On July 18, 2024, BankUnited Inc (BKU, Financial) released its 8-K filing reporting financial results for the quarter ended June 30, 2024. BankUnited Inc is a bank holding company with one wholly owned subsidiary, BankUnited. The bank provides a full range of banking services through banking centers located primarily throughout Florida, as well as New York City. The company is a commercially focused regional bank focusing on small and middle-market businesses, but also provides certain commercial lending and deposit products on a national platform.
Quarterly Performance Overview
BankUnited Inc (BKU, Financial) reported net income of $53.7 million, or $0.72 per diluted share, surpassing the analyst estimate of $0.65 per share. This represents an increase from the previous quarter's net income of $48.0 million, or $0.64 per diluted share, but a decrease from $58.0 million, or $0.78 per diluted share, in the same quarter last year. The company also reported revenue of $226.0 million, below the estimated $243.64 million.
Key Financial Achievements
BankUnited Inc (BKU, Financial) achieved several notable financial milestones this quarter:
- The net interest margin expanded by 0.15% to 2.72% from 2.57% in the previous quarter.
- The average cost of total deposits declined by 0.09% to 3.09%.
- Non-interest bearing deposits grew by over $800 million.
- Total loans increased by $402 million, with core commercial and industrial (C&I) and commercial real estate (CRE) portfolios growing by $589 million.
Income Statement Highlights
Net interest income for the quarter was $226.0 million, up from $214.9 million in the previous quarter. This increase was driven by higher interest income and a decrease in interest expense. The tax-equivalent yield on loans rose to 5.85%, reflecting the origination of new loans at higher rates and paydowns of lower rate loans.
Balance Sheet and Cash Flow
BankUnited Inc (BKU, Financial) reported a decline in wholesale funding, with FHLB advances and brokered deposits down by $1.2 billion. The loan-to-deposit ratio decreased to 88.7% from 89.6% in the previous quarter. The company's liquidity remains strong, with total same-day available liquidity at $14.9 billion.
Asset Quality and Credit Trends
The annualized net charge-off ratio for the six months ended June 30, 2024, was 0.12%. The non-performing assets (NPA) ratio increased to 0.50% from 0.34% in the previous quarter but remains below pre-pandemic levels. The allowance for credit losses (ACL) to total loans ratio increased to 0.92%, indicating a robust credit risk management framework.
Capital Position
BankUnited Inc (BKU, Financial) maintained a strong capital position with a Common Equity Tier 1 (CET1) ratio of 11.6% at the consolidated level. The tangible common equity to tangible assets ratio increased to 7.4%, reflecting the company's solid financial foundation.
Commentary and Outlook
This was an outstanding quarter. Margin expanded, the cost of deposits declined, non-interest bearing deposits grew by over $800 million and we saw good growth in the core commercial loan portfolio segments," said Rajinder Singh, Chairman, President, and Chief Executive Officer.
BankUnited Inc (BKU, Financial) continues to execute on its strategic priorities, demonstrating resilience and adaptability in a challenging economic environment. The company's strong performance in key financial metrics underscores its commitment to delivering value to shareholders and maintaining a robust financial position.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from BankUnited Inc for further details.
