BankUnited(BKU) - 2024 Q4 - Annual Results

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].