Q2 2024 BankUnited Inc Earnings Call Transcript
Key Points
- EPS exceeded expectations, coming in at $0.72 compared to the consensus of $0.65.
- Net interest margin (NIM) increased from 2.57% to 2.72%, driven by successful balance sheet transformation.
- Non-brokered deposits grew by $1.3 billion, with $826 million in non-interest DDA, indicating strong deposit growth.
- Wholesale funding was reduced by $1.2 billion, bringing it down to levels seen at the beginning of the rate cycle.
- The company saw broad-based growth in core commercial segments, with C&I and CRE segments growing significantly.
- Revenue declined by $212 million, despite growth in corporate, commercial, and small business segments.
- Nonperforming CRE loans increased to $51 million, with notable issues in office CRE loans.
- Criticized and classified loans increased by $88 million, primarily in the office segment.
- The cost of interest-bearing deposits increased slightly from 4.21% to 4.26%, indicating ongoing pressure on deposit costs.
- Provision for credit losses was $20 million, driven by risk rating migration and specific reserves, indicating ongoing credit risk concerns.
Good morning, and thank you for joining us today for BankUnited, Inc., second quarter 2024 results conference call. On the call this morning are Raj Singh, Chairman, President and CEO, Leslie Lunak, Chief Financial Officer, and Tom Cornish, Chief Operating Officer.
Before we start, I'd like to remind everyone that this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They reflect the company's current views with respect to, among other things, future events and financial performance.
Any forward-looking statements made during this call are based on the historical performance of the company and its subsidiaries are on the company's current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the company.
Thta the future plans, estimates or expectations contemplated by the company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions, including without limitations those
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