BankUnited (BKU) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $69.3 million, with EPS of $0.91, both significantly above consensus and prior year results.

• Key performance metrics (EPS, NIM, ROA, ROE) improved quarter-over-quarter throughout the year.

• Outperformance was driven by better-than-expected deposit costs, growth in non-interest DDA, and improved funding profile.

• Strategic runoff in non-core segments led to a $336 million year-over-year decline in total loans.

Financial highlights

• Net interest income increased $22 million year-over-year and $5.1 million sequentially; NIM rose to 2.84%.

• Net income for the quarter was $69.3 million, or $0.91 per share; adjusted net income grew 15% year-over-year, excluding FDIC special assessment.

• Average cost of total deposits declined to 2.72%; cost of interest-bearing deposits fell to 3.75%.

• Non-interest DDA grew by $173 million in the quarter and $781 million for the year; total deposits up $1.4 billion year-over-year.

• Loans to deposits ratio improved to 87.2% from 92.8% a year ago.

Outlook and guidance

• 2025 guidance includes double-digit growth in non-interest DDA, mid-single-digit growth in total deposits, and low single-digit total loan growth.

• Margin expected to surpass 3% in the latter half of 2025; NII projected to grow mid to high single digits.

• Expenses to rise mid-single digits, including railcar costs; provision expected to increase as portfolio shifts toward commercial loans.

• Management continues to focus on improving funding profile, asset mix, and net interest margin.

• Seasonality expected: stronger deposit growth in first half, loan production ramps up in later quarters.