MIAMI LAKES, FL – BankUnited, Inc. (NYSE:) reported a positive start to the year, with first-quarter earnings beating analysts’ expectations.
The company reported net income of $48.0 million, or $0.64 per diluted share, for the quarter ended March 31, 2024. This result exceeded analysts’ estimates of $0.59 per share. Revenue also beat estimates at $241.8 million versus the consensus estimate of $239.95 million.
Chairman, President and CEO Rajinder Singh highlighted the quarter’s achievements, saying, “The quarter was a strong start to 2024 with continued improvement in the funding mix, stable margins and strong credit metrics.”
The bank’s results for the quarter reflect an increase from the $20.8 million, or $0.27 per diluted share, reported in the prior quarter ended December 31, 2023. However, this is a slight decrease from the $52.9 million, or $0.70 per diluted share, earned in the prior quarter. first quarter of the previous year.
BankUnited’s funding mix showed significant improvement, with non-interest-bearing demand deposits up $404 million. Non-brokered deposits increased by $644 million and total deposits increased by $489 million. Compared to the same quarter last year, total deposits increased by $1.3 billion. The bank also reduced its wholesale funding, including FHLB advances and brokerage deposits, by $1.4 billion during the quarter.
Despite the positive results, total loans for the quarter decreased by $407 million, reflecting expected seasonality, unexpected payouts and strategic decisions to exit certain unrelated general domestic loans. The bank’s net interest margin remained stable at 2.57%, down slightly from 2.60% in the previous quarter.
Credit performance was strong, with an annual net charge-off rate of just 0.02% for the quarter. The non-performing asset (NPA) ratio dropped to 0.34% and the bank maintained ample liquidity with total available liquidity at $14.8 billion on the same day.
The bank’s capital position is stable: the CET1 ratio is 11.6% at the consolidated level. The ratio of fixed capital to tangible assets increased to 7.3% at the end of the quarter.
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