Management pointed to notable deposit momentum, particularly growth in non-interest demand deposit accounts (NIDDA). Singh said NIDDA increased $485 million on a period-end “spot basis” in the quarter and was up $1.5 billion for the year. However, he cautioned that average balances provide a clearer view given quarter-end volatility and seasonal factors. Average NIDDA was up about $505 million in the quarter and $844 million for the year, which Singh described as “pretty solid numbers.”Pre-provision net rev ...

BankUnited (NYSE:BKU) Q4 2025 Earnings call January 21, 2026 09:00 AM ET Company ParticipantsJim Mackey - CFOJared Shaw - Managing DirectorMichael Rose - Managing Director of Equity ResearchRaj Singh - Chairman, President, and CEOWoody Lay - VPTom Cornish - COOJacqueline Bravo - Corporate SecretaryConference Call ParticipantsDavid Bishop - Director and Senior Equity Research AnalystJon Arfstrom - Equity Research AnalystOperatorGood day and welcome to the BankUnited's Susan Wright Greenfield 4th Quarter and ...

Financial Data and Key Metrics Changes - The company reported earnings of $69.3 million, or $0.90 per share, for the fourth quarter, with an adjusted EPS of $0.94 after accounting for one-time software write-downs [7][25] - The annualized return on assets (ROA) was 78 basis points, adjusted for the software write-down, it was approximately 81 basis points [8][11] - Net interest margin (NIM) expanded to 3.06%, up from 3% in the previous quarter and 22 basis points year-over-year [7][26] - Total deposits increased by $735 million during the quarter and $1.5 billion for the year [19] Business Line Data and Key Metrics Changes - Core loans grew by $769 million in the fourth quarter, with commercial real estate (CRE) loans up by $276 million and commercial and industrial (C&I) loans up by $474 million [20][22] - Non-interest income increased by $30 million quarter-over-quarter and year-over-year, despite a decline in leasing income [28][29] - The company experienced a decline in non-performing loans (NPLs) and criticized classified loans, indicating improved credit quality [11][28] Market Data and Key Metrics Changes - The company noted that the cost of deposits decreased by 21 basis points to 2.10% at year-end, down from 2.31% at the end of September [10] - The loan-to-deposit ratio finished the quarter at 82.7% [20] - The weighted average loan-to-value (LTV) ratio for the CRE portfolio was 55%, with a debt service coverage ratio of 1.82, indicating strong metrics [22] Company Strategy and Development Direction - The company aims to achieve double-digit growth in net interest-earning assets (NIDDA) and maintain a target CET1 ratio in the mid-11s [12][13] - The strategic focus includes expanding in new markets such as Atlanta, Texas, and North Carolina while maintaining a balanced approach to commercial real estate [75][78] - The company plans to continue share buybacks and increase dividends, reflecting confidence in its financial position [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economy, noting that it remains strong despite geopolitical risks [33][34] - The company anticipates continued growth in NIDDA and deposits, with guidance for loan growth in the 2%-3% range and core loan growth around 6% [15][16] - The management acknowledged potential challenges from tightening spreads and the impact of Fed rate cuts on margins [17][34] Other Important Information - The company authorized an additional $200 million share buyback, complementing the remaining $50 million from a previous authorization [12][13] - Non-interest expenses increased by $6.6 million from the prior quarter, primarily due to a software charge and employee compensation [30] Q&A Session Summary Question: What drove the non-interest-bearing deposit growth in Q4? - Management reported that all business lines contributed to deposit growth, with no outliers, and emphasized the importance of average NIDDA over period-end figures [40][41] Question: What are the beta assumptions for loans and deposits? - The company expects an 80% beta for deposits, with a mix of floating and fixed-rate loans impacting the overall beta [44][45] Question: How does the company plan to balance buybacks with capital levels? - Management indicated a flexible approach to buybacks, taking advantage of market volatility while aiming to maintain capital ratios in line with peers [49][50] Question: What is the outlook for commercial real estate (CRE) growth? - The company has room to grow in CRE, focusing on asset classes other than office and hospitality, and expects mid-single-digit growth in 2026 [62][64] Question: Can you provide details on the fraud incident mentioned? - The fraud involved a contractor in New York, resulting in a complete write-off of a $10 million loan due to lack of collateral [67]

Financial Data and Key Metrics Changes - The company reported earnings of $69.3 million, or $0.90 per share, for the fourth quarter, with an adjusted EPS of $0.94 after accounting for one-time software write-downs [7][25] - The annualized return on assets (ROA) was 78 basis points, adjusted for the software write-down, it was approximately 81 basis points [9] - Net interest margin (NIM) expanded to 3.06%, up from 3% in the previous quarter and 22 basis points year-over-year [8][26] - Total deposits increased by $735 million during the quarter and $1.5 billion for the year [20] Business Line Data and Key Metrics Changes - Core loans grew by $769 million in the fourth quarter, with commercial real estate (CRE) loans up by $276 million and commercial and industrial (C&I) loans up by $474 million [21] - Non-interest income increased by $30 million quarter-over-quarter and year-over-year, despite a decline in leasing income [28] - The company experienced a decline in criticized and classified loans, with non-performing loans (NPLs) down slightly [12][28] Market Data and Key Metrics Changes - The company noted that the cost of deposits decreased by 21 basis points to 2.10% at year-end, down from 2.31% at the end of September [11] - The loan-to-deposit ratio finished the quarter at 82.7% [21] - The commercial real estate portfolio grew by 9%, with a total exposure of $6.8 billion, representing 28% of total loans [23] Company Strategy and Development Direction - The company aims to maintain a balanced growth strategy, focusing on core loan growth of about 6% while managing residential and other loans to shrink by about 8% [18] - The board authorized an additional $200 million share buyback, indicating a commitment to returning capital to shareholders while maintaining a target capital ratio in line with peers [13][14] - The company plans to continue investing in existing markets, particularly in Atlanta, Texas, and North Carolina, while expanding its footprint in Tampa [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, noting that despite geopolitical risks, the economy is performing well [31][32] - The company anticipates two Fed rate cuts in the upcoming year, with a hedged balance sheet to mitigate risks associated with interest rate fluctuations [32] - The guidance for the next year remains consistent with previous expectations, with a focus on maintaining growth in deposits and net interest income [18][30] Other Important Information - The company reported a tangible book value per share of $40.14, reflecting a 10% year-over-year growth [13] - Non-interest expenses increased by $6.6 million from the prior quarter, primarily due to a capitalized software charge and employee compensation expenses [29] Q&A Session Summary Question: What drove the fourth quarter non-interest-bearing deposit growth? - Management noted that every business line contributed to deposit growth, with small business, middle market, and corporate sectors performing well, while the title business saw a seasonal decline [34] Question: Can you walk through the loan and deposit beta assumptions? - The company expects to maintain an 80% beta for deposits, similar to past performance, with floating rate loans being a significant portion of their portfolio [36][41] Question: How do you balance buybacks with capital levels? - Management indicated a flexible approach to buybacks, taking advantage of market volatility while ensuring capital levels remain aligned with peer ratios [39] Question: What is the outlook for commercial real estate growth? - The company plans to grow CRE mid-single digits while maintaining a balanced portfolio across various asset classes [44] Question: Can you provide insights on the recent fraud incident? - A $10 million loan was written off due to fraud, with management indicating that such incidents are hard to predict but overall credit quality remains stable [12][50]

4Q 2025 - Financial Results This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of BankUnited, Inc. ("BankUnited," "BKU" or the "Company") with respect to, among other things, future events and financial performance, dividend payments and stock repurchases. The Company generally identifies forward-looking statements by terminology such as "outlook," "believes," "expects," "potential," "continues," "ma ...

Financial Performance - 4Q 2025 net income was $69.3 million, with diluted EPS of $0.90, reflecting a 6 basis point NIM expansion[1] - Full year 2025 net income reached $268.4 million, a 15% increase from 2024, with EPS of $3.53 compared to $3.08 in 2024[7] - Net income for Q4 2025 was $69.3 million, compared to $71.9 million in Q3 2025 and $69.3 million in Q4 2024[32] - Basic earnings per common share for the three months ended December 31, 2025, was $0.91, down from $0.96 in the previous quarter and $0.92 a year ago[39] - Adjusted net income for the three months ended December 31, 2025, was $72,050,000, reflecting a write-down on capitalized software of $3,770,000[49] Loan and Deposit Growth - Non-interest bearing deposits grew by $485 million in Q4 and $1.5 billion for the year, representing a 20% increase[12] - Total loans increased by $571 million in Q4, with core loans growing by $769 million[12] - Total deposits increased to $29.4 billion as of December 31, 2025, from $28.6 billion as of September 30, 2025[30] - Non-interest bearing demand deposits totaled $8,083,605 thousand, reflecting a stable funding base[36] Interest Income and Margin - Total interest income for Q4 2025 was $442.4 million, down from $452.9 million in Q3 2025 and $468.0 million in Q4 2024[32] - Net interest margin for Q4 was 3.06%, up 0.06% from the prior quarter and 0.22% from 4Q 2024[7] - The interest rate spread for the three months ended December 31, 2025, was 1.95%, compared to 1.86% for the previous quarter[34] - The company reported an interest rate margin of 2.95% for the year ended December 31, 2025, compared to 2.73% in 2024[36] Expenses and Provisions - Non-interest expense for Q4 2025 totaled $172.8 million, an increase of 4.0% from $166.2 million in Q3 2025 and 7.5% from $160.5 million in Q4 2024[22] - For the year ended December 31, 2025, non-interest expense was $663.5 million, up from $642.0 million in 2024, reflecting investments in employee compensation and benefits[22] - Provision for credit losses was $25.6 million for Q4, driven by increased specific reserves related to two C&I loans[17] Equity and Capital - The tangible common equity ratio improved to 8.5%, with tangible book value per share at $40.14, reflecting a 10% year-over-year growth[14] - Total stockholders' equity increased to $3,053,829,000 as of December 31, 2025, from $2,814,318,000 a year ago[49] - Tangible book value per common share was $40.14 as of December 31, 2025, compared to $39.27 in the previous quarter and $36.61 a year ago[41] Interest Rates and Yields - The average cost of deposits declined by 0.20% to 2.18%, with spot APY falling to 2.10% from 2.31% in the prior quarter[12] - The average rate paid on interest-bearing deposits decreased to 3.15% in Q4 2025 from 3.40% in Q3 2025, influenced by a lower Federal funds rate[23] - The tax-equivalent yield on loans decreased to 5.37% in Q4 2025 from 5.53% in Q3 2025, reflecting declining market rates[23] Asset and Liability Management - Total assets as of December 31, 2025, were $35.0 billion, slightly down from $35.1 billion as of September 30, 2025[26] - Total liabilities reached $32,091,072 thousand, with interest-bearing liabilities at $22,460,094 thousand and a total stockholders' equity of $3,094,687 thousand[34] - Loans averaged $23,697,215 thousand with an interest yield of 5.37%, while investment securities averaged $9,583,958 thousand with a yield of 4.93%[34] Performance Ratios - Return on average assets for the three months ended December 31, 2025, was 0.78%, consistent with the previous quarter and up from 0.66% a year ago[41] - Return on average stockholders' equity for the three months ended December 31, 2025, was 8.9%, down from 9.5% in the previous quarter and up from 8.5% a year ago[41] - Non-performing loans to total loans ratio was 1.54% as of December 31, 2025, down from 1.60% in the previous quarter and up from 1.03% a year ago[41]

MIAMI LAKES, Fla.--(BUSINESS WIRE)--BankUnited, Inc. (the "Company†) (NYSE: BKU) today announced financial results for the quarter and year ended December 31, 2025. "We are pleased to report strong fourth quarter earnings, concluding an outstanding year for BankUnited. We continue to execute our organic growth strategy which has resulted in strong performance in NIM, ROA, ROE and EPS. In recognition of this strong performance, we are announcing an additional stock buyback authorization of $200. ...

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Core Insights - BankUnited, Inc. (NYSE:BKU) is recognized as one of the best dividend stocks to invest in for January [1] - Wells Fargo has raised its price target for BankUnited to $50 from $42, maintaining an Overweight rating, anticipating a recovery in earnings by 2026 [2] - The company reported a net income of $71.9 million, or $0.95 per share, with a net interest margin increase to 3.00% from 2.93% in the previous quarter [3] Financial Performance - For the first nine months of the year, BankUnited's earnings reached $199.1 million, reflecting a 22% year-over-year increase [3] - The bank's deposits remained largely flat, while funding costs decreased [3] - The tangible book value increased by 8% year-over-year to $39.27 per share, with a CET1 ratio of 12.5% at the end of the quarter, indicating strong capital strength [4] Business Model and Market Position - BankUnited operates as a regional banking institution with a significant presence in Florida and the New York metropolitan area [5] - The company focuses on a diversified loan portfolio and a solid deposit base to support stable earnings and maintain competitiveness among regional peers [5]

Company Overview - BankUnited is a regional banking institution with a significant presence in Florida and the New York metropolitan area, focusing on commercial banking and technology-enabled services to drive stable earnings and maintain a competitive position among regional banks [5][8] - The bank offers a comprehensive suite of deposit products, commercial and consumer loans, and treasury management services, primarily serving commercial businesses, small and medium-sized enterprises, and individual consumers [8] Financial Performance - For the latest quarter, BankUnited reported a net income of $71.9 million, or $0.95 per share, with a net interest margin of 3.00%, up from 2.93% in the prior quarter [6] - Year-to-date earnings reached $199.1 million, reflecting a 22% increase year over year, despite flat deposits and easing funding costs [6] - The bank's revenue for the trailing twelve months (TTM) is $1.07 billion, with a net income of $268.40 million and a dividend yield of 3% [4] Investment Activity - HoldCo Asset Management disclosed a new stake in BankUnited, purchasing 936,900 shares valued at approximately $35.75 million, which represents 3.77% of its $947.56 million in reportable U.S. equity assets [2][3] - As of the latest filing, BankUnited shares were priced at $44.57, reflecting a 17% increase over the past year, slightly outperforming the S&P 500's 16% gain during the same period [3] Capital Strength - BankUnited ended the quarter with a Common Equity Tier 1 (CET1) ratio of 12.5%, and its tangible book value increased by 8% year over year to $39.27 per share, indicating strong capital strength [9]