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]

Financial Performance - For Q4 2024, BankUnited reported net income of $69.3 million, or $0.91 per diluted share, up from $61.5 million, or $0.81 per diluted share in Q3 2024, and $20.8 million, or $0.27 per diluted share in Q4 2023[3]. - For the year ended December 31, 2024, net income was $232.5 million, or $3.08 per diluted share, compared to $178.7 million, or $2.38 per diluted share in 2023[3]. - Net income for the three months ended December 31, 2024, was $69,302 thousand, an increase of 12.0% from $61,452 thousand in the previous quarter[25]. - Basic earnings per common share increased to $3.10 in 2024 from $2.39 in 2023, with net income rising to $232.47 million from $178.67 million[34]. Interest Income and Margin - Net interest income for the quarter ended December 31, 2024, was $239.3 million, an increase of 2.5% from $234.1 million in the previous quarter and up 10.2% from $217.2 million in the same quarter last year[11]. - The net interest margin improved to 2.84% in Q4 2024, up from 2.78% in Q3 2024 and 2.60% in Q4 2023[5]. - The average rate paid on interest-bearing deposits declined to 3.75% for the quarter ended December 31, 2024, down from 4.20% in the previous quarter[17]. - Total interest income for the three months ended December 31, 2024, was $467,988 thousand, a decrease of 4.9% from $492,356 thousand in the previous quarter[25]. - Interest rate spread for the three months ended December 31, 2024, was 1.70%, compared to 1.55% in the previous quarter, indicating improved profitability on interest-earning assets[28]. - Net interest margin for the three months ended December 31, 2024, was 2.84%, up from 2.78% in the previous quarter, suggesting better efficiency in generating income from assets[28]. Loan and Deposit Trends - Total loans declined by $101 million in Q4 2024, with core commercial real estate (CRE) and commercial & industrial (C&I) segments growing by $185 million[5]. - Average non-interest bearing demand deposits (NIDDA) grew by $173 million in Q4 2024 compared to Q3 2024 and by $648 million compared to Q4 2023[5]. - Total deposits grew by $1.3 billion for the year ended December 31, 2024, with non-brokered deposits increasing by $1.4 billion[5]. - The loan to deposit ratio decreased to 87.2% at December 31, 2024, down from 87.6% at September 30, 2024[6]. - The company reported a loans to deposits ratio of 87.2% in 2024, consistent with the previous year, indicating stable lending practices[36]. Asset Quality and Credit Losses - The allowance for credit losses (ACL) to total loans ratio was 0.92% at December 31, 2024, with net charge-offs for the year at 0.16%[6][9]. - Non-performing loans totaled $250.7 million, representing 1.03% of total loans at December 31, 2024, up from $224.5 million or 0.92% at September 30, 2024[10]. - The provision for credit losses was $12.3 million for the quarter ended December 31, 2024, compared to $9.1 million in the previous quarter[10]. - Provision for credit losses decreased to $11,001 thousand for the three months ended December 31, 2024, down from $19,253 thousand in the same period last year, indicating improved credit quality[25]. - Criticized and classified commercial loans declined by $75.1 million for the quarter ended December 31, 2024[10]. Capital and Equity - The capital position remained strong, with a common equity tier 1 (CET1) ratio of 12.0% at December 31, 2024[6]. - Book value per common share increased to $37.65 at December 31, 2024, compared to $34.66 at December 31, 2023[6]. - Total stockholders' equity increased to $2,814,318,000 as of December 31, 2024, compared to $2,577,921,000 on December 31, 2023, reflecting a growth of approximately 9.2%[41]. - Tangible stockholders' equity reached $2,736,681,000 as of December 31, 2024, up from $2,500,284,000 a year earlier, indicating a year-over-year increase of about 9.5%[41]. - The tangible book value per common share increased to $36.61 in 2024 from $33.62 in 2023, reflecting growth in shareholder value[36]. Future Outlook - The company plans to hold a conference call on January 22, 2025, to discuss quarterly results[16].

Core Viewpoint - BankUnited, Inc. (BKU) is expected to report quarterly earnings of $0.71 per share, a decline of 1.4% year-over-year, with revenues projected at $259.7 million, reflecting a 10.8% increase compared to the previous year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [2] - Revisions to earnings estimates are crucial as they serve as indicators for predicting investor actions regarding the stock [3] Key Financial Metrics - Analysts project 'Average Interest-Earning Assets' to reach $34.41 billion, up from $34.07 billion year-over-year [5] - 'Total non-performing assets' are expected to be $228.82 million, significantly higher than the previous year's $130.58 million [5] - 'Total non-performing loans' are estimated at $225.96 million, compared to $127.04 million in the same quarter last year [6] - 'Net interest income before provision for credit losses' is projected at $237.17 million, up from $217.21 million year-over-year [6] - 'Total Non-Interest Income' is expected to reach $22.54 million, compared to $17.09 million last year [7] - 'Other non-interest income' is projected at $11.91 million, an increase from $7.37 million year-over-year [7] - 'Lease financing' is expected to be $5.41 million, up from $3.72 million in the same quarter last year [8] - 'Net Interest Income (FTE basis)' is projected at $239.39 million, compared to $221.44 million in the same quarter last year [8] - 'Deposit service charges and fees' are expected to be $5.13 million, slightly down from $5.39 million year-over-year [9] Market Performance - BankUnited shares have returned +5.2% over the past month, outperforming the Zacks S&P 500 composite, which declined by -2.1% [10] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance in the near future [10]

Core Viewpoint - BankUnited, Inc. reported strong Q3 earnings, surpassing expectations, but faces challenges with declining non-interest income and rising expenses [2][4][7]. Financial Performance - Q3 2024 earnings per share were 81 cents, exceeding the Zacks Consensus Estimate of 73 cents and up from 63 cents in the prior year [2]. - Net income reached $61.5 million, a 30.8% increase year over year, compared to an estimate of $54.4 million [3]. - Quarterly net revenues were $257 million, a 6% increase year over year, but fell short of the Zacks Consensus Estimate of $258.7 million [4]. Key Revenue Components - Net Interest Income (NII) was $234.1 million, growing 9% year over year, slightly above the expected $230.9 million [5]. - Net Interest Margin (NIM) expanded by 22 basis points to 2.78% [6]. - Non-interest income decreased by 17.4% to $22.9 million, attributed to a decline in lease financing [6]. Expense Analysis - Non-interest expenses rose 11.9% to $164.6 million, exceeding the estimate of $161.3 million [7]. - Total loans decreased by 1% to $24.4 billion, while total deposits increased marginally to $27.9 billion [7]. Credit Quality - Provisions for credit losses were $9.2 million, down 72% year over year, significantly lower than the expected $17.6 million [8]. - The ratio of net charge-offs to average loans was 0.12%, up 5 basis points year over year, and the non-performing assets ratio increased to 0.64%, up 24 basis points [8]. Capital and Profitability - Common Equity Tier 1 risk-based capital ratio improved to 11.8%, up from 11.4% [9]. - Return on average assets rose to 0.69%, compared to 0.52% in the previous year, and return on average stockholders' equity increased to 8.8% from 7.2% [9]. Future Outlook - Management anticipates a mid-single-digit increase in NII for 2024 and expects loan growth in the mid-single digits [11][12]. - Non-interest expenses are projected to grow in the upper mid-single digits for 2024, excluding a special assessment charge [13]. - The effective tax rate is expected to be 26.5% for 2024, excluding discrete items [14]. Market Position - Estimates for BankUnited have trended downward recently, with a consensus estimate shift of -8.06% [15][16]. - The stock currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [18].