BankUnited, Inc. Reports 2024 Results

MIAMI LAKES, Fla.--(BUSINESS WIRE)--BankUnited, Inc. (the “Company”) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2024. "We are very excited about the momentum we've generated and the improvement we've seen in the funding base and profitability profile of the Company over the course of 2024," said Rajinder Singh, Chairman, President and Chief Executive Officer. For the quarter ended December 31, 2024, the Company reported net income of $69.3 million, or $0.91 per diluted share, compared to $61.5 million, or $0.81 per diluted share, for the immediately preceding quarter ended September 30, 2024 and $20.8 million, or $0.27 per diluted share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, the Company reported net income of $232.5 million, or $3.08 per diluted share, compared to $178.7 million, or $2.38 per diluted share, for the year ended December 31, 2023. Results for the quarter and year ended December 31, 2023 were negatively impacted by a $35.4 million FDIC special assessment, pre-tax. This item reduced net income by $26.2 million and EPS by $0.35 for the quarter and year ended December 31, 2023. Quarterly Highlights We continue to execute on strategic priorities focused on improving core profitability. EPS, the net interest margin, ROAA and ROAE have improved notably since the fourth quarter of 2023, as well as for the year ended December 31, 2024 compared to the year ended December 31, 2023. The net interest margin, calculated on a tax-equivalent basis, expanded by 0.06% to 2.84% for the quarter ended December 31, 2024 from 2.78% for the immediately preceding quarter and by 0.24% from 2.60% for the comparable quarter of the prior year. Average non-interest bearing demand deposits ("NIDDA") for the quarter ended December 31, 2024 exceeded our expectations and we made outstanding progress reducing the cost of interest bearing deposits. For the year ended December 31, 2024, the net interest margin improved to 2.73% from 2.56% for the year ended December 31, 2023. The average cost of total deposits declined by 0.34% to 2.72% for the quarter ended December 31, 2024 from 3.06% for the immediately preceding quarter ended September 30, 2024, while the average cost of interest bearing deposits declined by 0.45% to 3.75% from 4.20% for those same comparable periods. The spot APY of total deposits declined to 2.63% at December 31, 2024 from 2.93% at September 30, 2024 while the spot APY of interest bearing deposits declined to 3.58% at December 31, 2024 from 4.01% at September 30, 2024. Average NIDDA grew by $173 million for the quarter ended December 31, 2024 compared to the immediately preceding quarter and by $648 million compared to the fourth quarter of 2023. On a point-to-point basis, NIDDA grew by $781 million for the year ended December 31, 2024 and was relatively flat, declining by only $19 million in spite of seasonal headwinds, for the fourth quarter of 2024. At December 31, 2024, NIDDA was 27% of total deposits. Wholesale funding, including FHLB advances and brokered deposits, declined by $346 million for the quarter ended December 31, 2024. For the year ended December 31, 2024, wholesale funding declined by $2.3 billion. Total deposits was relatively flat quarter over quarter, growing by $9.5 million for the quarter ended December 31, 2024. For the year ended December 31, 2024, total deposits grew by $1.3 billion; non-brokered deposits grew by $1.4 billion. Total loans declined by $101 million for the quarter ended December 31, 2024. The core CRE and C&I segments grew by $185 million and mortgage warehouse grew by $14 million. Consistent with our balance sheet strategy, the residential, franchise, equipment and municipal finance portfolios declined by a combined $299 million. For the year ended December 31, 2024, the core CRE and C&I segments grew by $470 million, mortgage warehouse grew by $153 million and the residential, franchise, equipment and municipal finance portfolios declined by a combined $959 million. The pace of C&I growth over the course of 2024 was impacted by an increased level of payoffs and rationalization of non-relationship credits. The loan to deposit ratio declined to 87.2% at December 31, 2024, from 87.6% at September 30, 2024 and 92.8% at December 31, 2023. Total criticized and classified commercial loans declined by $75.1 million for the quarter ended December 31, 2024, however, non-performing loans increased by $26.2 million, primarily related to one CRE office loan. The NPA ratio was 0.73%, including 0.10% related to the guaranteed portion of non-accrual SBA loans, at December 31, 2024 compared to 0.64%, including 0.10% related to the guaranteed portion of non-accrual SBA loans at September 30, 2024. The net charge-off ratio for the year ended December 31, 2024 was 0.16%. The ratio of the ACL to total loans was 0.92% at December 31, 2024; the ratio of the ACL to non-performing loans was 89.01%. The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.37% at December 31, 2024 and the ACL to loans ratio for CRE office loans was 2.30%. Our commercial real estate exposure totaled 26% of loans and 169% of the Bank's total risk based capital at December 31, 2024. By comparison, based on call report data as of September 30, 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 December 31, 2024, the weighted average LTV of the CRE portfolio was 55.0%, the weighted average DSCR was 1.76, 54% of the portfolio was collateralized by properties located in Florida and 25% was collateralized by properties located in the New York tri-state area. For the office sub-segment, the weighted average LTV was 65.2%, the weighted average DSCR was 1.57, 57% was collateralized by properties in Florida, substantially all of which was suburban, and 23% was collateralized by properties located in the New York tri-state area. Our capital position is robust. At December 31, 2024, CET1 was 12.0% at a consolidated level. Pro-forma CET1, including accumulated other comprehensive income, was 10.9% at December 31, 2024. The ratio of tangible common equity to tangible assets increased to 7.8% at December 31, 2024. Book value and tangible book value per common share continued to grow, to $37.65 and $36.61, respectively, at December 31, 2024, compared to $37.56 and $36.52, respectively, at September 30, 2024, and $34.66 and $33.62, respectively at December 31, 2023. Loans Loan portfolio composition at the dates indicated follows (dollars in thousands): December 31, 2024 September 30, 2024 December 31, 2023 Core C&I and CRE sub-segments: Non-owner occupied commercial real estate $ 5,652,203 23.3 % $ 5,488,884 22.5 % $ 5,323,241 21.6 % Construction and land 561,989 2.3 % 497,928 2.0 % 495,992 2.0 % Owner occupied commercial real estate 1,941,004 8.0 % 1,999,515 8.2 % 1,935,743 7.9 % Commercial and industrial 7,042,222 28.9 % 7,026,412 28.9 % 6,971,981 28.3 % 15,197,418 62.5 % 15,012,739 61.6 % 14,726,957 59.8 % Franchise and equipment finance 213,477 0.9 % 277,704 1.1 % 380,347 1.5 % Pinnacle - municipal finance 720,661 3.0 % 749,035 3.1 % 884,690 3.6 % Mortgage warehouse lending ("MWL") 585,610 2.4 % 571,783 2.3 % 432,663 1.8 % Residential 7,580,814 31.2 % 7,787,442 31.9 % 8,209,027 33.3 % $ 24,297,980 100.0 % $ 24,398,703 100.0 % $ 24,633,684 100.0 % For the quarter ended December 31, 2024, total loans declined by $101 million. The CRE portfolio grew by $227 million and MWL grew by $14 million while the C&I portfolio declined by $43 million. Consistent with our balance sheet strategy, residential loans declined by $207 million; the franchise, equipment, and municipal finance portfolios declined by an aggregate $93 million. Asset Quality and the ACL The following table presents information about the ACL at the dates indicated as well as net charge-off rates for the periods ended December 31, 2024, September 30, 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 % September 30, 2024 $ 228,249 0.94 % 1.41 % 101.68 % 0.12 % December 31, 2024 $ 223,153 0.92 % 1.37 % 89.01 % 0.16 ___________________________ (1) Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates. (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 decline in the ACL coverage ratios at December 31, 2024 as compared to the prior quarter-end is related to C&I charge-offs during the quarter, the majority of which were previously reserved for. The ACL at December 31, 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 December 31, 2024, the provision for credit losses, including both funded and unfunded loan commitments, was $11.0 million, compared to $9.2 million for the immediately preceding quarter ended September 30, 2024 and $19.3 million for the quarter ended December 31, 2023. The most significant factor leading to the decrease in ACL for the quarter was net charge offs; this reduction was partially offset by increases in specific reserves, the impact of the economic forecast and an increase in qualitative overlays. Three C&I loans accounted for substantially all of the charge-offs for the quarter. The following table summarizes the activity in the ACL for the periods indicated (in thousands): Three Months Ended Years Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Beginning balance $ 228,249 $ 225,698 $ 196,063 $ 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 2022-02 228,249 225,698 196,063 202,689 146,152 Provision 12,267 9,091 16,257 58,986 78,924 Net charge-offs (17,363 ) (6,540 ) (9,631 ) (38,522 ) (22,387 ) Ending balance $ 223,153 $ 228,249 $ 202,689 $ 223,153 $ 202,689 As detailed in the following table, criticized and classified commercial loans declined by $75.1 million for the quarter ended December 31, 2024 (in thousands): December 31, 2024 September 30, 2024 December 31, 2023 CRE Total Commercial CRE Total Commercial CRE Total Commercial Special mention $ 58,771 $ 262,387 $ 145,338 $ 323,326 $ 97,552 $ 319,905 Substandard - accruing 633,614 894,754 587,097 932,746 390,724 711,266 Substandard - non-accruing 95,378 219,758 70,860 186,565 13,727 86,903 Doubtful — 6,856 — 16,265 — 19,035 Total $ 787,763 $ 1,383,755 $ 803,295 $ 1,458,902 $ 502,003 $ 1,137,109 Non-performing loans totaled $250.7 million or 1.03% of total loans at December 31, 2024, compared to $224.5 million or 0.92% of total loans at September 30, 2024. The increase in non-performing loans for the quarter ended December 31, 2024 related primarily to one CRE office loan. Non-performing loans included $34.3 million and $35.1 million of the guaranteed portion of SBA loans on non-accrual status, representing 0.14% of total loans at both December 31, 2024 and September 30, 2024. Net Interest Income Net interest income for the quarter ended December 31, 2024 was $239.3 million, compared to $234.1 million for the immediately preceding quarter ended September 30, 2024, and $217.2 million for the quarter ended December 31, 2023. Interest income decreased by $24.4 million for the quarter ended December 31, 2024, compared to the immediately preceding quarter, while interest expense decreased by $29.5 million. The Company’s net interest margin, calculated on a tax-equivalent basis, increased by 0.06% to 2.84% for the quarter ended December 31, 2024, from 2.78% for the immediately preceding quarter ended September 30, 2024. Factors impacting the net interest margin for the quarter ended December 31, 2024 were: The average rate paid on interest bearing deposits declined to 3.75% for the quarter ended December 31, 2024, from 4.20% for the quarter ended September 30, 2024. This decline reflected initiatives taken to lower rates paid on deposits in response to declines in the Fed Funds rate and the re-pricing of term deposits. The average rate paid on FHLB advances declined to 3.82% for the quarter ended December 31, 2024, from 4.27% for the quarter ended September 30, 2024, reflecting the repayment or repricing of predominantly shorter term high rate advances. The tax-equivalent yield on loans declined to 5.60% for the quarter ended December 31, 2024, from 5.87% for the quarter ended September 30, 2024 reflecting the impact of declining market rates on the predominantly floating rate commercial portfolio. The tax-equivalent yield on investments declined to 5.31% for the quarter ended December 31, 2024, from 5.62% for the quarter ended September 30, 2024. This decrease resulted primarily from the reset of coupon rates on variable rate securities. Overall, the reduction in cost of interest bearing liabilities outpaced the decline in the yield on interest earning assets. Non-interest income and Non-interest expense Lease financing: Declines in both lease financing income and depreciation of operating lease equipment for the year ended December 31, 2024 compared to the year ended December 31, 2023 corresponded with the reduction in the portfolio of operating lease equipment. Quarterly fluctuations in lease financing income may be caused by variability in residual income. Other non-interest income: Year-over-year increases in other non-interest income include increases in loan related and syndication fees, commercial card revenue and income related to bank owned life insurance. Employee compensation and benefits: Year-over-year increases in compensation relate to investments we are making in people to support future growth of the commercial business, regular merit increases, and increased variable compensation cost, related in part to an increase in the Company's stock price. As discussed above, non-interest expense for the year and three months ended December 31, 2023 included a $35.4 million FDIC special assessment. Railcar refurbishment costs of approximately $8 million that we had expected to incur in the fourth quarter of 2024 did not materialize, and are expected instead to occur in 2025. Earnings Conference Call and Presentation A conference call to discuss quarterly results will be held at 9:00 a.m. ET on Wednesday, January 22, 2025 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/BI3806d72590724f8daf0fcb6899fb73f4. 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 $35.2 billion at December 31, 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 (877) 779-2265 or visit www.BankUnited.com. BankUnited can be found on Facebook at facebook.com/BankUnited.official, LinkedIn @BankUnited and on X @BankUnited. 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) December 31, 2024 September 30, 2024 December 31, 2023 ASSETS Cash and due from banks: Non-interest bearing $ 12,078 $ 14,746 $ 14,945 Interest bearing 479,038 875,122 573,338 Cash and cash equivalents 491,116 889,868 588,283 Investment securities (including securities reported at fair value of $9,130,244, $9,109,860 and $8,867,354) 9,130,244 9,119,860 8,877,354 Non-marketable equity securities 206,297 237,172 310,084 Loans 24,297,980 24,398,703 24,633,684 Allowance for credit losses (223,153 ) (228,249 ) (202,689 ) Loans, net 24,074,827 24,170,454 24,430,995 Bank owned life insurance 284,570 306,313 318,459 Operating lease equipment, net 223,844 241,625 371,909 Goodwill 77,637 77,637 77,637 Other assets 753,207 741,816 786,886 Total assets $ 35,241,742 $ 35,784,745 $ 35,761,607 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Demand deposits: Non-interest bearing $ 7,616,182 $ 7,635,427 $ 6,835,236 Interest bearing 4,892,814 5,171,865 3,403,539 Savings and money market 11,055,418 10,324,697 11,135,708 Time 4,301,289 4,724,236 5,163,995 Total deposits 27,865,703 27,856,225 26,538,478 FHLB advances 2,930,000 3,580,000 5,115,000 Notes and other borrowings 708,553 708,694 708,973 Other liabilities 923,168 832,022 821,235 Total liabilities 32,427,424 32,976,941 33,183,686 Commitments and contingencies Stockholders' equity: Common stock, par value $0.01 per share, 400,000,000 shares authorized; 74,748,370, 74,749,012 and 74,372,505 shares issued and outstanding 747 747 744 Paid-in capital 301,672 296,107 283,642 Retained earnings 2,796,440 2,749,314 2,650,956 Accumulated other comprehensive loss (284,541 ) (238,364 ) (357,421 ) Total stockholders' equity 2,814,318 2,807,804 2,577,921 Total liabilities and stockholders' equity $ 35,241,742 $ 35,784,745 $ 35,761,607 BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) Three Months Ended Years Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Interest income: Loans $ 336,816 $ 355,220 $ 346,255 $ 1,389,897 $ 1,318,217 Investment securities 121,872 127,907 125,993 497,666 488,212 Other 9,300 9,229 10,957 37,553 51,152 Total interest income 467,988 492,356 483,205 1,925,116 1,857,581 Interest expense: Deposits 188,853 208,630 192,833 815,572 660,305 Borrowings 39,876 49,598 73,162 195,278 323,472 Total interest expense 228,729 258,228 265,995 1,010,850 983,777 Net interest income before provision for credit losses 239,259 234,128 217,210 914,266 873,804 Provision for credit losses 11,001 9,248 19,253 55,072 87,607 Net interest income after provision for credit losses 228,258 224,880 197,957 859,194 786,197 Non-interest income: Deposit service charges and fees 4,988 5,016 5,201 20,226 20,906 Gain (loss) on investment securities, net 804 127 617 2,127 (10,052 ) Lease financing 7,162 6,368 3,723 30,610 45,882 Other non-interest income 12,251 11,377 7,551 46,192 30,102 Total non-interest income 25,205 22,888 17,092 99,155 86,838 Non-interest expense: Employee compensation and benefits 82,315 81,781 73,454 315,604 280,744 Occupancy and equipment 11,776 12,242 10,610 45,560 43,345 Deposit insurance expense 6,662 7,421 43,453 36,143 66,747 Professional fees 5,150 4,953 5,052 17,110 14,184 Technology 21,002 21,094 18,628 82,978 79,984 Depreciation of operating lease equipment 4,352 4,666 10,476 26,127 44,446 Other non-interest expense 29,215 32,425 29,190 118,478 106,501 Total non-interest expense 160,472 164,582 190,863 642,000 635,951 Income before income taxes 92,991 83,186 24,186 316,349 237,084 Provision for income taxes 23,689 21,734 3,374 83,882 58,413 Net income $ 69,302 $ 61,452 $ 20,812 $ 232,467 $ 178,671 Earnings per common share, basic $ 0.92 $ 0.82 $ 0.27 $ 3.10 $ 2.39 Earnings per common share, diluted $ 0.91 $ 0.81 $ 0.27 $ 3.08 $ 2.38 BANKUNITED, INC. AND SUBSIDIARIES AVERAGE BALANCES AND YIELDS (Dollars in thousands) Three Months Ended December 31, Three Months Ended September 30, Three Months Ended December 31, 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 $ 24,152,602 $ 339,725 5.60 % $ 24,299,898 $ 358,259 5.87 % $ 24,416,013 $ 349,603 5.69 % Investment securities (3) 9,236,863 122,648 5.31 % 9,171,185 128,762 5.62 % 8,850,397 126,870 5.73 % Other interest earning assets 785,947 9,300 4.71 % 722,366 9,229 5.08 % 801,833 10,957 5.42 % Total interest earning assets 34,175,412 471,673 5.50 % 34,193,449 496,250 5.79 % 34,068,243 487,430 5.70 % Allowance for credit losses (235,211 ) (231,383 ) (198,984 ) Non-interest earning assets 1,405,129 1,444,410 1,715,795 Total assets $ 35,345,330 $ 35,406,476 $ 35,585,054 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 5,045,860 $ 46,759 3.69 % $ 3,930,101 $ 37,294 3.78 % $ 3,433,216 $ 31,978 3.70 % Savings and money market deposits 10,462,295 93,912 3.57 % 11,304,999 119,856 4.22 % 10,287,945 104,188 4.02 % Time deposits 4,529,737 48,182 4.23 % 4,524,215 51,480 4.53 % 5,225,756 56,667 4.30 % Total interest bearing deposits 20,037,892 188,853 3.75 % 19,759,315 208,630 4.20 % 18,946,917 192,833 4.04 % FHLB advances 3,200,652 30,750 3.82 % 3,766,630 40,471 4.27 % 5,545,978 64,034 4.58 % Notes and other borrowings 708,689 9,126 5.15 % 708,829 9,127 5.15 % 711,073 9,128 5.13 % Total interest bearing liabilities 23,947,233 228,729 3.80 % 24,234,774 258,228 4.24 % 25,203,968 265,995 4.19 % Non-interest bearing demand deposits 7,557,267 7,384,721 6,909,027 Other non-interest bearing liabilities 995,789 1,009,157 903,099 Total liabilities 32,500,289 32,628,652 33,016,094 Stockholders' equity 2,845,041 2,777,824 2,568,960 Total liabilities and stockholders' equity $ 35,345,330 $ 35,406,476 $ 35,585,054 Net interest income $ 242,944 $ 238,022 $ 221,435 Interest rate spread 1.70 % 1.55 % 1.51 % Net interest margin 2.84 % 2.78 % 2.60 % ___________________________ (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) Years Ended December 31, 2024 2023 Average Balance Interest (1) Yield/ Rate (1) Average Balance Interest (1) Yield/ Rate (1) Assets: Interest earning assets: Loans $ 24,269,787 $ 1,402,132 5.78 % $ 24,558,430 $ 1,331,578 5.42 % Investment securities (2) 9,064,521 501,006 5.53 % 9,228,718 491,851 5.33 % Other interest earning assets 745,885 37,553 5.03 % 986,186 51,152 5.19 % Total interest earning assets 34,080,193 1,940,691 5.69 % 34,773,334 1,874,581 5.39 % Allowance for credit losses (224,673 ) (171,618 ) Non-interest earning assets 1,502,205 1,749,981 Total assets $ 35,357,725 $ 36,351,697 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 4,077,852 $ 152,809 3.75 % $ 2,905,968 $ 86,759 2.99 % Savings and money market deposits 11,043,510 451,352 4.09 % 10,704,470 382,432 3.57 % Time deposits 4,757,675 211,411 4.44 % 5,169,458 191,114 3.70 % Total interest bearing deposits 19,879,037 815,572 4.10 % 18,779,896 660,305 3.52 % FHLB advances 3,823,579 158,750 4.15 % 6,331,685 285,026 4.50 % Notes and other borrowings 709,422 36,528 5.15 % 752,036 38,446 5.11 % Total interest bearing liabilities 24,412,038 1,010,850 4.14 % 25,863,617 983,777 3.80 % Non-interest bearing demand deposits 7,239,161 7,091,029 Other non-interest bearing liabilities 968,163 848,023 Total liabilities 32,619,362 33,802,669 Stockholders' equity 2,738,363 2,549,028 Total liabilities and stockholders' equity $ 35,357,725 $ 36,351,697 Net interest income $ 929,841 $ 890,804 Interest rate spread 1.55 % 1.59 % Net interest margin 2.73 % 2.56 % ___________________________ (1) On a tax-equivalent basis where applicable (2) 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 Years Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Basic earnings per common share: Numerator: Net income $ 69,302 $ 61,452 $ 20,812 $ 232,467 $ 178,671 Distributed and undistributed earnings allocated to participating securities (1,598 ) (850 ) (930 ) (4,113 ) (3,565 ) Income allocated to common stockholders for basic earnings per common share $ 67,704 $ 60,602 $ 19,882 $ 228,354 $ 175,106 Denominator: Weighted average common shares outstanding 74,750,961 74,753,372 74,384,185 74,694,303 74,493,898 Less average unvested stock awards (1,075,384 ) (1,079,182 ) (1,130,715 ) (1,098,045 ) (1,168,004 ) Weighted average shares for basic earnings per common share 73,675,577 73,674,190 73,253,470 73,596,258 73,325,894 Basic earnings per common share $ 0.92 $ 0.82 $ 0.27 $ 3.10 $ 2.39 Diluted earnings per common share: Numerator: Income allocated to common stockholders for basic earnings per common share $ 67,704 $ 60,602 $ 19,882 $ 228,354 $ 175,106 Adjustment for earnings reallocated from participating securities (198 ) 6 — (402 ) (275 ) Income used in calculating diluted earnings per common share $ 67,506 $ 60,608 $ 19,882 $ 227,952 $ 174,831 Denominator: Weighted average shares for basic earnings per common share 73,675,577 73,674,190 73,253,470 73,596,258 73,325,894 Dilutive effect of certain share-based awards 616,913 817,866 203,123 382,043 197,441 Weighted average shares for diluted earnings per common share 74,292,490 74,492,056 73,456,593 73,978,301 73,523,335 Diluted earnings per common share $ 0.91 $ 0.81 $ 0.27 $ 3.08 $ 2.38 BANKUNITED, INC. AND SUBSIDIARIES SELECTED RATIOS At or for the Three Months Ended At or for the Years Ended December 31, December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 Financial ratios (4) Return on average assets 0.78 % 0.69 % 0.23 % 0.66 % 0.49 % Return on average stockholders’ equity 9.7 % 8.8 % 3.2 % 8.5 % 7.0 % Net interest margin (3) 2.84 % 2.78 % 2.60 % 2.73 % 2.56 % Loans to deposits 87.2 % 87.6 % 92.8 % 87.2 % 92.8 % Tangible book value per common share $ 36.61 $ 36.52 $ 33.62 $ 36.61 $ 33.62 December 31, 2024 September 30, 2024 December 31, 2023 Asset quality ratios Non-performing loans to total loans (1)(5) 1.03 % 0.92 % 0.52 % Non-performing assets to total assets (2)(5) 0.73 % 0.64 % 0.37 % Allowance for credit losses to total loans 0.92 % 0.94 % 0.82 % Allowance for credit losses to commercial loans (6) 1.37 % 1.41 % 1.29 % Allowance for credit losses to non-performing loans (1)(5) 89.01 % 101.68 % 159.54 % Net charge-offs to average loans(7) 0.16 % 0.12 % 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 months ended December 31, 2024, September 30, 2024 and December 31, 2023. (5) Non-performing loans and assets include the guaranteed portion of non-accrual SBA loans totaling $34.3 million or 0.14% of total loans and 0.10% of total assets at December 31, 2024, $35.1 million or 0.14% of total loans and 0.10% of total assets at September 30, 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. (7) Annualized for the nine months ended September 30, 2024; ratios for December 31, 2024 and 2023 are annual net charge-off rates. December 31, 2024 September 30, 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 8.5 % 9.7 % 8.3 % 9.6 % 7.9 % 9.1 % 5.0 % Common Equity Tier 1 ("CET1") risk-based capital 12.0 % 13.7 % 11.8 % 13.6 % 11.4 % 13.1 % 6.5 % Total risk-based capital 14.1 % 14.6 % 13.9 % 14.6 % 13.4 % 13.9 % 10.0 % Tangible Common Equity/Tangible Assets 7.8 % N/A 7.6 % 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): December 31, 2024 September 30, 2024 December 31, 2023 Total stockholders’ equity $ 2,814,318 $ 2,807,804 $ 2,577,921 Less: goodwill and other intangible assets 77,637 77,637 77,637 Tangible stockholders’ equity $ 2,736,681 $ 2,730,167 $ 2,500,284 Common shares issued and outstanding 74,748,370 74,749,012 74,372,505 Book value per common share $ 37.65 $ 37.56 $ 34.66 Tangible book value per common share $ 36.61 $ 36.52 $ 33.62

BankUnited, Inc. Reports 2024 Results

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