BankUnited, Inc. (BKU) shares soared 9.8% in the last trading session to close at $32.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This company is expected to post quarterly earnings of $0.74 per share in its upcom ...

BankUnited, Inc. (BKU) has hiked its quarterly dividend. The company announced a quarterly cash dividend of 31 cents per share, marking an increase of 6.8% from the prior payout. This dividend will be paid out on April 30, 2025, to shareholders of record as of April 11.Prior to this, BKU hiked its dividend 7.4% to 29 cents per share on Feb. 26, 2024. The company has increased its dividend payout five times in the past five years and has five-year annualized dividend growth of 6.40%. Currently, the company’s ...

Credit Risk and Allowance for Credit Losses - The company's credit loss models may be inaccurate, potentially requiring an increase in the Allowance for Credit Losses (ACL), which would decrease net income and capital[113]. - The allowance for credit losses (ACL) is a critical audit matter, requiring extensive judgment and complex estimations based on historical data and economic forecasts[378]. - The ACL is adjusted through the provision for credit losses to reflect the amount of amortized cost basis not expected to be collected[438]. - Expected credit losses are estimated on a collective basis for groups of loans sharing similar risk characteristics, with factors including product type and historical loss patterns considered[442]. - The Company expects to collect the amortized cost basis of government insured residential loans, resulting in an ACL of zero for these loans[451]. - Qualitative adjustments to the ACL may be made based on management's judgment regarding factors not captured by quantitative calculations[452]. - The Company uses a 2-year reasonable and supportable forecast period for estimating the ACL, reverting to long-term mean losses thereafter[445]. - For commercial loans, increases in unemployment and stock market volatility are significant factors impacting the ACL[447]. - The commercial real estate model incorporates variables such as unemployment rates and real GDP growth, affecting the reserve levels[446]. - Loans are charged off against the ACL when deemed uncollectible, with specific timelines for residential and commercial loans established[441]. - The Company estimates expected credit losses for off-balance sheet credit exposures using similar methodologies as for loans, considering the likelihood of additional funding[454]. Economic and Market Conditions - A significant portion of the company's loans are secured by residential or commercial real estate, making them sensitive to changes in real estate values and market dynamics[115]. - The geographic concentration in Florida and the New York Tri-State area makes the company susceptible to local economic conditions, which could impact borrowers' ability to repay loans[121]. - Economic uncertainty and inflation trends could negatively impact loan demand and borrowers' ability to repay obligations[163]. - The U.S. Government's sovereign credit rating was downgraded in 2023, which could adversely affect economic conditions and the company's financial performance[169]. - Future downgrades of the U.S. credit rating could negatively impact the company's business and financial condition[169]. Financial Performance - Net income for 2024 was $232,467,000, representing a 30.1% increase from $178,671,000 in 2023[396]. - Total interest income rose to $1,925,116,000 in 2024, up 3.6% from $1,857,581,000 in 2023[396]. - Net interest income after provision for credit losses was $859,194,000 in 2024, up 9.3% from $786,197,000 in 2023[396]. - Non-interest income increased to $99,155,000 in 2024, a rise of 14.2% from $86,838,000 in 2023[396]. - Comprehensive income for 2024 was $305,347,000, compared to $259,155,000 in 2023, reflecting a 17.8% increase[399]. - Earnings per common share (diluted) rose to $3.08 in 2024 from $2.38 in 2023, marking a 29.3% increase[396]. - The balance of retained earnings increased to $2,650,956 in 2024 from $2,551,400 in 2023, indicating growth in accumulated profits[408]. Operational and Regulatory Risks - The company faces operational risks from reliance on analytical models for forecasting, which may prove inadequate during market stress, impacting strategic planning and risk management[134]. - Cybersecurity incidents pose a significant risk to BankUnited, as unauthorized occurrences could jeopardize the confidentiality and integrity of sensitive information[141][142]. - The company is dependent on third-party service providers for critical business infrastructure, and any failures or disruptions from these providers could materially harm operations[140]. - The company is subject to comprehensive regulatory requirements that could impose additional costs and operational constraints, impacting profitability[152]. - Changes in political administrations may introduce new regulations that could significantly affect the company's operating environment and require rapid adjustments[154]. - The company may face increased deposit insurance premiums if the FDIC's funding requirements are not met, adversely affecting financial condition[160]. - The company is exposed to risks of noncompliance with anti-money laundering laws, which could lead to significant fines and operational restrictions[157]. - The company is subject to evolving privacy laws, and any violations could lead to reputational damage and financial penalties[162]. - Adverse public perceptions regarding the company's practices could harm its reputation and business relationships, impacting overall performance[164]. Liquidity and Funding - The company faces liquidity risk, requiring sufficient liquidity to meet customer loan requests and deposit withdrawals under normal and extraordinary conditions[127]. - Material unexpected deposit outflows could jeopardize the company's ability to maintain sufficient liquidity for normal operations[128]. - A substantial portion of BankUnited's deposits are commercial deposits, many of which are uninsured, making them more susceptible to outflows during times of stress[130][131]. - Loss of deposits or a change in deposit mix could lead to increased funding costs, reducing net interest margin and net income, particularly in a sustained high interest rate environment[132]. - BankUnited's ability to access operating or contingent liquidity is significantly dependent on the availability of liquidity from the FRB and FHLB, which could be adversely impacted by changes in interest rates or economic conditions[129]. Interest Rate Risk - The company's net interest income is significantly impacted by market interest rates, with changes in rates affecting the spread between interest-earning assets and interest-bearing liabilities[125]. - A flat or inverted yield curve may limit the company's ability to add higher-yielding assets, placing downward pressure on net interest margin and income[125]. - The company is managing interest rate risk through monitoring and hedging, but predictive modeling may not accurately forecast future movements in interest rates[126]. Investment Portfolio - The performance of the company's investment portfolio is subject to risks related to the underlying collateral, primarily commercial and residential real estate[119]. - The carrying value of investment securities available for sale was $9.101 billion as of December 31, 2024, compared to $8.834 billion in 2023, indicating an increase of 3.0%[496]. - The investment securities portfolio included $9.507 billion in amortized cost as of December 31, 2024, with a fair value of $9.101 billion[498]. - As of December 31, 2024, the investment securities available for sale portfolio had a net unrealized loss position of $405.6 million, an improvement of $129.2 million from $534.8 million at December 31, 2023[505]. - The unrealized losses were primarily due to a sustained higher interest rate environment, with fixed rate securities accounting for the majority of these losses[505]. - The Company monitored 476 securities in unrealized loss positions, with 135 of these having an insignificant impairment totaling approximately $1.2 million[504]. - The total fair value of U.S. Treasury securities was $167.5 million, with unrealized losses of $12.0 million as of December 31, 2024[501]. - The total fair value of U.S. Government agency and sponsored enterprise residential MBS was $1.83 billion, with unrealized losses of $26.5 million[501]. Internal Controls and Audit - The company reported that its internal control over financial reporting was effective as of December 31, 2024, based on the evaluation framework established by COSO[369]. - Deloitte & Touche LLP expressed an unqualified opinion on the company's consolidated financial statements for the years ended December 31, 2024, 2023, and 2022[373]. - The effectiveness of internal control over financial reporting was audited and found to be effective as of December 31, 2024[386]. - The company’s management is responsible for maintaining effective internal control over financial reporting[388]. - The audit procedures included testing the effectiveness of controls over the ACL and evaluating the reasonableness of qualitative adjustments[383].

Core Viewpoint - BankUnited, Inc. (BKU) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - BankUnited is expected to earn $3.13 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 1.6% [8]. - Over the past three months, the Zacks Consensus Estimate for BankUnited has risen by 4.4%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of BankUnited to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - BankUnited's shares have increased by 36% over the past year, indicating strong performance in the regional banking sector [1] - The bank's improving deposit performance has positively impacted its results, contributing to the stock price increase [1] - Since November, there has been optimism regarding a more favorable regulatory environment, further supporting the stock's performance [1] Company Performance - The significant gain of 36% in BankUnited's shares reflects a solid year for the company [1] - The improvement in deposit performance is a key driver of the bank's positive results [1] Market Sentiment - There is growing optimism in the market regarding regulatory changes that may benefit regional banks like BankUnited [1]

Core Insights - BankUnited, Inc. (BKU) reported fourth-quarter 2024 earnings of 91 cents per share, exceeding the Zacks Consensus Estimate of 71 cents and significantly up from 27 cents in the prior-year quarter [1][2] - The company's net income for the quarter was $69.3 million, a substantial increase from $20.8 million a year ago, and also surpassed the estimate of $50.9 million [3] - For the full year 2024, earnings per share (EPS) reached $3.08, beating the Zacks Consensus Estimate of $2.89, representing a 29.4% increase from the previous year [3] Financial Performance - Quarterly net revenues were $264.5 million, reflecting a 12.9% year-over-year growth and surpassing the Zacks Consensus Estimate of $259.7 million [4] - Full-year net revenues totaled $1.01 billion, up 5.5% year over year, meeting the Zacks Consensus Estimate [4] - Net interest income (NII) for the quarter was $239.3 million, growing 10.2% and exceeding the projected $234.8 million [4] - Non-interest income increased to $25.2 million, a 47.5% rise from the prior-year quarter, driven by lease financing and other non-interest income [5] Expense Management - Non-interest expenses decreased by 15.9% to $160.5 million, attributed to lower deposit insurance expenses and depreciation of operating lease equipment, which was better than the estimate of $181.9 million [5] - The net interest margin (NIM) expanded by 24 basis points to 2.84%, surpassing the estimate of 2.78% [4] Loan and Deposit Trends - As of December 31, 2024, total loans were $24.3 billion, a slight decrease from the prior quarter, while total deposits remained stable at $27.9 billion [6] Credit Quality - The provision for credit losses was $11 million, down 42.9% from the prior-year quarter, although it was higher than the expected $6.2 million [7] - The ratio of net charge-offs to average loans was 0.16%, an increase of 7 basis points year over year, and the non-performing assets ratio rose to 0.73%, up 36 basis points [7] Capital and Profitability Ratios - The Common Equity Tier 1 risk-based capital ratio improved to 12% from 11.4%, and the total risk-based capital ratio increased to 14.1% from 13.4% [8] - Return on average assets was 0.78%, up from 0.23% in the year-earlier quarter, while return on average stockholders' equity rose to 9.7% from 3.2% [8] Market Outlook - BankUnited's strategies to grow fee income, maintain low-cost deposits, and benefit from relatively higher interest rates are expected to support revenue growth [9] - However, rising expenses and significant exposure to commercial real estate and residential loans may pose challenges [9]

Financial Data and Key Metrics Changes - The company reported its fourth quarter and fiscal year 2024 results, indicating a focus on financial performance metrics [1][3] - Forward-looking statements were made regarding future events and financial performance, highlighting the company's current views [4][5] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content [1][3] Market Data and Key Metrics Changes - Information on market data and key metrics changes was not included in the provided content [1][3] Company Strategy and Development Direction and Industry Competition - The company emphasized its strategic direction and competitive positioning within the industry, although specific strategies were not detailed in the available content [1][3] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the risks and uncertainties associated with forward-looking statements, reflecting on the operating environment and future outlook [4][5] Other Important Information - The conference call included a reminder about the recording of the session and the presence of key company executives [1][2][3] Q&A Session Summary Question: Inquiry about future financial performance - Management provided insights into the company's expectations for future financial performance, emphasizing the importance of historical performance and current plans [4][5]

Core Insights - BankUnited, Inc. reported a revenue of $264.46 million for the quarter ended December 2024, reflecting a year-over-year increase of 12.9% [1] - The earnings per share (EPS) for the quarter was $0.91, up from $0.72 in the same quarter last year, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $259.7 million by 1.83%, while the EPS surpassed the consensus estimate of $0.71 by 28.17% [1] Financial Performance Metrics - Net Interest Margin stood at 2.8%, aligning with the average estimate from four analysts [4] - Net charge-offs to average loans were reported at 0.2%, matching the average estimate from three analysts [4] - Average Interest-Earning Assets totaled $34.18 billion, slightly below the average estimate of $34.41 billion from three analysts [4] - Total non-performing loans amounted to $250.70 million, exceeding the average estimate of $225.96 million from two analysts [4] - Net interest income before provision for credit losses was $239.26 million, surpassing the average estimate of $237.17 million from four analysts [4] - Total Non-Interest Income reached $25.21 million, above the average estimate of $22.54 million from four analysts [4] - Other non-interest income was reported at $12.25 million, exceeding the average estimate of $11.91 million from three analysts [4] - Lease financing income was $7.16 million, compared to the average estimate of $5.41 million from three analysts [4] - Net Interest Income (FTE basis) was $242.94 million, above the average estimate of $239.39 million from three analysts [4] - Deposit service charges and fees were reported at $4.99 million, slightly below the average estimate of $5.13 million from three analysts [4] Stock Performance - BankUnited's shares have returned +3.9% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Q4 2024 – Supplemental Information January 22, 2025 1 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of BankUnited, Inc. ("BankUnited," "BKU" or the "Company") 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," "con ...

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]