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CLOSED · 09:35 ET
Market ClerkRecap
Sat Oct 24 · markets closed1 signal today94 insider buys this week · $48.3MCIRO short report next: Oct 31The week ahead

BKU

BankUnited, Inc.
NYSE · FINANCIALS · SAVINGS INSTITUTION, FEDERALLY CHARTERED
43.57
−0.19 −0.43%
USD · close Oct 23
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WATCH · shorts 42
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no disclosures naming it
Big money
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nobody we score has called it yet
MKT CAP $3.1BP/E 11.9DIV YIELD 2.94%FCF YIELD —REV TTM —NET INCOME $273.6M +6.1%NET CASH $71M52W 37.90 – 50.93SEC XBRL · TTM TO Invalid Date

How BKU rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
38%
of sentences unchanged
Added
451
new sentences
Dropped
492
sentences removed
Length
−1,965
words, now 44,004

New in FY2025

  • Item 1A - Risk Factors" for additional discussion of risks to the execution of our strategic priorities.
  • Overview 2025 Performance Highlights In evaluating our financial performance, we consider (i) the funding mix and the composition of interest earning assets; (ii) the level of and trends in net interest income and the net interest margin; (iii) the cost of deposits, trends in non-interest income and non-interest expense; (iv) performance ratios such as the return on average equity and return on average assets and trends in those metrics; and (v) asset quality metrics, including the level of criticized and classified assets, the ratios of non-performing loans to total loans and non-performing assets to total assets, delinquency and net charge-off rates, as well as trends in those metrics.
  • Highlights include: • Net income for the year ended December 31, 2025 was $268.4 million, or $3.53 per diluted share, compared to $232.5 million, or $3.08 per diluted share for the year ended December 31, 2024, an increase of 15%.
  • PPNR increased by 16%, to $429.7 million for the year ended December 31, 2025, from $371.4 million for the year ended December 31, 2024. • ROAA improved to 0.77% for the year ended December 31, 2025, from 0.66% for the year ended December 31, 2024; ROAE improved to 9.0% from 8.5%. • The net interest margin, calculated on a tax-equivalent basis, expanded by 0.22%, to 2.95% for the year ended December 31, 2025 from 2.73% for the year ended December 31, 2024.
  • The increase in the net interest margin was primarily a result of balance sheet repositioning, particularly improved funding mix, and re-pricing of deposit costs in line with a lower interest rate environment.
  • Net interest income grew by $73.3 million, or 8%, for the year ended December 31, 2025.
  • The following chart provides a comparison of net interest margin, the average yield on interest earning assets, and the average rate on interest bearing liabilities for the years ended December 31, 2025 and 2024 (on a tax equivalent basis): • The average cost of total deposits declined by 0.61% to 2.40% for the year ended December 31, 2025, from 3.01% for the year ended December 31, 2024.
  • The spot APY of total deposits declined to 2.10% at December 31, 2025 from 2.63% at December 31, 2024. • The following charts illustrate the composition of deposits at the dates indicated: December 31, 2025 December 31, 2024 • NIDDA grew by 20%, or $1.5 billion during the year ended December 31, 2025, and represented 31% of total deposits at December 31, 2025.
  • Total deposits grew by $1.5 billion and non-brokered deposits grew by $1.8 billion.
  • Average NIDDA increased by $844 million for the year ended December 31, 2025. • Wholesale funding, including FHLB advances and brokered deposits, declined by $1.7 billion for the year ended December 31, 2025. • Loan portfolio composition continued to shift from residential to core commercial categories during the year ended December 31, 2025.
  • Residential, franchise, equipment and municipal finance portfolios declined by a combined $810 million while the core loans grew by $786 million for the year ended December 31, 2025, reflective of our balance sheet repositioning strategy. • The loan to deposit ratio declined to 82.7% at December 31, 2025, from 87.2% at December 31, 2024. • Total criticized and classified loans declined by $185 million while non-performing loans increased by $122 million for the year ended December 31, 2025.
  • The net charge-off ratio for the year ended December 31, 2025, was 0.30%.
  • The NPA ratio at December 31, 2025 was 1.08%, including 0.11% related to the guaranteed portion of non-performing SBA loans. • The ratio of the ACL to total loans declined to 0.91% at December 31, 2025, from 0.92% at December 31, 2024.
  • The ratio of the ACL to non-performing loans was 58.99%.
  • The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.30% at December 31, 2025 and the ACL to loans ratio for CRE office loans was 2.03%.
  • The provision for credit losses was $67.9 million for the year ended December 31, 2025, compared to $55.1 million for the year ended December 31, 2024. • At December 31, 2025, CET1 was 12.3% up 0.30% from December 31, 2024.
  • AOCI improved by $94.9 million from December 31, 2024.
  • The ratio of tangible common equity to tangible assets increased to 8.5%.
  • The charts below represent the Company's and the Bank's regulatory capital ratios at the dates indicated: BankUnited, Inc.
  • December 31, 2025 December 31, 2024 BankUnited, N.A.
  • December 31, 2025 December 31, 2024 • Book value and tangible book value per common share continued to accrete, to $41.19 and $40.14, respectively, at December 31, 2025, compared to $37.65 and $36.61, respectively, at December 31, 2024.
  • This represents a 10% year-over-year increase in tangible book value per share. • During the year ended December 31, 2025, the Company repurchased approximately 1.1 million shares of its common stock for an aggregate purchase price of $44.8 million.
  • In January 2026, the Company's Board of Directors authorized the repurchase of up to an additional $200 million in shares of its outstanding common stock. • In the first quarter of 2025, the Company increased its quarterly dividends by $0.02, to $0.31 per share, reflecting a 7% increase from the previous quarterly cash dividend of $0.29 per share and maintained that quarterly level through 2025.
  • In January 2026, the Company's Board of Directors announced an increase of $0.02 in the Company's common stock dividend for future quarterly dividends to $0.33 per common share, an increase of 6%. • In August 2025, the Company redeemed all of its outstanding senior notes due November 2025 at par value plus accrued interest.
  • ACL The ACL represents management's estimate of current expected credit losses, or the amount of amortized cost basis not expected to be collected, on our loan portfolio.
  • Estimates that are particularly susceptible to change that may have a material impact on the amount of the ACL include: • our evaluation of current conditions; • our determination of a reasonable and supportable economic forecast or weighting of various forecast paths and selection of the reasonable and supportable forecast period; • our evaluation of historical loss experience and selection of historical loss data used in formulating our ACL estimate; since we have limited company specific historical loss data, our modeling techniques also leverage broad external data sets for this purpose; • our evaluation of changes in composition and characteristics of the loan portfolio, including internal risk ratings; • our estimate of expected prepayments; • the value of underlying collateral, which may impact loss severity and certain cash flow assumptions for collateral-dependent, criticized and classified loans; in the current environment, especially with respect to certain commercial real estate sectors like office, current and projected collateral values may be particularly challenging to estimate; and • our selection and evaluation of qualitative factors.
  • The ACL estimates incorporate a probability‑weighted blend of macroeconomic scenarios, with weights determined by an evaluation of each scenario’s key assumptions and narrative, the projected paths of principal economic variables, such as real GDP growth and the unemployment rate, and other relevant market indicators and consensus forecasts.
  • Scenarios include (i) a baseline forecast; (ii) an upside scenario reflecting above-baseline levels of output and lower unemployment rate; and (iii) a downside scenario reflecting softer business investment, depressed consumer sentiment, and generally weaker economic activity.
  • To illustrate directional sensitivity to the choice of scenario, excluding the impact of qualitative factors, the impact of using only the upside scenario would result in an estimated $21 million decrease in the ACL, while using only the downside scenario would result in an estimated increase of $111 million in the ACL.
  • The sensitivity analysis result does not represent management’s view of expected credit losses nor is it intended to estimate future changes in ACL levels.
  • Interest income, yields, spread and margin have been calculated on a tax-equivalent basis for loans and investment securities that are exempt from federal income taxes, at a federal tax rate of 21% (dollars in thousands): Years Ended December 31, 2025 2024 2023 Average Balance Interest (1) Yield/ Rate (1) Average Balance Interest (1) Yield/ Rate (1) Average Balance Interest (1) Yield/ Rate (1) Loans $ 23,765,232 $ 1,302,438 5.48 % $ 24,269,787 $ 1,402,132 5.78% $ 24,558,430 $ 1,331,578 5.42% Investment securities (2) 9,362,652 472,331 5.04 % 9,064,521 501,006 5.53% 9,228,718 491,851 5.33% Other interest earning assets 783,417 31,878 4.07 % 745,885 37,553 5.03% 986,186 51,152 5.19% Total interest earning assets 33,911,301 1,806,647 5.33 % 34,080,193 1,940,691 5.69% 34,773,334 1,874,581 5.39% Allowance for credit losses (226,362) (224,673) (171,618) Non-interest earning assets 1,380,186 1,502,205 1,749,981 Total assets $ 35,065,125 $ 35,357,725 $ 36,351,697 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 5,473,316 $ 180,918 3.31 % $ 4,077,852 $ 152,809 3.75 % $ 2,905,968 $ 86,759 2.99 % Savings and money market deposits 10,305,664 341,042 3.31 % 11,043,510 451,352 4.09 % 10,704,470 382,432 3.57 % Time deposits 3,804,507 142,375 3.74 % 4,757,675 211,411 4.44 % 5,169,458 191,114 3.70 % Total interest bearing deposits 19,583,487 664,335 3.39 % 19,879,037 815,572 4.10 % 18,779,896 660,305 3.52 % Short-term borrowings — — — % — — — % 35,403 1,611 4.55 % FHLB advances 2,909,589 111,126 3.82 % 3,823,579 158,750 4.15 % 6,331,685 285,026 4.50 % Notes and other borrowings 571,046 29,752 5.21 % 709,422 36,528 5.15 % 716,633 36,835 5.14 % Total interest bearing liabilities 23,064,122 805,213 3.49 % 24,412,038 1,010,850 4.14 % 25,863,617 983,777 3.80 % Non-interest bearing demand deposits 8,083,605 7,239,161 7,091,029 Other non-interest bearing liabilities 931,540 968,163 848,023 Total liabilities 32,079,267 32,619,362 33,802,669 Stockholders' equity 2,985,858 2,738,363 2,549,028 Total liabilities and stockholders' equity $ 35,065,125 $ 35,357,725 $ 36,351,697 Net interest income $ 1,001,434 $ 929,841 $ 890,804 Interest rate spread 1.84 % 1.55 % 1.59 % Net interest margin 2.95 % 2.73 % 2.56 % (1) On a tax-equivalent basis where applicable.
  • The tax-equivalent adjustment for tax-exempt loans was $11.0 million, $12.2 million and $13.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.
  • The tax-equivalent adjustment for tax-exempt investment securities was $2.8 million, $3.3 million and $3.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
  • Changes applicable to both volume and rate have been allocated to volume (in thousands): 2025 Compared to 2024 2024 Compared to 2023 Change Due to Volume Change Due to Rate Increase (Decrease) Change Due to Volume Change Due to Rate Increase (Decrease) Interest Income Attributable to: Loans $ (26,885) $ (72,809) $ (99,694) $ (17,856) $ 88,410 $ 70,554 Investment securities 15,741 (44,416) (28,675) (9,302) 18,457 9,155 Other interest earning assets 1,485 (7,160) (5,675) (12,021) (1,578) (13,599) Total interest earning assets (9,659) (124,385) (134,044) (39,179) 105,289 66,110 Interest Expense Attributable to: Interest bearing demand deposits 46,052 (17,943) 28,109 43,965 22,085 66,050 Savings and money market deposits (24,171) (86,139) (110,310) 13,257 55,663 68,920 Time deposits (35,732) (33,304) (69,036) (17,957) 38,254 20,297 Total interest bearing deposits (13,851) (137,386) (151,237) 39,265 116,002 155,267 Short-term borrowings — — — (1,611) — (1,611) FHLB advances (35,006) (12,618) (47,624) (104,115) (22,161) (126,276) Notes and other borrowings (7,202) 426 (6,776) (379) 72 (307) Total interest expense (56,059) (149,578) (205,637) (66,840) 93,913 27,073 Increase in tax-equivalent net interest income $ 46,400 $ 25,193 $ 71,593 $ 27,661 $ 11,376 $ 39,037 Net interest income, calculated on a tax-equivalent basis, was $1.0 billion for the year ended December 31, 2025, compared to $929.8 million for the year ended December 31, 2024, an increase of $71.6 million.
  • The increase was comprised of decreases in tax-equivalent interest income and interest expense of $134.0 million and $205.6 million, respectively.
  • The net interest margin, calculated on a tax-equivalent basis, increased to 2.95% for the year ended December 31, 2025, from 2.73% for the year ended December 31, 2024.
  • Both the yield on interest earning assets and the cost of interest bearing liabilities declined during the year, reflecting a lower interest rate environment.
  • However, the decline in the cost of interest bearing liabilities outpaced the decline in the yield on interest earning assets, primarily as a result of balance sheet repositioning, particularly an improved funding mix.
  • For the year ended December 31, 2025 compared to the year ended December 31, 2024, average NIDDA grew by $844 million while average FHLB advances declined by $914 million.
  • On the asset side of the balance sheet, average core loans increased to 65.9% of average loans for the year ended December 31, 2025, from 62.8% of average loans for the year ended December 31, 2024, while generally lower-yielding residential loans declined to 30.7% of average loans from 32.6% of average loans for the respective periods.

and 411 more.

Gone since FY2024

  • Item 1A - Risk Factors" for additional discussion of risks to the execution of our strategic priorities. 2024 Performance Highlights: In evaluating our financial performance, we consider improvement in the funding mix and the composition of earning assets, the level of and trends in net interest income and the net interest margin, the cost of deposits, trends in non-interest income and non-interest expense, performance ratios such as the return on average equity and return on average assets and asset quality ratios, including the ratio of non-performing loans to total loans, non-performing assets to total assets, trends in criticized and classified assets and portfolio delinquency and charge-off trends.
  • Highlights include: ◦ Net income for the year ended December 31, 2024, was $232.5 million, or $3.08 per diluted share, compared to $178.7 million, or $2.38 per diluted share for the year ended December 31, 2023.Results for the year ended December 31, 2023 were negatively impacted by a $35.4 million FDIC special assessment, pre-tax.
  • This item reduced net income by $26.2 million and EPS by $0.35 for the year ended December 31, 2023. ◦ ROAA improved to 0.66% for the year ended December 31, 2024 from 0.49% for the year ended December 31, 2023; ROAE improved to 8.49% from 7.01%. ◦ The net interest margin, calculated on a tax-equivalent basis, expanded by 0.17%, to 2.73% for the year ended December 31, 2024 from 2.56% for the year ended December 31, 2023.
  • The increase in the net interest margin was primarily a result of balance sheet repositioning, particularly an improved funding mix.
  • The following chart provides a comparison of net interest margin, the average yield on interest earning assets and the average rate paid on interest bearing liabilities for the years ended December 31, 2024 and 2023 (on tax equivalent basis): ◦ Consistent with industry trends, higher prevailing interest rates and restrictive monetary policy, the average cost of total deposits increased by 0.46% to 3.01% for the year ended December 31, 2024, from 2.55% for the year ended December 31, 2023, although the average cost of deposits has declined over the latter half of the year.
  • The spot APY of total deposits declined to 2.63% at December 31, 2024 from 3.18% at December 31, 2023, reflecting the declines in the fed funds rate in the latter half of the year and an improved deposit mix. ◦ The following charts illustrate the composition of deposits at the dates indicated: December 31, 2024 December 31, 2023 ◦ NIDDA grew by 11%, or $781 million during the year ended December 31, 2024.
  • Total deposits grew by $1.3 billion and non-brokered deposits grew by $1.4 billion.
  • Average NIDDA increased by $148 million for the year ended December 31, 2024. ◦ Loan portfolio composition shifted from residential to core commercial categories during the year ended December 31, 2024.
  • Residential, franchise, equipment and municipal finance portfolios declined by a combined $959 million while the core C&I and CRE categories grew by $470 million for the year ended December 31, 2024, all reflective of our balance sheet repositioning strategy. ◦ The loan to deposit ratio declined to 87.2% at December 31, 2024, from 92.8% at December 31, 2023. ◦ The net charge-off ratio for the year ended December 31, 2024, was 0.16%, a level we consider to be relatively low.
  • The NPA ratio at December 31, 2024 was 0.73%, including 0.10% related to the guaranteed portion of non-performing SBA loans. ◦ The ratio of the ACL to total loans increased to 0.92% at December 31, 2024, from 0.82% at December 31, 2023.
  • The ACL to loans ratio for commercial portfolio sub-segments including C&I, CRE, franchise finance and equipment finance was 1.37% at December 31, 2024 and the ACL to loans ratio for CRE office loans was 2.30%. ◦ At December 31, 2024, CET1 was 12.0% and pro-forma CET1, including accumulated other comprehensive income, was 10.9%.
  • The ratio of tangible common equity/tangible assets increased to 7.8%.
  • The charts below present the Company's and the Bank's regulatory capital ratios at the dates indicated: BankUnited, Inc.
  • December 31, 2024 December 31, 2023 BankUnited, N.A.
  • December 31, 2024 December 31, 2023 ◦ Book value and tangible book value per common share grew to $37.65 and $36.61, respectively, at December 31, 2024, from $34.66 and $33.62, respectively, at December 31, 2023.
  • ACL The ACL represents management's estimate of current expected credit losses, or the amount of amortized cost basis not expected to be collected, on our loan portfolio and the amount of credit loss impairment on our AFS securities portfolio.
  • Estimates that are particularly susceptible to change that may have a material impact on the amount of the ACL include: • our evaluation of current conditions; • our determination of a reasonable and supportable economic forecast or weighting of various forecast paths and selection of the reasonable and supportable forecast period; • our evaluation of historical loss experience and selection of historical loss data used in formulating our ACL estimate; since we have limited company specific historical loss data, our modeling techniques also leverage broad external data sets for this purpose; • our evaluation of changes in composition and characteristics of the loan portfolio, including internal risk ratings; • our estimate of expected prepayments; • the value of underlying collateral, which may impact loss severity and certain cash flow assumptions for collateral-dependent, criticized and classified loans; in the current environment, especially with respect to certain commercial real estate sectors like office, current and projected collateral values may be particularly challenging to estimate; • our selection and evaluation of qualitative factors; and • our estimate of expected cash flows on AFS debt securities in unrealized loss positions.
  • Interest income, yields, spread and margin have been calculated on a tax-equivalent basis for loans and investment securities that are exempt from federal income taxes, at a federal tax rate of 21% (dollars in thousands): Years Ended December 31, 2024 2023 2022 Average Balance Interest (1) Yield/ Rate (1) Average Balance Interest (1) Yield/ Rate (1) Average Balance Interest (1) Yield/ Rate (1) Loans $ 24,269,787 $ 1,402,132 5.78 % $ 24,558,430 $ 1,331,578 5.42% $ 23,937,857 $ 947,386 3.96 % Investment securities (2) 9,064,521 501,006 5.53 % 9,228,718 491,851 5.33% 10,081,701 283,081 2.81 % Other interest earning assets 745,885 37,553 5.03 % 986,186 51,152 5.19% 675,068 15,709 2.33 % Total interest earning assets 34,080,193 1,940,691 5.69 % 34,773,334 1,874,581 5.39% 34,694,626 1,246,176 3.59 % Allowance for credit losses (224,673) (171,618) (132,033) Non-interest earning assets 1,502,205 1,749,981 1,721,570 Total assets $ 35,357,725 $ 36,351,697 $ 36,284,163 Liabilities and Stockholders' Equity: Interest bearing liabilities: Interest bearing demand deposits $ 4,077,852 $ 152,809 3.75 % $ 2,905,968 $ 86,759 2.99 % $ 2,538,906 $ 13,919 0.55 % Savings and money market deposits 11,043,510 451,352 4.09 % 10,704,470 382,432 3.57 % 12,874,240 130,705 1.02 % Time deposits 4,757,675 211,411 4.44 % 5,169,458 191,114 3.70 % 3,338,671 35,348 1.06 % Total interest bearing deposits 19,879,037 815,572 4.10 % 18,779,896 660,305 3.52 % 18,751,817 179,972 0.96 % Short-term borrowings — — — % 35,403 1,611 4.55 % 157,979 2,723 1.72 % FHLB advances 3,823,579 158,750 4.15 % 6,331,685 285,026 4.50 % 4,383,507 97,763 2.23 % Notes and other borrowings 709,422 36,528 5.15 % 716,633 36,835 5.14 % 721,223 37,033 5.13 % Total interest bearing liabilities 24,412,038 1,010,850 4.14 % 25,863,617 983,777 3.80 % 24,014,526 317,491 1.32 % Non-interest bearing demand deposits 7,239,161 7,091,029 8,861,111 Other non-interest bearing liabilities 968,163 848,023 708,473 Total liabilities 32,619,362 33,802,669 33,584,110 Stockholders' equity 2,738,363 2,549,028 2,700,053 Total liabilities and stockholders' equity $ 35,357,725 $ 36,351,697 $ 36,284,163 Net interest income $ 929,841 $ 890,804 $ 928,685 Interest rate spread 1.55 % 1.59 % 2.27 % Net interest margin 2.73 % 2.56 % 2.68 % (1) On a tax-equivalent basis where applicable.
  • The tax-equivalent adjustment for tax-exempt loans was $12.2 million, $13.4 million and $12.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.
  • The tax-equivalent adjustment for tax-exempt investment securities was $3.3 million, $3.6 million and $3.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.
  • Changes applicable to both volume and rate have been allocated to volume (in thousands): 2024 Compared to 2023 2023 Compared to 2022 Change Due to Volume Change Due to Rate Increase (Decrease) Change Due to Volume Change Due to Rate Increase (Decrease) Interest Income Attributable to: Loans $ (17,856) $ 88,410 $ 70,554 $ 34,699 $ 349,493 $ 384,192 Investment securities (9,302) 18,457 9,155 (45,289) 254,059 208,770 Other interest earning assets (12,021) (1,578) (13,599) 16,136 19,307 35,443 Total interest earning assets (39,179) 105,289 66,110 5,546 622,859 628,405 Interest Expense Attributable to: Interest bearing demand deposits 43,965 22,085 66,050 10,891 61,949 72,840 Savings and money market deposits 13,257 55,663 68,920 (76,566) 328,293 251,727 Time deposits (17,957) 38,254 20,297 67,625 88,141 155,766 Total interest bearing deposits 39,265 116,002 155,267 1,950 478,383 480,333 Short-term borrowings (1,611) — (1,611) (5,583) 4,471 (1,112) FHLB advances (104,115) (22,161) (126,276) 87,757 99,506 187,263 Notes and other borrowings (379) 72 (307) (270) 72 (198) Total interest expense (66,840) 93,913 27,073 83,854 582,432 666,286 Increase (decrease) in tax-equivalent net interest income $ 27,661 $ 11,376 $ 39,037 $ (78,308) $ 40,427 $ (37,881) Net interest income, calculated on a tax-equivalent basis, was $929.8 million for the year ended December 31, 2024, compared to $890.8 million for the year ended December 31, 2023, an increase of $39.0 million.
  • The increase was comprised of increases in tax-equivalent interest income and interest expense of $66.1 million and $27.1 million, respectively.
  • Increases in interest income for the year ended December 31, 2024 compared to the year ended December 31, 2023 reflected rising yields on interest earning assets that more than offset the decline in average interest earning assets.
  • Similarly, increases in interest expense for the year ended December 31, 2024 compared to the year ended December 31, 2023, resulted from increases in the cost of interest bearing liabilities that more than offset the decline in average interest bearing liabilities.
  • The net interest margin, calculated on a tax-equivalent basis, increased to 2.73% for the year ended December 31, 2024, from 2.56% for the year ended December 31, 2023.
  • The increase in the net interest margin for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily a result of balance sheet repositioning, particularly an improved funding mix.
  • For the year ended December 31, 2024 compared to the year ended December 31, 2023, average NIDDA grew by $148 million while average FHLB advances declined by $2.5 billion.
  • In part, increased yields on average interest earning assets as well as increases in the cost of deposits reflected the impact of a generally more sustained higher rate environment.
  • Further discussion of factors impacting the net interest margin for the year ended December 31, 2024 compared to the year ended December 31, 2023 follows: • The tax-equivalent yield on loans increased to 5.78% for the year ended December 31, 2024, from 5.42% for the year ended December 31, 2023 .
  • This increase reflected the origination of new loans at higher rates, paydowns of lower-rate loans and balance sheet repositioning. • The tax-equivalent yield on investment securities increased to 5.53% for the year ended December 31, 2024, from 5.33% for the year ended December 31, 2023.
  • This increase resulted primarily from the reset of coupon rates on variable rate securities, purchases of higher-yielding securities and paydowns and sales of lower-yielding securities. • The average cost of interest bearing deposits increased to 4.10% for the year ended December 31, 2024, from 3.52% for the year ended December 31, 2023.
  • This increase primarily reflected the ongoing impact of higher prevailing market interest rates, which did not start to reverse until the latter part of 2024. • The average rate paid on FHLB advances decreased to 4.15% for the year ended December 31, 2024, from 4.50% for the year ended December 31, 2023, primarily due to repayment of higher rate advances, partially offset by maturities of some cash flow hedges .
  • The following table presents the components of the provision for credit losses for the periods indicated (in thousands): Years Ended December 31, 2024 2023 2022 Amount related to funded portion of loans $ 58,986 $ 78,924 $ 73,814 Amount related to off-balance sheet credit exposures (3,914) 8,683 1,467 Other — — (127) Total provision for credit losses $ 55,072 $ 87,607 $ 75,154 The most significant factors impacting the provision for credit losses for the year ended December 31, 2024 included (i) risk rating migration and increases in certain specific reserves; and (ii) an increase in qualitative loss factors, partially offset by an improved economic forecast.
  • Non-Interest Income The following table presents a comparison of the categories of non-interest income for the periods indicated (in thousands): Years Ended December 31, 2024 2023 2022 Deposit service charges and fees $ 20,226 $ 20,906 $ 22,510 Gain (loss) on investment securities: Net realized gain on sale of securities AFS 1,074 1,815 3,927 Net gain (loss) on marketable equity securities recognized in earnings 1,053 (11,867) (19,732) Gain (loss) on investment securities, net 2,127 (10,052) (15,805) Lease financing 30,610 45,882 54,111 Other non-interest income 46,192 30,102 16,820 $ 99,155 $ 86,838 $ 77,636 The losses on marketable equity securities during the years ended December 31, 2023 and 2022, were attributable to losses related to certain preferred equity investments.
  • The decrease in lease financing revenue for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily attributable to the continued decline in the size of the operating lease equipment portfolio.
  • Expense related to the depreciation of operating lease equipment reflected a corresponding decrease over these comparative periods.
  • These declines are expected to continue.
  • The increase in other non-interest income for the year ended December 31, 2024, compared to the year ended December 31, 2023, reflected increases in BOLI income, higher loan-related and syndication fees and increased revenue from our customer derivative and commercial card businesses.
  • Non-Interest Expense The following table presents components of non-interest expense for the periods indicated (in thousands): Years Ended December 31, 2024 2023 2022 Employee compensation and benefits $ 315,604 $ 280,744 $ 265,548 Occupancy and equipment 45,560 43,345 45,400 Deposit insurance expense 36,143 66,747 17,999 Professional fees 17,110 14,184 11,730 Technology 82,978 79,984 77,103 Depreciation of operating lease equipment 26,127 44,446 50,388 Other non-interest expense 118,478 106,501 72,142 Total non-interest expense $ 642,000 $ 635,951 $ 540,310 The most significant reason for the year-over-year increase in compensation was an increase in variable compensation expense.
  • This increase was related to the improved performance of the Company for 2024 compared to 2023 as well as to the impact of an increase in the Company's stock price on the valuation of liability classified share awards.

and 452 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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