BankUnited Inc (BKU) Q3 2024 Earnings Call Highlights: Strong Net Income and Improved Liquidity ...

GuruFocus.com10-23

Net Income: $61.5 million or $0.81 per share. Net Interest Margin (NIM): Increased to 2.78% from 2.72% last quarter. Cost of Deposits: Declined to 3.06% from 3.09% last quarter. Loan-to-Deposit Ratio:...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBankUnited Inc (BKU) Q3 2024 Earnings Call Highlights: Strong Net Income and Improved Liquidity ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-23 15:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/bankunited-inc-bku-q3-2024-070420977.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Income: $61.5 million or $0.81 per share.\nNet Interest Margin (NIM): Increased to 2.78% from 2.72% last quarter.\nCost of Deposits: Declined to 3.06% from 3.09% last quarter.\nLoan-to-Deposit Ratio:...</p>\n\n<a href=\"https://finance.yahoo.com/news/bankunited-inc-bku-q3-2024-070420977.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BKU","symbol_name":"BankUnited","start_time":0,"source_url":"https://finance.yahoo.com/news/bankunited-inc-bku-q3-2024-070420977.html","article_id":"2477373265","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/SfJkOVwqDX86urrS63bl2w--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/80c937c42c6adae6cea99e8515177412"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477373265","pubTimestamp":1729667060,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Income: $61.5 million or $0.81 per share.Net Interest Margin : Increased to 2.78% from 2.72% last quarter.Cost of Deposits: Declined to 3.06% from 3.09% last quarter.Credit Charge Offs: $6.5 million for the quarter.Allowance for Credit Losses : Increased to 94 basis points from 92 basis points.Non-Performing Assets : 54 basis points excluding SBA loans.CRE Portfolio: 25% of total loans with a weighted average LTV of 55%.Office Loan Portfolio: $1.8 billion with a weighted average LTV of 65%.Provision for Credit Losses: $9 million for the quarter.Non-Interest Expense: Increased mainly due to share-based compensation.GuruFocus has detected 6 Warning Sign with BKU.For the complete transcript of the earnings call, please refer to the full earnings call transcript.BankUnited Inc  reported a net income of $61.5 million or $0.81 per share, exceeding consensus estimates of $0.74.The company's net interest margin increased to 2.78% from 2.72% in the previous quarter, marking a 9% increase ye","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BKU":"BankUnited"},"translate_title":"BankUnited Inc(BKU)2024年第三季度收益看涨期权亮点：强劲的净利润和改善的流动性……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BKU":1},"content_text":"Net Income: $61.5 million or $0.81 per share.\nNet Interest Margin (NIM): Increased to 2.78% from 2.72% last quarter.\nCost of Deposits: Declined to 3.06% from 3.09% last quarter.\nLoan-to-Deposit Ratio: Decreased to 87.6%.\nCredit Charge Offs: $6.5 million for the quarter.\nAllowance for Credit Losses (ACL): Increased to 94 basis points from 92 basis points.\nNon-Performing Assets (NPA): 54 basis points excluding SBA loans.\nCapital Ratio (TCETTA): Increased to 7.6%.\nTangible Book Value: Increased to $36.52.\nCRE Portfolio: 25% of total loans with a weighted average LTV of 55%.\nOffice Loan Portfolio: $1.8 billion with a weighted average LTV of 65%.\nProvision for Credit Losses: $9 million for the quarter.\nNon-Interest Expense: Increased mainly due to share-based compensation.\n\n\nWarning! GuruFocus has detected 6 Warning Sign with BKU.\n\nRelease Date: October 22, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nBankUnited Inc (NYSE:BKU) reported a net income of $61.5 million or $0.81 per share, exceeding consensus estimates of $0.74.\nThe company's net interest margin increased to 2.78% from 2.72% in the previous quarter, marking a 9% increase year-over-year.\nCost of deposits declined slightly, indicating proactive management in response to changes in the interest rate environment.\nLoan-to-deposit ratio decreased to 87.6%, reflecting a strong liquidity position.\nThe company reported very low credit charge-offs of $6.5 million for the quarter, indicating strong credit quality management.\n\n Negative Points \n\nNon-interest bearing deposits (NIDDA) were down $430 million at the period end, influenced by seasonality and strategic deposit actions.\nThe company experienced a decline in total loans by $230 million, particularly in residential and franchise leasing sectors.\nNon-performing assets (NPAs) increased slightly, with notable loans moving into non-performing status in the C&I book.\nThe company's guidance indicates that the net interest margin is expected to be flat in the fourth quarter, reflecting challenges in maintaining growth.\nThere is a potential for increased expenses in the fourth quarter due to $8 million in railcar retrofit costs.\n\n Q & A Highlights \nQ: Can you clarify the guidance on margin and non-interest bearing deposits for the next quarter? Is the railcar expense one-time? A: The margin is expected to be roughly flat next quarter. Non-interest bearing deposits might be softer due to seasonality. The railcar expense is periodic, not strictly one-time. - Leslie Lunak, CFO\nQ: How do you foresee the seasonality of non-interest bearing deposits affecting 2025? A: The title business has significant seasonal swings, peaking in the summer. We expect the first and second quarters to be strong for non-interest bearing deposit growth, similar to this year. - Rajinder Singh, CEO\nQ: With capital levels rising, what are your thoughts on capital deployment, particularly regarding buybacks? A: We are actively discussing capital deployment. While capital is building, we prefer to deploy it for growth. If growth opportunities are limited, we may consider buybacks next year. - Rajinder Singh, CEO\nQ: Regarding the CRE portfolio, there was a pickup in past due loans. Is there anything significant to note? A: The past due increase is primarily due to a loan that has been in non-accrual for some time and finally went past due. - Leslie Lunak, CFO\nQ: How do you view the potential for upgrades in commercial lines with the current economic conditions? A: We see good upgrade potential in the CRE portfolio, especially as rent abatements expire. In the C&I portfolio, upgrades are harder to predict due to varied industry segments. - Thomas Cornish, COO\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477373265"}