the
yield curve as well as the volatility in interest rates has produced unusually
high levels of prepayments in adjustable rate mortgages. As noted in our last
several quarters, these prepayments have caused a significant reduction in our
total interest income and margins. For this December quarter, the total charge
against income from premium amortization was $5.7 million. This expense occurred
primarily from those prepayments related to 1-year CMT adjustable rate
mortgages, including securitizations, which were purchased in the secondary
market."
"Our management team, lead by new President and Chief Operating Officer, Mehdi
Ghomeshi, is now comprehensively reviewing all lines of business for the purpose
of restructuring and consolidating our organization while improving revenue and
reducing expenses. Part of this review will include our activities involving
adjustable rate mortgages purchased in the secondary market. We will be
analyzing the profitability of each business segment as well as turning our
focus on originating our own assets, as opposed to our current reliance on loan
purchases in the secondary market. We are eagerly anticipating the positive
impact that this exercise will have on the bank's future margins," Mr. Camner
further stated.
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BANKUNITED - page 2
"We expect to complete our overall restructuring review this coming quarter. As
a result, we anticipate that there may be a significant charge to income
occurring in the March quarter relating to the discontinuance and consolidation
of various areas in the bank, including possibly those areas involving the
adjustable rate mortgage portfolio purchased in the secondary market."
"Unfortunately, the earnings figures have detracted from some excellent
achievements made by BankUnited this last year. We have established a
significant banking franchise in South Florida, with 25 branch offices as well
as several new offices which are anticipated to open in the near future. Our
assets grew 27% and deposits grew 59% over the same quarter last year.
BankUnited enjoyed a strong capital position with core and risk-based capital
ratios of 8.56% and 17.22%, respectively, well above the minimum ratios
required."
Mr. Ghomeshi said, "My vision for BankUnited is to establish a strong banking
franchise that offers innovative products and services to meet the financial
needs of our customers. To accomplish that vision, we are working to develop a
business model that stresses building profitable customer relationships and
profitable business lines, allowing us to allocate resources to areas that
generate the most shareholder value."
"One of the primary ways we will generate higher margins is by originating most
of our assets through increasing our commercial and consumer, including
residential, loan activity. This shift in strategy will reduce our loan
purchases on the secondary market, a significant method of acquiring assets
currently used by BankUnited."
"Looking to 1999, these and other initiatives will ensure our long-term
financial performance and the value provided to our shareholders. Entering new
lines of business and focusing our products and services around key customer
segments means we will be providing the right product to the right customer at
the right price," Mr. Ghomeshi concluded.
Other business discussed at the Stockholder's Meeting included the election of
Mehdi Ghomeshi as a Class II Director and the reelection of Allen M. Bernkrant,
Earline G. Ford and Bruce D. Friesner as Class III Directors.
The Stockholders also approved an amendment to the 1996 Incentive Compensation
and Stock Award Plan to increase the number of shares of Common Stock and the
number of shares of Series B Preferred Stock available for the grant of options,
stock bonuses, stock awards, restricted stock and restricted stock units.
BankUnited, FSB is the principal subsidiary of BankUnited Financial Corporation
and is the largest financial institution headquartered in Florida. It operates
25 banking offices throughout 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
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BANKUNITED - page 3
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 press 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.
# # #
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BANKUNITED FINANCIAL CORPORATION
THREE MONTHS ENDED DECEMBER 31, 1998 EARNINGS RELEASE
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<CAPTION>
FOR THE THREE MONTHS ENDED
DECEMBER 31,
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1998 1997
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(in thousands, except per share data)
<S> <C> <C>
Total interest income $ 58,145 $ 41,450
Total interest expense 48,056 32,083
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Net interest income 10,089 9,367
Provision for loan losses 400 650
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Net interest income after provision for loan losses 9,689 8,717
Net gain(loss) on sale of assets (9) 1,115
Total other income 1,302 529
Total other expense 10,222 7,025
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Income before income taxes and preferred stock dividends 760 3,336
Provision for income taxes 364 1,361
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Net income before preferred stock dividend 396 1,975
Preferred stock dividends 188 332
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Net income after preferred stock dividends $ 208 $ 1,643
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Basic earnings per common share: $ 0.01 $ 0.13
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Weighted average common shares 18,188,954 13,012,115
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Diluted earnings per common share: $ 0.01 $ 0.12
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Weighted average diluted common shares 18,565,707 14,041,609
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Return on average equity 0.80% 5.87%
Return on average assets 0.04% 0.33%
Net interest yield on earning assets 1.17% 1.66%
Net interest spread 1.02% 1.39%
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AS OF DECEMBER 31,
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1998 1997
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Total assets $ 3,832,377 $ 3,028,776
Loans receivable,net 3,147,587 2,671,657
Mortgage-backed securities 323,590 95,285
Deposits 2,301,162 1,444,102
Borrowings 1,073,427 1,291,466
Trust preferred securities 218,500 116,000
Stockholders' equity 198,847 145,631
Book value per common share 10.45 9.13
Fully converted tangible book value per common share 8.38 8.19
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