Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yiel ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Class Trading Symbol Name of Exchange on Which Registered Common Stock, $0.01 Par Value BKU New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 Commission File Number: 001-35039 BankUnited, Inc. (Exact name of registrant as speci ...

Group 1: Company Overview - BankUnited, Inc. currently holds a Zacks Rank of 2 (Buy), indicating a favorable investment outlook [2] - The company has a Momentum Style Score of A, suggesting strong momentum characteristics [7] Group 2: Performance Metrics - Shares of BankUnited, Inc. have increased by 36.53% over the past quarter and 36.03% over the last year, significantly outperforming the S&P 500, which moved 11.39% and 24.26% respectively [4] - Over the past week, shares are up 16.53%, while the Zacks Banks - Major Regional industry has increased by 4.12% during the same period [9] - The monthly price change for BankUnited is 30.7%, compared to the industry's performance of 11.07% [9] Group 3: Earnings Outlook - In the last two months, 3 earnings estimates for BankUnited have moved higher, while 2 have moved lower, resulting in a consensus estimate increase from $2.74 to $2.83 [11] - For the next fiscal year, 5 estimates have moved upwards with no downward revisions [11] Group 4: Trading Volume - BankUnited's average 20-day trading volume is 929,325 shares, which is a useful indicator for assessing price movements [10]

Core Viewpoint - BankUnited, Inc. (BKU) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings potential and likely favorable impact on its stock price [1][2]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for BankUnited, with the Zacks Consensus Estimate increasing by 3.6% over the past three months [5]. - The company is projected to earn $2.83 per share for the fiscal year ending December 2024, reflecting no year-over-year change [10]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - BankUnited's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for near-term price movement [11]. Institutional Investor Influence - Changes in earnings estimates are closely correlated with stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [3][9]. - The Zacks rating system is designed to help individual investors navigate the complexities of stock ratings, which can often be driven by subjective factors [12].

Earnings were aided by an increase in deposits. However, lower net interest income (NII) and non-interest income, loan balance, along with higher expenses, were the undermining factors. Quarterly net revenues were $250.2 million, down 4.5% year over year. However, the top line surpassed the Zacks Consensus Estimate of $243.5 million. Non-interest expenses rose 8.6% to $157.7 million. The increase was mainly due to a rise in all the components except depreciation of operating lease equipment. Our estimate fo ...

Financial Data and Key Metrics - EPS for Q2 2024 came in at $0.72, beating the consensus estimate of around $0.65 [4] - Net interest margin (NIM) increased by 15 basis points to 2.72% from 2.57% in the previous quarter [37] - Non-interest-bearing demand deposits (NIDDA) grew by $826 million, contributing to an 11% quarter-over-quarter increase [8] - Total deposits grew by $736 million, with non-brokered deposits increasing by $1.3 billion [5][8] - Loan yields increased from 5.78% to 5.85%, driven by higher-yielding new production [49] - The allowance for credit losses (ACL) to loans ratio increased from 90 basis points to 92 basis points [32] Business Line Performance - Commercial and industrial (C&I) loans grew by $475 million, while commercial real estate (CRE) loans grew by $114 million [26] - Residential loans declined by $212 million, and the leasing business continued to run off [6][26] - The CRE portfolio remained stable at 24% of total loans, with a weighted average loan-to-value (LTV) ratio of 56% and a debt service coverage ratio (DSCR) of 1.77 [27] - The office CRE portfolio showed improvement in credit metrics across 9 out of 16 submarkets, with a weighted average LTV of 66% and DSCR of 1.59 [10][11] Market Performance - Florida markets remained strong, with year-over-year rent increases in most major submarkets and declining sublease activity [12] - The New York Tri-State area saw encouraging signs in leasing activity, with 15.5 million square feet leased in the first half of 2024, up 9% year-over-year [46] - The Tampa market showed over 1.4 million square feet of lease space, with only 6% sublease activity [12] Strategy and Industry Competition - The company is focused on transforming its balance sheet, with significant growth in NIDDA and a reduction in wholesale funding by $1.2 billion [5][21] - The company is shifting its portfolio composition towards higher-yielding assets, with a focus on C&I and CRE loans [26][37] - The company is investing in commercial card and capital markets products, which are beginning to show noticeable results [22] - The company is maintaining a conservative approach to CRE exposure, with CRE loans at 24% of total loans and 165% of total risk-based capital [27] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the pipeline for new relationships and expects mid-single-digit growth in noninterest expense for the year [16][40] - The company expects the NIM to expand further in the second half of 2024, potentially reaching the high 2% range [48] - Management highlighted the importance of deposit growth, particularly NIDDA, for the company's success [40] - The company is cautious about the impact of seasonality on deposit growth in the second half of the year [23] Other Important Information - The company reduced its wholesale funding to levels last seen in early 2022, despite the current high Fed funds rate [21] - The company added Ernie Diaz, a former TD Bank executive, to its team, bringing new ideas and expertise [41] - The company expects the ACL to gradually build to around 1% of loans by the end of 2024, driven by portfolio composition changes [15] Q&A Summary Question: Deposit Growth and Seasonality - The company expects mid-teens growth in NIDDA, with seasonality likely to dampen growth in the second half of the year [53][137] - The title business, which contributed significantly to deposit growth, is expected to benefit from potential mortgage refinancing booms in the future [134] Question: Loan Yields and Portfolio Composition - New loan yields are around 7.5% to 8%, while residential portfolio yields are in the mid-3% range [59] - The company expects loan yields to increase by 5 to 10 basis points as the portfolio shifts towards higher-yielding C&I and CRE loans [75] Question: Office CRE Portfolio and Reserves - The office CRE portfolio has a reserve of 2.47%, with management confident in the adequacy of reserves despite some asset-specific challenges [100] - Lease abatements and renovation periods are the primary issues affecting the office portfolio, but overall performance remains strong [85] Question: Capital Deployment and Share Buybacks - The company is considering capital deployment options, including potential share buybacks, but will prioritize profitable growth opportunities [117][97] - A discussion on capital deployment is planned for the August Board meeting [117] Question: CMBS Market Exposure - The company has no single asset, single borrower exposure in the CMBS market and sees no risk of impairment in its portfolio [88][102] Question: Expense Guidance - The company maintains its mid-single-digit expense growth guidance for the year, driven by railcar refurbishment costs and other factors [71][103]

1 BankUnited Execution on Near-term Strategic Priorities Improve Asset Mix • Same day available liquidity $14.9 billion • Available liquidity 139% of uninsured, uncollateralized deposits; 61% of deposits insured or collateralized. • CET 1 ratio of 11.6%; TCE/TA increased to 7.4% 1 4 3 Manage Expenses • Expenses stable quarter-over-quarter 6 Net Interest Margin • Non-brokered deposits grew $1.3 billion • Non-interest bearing DDA 29% of total deposits; up $826 million for the quarter • Total deposits grew by ...

BankUnited, Inc. (BKU) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10.77%. A quarter ago, it was expected that this company would post earnings of $0.62 per share when it actually produced earnings of $0.64, delivering a surprise of 3.23%. Over the last four quarters, the company ...

| --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------|----------------------------------|--------------------|-----------------------------------|--------------------|--------------------------------------|--------------------|----------------------------------------------| | | June 30, 2024 \nBankUnited, Inc. | \nBankUnited, N.A. | March 31, 2024 \nBankUnited, Inc. | \nBankUnited, N.A. | December 31, 2023 \nBankUnited, Inc. | \nBankUnited, N.A. | Requi ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 18. On the other hand, if they miss, the stock may move lower. Revenues are expected to be $245.22 million, up 2.4% from the year-ago quarter. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Thus, a positive or negative Earnings ESP reading theoretically indicat ...