Core Insights - BankUnited, Inc. (BKU) reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and up from $0.72 per share a year ago, representing an earnings surprise of 28.17% [1] - The company achieved revenues of $264.46 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.83% and increasing from $234.3 million year-over-year [2] - BankUnited has consistently outperformed consensus EPS estimates over the last four quarters, with a total of four earnings surprises [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $258.7 million, while the estimate for the current fiscal year is $3 on revenues of $1.06 billion [7] - The trend of estimate revisions for BankUnited is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Major Regional industry, to which BankUnited belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - For Q4 2024, BankUnited reported net income of $69.3 million, or $0.91 per diluted share, up from $61.5 million, or $0.81 per diluted share in Q3 2024, and $20.8 million, or $0.27 per diluted share in Q4 2023[3]. - For the year ended December 31, 2024, net income was $232.5 million, or $3.08 per diluted share, compared to $178.7 million, or $2.38 per diluted share in 2023[3]. - Net income for the three months ended December 31, 2024, was $69,302 thousand, an increase of 12.0% from $61,452 thousand in the previous quarter[25]. - Basic earnings per common share increased to $3.10 in 2024 from $2.39 in 2023, with net income rising to $232.47 million from $178.67 million[34]. Interest Income and Margin - Net interest income for the quarter ended December 31, 2024, was $239.3 million, an increase of 2.5% from $234.1 million in the previous quarter and up 10.2% from $217.2 million in the same quarter last year[11]. - The net interest margin improved to 2.84% in Q4 2024, up from 2.78% in Q3 2024 and 2.60% in Q4 2023[5]. - The average rate paid on interest-bearing deposits declined to 3.75% for the quarter ended December 31, 2024, down from 4.20% in the previous quarter[17]. - Total interest income for the three months ended December 31, 2024, was $467,988 thousand, a decrease of 4.9% from $492,356 thousand in the previous quarter[25]. - Interest rate spread for the three months ended December 31, 2024, was 1.70%, compared to 1.55% in the previous quarter, indicating improved profitability on interest-earning assets[28]. - Net interest margin for the three months ended December 31, 2024, was 2.84%, up from 2.78% in the previous quarter, suggesting better efficiency in generating income from assets[28]. Loan and Deposit Trends - Total loans declined by $101 million in Q4 2024, with core commercial real estate (CRE) and commercial & industrial (C&I) segments growing by $185 million[5]. - Average non-interest bearing demand deposits (NIDDA) grew by $173 million in Q4 2024 compared to Q3 2024 and by $648 million compared to Q4 2023[5]. - Total deposits grew by $1.3 billion for the year ended December 31, 2024, with non-brokered deposits increasing by $1.4 billion[5]. - The loan to deposit ratio decreased to 87.2% at December 31, 2024, down from 87.6% at September 30, 2024[6]. - The company reported a loans to deposits ratio of 87.2% in 2024, consistent with the previous year, indicating stable lending practices[36]. Asset Quality and Credit Losses - The allowance for credit losses (ACL) to total loans ratio was 0.92% at December 31, 2024, with net charge-offs for the year at 0.16%[6][9]. - Non-performing loans totaled $250.7 million, representing 1.03% of total loans at December 31, 2024, up from $224.5 million or 0.92% at September 30, 2024[10]. - The provision for credit losses was $12.3 million for the quarter ended December 31, 2024, compared to $9.1 million in the previous quarter[10]. - Provision for credit losses decreased to $11,001 thousand for the three months ended December 31, 2024, down from $19,253 thousand in the same period last year, indicating improved credit quality[25]. - Criticized and classified commercial loans declined by $75.1 million for the quarter ended December 31, 2024[10]. Capital and Equity - The capital position remained strong, with a common equity tier 1 (CET1) ratio of 12.0% at December 31, 2024[6]. - Book value per common share increased to $37.65 at December 31, 2024, compared to $34.66 at December 31, 2023[6]. - Total stockholders' equity increased to $2,814,318,000 as of December 31, 2024, compared to $2,577,921,000 on December 31, 2023, reflecting a growth of approximately 9.2%[41]. - Tangible stockholders' equity reached $2,736,681,000 as of December 31, 2024, up from $2,500,284,000 a year earlier, indicating a year-over-year increase of about 9.5%[41]. - The tangible book value per common share increased to $36.61 in 2024 from $33.62 in 2023, reflecting growth in shareholder value[36]. Future Outlook - The company plans to hold a conference call on January 22, 2025, to discuss quarterly results[16].

Core Viewpoint - BankUnited, Inc. (BKU) is expected to report quarterly earnings of $0.71 per share, a decline of 1.4% year-over-year, with revenues projected at $259.7 million, reflecting a 10.8% increase compared to the previous year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [2] - Revisions to earnings estimates are crucial as they serve as indicators for predicting investor actions regarding the stock [3] Key Financial Metrics - Analysts project 'Average Interest-Earning Assets' to reach $34.41 billion, up from $34.07 billion year-over-year [5] - 'Total non-performing assets' are expected to be $228.82 million, significantly higher than the previous year's $130.58 million [5] - 'Total non-performing loans' are estimated at $225.96 million, compared to $127.04 million in the same quarter last year [6] - 'Net interest income before provision for credit losses' is projected at $237.17 million, up from $217.21 million year-over-year [6] - 'Total Non-Interest Income' is expected to reach $22.54 million, compared to $17.09 million last year [7] - 'Other non-interest income' is projected at $11.91 million, an increase from $7.37 million year-over-year [7] - 'Lease financing' is expected to be $5.41 million, up from $3.72 million in the same quarter last year [8] - 'Net Interest Income (FTE basis)' is projected at $239.39 million, compared to $221.44 million in the same quarter last year [8] - 'Deposit service charges and fees' are expected to be $5.13 million, slightly down from $5.39 million year-over-year [9] Market Performance - BankUnited shares have returned +5.2% over the past month, outperforming the Zacks S&P 500 composite, which declined by -2.1% [10] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance in the near future [10]

Core Viewpoint - BankUnited, Inc. reported strong Q3 earnings, surpassing expectations, but faces challenges with declining non-interest income and rising expenses [2][4][7]. Financial Performance - Q3 2024 earnings per share were 81 cents, exceeding the Zacks Consensus Estimate of 73 cents and up from 63 cents in the prior year [2]. - Net income reached $61.5 million, a 30.8% increase year over year, compared to an estimate of $54.4 million [3]. - Quarterly net revenues were $257 million, a 6% increase year over year, but fell short of the Zacks Consensus Estimate of $258.7 million [4]. Key Revenue Components - Net Interest Income (NII) was $234.1 million, growing 9% year over year, slightly above the expected $230.9 million [5]. - Net Interest Margin (NIM) expanded by 22 basis points to 2.78% [6]. - Non-interest income decreased by 17.4% to $22.9 million, attributed to a decline in lease financing [6]. Expense Analysis - Non-interest expenses rose 11.9% to $164.6 million, exceeding the estimate of $161.3 million [7]. - Total loans decreased by 1% to $24.4 billion, while total deposits increased marginally to $27.9 billion [7]. Credit Quality - Provisions for credit losses were $9.2 million, down 72% year over year, significantly lower than the expected $17.6 million [8]. - The ratio of net charge-offs to average loans was 0.12%, up 5 basis points year over year, and the non-performing assets ratio increased to 0.64%, up 24 basis points [8]. Capital and Profitability - Common Equity Tier 1 risk-based capital ratio improved to 11.8%, up from 11.4% [9]. - Return on average assets rose to 0.69%, compared to 0.52% in the previous year, and return on average stockholders' equity increased to 8.8% from 7.2% [9]. Future Outlook - Management anticipates a mid-single-digit increase in NII for 2024 and expects loan growth in the mid-single digits [11][12]. - Non-interest expenses are projected to grow in the upper mid-single digits for 2024, excluding a special assessment charge [13]. - The effective tax rate is expected to be 26.5% for 2024, excluding discrete items [14]. Market Position - Estimates for BankUnited have trended downward recently, with a consensus estimate shift of -8.06% [15][16]. - The stock currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [18].

Financial Performance - Net income for Q3 2024 was $61.5 million, or $0.81 per diluted share, compared to $47.0 million, or $0.63 per diluted share in Q3 2023, reflecting a 30.6% increase in net income year-over-year [126]. - For the nine months ended September 30, 2024, net income was $163.2 million, or $2.17 per diluted share, compared to $157.9 million, or $2.11 per diluted share for the same period in 2023, indicating a 3.3% increase [126]. - Net interest income for the three months ended September 30, 2024, was $238.0 million, an increase of $8.0 million from $230.0 million for the three months ended June 30, 2024 [153]. - Net interest income for the three months ended September 30, 2024 was $238.0 million, an increase of $18.9 million compared to $219.1 million for the same period in 2023 [154]. Interest Margin and Deposits - The net interest margin expanded by 0.06% to 2.78% for Q3 2024 from 2.72% in Q2 2024, and improved from 2.56% in Q3 2023 [129]. - The average cost of total deposits declined by 0.03% to 3.06% for Q3 2024, down from 3.09% in Q2 2024 [130]. - Total deposits grew by $1.3 billion during the nine months ended September 30, 2024, with non-brokered deposits increasing by $1.7 billion [175]. Loan Portfolio - Total loans decreased by $230 million for Q3 2024, with commercial real estate loans growing by $34 million, while residential loans declined by $422 million [135]. - As of September 30, 2024, the total loan portfolio amounted to $24.4 billion, a slight decrease from $24.6 billion on December 31, 2023 [191]. - The commercial loan segment represented 68.1% of total loans, increasing from 66.7% in the previous period, with a total of $16.6 billion [191]. - The residential loan segment decreased to $7.8 billion, representing 31.9% of total loans, down from 33.3% [191]. Credit Quality and Losses - Net charge-offs for Q3 2024 were $6.5 million, with an annualized net charge-off ratio of 0.12% for the nine months ended September 30, 2024 [137]. - The ratio of the allowance for credit losses (ACL) to total loans increased to 0.94% at September 30, 2024, with the ACL to non-performing loans ratio at 101.68% [138]. - Total non-performing loans increased to $224,484 thousand as of September 30, 2024, up from $173,455 thousand in June 30, 2024, and $127,044 thousand in December 31, 2023, representing a growth of 29.4% and 76.7% respectively [239]. - The allowance for credit losses (ACL) to total loans ratio was 0.94% as of September 30, 2024, slightly up from 0.92% in June 30, 2024, and 0.82% in December 31, 2023 [239]. Liquidity and Capital - Total same day available liquidity was $15.0 billion, with an available liquidity to uninsured, uncollateralized deposits ratio of 147% at September 30, 2024 [140]. - The Tier 1 leverage ratio for BankUnited, Inc. is 8.31% as of September 30, 2024, exceeding the required 4.00% [283]. - Total risk-based capital for BankUnited, Inc. stands at $3,502,509, with a ratio of 13.93%, well above the required 10.00% [283]. - The estimated amount of uninsured deposits at September 30, 2024, was $13.59 billion, an increase from $12.4 billion at December 31, 2023 [266]. Investment Securities - As of September 30, 2024, the investment securities portfolio had a net unrealized loss of $338.0 million, an improvement of $196.8 million from a loss of $534.8 million at December 31, 2023 [179]. - The total amortized cost of investment securities was $9.43 billion, with a carrying value of $9.09 billion as of September 30, 2024, compared to an amortized cost of $9.38 billion and a carrying value of $8.84 billion at December 31, 2023 [178]. - The estimated effective duration of the investment portfolio was 1.74 years, and the estimated weighted average life was 5.4 years as of September 30, 2024 [178]. Employee Compensation - Employee compensation and benefits increased to $81.781 million for the three months ended September 30, 2024, up from $68.825 million for the same period in 2023 [171].

BankUnited, Inc.’s (BKU) third-quarter 2024 earnings of 81 cents per share surpassed the Zacks Consensus Estimate of 73 cents. The bottom line compares favorably with 63 cents in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results were aided by growth in net interest income (NII), lower provisions and a slight improvement in deposit balance. However, lower non-interest income, a fall in loan balance and a jump in expenses were the undermining factors.Net i ...

Financial Data and Key Metrics Changes - Net income for Q3 2024 was $61.5 million, or $0.81 per share, compared to $0.72 in the previous quarter and $0.63 a year ago, exceeding consensus estimates of $0.74 [4][31] - Net interest margin (NIM) increased to 2.78% from 2.72% in the previous quarter, marking a 9% increase year-over-year [4][31] - Cost of deposits declined to 3.06% from 3.09% in the previous quarter, while the cost of interest-bearing deposits decreased from 4.26% to 4.20% [5][31] - Average tangible common equity to total assets (TCE/TA) rose to 7.6%, and tangible book value increased to $36.52 [10] Business Line Data and Key Metrics Changes - Total loans decreased by $230 million, with notable declines in residential and franchise leasing, while commercial real estate (CRE) grew by $34 million [21] - Year-to-date, C&I and CRE portfolios increased by a combined $286 million, while residential loans decreased by $422 million [21] - Average non-interest-bearing deposits (NIDDA) were down $64 million, but margins still increased by 6 basis points [8][31] Market Data and Key Metrics Changes - The commercial portfolio was 68% floating, and the securities portfolio was 70% floating, indicating a sensitivity to interest rate changes [32] - The weighted average loan-to-value (LTV) of the CRE portfolio was 55%, with a debt service coverage ratio of 1.77 [27] Company Strategy and Development Direction - The company is focused on balance sheet transformation to improve profitability, with a goal to increase NIDDA above 30% and achieve ROA over 1% and ROE in the 10-12% range [62] - The strategy includes being proactive in managing deposit costs and maintaining a disciplined approach to loan growth [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, expecting strong production numbers in C&I and CRE, despite a higher level of payoffs in Q3 [25][59] - The company anticipates NIDDA to be flat in Q4 but expects growth in the first half of next year [40][45] Other Important Information - The company has made significant hires to strengthen its team, including a new leader for the small business and commercial segment [10] - There were no significant impacts from recent hurricanes on the loan portfolio or physical premises [11][12] Q&A Session All Questions and Answers Question: Guidance on margin and non-interest-bearing deposits - Management indicated that margin is expected to be roughly flat next quarter, with non-interest-bearing deposits likely to be slightly down due to seasonality [42][50] Question: Capital deployment and buyback plans - The company is in discussions regarding capital planning and may consider share buybacks if growth does not materialize as expected [48][49] Question: Credit quality and office segment expectations - Management confirmed that past due loans in the CRE segment were primarily administrative issues and expect upgrades once lease concessions expire [50][51]

Financial Performance - Net interest income increased by $19 million, representing a 4% quarter-over-quarter growth, reaching $234 million in Q3 2024[6] - Net income increased by $14 million to $61 million in Q3 2024, with EPS rising to $081[6] - The net interest margin (NIM) expanded by 006% to 278% for the quarter and reached 269% year-to-date[5] Balance Sheet & Capital - Non-brokered deposits grew by $17 billion for the nine months ended September 30, 2024[5] - Wholesale funding decreased by $19 billion for the nine months ended September 30, 2024[5] - The CET1 ratio stood at 118%, and the TCE/TA ratio increased to 76%[5] - Available liquidity was $150 billion, covering 147% of uninsured, uncollateralized deposits[5] Loan Portfolio & Asset Quality - Core C&I and CRE loans grew by $286 million for the nine months ended September 30, 2024[5] - The allowance for credit losses (ACL) to loans increased to 094%, with the commercial ACL at 141%[5] - Annualized net charge-offs were 012%[5] - The non-performing assets (NPA) ratio, excluding guaranteed SBA loans, was 054%[5] CRE Portfolio - Office properties constitute 30% of the total CRE portfolio, with a weighted average debt service coverage ratio (DSCR) of 156 and a weighted average loan-to-value (LTV) of 654%[15] - Only 8% of the total CRE portfolio is fixed and maturing in the next 12 months[17]

BankUnited, Inc. (BKU) reported $257.02 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 6%. EPS of $0.81 for the same period compares to $0.63 a year ago.The reported revenue represents a surprise of -0.63% over the Zacks Consensus Estimate of $258.65 million. With the consensus EPS estimate being $0.73, the EPS surprise was +10.96%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Group 1: Earnings Performance - BankUnited, Inc. reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and up from $0.63 per share a year ago, representing an earnings surprise of 10.96% [1] - The company posted revenues of $257.02 million for the quarter ended September 2024, which was 0.63% below the Zacks Consensus Estimate, compared to $242.57 million in the same quarter last year [1] - Over the last four quarters, BankUnited has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] Group 2: Stock Performance and Outlook - BankUnited shares have increased by approximately 8.3% since the beginning of the year, while the S&P 500 has gained 22.7% [2] - The future performance of BankUnited's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.78 on revenues of $261.47 million, and for the current fiscal year, it is $2.86 on revenues of $1.01 billion [4] Group 3: Industry Context - The Banks - Major Regional industry, to which BankUnited belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5] - Northern Trust Corporation, another company in the same industry, is expected to report quarterly earnings of $1.73 per share, reflecting a year-over-year increase of 16.1% [5]