BankUnited, Inc. Reports 2024 Results

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Insights

BankUnited delivered a robust performance in Q4 2024, with $69.3 million in net income ($0.91 per share), marking substantial improvements from both the previous quarter and year-ago period. The results demonstrate successful execution of strategic initiatives focused on enhancing core profitability.

Key highlights showcase the bank's strengthening fundamentals:

Net interest margin expanded to 2.84%, up 24 basis points year-over-year, driven by successful deposit cost management
Average cost of interest-bearing deposits decreased significantly to 3.75% from 4.20% in Q3
Non-interest bearing deposits grew by $173 million quarter-over-quarter, now representing 27% of total deposits
Wholesale funding reduced by $346 million in Q4, totaling $2.3 billion reduction for 2024

However, there are some areas requiring monitoring:

Non-performing loans increased by $26.2 million, primarily due to one CRE office loan
The NPL ratio rose to 0.73% from 0.64% in Q3
Office CRE exposure shows a weighted average LTV of 65.2%, higher than the overall CRE portfolio average of 55.0%

The bank maintains a strong capital position with 12.0% CET1 ratio and improving tangible book value per share of $36.61. The strategic reduction in higher-risk portfolios and focus on core commercial relationships positions BankUnited well for sustainable growth, though continued vigilance on credit quality is warranted.

01/22/2025 - 06:45 AM

MIAMI LAKES, Fla.--(BUSINESS WIRE)-- 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.		Required to be Considered Well Capitalized
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

Source: BankUnited, Inc.

FAQ

What was BKU's net income for Q4 2024?

BankUnited reported net income of $69.3 million ($0.91 per diluted share) for Q4 2024.

How did BKU's full-year 2024 performance compare to 2023?

BKU's full-year net income increased to $232.5 million ($3.08 per share) in 2024, compared to $178.7 million ($2.38 per share) in 2023.

What was BKU's net interest margin in Q4 2024?

BKU's net interest margin expanded to 2.84% in Q4 2024, up from 2.78% in Q3 2024 and 2.60% in Q4 2023.

How much did BKU's total loans change in Q4 2024?

BKU's total loans declined by $101 million in Q4 2024.

What was BKU's CET1 ratio at the end of 2024?

BKU's CET1 ratio was 12.0% at December 31, 2024.

How did BKU's deposit costs change in Q4 2024?

BKU's average cost of total deposits declined to 2.72% in Q4 2024 from 3.06% in Q3 2024.

BankUnited, Inc. Reports 2024 Results

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BankUnited, Inc. Reports 2024 Results

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