Earnings Overview#
BankUnited, Inc. (NYSE:BKU) recently announced its first quarter earnings, revealing diluted earnings per share of $0.83. This figure was below the analyst consensus estimate of $0.95. The company's net income for the quarter was $61.9 million, a decrease from $69.3 million in the previous quarter but an increase from $58.5 million in the same quarter last year.
Revenue and Interest Income#
The bank's net interest income, which is the difference between the interest earned on loans and the interest paid on deposits, fell to $249.0 million from $258.2 million in the fourth quarter. However, this represents a 7% increase compared to $233.1 million in the first quarter of the previous year. The net interest margin, a measure of profitability, decreased by 7 basis points to 2.99% from the prior quarter but improved by 18 basis points year-over-year from 2.81%.
Credit Losses and Loan Performance#
The provision for credit losses, which is money set aside to cover potential loan defaults, was $24.6 million for the quarter, slightly down from $25.6 million in the previous quarter. Net charge-offs, or loans that are unlikely to be repaid, rose to an annualized 0.61% of average loans, up from 0.30% in the fourth quarter. This increase was mainly due to two loans from different sectors. On a positive note, non-performing loans, which are loans that are not being repaid, decreased by 26% to 1.14% of total loans.
Deposits and Shareholder Returns#
Total deposits reached $29.4 billion, marking an increase of $1.4 billion from a year ago, excluding brokered deposits. Notably, non-interest bearing demand deposit accounts made up 30% of total deposits at the end of the quarter. Additionally, the company repurchased about 1.3 million shares for $60.0 million at an average price of $46.15 per share. The board also raised the quarterly dividend by $0.02 to $0.33 per share, reflecting a 6% increase.