BankUnited, Inc. Files 10-Q for Period Ending March 31, 2024

Ticker: BKU · Form: 10-Q · Filed: Apr 25, 2024 · CIK: 1504008

Sentiment: neutral

Topics: BankUnited, 10-Q, Financial Report, Quarterly Earnings, SEC Filing

TL;DR

<b>BankUnited, Inc. has filed its Q1 2024 10-Q report detailing financial activities for the period ending March 31, 2024.</b>

AI Summary

BankUnited, Inc. (BKU) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. BankUnited, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31. BankUnited, Inc. is incorporated in Delaware. The company's principal business address is in Miami Lakes, Florida.

Why It Matters

For investors and stakeholders tracking BankUnited, Inc., this filing contains several important signals. This 10-Q filing provides crucial insights into BankUnited's financial performance and position during the first quarter of 2024, enabling investors to assess trends and make informed decisions. Understanding the details within this report is essential for stakeholders to evaluate the company's operational health, asset management, and overall financial stability in the current economic climate.

Risk Assessment

Risk Level: — BankUnited, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical disclosures, indicating a low level of immediate risk.

Analyst Insight

Monitor future filings for trends in loan performance, interest income/expense, and deposit growth to assess BankUnited's ongoing financial health.

Key Numbers

Key Players & Entities

FAQ

When did BankUnited, Inc. file this 10-Q?

BankUnited, Inc. filed this Quarterly Report (10-Q) with the SEC on April 25, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by BankUnited, Inc. (BKU).

Where can I read the original 10-Q filing from BankUnited, Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by BankUnited, Inc..

What are the key takeaways from BankUnited, Inc.'s 10-Q?

BankUnited, Inc. filed this 10-Q on April 25, 2024. Key takeaways: BankUnited, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024.. The filing covers the period from January 1, 2024, to March 31, 2024.. The company's fiscal year ends on December 31..

Is BankUnited, Inc. a risky investment based on this filing?

Based on this 10-Q, BankUnited, Inc. presents a moderate-risk profile. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical disclosures, indicating a low level of immediate risk.

What should investors do after reading BankUnited, Inc.'s 10-Q?

Monitor future filings for trends in loan performance, interest income/expense, and deposit growth to assess BankUnited's ongoing financial health. The overall sentiment from this filing is neutral.

How does BankUnited, Inc. compare to its industry peers?

BankUnited, Inc. operates as a federally chartered savings institution, providing a range of banking and financial services.

Are there regulatory concerns for BankUnited, Inc.?

As a financial institution, BankUnited is subject to regulations from various federal and state agencies, including the SEC, Federal Reserve, and state banking authorities.

Industry Context

BankUnited, Inc. operates as a federally chartered savings institution, providing a range of banking and financial services.

Regulatory Implications

As a financial institution, BankUnited is subject to regulations from various federal and state agencies, including the SEC, Federal Reserve, and state banking authorities.

What Investors Should Do

  1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
  2. Compare key financial metrics from this filing against previous periods and industry benchmarks.
  3. Analyze any disclosed risk factors or legal proceedings that may impact the company's future performance.

Key Dates

Year-Over-Year Comparison

This filing represents the first quarterly report for BankUnited, Inc. in the fiscal year 2024, providing updated financial information compared to the previous year's filings.

Filing Stats: 4,443 words · 18 min read · ~15 pages · Grade level 17.8 · Accepted 2024-04-25 16:32:04

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Cash Flows 4 Consolidated Statements of Stockholders' Equity 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 64

Controls and Procedures

ITEM 4. Controls and Procedures 64

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 64

Risk Factors

ITEM 1A. Risk Factors 64

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 64 ITEM 5. Other Information 64

Exhibits

ITEM 6. Exhibits 65

SIGNATURES

SIGNATURES 66 i GLOSSARY OF DEFINED TERMS The following acronyms and terms may be used throughout this Form 10-Q, including the consolidated financial statements and related notes. ACL Allowance for credit losses AFS Available for sale ALCO Asset Liability Committee ALM Asset Liability Management AOCI Accumulated other comprehensive income ARM Adjustable rate mortgage ASU Accounting Standards Update BKU BankUnited, Inc. BOLI Bank Owned Life Insurance BankUnited BankUnited, National Association The Bank BankUnited, National Association Bridge Bridge Funding Group, Inc. Buyout loans FHA and VA insured mortgages from third party servicers who have exercised their right to purchase these loans out of GNMA securitizations CD Certificate of Deposit CECL Current expected credit losses CET1 Common Equity Tier 1 capital C&I Commercial and Industrial loans, including owner-occupied commercial real estate CIO Chief Information Officer CLO Collateralized loan obligations CMBS Commercial mortgage-backed securities CME Chicago Mercantile Exchange CMOs Collateralized mortgage obligations CRE Commercial real estate loans, including non-owner occupied commercial real estate and construction and land DSCR Debt Service Coverage Ratio ESG Environmental, social and governance EVE Economic value of equity FDIA Federal Deposit Insurance Act FDIC Federal Deposit Insurance Corporation FHA Federal Housing Administration FHFA Federal Housing Finance Agency FHLB Federal Home Loan Bank FICO Fair Isaac Corporation (credit score) FinTech Financial Technology FRB Federal Reserve Bank GAAP U.S. generally accepted accounting principles GDP Gross Domestic Product GNMA Government National Mortgage Association HPI Home price indices HTM Held to maturity ISDA International Swaps and Derivatives Association LGD Loss Given Default LIHTC Low Income Housing Tax Credits LTV Loan-to-value ii MAT Materiality Assessment Team MBS M

Financial Statements and Supplementary Data

Item 1. Financial Statements and Supplementary Data BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands, except share and per share data) March 31, 2024 December 31, 2023 ASSETS Cash and due from banks: Non-interest bearing $ 13,773 $ 14,945 Interest bearing 407,443 573,338 Cash and cash equivalents 421,216 588,283 Investment securities (including securities reported at fair value of $ 8,914,959 and $ 8,867,354 ) 8,924,959 8,877,354 Non-marketable equity securities 252,609 310,084 Loans 24,226,300 24,633,684 Allowance for credit losses ( 217,556 ) ( 202,689 ) Loans, net 24,008,744 24,430,995 Bank owned life insurance 295,970 318,459 Operating lease equipment, net 329,025 371,909 Goodwill 77,637 77,637 Other assets 795,494 786,886 Total assets $ 35,105,654 $ 35,761,607 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Demand deposits: Non-interest bearing $ 7,239,604 $ 6,835,236 Interest bearing 3,549,141 3,403,539 Savings and money market 11,122,916 11,135,708 Time 5,115,703 5,163,995 Total deposits 27,027,364 26,538,478 FHLB advances 3,905,000 5,115,000 Notes and other borrowings 708,978 708,973 Other liabilities 823,920 821,235 Total liabilities 32,465,262 33,183,686 Commitments and contingencies Stockholders' equity: Common stock, par value $ 0.01 per share, 400,000,000 shares authorized; 74,772,706 and 74,372,505 shares issued and outstanding 748 744 Paid-in capital 286,169 283,642 Retained earnings 2,677,403 2,650,956 Accumulated other comprehensive loss ( 323,928 ) ( 357,421 ) Total stockholders' equity 2,640,392 2,577,921 Total liabilities and stockholders' equity $ 35,105,654 $ 35,761,607 1 The accompanying notes are an integral part of these consolidated financial statements BANKUNITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) Three Months Ended March 31, 2024 2023 Interest income: Loans $ 347,257

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED March 31, 2024 Note 1 Basis of Presentation and Summary of Significant Accounting Policies BankUnited, Inc. is a national bank holding company with one wholly-owned subsidiary, BankUnited, collectively, the Company. BankUnited, a national banking association headquartered in Miami Lakes, Florida, provides a full range of banking services to individual and corporate customers through banking centers in Florida, the New York metropolitan area and Dallas, Texas. The Bank also offers certain commercial lending and deposit products through national platforms and regional wholesale banking offices. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, these financial statements do not include all of the information and footnotes required for a fair presentation of financial position, results of operations and cash flows in conformity with GAAP and should be read in conjunction with the Company's consolidated financial statements and the notes thereto appearing in BKU's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected in future periods. The Company has a single operating segment and thus a single reportable segment. While management monitors the revenue streams of its various business units, the business units serve a similar base of primarily commercial clients, providing a similar range of products and services, managed through similar processes and platforms. The Company's chief operating

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED March 31, 2024 ASU No. 2023-09— Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU requires entities to provide additional disclosures, primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions among others. This ASU is effective for the Company for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. The adoption of this ASU will have no impact on the Company's consolidated financial position, results of operations, and cash flows. Adoption will lead to additional and revised disclosures in the Company's financial statements. Note 2 Earnings Per Common Share The computation of basic and diluted earnings per common share is presented below for the periods indicated (in thousands, except share and per share data): Three Months Ended March 31, c 2024 2023 Basic earnings per common share: Numerator: Net income $ 47,980 $ 52,882 Distributed and undistributed earnings allocated to participating securities ( 680 ) ( 798 ) Income allocated to common stockholders for basic earnings per common share $ 47,300 $ 52,084 Denominator: Weighted average common shares outstanding 74,509,107 74,755,002 Less average unvested stock awards ( 1,127,838 ) ( 1,193,881 ) Weighted average shares for basic earnings per common share 73,381,269 73,561,121 Basic earnings per common share $ 0.64 $ 0.71 Diluted earnings per common share: Numerator: Income allocated to common stockholders for basic earnings per common share $ 47,300 $ 52,084 Adjustment for earnings reallocated from participating securities 1 3 Income used in calculating diluted earnings per common share $ 47,301 $ 52,087 Denominator: Weighted average shares for basic earnings per common share 73,381,269 73,561,121 Dilutive effect o

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED March 31, 2024 Note 3 Investment Securities Investment securities include investment securities available for sale, marketable equity securities, and investment securities held to maturity. The investment securities portfolio consisted of the following at the dates indicated (in thousands): March 31, 2024 Amortized Cost Gross Unrealized Carrying Value (1) Gains Losses Investment securities available for sale: U.S. Treasury securities $ 139,868 $ 176 $ ( 9,754 ) $ 130,290 U.S. Government agency and sponsored enterprise residential MBS 2,193,543 2,549 ( 34,800 ) 2,161,292 U.S. Government agency and sponsored enterprise commercial MBS 559,069 116 ( 64,978 ) 494,207 Private label residential MBS and CMOs 2,543,764 361 ( 293,906 ) 2,250,219 Private label commercial MBS 2,191,733 1,029 ( 70,491 ) 2,122,271 Single family real estate-backed securities 356,205 — ( 14,843 ) 341,362 Collateralized loan obligations 1,077,232 1,653 ( 2,393 ) 1,076,492 Non-mortgage asset-backed securities 103,594 164 ( 3,634 ) 100,124 SBA securities 101,515 41 ( 3,091 ) 98,465 9,379,803 $ 6,404 $ ( 504,772 ) 8,881,435 Investment securities held to maturity 10,000 10,000 $ 9,389,803 8,891,435 Marketable equity securities 33,524 $ 8,924,959 9 Table of Contents BANKUNITED, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED March 31, 2024 December 31, 2023 Amortized Cost Gross Unrealized Carrying Value (1) Gains Losses Investment securities available for sale: U.S. Treasury securities $ 139,858 $ 532 $ ( 9,798 ) $ 130,592 U.S. Government agency and sponsored enterprise residential MBS 1,962,658 1,810 ( 40,261 ) 1,924,207 U.S. Government agency and sponsored enterprise commercial MBS 561,557 107 ( 63,805 ) 497,859 Private label residential MBS and CMOs 2,596,231 268 ( 300,769 ) 2,295,730 Private label commercial MBS 2,282,833 678 ( 84,768 ) 2,198,743 Single family real estate-backed securities 383,984 — ( 17,729 ) 366,255 Collateralized loan obligations 1,122,799 735 ( 10,710 ) 1,112,824 Non-mortgage asset-backed securities 106,095 156 ( 3,471 ) 102,780 SBA securities 106,237 41 ( 3,254 ) 103,024 9,369,428 $ 5,042 $ ( 539,838 ) 8,834,632 Investment securities held to maturity 10,000 10,000 $ 9,379,428 8,844,632 Marketable equity securities 32,722 $ 8,877,354 (1) At fair value except for securities held to maturity. Investment securities held to maturity at March 31, 2024 and December 31, 2023, consisted of one State of Israel bond maturing in October 2024. Accrued interest receivable on investments totaled $ 38 million and $ 37 million at March 31, 2024 and December 31, 2023, respectively, and is included in other assets in the accompanying consolidated balance sheets. At March 31, 2024, contractual maturities of investment securities available for sale, adjusted for anticipated prepayments when applicable, were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 964,667 $ 933,002 Due after one year through five years 5,211,147 5,061,309 Due after five years through ten years 1,952,118 1,774,119 Due after ten years 1,251,871 1,113,005 $ 9,379,803 $ 8,881,435 The carrying value of securities pledged as coll

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED March 31, 2024 The following table provides information about gains (losses) on investment securities for the periods indicated (in thousands): Three Months Ended March 31, 2024 2023 Gross realized gains on investment securities AFS $ 27 $ 772 Gross realized losses on investment securities AFS ( 55 ) ( 20 ) Net realized gain (loss) ( 28 ) 752 Net gain (loss) on marketable equity securities recognized in earnings 803 ( 13,301 ) Gain (loss) on investment securities, net $ 775 $ ( 12,549 ) The following tables present the aggregate fair value and the aggregate amount by which amortized cost exceeded fair value for investment securities available for sale in unrealized loss positions aggregated by investment category and length of time that individual securities had been in continuous unrealized loss positions at the dates indicated (in thousands): March 31, 2024 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ 9,921 $ ( 54 ) $ 99,859 $ ( 9,700 ) $ 109,780 $ ( 9,754 ) U.S. Government agency and sponsored enterprise residential MBS 149,058 ( 370 ) 1,515,872 ( 34,430 ) 1,664,930 ( 34,800 ) U.S. Government agency and sponsored enterprise commercial MBS 15,969 ( 84 ) 465,373 ( 64,894 ) 481,342 ( 64,978 ) Private label residential MBS and CMOs 6,393 ( 26 ) 2,219,341 ( 293,880 ) 2,225,734 ( 293,906 ) Private label commercial MBS 15,825 ( 42 ) 1,985,746 ( 70,449 ) 2,001,571 ( 70,491 ) Single family real estate-backed securities — — 341,362 ( 14,843 ) 341,362 ( 14,843 ) Collateralized loan obligations — — 679,257 ( 2,393 ) 679,257 ( 2,393 ) Non-mortgage asset-backed securities — — 77,192 ( 3,634 ) 77,192 ( 3,634 ) SBA securities 7,777 ( 35 ) 85,680 ( 3,056 ) 93,457 ( 3,091 ) $ 211,252 $ ( 676 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED March 31, 2024 December 31, 2023 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ 9,941 $ ( 27 ) $ 99,769 $ ( 9,771 ) $ 109,710 $ ( 9,798 ) U.S. Government agency and sponsored enterprise residential MBS 82,382 ( 430 ) 1,646,081 ( 39,831 ) 1,728,463 ( 40,261 ) U.S. Government agency and sponsored enterprise commercial MBS 3,332 ( 6 ) 481,651 ( 63,799 ) 484,983 ( 63,805 ) Private label residential MBS and CMOs — — 2,255,461 ( 300,769 ) 2,255,461 ( 300,769 ) Private label commercial MBS 51,434 ( 323 ) 2,054,378 ( 84,445 ) 2,105,812 ( 84,768 ) Single family real estate-backed securities — — 366,255 ( 17,729 ) 366,255 ( 17,729 ) Collateralized loan obligations 184,652 ( 348 ) 880,609 ( 10,362 ) 1,065,261 ( 10,710 ) Non-mortgage asset-backed securities — — 79,697 ( 3,471 ) 79,697 ( 3,471 ) SBA securities 8,194 ( 46 ) 89,763 ( 3,208 ) 97,957 ( 3,254 ) $ 364,700 $ ( 2,229 ) $ 7,986,044 $ ( 537,609 ) $ 8,350,744 $ ( 539,838 ) The Company monitors its investment securities available for sale for credit loss impairment on an individual security basis. No securities were determined to be credit loss impaired during the three months ended March 31, 2024 and 2023. At March 31, 2024, the Company did not have an intent to sell securities that were in significant unrealized loss positions, and it was not more likely than not that the Company would be required to sell these securities before recovery of the amortized cost basis, which may be at maturity. In making this determination, the Company considered its current and projected liquidity position including its ability to pledge securities to generate liquidity, its investment policy as to permissible holdings and concentration limits, regulatory requirements

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