BankUnited(BKU)2024-11-04 21:32Financial Performance - Net income for Q3 2024 was $61.5 million, or $0.81 per diluted share, compared to $47.0 million, or $0.63 per diluted share in Q3 2023, reflecting a 30.6% increase in net income year-over-year [126]. - For the nine months ended September 30, 2024, net income was $163.2 million, or $2.17 per diluted share, compared to $157.9 million, or $2.11 per diluted share for the same period in 2023, indicating a 3.3% increase [126]. - Net interest income for the three months ended September 30, 2024, was $238.0 million, an increase of $8.0 million from $230.0 million for the three months ended June 30, 2024 [153]. - Net interest income for the three months ended September 30, 2024 was $238.0 million, an increase of $18.9 million compared to $219.1 million for the same period in 2023 [154]. Interest Margin and Deposits - The net interest margin expanded by 0.06% to 2.78% for Q3 2024 from 2.72% in Q2 2024, and improved from 2.56% in Q3 2023 [129]. - The average cost of total deposits declined by 0.03% to 3.06% for Q3 2024, down from 3.09% in Q2 2024 [130]. - Total deposits grew by $1.3 billion during the nine months ended September 30, 2024, with non-brokered deposits increasing by $1.7 billion [175]. Loan Portfolio - Total loans decreased by $230 million for Q3 2024, with commercial real estate loans growing by $34 million, while residential loans declined by $422 million [135]. - As of September 30, 2024, the total loan portfolio amounted to $24.4 billion, a slight decrease from $24.6 billion on December 31, 2023 [191]. - The commercial loan segment represented 68.1% of total loans, increasing from 66.7% in the previous period, with a total of $16.6 billion [191]. - The residential loan segment decreased to $7.8 billion, representing 31.9% of total loans, down from 33.3% [191]. Credit Quality and Losses - Net charge-offs for Q3 2024 were $6.5 million, with an annualized net charge-off ratio of 0.12% for the nine months ended September 30, 2024 [137]. - The ratio of the allowance for credit losses (ACL) to total loans increased to 0.94% at September 30, 2024, with the ACL to non-performing loans ratio at 101.68% [138]. - Total non-performing loans increased to $224,484 thousand as of September 30, 2024, up from $173,455 thousand in June 30, 2024, and $127,044 thousand in December 31, 2023, representing a growth of 29.4% and 76.7% respectively [239]. - The allowance for credit losses (ACL) to total loans ratio was 0.94% as of September 30, 2024, slightly up from 0.92% in June 30, 2024, and 0.82% in December 31, 2023 [239]. Liquidity and Capital - Total same day available liquidity was $15.0 billion, with an available liquidity to uninsured, uncollateralized deposits ratio of 147% at September 30, 2024 [140]. - The Tier 1 leverage ratio for BankUnited, Inc. is 8.31% as of September 30, 2024, exceeding the required 4.00% [283]. - Total risk-based capital for BankUnited, Inc. stands at $3,502,509, with a ratio of 13.93%, well above the required 10.00% [283]. - The estimated amount of uninsured deposits at September 30, 2024, was $13.59 billion, an increase from $12.4 billion at December 31, 2023 [266]. Investment Securities - As of September 30, 2024, the investment securities portfolio had a net unrealized loss of $338.0 million, an improvement of $196.8 million from a loss of $534.8 million at December 31, 2023 [179]. - The total amortized cost of investment securities was $9.43 billion, with a carrying value of $9.09 billion as of September 30, 2024, compared to an amortized cost of $9.38 billion and a carrying value of $8.84 billion at December 31, 2023 [178]. - The estimated effective duration of the investment portfolio was 1.74 years, and the estimated weighted average life was 5.4 years as of September 30, 2024 [178]. Employee Compensation - Employee compensation and benefits increased to $81.781 million for the three months ended September 30, 2024, up from $68.825 million for the same period in 2023 [171].