BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced
financial results for the quarter and year ended December 31,
2024.
"We are very excited about the momentum we've generated and the
improvement we've seen in the funding base and profitability
profile of the Company over the course of 2024," said Rajinder
Singh, Chairman, President and Chief Executive Officer.
For the quarter ended December 31, 2024, the Company reported
net income of $69.3 million, or $0.91 per diluted share, compared
to $61.5 million, or $0.81 per diluted share, for the immediately
preceding quarter ended September 30, 2024 and $20.8 million, or
$0.27 per diluted share, for the quarter ended December 31, 2023.
For the year ended December 31, 2024, the Company reported net
income of $232.5 million, or $3.08 per diluted share, compared to
$178.7 million, or $2.38 per diluted share, for the year ended
December 31, 2023. Results for the quarter and year ended December
31, 2023 were negatively impacted by a $35.4 million FDIC special
assessment, pre-tax. This item reduced net income by $26.2 million
and EPS by $0.35 for the quarter and year ended December 31,
2023.
Quarterly Highlights
We continue to execute on strategic priorities focused on
improving core profitability. EPS, the net interest margin, ROAA
and ROAE have improved notably since the fourth quarter of 2023, as
well as for the year ended December 31, 2024 compared to the year
ended December 31, 2023.
- The net interest margin, calculated on a tax-equivalent basis,
expanded by 0.06% to 2.84% for the quarter ended December 31, 2024
from 2.78% for the immediately preceding quarter and by 0.24% from
2.60% for the comparable quarter of the prior year. Average
non-interest bearing demand deposits ("NIDDA") for the quarter
ended December 31, 2024 exceeded our expectations and we made
outstanding progress reducing the cost of interest bearing
deposits. For the year ended December 31, 2024, the net interest
margin improved to 2.73% from 2.56% for the year ended December 31,
2023.
- The average cost of total deposits declined by 0.34% to 2.72%
for the quarter ended December 31, 2024 from 3.06% for the
immediately preceding quarter ended September 30, 2024, while the
average cost of interest bearing deposits declined by 0.45% to
3.75% from 4.20% for those same comparable periods. The spot APY of
total deposits declined to 2.63% at December 31, 2024 from 2.93% at
September 30, 2024 while the spot APY of interest bearing deposits
declined to 3.58% at December 31, 2024 from 4.01% at September 30,
2024.
- Average NIDDA grew by $173 million for the quarter ended
December 31, 2024 compared to the immediately preceding quarter and
by $648 million compared to the fourth quarter of 2023. On a
point-to-point basis, NIDDA grew by $781 million for the year ended
December 31, 2024 and was relatively flat, declining by only $19
million in spite of seasonal headwinds, for the fourth quarter of
2024. At December 31, 2024, NIDDA was 27% of total deposits.
- Wholesale funding, including FHLB advances and brokered
deposits, declined by $346 million for the quarter ended December
31, 2024. For the year ended December 31, 2024, wholesale funding
declined by $2.3 billion.
- Total deposits was relatively flat quarter over quarter,
growing by $9.5 million for the quarter ended December 31, 2024.
For the year ended December 31, 2024, total deposits grew by $1.3
billion; non-brokered deposits grew by $1.4 billion.
- Total loans declined by $101 million for the quarter ended
December 31, 2024. The core CRE and C&I segments grew by $185
million and mortgage warehouse grew by $14 million. Consistent with
our balance sheet strategy, the residential, franchise, equipment
and municipal finance portfolios declined by a combined $299
million. For the year ended December 31, 2024, the core CRE and
C&I segments grew by $470 million, mortgage warehouse grew by
$153 million and the residential, franchise, equipment and
municipal finance portfolios declined by a combined $959 million.
The pace of C&I growth over the course of 2024 was impacted by
an increased level of payoffs and rationalization of
non-relationship credits.
- The loan to deposit ratio declined to 87.2% at December 31,
2024, from 87.6% at September 30, 2024 and 92.8% at December 31,
2023.
- Total criticized and classified commercial loans declined by
$75.1 million for the quarter ended December 31, 2024, however,
non-performing loans increased by $26.2 million, primarily related
to one CRE office loan. The NPA ratio was 0.73%, including 0.10%
related to the guaranteed portion of non-accrual SBA loans, at
December 31, 2024 compared to 0.64%, including 0.10% related to the
guaranteed portion of non-accrual SBA loans at September 30, 2024.
The net charge-off ratio for the year ended December 31, 2024 was
0.16%.
- The ratio of the ACL to total loans was 0.92% at December 31,
2024; the ratio of the ACL to non-performing loans was 89.01%. The
ACL to loans ratio for commercial portfolio sub-segments including
C&I, CRE, franchise finance and equipment finance was 1.37% at
December 31, 2024 and the ACL to loans ratio for CRE office loans
was 2.30%.
- Our commercial real estate exposure totaled 26% of loans and
169% of the Bank's total risk based capital at December 31, 2024.
By comparison, based on call report data as of September 30, 2024
(the most recent date available) for banks with between $10 billion
and $100 billion in assets, the median level of CRE to total loans
was 35% and the median level of CRE to total risk based capital was
222%.
- At December 31, 2024, the weighted average LTV of the CRE
portfolio was 55.0%, the weighted average DSCR was 1.76, 54% of the
portfolio was collateralized by properties located in Florida and
25% was collateralized by properties located in the New York
tri-state area. For the office sub-segment, the weighted average
LTV was 65.2%, the weighted average DSCR was 1.57, 57% was
collateralized by properties in Florida, substantially all of which
was suburban, and 23% was collateralized by properties located in
the New York tri-state area.
- Our capital position is robust. At December 31, 2024, CET1 was
12.0% at a consolidated level. Pro-forma CET1, including
accumulated other comprehensive income, was 10.9% at December 31,
2024. The ratio of tangible common equity to tangible assets
increased to 7.8% at December 31, 2024.
- Book value and tangible book value per common share continued
to grow, to $37.65 and $36.61, respectively, at December 31, 2024,
compared to $37.56 and $36.52, respectively, at September 30, 2024,
and $34.66 and $33.62, respectively at December 31, 2023.
Loans
Loan portfolio composition at the dates indicated follows
(dollars in thousands):
December 31, 2024
September 30, 2024
December 31, 2023
Core C&I and CRE sub-segments:
Non-owner occupied commercial real
estate
$
5,652,203
23.3
%
$
5,488,884
22.5
%
$
5,323,241
21.6
%
Construction and land
561,989
2.3
%
497,928
2.0
%
495,992
2.0
%
Owner occupied commercial real estate
1,941,004
8.0
%
1,999,515
8.2
%
1,935,743
7.9
%
Commercial and industrial
7,042,222
28.9
%
7,026,412
28.9
%
6,971,981
28.3
%
15,197,418
62.5
%
15,012,739
61.6
%
14,726,957
59.8
%
Franchise and equipment finance
213,477
0.9
%
277,704
1.1
%
380,347
1.5
%
Pinnacle - municipal finance
720,661
3.0
%
749,035
3.1
%
884,690
3.6
%
Mortgage warehouse lending ("MWL")
585,610
2.4
%
571,783
2.3
%
432,663
1.8
%
Residential
7,580,814
31.2
%
7,787,442
31.9
%
8,209,027
33.3
%
$
24,297,980
100.0
%
$
24,398,703
100.0
%
$
24,633,684
100.0
%
For the quarter ended December 31, 2024, total loans declined by
$101 million. The CRE portfolio grew by $227 million and MWL grew
by $14 million while the C&I portfolio declined by $43 million.
Consistent with our balance sheet strategy, residential loans
declined by $207 million; the franchise, equipment, and municipal
finance portfolios declined by an aggregate $93 million.
Asset Quality and the
ACL
The following table presents information about the ACL at the
dates indicated as well as net charge-off rates for the periods
ended December 31, 2024, September 30, 2024 and December 31, 2023
(dollars in thousands):
ACL
ACL to Total Loans
Commercial ACL to Commercial
Loans(2)
ACL to Non- Performing
Loans
Net Charge-offs to Average
Loans (1)
December 31, 2023
$
202,689
0.82
%
1.29
%
159.54
%
0.09
%
September 30, 2024
$
228,249
0.94
%
1.41
%
101.68
%
0.12
%
December 31, 2024
$
223,153
0.92
%
1.37
%
89.01
%
0.16
___________________________
(1)
Annualized for the nine months ended
September 30, 2024; ratios for December 31, 2024 and 2023 are
annual net charge-off rates.
(2)
For purposes of this ratio, commercial
loans includes the core C&I and CRE sub-segments as presented
in the table above as well as franchise and equipment finance. Due
to their unique risk profiles, MWL and municipal finance are
excluded from this ratio.
The decline in the ACL coverage ratios at December 31, 2024 as
compared to the prior quarter-end is related to C&I charge-offs
during the quarter, the majority of which were previously reserved
for.
The ACL at December 31, 2024 represents management's estimate of
lifetime expected credit losses given an assessment of historical
data, current conditions, and a reasonable and supportable economic
forecast as of the balance sheet date. For the quarter ended
December 31, 2024, the provision for credit losses, including both
funded and unfunded loan commitments, was $11.0 million, compared
to $9.2 million for the immediately preceding quarter ended
September 30, 2024 and $19.3 million for the quarter ended December
31, 2023. The most significant factor leading to the decrease in
ACL for the quarter was net charge offs; this reduction was
partially offset by increases in specific reserves, the impact of
the economic forecast and an increase in qualitative overlays.
Three C&I loans accounted for substantially all of the
charge-offs for the quarter.
The following table summarizes the activity in the ACL for the
periods indicated (in thousands):
Three Months Ended
Years Ended
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Beginning balance
$
228,249
$
225,698
$
196,063
$
202,689
$
147,946
Impact of adoption of new accounting
pronouncement (ASU 2022-02)
N/A
N/A
N/A
N/A
(1,794
)
Balance after impact of adoption of ASU
2022-02
228,249
225,698
196,063
202,689
146,152
Provision
12,267
9,091
16,257
58,986
78,924
Net charge-offs
(17,363
)
(6,540
)
(9,631
)
(38,522
)
(22,387
)
Ending balance
$
223,153
$
228,249
$
202,689
$
223,153
$
202,689
As detailed in the following table, criticized and classified
commercial loans declined by $75.1 million for the quarter ended
December 31, 2024 (in thousands):
December 31, 2024
September 30, 2024
December 31, 2023
CRE
Total Commercial
CRE
Total Commercial
CRE
Total Commercial
Special mention
$
58,771
$
262,387
$
145,338
$
323,326
$
97,552
$
319,905
Substandard - accruing
633,614
894,754
587,097
932,746
390,724
711,266
Substandard - non-accruing
95,378
219,758
70,860
186,565
13,727
86,903
Doubtful
—
6,856
—
16,265
—
19,035
Total
$
787,763
$
1,383,755
$
803,295
$
1,458,902
$
502,003
$
1,137,109
Non-performing loans totaled $250.7 million or 1.03% of total
loans at December 31, 2024, compared to $224.5 million or 0.92% of
total loans at September 30, 2024. The increase in non-performing
loans for the quarter ended December 31, 2024 related primarily to
one CRE office loan. Non-performing loans included $34.3 million
and $35.1 million of the guaranteed portion of SBA loans on
non-accrual status, representing 0.14% of total loans at both
December 31, 2024 and September 30, 2024.
Net Interest Income
Net interest income for the quarter ended December 31, 2024 was
$239.3 million, compared to $234.1 million for the immediately
preceding quarter ended September 30, 2024, and $217.2 million for
the quarter ended December 31, 2023. Interest income decreased by
$24.4 million for the quarter ended December 31, 2024, compared to
the immediately preceding quarter, while interest expense decreased
by $29.5 million.
The Company’s net interest margin, calculated on a
tax-equivalent basis, increased by 0.06% to 2.84% for the quarter
ended December 31, 2024, from 2.78% for the immediately preceding
quarter ended September 30, 2024. Factors impacting the net
interest margin for the quarter ended December 31, 2024 were:
- The average rate paid on interest bearing deposits declined to
3.75% for the quarter ended December 31, 2024, from 4.20% for the
quarter ended September 30, 2024. This decline reflected
initiatives taken to lower rates paid on deposits in response to
declines in the Fed Funds rate and the re-pricing of term
deposits.
- The average rate paid on FHLB advances declined to 3.82% for
the quarter ended December 31, 2024, from 4.27% for the quarter
ended September 30, 2024, reflecting the repayment or repricing of
predominantly shorter term high rate advances.
- The tax-equivalent yield on loans declined to 5.60% for the
quarter ended December 31, 2024, from 5.87% for the quarter ended
September 30, 2024 reflecting the impact of declining market rates
on the predominantly floating rate commercial portfolio.
- The tax-equivalent yield on investments declined to 5.31% for
the quarter ended December 31, 2024, from 5.62% for the quarter
ended September 30, 2024. This decrease resulted primarily from the
reset of coupon rates on variable rate securities.
Overall, the reduction in cost of interest bearing liabilities
outpaced the decline in the yield on interest earning assets.
Non-interest income and Non-interest
expense
Lease financing: Declines in both lease financing income and
depreciation of operating lease equipment for the year ended
December 31, 2024 compared to the year ended December 31, 2023
corresponded with the reduction in the portfolio of operating lease
equipment. Quarterly fluctuations in lease financing income may be
caused by variability in residual income.
Other non-interest income: Year-over-year increases in other
non-interest income include increases in loan related and
syndication fees, commercial card revenue and income related to
bank owned life insurance.
Employee compensation and benefits: Year-over-year increases in
compensation relate to investments we are making in people to
support future growth of the commercial business, regular merit
increases, and increased variable compensation cost, related in
part to an increase in the Company's stock price.
As discussed above, non-interest expense for the year and three
months ended December 31, 2023 included a $35.4 million FDIC
special assessment.
Railcar refurbishment costs of approximately $8 million that we
had expected to incur in the fourth quarter of 2024 did not
materialize, and are expected instead to occur in 2025.
Earnings Conference Call and
Presentation
A conference call to discuss quarterly results will be held at
9:00 a.m. ET on Wednesday, January 22, 2025 with Chairman,
President and Chief Executive Officer Rajinder P. Singh, Chief
Financial Officer Leslie N. Lunak and Chief Operating Officer
Thomas M. Cornish.
The earnings release and slides with supplemental information
relating to the release will be available on the Investor Relations
page under About Us on www.bankunited.com prior to the call. Due to
recent demand for conference call services, participants are
encouraged to listen to the call via a live Internet webcast at
https://ir.bankunited.com. To participate by telephone,
participants will receive dial-in information and a unique PIN
number upon completion of registration at
https://register.vevent.com/register/BI3806d72590724f8daf0fcb6899fb73f4.
For those unable to join the live event, an archived webcast will
be available on the Investor Relations page at
https://ir.bankunited.com approximately two hours following the
live webcast.
About BankUnited, Inc.
BankUnited, Inc., with total assets of $35.2 billion at December
31, 2024, is the bank holding company of BankUnited, N.A., a
national bank headquartered in Miami Lakes, Florida that provides a
full range of banking and related services to individual and
corporate customers through banking centers located in the state of
Florida, the New York metropolitan area and Dallas, Texas, and a
comprehensive suite of wholesale products to customers through an
Atlanta office focused on the Southeast region. BankUnited also
offers certain commercial lending and deposit products through
national platforms. For additional information, call (877) 779-2265
or visit www.BankUnited.com. BankUnited can be found on Facebook at
facebook.com/BankUnited.official, LinkedIn @BankUnited and on X
@BankUnited.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that reflect the Company’s current views with respect to, among
other things, future events and financial performance. The Company
generally identifies forward-looking statements by terminology such
as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “could,” “should,” “seeks,” “approximately,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,”
"forecasts" or the negative version of those words or other
comparable words. Any forward-looking statements contained in this
press release are based on the historical performance of the
Company and its subsidiaries or on the Company’s current plans,
estimates and expectations. The inclusion of this forward-looking
information should not be regarded as a representation by the
Company that the future plans, estimates or expectations
contemplated by the Company will be achieved. Such forward-looking
statements are subject to various risks and uncertainties and
assumptions, including (without limitation) those relating to the
Company’s operations, financial results, financial condition,
business prospects, growth strategy and liquidity, including as
impacted by external circumstances outside the Company's direct
control, such as but not limited to adverse events or conditions
impacting the financial services industry. If one or more of these
or other risks or uncertainties materialize, or if the Company’s
underlying assumptions prove to be incorrect, the Company’s actual
results may vary materially from those indicated in these
statements. These factors should not be construed as exhaustive.
The Company does not undertake any obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise. A number of
important factors could cause actual results to differ materially
from those indicated by the forward-looking statements. Information
on these factors can be found in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023, and any subsequent
Quarterly Report on Form 10-Q or Current Report on Form 8-K, which
are available at the SEC’s website (www.sec.gov).
BANKUNITED, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS -
UNAUDITED
(In thousands, except share
and per share data)
December 31,
2024
September 30,
2024
December 31,
2023
ASSETS
Cash and due from banks:
Non-interest bearing
$
12,078
$
14,746
$
14,945
Interest bearing
479,038
875,122
573,338
Cash and cash equivalents
491,116
889,868
588,283
Investment securities (including
securities reported at fair value of $9,130,244, $9,109,860 and
$8,867,354)
9,130,244
9,119,860
8,877,354
Non-marketable equity securities
206,297
237,172
310,084
Loans
24,297,980
24,398,703
24,633,684
Allowance for credit losses
(223,153
)
(228,249
)
(202,689
)
Loans, net
24,074,827
24,170,454
24,430,995
Bank owned life insurance
284,570
306,313
318,459
Operating lease equipment, net
223,844
241,625
371,909
Goodwill
77,637
77,637
77,637
Other assets
753,207
741,816
786,886
Total assets
$
35,241,742
$
35,784,745
$
35,761,607
LIABILITIES AND STOCKHOLDERS’
EQUITY
Liabilities:
Demand deposits:
Non-interest bearing
$
7,616,182
$
7,635,427
$
6,835,236
Interest bearing
4,892,814
5,171,865
3,403,539
Savings and money market
11,055,418
10,324,697
11,135,708
Time
4,301,289
4,724,236
5,163,995
Total deposits
27,865,703
27,856,225
26,538,478
FHLB advances
2,930,000
3,580,000
5,115,000
Notes and other borrowings
708,553
708,694
708,973
Other liabilities
923,168
832,022
821,235
Total liabilities
32,427,424
32,976,941
33,183,686
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share,
400,000,000 shares authorized; 74,748,370, 74,749,012 and
74,372,505 shares issued and outstanding
747
747
744
Paid-in capital
301,672
296,107
283,642
Retained earnings
2,796,440
2,749,314
2,650,956
Accumulated other comprehensive loss
(284,541
)
(238,364
)
(357,421
)
Total stockholders' equity
2,814,318
2,807,804
2,577,921
Total liabilities and stockholders'
equity
$
35,241,742
$
35,784,745
$
35,761,607
BANKUNITED, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME - UNAUDITED
(In thousands, except per
share data)
Three Months Ended
Years Ended
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Interest income:
Loans
$
336,816
$
355,220
$
346,255
$
1,389,897
$
1,318,217
Investment securities
121,872
127,907
125,993
497,666
488,212
Other
9,300
9,229
10,957
37,553
51,152
Total interest income
467,988
492,356
483,205
1,925,116
1,857,581
Interest expense:
Deposits
188,853
208,630
192,833
815,572
660,305
Borrowings
39,876
49,598
73,162
195,278
323,472
Total interest expense
228,729
258,228
265,995
1,010,850
983,777
Net interest income before provision for
credit losses
239,259
234,128
217,210
914,266
873,804
Provision for credit losses
11,001
9,248
19,253
55,072
87,607
Net interest income after provision for
credit losses
228,258
224,880
197,957
859,194
786,197
Non-interest income:
Deposit service charges and fees
4,988
5,016
5,201
20,226
20,906
Gain (loss) on investment securities,
net
804
127
617
2,127
(10,052
)
Lease financing
7,162
6,368
3,723
30,610
45,882
Other non-interest income
12,251
11,377
7,551
46,192
30,102
Total non-interest income
25,205
22,888
17,092
99,155
86,838
Non-interest expense:
Employee compensation and benefits
82,315
81,781
73,454
315,604
280,744
Occupancy and equipment
11,776
12,242
10,610
45,560
43,345
Deposit insurance expense
6,662
7,421
43,453
36,143
66,747
Professional fees
5,150
4,953
5,052
17,110
14,184
Technology
21,002
21,094
18,628
82,978
79,984
Depreciation of operating lease
equipment
4,352
4,666
10,476
26,127
44,446
Other non-interest expense
29,215
32,425
29,190
118,478
106,501
Total non-interest expense
160,472
164,582
190,863
642,000
635,951
Income before income taxes
92,991
83,186
24,186
316,349
237,084
Provision for income taxes
23,689
21,734
3,374
83,882
58,413
Net income
$
69,302
$
61,452
$
20,812
$
232,467
$
178,671
Earnings per common share, basic
$
0.92
$
0.82
$
0.27
$
3.10
$
2.39
Earnings per common share, diluted
$
0.91
$
0.81
$
0.27
$
3.08
$
2.38
BANKUNITED, INC. AND
SUBSIDIARIES
AVERAGE BALANCES AND
YIELDS
(Dollars in thousands)
Three Months Ended December
31,
Three Months Ended September
30,
Three Months Ended December
31,
2024
2024
2023
Average Balance
Interest (1)
Yield/ Rate
(1)(2)
Average Balance
Interest (1)
Yield/ Rate
(1)(2)
Average Balance
Interest (1)
Yield/ Rate
(1)(2)
Assets:
Interest earning assets:
Loans
$
24,152,602
$
339,725
5.60
%
$
24,299,898
$
358,259
5.87
%
$
24,416,013
$
349,603
5.69
%
Investment securities (3)
9,236,863
122,648
5.31
%
9,171,185
128,762
5.62
%
8,850,397
126,870
5.73
%
Other interest earning assets
785,947
9,300
4.71
%
722,366
9,229
5.08
%
801,833
10,957
5.42
%
Total interest earning assets
34,175,412
471,673
5.50
%
34,193,449
496,250
5.79
%
34,068,243
487,430
5.70
%
Allowance for credit losses
(235,211
)
(231,383
)
(198,984
)
Non-interest earning assets
1,405,129
1,444,410
1,715,795
Total assets
$
35,345,330
$
35,406,476
$
35,585,054
Liabilities and Stockholders'
Equity:
Interest bearing liabilities:
Interest bearing demand deposits
$
5,045,860
$
46,759
3.69
%
$
3,930,101
$
37,294
3.78
%
$
3,433,216
$
31,978
3.70
%
Savings and money market deposits
10,462,295
93,912
3.57
%
11,304,999
119,856
4.22
%
10,287,945
104,188
4.02
%
Time deposits
4,529,737
48,182
4.23
%
4,524,215
51,480
4.53
%
5,225,756
56,667
4.30
%
Total interest bearing deposits
20,037,892
188,853
3.75
%
19,759,315
208,630
4.20
%
18,946,917
192,833
4.04
%
FHLB advances
3,200,652
30,750
3.82
%
3,766,630
40,471
4.27
%
5,545,978
64,034
4.58
%
Notes and other borrowings
708,689
9,126
5.15
%
708,829
9,127
5.15
%
711,073
9,128
5.13
%
Total interest bearing liabilities
23,947,233
228,729
3.80
%
24,234,774
258,228
4.24
%
25,203,968
265,995
4.19
%
Non-interest bearing demand deposits
7,557,267
7,384,721
6,909,027
Other non-interest bearing liabilities
995,789
1,009,157
903,099
Total liabilities
32,500,289
32,628,652
33,016,094
Stockholders' equity
2,845,041
2,777,824
2,568,960
Total liabilities and stockholders'
equity
$
35,345,330
$
35,406,476
$
35,585,054
Net interest income
$
242,944
$
238,022
$
221,435
Interest rate spread
1.70
%
1.55
%
1.51
%
Net interest margin
2.84
%
2.78
%
2.60
%
___________________________ (1
)
On a tax-equivalent basis where
applicable
(2
)
Annualized
(3
)
At fair value except for securities held
to maturity
BANKUNITED, INC. AND
SUBSIDIARIES
AVERAGE BALANCES AND
YIELDS
(Dollars in thousands)
Years Ended December
31,
2024
2023
Average
Balance
Interest (1)
Yield/
Rate (1)
Average
Balance
Interest (1)
Yield/
Rate (1)
Assets:
Interest earning assets:
Loans
$
24,269,787
$
1,402,132
5.78
%
$
24,558,430
$
1,331,578
5.42
%
Investment securities (2)
9,064,521
501,006
5.53
%
9,228,718
491,851
5.33
%
Other interest earning assets
745,885
37,553
5.03
%
986,186
51,152
5.19
%
Total interest earning assets
34,080,193
1,940,691
5.69
%
34,773,334
1,874,581
5.39
%
Allowance for credit losses
(224,673
)
(171,618
)
Non-interest earning assets
1,502,205
1,749,981
Total assets
$
35,357,725
$
36,351,697
Liabilities and Stockholders'
Equity:
Interest bearing liabilities:
Interest bearing demand deposits
$
4,077,852
$
152,809
3.75
%
$
2,905,968
$
86,759
2.99
%
Savings and money market deposits
11,043,510
451,352
4.09
%
10,704,470
382,432
3.57
%
Time deposits
4,757,675
211,411
4.44
%
5,169,458
191,114
3.70
%
Total interest bearing deposits
19,879,037
815,572
4.10
%
18,779,896
660,305
3.52
%
FHLB advances
3,823,579
158,750
4.15
%
6,331,685
285,026
4.50
%
Notes and other borrowings
709,422
36,528
5.15
%
752,036
38,446
5.11
%
Total interest bearing liabilities
24,412,038
1,010,850
4.14
%
25,863,617
983,777
3.80
%
Non-interest bearing demand deposits
7,239,161
7,091,029
Other non-interest bearing liabilities
968,163
848,023
Total liabilities
32,619,362
33,802,669
Stockholders' equity
2,738,363
2,549,028
Total liabilities and stockholders'
equity
$
35,357,725
$
36,351,697
Net interest income
$
929,841
$
890,804
Interest rate spread
1.55
%
1.59
%
Net interest margin
2.73
%
2.56
%
___________________________
(1)
On a tax-equivalent basis where
applicable
(2)
At fair value except for securities held
to maturity
BANKUNITED, INC. AND
SUBSIDIARIES
EARNINGS PER COMMON
SHARE
(In thousands except share and
per share amounts)
Three Months Ended
Years Ended
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Basic earnings per common
share:
Numerator:
Net income
$
69,302
$
61,452
$
20,812
$
232,467
$
178,671
Distributed and undistributed earnings
allocated to participating securities
(1,598
)
(850
)
(930
)
(4,113
)
(3,565
)
Income allocated to common stockholders
for basic earnings per common share
$
67,704
$
60,602
$
19,882
$
228,354
$
175,106
Denominator:
Weighted average common shares
outstanding
74,750,961
74,753,372
74,384,185
74,694,303
74,493,898
Less average unvested stock awards
(1,075,384
)
(1,079,182
)
(1,130,715
)
(1,098,045
)
(1,168,004
)
Weighted average shares for basic earnings
per common share
73,675,577
73,674,190
73,253,470
73,596,258
73,325,894
Basic earnings per common share
$
0.92
$
0.82
$
0.27
$
3.10
$
2.39
Diluted earnings per common
share:
Numerator:
Income allocated to common stockholders
for basic earnings per common share
$
67,704
$
60,602
$
19,882
$
228,354
$
175,106
Adjustment for earnings reallocated from
participating securities
(198
)
6
—
(402
)
(275
)
Income used in calculating diluted
earnings per common share
$
67,506
$
60,608
$
19,882
$
227,952
$
174,831
Denominator:
Weighted average shares for basic earnings
per common share
73,675,577
73,674,190
73,253,470
73,596,258
73,325,894
Dilutive effect of certain share-based
awards
616,913
817,866
203,123
382,043
197,441
Weighted average shares for diluted
earnings per common share
74,292,490
74,492,056
73,456,593
73,978,301
73,523,335
Diluted earnings per common
share
$
0.91
$
0.81
$
0.27
$
3.08
$
2.38
BANKUNITED, INC. AND
SUBSIDIARIES
SELECTED RATIOS
At or for the Three Months
Ended
At or for the Years Ended
December 31,
December 31, 2024
September 30, 2024
December 31, 2023
2024
2023
Financial ratios (4)
Return on average assets
0.78
%
0.69
%
0.23
%
0.66
%
0.49
%
Return on average stockholders’ equity
9.7
%
8.8
%
3.2
%
8.5
%
7.0
%
Net interest margin (3)
2.84
%
2.78
%
2.60
%
2.73
%
2.56
%
Loans to deposits
87.2
%
87.6
%
92.8
%
87.2
%
92.8
%
Tangible book value per common share
$
36.61
$
36.52
$
33.62
$
36.61
$
33.62
December 31, 2024
September 30, 2024
December 31, 2023
Asset quality ratios
Non-performing loans to total loans
(1)(5)
1.03
%
0.92
%
0.52
%
Non-performing assets to total assets
(2)(5)
0.73
%
0.64
%
0.37
%
Allowance for credit losses to total
loans
0.92
%
0.94
%
0.82
%
Allowance for credit losses to commercial
loans (6)
1.37
%
1.41
%
1.29
%
Allowance for credit losses to
non-performing loans (1)(5)
89.01
%
101.68
%
159.54
%
Net charge-offs to average loans(7)
0.16
%
0.12
%
0.09
%
___________________________
(1)
We define non-performing loans to include
non-accrual loans and loans other than purchased credit
deteriorated and government insured residential loans that are past
due 90 days or more and still accruing. Contractually delinquent
purchased credit deteriorated and government insured residential
loans on which interest continues to be accrued are excluded from
non-performing loans.
(2)
Non-performing assets include
non-performing loans, OREO and other repossessed assets.
(3)
On a tax-equivalent basis.
(4)
Annualized for the three months ended
December 31, 2024, September 30, 2024 and December 31, 2023.
(5)
Non-performing loans and assets include
the guaranteed portion of non-accrual SBA loans totaling $34.3
million or 0.14% of total loans and 0.10% of total assets at
December 31, 2024, $35.1 million or 0.14% of total loans and 0.10%
of total assets at September 30, 2024, and $41.8 million or 0.17%
of total loans and 0.12% of total assets at December 31, 2023.
(6)
For purposes of this ratio, commercial
loans includes the C&I and CRE sub-segments, as well as
franchise and equipment finance. Due to their unique risk profiles,
MWL and municipal finance are excluded from this ratio.
(7)
Annualized for the nine months ended
September 30, 2024; ratios for December 31, 2024 and 2023 are
annual net charge-off rates.
December 31, 2024
September 30, 2024
December 31, 2023
Required to be Considered Well
Capitalized
BankUnited, Inc.
BankUnited, N.A.
BankUnited, Inc.
BankUnited, N.A.
BankUnited, Inc.
BankUnited, N.A.
Capital ratios
Tier 1 leverage
8.5
%
9.7
%
8.3
%
9.6
%
7.9
%
9.1
%
5.0
%
Common Equity Tier 1 ("CET1") risk-based
capital
12.0
%
13.7
%
11.8
%
13.6
%
11.4
%
13.1
%
6.5
%
Total risk-based capital
14.1
%
14.6
%
13.9
%
14.6
%
13.4
%
13.9
%
10.0
%
Tangible Common Equity/Tangible Assets
7.8
%
N/A
7.6
%
N/A
7.0
%
N/A
N/A
Non-GAAP Financial
Measures
Tangible book value per common share is a non-GAAP financial
measure. Management believes this measure is relevant to
understanding the capital position and performance of the Company.
Disclosure of this non-GAAP financial measure also provides a
meaningful basis for comparison to other financial institutions as
it is a metric commonly used in the banking industry. The following
table reconciles the non-GAAP financial measurement of tangible
book value per common share to the comparable GAAP financial
measurement of book value per common share at the dates indicated
(in thousands except share and per share data):
December 31, 2024
September 30, 2024
December 31, 2023
Total stockholders’ equity
$
2,814,318
$
2,807,804
$
2,577,921
Less: goodwill and other intangible
assets
77,637
77,637
77,637
Tangible stockholders’ equity
$
2,736,681
$
2,730,167
$
2,500,284
Common shares issued and outstanding
74,748,370
74,749,012
74,372,505
Book value per common share
$
37.65
$
37.56
$
34.66
Tangible book value per common share
$
36.61
$
36.52
$
33.62
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122051331/en/
BankUnited, Inc. Investor Relations: Leslie N. Lunak,
786-313-1698
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