PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents BankUnited, Inc.'s unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and equity, along with detailed notes on accounting policies and financial accounts [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $35.46 billion as of June 30, 2025, from $35.24 billion at December 31, 2024, driven by higher cash and cash equivalents and a rise in total deposits to $28.65 billion Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $801,294 | $491,116 | | Loans, net | $23,710,797 | $24,074,827 | | Investment securities | $9,401,071 | $9,130,244 | | **Total Assets** | **$35,459,707** | **$35,241,742** | | **Liabilities & Equity** | | | | Total deposits | $28,645,941 | $27,865,703 | | FHLB advances | $2,255,000 | $2,930,000 | | **Total Liabilities** | **$32,506,690** | **$32,427,424** | | **Total Stockholders' Equity** | **$2,953,017** | **$2,814,318** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q2 2025 was $68.8 million, an increase from $53.7 million in Q2 2024, driven by higher net interest income due to a larger decrease in interest expense Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $246,119 | $226,022 | $479,258 | $440,879 | | Provision for Credit Losses | $15,698 | $19,538 | $30,809 | $34,823 | | **Net Income** | **$68,766** | **$53,733** | **$127,242** | **$101,713** | | **Diluted EPS** | **$0.91** | **$0.72** | **$1.68** | **$1.36** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $134.0 million, investing activities provided $85.5 million, and financing activities provided $90.7 million, resulting in a net increase in cash and cash equivalents of $310.2 million Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $133,982 | $202,180 | | Net cash provided by investing activities | $85,463 | $261,026 | | Net cash provided by (used in) financing activities | $90,733 | $(618,037) | | **Net increase (decrease) in cash** | **$310,178** | **$(154,831)** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on the company's accounting policies, investment securities, loan composition, allowance for credit losses, derivatives, and capital structure - The company operates as a single reportable segment, with the CEO acting as the Chief Operating Decision Maker (CODM)[31](index=31&type=chunk) - The most significant accounting estimate is the Allowance for Credit Losses (ACL)[32](index=32&type=chunk) - In July 2025, the Board authorized a new share repurchase program of up to **$100 million** and the redemption of its 4.875% senior notes due November 2025[122](index=122&type=chunk)[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q2 2025, highlighting an 18% sequential increase in net income to $68.8 million, driven by an expanded net interest margin and improved funding profile Quarterly Performance Highlights (Q2 2025) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (millions) | $68.8 | $58.5 | $53.7 | | Diluted EPS | $0.91 | $0.78 | $0.72 | | Return on Average Equity | 9.4% | 8.2% | 8.0% | | Net Interest Margin (tax-equiv.) | 2.93% | 2.81% | 2.72% | - The company's funding profile improved, with non-interest bearing demand deposits (NIDDA) growing by **$1.0 billion** in Q2 2025 to represent **32%** of total deposits[127](index=127&type=chunk) - The loan-to-deposit ratio declined to **83.6%** at June 30, 2025, from **87.2%** at year-end 2024, indicating improved liquidity[129](index=129&type=chunk) - Tangible book value per common share increased **9%** year-over-year to **$38.23** at June 30, 2025[129](index=129&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Net interest income on a tax-equivalent basis increased by $12.9 million sequentially to $249.5 million in Q2 2025, driven by higher loan yields and a lower cost of funds - The net interest margin (tax-equivalent) expanded by **12 basis points** to **2.93%** in Q2 2025 from Q1 2025, benefiting from growth in NIDDA and a decline in the average rate paid on interest-bearing deposits[135](index=135&type=chunk) - The provision for credit losses of **$15.7 million** in Q2 2025 was primarily driven by increases in specific reserves[142](index=142&type=chunk) - Non-interest expense increased YoY, mainly due to higher employee compensation from increased headcount and routine salary increases[147](index=147&type=chunk) [Analysis of Financial Condition](index=44&type=section&id=Analysis%20of%20Financial%20Condition) The company continued its balance sheet transformation in H1 2025, growing non-interest bearing deposits by $1.5 billion while reducing wholesale funding by $1.8 billion - The investment securities AFS portfolio had a net unrealized loss of **$330.0 million** at June 30, 2025, an improvement from a **$405.6 million** loss at year-end 2024, primarily due to changes in interest rates[151](index=151&type=chunk) Loan Portfolio Composition (June 30, 2025) | Loan Category | Amortized Cost (billions) | Percent of Total | | :--- | :--- | :--- | | Core C&I and CRE | $15.16 | 63.4% | | Residential | $7.30 | 30.5% | | Other Commercial | $1.47 | 6.1% | | **Total Loans** | **$23.93** | **100.0%** | - The Commercial Real Estate (CRE) portfolio is concentrated in Office (**26%**), Warehouse/Industrial (**21%**), and Retail (**20%**), with modest exposure compared to peer banks[164](index=164&type=chunk)[166](index=166&type=chunk) [Asset Quality](index=54&type=section&id=Asset%20Quality) Asset quality showed mixed trends in Q2 2025, with total criticized and classified loans declining but non-accrual loans increasing, primarily from office CRE exposure Non-Performing Assets (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total non-performing loans | $376,341 | $250,707 | | Total non-performing assets | $383,039 | $256,189 | | NPA to Total Assets Ratio | 1.08% | 0.73% | | NPL to Total Loans Ratio | 1.57% | 1.03% | - Total criticized and classified commercial loans declined to **$1.23 billion** at June 30, 2025, from **$1.38 billion** at year-end 2024[70](index=70&type=chunk) - Non-performing CRE loans totaled **$142 million**, of which **$124 million** was office exposure[174](index=174&type=chunk) [Analysis of the Allowance for Credit Losses](index=61&type=section&id=Analysis%20of%20the%20Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses (ACL) was $222.7 million, or 0.93% of total loans, at June 30, 2025, driven by an increase in specific reserves ACL as a Percentage of Loans | Portfolio Segment | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Commercial | 1.36% | 1.37% | | Residential and MWL | 0.18% | 0.15% | | **Total Loans** | **0.93%** | **0.92%** | | ACL to CRE office loans | 1.92% | 2.30% | - The most significant factor impacting the ACL during Q2 2025 was an increase in specific reserves, net of overall positive risk rating migration[232](index=232&type=chunk) - The quantitative ACL estimate was based on a weighted combination of economic scenarios, with the baseline forecast including national unemployment peaking at **4.8%** and GDP growth troughing at **0.6%**[227](index=227&type=chunk)[234](index=234&type=chunk)[237](index=237&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity and capital position, with robust same-day available liquidity and all capital ratios exceeding well-capitalized guidelines - Same-day available liquidity totaled **$16.4 billion** at June 30, 2025[254](index=254&type=chunk)[255](index=255&type=chunk) Regulatory Capital Ratios (Company) - June 30, 2025 | Ratio | Actual | Required for Well-Capitalized | | :--- | :--- | :--- | | CET1 Risk-Based Capital | 12.22% | 6.50% | | Tier 1 Risk-Based Capital | 12.22% | 8.00% | | Total Risk-Based Capital | 14.31% | 10.00% | | Tier 1 Leverage | 8.75% | N/A | - In July 2025, the Board authorized a new **$100 million** share repurchase program[262](index=262&type=chunk) [Interest Rate Risk](index=70&type=section&id=Interest%20Rate%20Risk) The company manages interest rate risk through its Asset/Liability Committee (ALCO), using simulation models for Net Interest Income (NII) and Economic Value of Equity (EVE) Net Interest Income Sensitivity (Year 1) - June 30, 2025 | Rate Shock | % Change in NII | | :--- | :--- | | +200 bps | +3.4% | | +100 bps | +1.8% | | -100 bps | -2.1% | | -200 bps | -5.3% | Economic Value of Equity (EVE) Sensitivity - June 30, 2025 | Rate Shock | % Change in EVE | | :--- | :--- | | +200 bps | -10.8% | | +100 bps | -5.3% | | -100 bps | +7.9% | | -200 bps | +12.3% | - The company had **$3.63 billion** in notional value of derivatives designated as cash flow hedges at June 30, 2025, primarily interest rate swaps to manage cash flow variability on borrowings and loans[271](index=271&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers the reader to the 'Interest Rate Risk' discussion within Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, for quantitative and qualitative disclosures about market risk - The company's disclosures about market risk are contained within the MD&A section, specifically under the heading 'Interest Rate Risk'[275](index=275&type=chunk) [Item 4. Controls and Procedures](index=74&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[275](index=275&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the quarter ended June 30, 2025[276](index=276&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=74&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal actions arising from the normal course of business, with management believing the outcome is unlikely to have a material adverse impact on financial condition - Management opines that the likelihood of any material adverse impact from ongoing legal proceedings is remote[277](index=277&type=chunk) [Item 1A. Risk Factors](index=74&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes to the risk factors disclosed in the 2024 Form 10-K have occurred[278](index=278&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities to report for the quarter[279](index=279&type=chunk) [Item 5. Other Information](index=74&type=section&id=ITEM%205.%20Other%20Information) During the second quarter of 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[280](index=280&type=chunk) [Item 6. Exhibits](index=75&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and XBRL data files

Core Viewpoint - BankUnited, Inc. (BKU) has experienced a 7.1% decline in shares over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure, which could lead to a bullish trend for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that buyers may be gaining control after a downtrend [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for BKU, which is a positive sign for potential price appreciation [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 2.1%, indicating that analysts expect better earnings than previously predicted [8]. - BKU holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Insights - BankUnited, Inc. (BKU) reported second-quarter 2025 earnings of 91 cents per share, exceeding the Zacks Consensus Estimate of 79 cents and up from 72 cents in the prior-year quarter [1][10] - The results were driven by growth in net interest income (NII) and non-interest income, alongside a decline in provisions for credit losses [1][10] - Total net revenues increased by 9.5% year over year to $273.9 million, surpassing the Zacks Consensus Estimate of $265.6 million [3][10] Financial Performance - Net income for the quarter was $68.8 million, reflecting a 28% increase from the year-ago quarter, compared to an estimate of $58.2 million [2] - NII reached $246.1 million, an 8.9% growth, with net interest margin (NIM) expanding by 21 basis points to 2.93% [3] - Non-interest income rose 15% to $27.8 million, driven by increased deposit service charges and fees [4] Expense and Asset Management - Non-interest expenses increased by 4.2% to $164.3 million, attributed to higher employee compensation and technology costs [5] - Total loans were $23.9 billion, a slight decrease from the prior quarter, while total deposits rose by 2.1% to $28.6 billion [6] Credit Quality and Capital Ratios - Provisions for credit losses were $15.7 million, down 19.7% from the prior-year quarter [7] - The ratio of net charge-offs to average loans was 0.27%, up 35 basis points year over year, and the non-performing assets ratio increased to 1.08% [7] - Common Equity Tier 1 risk-based capital ratio improved to 12.2%, up from 11.6%, and the total risk-based capital ratio rose to 14.3% from 13.6% [8] Market Position and Outlook - BankUnited's strategy to grow fee income and low-cost deposits, along with relatively higher interest rates, is expected to support revenue growth [11] - The company faces challenges from rising expenses and significant exposure to commercial real estate and residential loans [11]

Core Insights - BankUnited, Inc. (BKU) reported a revenue of $273.93 million for the quarter ended June 2025, reflecting a year-over-year increase of 9.5% and a surprise of +3.12% over the Zacks Consensus Estimate of $265.63 million [1] - The earnings per share (EPS) for the quarter was $0.91, compared to $0.72 in the same quarter last year, resulting in an EPS surprise of +15.19% against the consensus estimate of $0.79 [1] Financial Performance Metrics - Net charge-offs to average loans stood at 0.3%, matching the three-analyst average estimate of 0.3% [4] - Net Interest Margin was reported at 2.9%, consistent with the average estimate from three analysts [4] - Average Interest-Earning Assets totaled $34.06 billion, aligning with the three-analyst average estimate [4] - Deposit service charges and fees reached $5.32 million, exceeding the average estimate of $5.08 million from three analysts [4] - Net Interest Income (FTE basis) was $249.53 million, surpassing the average estimate of $247.52 million [4] - Other non-interest income amounted to $17.88 million, significantly higher than the average estimate of $13.39 million [4] - Total Non-Interest Income was reported at $27.81 million, compared to the average estimate of $22.96 million [4] - Lease financing generated $4.61 million, exceeding the average estimate of $4.15 million [4] - Net interest income before provision for credit losses was $246.12 million, above the three-analyst average estimate of $243.67 million [4] Stock Performance - BankUnited's shares have returned +10.8% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Net income for the quarter was approximately $69 million or $0.91 per share, exceeding consensus estimates of around $79 million [7] - Return on Assets (ROA) improved to 78 basis points from 68 basis points last quarter and 61 basis points a year ago [7] - Return on Equity (ROE) increased to 9.4%, up from 8.2% last quarter and 8% a year ago [7] - Net Interest Margin (NIM) expanded from 2.81% to 2.93%, reflecting a 12 basis point improvement [10][26] - Total non-interest income increased by $5.5 million, driven by growth in fee businesses [34] Business Line Data and Key Metrics Changes - Commercial loans grew by $68 million, with Commercial Real Estate (CRE) loans increasing by $267 million, while Commercial and Industrial (C&I) loans declined by $199 million [11][20] - The residential portfolio decreased as expected, with a decline of $160 million [21] - The average yield on loans increased to 5.55% from 5.48% last quarter [28] Market Data and Key Metrics Changes - The weighted average Loan-to-Value (LTV) of the CRE portfolio was 54%, with a debt service coverage ratio of 1.76, indicating strong portfolio health [22] - The total criticized and classified loans decreased by $156 million, marking one of the largest reductions in recent times [12] - Non-Performing Loans (NPLs) increased by $117 million, primarily due to office-related loans [13][33] Company Strategy and Development Direction - The company aims to maintain a safe and sound banking operation while focusing on responsible growth and profitability [15][16] - Expansion into new markets, including New Jersey and Charlotte, is part of the growth strategy [18][76] - The company has authorized a $100 million stock buyback program, reflecting confidence in its capital position [14][56] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in the operating environment, with less uncertainty compared to the previous quarter, but acknowledged ongoing risks [16][17] - The company expects continued double-digit growth in Net Interest Income and deposits, with a focus on maintaining margin expansion [35][36] - Management remains cautious about the economic outlook, particularly regarding office loans, but believes the portfolio is well-positioned [88][90] Other Important Information - The company plans to redeem its outstanding senior bond maturing in November, with the redemption expected to occur later in August [38] - The Chief Financial Officer (CFO) succession plan was announced, with Leslie Lunak set to retire and Jim Mackie appointed as her successor [39][40] Q&A Session Summary Question: Regarding credit and office detail, what happens when loans move to non-performing status? - The company reappraises loans before they move to non-accrual status and updates LTVs and debt service coverage ratios accordingly [48][49] Question: Can you provide a breakdown of the provision for credit losses? - The provision for credit losses was $15.7 million, with specific reserves increasing by $33 million and net charge-offs totaling $12.7 million [31][51] Question: What is the outlook for deposits moving into the next quarters? - The company expects deposit balances to remain stable through the third quarter but may decline in the fourth quarter due to seasonality [52][54] Question: What is the company's target for normalized Net Interest Margin (NIM)? - The company targets a normalized NIM in the mid-threes, emphasizing the importance of pricing discipline and mix [94][96] Question: What is the company's stance on M&A activity? - While the company is not actively seeking M&A opportunities, it remains open to discussions if the right deal arises [116][117]

Financial Data and Key Metrics Changes - Net income for the quarter was approximately $69 million or $0.91 per share, exceeding consensus estimates of around $79 million [6] - Return on Assets (ROA) improved to 78 basis points from 68 basis points last quarter and 61 basis points a year ago [6] - Return on Equity (ROE) increased to 9.4%, up from 8.2% last quarter and 8% a year ago [6] - Net interest margin expanded from 2.81% to 2.93%, reflecting a 12 basis points improvement [9][25] - Net interest income rose by 5.6% quarter over quarter [10] Business Line Data and Key Metrics Changes - Commercial loans grew by $68 million, with Commercial Real Estate (CRE) increasing by $267 million, while Commercial and Industrial (C&I) loans declined by $199 million [10] - The residential loan portfolio decreased as expected, with a decline of $160 million [20] - Total criticized and classified loans decreased by $156 million, marking one of the largest reductions in recent times [11] Market Data and Key Metrics Changes - Non-Interest Bearing Deposits (NIDDA) increased by over $1 billion, with average NIDDA up by $581 million [7] - Total non-broker deposits grew by $1.2 billion, with NIDDA now representing 32% of total deposits [8] - The cost of deposits declined by 15 basis points to 2.37% from 2.52% [9][25] Company Strategy and Development Direction - The company aims to run a safe and sound bank, grow its balance sheet responsibly, and return excess capital through buybacks [14] - Recent expansions into New Jersey and Charlotte are part of the strategy to enhance market presence and capitalize on growth opportunities [17] - The company is focused on maintaining profitability while managing credit risk and optimizing the balance sheet [16] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in the operating environment compared to three months ago, with less uncertainty but still caution advised [15] - The company expects continued double-digit growth in NIDDA and solid growth in non-brokered deposits [34] - Management anticipates margin expansion throughout the year, driven by a favorable mix shift and pricing discipline [104] Other Important Information - The company authorized a $100 million stock buyback program, reflecting confidence in capital management [13] - The Common Equity Tier 1 (CET1) ratio stands at 12.2%, indicating a strong capital position [13] Q&A Session Summary Question: Credit and office detail regarding non-performing loans - Management confirmed that properties are reappraised before moving to non-accrual status, and LTVs and debt service coverage ratios are updated accordingly [46] Question: Breakdown of provisions and charge-offs - Specific reserves increased by $33 million, with net charge-offs totaling $12.7 million, including $5.2 million from office charge-offs [49] Question: Deposit strength and seasonality - Management expects deposit balances to remain stable through Q3, with a potential decline in Q4 due to seasonality [50] Question: M&A activity and market expansion - Conversations around M&A have been consistent, but the company prefers organic growth and will only consider opportunities that align with its strategy [112] Question: Loan yield and origination rates - New production rates are generally higher than existing loans being replaced, indicating a positive repricing outlook [119]

Financial Performance - Net income reached $68.8 million, an 18% increase quarter-over-quarter[4] - Net Interest Margin (NIM) expanded by 0.12% to 2.93% from 2.81%[4] - Return on Equity (ROE) improved to 9.4%[4] - Net Interest Income increased to $246 million, a 6% quarter-over-quarter growth[5] Funding Profile - Non-interest bearing demand deposit accounts (NIDDA) grew 13%, or $1.0 billion, to reach 32% of total deposits[4] - Average NIDDA increased by $581 million[4] - Non-brokered deposits increased by $1.2 billion[4] - Wholesale funding decreased by $749 million[4] - Cost of deposits decreased by 0.11% to 2.47% from 2.58%, with a spot APY of 2.37% at June 30[4] Asset Quality - Core Commercial & Industrial (C&I) and Commercial Real Estate (CRE) loans grew by a net $68 million[4] - Lower yielding and non-core resi, franchise, equipment and municipal finance declined an aggregate $171 million[4] - Non-performing assets to total assets increased to 1.08%[5] - Allowance for credit losses to total loans was 0.93%[5] Capital Strength - CET 1 ratio is 12.2%[4] - Tangible book value per share is now $38.23, a 9% year-over-year growth[4] - A new share repurchase authorization of $100 million was approved[4]

分组1 - BankUnited, Inc. reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, and up from $0.72 per share a year ago, representing an earnings surprise of +15.19% [1] - The company posted revenues of $273.93 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.12%, compared to year-ago revenues of $250.21 million [2] - BankUnited has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has added about 1.4% since the beginning of the year, underperforming the S&P 500's gain of 7.3% [3] - The current consensus EPS estimate for the coming quarter is $0.81 on revenues of $273.49 million, and for the current fiscal year, it is $3.20 on revenues of $1.07 billion [7] - The Zacks Industry Rank for Banks - Major Regional is currently in the top 11% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of BankUnited's financial results and strategic initiatives for the second quarter of 2025 [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) BankUnited reported strong financial results for the second quarter of 2025, with net income of $68.8 million, or $0.91 per diluted share, driven by significant growth in non-interest bearing demand deposits and a 12 basis point expansion in the net interest margin Financial Performance Summary | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $68.8 million | $58.5 million | $53.7 million | | Diluted EPS | $0.91 | $0.78 | $0.72 | Net Interest Margin and Income | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Interest Margin (tax-equivalent) | 2.93% | 2.81% | +0.12% | | Net Interest Income | $246.1 million | $233.1 million | +5.6% | - Non-interest bearing demand deposits (NIDDA) grew by **$1.0 billion**, or **13% quarter-over-quarter**, reaching **32% of total deposits**[4](index=4&type=chunk) - The funding profile improved as the average cost of total deposits decreased by **11 basis points to 2.47%** compared to the prior quarter, and wholesale funding declined by **$749 million**[4](index=4&type=chunk) [Key Operational and Strategic Developments](index=2&type=section&id=Key%20Operational%20and%20Strategic%20Developments) The company announced a new $100 million share repurchase program, the redemption of senior notes, and expansion of its wholesale banking presence - The Board of Directors authorized a new share repurchase program for up to **$100 million** of its outstanding common stock[7](index=7&type=chunk) - The company authorized the redemption of all outstanding **4.875% senior notes due November 2025**[7](index=7&type=chunk) - BankUnited launched new wholesale banking offices in Morristown, NJ, and Charlotte, NC to expand its footprint[7](index=7&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of the company's loan portfolio, asset quality, and net interest income performance [Loan Portfolio Analysis](index=2&type=section&id=Loan%20Portfolio%20Analysis) Total loans experienced a slight decline to $23.9 billion in Q2 2025, with shifts in portfolio composition including growth in Commercial Real Estate and reductions in Commercial and Industrial and residential loans Loan Portfolio Composition | Loan Category | June 30, 2025 ($ thousands) | % of Total | | :--- | :--- | :--- | | Non-owner occupied CRE | $5,829,835 | 24.4% | | Commercial and industrial | $6,743,739 | 28.2% | | Residential | $7,303,997 | 30.5% | | Other | $4,056,456 | 16.9% | | **Total Loans** | **$23,933,527** | **100.0%** | - The bank's commercial real estate exposure was **27% of total loans** and **185% of total risk-based capital**, which is below the peer median of 35% and 217%, respectively[6](index=6&type=chunk) CRE Portfolio Metrics | CRE Portfolio Metrics (as of June 30, 2025) | All CRE | Office Sub-segment | | :--- | :--- | :--- | | Weighted Average LTV | 54.2% | 63.3% | | Weighted Average DSCR | 1.76x | 1.52x | [Asset Quality and Allowance for Credit Losses (ACL)](index=3&type=section&id=Asset%20Quality%20and%20Allowance%20for%20Credit%20Losses%20(ACL)) Asset quality showed a mixed picture with a decline in criticized loans but an increase in non-accrual loans, primarily office-related, while the ACL to total loans ratio remained stable Asset Quality Ratios | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | ACL to Total Loans | 0.93% | 0.92% | 0.92% | | ACL to Non-Performing Loans | 59.18% | 84.58% | 89.01% | | Net Charge-offs to Avg. Loans (annualized) | 0.27% (YTD) | 0.33% | 0.16% (Annual) | - Total criticized and classified commercial loans decreased by **$156 million to $1.23 billion** in Q2 2025[10](index=10&type=chunk) - Non-accrual loans increased by a net **$117 million** during the quarter, with **$86 million** of the increase related to office CRE exposure, though **75%** of non-accrual loans were current on payments[10](index=10&type=chunk) - The provision for credit losses was **$15.7 million** for Q2 2025, a slight increase from **$15.1 million** in the prior quarter but down from **$19.5 million** in Q2 2024[9](index=9&type=chunk) [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased by 5.6% sequentially to $246.1 million, driven by a 12 basis point expansion in the tax-equivalent net interest margin to 2.93% - Net interest income grew **5.6% quarter-over-quarter** and **8.9% year-over-year**[11](index=11&type=chunk) - The net interest margin (tax-equivalent) expanded by **0.12% to 2.93%** from 2.81% in the prior quarter[12](index=12&type=chunk) - Key drivers for margin expansion included: - Growth in average NIDDA by **$581 million**[15](index=15&type=chunk) - Decline in the average rate on interest-bearing deposits to **3.48%** from 3.54%[15](index=15&type=chunk) - Increase in the tax-equivalent yield on loans to **5.55%** from 5.48%[15](index=15&type=chunk) [Financial Statements and Key Ratios](index=6&type=section&id=Financial%20Statements%20and%20Key%20Ratios) This section presents the consolidated financial statements, key performance ratios, and capital adequacy, along with non-GAAP financial measures [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section provides a summary of the company's balance sheets and statements of income for the reported periods [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets stood at $35.5 billion, with total deposits increasing to $28.6 billion, driven by a significant rise in non-interest bearing deposits, and total stockholders' equity growing to $2.95 billion | Balance Sheet Item ($ thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Assets | $35,459,707 | $34,831,997 | | Loans, net | $23,710,797 | $23,770,152 | | Total Deposits | $28,645,941 | $28,057,825 | | Non-interest bearing deposits | $9,112,888 | $8,069,275 | | FHLB advances | $2,255,000 | $2,405,000 | | Total Stockholders' Equity | $2,953,017 | $2,897,582 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2025, the company generated net interest income of $246.1 million and non-interest income of $27.8 million, resulting in a net income of $68.8 million after provisions and expenses | Income Statement Item ($ thousands) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $246,119 | $233,139 | $226,022 | | Provision for Credit Losses | $15,698 | $15,111 | $19,538 | | Total Non-interest Income | $27,810 | $22,270 | $24,185 | | Total Non-interest Expense | $164,327 | $160,226 | $157,706 | | **Net Income** | **$68,766** | **$58,476** | **$53,733** | [Key Performance Ratios and Capital Adequacy](index=11&type=section&id=Key%20Performance%20Ratios%20and%20Capital%20Adequacy) Profitability metrics improved in Q2 2025, with strong capital ratios maintained well above regulatory requirements, and tangible book value per share showing significant year-over-year growth Performance Ratios | Performance Ratios | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Return on average assets | 0.78% | 0.68% | 0.61% | | Return on average stockholders' equity | 9.4% | 8.2% | 8.0% | | Loans to deposits | 83.6% | 85.5% | 88.7% | | Tangible book value per common share | $38.23 | $37.48 | $35.07 | Capital Ratios (BankUnited, Inc.) | Capital Ratios (BankUnited, Inc.) | June 30, 2025 | Required to be Well Capitalized | | :--- | :--- | :--- | | CET1 risk based capital | 12.2% | 6.5% | | Total risk-based capital | 14.3% | 10.0% | | Tier 1 leverage | 8.8% | 5.0% | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles GAAP book value per common share to the non-GAAP measure of tangible book value per common share by excluding goodwill and other intangible assets Reconciliation of Book Value to Tangible Book Value | Reconciliation ($ thousands, except per share) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total stockholders' equity (GAAP) | $2,953,017 | $2,897,582 | $2,699,348 | | Less: goodwill and other intangible assets | $77,637 | $77,637 | $77,637 | | Tangible stockholders' equity (Non-GAAP) | $2,875,380 | $2,819,945 | $2,621,711 | | **Book value per common share (GAAP)** | **$39.26** | **$38.51** | **$36.11** | | **Tangible book value per common share (Non-GAAP)** | **$38.23** | **$37.48** | **$35.07** |

Group 1 - BankUnited, Inc. (NYSE: BKU) was revisited by a financial institution, indicating a renewed interest in the company [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting the importance of value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers to the service benefit from a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2] - The service includes live chat discussions about the oil and gas sector, fostering community engagement among subscribers [2]