In This Article:
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Earnings Per Share (EPS): $0.91 for Q4 2024, up from $0.81 in Q3 2024.
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Net Income: $69.3 million for Q4 2024.
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Net Interest Margin (NIM): Increased to 2.84% from 2.78% in the previous quarter.
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Return on Assets (ROA): 78 basis points for Q4 2024.
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Return on Equity (ROE): 9.7% for Q4 2024.
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Cost of Deposits: Declined to 2.72% from 3.06% in the previous quarter.
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Loan to Deposit Ratio: 87.2% at the end of 2024, down from 92.8% a year ago.
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Net Charge Offs: 16 basis points for the year.
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Non-Performing Assets (NPA): 63 basis points, excluding guaranteed SPA loans.
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Common Equity Tier 1 (CET1) Ratio: 12%.
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Tangible Common Equity to Tangible Assets (TCE/TA) Ratio: 7.8%.
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Book Value Per Share: $36.61.
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Total Deposits Growth: $1.3 billion for the year.
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Non-Brokered Deposits Growth: $1.4 billion for the year.
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Wholesale Funding Reduction: Down $2.3 billion for the year.
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Commercial and Industrial (C&I) and Commercial Real Estate (CRE) Loan Growth: $470 million for the year.
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Residential and Non-Core Loan Portfolio Decline: $959 million for the year.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BankUnited Inc (NYSE:BKU) reported a strong quarter with EPS growing to $0.91, significantly above the consensus estimate of $0.73.
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Net interest margin improved by 6 basis points to 2.84%, exceeding internal expectations.
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The company achieved a notable reduction in the cost of deposits, with interest-bearing deposit costs declining by 45 basis points.
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Non-interest bearing demand deposits (NIDDA) grew by $781 million for the year, contributing to a healthier deposit mix.
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BankUnited Inc (NYSE:BKU) maintained a solid credit profile with net charge-offs at 16 basis points, which is considered strong for a commercial bank.
Negative Points
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Loan growth was impacted by higher-than-expected payoffs, leading to a $101 million decline in loans for the quarter.
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The company experienced a $26 million increase in non-performing loans due to one office loan, highlighting potential vulnerabilities in the office loan portfolio.
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There is increased competition in the lending market, leading to tighter spreads and potential pressure on margins.
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The company anticipates some pressure on net interest margin in the first quarter of 2025 due to the roll-off of hedges.
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BankUnited Inc (NYSE:BKU) faces uncertainties related to policy changes and competition, which could impact future performance.
Q & A Highlights
Q: Can you provide guidance on net interest income (NII) growth for the upcoming year? A: Leslie Lunak, CFO: Last year, NII grew by 5%. For next year, we are projecting mid to high single-digit growth.