MIAMI LAKES, Fla. - BankUnited, Inc. (NYSE:BKU) reported a positive start to the year with first-quarter earnings surpassing analyst expectations.
The company announced a net income of $48.0 million, or $0.64 per diluted share, for the quarter ended March 31, 2024. This result exceeded the analyst estimate of $0.59 per share. Revenue also topped forecasts, coming in at $241.8 million against the consensus estimate of $239.95 million.
Chairman, President, and CEO Rajinder Singh highlighted the quarter's achievements, stating, "This quarter was a good start to 2024, with continued improvement in the funding mix, a stable margin, and strong credit performance."
The bank's performance this quarter reflects an increase from the $20.8 million, or $0.27 per diluted share, reported in the previous quarter ended December 31, 2023. However, it is a slight decrease from the $52.9 million, or $0.70 per diluted share, earned in the first quarter of the previous year.
BankUnited's funding mix showed significant improvement, with non-interest bearing demand deposits growing by $404 million. Non-brokered deposits increased by $644 million, and total deposits rose by $489 million. Compared to the same quarter last year, total deposits grew by $1.3 billion. The bank also reduced its wholesale funding, including FHLB advances and brokered deposits, by $1.4 billion over the quarter.
Despite the positive outcomes, total loans declined by $407 million for the quarter, attributed to expected seasonality, unexpected paydowns, and strategic decisions to exit certain non-relationship shared national credits. The bank's net interest margin remained stable at 2.57%, slightly down from 2.60% in the preceding quarter.
Credit performance was strong, with an annualized net charge-off ratio of just 0.02% for the quarter. The non-performing assets (NPA) ratio declined to 0.34%, and the bank maintained ample liquidity with total same-day available liquidity standing at $14.8 billion.
The bank's capital position is robust, with a CET1 ratio of 11.6% at a consolidated level. The ratio of tangible common equity to tangible assets increased to 7.3% at the end of the quarter.
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