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BankUnited, Inc.’s BKU fourth-quarter 2024 earnings of 91 cents per share handily surpassed the Zacks Consensus Estimate of 71 cents. The bottom line compares favorably with 27 cents in the prior-year quarter.
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Results were aided by growth in net interest income (NII) and non-interest income alongside lower non-interest expenses and provisions. Also, stable deposits were another positive. However, a fall in loan balance and weak asset quality were the undermining factors. Shares of BKU declined 1.4% during Wednesday’s trading session in light of these negatives.
Net income totaled $69.3 million, jumping from $20.8 million a year ago. Our estimate for the metric was $50.9 million.
For 2024, earnings per share (EPS) of $3.08 beat the Zacks Consensus Estimate of $2.89. The figure represents a rise of 29.4% from the previous year. Net income was $232.5 million, up from $178.7 million. Our estimate for net income was $214 million.
BankUnited’s Revenues Grow, Expenses Decline
Quarterly net revenues were $264.5 million, up 12.9% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $259.7 million.
Full-year net revenues were $1.01 billion, up 5.5% year over year. The top line met the Zacks Consensus Estimate.
NII was $239.3 million, growing 10.2%. We projected NII to be $234.8 million.
Net interest margin (NIM) expanded 24 basis points (bps) to 2.84%. Our estimate for the metric was 2.78%.
Non-interest income of $25.2 million jumped 47.5% from the prior-year quarter. The rise was driven by an increase in lease financing and other non-interest income. We had projected a non-interest income of $22.1 million.
Non-interest expenses fell 15.9% to $160.5 million. The decline was driven by a fall in deposit insurance expenses and the depreciation of operating lease equipment. Our estimate for non-interest expenses was $181.9 million.
As of Dec. 31, 2024, total loans were $24.3 billion, down marginally from the prior quarter. Total deposits amounted to $27.9 billion, stable with the prior quarter. Our estimates for total loans and total deposits were $25.4 billion and $26.5 billion, respectively.
BKU’s Credit Quality Deteriorates
In the reported quarter, BankUnited recorded a provision of credit losses of $11 million, which plunged 42.9% from the prior-year quarter. We had expected the metric to be $6.2 million.
As of Dec. 31, 2024, the ratio of net charge-offs to average loans was 0.16%, up 7 bps year over year. Also, the non-performing assets ratio was 0.73%, jumping 36 bps.