BankUnited (BKU) Q4 2024 earnings summary

Executive summary

• Reported a strong fourth quarter and fiscal year, with Q4 2024 net income of $69.3 million ($0.91 per share), exceeding consensus and up from $0.81 last quarter.

• EPS for Q4 2024 was $0.91, compared to $0.27 in Q4 2023 and $0.81 in Q3 2024.

• Net interest income grew 10% year-over-year to $239 million, with NIM expanding to 2.84%.

• Emphasized consistent delivery on prior year guidance, with most targets met or exceeded, and a focus on sustainable, organic balance sheet improvements.

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

Financial highlights

• EPS increased sequentially each quarter: $0.62 (Q4 2023), $0.64, $0.72, $0.81, to $0.91 (Q4 2024).

• Net interest margin (NIM) rose to 2.84% from 2.78% last quarter and 2.60% in Q4 2023, driven by lower deposit costs and better-than-expected deposit performance.

• Net income for the year grew 15% after adjusting for the FDIC special assessment.

• Non-interest income increased $8 million year-over-year to $25 million.

• Loan-to-deposit ratio improved to 87.2% from 92.8% a year ago.

Outlook and guidance

• Guidance for 2025 largely unchanged: double-digit growth in non-interest DDA, mid-single-digit total deposit growth, and continued reduction in wholesale funding.

• Core C&I and CRE loan portfolios expected to grow high single digits, while non-core and residential portfolios will continue to decline.

• NIM expected to surpass 3% in the second half of 2025.

• Expenses projected to rise mid-single digits, including railcar costs.

• Available liquidity covers 150% of uninsured, uncollateralized deposits; 63% of deposits are insured or collateralized.