For the quarter ended March 2024, BankUnited, Inc. (BKU) reported revenue of $241.73 million, down 1.1% over the same period last year. EPS came in at $0.64, compared to $0.70 in the year-ago quarter.The reported revenue represents a surprise of +0.79% over the Zacks Consensus Estimate of $239.84 million. With the consensus EPS estimate being $0.62, the EPS surprise was +3.23%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

BankUnited, Inc. (BKU) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.23%. A quarter ago, it was expected that this company would post earnings of $0.72 per share when it actually produced earnings of $0.72, delivering no surprise.Over the last four quarters, the company has surpas ...

[BankUnited, Inc. First Quarter 2024 Earnings Release](index=1&type=section&id=BANKUNITED,%20INC.%20REPORTS%20FIRST%20QUARTER%202024%20RESULTS) [Q1 2024 Financial and Strategic Highlights](index=1&type=section&id=Quarterly%20Highlights) BankUnited reported **$48.0 million** net income and **$0.64** diluted EPS, reflecting improved funding mix, strengthened capital, and favorable credit quality Quarterly Financial Performance | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Income | $48.0 million | $20.8 million | $52.9 million | | Diluted EPS | $0.64 | $0.27 | $0.70 | - The company demonstrated strong execution on key strategic priorities, including improving its funding mix, managing its loan portfolio, maintaining favorable credit, and building a robust capital position[5](index=5&type=chunk) - Wholesale funding, including FHLB advances and brokered deposits, was reduced by **$1.4 billion** during the quarter[5](index=5&type=chunk) - Non-interest bearing demand deposits grew by **$404 million**, increasing their share of total deposits to **27%** from **26%** in the prior quarter[19](index=19&type=chunk) - The quarterly common stock dividend was increased by **$0.02** to **$0.29** per share, a **7%** increase[26](index=26&type=chunk) [Financial Performance Details](index=4&type=section&id=Net%20Interest%20Income) Net interest income slightly decreased to **$214.9 million**, while non-interest income increased and non-interest expense declined due to a one-time FDIC assessment - Net interest income was **$214.9 million** for Q1 2024, compared to **$217.2 million** for Q4 2023[30](index=30&type=chunk) - The tax-equivalent net interest margin was **2.57%**, a minor decrease of **3 basis points** from **2.60%** in the previous quarter[31](index=31&type=chunk) - Non-interest income increased to **$26.9 million** from **$17.1 million** in Q4 2023, largely driven by a **$2.7 million** gain on disposition of operating lease equipment compared to a **$6.5 million** loss in the prior quarter[33](index=33&type=chunk) - Non-interest expense was **$159.2 million**, significantly lower than the **$190.9 million** in Q4 2023, which included the initial **$35.4 million** for the FDIC special assessment[52](index=52&type=chunk)[25](index=25&type=chunk) [Loan and Deposit Portfolio](index=1&type=section&id=Loans) Total loans decreased to **$24.2 billion** due to strategic reductions, while total deposits grew by **$489 million**, improving the funding mix - Total loans declined by **$407 million** during the quarter, with a strategic reduction of **$152 million** in residential loans and a **$226 million** decline in core C&I and CRE portfolios[6](index=6&type=chunk)[13](index=13&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Commercial & Industrial (C&I) | $6,745,622 | $6,971,981 | | Commercial Real Estate (CRE) | $5,838,771 | $5,819,233 | | Residential | $8,056,972 | $8,209,027 | | Other | $3,585,935 | $3,633,443 | | **Total Loans** | **$24,226,300** | **$24,633,684** | - Total deposits grew by **$489 million**, while FHLB advances were paid down by **$3.6 billion** compared to one year ago, improving the funding mix[19](index=19&type=chunk)[20](index=20&type=chunk) - The average cost of total deposits increased by **22 basis points** to **3.18%** for the quarter, but the spot cost of total deposits stabilized, ending the quarter at **3.17%**[23](index=23&type=chunk) [Asset Quality and Capital Position](index=1&type=section&id=Asset%20Quality%20and%20the%20ACL) Asset quality remained strong with declining NPA and low net charge-offs, while capital ratios, including CET1 at **11.6%**, demonstrated a robust position Key Asset Quality Ratios | Ratio | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | NPA to Total Assets | 0.34% | 0.37% | | Annualized Net Charge-off Ratio | 0.02% | 0.09% | | ACL to Total Loans | 0.90% | 0.82% | - Non-performing assets (NPAs) decreased to **$118.9 million** from **$130.6 million** at the end of the prior quarter[15](index=15&type=chunk) - Commercial real estate (CRE) loans represent **24%** of total loans and **166%** of total risk-based capital, which is below the peer median of **35%** and **225%**, respectively[9](index=9&type=chunk) Key Capital Ratios | Ratio | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | CET1 Risk-based Capital | 11.6% | 11.4% | | Total Risk-based Capital | 13.7% | 13.4% | | Tangible Common Equity / Tangible Assets | 7.3% | 7.0% | [Consolidated Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements) This section provides detailed unaudited consolidated financial statements, including balance sheets, income statements, and non-GAAP reconciliations [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets were **$35.1 billion**, with deposits increasing to **$27.0 billion** and FHLB advances significantly decreasing to **$3.9 billion** Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$35,105,654** | **$35,761,607** | | Loans, net | $24,008,744 | $24,430,995 | | Total Deposits | $27,027,364 | $26,538,478 | | FHLB Advances | $3,905,000 | $5,115,000 | | **Total Liabilities** | **$32,465,262** | **$33,183,686** | | **Total Stockholders' Equity** | **$2,640,392** | **$2,577,921** | [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) The company reported net interest income of **$214.9 million**, with a **$15.3 million** provision for credit losses, resulting in **$48.0 million** net income Consolidated Statements of Income (in thousands) | (in thousands) | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $214,857 | $217,210 | $227,874 | | Provision for Credit Losses | $15,285 | $19,253 | $19,788 | | Total Non-interest Income | $26,877 | $17,092 | $16,535 | | Total Non-interest Expense | $159,240 | $190,863 | $152,780 | | **Net Income** | **$47,980** | **$20,812** | **$52,882** | [Earnings Per Share (EPS) Calculation](index=10&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per common share were **$0.64** for Q1 2024, compared to **$0.27** in the prior quarter Earnings Per Common Share | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Basic EPS | $0.64 | $0.27 | $0.71 | | Diluted EPS | $0.64 | $0.27 | $0.70 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP tangible book value per common share, which increased to **$34.27** as of March 31, 2024 Reconciliation of Book Value to Tangible Book Value per Share | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Book Value per Common Share | $35.31 | $34.66 | $33.34 | | Tangible Book Value per Common Share | $34.27 | $33.62 | $32.30 |

BankUnited Inc. (BKU) remains well-poised for growth on the back of high rates, decent loans and deposit balances, and solid fee income sources. However, rising expenses and weak asset quality are headwinds.BankUnited’s organic growth is primarily driven by strong loans and deposit balances. Though the company’s revenues fell in 2020 and 2023, the metric witnessed a compound annual growth rate (CAGR) of 2.8% over the three years ending in 2023. Net loans experienced a 3.8% CAGR over the five years ended 202 ...

MicroStockHub This week, I have six new dividend increases to share with you—the increases average 6.6% and median 7.5%. Read on for the complete lists! As an investor who follows a dividend-growth strategy, I eagerly await dividend payouts, especially when they increase. I have observed that companies that regularly raise their dividends perform significantly better than those that don't. I consistently monitor these companies and can confidently share my insights on upcoming dividend increases. I have ...

BankUnited, Inc (BKU) has increased its quarterly dividend. The company announced a quarterly cash dividend of 29 cents per share, marking an increase of 7.4% from the prior payout. This dividend will be paid out on Apr 30, 2024, to shareholders of record as of Apr 12.Prior to this, BKU hiked its dividend by 8% to 27 cents per share on Feb 23, 2023. The company has increased its dividend payout four times in the past five years. Also, the company has five-year annualized dividend growth of 5.67%. Currently, ...

MIAMI LAKES, Fla.--(BUSINESS WIRE)--BankUnited, Inc. (NYSE:BKU), (the “Company”) today announced that its Board of Directors has declared a quarterly cash dividend of $0.29 per common share, reflecting a 7.4% increase from the previous quarterly cash dividend of $0.27 per common share. The dividend will be payable on April 30, 2024 to stockholders of record at the close of business on April 12, 2024. About BankUnited, Inc. BankUnited, Inc. (NYSE: BKU), with total assets of $35.8 billion at December 31, 20 ...

[PART I](index=8&type=section&id=PART%20I) [Business](index=8&type=section&id=Item%201.%20Business) BankUnited, Inc., a bank holding company with **$35.8 billion** in assets, provides comprehensive commercial and consumer banking services primarily in Florida, New York, and Dallas, operating under extensive regulatory oversight with a focus on relationship-based and digitally-enabled strategies, alongside human capital development - BankUnited, Inc. is a bank holding company with one direct wholly-owned subsidiary, BankUnited, N.A., reporting total consolidated assets of **$35.8 billion** at December 31, 2023[52](index=52&type=chunk) - The bank offers a full range of commercial lending and deposit services via banking centers in Florida, the New York metropolitan area, and Dallas, Texas, complemented by a wholesale products office in Atlanta[52](index=52&type=chunk) - The company's core business strategy aims to establish a leading regional commercial and small business bank emphasizing service-oriented relationships and digital customer experiences[52](index=52&type=chunk) [Our Products and Services](index=8&type=section&id=Our%20Products%20and%20Services) - Lending and leasing products target small, middle-market, and larger corporate businesses, encompassing commercial loans, commercial real estate financing, and national municipal and equipment financing via subsidiaries Pinnacle and Bridge[38](index=38&type=chunk)[54](index=54&type=chunk)[71](index=71&type=chunk) - The bank has reduced lending in the office sector, prioritizing warehouse/industrial, multi-family, and select retail sectors for commercial real estate loans[72](index=72&type=chunk) - Deposit products comprise a full suite of commercial and consumer accounts, treasury management services, and programs such as CDARS for expanded FDIC insurance coverage[75](index=75&type=chunk) - Credit risk is managed via a three-lines-of-defense framework: business lines for sourcing, credit administration for evaluation, and Credit Review for independent assessment[40](index=40&type=chunk)[56](index=56&type=chunk)[73](index=73&type=chunk) [Our Markets and Competition](index=9&type=section&id=Our%20Markets%20and%20Competition) - Primary banking markets include Florida (Miami-Dade, Broward, Palm Beach, Tampa, Orlando, Jacksonville) and the Tri-State area (New York, New Jersey, Connecticut), with recent wholesale and retail expansion into Atlanta and Dallas[59](index=59&type=chunk) - The company encounters intense competition from diverse financial institutions, including national, regional, community banks, and non-bank FinTech companies, with key competitive factors being interest rates, customer service, and digital offerings[78](index=78&type=chunk)[374](index=374&type=chunk) [Regulation and Supervision](index=10&type=section&id=Regulation%20and%20Supervision) - As a bank holding company and national bank, BankUnited, Inc. and BankUnited, N.A. are comprehensively regulated and supervised by the Federal Reserve Board and the Office of the Comptroller of the Currency (OCC), respectively[63](index=63&type=chunk)[81](index=81&type=chunk) - The company adheres to Basel III capital rules, mandating minimum ratios for CET1 (**4.5%**), Tier 1 (**6.0%**), and Total Capital (**8.0%**), plus a **2.5%** capital conservation buffer, with both the holding company and bank being well-capitalized as of December 31, 2023[89](index=89&type=chunk)[90](index=90&type=chunk)[113](index=113&type=chunk) - The bank's dividend payments to the holding company are restricted by regulatory requirements, potentially affecting the holding company's debt servicing or shareholder dividend capacity[94](index=94&type=chunk)[115](index=115&type=chunk) - The bank is subject to numerous consumer protection laws, including the Community Reinvestment Act (CRA), under which it achieved a \"Satisfactory\" rating in its October 2021 evaluation[122](index=122&type=chunk)[143](index=143&type=chunk) - In Q4 2023, the bank recorded a **$35.4 million** special assessment from the FDIC due to earlier bank failures[139](index=139&type=chunk) [Human Capital Resources](index=16&type=section&id=Human%20Capital%20Resources) - As of December 31, 2023, the company employed **1,588** full-time and **28** part-time individuals, none of whom are covered by a collective bargaining agreement[11](index=11&type=chunk) - The company fosters diversity and inclusion via its iCARE™ initiative; as of December 31, 2023, **40%** of the Board of Directors were female and **40%** were of diverse ethnicity, with approximately **56%** of the total workforce being female[128](index=128&type=chunk)[144](index=144&type=chunk) - In 2023, **204** employees completed career development programs such as Rising Leaders and EXCELerate, while the mentoring program engaged **280** employees, reporting **1,247** mentoring hours and a **4.7 out of 5-star** rating[4](index=4&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) This section outlines material risks and uncertainties impacting the company's business, encompassing strategic, credit, interest rate, liquidity, operational, regulatory, and general market factors, including challenges in strategy execution, credit losses, interest rate sensitivity, liquidity reliance, operational failures, and regulatory environment impacts - The report identifies material risks inherent in the company's business that could adversely affect its financial condition, results of operations, and stock value[132](index=132&type=chunk) [Strategic Risk](index=18&type=section&id=Strategic%20Risk) - The company's execution of strategic priorities, including funding mix improvement, balance sheet re-positioning, credit and expense management, and capital maintenance, faces risks from competition, macroeconomic conditions, and market health[175](index=175&type=chunk)[176](index=176&type=chunk) - Intense competition from national, regional, and FinTech entities in its core Florida and New York tri-state markets may negatively affect growth and profitability[134](index=134&type=chunk)[177](index=177&type=chunk) - The business is vulnerable to disruptions from natural disasters, pandemics, and geopolitical conflicts, potentially leading to increased loan losses and deposit outflows[136](index=136&type=chunk)[376](index=376&type=chunk) - The loss of key senior management personnel could harm the business due to the difficulty in replicating their knowledge and experience[153](index=153&type=chunk)[180](index=180&type=chunk) [Credit Risk](index=21&type=section&id=Credit%20Risk) - The business is inherently exposed to credit risk, where borrowers may default, and the Allowance for Credit Losses (ACL) might be insufficient to cover actual losses, particularly during economic downturns[158](index=158&type=chunk)[184](index=184&type=chunk)[361](index=361&type=chunk) - A substantial part of the loan portfolio is secured by commercial and residential real estate, exposing the company to property value declines, especially in the office sector due to remote work trends[162](index=162&type=chunk)[187](index=187&type=chunk) - Geographic concentration in Florida and the New York Tri-State area renders the business highly vulnerable to regional economic downturns or real estate market disruptions[163](index=163&type=chunk)[188](index=188&type=chunk) [Interest Rate Risk](index=23&type=section&id=Interest%20Rate%20Risk) - The company's earnings heavily rely on net interest income, which is sensitive to market interest rate fluctuations; rapid or unexpected changes in rates, yield curve shape, or spreads could negatively impact the net interest margin[16](index=16&type=chunk)[190](index=190&type=chunk) - Interest rate risk management techniques are imprecise, relying on models with depositor behavior assumptions that may not accurately predict future rate movement impacts[363](index=363&type=chunk) [Liquidity Risk](index=24&type=section&id=Liquidity%20Risk) - Inadequate liquidity could hinder the ability to fulfill customer loan requests, deposit withdrawals, and other cash commitments, potentially disrupting normal operations[7](index=7&type=chunk)[192](index=192&type=chunk) - The 2023 regional bank failures diminished customer confidence and resulted in elevated deposit outflows, leaving the company vulnerable to similar events that could prompt material, unexpected withdrawals[5](index=5&type=chunk)[167](index=167&type=chunk) - A substantial portion of deposits are commercial and uninsured, potentially increasing their susceptibility to outflows during periods of stress[168](index=168&type=chunk)[364](index=364&type=chunk) - The Federal Reserve Bank and FHLB serve as crucial liquidity sources; any compromise in their availability could materially harm the business[19](index=19&type=chunk)[193](index=193&type=chunk) [Operational Risk](index=25&type=section&id=Operational%20Risk) - The company depends on analytical and forecasting models for strategic planning and risk management, which may prove inadequate or inaccurate[8](index=8&type=chunk)[226](index=226&type=chunk) - Reliance on third-party service providers for critical infrastructure, including core banking and IT systems, introduces inherent operational risks, where a third-party failure could significantly disrupt business[17](index=17&type=chunk)[173](index=173&type=chunk)[200](index=200&type=chunk) - The business faces exposure to cybersecurity incidents, such as data breaches and denial-of-service attacks, which could harm its reputation, lead to financial losses, and attract regulatory scrutiny[201](index=201&type=chunk)[230](index=230&type=chunk)[382](index=382&type=chunk) - Failure to adapt to technological advancements could negatively affect the company's competitiveness in attracting loans and deposits[20](index=20&type=chunk)[232](index=232&type=chunk) [Regulatory, Legal and Compliance Risk](index=28&type=section&id=Regulatory%2C%20Legal%20and%20Compliance%20Risk) - Operating in a highly regulated environment implies that changes in laws or non-compliance can be costly, leading to fines, penalties, and restrictions on business activities[9](index=9&type=chunk)[204](index=204&type=chunk) - The 2023 regional bank failures are anticipated to prompt new laws and regulations, especially concerning capital, liquidity, and bank mergers, potentially increasing costs and affecting profitability[236](index=236&type=chunk) - Noncompliance with the Bank Secrecy Act and other anti-money laundering regulations could result in substantial fines and limitations on expansion plans[208](index=208&type=chunk)[238](index=238&type=chunk) - Future bank failures might necessitate the company paying higher FDIC insurance premiums, which could adversely affect earnings[212](index=212&type=chunk)[240](index=240&type=chunk) [Unresolved Staff Comments](index=32&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[370](index=370&type=chunk) [Cybersecurity](index=32&type=section&id=Item%201C.%20Cybersecurity) The company outlines its comprehensive cybersecurity risk management strategy, integrated into its overall risk program, featuring layered security, continuous threat assessment, and regular testing, with Board oversight and a dedicated Materiality Assessment Team, reporting no material incidents in the last three fiscal years - The company maintains a comprehensive cybersecurity program with processes for threat detection, assessment, and management, integrated into its overall risk management framework[247](index=247&type=chunk)[265](index=265&type=chunk) - Cybersecurity governance involves oversight by the Board's Risk Committee and leadership from a Chief Information Security Officer (CISO) with over **30 years** of experience[250](index=250&type=chunk)[267](index=267&type=chunk) - A Materiality Assessment Team (MAT), consisting of the CISO, CIO, CRO, CFO, CAO, and General Counsel, is tasked with determining the materiality of cybersecurity incidents[251](index=251&type=chunk)[268](index=268&type=chunk) - The company has not experienced any material cybersecurity incidents over the past three fiscal years[266](index=266&type=chunk) [Properties](index=33&type=section&id=Item%202.%20Properties) BankUnited's corporate headquarters is in leased office space in Miami Lakes, Florida, with **53** banking centers operated across Florida, New York, and Texas as of December 31, 2023, all deemed adequate for current and foreseeable operational needs - The company's corporate headquarters is located in leased office space in Miami Lakes, Florida, operating **53** banking centers across Florida, New York, and Texas as of December 31, 2023[252](index=252&type=chunk) [Legal Proceedings](index=33&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal actions arising from normal business operations, with management assessing that the outcomes are unlikely to materially impact its financial position, results of operations, or cash flows - The company is engaged in various legal actions stemming from its normal course of business, though management deems the likelihood of a material impact from these proceedings to be remote[269](index=269&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - None[270](index=270&type=chunk) [PART II](index=34&type=section&id=PART%20II) [Market for Common Equity, Stockholder Matters and Issuer Purchases](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) BankUnited's common stock trades on the NYSE as \"BKU\"; the company declared **$1.08** per share in total quarterly dividends in 2023, an increase from **$1.00** in 2022, with a **$100** investment growing to **$126.65** by December 31, 2023, underperforming the S&P 500 and KBW Nasdaq Regional Banking Indices - The company's common stock trades on the NYSE under the symbol \"BKU\"; as of February 16, 2024, there were **74,371,130** shares outstanding and **573** stockholders of record[22](index=22&type=chunk)[272](index=272&type=chunk) Dividend per Share | Dividend per Share | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Quarterly Dividend | 0.27 | 0.25 | | Annual Dividend | 1.08 | 1.00 | Index Performance | Index | 12/31/2018 ($) | 12/31/2023 ($) | | :--- | :--- | :--- | | BankUnited, Inc. | 100.00 | 126.65 | | S&P 500 Index | 100.00 | 207.21 | | KBW Nasdaq Regional Banking Index | 100.00 | 139.66 | [Reserved](index=36&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results for the year ended December 31, 2023, highlighting navigation of a challenging macroeconomic environment, strategic priorities to improve funding and net interest margin, a net income of **$178.7 million** or **$2.38** per diluted share, and robust capital and liquidity with a **11.4%** CET1 ratio and **$13.6 billion** available liquidity - The company's vision is to be a leading regional commercial and small business bank, with near-term strategic priorities focused on enhancing the funding profile through core deposit growth, optimizing the asset mix by transitioning from residential to higher-yielding commercial loans, and managing expenses[298](index=298&type=chunk)[302](index=302&type=chunk) - The macroeconomic environment, including 2023 regional bank closures and restrictive monetary policy, resulted in deposit outflows and increased reliance on costlier wholesale funding, thereby pressuring the net interest margin[281](index=281&type=chunk)[299](index=299&type=chunk) Key Financial Metrics | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Income (Millions) | 178.7 | 285.0 | | Diluted EPS ($) | 2.38 | 3.54 | | Return on Average Equity (%) | 7.01 | N/A | | Return on Average Assets (%) | 0.49 | N/A | - The net interest margin decreased to **2.56%** in 2023 from **2.68%** in 2022 due to an unfavorable funding mix shift, though it expanded in the second half of 2023[325](index=325&type=chunk) - Asset quality remained robust, with a net charge-off ratio of **0.09%** for 2023 and a non-performing asset to total assets ratio of **0.37%** at year-end[285](index=285&type=chunk)[293](index=293&type=chunk) - The company maintained a strong capital position with a CET1 ratio of **11.4%** and ample liquidity, reporting total same-day available liquidity of **$13.6 billion** at December 31, 2023[309](index=309&type=chunk)[333](index=333&type=chunk) [Critical Accounting Policies and Estimates](index=41&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The Allowance for Credit Losses (ACL) represents the most significant accounting estimate, requiring complex and subjective judgments concerning historical loss experience, economic forecasts, collateral values, and other factors[313](index=313&type=chunk)[334](index=334&type=chunk)[336](index=336&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) - Tax-equivalent net interest income decreased to **$890.8 million** in 2023 from **$928.7 million** in 2022, primarily due to a **$666.3 million** increase in interest expense exceeding the **$628.4 million** increase in interest income[340](index=340&type=chunk) - The provision for credit losses was **$87.6 million** in 2023, up from **$75.2 million** in 2022, mainly attributable to changes in economic forecasts, new commercial loan production, and risk rating migration[324](index=324&type=chunk)[353](index=353&type=chunk) - Non-interest income increased to **$86.8 million** in 2023 from **$77.6 million** in 2022, primarily driven by higher BOLI income and lending-related fees[346](index=346&type=chunk)[357](index=357&type=chunk) - Non-interest expense increased to **$636.0 million** in 2023 from **$540.3 million** in 2022, largely due to a **$35.4 million** FDIC special assessment and higher employee compensation[347](index=347&type=chunk)[358](index=358&type=chunk) - The effective tax rate was **24.64%** in 2023, compared to **24.03%** in 2022[1060](index=1060&type=chunk) [Analysis of Financial Condition](index=47&type=section&id=Analysis%20of%20Financial%20Condition) - Total assets decreased to **$35.8 billion** at year-end 2023 from **$37.0 billion** at year-end 2022[717](index=717&type=chunk) - The investment securities portfolio decreased to **$8.9 billion** from **$9.8 billion**, with a short effective duration of **1.97 years**; the portfolio held a net unrealized loss position of **$534.8 million**, an improvement from a **$674.2 million** loss at year-end 2022[1063](index=1063&type=chunk)[1065](index=1065&type=chunk)[1066](index=1066&type=chunk) - Total loans remained relatively stable at **$24.6 billion**, with a portfolio mix shift showing core C&I and CRE loans growing by **$719 million** while residential loans declined by **$692 million**, aligning with strategic goals[506](index=506&type=chunk) - Total deposits decreased by **$971 million** to **$26.5 billion**, marked by a **$1.2 billion** decline in non-interest bearing demand deposits, indicating a customer shift towards higher-yielding alternatives[327](index=327&type=chunk)[631](index=631&type=chunk) - FHLB advances decreased to **$5.1 billion** from **$5.4 billion** at year-end 2022[717](index=717&type=chunk) [Asset Quality](index=58&type=section&id=Asset%20Quality) - Non-performing assets (NPAs) increased to **$130.6 million** (**0.37%** of total assets) at year-end 2023 from **$107.0 million** (**0.29%** of total assets) at year-end 2022, yet remain below pre-pandemic levels[293](index=293&type=chunk)[559](index=559&type=chunk) - Criticized and classified commercial loans increased due to higher borrower operating costs and evolving commercial real estate market dynamics, especially in the office sector[547](index=547&type=chunk) - The Allowance for Credit Losses (ACL) to total loans ratio increased to **0.82%** at December 31, 2023, from **0.59%** at the prior year-end, reflecting changes in economic forecasts, risk rating migration, and portfolio composition shifts[308](index=308&type=chunk)[609](index=609&type=chunk) - The ACL for the CRE office portfolio significantly increased to **1.10%** of loans from **0.45%** at year-end 2022, reflecting market headwinds[588](index=588&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) - The company maintained a strong liquidity position, with total same-day available liquidity of **$13.6 billion** at December 31, 2023, and a ratio of available liquidity to uninsured, uncollateralized deposits of **152%**[284](index=284&type=chunk)[639](index=639&type=chunk) - Following the March 2023 banking events, management activated its contingency funding plan and enhanced liquidity monitoring, which remains in effect[621](index=621&type=chunk) Capital Ratios | Capital Ratio | Dec 31, 2023 (%) | Dec 31, 2022 (%) | | :--- | :--- | :--- | | CET1 risk-based capital | 11.4 | 11.0 | | Tier 1 risk-based capital | 11.4 | 11.0 | | Total risk-based capital | 13.4 | 12.7 | | Tier 1 leverage | 7.9 | 7.5 | - Book value per common share increased to **$34.66** and tangible book value per common share increased to **$33.62** at year-end 2023[330](index=330&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by the ALCO using income simulation models to project net interest income under various scenarios, with a **+200 basis point** rate shock modeled to increase net interest income by **2.1%** in year one, and a **-200 basis point** shock decreasing it by **4.7%**, both within policy limits, also utilizing derivative instruments for hedging - The principal market risk is interest rate risk, managed by the ALCO through policies and monitoring procedures, including income simulation and Economic Value of Equity (EVE) analysis[645](index=645&type=chunk)[665](index=665&type=chunk) Impact on Net Interest Income | Interest Rate Shock (bps) | Impact on Net Interest Income (Year 1, %) | | :--- | :--- | | +200 | +2.1 | | +100 | +1.0 | | -100 | -1.6 | | -200 | -4.7 | - The company employs derivative financial instruments, including interest rate swaps and caps, to manage interest rate risk by mitigating exposure to changes in cash flows on variable-rate liabilities and fair value changes of fixed-rate instruments[650](index=650&type=chunk) [Financial Statements and Supplementary Data](index=80&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's consolidated financial statements for 2021-2023, including Balance Sheets, Income, Comprehensive Income, Cash Flows, and Stockholders' Equity, along with Management's Report on Internal Control and Deloitte & Touche LLP's unqualified opinions on both financial statements and internal controls, supplemented by detailed notes on accounting policies and specific accounts - The section includes the audited consolidated financial statements and accompanying notes for the fiscal years ended December 31, 2023, 2022, and 2021[654](index=654&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[657](index=657&type=chunk) - Deloitte & Touche LLP, the independent registered public accounting firm, issued an unqualified opinion on both the consolidated financial statements and the effectiveness of internal control over financial reporting[703](index=703&type=chunk)[712](index=712&type=chunk) [Notes to Consolidated Financial Statements](index=81&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The notes offer detailed information on significant accounting policies, encompassing basis of presentation, use of estimates (especially the ACL), fair value measurements, and principles of consolidation[725](index=725&type=chunk)[750](index=750&type=chunk)[752](index=752&type=chunk) - Note 4 provides a detailed breakdown of the loan portfolio by class and an analysis of the Allowance for Credit Losses (ACL), indicating an increase in the ACL to **$202.7 million** at year-end 2023 from **$147.9 million** at year-end 2022[863](index=863&type=chunk)[914](index=914&type=chunk) - Note 10 details the use of derivative instruments for hedging, with a total notional amount of **$3.6 billion** for designated hedging instruments as of December 31, 2023[671](index=671&type=chunk) - Note 13 confirms that as of December 31, 2023, both the Company and the Bank exceeded all \"well capitalized\" regulatory capital requirements[468](index=468&type=chunk) [Changes in and Disagreements with Accountants](index=143&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles, financial statement disclosure, or auditing scope or procedure - None[1097](index=1097&type=chunk) [Controls and Procedures](index=143&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2023, with no material changes to internal control over financial reporting during the fourth quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[1103](index=1103&type=chunk) - There were no material changes to internal control over financial reporting during the fourth quarter of 2023[1104](index=1104&type=chunk) [Other Information](index=143&type=section&id=Item%209B.%20Other%20Information) This section is not applicable - Not applicable[1115](index=1115&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=143&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This section is not applicable - Not applicable[1115](index=1115&type=chunk)

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view i ...

BankUnited, Inc.’s (BKU) fourth-quarter 2023 adjusted earnings of 72 cents per share met the Zacks Consensus Estimate. In the prior-year quarter, the company reported earnings of 82 cents. The reported quarter’s earnings excluded expenses related to FDIC special assessment and a loss on sale of operating lease equipment.Results were aided by a decline in provisions. However, lower net interest income (NII) and non-interest income, along with higher expenses, were the undermining factors.Net income was $20.8 ...