BankUnited(US:BKU)2025-10-22 10:46Financial Performance - For Q3 2025, BankUnited reported net income of $71.9 million, or $0.95 per diluted share, representing a 4.5% increase in EPS from the previous quarter and a 17.5% increase year-over-year[3]. - Net income for the quarter ended September 30, 2025, was $71.9 million, an increase from $68.8 million in the previous quarter[23]. - Net income for the three months ended September 30, 2025, was $71.851 million, an increase from $68.766 million in the previous quarter and $61.452 million in the same quarter last year, representing a year-over-year growth of 16.9%[30]. - Basic earnings per common share for the three months ended September 30, 2025, was $0.96, up from $0.91 in the previous quarter and $0.82 in the same quarter last year, reflecting a year-over-year increase of 17.1%[30]. - The diluted earnings per common share for the three months ended September 30, 2025, was $0.95, compared to $0.91 in the previous quarter and $0.81 a year ago, marking a year-over-year increase of 17.3%[30]. Loan and Deposit Trends - Total loans decreased by $231 million in Q3 2025, with residential loans declining by $173 million, while the core commercial portfolio segments and mortgage warehouse grew by a combined $14 million[4]. - Non-interest bearing demand deposits declined by $488 million for the quarter, representing 30% of total deposits, but increased by $990 million compared to the same period last year[4]. - The loan to deposit ratio was 82.8% at September 30, 2025, compared to 83.6% at June 30, 2025[4]. - The company reported a loans to deposits ratio of 82.8% as of September 30, 2025, down from 83.6% in the previous quarter and 87.6% a year ago[32]. Interest Income and Margins - The net interest margin expanded by 0.07% to 3.00% for Q3 2025, with net interest income growing by $4.0 million quarter-over-quarter and by $16.0 million or 7% year-over-year[4]. - Net interest income before provision for credit losses increased to $250.1 million for the quarter ended September 30, 2025, compared to $246.1 million in the previous quarter[23]. - The yield on interest-earning assets remained flat at 5.38% quarter-over-quarter[17]. - The average yield on loans was 5.53% for the three months ended September 30, 2025, compared to 5.87% for the same period in 2024[25]. - Net interest margin improved to 3.00% for the three months ended September 30, 2025, up from 2.78% in the same period of 2024[25]. - The interest rate spread for the three months ended September 30, 2025, was 1.86%, compared to 1.55% in the same period of 2024[25]. Credit Quality - The annualized net charge-off ratio for the nine months ended September 30, 2025, was 0.26%, with total criticized and classified loans declining by $3 million[4]. - The ratio of the allowance for credit losses (ACL) to total loans was 0.93% at September 30, 2025, consistent with the prior quarter, while the ACL to non-performing loans ratio was 57.95%[8]. - The provision for credit losses was $11.6 million for Q3 2025, down from $15.7 million in the previous quarter, influenced by an improvement in the economic forecast[10]. - Non-performing loans to total loans ratio was 1.60% as of September 30, 2025, slightly up from 1.57% in the previous quarter and significantly higher than 1.03% a year ago[32]. Capital and Assets - BankUnited's capital position remains strong, with a CET1 ratio of 12.5% at a consolidated level as of September 30, 2025[7]. - Total assets of BankUnited, Inc. were $35.1 billion as of September 30, 2025[15]. - Total assets decreased slightly to $34,893,623 as of September 30, 2025, from $35,406,476 a year earlier[25]. - Total liabilities were $32.0 billion as of September 30, 2025, down from $32.5 billion in the previous quarter[21]. - Stockholders' equity increased to $3,015,090 as of September 30, 2025, compared to $2,777,824 in the same period of 2024[25]. - Total risk-based capital ratio was 14.4% as of September 30, 2025, compared to 14.1% in the previous quarter and 14.3% a year ago[36].