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 ...

Financial Performance Overview [Q2 2024 Financial Results](index=1&type=section&id=Q2%202024%20Financial%20Results) BankUnited's Q2 2024 net income was $53.7 million, with diluted EPS of $0.72, showing sequential growth but a year-over-year decline Quarterly and Year-to-Date Financial Results | Period | Net Income (millions) | Diluted EPS ($) | | :--- | :--- | :--- | | Q2 2024 | $53.7 | $0.72 | | Q1 2024 | $48.0 | $0.64 | | Q2 2023 | $58.0 | $0.78 | | H1 2024 | $101.7 | $1.36 | | H1 2023 | $110.9 | $1.48 | - The Chairman, President, and CEO, Rajinder Singh, described the quarter as "**outstanding**," highlighting **margin expansion**, **declining deposit costs**, **growth in non-interest bearing deposits**, and **growth in the core commercial loan portfolio**[4](index=4&type=chunk) [Key Quarterly Highlights & Strategic Execution](index=1&type=section&id=Key%20Quarterly%20Highlights%20%26%20Strategic%20Execution) Q2 2024 saw strong strategic execution, with net interest margin expanding to 2.72%, deposit costs declining, non-interest bearing deposits growing, and wholesale funding reduced - The net interest margin (tax-equivalent basis) expanded by **0.15% to 2.72%** for Q2 2024, up from 2.57% in the prior quarter[15](index=15&type=chunk) - The average cost of total deposits decreased by **9 basis points to 3.09%** in Q2 2024 from 3.18% in Q1 2024, with the spot APY on total deposits also declining to **3.09%**[5](index=5&type=chunk) - Non-interest bearing demand deposits grew by **$826 million** during the quarter, reaching **29% of total deposits** at June 30, 2024[37](index=37&type=chunk) - Wholesale funding, including FHLB advances and brokered deposits, was reduced by **$1.2 billion** during the quarter[16](index=16&type=chunk) - The loan to deposit ratio improved, declining to **88.7%** at the end of Q2 2024 from 89.6% at the end of Q1 2024[38](index=38&type=chunk) Detailed Financial Analysis [Loan Portfolio](index=2&type=section&id=Loan%20Portfolio) Total loans grew by $402 million in Q2 2024, primarily from core commercial portfolios, while residential loans saw a planned reduction Loan Portfolio Composition (in thousands) | Loan Category | Q2 2024 Balance (thousands) | Q1 2024 Balance (thousands) | QoQ Change (thousands) | | :--- | :--- | :--- | :--- | | Core C&I and CRE | $15,089,927 | $14,501,044 | +$588,883 | | Residential | $7,844,722 | $8,056,972 | -$212,250 | | Mortgage warehouse lending | $539,159 | $456,385 | +$82,774 | | **Total Loans** | **$24,628,484** | **$24,226,300** | **+$402,184** | - The company's commercial real estate exposure is modest, representing **24% of total loans** and **165% of the Bank's total risk-based capital**, which is below the median for peer banks[39](index=39&type=chunk) [Asset Quality and Allowance for Credit Losses (ACL)](index=3&type=section&id=Asset%20Quality%20and%20Allowance%20for%20Credit%20Losses%20(ACL)) Asset quality normalized with ACL to total loans at 0.92% and NPLs at 0.70%, driven by office CRE, with a $19.5 million provision Key Asset Quality Ratios | Metric | Q2 2024 | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | ACL to Total Loans | 0.92% | 0.90% | 0.82% | | ACL to Non-Performing Loans | 130.12% | 187.92% | 159.54% | | Non-performing loans to total loans | 0.70% | 0.48% | 0.52% | | Net Charge-offs to Average Loans (Annualized) | 0.12% | 0.02% | 0.09% | - The provision for credit losses was **$19.5 million** in Q2 2024, up from $15.3 million in Q1 2024, driven by new loan production, risk rating migration, and changes in specific reserves[44](index=44&type=chunk) - Non-performing loans increased by **$59 million** during the quarter, with **$50 million** of the increase related to office CRE exposure[45](index=45&type=chunk) - Total criticized and classified commercial loans declined by **$52 million** during the quarter, as a $69 million increase in CRE was more than offset by a $121 million decline in other commercial categories[23](index=23&type=chunk) [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased to $226.0 million in Q2 2024, with NIM expanding to 2.72% due to higher non-interest bearing deposits and loan yields Net Interest Income and Margin Performance | Metric | Q2 2024 (millions) | Q1 2024 (millions) | | :--- | :--- | :--- | | Net Interest Income | $226.0 | $214.9 | | Net Interest Margin (tax-equivalent) | 2.72% | 2.57% | - A key driver for margin expansion was the **$888 million increase** in average non-interest bearing demand deposits, which grew to **27.5% of average total deposits**[26](index=26&type=chunk) - The tax-equivalent yield on loans increased to **5.85%** from 5.78% in the prior quarter, reflecting new loan originations at higher rates[46](index=46&type=chunk) - The average cost of interest-bearing deposits increased at a declining rate, rising to **4.26%** from 4.21% in the previous quarter[27](index=27&type=chunk) [Non-interest Income](index=4&type=section&id=Non-interest%20Income) Non-interest income decreased to $24.2 million in Q2 2024, primarily due to lower lease financing, partially offset by other income growth Non-interest Income Components (in millions) | Component | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Lease financing | $5.6 | $11.4 | | Other non-interest income | $13.2 | $9.3 | | **Total non-interest income** | **$24.2** | **$26.9** | Capital and Liquidity [Capital Position](index=2&type=section&id=Capital%20Position) The company maintained a robust capital position in Q2 2024, with all ratios exceeding "Well Capitalized" requirements, and CET1 at 11.6% BankUnited, Inc. Capital Ratios | Ratio | June 30, 2024 | March 31, 2024 | Required (Well Capitalized) | | :--- | :--- | :--- | :--- | | Tier 1 leverage | 8.2% | 8.1% | 5.0% | | CET1 risk-based capital | 11.6% | 11.6% | 6.5% | | Total risk-based capital | 13.6% | 13.7% | 10.0% | | Tangible Common Equity/Tangible Assets | 7.4% | 7.3% | N/A | [Liquidity](index=2&type=section&id=Liquidity) The company maintains ample liquidity, with $14.9 billion in same-day available liquidity and a 139% ratio to uninsured deposits - Total same-day available liquidity stood at **$14.9 billion** at the end of Q2 2024[40](index=40&type=chunk) - The ratio of available liquidity to uninsured, uncollateralized deposits was **139%**[40](index=40&type=chunk) [Book Value per Share](index=2&type=section&id=Book%20Value%20per%20Share) Book value and tangible book value per common share continued to grow, with tangible book value reaching $35.07 Book Value Per Common Share Growth | Metric | June 30, 2024 ($) | March 31, 2024 ($) | June 30, 2023 ($) | | :--- | :--- | :--- | :--- | | Book value per common share | $36.11 | $35.31 | $33.94 | | Tangible book value per common share | $35.07 | $34.27 | $32.90 | - Tangible book value per common share is a non-GAAP financial measure reconciled from the GAAP book value per common share by excluding goodwill and other intangible assets[57](index=57&type=chunk) Financial Statements and Supplementary Data [Consolidated Statements of Financial Condition (Balance Sheet)](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition%20(Balance%20Sheet)) Total assets reached $35.4 billion, with loans at $24.4 billion, deposits at $27.8 billion, and equity at $2.7 billion Selected Balance Sheet Data (in billions) | Account | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Total Assets | $35.4 | $35.1 | | Loans, net | $24.4 | $24.0 | | Total Deposits | $27.8 | $27.0 | | FHLB Advances | $3.3 | $3.9 | | Total Stockholders' Equity | $2.7 | $2.6 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2024 net interest income was $226.0 million, with a $19.5 million provision for credit losses, resulting in $53.7 million net income Income Statement Summary - Q2 2024 (in millions) | Item | Amount | | :--- | :--- | | Net interest income | $226.0 | | Provision for credit losses | $19.5 | | Non-interest income | $24.2 | | Non-interest expense | $157.7 | | **Net income** | **$53.7** | [Selected Financial Ratios](index=11&type=section&id=Selected%20Financial%20Ratios) Q2 2024 key ratios include ROA of 0.61%, ROE of 8.0%, net interest margin of 2.72%, and loans to deposits of 88.7% Key Performance Ratios - Q2 2024 vs Q1 2024 | Ratio | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets | 0.61% | 0.54% | | Return on average stockholders' equity | 8.0% | 7.3% | | Net interest margin | 2.72% | 2.57% | | Loans to deposits | 88.7% | 89.6% | [Earnings Per Share Calculation](index=10&type=section&id=Earnings%20Per%20Share%20Calculation) Basic and diluted EPS for Q2 2024 were both $0.72, based on $53.0 million income allocated to common stockholders EPS Calculation - Q2 2024 | Metric | Value | | :--- | :--- | | Net Income | $53.7 million | | Income allocated to common stockholders (Basic) | $53.0 million | | Weighted average shares (Basic) | 73,652,265 shares | | **Basic EPS** | **$0.72** | | Weighted average shares (Diluted) | 74,018,253 shares | | **Diluted EPS** | **$0.72** |

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 ...

Shares of BankUnited (NYSE:BKU) have been a solid performer over the past year, rising over 26%, though shares remain below levels seen when the regional banking olumbia to the of O 2023 began. I last covered BKU in December mains of the Planes that commendation, BKU. healin other hemen be tout ontine maten. crisis of Q1 2023 began. time to determine if BKU risks further underperformance or if now represents a good buying opportunity. In the company's first quarter reported on April 17th, BKU earned $0.64, ...

Company Overview - BankUnited, Inc. (BKU) is currently positioned as an intriguing investment choice due to solid earnings estimate revisions and a favorable Zacks Industry Rank [1][5] - The company has seen current quarter earnings estimates rise from 65 cents per share to 66 cents per share, and current year estimates have increased from $2.74 per share to $2.80 per share [2] Earnings Estimates - The recent earnings estimate revision activity indicates that analysts are becoming more optimistic about BankUnited's short and long-term prospects [3] - The Zacks Rank for BankUnited is 2 (Buy), highlighting its strong position in the market [2] Industry Context - The Banks - Major Regional industry, where BankUnited operates, has a Zacks Industry Rank of 59 out of over 250 industries, indicating a strong position relative to other segments [4] - The positive trends in the industry suggest that a rising tide could benefit all companies within this sector, including BankUnited [4][5]

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the nearterm price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and ea ...

This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.' In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's ...

BankUnited, Inc. (BKU) is well-positioned for growth on the back of decent loans and deposit balance and fee income growth. Further, the current high interest rates environment will aid its financials. Analysts are also optimistic about the stock's earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for earnings for both 2024 and 2025 has moved upward by a penny. BKU currently carries a Zacks Rank #2 (Buy). Over the past month, shares of BankUnited have rallied 5.7%, outperforming ...

It has been about a month since the last earnings report for BankUnited, Inc. (BKU) . Shares have added about 16% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is BankUnited due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. BankUnited Q1 Earnings Top Estimates as Pr ...