BankUnited's Q4 2024 Earnings Call: Record Profits and Strategic Shifts in Deposit Management

Strong Financial Performance:
- BankUnited reported a net income of $69.3 million or $0.91 per share for Q4, exceeding the consensus estimate of $0.73 per share.
- The EPS grew from $0.62 in Q4 '23 to $0.91 in Q4 '24, with a significant margin improvement from 2.57% to 2.84%.
- This growth was driven by a strong performance in deposit cost reduction and better-than-expected margin performance.

Deposit Growth and Cost Reduction:
- The average cost of interest-bearing deposits declined by 45 basis points to 3.75%, and the cost of total deposits declined by 34 basis points to 2.72%.
- Average NIDDA grew by $173 million despite seasonal headwinds in certain businesses.
- The decline in deposit costs was attributed to successful deposit cost management and better-than-expected deposit growth.

Loan and Portfolio Management:
- Total loans were down $101 million, primarily due to declines in residential and non-core portfolios.
- Core CRE and C&I segments grew by $185 million, contributing to a 1.2% growth on an annualized basis.
- The loan portfolio was managed to focus on core segments, with residential and non-core loans declining to optimize the balance sheet.