by Calculated Risk on 8/08/2008 06:24:00 PM

Press Release: BankUnited Announces Fiscal 2008 Third-Quarter Results

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.
...
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.
...
BankUnited’s option ARM loans are re-amortized over the remaining term at the earlier of five years from inception of the loan or upon reaching 115% of the original principal balance. As of June 30, 2008, a total of 128 loans had reached the maximum 115% of the original loan amount. These 128 loans had an aggregate balance of $42.9 million, or 0.41% of the total residential loan balance as of June 30, 2008. ...

The company estimates that approximately $48 million of option ARM loans will reach the 115% limit during the remaining quarter of fiscal 2008, and that $686 million will reach the 115% limit during fiscal year 2009.
emphasis added

Fiscal 2009 will be interesting with so many more Option ARMs reaching the 115% limit. Fiscal 2010 will probably be even worse (based on industry data, not BankUnited data).