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Sep 30, 2024
BankUnited Q3 2024 Earnings Report
Reported net income of $61.5 million and EPS of $0.81, driven by balance sheet transformation and margin expansion.
Key Takeaways
BankUnited reported a positive third quarter with net income of $61.5 million, or $0.81 per diluted share. The net interest margin expanded, and credit quality remained well-managed. The company is optimistic about future growth opportunities and is focusing on strengthening core customer relationships.
Net interest margin expanded by 0.06% to 2.78%.
Average cost of total deposits declined by 0.03% to 3.06%.
Total loans declined by $230 million, with growth in commercial real estate and mortgage warehouse lending offset by declines in other segments.
Net charge-offs remained low at $6.5 million, with an annualized net charge-off ratio of 0.12%.
Forward Guidance
BankUnited anticipates continued balance sheet transformation and margin expansion. The company is optimistic about growth opportunities in its markets and is focused on strengthening core customer relationships.
Positive Outlook
- Improving core profitability through strategic priorities.
- Balance sheet transformation story continues.
- Margin expanded again this quarter.
- Credit remains well managed.
- Optimistic about the environment and opportunities to grow core customer relationships.
Challenges Ahead
- Decline in certain loan portfolios, including residential, franchise, equipment, and municipal finance.
- Increase in criticized and classified commercial loans.
- Potential impact of Hurricane Milton on customers and credit portfolio is still being assessed.
- Non-interest expense increased due to compensation and benefits.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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