BankUnited Inc (NYSE:BKU) Q2 2019 Earnings Conference Call - Final Transcript

Jul 24, 2019 • 09:00 am ET


BankUnited Inc (NYSE:BKU) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen and welcome to the Second Quarter 2019 BankUnited, Inc. Earnings Conference Call.

[Operator Instructions]

It is now my pleasure to hand the conference over to Ms. Susan Greenfield, Corporate Secretary. Ma'am, you may begin.

Susan D. Wright Greenfield

Thank you, Brian. Good morning and thank you for joining us today on our second quarter 2019 earnings conference call. On the call this morning are Raj Singh, our Chairman, President and CEO; Leslie Lunak, our Chief Financial Officer; and Tom Cornish, our Chief Operating Officer.

Before we start, I would like to remind everyone that this call contains forward-looking statements within the meaning of the US securities laws. Forward-looking statements are subject to risks, uncertainties and assumptions, and actual results may vary materially from those indicated in these statements.

Additional information concerning factors that could cause actual results to differ materially from those indicated by the forward-looking statements can be found in our earnings release and our SEC filings. We do not undertake any obligation to update or revise any such forward-looking statements now or at any time in the future.

With that, I would like to turn the call over to Raj.

Rajinder P. Singh

Thank you, Susan. Welcome everyone to our earnings call. A special thank you for everyone for joining. We know we have strong competition for your attention today with Robert Muller going on about at the same time, as we are. So for all those who are dialed-in and want to hear our story, thank you so much.

Let me start by saying this was a very strong quarter for us. We printed $81.5 million net income, $0.81 a share. This is up from $0.65 last quarter. The second quarter of 2018, which feels like a long time ago, was $0.82 a share. But the non-loss share earnings last year in the second quarter were $0.59 a share. So from $0.59 last year or $0.65 last quarter, $0.81 is hell of a performance.

Actually, what is even more interesting is that our total EPS, including loss share last year was $0.82. Today, we've no loss share and we are at $0.81, in a very, very short period of time. Loss share expired just six months ago. So overall, I am very happy with the profitability metrics that we have posted. I think, we are at 10% return on equity. And a little over -- I think, the 91 basis points or so of ROA, which is a very healthy trend over the last two or three quarters.

In terms of growth, let us talk about deposits first, then we will go to loans. Deposits grew $243 million, total deposits. But DDA grew more than that. DDA grew $335 million, which just to look reflective, all of last year, our DDA growth was $550 million, which I think most of you would agree was a very strong year for us. Now we had $335 million of growth in one quarter, which is -- makes me very happy.

I'll pause here