BankUnited, Inc. Reports Second Quarter 2024 Results

BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter ended June 30, 2024.

"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.

For the quarter ended June 30, 2024, the Company reported net income of $53.7 million, or $0.72 per diluted share, compared to $48.0 million, or $0.64 per diluted share, for the immediately preceding quarter ended March 31, 2024 and $58.0 million, or $0.78 per diluted share, for the quarter ended June 30, 2023. For the six months ended June 30, 2024, the Company reported net income of $101.7 million, or $1.36 per diluted share compared to $110.9 million, or $1.48 per diluted share for the six months ended June 30, 2023.

Quarterly Highlights

We continued to execute on our strategic priorities this quarter:

• The net interest margin, calculated on a tax-equivalent basis, expanded by 0.15%, to 2.72% for the quarter ended June 30, 2024 from 2.57% for the immediately preceding quarter.

• The average cost of total deposits declined by 0.09% to 3.09% for the quarter ended June 30, 2024 from 3.18% for the quarter ended March 31, 2024. The spot APY of total deposits declined to 3.09% at June 30, 2024 from 3.17% at March 31, 2024. The spot APY of interest bearing deposits was stable at 4.29% at both June 30, 2024 and March 31, 2024.

• Non-brokered deposits grew by $1.3 billion for the quarter ended June 30, 2024 while total deposits grew by $736 million. Non-interest bearing demand deposits grew by $826 million, to 29% of total deposits at June 30, 2024, up from 27% at March 31, 2024. Average non-interest bearing demand deposits grew by $888 million for the quarter. For the first six months of 2024, non-interest bearing demand deposits grew by $1.2 billion.

• Wholesale funding continued to decline; in total, FHLB advances and brokered deposits were down by $1.2 billion for the quarter ended June 30, 2024.

• Total loans grew by $402 million for the quarter ended June 30, 2024. The core C&I and commercial real estate portfolios grew by $589 million and mortgage warehouse grew by $83 million. Consistent with our strategic objectives, the residential loan portfolio declined by $212 million; franchise, equipment and municipal finance declined by a total of $57 million.

• The loan to deposit ratio declined to 88.7% at June 30, 2024, from 89.6% at March 31, 2024.

• Credit trends remain largely favorable although we are seeing some expected normalization. The annualized net charge-off ratio for the six months ended June 30, 2024 was 0.12%. The NPA ratio at June 30, 2024 was 0.50%, including 0.11% related to the guaranteed portion of non-accrual SBA loans, compared to 0.34%, including 0.11% related to the guaranteed portion of non-accrual SBA loans at March 31, 2024. The NPA ratio remains below pre-pandemic levels.

• The ratio of the ACL to total loans increased to 0.92% at June 30, 2024; the ratio of the ACL to non-performing loans was 130.12%. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.42% at June 30, 2024 and the ACL to loans ratio for CRE office loans was 2.47%.

• Our commercial real estate exposure is modest, totaling 24% of loans and 165% of the Bank's total risk based capital at June 30, 2024. By comparison, based on call report data as of March 31, 2024 (the most recent date available) for banks with between $10 billion and $100 billion in assets, the median level of CRE to total loans was 35% and the median level of CRE to total risk based capital was 222%.

• At June 30, 2024, the weighted average LTV of the CRE portfolio was 56.0%, the weighted average DSCR was 1.77, 56% of the portfolio was collateralized by properties located in Florida and 27% was collateralized by properties located in the New York tri-state area. For the office sub-segment, the weighted average LTV was 65.8%, the weighted average DSCR was 1.59, 58% was collateralized by properties in Florida, substantially all of which was suburban, and 24% was collateralized by properties located in the New York tri-state area.

• Liquidity remains ample. Total same day available liquidity was $14.9 billion, the available liquidity to uninsured, uncollateralized deposits ratio was 139% and an estimated 61% of our deposits were insured or collateralized at June 30, 2024.

• Our capital position is robust. At June 30, 2024, CET1 was 11.6% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.4% at June 30, 2024. The ratio of tangible common equity to tangible assets increased to 7.4% at June 30, 2024.

• The net unrealized pre-tax loss on the available for sale ("AFS") securities portfolio continued to improve, declining by $36 million, to 5% of amortized cost, for the quarter ended June 30, 2024. The duration of our AFS securities portfolio remained short, at 1.82 as of June 30, 2024. Held to maturity securities were not significant.

• Book value and tangible book value per common share continued to grow, to $36.11 and $35.07, respectively, at June 30, 2024, compared to $35.31 and $34.27, respectively, at March 31, 2024, and $33.94 and $32.90, respectively, one year ago.

Loans

Loan portfolio composition at the dates indicated follows (dollars in thousands):

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

Core C&I and CRE sub-segments:

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied commercial real estate

$

5,367,663

 

21.8

%

 

$

5,309,126

 

21.9

%

 

$

5,323,241

 

21.6

%

Construction and land

 

584,833

 

2.4

%

 

 

529,645

 

2.2

%

 

 

495,992

 

2.0

%

Owner occupied commercial real estate

 

1,966,809

 

8.0

%

 

 

1,916,651

 

7.9

%

 

 

1,935,743

 

7.9

%

Commercial and industrial

 

7,170,622

 

29.1

%

 

 

6,745,622

 

27.9

%

 

 

6,971,981

 

28.3

%

 

 

15,089,927

 

61.3

%

 

 

14,501,044

 

59.9

%

 

 

14,726,957

 

59.8

%

Franchise and equipment finance

 

307,442

 

1.2

%

 

 

347,103

 

1.4

%

 

 

380,347

 

1.5

%

Pinnacle - municipal finance

 

847,234

 

3.4

%

 

 

864,796

 

3.6

%

 

 

884,690

 

3.6

%

Mortgage warehouse lending ("MWL")

 

539,159

 

2.2

%

 

 

456,385

 

1.9

%

 

 

432,663

 

1.8

%

Residential

 

7,844,722

 

31.9

%

 

 

8,056,972

 

33.2

%

 

 

8,209,027

 

33.3

%

 

$

24,628,484

 

100.0

%

 

$

24,226,300

 

100.0

%

 

$

24,633,684

 

100.0

%

For the quarter ended June 30, 2024, total loans grew by $402 million. The core C&I and CRE portfolio sub-segments grew by $589 million and MWL grew by $83 million. Consistent with our balance sheet strategy, residential loans declined by $212 million; franchise, equipment, and municipal finance declined by an aggregate $57 million.

Asset Quality and the ACL

The following table presents the ACL and related ACL coverage ratios at the dates indicated as well as net charge-off rates for the periods ended June 30, 2024, March 31, 2024 and December 31, 2023 (dollars in thousands):

 

ACL

 

ACL to Total Loans

 

Commercial ACL to Commercial Loans(2)

 

ACL to Non-Performing Loans

 

Net Charge-offs to Average Loans (1)

December 31, 2023

$

202,689

 

0.82

%

 

1.29

%

 

159.54

%

 

0.09

%

March 31, 2024

$

217,556

 

0.90

%

 

1.42

%

 

187.92

%

 

0.02

%

June 30, 2024

$

225,698

 

0.92

%

 

1.42

%

 

130.12

%

 

0.12

___________

(1)

Annualized for the three months ended March 31, 2024 and the six months ended June 30, 2024.

(2)

For purposes of this ratio, commercial loans includes the core C&I and CRE sub-segments as presented in the table above as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio.

The ACL at June 30, 2024 represents management's estimate of lifetime expected credit losses given an assessment of historical data, current conditions, and a reasonable and supportable economic forecast as of the balance sheet date. For the quarter ended June 30, 2024, the provision for credit losses, including both funded and unfunded loan commitments, was $19.5 million, compared to $15.3 million for the immediately preceding quarter ended March 31, 2024. Significant factors impacting the provision for credit losses for the quarter ended June 30, 2024 were new loan production, risk rating migration and changes in portfolio characteristics and an increase in certain specific reserves.

The following table summarizes the activity in the ACL for the periods indicated (in thousands):

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Beginning balance

$

217,556

 

 

$

202,689

 

 

$

158,792

 

 

$

202,689

 

 

$

147,946

 

Impact of adoption of new accounting pronouncement (ASU 2022-02)

 

N/A

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

 

 

(1,794

)

Balance after impact of adoption of ASU 2022-02

 

217,556

 

 

 

202,689

 

 

 

158,792

 

 

 

202,689

 

 

 

146,152

 

Provision

 

21,823

 

 

 

15,805

 

 

 

14,195

 

 

 

37,628

 

 

 

31,790

 

Net charge-offs

 

(13,681

)

 

 

(938

)

 

 

(6,154

)

 

 

(14,619

)

 

 

(11,109

)

Ending balance

$

225,698

 

 

$

217,556

 

 

$

166,833

 

 

$

225,698

 

 

$

166,833

 

The following table presents criticized and classified commercial loans at the dates indicated (in thousands):

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

CRE

 

Total Commercial

 

CRE

 

Total Commercial

 

CRE

 

Total Commercial

Special mention

$

138,403

 

$

265,940

 

$

139,980

 

$

357,800

 

$

97,552

 

$

319,905

Substandard - accruing

 

597,888

 

 

946,832

 

 

577,418

 

 

966,129

 

 

390,724

 

 

711,266

Substandard - non-accruing

 

54,088

 

 

131,193

 

 

12,258

 

 

83,511

 

 

13,727

 

 

86,903

Doubtful

 

8,301

 

 

25,258

 

 

—

 

 

13,822

 

 

—

 

 

19,035

Total

$

798,680

 

$

1,369,223

 

$

729,656

 

$

1,421,262

 

$

502,003

 

$

1,137,109

Total criticized and classified commercial loans declined by $52 million for the quarter ended June 30, 2024. Criticized and classified CRE loans increased by $69 million, the majority of this in the office category, more than offset by declines of $121 million in other commercial categories. As expected in the current environment, there has been some further risk rating migration within the criticized and classified population, primarily within the CRE office category. Rent abatement periods, delays in completing build-out of leased space and in some cases lower occupancy levels contributed to risk rating migration in the office portfolio.

NPAs remain below pre-pandemic levels, although increasing to $176.0 million at June 30, 2024 from $118.9 million at March 31, 2024. Non-performing loans totaled $173.5 million or 0.70% of total loans at June 30, 2024, compared to $115.8 million or 0.48% of total loans at March 31, 2024. Non-performing loans included $39.0 million and $40.0 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.16% of total loans at both June 30, 2024 and March 31, 2024. The $59 million increase in non-performing loans for the quarter ended June 30, 2024 included $50 million of office exposure.

Net Interest Income

Net interest income for the quarter ended June 30, 2024 was $226.0 million, compared to $214.9 million for the immediately preceding quarter ended March 31, 2024. Interest income increased by $1.8 million for the quarter ended June 30, 2024 compared to the immediately preceding quarter, while interest expense decreased by $9.3 million.

The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.15% to 2.72% for the quarter ended June 30, 2024, from 2.57% for the immediately preceding quarter ended March 31, 2024. Factors impacting the net interest margin for the quarter ended June 30, 2024 were:

• Average non-interest bearing demand deposits increased by $888 million, to 27.5% of average total deposits for the quarter ended June 30, 2024 from 24.7% for the quarter ended March 31, 2024, positively impacting the margin.

• The tax-equivalent yield on loans increased to 5.85% for the quarter ended June 30, 2024, from 5.78% for the quarter ended March 31, 2024. This increase reflects the origination of new loans at higher rates, paydowns of lower rate loans and balance sheet repositioning.

• The average cost of interest bearing deposits increased this quarter, but at a declining rate, to 4.26% for the quarter ended June 30, 2024 from 4.21% for the quarter ended March 31, 2024.

• The average rate paid on FHLB advances increased to 4.28% for the quarter ended June 30, 2024 from 4.18% for the quarter ended March 31, 2024, reflecting maturities of cash flow hedges.

Non-interest income

Non-interest income totaled $24.2 million for the quarter ended June 30, 2024, compared to $26.9 million for the quarter ended March 31, 2024. The $5.8 million decline in lease financing income quarter over quarter was attributable to both lower residual income and the lower balance of operating lease equipment. There was a corresponding decline in depreciation of operating lease equipment. The $3.9 million increase in "other non-interest income" reflected increases in revenue from our customer derivative business and higher loan related and syndication fees.

Earnings Conference Call and Presentation

A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Thursday, July 18, 2024 with Chairman, President and Chief Executive Officer Rajinder P. Singh, Chief Financial Officer Leslie N. Lunak and Chief Operating Officer Thomas M. Cornish.

The earnings release and slides with supplemental information relating to the release will be available on the Investor Relations page under About Us on www.bankunited.com prior to the call. Due to recent demand for conference call services, participants are encouraged to listen to the call via a live Internet webcast at https://ir.bankunited.com. To participate by telephone, participants will receive dial-in information and a unique PIN number upon completion of registration at https://register.vevent.com/register/BI3a7df9cdebad462ba05970d7dc7dba95. For those unable to join the live event, an archived webcast will be available on the Investor Relations page at https://ir.bankunited.com approximately two hours following the live webcast.

About BankUnited, Inc.

BankUnited, Inc., with total assets of $35.4 billion at June 30, 2024, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida, the New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused on the Southeast region. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call [phone] or visit www.BankUnited.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” "forecasts" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or 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 that 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 limitation) those relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity, including as impacted by external circumstances outside the Company's direct control, such as but not limited to adverse events or conditions impacting the financial services industry. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are available at the SEC’s website (www.sec.gov).

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands, except share and per share data)

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

ASSETS

 

 

 

 

 

Cash and due from banks:

 

 

 

 

 

Non-interest bearing

$ 12,631

 

$ 13,773

 

$ 14,945

Interest bearing

420,821

 

407,443

 

573,338

Cash and cash equivalents

433,452

 

421,216

 

588,283

Investment securities (including securities reported at fair value of $8,936,449, $8,914,959 and $8,867,354)

8,946,449

 

8,924,959

 

8,877,354

Non-marketable equity securities

223,159

 

252,609

 

310,084

Loans

24,628,484

 

24,226,300

 

24,633,684

Allowance for credit losses

(225,698)

 

(217,556)

 

(202,689)

Loans, net

24,402,786

 

24,008,744

 

24,430,995

Bank owned life insurance

297,827

 

295,970

 

318,459

Operating lease equipment, net

266,815

 

329,025

 

371,909

Goodwill

77,637

 

77,637

 

77,637

Other assets

779,781

 

795,494

 

786,886

Total assets

$ 35,427,906

 

$ 35,105,654

 

$ 35,761,607

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Liabilities:

 

 

 

 

 

Demand deposits:

 

 

 

 

 

Non-interest bearing

$ 8,065,209

 

$ 7,239,604

 

$ 6,835,236

Interest bearing

3,771,793

 

3,549,141

 

3,403,539

Savings and money market

11,463,211

 

11,122,916

 

11,135,708

Time

4,463,394

 

5,115,703

 

5,163,995

Total deposits

27,763,607

 

27,027,364

 

26,538,478

FHLB advances

3,285,000

 

3,905,000

 

5,115,000

Notes and other borrowings

708,835

 

708,978

 

708,973

Other liabilities

971,116

 

823,920

 

821,235

Total liabilities

32,728,558

 

32,465,262

 

33,183,686

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,758,609, 74,772,706 and 74,372,505 shares issued and outstanding

748

 

748

 

744

Paid-in capital

290,719

 

286,169

 

283,642

Retained earnings

2,709,503

 

2,677,403

 

2,650,956

Accumulated other comprehensive loss

(301,622)

 

(323,928)

 

(357,421)

Total stockholders' equity

2,699,348

 

2,640,392

 

2,577,921

Total liabilities and stockholders' equity

$35,427,906

 

$ 35,105,654

 

$ 35,761,607

BANKUNITED, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Interest income:

 

 

 

 

 

 

 

 

 

Loans

$

350,604

 

$

347,257

 

$

326,153

 

$

697,861

 

$

634,948

 

Investment securities

 

123,708

 

 

124,179

 

 

120,604

 

 

247,887

 

 

239,362

 

Other

 

8,986

 

 

10,038

 

 

16,664

 

 

19,024

 

 

29,527

 

Total interest income

 

483,298

 

 

481,474

 

 

463,421

 

 

964,772

 

 

903,837

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

208,091

 

 

209,998

 

 

156,868

 

 

418,089

 

 

290,498

 

Borrowings

 

49,185

 

 

56,619

 

 

92,675

 

 

105,804

 

 

171,587

 

Total interest expense

 

257,276

 

 

266,617

 

 

249,543

 

 

523,893

 

 

462,085

 

Net interest income before provision for credit losses

 

226,022

 

 

214,857

 

 

213,878

 

 

440,879

 

 

441,752

 

Provision for credit losses

 

19,538

 

 

15,285

 

 

15,517

 

 

34,823

 

 

35,305

 

Net interest income after provision for credit losses

 

206,484

 

 

199,572

 

 

198,361

 

 

406,056

 

 

406,447

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Deposit service charges and fees

 

4,909

 

 

5,313

 

 

5,182

 

 

10,222

 

 

10,515

 

Gain (loss) on investment securities, net

 

421

 

 

775

 

 

993

 

 

1,196

 

 

(11,556

)

Lease financing

 

5,640

 

 

11,440

 

 

12,519

 

 

17,080

 

 

25,628

 

Other non-interest income

 

13,215

 

 

9,349

 

 

6,793

 

 

22,564

 

 

17,435

 

Total non-interest income

 

24,185

 

 

26,877

 

 

25,487

 

 

51,062

 

 

42,022

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

75,588

 

 

75,920

 

 

67,414

 

 

151,508

 

 

138,465

 

Occupancy and equipment

 

10,973

 

 

10,569

 

 

11,043

 

 

21,542

 

 

21,845

 

Deposit insurance expense

 

8,530

 

 

13,530

 

 

7,597

 

 

22,060

 

 

15,504

 

Professional fees

 

4,497

 

 

2,510

 

 

3,518

 

 

7,007

 

 

6,436

 

Technology

 

20,567

 

 

20,315

 

 

20,437

 

 

40,882

 

 

42,163

 

Depreciation of operating lease equipment

 

7,896

 

 

9,213

 

 

11,232

 

 

17,109

 

 

22,753

 

Other non-interest expense

 

29,655

 

 

27,183

 

 

23,977

 

 

56,838

 

 

50,832

 

Total non-interest expense

 

157,706

 

 

159,240

 

 

145,218

 

 

316,946

 

 

297,998

 

Income before income taxes

 

72,963

 

 

67,209

 

 

78,630

 

 

140,172

 

 

150,471

 

Provision for income taxes

 

19,230

 

 

19,229

 

 

20,634

 

 

38,459

 

 

39,593

 

Net income

$

53,733

 

$

47,980

 

$

57,996

 

$

101,713

 

$

110,878

 

Earnings per common share, basic

$

0.72

 

$

0.64

 

$

0.78

 

$

1.36

 

$

1.49

 

Earnings per common share, diluted

$

0.72

 

$

0.64

 

$

0.78

 

$

1.36

 

$

1.48

 

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

 

Three Months Ended June 30,

 

Three Months Ended March 31,

 

Three Months Ended June 30,

 

2024

 

2024

 

2023

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

24,290,169

 

 

$

353,707

 

5.85

%

 

$

24,337,440

 

 

$

350,441

 

5.78

%

 

$

24,680,919

 

 

$

329,494

 

5.35

%

Investment securities (3)

 

8,894,517

 

 

 

124,572

 

5.60

%

 

 

8,952,453

 

 

 

125,025

 

5.59

%

 

 

9,369,019

 

 

 

121,520

 

5.19

%

Other interest earning assets

 

711,586

 

 

 

8,986

 

5.08

%

 

 

763,460

 

 

 

10,038

 

5.29

%

 

 

1,323,025

 

 

 

16,664

 

5.05

%

Total interest earning assets

 

33,896,272

 

 

 

487,265

 

5.77

%

 

 

34,053,353

 

 

 

485,504

 

5.72

%

 

 

35,372,963

 

 

 

467,678

 

5.30

%

Allowance for credit losses

 

(225,161

)

 

 

 

 

 

 

(206,747

)

 

 

 

 

 

 

(162,463

)

 

 

 

 

Non-interest earning assets

 

1,571,649

 

 

 

 

 

 

 

1,589,333

 

 

 

 

 

 

 

1,744,693

 

 

 

 

 

Total assets

$

35,242,760

 

 

 

 

 

 

$

35,435,939

 

 

 

 

 

 

$

36,955,193

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

3,742,071

 

 

$

35,249

 

3.79

%

 

$

3,584,363

 

 

$

33,507

 

3.76

%

 

$

2,772,839

 

 

$

18,417

 

2.66

%

Savings and money market deposits

 

11,176,000

 

 

 

118,945

 

4.28

%

 

 

11,234,259

 

 

 

118,639

 

4.25

%

 

 

10,285,494

 

 

 

88,892

 

3.47

%

Time deposits

 

4,750,640

 

 

 

53,897

 

4.56

%

 

 

5,231,178

 

 

 

57,852

 

4.45

%

 

 

5,494,631

 

 

 

49,559

 

3.62

%

Total interest bearing deposits

 

19,668,711

 

 

 

208,091

 

4.26

%

 

 

20,049,800

 

 

 

209,998

 

4.21

%

 

 

18,552,964

 

 

 

156,868

 

3.39

%

FHLB advances

 

3,764,286

 

 

 

40,032

 

4.28

%

 

 

4,570,220

 

 

 

47,496

 

4.18

%

 

 

7,288,187

 

 

 

83,429

 

4.59

%

Notes and other borrowings

 

711,167

 

 

 

9,153

 

5.15

%

 

 

709,017

 

 

 

9,123

 

5.15

%

 

 

719,368

 

 

 

9,246

 

5.14

%

Total interest bearing liabilities

 

24,144,164

 

 

 

257,276

 

4.28

%

 

 

25,329,037

 

 

 

266,617

 

4.23

%

 

 

26,560,519

 

 

 

249,543

 

3.77

%

Non-interest bearing demand deposits

 

7,448,633

 

 

 

 

 

 

 

6,560,926

 

 

 

 

 

 

 

7,067,053

 

 

 

 

 

Other non-interest bearing liabilities

 

960,691

 

 

 

 

 

 

 

906,266

 

 

 

 

 

 

 

798,279

 

 

 

 

 

Total liabilities

 

32,553,488

 

 

 

 

 

 

 

32,796,229

 

 

 

 

 

 

 

34,425,851

 

 

 

 

 

Stockholders' equity

 

2,689,272

 

 

 

 

 

 

 

2,639,710

 

 

 

 

 

 

 

2,529,342

 

 

 

 

 

Total liabilities and stockholders' equity

$

35,242,760

 

 

 

 

 

 

$

35,435,939

 

 

 

 

 

 

$

36,955,193

 

 

 

 

 

Net interest income

 

 

$

229,989

 

 

 

 

 

$

218,887

 

 

 

 

 

$

218,135

 

 

Interest rate spread

 

 

 

 

1.49

%

 

 

 

 

 

1.49

%

 

 

 

 

 

1.53

%

Net interest margin

 

 

 

 

2.72

%

 

 

 

 

 

2.57

%

 

 

 

 

 

2.47

%

_____________

(1)

On a tax-equivalent basis where applicable

(2)

Annualized

(3)

At fair value except for securities held to maturity

BANKUNITED, INC. AND SUBSIDIARIES

AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

 

Six Months Ended June 30,

 

2024

 

2023

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

 

Average

Balance

 

Interest (1)

 

Yield/

Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans

$

24,313,806

 

 

$

704,149

 

5.82

%

 

$

24,702,487

 

 

$

641,617

 

5.22

%

Investment securities (3)

 

8,923,485

 

 

 

249,596

 

5.59

%

 

 

9,519,928

 

 

 

241,187

 

5.07

%

Other interest earning assets

 

737,523

 

 

 

19,024

 

5.19

%

 

 

1,182,077

 

 

 

29,527

 

5.04

%

Total interest earning assets

 

33,974,814

 

 

 

972,769

 

5.74

%

 

 

35,404,492

 

 

 

912,331

 

5.18

%

Allowance for credit losses

 

(215,954

)

 

 

 

 

 

 

(156,798

)

 

 

 

 

Non-interest earning assets

 

1,580,491

 

 

 

 

 

 

 

1,768,714

 

 

 

 

 

Total assets

$

35,339,351

 

 

 

 

 

 

$

37,016,408

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

3,663,217

 

 

$

68,756

 

3.77

%

 

$

2,570,422

 

 

$

29,291

 

2.30

%

Savings and money market deposits

 

11,205,130

 

 

 

237,584

 

4.26

%

 

 

11,169,671

 

 

 

180,287

 

3.25

%

Time deposits

 

4,990,909

 

 

 

111,749

 

4.50

%

 

 

5,013,230

 

 

 

80,920

 

3.26

%

Total interest bearing deposits

 

19,859,256

 

 

 

418,089

 

4.23

%

 

 

18,753,323

 

 

 

290,498

 

3.12

%

Federal funds purchased

 

—

 

 

 

—

 

—

%

 

 

70,150

 

 

 

1,582

 

4.51

%

FHLB advances

 

4,167,253

 

 

 

87,528

 

4.22

%

 

 

6,878,867

 

 

 

151,467

 

4.44

%

Notes and other borrowings

 

710,092

 

 

 

18,276

 

5.15

%

 

 

721,376

 

 

 

18,538

 

5.14

%

Total interest bearing liabilities

 

24,736,601

 

 

 

523,893

 

4.26

%

 

 

26,423,716

 

 

 

462,085

 

3.53

%

Non-interest bearing demand deposits

 

7,004,780

 

 

 

 

 

 

 

7,261,557

 

 

 

 

 

Other non-interest bearing liabilities

 

933,479

 

 

 

 

 

 

 

809,785

 

 

 

 

 

Total liabilities

 

32,674,860

 

 

 

 

 

 

 

34,495,058

 

 

 

 

 

Stockholders' equity

 

2,664,491

 

 

 

 

 

 

 

2,521,350

 

 

 

 

 

Total liabilities and stockholders' equity

$

35,339,351

 

 

 

 

 

 

$

37,016,408

 

 

 

 

 

Net interest income

 

 

$

448,876

 

 

 

 

 

$

450,246

 

 

Interest rate spread

 

 

 

 

1.48

%

 

 

 

 

 

1.65

%

Net interest margin

 

 

 

 

2.64

%

 

 

 

 

 

2.55

%

_____________

(1)

On a tax-equivalent basis where applicable

(2)

Annualized

(3)

At fair value except for securities held to maturity

BANKUNITED, INC. AND SUBSIDIARIES

EARNINGS PER COMMON SHARE

(In thousands except share and per share amounts)

 

Three Months Ended

 

Six Months Ended

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

$

53,733

 

 

$

47,980

 

 

$

57,996

 

 

$

101,713

 

 

$

110,878

 

Distributed and undistributed earnings allocated to participating securities

 

(748

)

 

 

(680

)

 

 

(881

)

 

 

(1,429

)

 

 

(1,679

)

Income allocated to common stockholders for basic earnings per common share

$

52,985

 

 

$

47,300

 

 

$

57,115

 

 

$

100,284

 

 

$

109,199

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

74,762,498

 

 

 

74,509,107

 

 

 

74,424,631

 

 

 

74,635,803

 

 

 

74,588,904

 

Less average unvested stock awards

 

(1,110,233

)

 

 

(1,127,838

)

 

 

(1,183,039

)

 

 

(1,119,035

)

 

 

(1,188,430

)

Weighted average shares for basic earnings per common share

 

73,652,265

 

 

 

73,381,269

 

 

 

73,241,592

 

 

 

73,516,768

 

 

 

73,400,474

 

Basic earnings per common share

$

0.72

 

 

$

0.64

 

 

$

0.78

 

 

$

1.36

 

 

$

1.49

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Income allocated to common stockholders for basic earnings per common share

$

52,985

 

 

$

47,300

 

 

$

57,115

 

 

$

100,284

 

 

$

109,199

 

Adjustment for earnings reallocated from participating securities

 

2

 

 

 

1

 

 

 

1

 

 

 

4

 

 

 

5

 

Income used in calculating diluted earnings per common share

$

52,987

 

 

$

47,301

 

 

$

57,116

 

 

$

100,288

 

 

$

109,204

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares for basic earnings per common share

 

73,652,265

 

 

 

73,381,269

 

 

 

73,241,592

 

 

 

73,516,768

 

 

 

73,400,474

 

Dilutive effect of certain share-based awards

 

365,988

 

 

 

255,824

 

 

 

179,318

 

 

 

310,906

 

 

 

312,708

 

Weighted average shares for diluted earnings per common share

 

74,018,253

 

 

 

73,637,093

 

 

 

73,420,910

 

 

 

73,827,674

 

 

 

73,713,182

 

Diluted earnings per common share

$

0.72

 

 

$

0.64

 

 

$

0.78

 

 

$

1.36

 

 

$

1.48

 

BANKUNITED, INC. AND SUBSIDIARIES

SELECTED RATIOS

 

At or for the Three Months Ended

 

At or for the Six Months Ended

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Financial ratios (4)

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.61

%

 

 

0.54

%

 

 

0.63

%

 

 

0.58

%

 

 

0.60

%

Return on average stockholders’ equity

 

8.0

%

 

 

7.3

%

 

 

9.2

%

 

 

7.7

%

 

 

8.9

%

Net interest margin (3)

 

2.72

%

 

 

2.57

%

 

 

2.47

%

 

 

2.64

%

 

 

2.55

%

Loans to deposits

 

88.7

%

 

 

89.6

%

 

 

95.3

%

 

 

88.7

%

 

 

95.3

%

Tangible book value per common share

$

35.07

 

 

$

34.27

 

 

$

32.90

 

 

$

35.07

 

 

$

32.90

 

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

Asset quality ratios

 

 

 

 

 

Non-performing loans to total loans (1)(5)

0.70

%

 

0.48

%

 

0.52

%

Non-performing assets to total assets (2)(5)

0.50

%

 

0.34

%

 

0.37

%

Allowance for credit losses to total loans

0.92

%

 

0.90

%

 

0.82

%

Allowance for credit losses to total commercial(6)

1.42

%

 

1.42

%

 

1.29

%

Allowance for credit losses to non-performing loans (1)(5)

130.12

%

 

187.92

%

 

159.54

%

Net charge-offs to average loans(4)

0.12

%

 

0.02

%

 

0.09

%

_____________

(1)

We define non-performing loans to include non-accrual loans and loans other than purchased credit deteriorated and government insured residential loans that are past due 90 days or more and still accruing. Contractually delinquent purchased credit deteriorated and government insured residential loans on which interest continues to be accrued are excluded from non-performing loans.

(2)

Non-performing assets include non-performing loans, OREO and other repossessed assets.

(3)

On a tax-equivalent basis.

(4)

Annualized for the three and six month periods as applicable.

(5)

Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $39.0 million or 0.16% of total loans and 0.11% of total assets at June 30, 2024, $40.0 million or 0.16% of total loans and 0.11% of total assets at March 31, 2024, and $41.8 million or 0.17% of total loans and 0.12% of total assets at December 31, 2023.

(6)

For purposes of this ratio, commercial loans includes the C&I and CRE sub-segments, as well as franchise and equipment finance. Due to their unique risk profiles, MWL and municipal finance are excluded from this ratio.

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

Required to be Considered Well Capitalized

 

BankUnited, Inc.

 

BankUnited, N.A.

 

BankUnited, Inc.

 

BankUnited, N.A.

 

BankUnited, Inc.

 

BankUnited, N.A.

 

Capital ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage

8.2 %

 

9.6 %

 

8.1 %

 

9.3 %

 

7.9 %

 

9.1 %

 

5.0 %

Common Equity Tier 1 ("CET1") risk-based capital

11.6 %

 

13.5 %

 

11.6 %

 

13.4 %

 

11.4 %

 

13.1 %

 

6.5 %

Total risk-based capital

13.6 %

 

14.4 %

 

13.7 %

 

14.3 %

 

13.4 %

 

13.9 %

 

10.0 %

Tangible Common Equity/Tangible Assets

7.4 %

 

N/A

 

7.3 %

 

N/A

 

7.0 %

 

N/A

 

N/A

Non-GAAP Financial Measures

Tangible book value per common share is a non-GAAP financial measure. Management believes this measure is relevant to understanding the capital position and performance of the Company. Disclosure of this non-GAAP financial measure also provides a meaningful basis for comparison to other financial institutions as it is a metric commonly used in the banking industry. The following table reconciles the non-GAAP financial measurement of tangible book value per common share to the comparable GAAP financial measurement of book value per common share at the dates indicated (in thousands except share and per share data):

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Total stockholders’ equity

$

2,699,348

 

$

2,640,392

 

$

2,526,310

Less: goodwill and other intangible assets

 

77,637

 

 

77,637

 

 

77,637

Tangible stockholders’ equity

$

2,621,711

 

$

2,562,755

 

$

2,448,673

 

 

 

 

 

 

Common shares issued and outstanding

 

74,758,609

 

 

74,772,706

 

 

74,429,948

 

 

 

 

 

 

Book value per common share

$

36.11

 

$

35.31

 

$

33.94

 

 

 

 

 

 

Tangible book value per common share

$

35.07

 

$

34.27

 

$

32.90

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718442866/en/

BankUnited, Inc. Investor Relations: Leslie N. Lunak, 786-313-1698; [e-mail]