BankUnited(US:BKU)2025-11-05 21:32Financial Performance - Net income for Q3 2025 was $71.9 million, or $0.95 per diluted share, up from $68.8 million or $0.91 per diluted share in Q2 2025, and $61.5 million or $0.81 per diluted share in Q3 2024[131] - The annualized return on average stockholders' equity was 9.5% for Q3 2025, compared to 9.4% in Q2 2025 and 8.8% in Q3 2024[131] - Net interest income for the three months ended September 30, 2025, was $253.7 million, an increase of $4.2 million from $249.5 million in the previous quarter[138] - For the nine months ended September 30, 2025, net interest income was $739.8 million, an increase of $52.9 million compared to $686.9 million for the same period in 2024[141] - Total non-interest income increased to $25,566 thousand for the three months ended September 30, 2025, compared to $22,888 thousand in 2024, and $75,646 thousand for the nine months ended September 30, 2025, compared to $73,950 thousand in 2024[148] - Total non-interest expense rose to $166,169 thousand for the three months ended September 30, 2025, from $164,582 thousand in 2024, and $490,722 thousand for the nine months ended September 30, 2025, compared to $481,528 thousand in 2024[150] Asset and Deposit Management - Total deposits declined by $28 million quarter-over-quarter, with non-brokered deposits increasing by $1.2 billion year-over-year[133] - Total assets as of September 30, 2025, were $35.02 billion, with stockholders' equity at $2.95 billion[137] - Total deposits amounted to approximately $6.8 billion as of September 30, 2025, with 69% being commercial or municipal deposits[256] - Brokered deposits decreased from $5.2 billion at December 31, 2024, to $4.5 billion at September 30, 2025[257] Loan Portfolio and Credit Quality - Total loans declined by $595 million for the nine months ended September 30, 2025, with residential loans decreasing to 30.1% of total loans from 31.2% at December 31, 2024[154] - The total loan portfolio amounted to $23.70 billion, a decrease from $24.30 billion at December 31, 2024[166] - The allowance for credit losses was $227.7 million as of September 30, 2025[137] - The net charge-off rate was 0.26% for the nine months ended September 30, 2025, slightly up from 0.16% for the same period in the previous year[222] - Non-performing loans amounted to $379,414,000, an increase from $250,114,000 on December 31, 2024[222] - The commercial real estate (CRE) segment reported a total of $733,615,000 in amortized cost, with a notable increase in hotel loans classified as substandard accruing, rising to $65,037,000 (13.5%) from $20,442,000 (4.2%) in the previous year[222] Interest Rates and Margins - The net interest margin expanded to 3.00% for Q3 2025, up from 2.93% in Q2 2025 and 2.78% in Q3 2024[131] - The average cost of total deposits decreased to 2.38% for Q3 2025 from 2.47% in Q2 2025, while the spot APY of total deposits was 2.31% at the end of Q3 2025[133] - The interest rate spread for the three months ended September 30, 2025, was 1.86%, compared to 1.81% in the previous quarter[138] Capital and Liquidity - The total risk-based capital ratio for BankUnited, Inc. was 14.38%, significantly above the required minimum of 10.00%[276] - The CET1 risk-based capital ratio was 12.53%, exceeding the required minimum of 6.50%[276] - The liquidity stress test coverage ratio was 2.36x, exceeding the minimum requirement of 1.50x[273] - The one-year liquidity ratio was 3.27x, well above the minimum requirement of 1.00x[273] Regulatory and Legal Matters - There were no changes in the Company's internal control over financial reporting that materially affected the financial reporting during the quarter ended September 30, 2025[291] - The Company is involved in various legal actions, but management believes the likelihood of any adverse impact on financial position is remote[292]